Vincor: Project Twist Case Study Analysis
Alternative 2 – Social media marketing
Media marketing constitutes to approximately37 percent of the marketing approach, to create brand awareness among the consumers. With a significant increase in the internet users;media marketing has turned out to be one of the effective approaches,for product branding to target market. Based on the specifications and segmentation of the target audience; media marketing provides an easy access to the consumers, resulting in an increased probability of consumer reach, which would lead towardsincreased sales.
Alternative 3 – Logo and slogan
The designing of logo for a particular product serves as the key factor that differentiates the product in the market, among the existing ones.Based on the type of each product that is energy drink,is differentiated by Red bull.In this manner, each product should be provided with a logo and a slogan that would remind the consumers of the taste, flavor and value of the product. For real fruit juices –“A key to good health”and spring water-based cooler – “Stay hydrated, stay fresh”.
Brand Name:
The brand name of the products is recommended to havefallen under the refreshment category i.e. coolers. This is because of itspopularity and awareness among the consumers, which would make it easy for the consumers to try new products under the same brand name. However, consumers prefer to try new products,but the trial is not mainly dependent on the name but also on the product characteristics that greatly influences the experience of the consumers. Thus, the brand name for real fruit juices is Organoblend, and spring water based cooler is Elixir.
Pricing Strategy
Based on the analysis and the selection of target audience; the pricing strategy of the product would be premium pricing,because majority of the drinkers represented an income of $75000 or more, which did not make it difficult for the consumers to focus more on price than on the product value. Thus, Grey Goose Approach was found to be the most appropriate approach among all the given options. This approach was expectedto not only bring an improvement in the profit generation but to also provide the organization with a competitive advantage against its competitors in the market. One of the factors that affect the pricing strategy of the organization both positively and negatively is brand reputation. Thus, the category of coolers represented high levels of brand loyalty, which indicated strong brand reputation in the market.
Consumer selling price per unit
Based on the assumptions provided for the calculation; the recommended consumer selling unit per price was 6.74. The consumer selling price per unit was identified by taking the weighted average selling price,i.e. the sum of all prices given by all three options which was divided by the number of total values. Whereas, the weighted average channel price (retail price)was calculated to 6.74,which served as the consumer selling price per unit. Additionally, the contribution margin was calculated by the subtraction of fixed cost with the sales i.e. 717666.6667 for marketing spending, as shown in Appendix E.
Discounting Strategy
The discount strategic approach was considered to be at the rate of 15 percent, based on the assumption. The discount was to be offered for 10 percent of the products, which led towards a decline in the contribution margin as well as in sales. This means that with offering discounts either at 15 percent or at 25 percent (deep discounts) there is less probability of improvement in the sales generation, year after year. It is so, because there had been a decline in the sales by deep discounts as compared to the sales by moderate discounts, as shown in Appendix F.
Packaging Decision
Based on the financial analysis of the product’s pricing;the critical metrics for management that deliveredreal business performance, was at regular pricing. But, in real-life sales expectations; the probability of number of units sold,tends to higher with discounts. Similarly, the industrial dynamics represented an increased sales of 4-packs. Thus, the packaging decision is to package real fruit juices (Organoblend) and spring water-based cooler (Elixir)at the price range of more than $10,including a round-shaped glass bottle.
Distribution Channel
Considering the effective engagement of the distribution channel;Vincor is recommended to establish strong awareness on the brands,among the potential consumer base in the market. Similarly, there is a requirement to pull the demand for the third party channels,for the expansion of product distribution at an international level. This mainly includes collaboration with third parties for the development of better understanding of the target market,followed by marketing campaigns. An effective engagement of the distribution channel regarding the products’ promotion, results in the generation of higher profit margins through a significant increase in sales,followed by the integration of the multiple marketing channels i.e. in-house tasting, media marketing and campaigns.
Conclusion
The factors that greatly influenced the launch of the product, were analyzed in this report. The analysis was based on the evaluation of the five products,for the best product to be launched in the market, with great potential of improving the sales and helping in generating more profits. Thus, based on the analysis; the products that represented high success probability, were real fruit juice coolersand spring water-based coolers. The pricing strategy was set to be premium i.e. more than $10,with glass packaging.................................
This is just a sample partical work. Please place the order on the website to get your own originally done case solution.
Related Case Solutions & Analyses:
Best Buy in Crisis
Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886
Google in China (B)
Terumo (C)
Politics and Prudential Supervision: ABN Amros Bid for Antonveneta (A)
MontGras: Export Strategy for a Chilean Winery
Microsoft’s Financial Reporting Strategy
Rovio Entertainment: A Case Study of How Rovio Derived “Place Surplus” in the Finnish City of Espoo
Strategic Plan At Sun Life
AQR’s Momentum funds
