Final Project, Marketing Mix, Distribution

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.

Final Project, Market Mix, Product

Our product is Vodka. No new product development, no new brands, product improvement or modifications. However, if Billionaire Vodka extends its product line, it would adhere to the same strict standard of quality and excellence that we apply to our luxury vodka. For now product mix is not a stage in which our company is engaged. We will concentrate on shaping the customers product-use experience and how customers will use and benefit form our product. “Design begins with observing customers and developing a deep undestanding of their needs. More than simply creating product or service attributes, it involves shaping the comsomer’s product-use experience: Marketing: An Introduction Armstrong.koler p. 215 . Billionaire Vodka will add customer value through distinctive product style and design. The style of the product will be eye-catching, from its papyrus label, to its gold cord, and its old world feel. This product creates core customer value from its visible attributes to its smooth, refreshing taste and branding. "Another way to add customer value is through distinctive product style and design. Design is a larger concept than style. Style simply describes the appearance of a product... design is more than skin deep—it goes to the very heart of a product. Good design contributes to a product’s usefulness as well as to its looks." (Marketing: An Introduction, Armstrong/koler, p. 215). The bottle design has an easy to use grip and an easy to peal wax stamp that guarentees its freshness, with a lid that has an old world feel, yet is easy to open and close.

Final Project, Target Market Strategy

Revealing the firm’s market segment opportunities, Billionaire will evaluate the various segments and decide how many segments it can serve and which segments it can serve best. Billionaire will look at three factors, segment size and growth, segment structural attractiveness, and company objectives and resources. “The company must first collect and analyze data on current segment sales, growth rates and ezpected profitability for various segments, it will be interested in segments that have the right size and growth characteristics.” Marketing: An Introduction, Armstrong/Kolter, p. 186. The right size for the Billionaire market is not the largest segment available, as it’s competition is too aggressive with the mid-priced vodka’s. Billionaire Vodka finds more potential and profits in the more exclusive, luxury vodka markets. “A company should enter only segments in which it can create superior customer value and gain advantages over competitors.” Marketing: An Introduction, Armstrong/Kolter, p.186. It would make little sense for Billionaire to enter a large market segment in which the most common vodkas are sold. “Market targeting can be carried out at several different levels. …companies can tartet very broadly (undifferentiated marketing), very narrowly (micromarketing) or somewhere in between (differentiated or concentrated marketing).” Marketing: An Introduction, Armstrong/Kolter, p.186. Billionaire Vodka will use Concentrated Marketing (or niche marketing) strategy rather than going after small shares of a larger market, The firm will go after large shares of one or a few smaller segments or niches. This will allow for us to focus our limited resources on serving niches that would be unattractive to larger companies.

Final Project, Situation or SWOT Analysis

When managing the marketing of Billionaire Vodka we will begin with a complete analysis of the company’s situation  by using a SWOT analysis. Defined: as An overall evaluation of the company’s strengths (S), weaknesses (W), opportunities (O), and threats (T). Billionaire Vodka has many strengths (S). “The company should analyze its markets and marketing environment to find attractive opportunities and identify environmental threats. It should analyze company strengths and weaknesses as well as current and possible marketing actions to determine which opportunities it can best pursue. The goal is to match the company’s strengths to attractive opportunities in the environment, while eliminating or overcoming the weaknesses and minimizing the threats. Marketing analysis provides inputs to each of the other marketing management functions.”(Marketing: An Introduction for Education Management Corporation, 10th Edition. Pearson Learning Solutions p. 55). First, it is one of the finest tasting vodka’s in existence. Our rye is grown on a farm that is known to be the oldest farm in Monte Carlo. It has existed since long before the country of Monte Carlo has been around. Before the country of Monte Carlo was created, it was considered the most nutrient rich soil in France and all of Europe. It has catered to King, Queens and Monarch’s. Second, our process for making this vodka has been refined to include the highest standards of processing known to man. Thirdly, we rarely find the need to advertise; the pure satisfaction of our high caliber clientele is the best advertising we could hope for. Our weaknesses (W) are few. But one would be our limited capacity output. Since we keep very tight control over the quality of our ingredients and never compromise, we are often limited to the availability of the finest ingredients in the world. Opportunities (O) are endless. Though we only offer our product via the world's finest establishments, there’s an increasing awareness and demand for these fine outlets. Our Threats (Y) are simply put, everyone wants to be the best, yet few achieve the quality, high-grade, luxury vodka offered by Billionair. "A company's marketing environment consists of the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers." Marketing, An Introduction, Armstrong/Koler, p.p. 66 The marketing and research intelligence used for collecting information about the market is used in the customer and competitors environment by the company's marketers in order to come up with new strategies in order to meet new marketplace challenges and opportunities.  

Final Project, Objective

Billionaire Vodka's objectives are aggressive but achievable for the first and second year on the market, we are aiming for unit sales volume of 600,000. Second-year objectives are to sell a combined total of 1.2 million units and to achieve breakeven early in the year. The goal with our product launch is to establish a well-regarded brand name associated with important positioning. "The company's objectives should be defined in specific terms so management can measure progress and plan corrective action if needed to stay on track. This section describes any major issues that might affect the company's marketing strategy and implementation" Marketing: An Introduction, Armstrong/koler, p. MP7. Billionaire Vodka will invest heavily in marketing to create a superb and distinctive brand image projecting luxury, quality, and value. We will adjust our marketing efforts as necessary according to the market changes and demands with a measured awareness and response. Our market strategy is based on a positioning of product differentiation. Our primary consumer target is middle to upper income professionals who have higher expectations of their spirits. Our secondary consumer target is lower to middle income earners who want the experience and taste of a luxury spirit and can spend a little more to for that extravagance. Billionaire's primary target is educated, entrepreneurial and well-rounded, as well as affluent executives and professionals who want to relax with what is clearly know as “the best”.  We are positioning the Billionaire brand as the most sumptuousness, opulent vodka on the market. Our marketing will focus on the down time of those who make things happen, those with discriminating taste, and those who see the worthiness in quality. We will build a competitive advantage by supporting the appropriate strategy and implementation of an effective market strategy. To reinforce our brands prominence in the industry, we will offer a money-back guaranty and the brand logo will be succinctly remarkable as to differentiate it form any competitor. We will also offer our product in different size bottles, all adhering to our distinct bottle features. The pricing strategy will be introduced at $30 wholesale/$45 estimated retail price per unit. Our channel strategy is to use selective distribution, marketing Billionaire Vodka through well-known, quality stores and establishments. We will add channel coverage in all the major markets across the globe. We will also arrange special payment terms for retailers that place volume orders. We are planning tight control measures to closely monitor quality and customer-satisfaction. We will be able to react very quickly in correcting any problem with early warning signals that will be monitored for signs of deviation from the plan. Lastly, managers will use budgets to project profitability and plan for each marketing program’s scheduling, expenditure and operation.

Wk 8 EOC Mission statement

As stated in the text book, "A mission statements should be market oriented and defined in terms of satisfying basic customer needs. Products and technologies eventually become outdated, but basic market needs may last forever." pp.39 Marketing, an Introduction, Armstrong & Kolter . Also, as mentioned in the text book;"a mission statement is a statement of the organization’s purpose—what it wants to accomplish in the larger environment. A clear mission statement acts as an “invisible hand” that guides people in the organization. Marketing, an Introduction, Armstrong & Kolter  Billionaire Vodka isn't just a drink, it betters your sense of well being and accentuates your gravitas. Billionaire Vodka promotes quality and excellence in European vodka, and enhances the perception of luxury spirits for aficionados of vodka worldwide. We are committed to capturing the essence of splendor in every glass. The call for quality and distinction above the rest has been answered.