MGT252
Intro to
Marketing
Layna Ai
Ora Chen
Ashwin Kapadiya
Gavin McMurray
Sarah Polan
Kavita Valarmathi
Executive Summary
Who are we?
What is our product?
Why this product?
PEST Analysis
Political

Regulations for alcohol sales in Ontario

Manufacturer’s license

Government monopoly on alcohol sales

Advertising in Ontario

Manufacturing alcohol in Ontario
PEST Analysis (cont'd)
Economic


Smirnoff’s (Diageo’s) shares have increased over the past
few years, and continue to show an upward trend
The overall market has rebounded, indicating that
PEST Analysis (cont'd)
Social


People are drinking more and more socially, with
continuous increase in alcohol sales
The club-goers are always trying to follow the latest trends,
and because of this they will be attracted to a new and
differentiated product
PEST Analysis (cont'd)
Technological


Mainly to do with the production of vodka
Production has remained the same for many hundreds of
years
SWOT Analysis
Strengths
Fact that we’re a brand new company means we have an
easier time positioning ourselves as a differentiated product
Weaknesses
Since we are a new company, we have a lack of experience in
the manufacturing of our product
SWOT Analysis (cont'd)
Opportunities


The market expansion in vodka sales is an excellent
opportunity to enter the market and be successful
Being able to sell through the LCBO means that we will
always have the best possible venue for sales
Threats
Since we are a new company, we have a lack of experience in
the manufacturing of our product
Customer Analysis
Our target market segment is any individuals 19-30
years of age

This segment consumes the largest amount of
alcohol, and tend to go to clubs, bars, lounges, etc.

Targeting people who are willing to pay slightly
more for better quality beverage, i.e. who have
more spending money

Competitor Analysis
Main competitors; Smirnoff, Absolut, SKYY
and Grey Goose

All of these companies have developed
products with infused flavours

This is because consumers are increasingly
interested in a wider variety of flavours

Company/Market Analysis
“To become the number one seller of
infused vodka in the next 10 years”

`
We are a new company and will require a
large initial investment in marketing
expenditures to reach our target consumer


Market trends show that tastes for
Brand Positioning

Brand name: Iced Vea
Provide customers with high quality beverage that
will suit any occasion

Build brand image on memorable get-togethers
and all around good times

Brand development into other product lines

Product & Price
Trademark “Cube” eye-catching 750mL
bottle


Minimum price for LCBO sales is $24.95
In order to show that our product is
premium, set the price slightly higher at $30.95

This shows high quality, and yet remains
affordable

Promotion & Place

Promotion to consumers as well as business



Use of sales people to speak with business
managers
Magazine, television and billboard
advertisements
Distribution through the LCBO

Required for every alcoholic beverage in Ontario
Timetable
Nov 2010 – Submit product to LCBO for
approval


April 2011 – Begin marketing campaign

June 2011 – Product available for sale
December 2011 – Evaluate sales and
marketing efficiency for the year

June 2012 – Prepare new marketing
campaign, “party” promotions, etc.

Evaluations
Success to be gauged in two key areas:

1. Product Awareness




Survey (33% Toronto, GTA; 18% Ontario)
Interview Managers/Staff from LCBO and corporate
buyers
Expect positive feedback
2. Sales


Obtain sales figures from LCBO and licensed
establishments
6 mo. Goal: $400,000 retail, $350,000 licensed
establishments
Financials
Assets
Distillery
Equipment
Liscensing
Inventory
Liabilities
Bank Loan
Expenses
Labour wages (@ $15/hr)
Marketing expenses
Selling and administrative expenses
Revenues
Sales revenues
$1 000 000
$4 000 000
$100 000
$500 000
$6 000 000
$700 000
$200 000
$1 000 000
$1 000 000
As we can see from our overview of our financial report, we will need to take a
significant bank loan as a start up company in order to cover some of our initial costs. The
bulk of these consist of the distillery and the equipment needed for it. Our marketing
expenses are set at $1 000 000 because we intend to do a lot of marketing initially in order to
penetrate the market. However, given our current financial status we could not provide
more resources than that. We are hoping that the marketing will pay for itself at the end of
one year and provide us with approximately $1 000 000 in revenues, at which point we may
begin to host our promotion “parties” in order to ensure share of voice in our market
segment.