US Drinks Conference 2010
Allocating Marketing Budgets
Brought to you by:
What Brands Need to Bring to Market
• Product:
•Good Tasting Product
•Unique, Attractive Package
•Product Point Of Differentiation
•Path:
•Organization (Your Own or Importer/Supplier) to Manage Business
•Distributors Who Stock and Distribute Product
•Retailers (On & Off-Premise) Who Introduce Your Product to Your
Target Consumers
•Promotion:
•Sales and Education Materials
•In-Store/Bar Merchandising – POS Support
•Advertising/Public Relations/Programs
• Price:
•Must Fit Positioning
U.S. Drinks Conference 2010
2
Allocating Budgets - A Question of:
Must do…
Should do…
Could do…
U.S. Drinks Conference 2010
3
You Must
U.S. Drinks Conference 2010
4
You Must
• Get the Product into a distributor. Who is
looking for:
– What are you going to do to move it out of our
house so I can make money
• Get Retailers. Who are looking for:
– What are you going to do to move it out of our
bar/store so I can make money
• Get Consumers. Who are looking for:
– A product (like yours) that fits my needs
U.S. Drinks Conference 2010
5
You Must
• Sell Your Product and Educate Trade and
Consumers on Why Your Brand
– Provide sales tools to your sales teams
(internal and external)
• Sales literature, sampling kits, fact cards, etc
– Education material –
– What is this product? Why should I sell/consume it?
» Product description, tasting notes, pairings, point of
differences, etc
U.S. Drinks Conference 2010
6
You Must
• Create Consumer Demand at Point of
Purchase and Outside POP
• At POP
– Off-Premise – bottle necker, shelf talkers, display
materials…
– On-Premise – fact cards, table tents, unique point of sale
that brings your
– Both - Sampling, promotion, events..
• Outside: bring your brand to life…
–
–
–
–
Advertising
Public Relations
Social Media
Your budget will dictate which way you go
U.S. Drinks Conference 2010
7
You Should
U.S. Drinks Conference 2010
8
You Should
• Market your brand to the Trade:
– Retailers
– Bar Owners
– Bartenders
– Staff
– Etc
• Why you may ask?
U.S. Drinks Conference 2010
9
FUNNEL
U.S. Drinks Conference 2010
10
FUNNEL
U.S. Drinks Conference 2010
11
How To Market To The Trade
• The Top Way Trade Gets Information is:
– Trade Publications Editorial
– Distributors
Reversed for Off vs. On
– Suppliers
– Trade Publication Advertising
– On-Line
– E-Newsletters
• Working with Trade Publications is effective:
– Trade PR is effective and lower cost
– On-Line growing and where they say they want to get info
– Trade Advertising effective in getting your exact message
to the trade
U.S. Drinks Conference 2010
12
You Should
• Promote your brand to your target consumer
• Social Media Marketing
• Blogs specifically set up for Beer, Wine, or Spirits that can reach
large numbers of Passionate beverage alcohol consumers
• Sites & Forums that reach large sums of consumers who are
interested in Beer, Wine, Spirits
• FaceBook – Best place, least expensive way to engage your
consumers
• Other
• Media Outreach – traditional & on-line
• Targeted to your audience as much as possible
• Also key in on lifestyles that match your target consumers
U.S. Drinks Conference 2010
13
Shifting Marketing $$ to Online/SMM
Adding
Reducing
Marketing
Sherpa 2009
14
You Could
U.S. Drinks Conference 2010
You Could
• Advertise:
• On-Line allows you to target consumers and lower cost
• Traditional more expensive and less targeted
• Events
• Facilitates sampling
• Tie in with Celebrities
• At events
• Though Sponsorships
• Conduct Partnership programs
• Tie-in with complimentary products, programs, etc
• Value Added packs
U.S. Drinks Conference 2010
16
Reference Media Spend: Spirits
Measured Media Spend 2009: Spirits ($000's)
Mag.
Newsp.
Outdoor
B'cast
Total
Vodka
Absolut
Grey Goose
Svedka
Ultimat
Tito's
Georgi vodka
$12,342
$10,211
$7,609
$3,314
$2,406
$0
$315
$358
$189
$0
$152
$0
$1,103
$0
$1,663
$490
$0
$148
$4,073
$3,605
$0
$21
$20
$0
$17,833
$14,174
$9,461
$3,825
$2,578
$148
Jack Daniel's
Jameson
The Glenlivet
$4,004
$3,283
$3,913
$35
$5
$864
$1,235
$198
$0
$9,186
$6,235
$49
$14,460
$9,721
$4,826
Red Stag by Jim Beam
Rum
Captain Morgan
Gosling
Sailor Jerry
Gin
New Amsterdam
Bombay Sapphire
Bulldog
$316
$0
$0
$1,148
$1,464
$187
$1,221
$0
$16
$0
$0
$600
$0
$225
$18,795
$0
$198
$19,598
$1,221
$423
$2,196
$1,958
$44
$0
$0
$0
$0
$0
$0
$175
$203
$0
$2,371
$2,161
$44
Whiskies
The B.I.G. 2010 Liquor Handbook
U.S. Drinks Conference 2010
17
Reference Media Spend: Spirits
Measured Media Spend 2009: Spirits ($000's)
Mag.
Newsp.
Outdoor
B'cast
Total
Vodka
Absolut
Grey Goose
Svedka
Ultimat
Tito's
Georgi vodka
$12,342
$10,211
$7,609
$3,314
$2,406
$0
$315
$358
$189
$0
$152
$0
$1,103
$0
$1,663
$490
$0
$148
$4,073
$3,605
$0
$21
$20
$0
$17,833
$14,174
$9,461
$3,825
$2,578
$148
Jack Daniel's
Jameson
The Glenlivet
$4,004
$3,283
$3,913
$35
$5
$864
$1,235
$198
$0
$9,186
$6,235
$49
$14,460
$9,721
$4,826
Red Stag by Jim Beam
Rum
Captain Morgan
Gosling
Sailor Jerry
Gin
New Amsterdam
Bombay Sapphire
Bulldog
$316
$0
$0
$1,148
$1,464
$187
$1,221
$0
$16
$0
$0
$600
$0
$225
$18,795
$0
$198
$19,598
$1,221
$423
$2,196
$1,958
$44
$0
$0
$0
$0
$0
$0
$175
$203
$0
$2,371
$2,161
$44
Whiskies
The B.I.G. 2010 Liquor Handbook
U.S. Drinks Conference 2010
18
Reference Media Spend: Beer
Measured Media Spend 2009: Beer ($ 000's)
Print
Corona Extra
Broadcast
Total
$9,556
$35,083
$44,639
Heineken
$10,262
$28,741
$39,003
Dos Equis
$204
$22,040
$22,244
$10,940
$6,065
$17,005
$86
$16,328
$16,414
Guinness
$330
$7,334
$7,664
Beck's
$997
$2,539
$3,536
St Pauli Girl
$725
$0
$725
$0
$0
$0
Stella Artois
Sam Adams Boston Lager
Grolsch
The B.I.G. 2010 Beer Handbook
U.S. Drinks Conference 2010
19
Reference Media Spend: Beer
Measured Media Spend 2009: Beer ($ 000's)
Corona Extra
Heineken
Dos Equis
Stella Artois
Sam Adams Boston Lager
Guinness
Beck's
St Pauli Girl
Grolsch
Print
$9,556
$10,262
$204
$10,940
$86
$330
$997
$725
$0
Broadcast
$35,083
$28,741
$22,040
$6,065
$16,328
$7,334
$2,539
$0
$0
Total
$44,639
$39,003
$22,244
$17,005
$16,414
$7,664
$3,536
$725
$0
The B.I.G. 2010 Beer Handbook
U.S. Drinks Conference 2010
20
Pro Forma Budget Allocation
Just a starting point
U.S. Drinks Conference 2010
21
Pro Forma Budget Allocation: Spirit
$1 MM Budget
$5 MM Budget
$10MM Budget
$000's
%
$000's
%
$000's
%
$10
$5
$75
1%
1%
8%
$125
$100
$1,000
3%
2%
20%
$375
$400
$3,000
4%
4%
30%
$105
$195
11%
20%
$1,300
$2,525
26%
51%
$2,500
$6,275
25%
63%
$110
11%
$725
15%
$1,000
10%
$260
26%
$700
14%
$1,700
17%
$100
$125
$60
10%
13%
6%
$400
$300
$100
8%
6%
2%
$500
$400
$125
5%
4%
1%
$150
$1,000
15%
100%
$250
$5,000
5%
100%
$400
$10,000
4%
100%
Advertising
Creative
Production
Offline Media
Online Media (Display and Paid
Search)
Subtotal advertising
Consumer Merchandising and
Promotions (Flow/ POS,
Promotions, Merchandising)
Support of Field
Mktg/Sales/Distr. (Brand
Ambassadors, Menu pgms, bar
parties, tastings, incentives, sales
literature)
Traditional Public Relations
and Events
Trade Marketing
Website
Interactive/Social Media
Marketing
TOTAL
BAT Analysis
U.S. Drinks Conference 2010
22
Pro Forma Budget Allocation: Spirit
$1 MM Budget
$5 MM Budget
$10MM Budget
$000's
%
$000's
%
$000's
%
$10
$5
$75
1%
1%
8%
$125
$100
$1,000
3%
2%
20%
$375
$400
$3,000
4%
4%
30%
$105
$195
11%
20%
$1,300
$2,525
26%
51%
$2,500
$6,275
25%
63%
Advertising
Creative
Production
Offline Media
Online Media (Display and Paid
Search)
Subtotal advertising
Consumer Merchandising and
Promotions (Flow/ POS,
Promotions, Merchandising)
Support of Field
Mktg/Sales/Distr. (Brand
Ambassadors, Menu pgms, bar
parties, tastings, incentives, sales
literature)
Traditional Public Relations
and Events
Trade Marketing
Website
Interactive/Social Media
Marketing
TOTAL
$110
11%
$260
26%
$100
$125
$60
10%
13%
6%
$150
$1,000
15%
100%
Priorities
Put Your Money On the
$725
15%
$1,000
10%
Street
Get the Trade Involved
$700
14%
$1,700
17%
$250
$5,000
5%
100%
$400
$10,000
4%
100%
Stimulate measurable
$400
8%
$500
5%
actions
who
$300
6% by people
$400
4%
$100
2%
$125
1%
“raise their hand”
BAT Analysis
U.S. Drinks Conference 2010
23
Pro Forma Budget Allocation: Wine
$100,000
Budget
$200,000
Budget
$600,000
Budget
$000's
%
$000's
%
$000's
%
$0
$0
$0
$0
$0
0%
0%
0%
0%
0%
$3
$2
$0
$15
$20
2%
1%
0%
8%
10%
$10
$20
$60
$130
$220
2%
3%
10%
22%
37%
$5
5%
$10
5%
$40
7%
$10
$15
$15
$10
10%
15%
15%
10%
$20
$40
$25
$15
10%
20%
13%
8%
$40
$60
$40
$30
7%
10%
7%
5%
$45
$100
45%
100%
$70
$200
35%
100%
$170
$600
28%
100%
Advertising
Creative
Production
Offline Media
Online Media (Paid Search)
Subtotal advertising
Consumer Merchandising and
Promotions (Flow/Prom.
Pgms/POS)
Support of Field Mktg/Sales/Distr.
(Menu pgms, bar parties, tastings,
incentives)
Public Relations/Events
Trade Marketing
Website
Interactive, Social Media
Marketing, Ecommerce support
TOTAL
BAT Analysis
U.S. Drinks Conference 2010
24
Pro Forma Budget Allocation: Wine
$100,000
Budget
$200,000
Budget
$000's
%
$000's
%
$0
$0
$0
$0
$0
0%
0%
0%
0%
0%
$3
$2
$0
$15
$20
2%
1%
0%
8%
10%
$5
5%
$10
5%
$10
$15
$15
$10
10%
15%
15%
10%
$20
$40
$25
$15
10%
20%
13%
8%
$45
$100
45%
100%
$70
$200
35%
100%
Advertising
Creative
Production
Offline Media
Online Media (Paid Search)
Subtotal advertising
Consumer Merchandising and
Promotions (Flow/Prom.
Pgms/POS)
Support of Field Mktg/Sales/Distr.
(Menu pgms, bar parties, tastings,
incentives)
Public Relations/Events
Trade Marketing
Website
Interactive, Social Media
Marketing, Ecommerce support
TOTAL
BAT Analysis
U.S. Drinks Conference 2010
$600,000
Put Your
Budget
Money
On
$000's
%
the
Street
$10
2%
$20
3%
Get
the
$60
10%
$130
22%
Trade
$220
37%
Involved
$40
7%
Stimulate
measurable
$40
7%
$60
10%
actions
by
$40
7%
$30
5%
people
who
$170
28%
“raise
their
$600
100%
hand”
25
Pro Forma Budget Allocation: Beer
$500,000
Budget
$1,000,000
Budget
$2.500,000
Budget
$000's
%
$000's
%
$000's
%
$0
$0
$0
$25
$25
0%
0%
0%
6%
6%
$15
$0
$0
$175
$190
2%
0%
0%
18%
19%
$30
$20
$800
$450
$1,300
1%
1%
32%
18%
52%
$100
25%
$120
12%
$250
10%
$100
$25
$75
$30
25%
6%
19%
7%
$225
$200
$100
$65
23%
20%
10%
7%
$250
$290
$150
$60
10%
12%
6%
2%
$50
$405
12%
100%
$100
$1,000
10%
100%
$200
$2,500
8%
100%
Advertising
Creative
Production
Offline Media
Online Media
Subtotal advertising
Consumer Merchandising and
Promotions (Flow/Prom. Pgms/POS)
Support of Field Mktg/Sales/Distr.
(Menu pgms, bar parties, tastings,
incentives)
Public Relations/Events
Trade Marketing
Website
Interactive and Social Media
Marketing
TOTAL
BAT Analysis
U.S. Drinks Conference 2010
26
Pro Forma Budget Allocation: Beer
$500,000
Budget
$1,000,000
Budget
$2.500,000
Budget
$000's
%
$000's
%
$000's
%
$0
$0
$0
$25
$25
0%
0%
0%
6%
6%
$15
$0
$0
$175
$190
2%
0%
0%
18%
19%
$30
$20
$800
$450
$1,300
1%
1%
32%
18%
52%
$250
10%
$250
$290
$150
$60
10%
12%
6%
2%
$200
$2,500
8%
100%
Advertising
Creative
Production
Offline Media
Online Media
Subtotal advertising
Consumer Merchandising and
Promotions (Flow/Prom. Pgms/POS)
Support of Field Mktg/Sales/Distr.
(Menu pgms, bar parties, tastings,
incentives)
Public Relations/Events
Trade Marketing
Website
Interactive and Social Media
Marketing
TOTAL
U.S. Drinks Conference 2010
Put Your Money On
the Street
$100
$120
12%
Get25%the Trade
Involved
$100
25%
$225
23%
$25
6%
$200
20%
Stimulate
measurable
$75
19%
$100
10%
$30
7%
$65
7%
actions
by people
who
$50
12% their $100
“raise
hand”10%
$405
100%
$1,000
100%
27
Conclusions
• You need to think about:
– What are your short and long-term goals
– What type of product are you launching:
• Value brand vs. premium brand
– How much money can you invest
– Do you need to be national? – You can go
regional or in a state or two
• You have to determine what you must,
should and could do
U.S. Drinks Conference 2010
28
Thank You!
Jeff Grindrod, Managing Partner
1 Darling Dr.
Avon, CT 06001
USA
860-676-7900
JeffGrindrod@comcast.net
U.S. Drinks Conference 2010