1. LOGO Marketing Alcohol Industry Module Code: 4MBS550 Rebecca Scully – Marcelo Bayas – 1174841 Greg Reeve – Justyna Margoux Vandenbossche -

2. Contents Dark Sides of Marketing 4P’s Consumer Buying Behaviour STP Intro

3. Segmentation Brief description Demographics Behavioural Psychographics Geo-demographics Segmentation

4. Segmentation Cont. Demographics Age: 1.Generation Y – WKD and Bacardi Breezers 2.Generation X – Wines and Beers 3.Baby Boomers – premium Whiskey and Spirits Family Life Cycle: 1.Newlyweds and young bachelors are prepared to pay a higher prices 2.Married couples with children may pay lower prices at supermarkets Gender: 1.Females tend to prefer citrus, white spirit based drinks in bottles that look fresh 2.Males prefer dark spirits and are more inclined to drink from cans Behavioural Usage Occasion: 1.Cheap wine may be bought as a family drink 2.Chateau-bottled wine may be sought after for a dinner party with friends 3.New Year’s Eve - copious amounts of champagne 4.Christmas period - Bucks Fizz Usage Rate: 1.Heavy users – binge drinkers/alcoholics 2.Addictive consumption – product becomes inelastic 3.It’s cheaper to retain a customer than it is to find a new one Segmenting

5. Segmentation Cont. Geo-demographics People who live in close proximity to one another share similar characteristics : 1.Beer drinkers in the north of England prefer a frothy head on their beer, whereas in some parts of the south, local taste dictates that beer should not have a head 1.Marketers recognise that people’s preferences vary depending on where they live, and so effectively tailor their offerings to appeal to different regions Psychographics Social Class: 1.High-class lifestyle 2.Those with lower disposable incomes may prefer cheaper alternatives Personality Segmentation: 1.Stylish bottles and labels reflect a worldlier, sophisticated personality 2.Tin cans consist of a more colloquial tone Segmenting

6. Targeting Targeting is simply the step in which firms evaluate the attractiveness of each segment and decide which of these can offer the optimum return on capital invested (Solomon, et al. 2009). Table 1 (example only, figures not accurate)

7. Targeting Cont. Targeting Strategies Undifferentiated marketing Differentiated marketing Concentrated Marketing Customised Marketing

8. Positioning Positioning 4 - Evaluate market’s response and modify strategies 3 - Match the marketing mix to the selected segment 2 - Offering products with a competitive advantage 1 - Analysis of competitors’ positioning Positioning refers to how customers feel about a particular product, how they perceive it (positively, negatively, expensive, cheap, good quality, poor quality, and durability) and their believes on its features and benefits in comparison to similar product offered by competitors (Jobber, 2007).

9. Consumer Buying Behaviour Why is consumer buying behaviour important to understand? The different types of buying behaviour are: Brief definition Source

10. Consumer Buying Behaviour Cont. Factors influencing: 1.Involvement 2.Internal influences 3.Social 4.Situational Source

11. Consumer Buying Behaviour Cont. Problem recognition Information search Alternatives evaluation Purchase action Post-purchase action Consumer Decision-Making Process: Brief definition

12. Product This is the main element of the Marketing mix. The product is anything offered to customers that (attempts) to meet their needs and wants. Structured from the core, actual, augmented and potential product 1.It is a tangible product that is marketed with strong Advertising. 2.Fast Moving Consumer Good 1.The alcohol industry is (overall) in its maturity stage in the PLC (Source) 2.Co-branding and national branding strategies (Source) Facts

13. Price Brief definition….. There are two main strategies used within the Alcohol Industry; the Value Pricing and the Loss Leader (Below Cost Selling). Loss Leaders Value Pricing

14. Promotion Promotion includes all the activities marketers undertake to inform consumers about their product and to try and encourage potential customers to purchase these (Solomon, 2009) Promotional Mix ‘Promotional mix’ refers to the tools that businesses use to communicate the benefits of its products its customers. These includes: advertising, PR, Sales promotion, direct selling and personal selling. Statistics Alcohol companies spend close to $2 billion every year advertising in the United States alone. From 2001 to 2007, they aired more than 2 million television ads and published more than 20,000 magazine advertisements (Jernigan, 2008)

15. Placement Place refers to the availability of a product to the customer at the desired time and location (Solomon, 2009). 1.Three major stages: production, wholesaling, and retailing. 2.It is estimated that there are some 6 million legally licensed points of sales for beverage alcohol worldwide. 3.Place seems to be rarely advertised as a differentiating factor. 4.However there are two companies who do this very well, Jack Daniels and Fosters. 5.The alcohol industry has a ‘pull’ strategy of marketing. Facts

16. Dark Side of Marketing

17. LOGO