VINCOR PROJECT TWIST Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Vincor Project Twist Case Study Solution

Introduction:

The Vincor is one of the largest manufacturers and distributors of wine. It ranks in the top eight producers of wine in the world. The Vincor is the market leader in Canada having a market share of 21%. In 2005, Vincor was the second largest supplier of refreshments in Canada where its main products were the Vex and Growing Cider. Even though Vincor was the market leader in Canada, the alcohol industry started to shrink by 6% which caused an impact on the sales of Vincor. The reason for the decline in the alcohol industry was mainly due to the change in the customers’ preferences.

The Vincor Company hired a brand manager Kelly Kretz to improve the company’s sales and branding image. Kretz started working on a program by the name of “Twist”.The purpose of this program was to launch a new alcoholic beverage in the market. Kretz’s responsibility was to work on the product’s characteristics, positioning, branding, and strategies. To achieve success in the project Twist, she created a scenario regarding conducting surveys from customers, engaging with the marketing development team and departments of R&D and finance, and identifying threats from the competitors.

Kelly Kretz was facing challenges in the development of the product as what kind of refreshment should they manufacture, while keeping in mind that 80% of the previous new products launched by Vincor had failed to capture the market and had resulted in declining the sales of the company.

Situation Analysis

The situation analysis is one of the models used in measuring the organization’s performance by analyzing the company’s internal and external forces. Such tools which help in analyzing the company’s performance are SWOT, PESTLE, 7 C’s and various other methods.

The tool which would be applied to measure the Vincor organization would be the 3C’s which will analyze the Company, Customers, and Competitor. After conducting this analysis,it would help Kelly reaching the decision on the project “Twist” about the kind of product Vincor should launch.

Customers:

Kelly Kretz conducted a survey of the customers to identify the market segmentation by analyzing the refreshment category. The purpose of the survey was to understand the demographics, consumer perceptions, psycho graphics and behavior towards buying a refreshment. The key finding of the overall survey was that the customers preferred to change their taste after three years on the drinks and usually looked for different types of refreshment. This showed that the overall lifespan of a refreshment product is mostly around three years.

The primary drivers towards the customer’s decision on trying new kinds of refreshment depend upon the product taste and attractive packaging. Most of the customers became aware of drinks through friends and advertisements. The females accounted for 57 % of the refreshment drinkers and the males for the remaining 43%.

The customers who were willing to try different types of refreshments were about 56% and were the age of 19 and above. The young people under the year of 44 accounted for 58% of the total refreshment drinkers while the remaining 42% were above the age of 44. Household income was also a major driver towards the purchase of drinks. The 31% of the refreshment customers were people with incomes above $75,000, while 21% people were with incomes under $25000 were 21%,and 27% customers were with incomes between $25,000- $49,900. Also, after the survey, it came to knowledge that customers who don't prefer refreshments were strong in taste and high in sugar.

The overall factors which influence the customers’ buying of refreshments are mostly:

Income
Lifestyle
Advertisements
Taste
Packaging and few other factors

Competitors:

The competitors that competed with Vincor were Diageo, Bacardi, and Mark Anthony. Diageo's vodka by the name of ‘Smirnoff Ice’ was launched in the year 1999 and had become one of the top-selling vodkas. It also helped Diageo in becoming the market leader by having a market share of 26%. The other competitor was Bacardi with the product of rum by the name of ‘Bacardi Breezer’ which had a market share of 17%, while another company was Mark Anthony which launched its product in the year 1996 with the name of ‘Mike’s Hard Lemonade’and captured a market share of 9%.

For surviving in the alcohol beverage industry, it was vital for the beverage companies to come up with tremendous innovations. Such innovations could be in the development of new products, improving the distribution of the beverages, increasing marketing activities, an improvement in the current products labeling and packaging and changes in the tastes of beverages. It was found out that around 30% of the store shelves consist of new beverages or company products line extensions.

VINCOR PROJECT TWIST Harvard Case Solution & Analysis

The seasonal days in which the customers mostly buy the beverage are during the summer season between the month of May and September. It is that type of season in which most of the alcohol companies conduct experiments such as launching of new products, changing the marketing strategy, developing attractive packaging to attract customers and reducing their prices. Some of the competitors work on their distributing strategy by focusing on areas where there is high demand for beverages........................

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