Billionaire Vodka is a specialty product and has many loyal consumers in all major markets. Our customers make a special effort to locate and purchase our product with little comparison to other brands. They have a lower sensitivity to price and expect to find our product in quality establishments and fine outlets in any major market. Billionaire will partner with major distributors for improved joint performance. “…they must find ways to “partner” with major distributors in a search for distribution economies and improved joint performance.”. Marketing: An Introduction, Armstrong/Koler, pp. 231 - 232). Having an increase in the number of competitors due to the profit opportunities shown by Bilionaire will lead to an increase in the number of distributors. “Attracted by the opportunities for profit, new competitors will enter the market. They will introduce new product features, and the market will expand. The number of distributin outlets, and sales jump just to build reseller inventories” Markering: An introduction, Armstromg/Koler, p. 259. Billionaire will spend a lot of money on promotion and distribution and having already spent a lot of money on the product Billionaire expects to capture a dominant position. “In the growth stage, the firm faces a trade-off between high market share and high current profit. By spending a lot of money of product improvement, promotion, and distribution, the company can capture a dominant position.” Markering: An introduction, Armstromg/Koler, p. 260. The characteristics of Billionaire distribution, as an introduction, will build selective distribution, and as growth continues it will build intensive distribution, and then with maturity it will build more intensive distribution, and finally, in the event of declining sales, it will phase out any unprofitable outlets.
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