1. Marketing Alcohol Industry Module Code: 4MBS550 Rebecca Scully –
Marcelo Bayas –
Gereg Reeve –
Justyna
Margoue Vandenbossche -

2. Contents
Intro
STP
Consumer Buying Behaviour
Promotion
Pricing

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

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

5. Personality Segmentation:
Segmentation Cont.
Segmenting
Psychographics
Social Class:
High-class lifestyle
Those with lower disposable incomes may prefer cheaper alternatives
Personality Segmentation:
Stylish bottles and labels reflect a worldlier, sophisticated personality
Tin cans consist of a more colloquial tone
Geo-demographics
People who live in close proximity to one another share similar characteristics:
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
Marketers recognise that people’s preferences vary depending on where they live, and so effectively tailor their offerings to appeal to different regions

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
Once potential target segments have been evaluated, firms should end up with a few potential viable segments that meet the evaluation criteria. These segments must now be given a “profile”; marketers often refer to the process as profile segmentation.
(example only, figures not accurate)

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

8. Positioning 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).
1 - Analysis of competitors’ positioning
2 - Offering products with a competitive advantage
3 - Match the marketing mix to the selected segment
4 - Evaluate market’s response and modify strategies
Positioning

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

10. Consumer Buying Behaviour Cont.
Factors influencing:
Involvement
Internal influences
Social
Situational
Source

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

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
Facts
It is a tangible product that is marketed with strong Advertising.
Fast Moving Consumer Good
The alcohol industry is (overall) in its maturity stage in the PLC (Source)
Co-branding and national branding strategies (Source)

13. Price
Brief definition….. There are two main strategies used within the Alcohol Industry; the Value Pricing and the Loss Leader (Below Cost Selling).
Value Pricing
Loss Leaders
Products sold below the selling cost, often using discounts and promotions.
Attracts customers’ attention to the store where they are likely to also purchase other products with much higher profit margin
The perception of consumers on the value of goods, where the higher price indicates higher quality, and visa versa.
Increasing the value of the good through packaging, displaying product origin or celebrities appearances.

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).
Facts
Three major stages: production, wholesaling, and retailing.
It is estimated that there are some 6 million legally licensed points of sales for beverage alcohol worldwide.
Place seems to be rarely advertised as a differentiating factor.
However there are two companies who do this very well, Jack Daniels and Fosters.
The alcohol industry has a ‘pull’ strategy of marketing.

16. Thank You !