D2C12 Devising Marketing Strategy Flashcards
You have identified the product/brand to be marketed;
you have identified the target market
and you have set objectives of the marketing strategy.
What do you need to do next?
Now you need to devise the strategy to achieve the objectives.
- This is often called the marketing mix
- All elements of this must work together for the strategy to to be successful
- 5Ps: product, price, people, place, promotions
What is the product in the context of marketing mix
The product being marketed, (packaging, branding, value-add features)
- Communicate the characteristics that will appeal and satisfy according to the segment
- Describe the experience
- Explain why this prod is different to others in the mkt (quality, value, features like “organic” or “natural”; “fairtrade”)
- this is very NB if the market is saturated
What is price in the context of marketing mix
- The amount which a consumer pays for a product (includes full cost of prod, as well as additional for delivery and customers own cost to obtain it)
- in an ideal world price is a balance between reasonable producer profit and what the customer is prepared to pay.
- Price will be affected by costs in the supply chain. Chapter 2
List some pricing strategies
- Enter low (undercut comp) to entice customers, with plan to increase price later - high risk approach as customer may switch instead of accepting new price.
- Enter with high price - studies show consumers enjoy a wine they believe is expensive and will spend money in the expectation of better quality.
- Consumer with low wine knowledge buying for someone with more knowledge are likely to buy more expensive bottle
- Certain price points have psychological importance 9.99 - producers can use this so retailers can hit desired price point
What does people mean in the context of marketing mix
This refers more to the people internal to the producer and addresses topics like
- are they sufficiently trained, knowledgeable to sell
- do the distributors and PR agencies share the producers image and vision
- is the message consistent at all stages of the supply chain
- does the producer need to support the dist/retailer to highlight the brand image/story and showcase the products
What is place in the context of marketing mix
Consider the maturity of the market - next question.
Where the product is sold
- Where will the target market shop? - think segmentation
what will be the most effective distribution channels
- supermarkets/DD/ specialist retail (again consider the segmentation and how to reach high or low involvement targets?)
Exporting? Or multi-state distribution?
- Is more than one style of wine needed for country consumer taste preferences
- Legislation, taxation and duty or restriction on distribution make some markets less attractive
- Is the market price sensitive - should other markets be included (less mature markets)?
List major types of market, describe and give examples according to WI’s market maturity
Mature (high saturation,least growth;reliable trade structures and routes to market; established wine culture)
- has reached potential- stable or declining volumes)
- Germany, France, Switzerland, UK
Established market:
- strong historical growth tailing off.
- Australia, Netherlands, Ireland, Japan
Growth markets:
- wine is a mainstream product experiencing growth.
- USA, Canada, Italy, Poland
Emerging markets (potential for most growth; carry most risk; often do not have the structures in place for an easy route-to-market)
- wine is experiencing growth
- shows potential from a relatively low base
- China, Russia, Brazil
New emerging markets
- wine is relatively new//unknown beverage
- shows potential
- Malaysia, Philippines, Vietnam, Thailand
Describe possible ways for promotion at POS
Promotions that place at point of sale include
- Price Promotion
- Free Merchandise
- Limited Edition Pakcaging
- Competitions
- Tastings
- Staff training & Incentives to sell
Give some dertail on how promotions at POS might be executed
Price Promotion
- attract new customers, inc sales/vol, shift bin ends
- % discounts / season sales/ discount on certain days / discount per group (pensioner or students)
- success determined if volumes remain increased after price returns to normal (may not stay as high as during promo, but expected to be higher than before the promo started)
- risk of price reduction
- is that customer switches after promotion
- results in damage to product image (over-priced, can’t justify extra cost)
- encourages excess alcohol consumption
Price promotion at POS with less risk of brand damage
- multi-buy
- bogof; 2 for price of 1
- linked saves:
- buy the wine and get a % off the good
- or buy x bottles and del is free
Free merchandise (bottle / glasses) - commonly seasonal
Limited edition packaging (wimbledon or world cup or olympics)
- ties in nicely with luxury image
Competitions
- mostly used to collect cust data subject to data priv law
Consumer tastings
- see advantages - a good method for promo.
Staff training & incentives to sell
- good at spec stores/hosp not good at smkts and dd (no cust interaction)
ADVANTAGES
- can increase sales and brand awareness
- studies show tasting increase sales and is a good way to foster brand awareness and affinity
- best results from price promotion & staff incentivisation is when it is together with customer interaction (high involvement customers) - limits to hospitality and specialist retail
- free merchandise can increase brand awareness without reducin price
DISADVANTAGES
- retailers expect producer to fund the promotion, including any lost revenue - means only viable for larger producers
- tastings often result in open bottles that don’t get sold
- free merchandise rarely results in sustained inc sales
- seasonal / event packaging seen as “fun” but not likely to inc sales long term
- incentivising staff is illegal in some countries
List promotions away from point of sale
Advertising: TV, cinema, radio, press, online/soc meda, billboards
- Advantage: good advertising campaign powerful, promotes to large and varied group of consumers
- Disadvantage: expensive, need advertising agency, restricted in many countries
Sponsorship
Website
- advantages: provides information (the story, pairing), enhanced by photo/video; detail events, online shopping; hits varous consumers according to content; must have seo; filter underaged
- disadvantage - must be well designed, well supported
Social media
- advantage - Good for dialogue (immediate feedback and wide, cheap promotion of product); needs to focus on which media to reach target segment;
- disadvantage - monitored constantly to manage negative media to positive closure.
Smartphone apps
Wine tourism
- advantage - beneficial- new producers, regions, customer engagement, inc sales
- disadvantage - need infrastructure, time/distraction, staff cost
Events and festivals
- Advantage - easy access for aud, hi-involv cons, new customers
- Disadvantage - costs, exhibit, staff, prom product, presence of competition
Reviews and awards
- Wine journals, wine critics, wine awards - feature on website, adv on social media, add to prod detail in shop etc)
Public relations
- rep at functions/events; press; social media
- use of influences,(key opinion leaders) and celebrities, brand ambassadors.
