Hydracaí Vodka Market Segmentation Prepared By: Brittany Alexanderson Ashley Campise Lorena Guerrero Espinoza Sharon Hawley Tayna LaPierre Prepared For: Professor Ceresino MKTG 433 February 19, 2011 Identifying Markets While employing a target marketing strategy, it was important for our company to identify the specific relevant market segments to focus on as well as the firms whom are competing in these segments. Our company has identified two market segments whom which have a demand for our product. From this point on we will identify these segments as the Vodkaistas and the Cocktailistas. Vodkaistas This segment targets a portion of Generation Y, ranging in age from 21 - 26. We would focus on both males and females who make $25,000 - $40,000 annually. The Vodkaistas would currently be attending college with a part-time job or have a college degree with a full-time job. Personality wise these individuals are fun, energetic and ready to party. These users would be high users of our product. Competition Smirnoff Vodka Skyy Vodka Absolut Vodka Three Olives Vodka Cocktailistas The Cocktailistas would be baby boomers ranging in age from 45 – 65. We are focusing on both males and females who have a full-time job with a steady income of $60,000 or greater. 2 These users are moderate to high users of our product. In regards to personality, the Cocktailistas are relaxed, easy going and like to have a good time. Competition: Grey Goose Vodka Ketel One Vodka Belvedere Vodka Stolichnaya Vodka Market Segmentation For our market segmentation approach, we will need to look at combination of approaches. Demographic Segmentation Currently our target markets are based on two age groups. Age and life stage are vital in segmenting and understanding our market. We may even want to consider gender because currently the female population is under represented in the vodka market of advertising. Psychographic Segmentation At the core, if individuals do not socialize and consume vodka while they do, they are not our target market. We are looking for individuals with lifestyles that will correspond to our product. It is important to target the market that will actually go out or stay home with friends and drink our vodka. We don’t want to target the people that currently are homebodies and never drink. 3 Behavioristic Segmentation Dividing segments up by usage and loyalties is very beneficial for our product. We want consumers that drink moderately to heavy and are purchasers of vodka. Current purchasers of vodka hold greater potential for adoption of our product then non-vodka drinkers. Benefit Segmentation Grouping consumers on a basis of attributes being sought in a product can also be useful. Our product has multiple benefits and it is a good idea to know what consumers in each segment are looking for. Some consumers will be looking for health benefits, some the taste, and some the experience that happens while drinking Hydracaí Vodka. It is good to understand which groups want as far as benefits so that it is easier to target them in marketing ads. Target Market Selecting our specific target markets will allow our team to narrow down our target audience since this product may not be for everyone. The strategy that will be used in order to accomplish this will be concentrated marketing. Concentrated marketing focuses on one segment and makes the product exclusive to them in order to offer the most customized product to a particular group’s desires. With this strategy, we can market the vodka to a large audience and attempt to capture their interest based on certain values they may have in common. Some factors that are considered for choosing our segments are sales opportunities, possibilities for growth, the competition, and capacity to compete. We choose to use the concentrated marketing on the consumers we targeted in our behavioristic segmentation. We want consumers that drink moderately to heavy and are purchasers of vodka. 4 Like was said before, current purchaser of vodka hold greater potential for adoption of our product then non-vodka drinkers. Hydracaí vodka is a beverage that is enjoyed by people who are 21 and over and who lead a fun, health-conscious lifestyle. There would be great sales opportunities to people who already consume vodka; these could be at supermarkets, bars, restaurants and more. There is always possibility for growth in this segment, because people, who don’t like vodka because of the hangovers, might choose to drink our vodka because it is different. There is a lot of competition for this group, however we have the means to compete because our product is more then just the plain old vodka. Vodka proves to be a promising product in the alcohol industry today, which creates positive capacity to compete. Recent statistics in the market show that vodka, especially high end, has a hopeful outlook as far as increasing sales. “The economic data report, based on figures from 2010, shows vodka, which accounts for 31% of industry volume, up 6.1% to 59 million 9-litre cases. The super-premium category was up nearly 18% and revenue was up approximately 14%.” (Drinks International, 2011) Positioning Strategy In today’s global market, vodka buyers are bombarded with advertising efforts to influence their choices. Consumers have many options from choosing lucrative brands to inexpensive brands of vodka. Currently there are several hundred different choices of flavored, non-flavored, domestic, imported, and premium vodkas out in the marketplace, which makes it difficult for consumers to choose their brand of choice. Therefore, the need to differentiate Hydracaí’s image becomes vital to the survival of our brand. 5 Hydracaí’s positioning strategy will focus on our main segment, consumers who drink vodka moderately to heavy and are purchasers of vodka. Our position strategy will focus on the consumer. Our market positioning will be aimed at creating brand awareness and brand loyalty, and encouragement of repeat purchasing. We will use several positioning strategies combined to position our product the best way possible. Positioning by Attributes and Benefits We want to create a favorable brand image to our consumers. We have many important attributes that need to be known by consumers. These include, health benefits, and hydrating benefits. We can set our product apart from competitors by emphasizing this attributes. We want our customer to think and correlate Hydracaí with our positive attributes. Positioning by Price/Quality Hydracaí is a high quality product at an affordable price. We need to emphasis this to our consumers, so they know what they will actually be getting. The economy is still in recession so customers want more for the price. The image that we will create in the customers mind is high quality with competitive pricing. Positioning by Product User Since we are targeting vodka users, it is essential that we position our product by associating it with vodka drinkers. Vodka drinkers are a large group of users, but they differ from beer drinkers. We need to make sure this is positioned emphasizing identification with the group of exclusive vodka drinkers. 6 Works Cited Drinks International. ‘High-End Vodka Sees US Volumes Increase’. 2011. WEB. <http://www.drinksint.com/files/Supplements/2011/DI-Vodka-supplement-2011.pdf>. 7