Marketing of Echeverry Vodka - Essay Example

? Marketing Plan – Echeverry Vodka of the of the of the Marketing Plan – Echeverry Vodka Marketing Strategy The marketing strategy of Echeverry Vodka will focus on utilizing strengths of both product and the company, because the company wants to position itself as an innovative company that provides high quality wine to its customers. In order to reinforce marketing strategy, Echeverry Vodka will position itself on the internet and different trade shows of the wine industry. For further reinforcement of this strategy, Echeverry will published letterheads, brochures and business correspondence will be made with corporate clients. The company understands the significance of retaining customers therefore, it will work on the principle that marketing strategy will aim to satisfy its customers by making a reputable name in the market. Mission The Echeverry Vodka mission is to lead the best quality and innovative production of wine in the American market. The company will keep very close and excellent relationships with the consumers to fulfill their needs and requirements. Company will satisfy consumers at any place or time with the best quality product. The Echeverry Vodka will also keep satisfactory profit margins from its business to maintain the company’s growth and financial stability. The vodka company will maintain a friendly and healthy working environment by adding value to the people and implement innovative marketing strategies to strengthen market position by introducing innovative, new, and best quality products in the existing competitive market. Marketing Objectives The marketing objectives for the vodka company that they will follow to maintain its growth and position in the market are: Every month, the company will sustain its positive growth and stability. Each quarter, company will show increasing market penetration. The company will design marketing strategies with huge campaigns for awareness of its product through the trade shows, which will be figured out by the consumer’s responses and feedbacks on quality of the product. The company will use different modes of advertising to market their product through media, home programs and special shows, through direct mails, hotel guides and different charity events. Market Needs To determine the need of market is the most significant management activity for companies because it is useful for making or developing the new product (Morey, Maybury, & Thuraisingham, 2002). The company will provide tasteful wine to its customers and taste of Echeverry Vodka will be different from the competitors wine. Most of the people in Virginia are experiencing similar taste of wine therefore, it is the need of the market to introduce new wine different from others, and people will be able to get a different feeling when experiencing that wine. Echeverry Vodka seeks to provide high quality wine to its customer for making them satisfy and enticing them to drink this wine again. Market Analysis and Competitors: Due to the economic downturn of 2008, the Virginia wine industry has seen a decline, because people became hesitant of buying the product for their luxury. Due to this reason, the competitors have cut down their prices because they do not want to lose their market share (Full Glass Research, 2011). However, Echeverry Vodka has decided to launch itself because it is predicted that the wine industry will increase by 11% in the year 2013, and revenues of this industry will increase up to $49 billion. The popularity of mixed drinks is rapidly increasing in the market and consumer’s spending for non-durable goods has increased more than 6% therefore, company has an opportunity to launch itself at this stage. The main competitors of Echeverry Vodka are Absolut Vodka and Smirnoff because the rates these competitors are offering is similar to the rates of Echeverry Vodka (ABC, 2012). Financial Objective The Financial Objectives that Echeverry Vodka Company will follow are as follows: Every quarter the company will reduce 1% cost for consumer’s possession. The company will maintain decline in variable costs through the competencies that are achieved by the experiences. Every quarter the company will raise its profit margins by 5%. Target Markets For the success of any organization, choosing right target market is vital for organizations, because without determining right target market, it is not possible for organizations to succeed (Kotler, Haider, & Rein, 2002). The Echeverry Vodka Company will market its product to the adults especially the sophisticated and classy youngsters wanting to party. The company targets the age of 24 to 36, fashionable and stylish college students who want to experiment new taste with thrill. The company will also market its product to different segments of diverse markets. The company aims to target people wanting to change their taste of wine and wants to experiment in search of different taste. Therefore, the company will target old age people who frequently use wine and like to enjoy new taste of the wine. The end users are targeted for the Vodka market who works with operators having their own routes to enlarge their selections for wine industry. In this category of users, the large wine industries engage their workers for the operations that are involved in their transactions as a different part in their business The distributors of Northern Virginia will also targeted for marketing Echeverry Vodka product because the company realized the importance of distribution in this business and if there are no quality distributors of the product, then company will not be able to cater its target market. Hotels and bars in Southern Virginia targeted for the Echeverry Vodka because most of the youngsters likes to party in these places. The large delivery houses that will deliver Echeverry Vodka to different parts of the Southern Virginia will be targeted for marketing of the Vodka product. Positioning The company will position itself as large supplier of new, innovative, and fresh Vodka in Northern Virginia. To gain this position, Echeverry Vodka will control its edge in this competitive market. The company will take pleasure of being first in the competitive market of the wine industry in terms of its taste, because no competitor has been able to provide similar taste that this wine is offering to the customers of Northern Virginia. The company will attempt to gain this position to create and set the position of the best Echeverry Vodka brand in the market. The aim of the company is to design features of the product in such a way that it can become competitive in the market and being a small company, Vodka Echeverry will be extremely flexible and considerate when meeting demands of consumers. Apart from providing quality taste and the unique product features, Echeverry Vodka will aims to compete for pricing with the competitors because in order to gain market share in Northern Virginia market, company must offer pricing which is below the prices of the competitors. The decision of the organizations for competitively position their product depends on two factors in which one is the attractiveness of alternate targets for organizations and other is serving each target according to their requirements (Graham, 2008). Strategies The main objective of the company is to become a market leader in the wine industry of Northern Virginia and for this purpose, the company will make immense efforts for increasing market penetration. The steps in the marketing strategy of Echeverry Vodka is to create customer awareness for its wine, make a strong customers base, and working for making customer loyalty for the product. The message that Echeverry Vodka portrays is providing the best quality product in the wine market, and this message of the company will be communicated to customers by different techniques and methods. The most important method of communicating with customers and vendors will be advertisement made from different sources. The second method of communication is involving in trade shows that will be a valuable, as the company will get a chance to exhibit their product in front of interested people. The last method of communication is making the website of the company where wine will be directly sold to the customers by taking orders from them through online. Marketing Mix The marketing mix of Echeverry Vodka will be based on many approaches that include advertising, customer service, distribution and pricing. Advertising and Promotion: Echeverry Vodka will use many diverse and unique methods of promotion via marketing campaigns that will help to increase sales of the company in quick time. Customer Service: In order to become successful in the wine industry, extra-ordinary customer service will be provided to customers and the company will ensure on-time delivery of wine to its customers. Distribution: The company will distribute Echeverry Vodka in all regions of Northern Virginia, which will help to increase sales volume of the product and more customers can be targeted with this distribution strategy. Pricing: The pricing is designed in such a way that it will be competitive for the company and at the same time, it will give fair margin to the company and distributors of Echeverry Vodka. Market Research For making an effective marketing plan in the starting period of business, Echeverry Vodka will held focus groups who are potential users of the product. This will help the company to understand needs and demands of the customers and taste these consumers expect from the new product in the market. The company will made video of the discussion with focus group that can help to review and observe requirements of the users regarding this product. SWOT Analysis Strengths: The taste of Echeverry Vodka is unique. The marketing and promotional methods used by the company are different from competitors. The aim of the company to create strong brand loyalty and perception can be considered as strength of Echeverry Vodka. Weaknesses The company is offering only one product at the initial stage. Some other competitors are offering price range lower than Echeverry Vodka. The company is launching its product in a highly competitive market and it is difficult to capture market share in Northern Virginia. Opportunities The product can be launched in Southern Virginia after its initial stage. The company can merge itself with any other large brand, which can be useful in increasing sales volume of the product. The company has an opportunity to launch itself in other new regions such as Middle East and other Asian markets. Threats New competitors are entering in this market therefore competition is increasing. Due to economic downturn, people are not willing to buy expensive products for their pleasure. The government taxes and regulations for wine industry are rapidly increasing. Penetration Pricing Strategy Type Price Echeverry Vodka 200ml $11.40 Echeverry Vodka 50ml $4.35 Echeverry Vodka 1L $44.75 Echeverry Vodka 375ml $16.75 Echeverry Vodka 1.75L $64.75 Echeverry Vodka 750ml $33.70 When the company aims to launch its product or service at a price lower than its original price, then this strategy is known as penetration pricing. This strategy is useful when company launches itself in the market and wants to capture maximum market share by attracting people through its low pricing (Ferrell & Hartline, 2010). Echeverry Vodka will use penetration pricing in its initial stage because company wants to attract maximum customers by its lower pricing. The rate of normal 200 ml bottle is $11.40 but in the initial stage, company will sell this bottle at $11 so that maximum people can buy the product. Similarly, for all sizes of bottles, company will sell them $0.40 to $1.5 cheaper, which will help to increase market share in Northern Virginia market. Promotional Strategy The company will promote its product on different occasions by using various promotional tools such as advertising in print media, local radio, brochures, social media marketing, discount offers, and coupons etc. The first promotional offer will be special discounts on buying of every two bottles of Echeverry Vodka. Similarly, on special occasions such as Christmas and Ester, company will give special discounts to its customers in order to make them loyal with the product. The main advertisement of Echeverry Vodka will be made on print media and local radio stations, in which collaboration will be made so that they can provide suitable time slot for targeting interested customers. Echeverry Vodka will also use internet marketing, because most of the youngster’s uses internet therefore this medium will be helpful for marketing this product. Advertising campaigns will be run on different social websites such as Twitter, LinkedIn, and Face book that will help to create customer awareness for the product. References List ABC. (2012, August). Vodka (Imported). Retrieved August 17, 2012, from: http://www.abc.state.va.us/Pricelist/VODKA_ (IMPORTED).html Ferrell, O. C., & Hartline, M. (2010). Marketing Strategy. Mason: Cengage Learning. Full Glass Research. (2011). The Economic Impact of the Wine and Wine Grape Industries on the Oregon Economy. New York: Full Glass Research. Graham, H. (2008). Marketing Strategy and Competitive Positioning. New Delhi: Pearson Education India. Kotler, P., Haider, D., & Rein, I. (2002). Marketing Places. New York: Simon and Schuster. Morey, D., Maybury, M., & Thuraisingham, B. (2002). Knowledge Management: Classic and Contemporary Works. 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