Cheers! Cheers! Cheers!
Cheers! Cheers! Cheers!
Cheers! Cheers! Cheers!
Cheers! Cheers! Cheers!
MARKETING PLAN
Cheers! Cheers!
Cheers!!Cheers!
vodka
Cheers! Cheers! Cheers!
[Pick the date]
PURNIMA YADAV
Cheers! Cheers! Cheers!
Cheers! Cheers! Cheers!
Cheers! Cheers! Cheers!
Cheers! Cheers! Cheers!
Cheers! Cheers! Cheers!
Cheers! Cheers! Cheers!
Cheers! Cheers! Cheers!
Cheers! Cheers! Cheers!
Cheers! Cheers! Cheers!
Cheers! Cheers! Cheers!
Cheers! Cheers! Cheers!
Cheers! Cheers! Cheers!
Cheers! Cheers! Cheers!
Cheers! Cheers! Cheers!
EXECUTIVE SUMMARY
This report is a marketing plan for Kyndal India’s new flavoured vodka ‘Cheer’s’. The report
provides guidelines for Cheer’s promotional strategy for a period of one year 2009-2010.
The objectives of the promotional plan are to achieve growth for the Kyndal India brand by
tapping into a new product and market, to increase market share and build awareness and
preference for the Kyndal India brand in the affordable ready-to-drink (RTD) segment.
Cheer’s is a vodka-based pre-mixer, consisting of vodka, fresh juices and liqueur. Cheer’s will
be positioned as an affordable, mass-marketed pre-mixer with a lower alcohol and sugar content
to communicate the product as a diet alternative.
The target market is young-adults, aged 18-27, particularly females (the primary market) and
males (the secondary market). Females form the primary target market as the traditional
consumers of RTD beverages; but Cheer’s will be positioned for both sexes to create an edgier
image. Cheer’s will be positioned as the diet drink for the price-conscious consumer, appealing
to consumers seeking a healthy alternative. The main message of the advertisement will be:
‘Less sugar’, reflected in the slogan: ‘Lighten up with 25% less sugar.’
The campaign will use an integrated promotional approach, enlisting a range of media vehicles
to support the campaigns central theme. Mass-media, as well as direct-marketing will be used for
maximum exposure and penetration of the market. The campaign budget will be $3 million for
the launch and maintenance of Cheer’s and the Kyndal India brand. The campaign will primarily
involve: sales promotion, support media, print media and the internet. Additionally, to abide by
the legal policies advertising will be done by surrogate advertising.
To date, the RTD market is highly saturated with many competitors. In order to penetrate the
market Cheer’s will need to successfully differentiate itself and build awareness of the product in
the market.
CONTENTS
• Executive Summary
- Presents a quick overview of the plan for quick management review
• Current Marketing situation
- Introduction to India & Indian Economy
*Demographics
*Psychographics
- Indian Alcohol Industry
*Alcohol Industry – bird’s eye view
*White Spirits
*Vodka as a category
• SWOT Analysis
- Identifies the main strengths and weaknesses and the main opportunities
and threats facing the product
• Objectives and Issues
- Defines company’s objectives in the area of sales, market share and
profits, and the issues that will affect these objectives
• Marketing Strategy
- Presents the broad marketing approach that will be used to achieve the
plan’s objectives.
• Action programmes
- Specifies what will be done, who will do it, when will it be done and
what will it cost
• Strategic Marketing Budget
- A projected profit and loss statement that forecasts the expected
financial outcomes from the plan
INTRODUCTION TO INDIA & ITS ECONOMY
• India boasts of a national population in excess of 1.13 billion, 2nd most
populous country after neighbor China
• With 29 States & 6 Union Territories, India is also the world’s largest
democracy
• There are 7 major religions, 14 nationally spoken languages & 500+ dialects
• India is the world’s 12th largest economy in terms of market exchange rate &
4th largest in terms of purchasing power
• It also enjoys the distinction of being the 2nd fastest growing economy in the
world
• The GDP composition, which till about a decade ago was highly dependent on
Agriculture, has now tilted considerably towards services
– Agriculture – 20%, Industry – 28%, Services – 52%
• Sharply rising incomes leading to increasing urbanization and dramatic shift in
the income distribution statistics.
India’s high population (2nd highest in the world today) implies that even a slight
change in proportion results in a significant increase in terms of absolute numbers
Growth of the Luxury Segment
Some other important indicators of growth are:
• No. of Retail Malls has grown from 20 in 2004 to 358 in 2006 & expected to
cross 600 by 2009
• Further to this, many International retail chains which have estimated the retail
market at over US$ 300 billion have started entering the Indian market. These
include Wal-Mart, Tescos, Carrefour, Marks & Spencers, Metro & others and
domestic giants like Reliance, Spencers, Birlas
• Sale of Luxury cars have being seeing a growth and players like Mercedes,
BMW, Porsche, Audi, Bentley, and Rolls Royce are already here
INDIAN ALCOHOL INDUSTRY
Indian Liquor Industry with estimated market value of INR 340 billion is growing at 12-15%
over the last two years. The industry is estimated to have sold 115 million cases of IMFL last
year. The sector is expected to maintain its CAGR of ~15% while the premium segment Wine
and Vodka is expected to grow at a higher rate. With consolidation and foreign acquisitions
gaining steam the sector is about to witness next phase with realization rising in line with that of
their foreign counterparts.
There are 325 distilleries in India, with an installed capacity of about 3.58 billion litres of liquor.
However, production rate is about 40% of total licensed capacity as total requirement of liquor
stands at 1.3 billion liters.
Major National Players: United spirits with about 60 % of market share in IMFL is the
undisputed leader. Radico Khaitan who entered the IMFL space some 8 years back has already
cornered 12% market share and gaining. Other players include Mohan Meakin (9%), Jagatjit
(8.5%), etc.
International players: The major international players are Pernod Richard, Remy Cointreau,
and Diageo (Diageo has tied up with Radico for entering Indian markets in brown spirits)
Investment Rationale: Inherent Potential, Deregulation, western cultural influence and high
entry barriers has helped the industry in notching up higher sales growth. Alcohol sale is driven
by the high GDP growth and more people entering the drinking club with newly obtained
prosperity or from up trading from the existing brand.
Inherent Potential: Since liberalization, the economy has been growing at steady pace with per
capita income rising from INR 23,222 in 2005 to INR 6,012 in 1991.
Shift from country liquor to IMFL is expected with rising per capita income and limiting the sale
of country liquor by states due to hygiene factor.
INDIAN ALCOHOL INDUSTRY
All figures are in 000’s - 9litres cases
RTD
145000
Flavoured Rum
125000 Dark /GoldRum
105000 White Rum
Cognac
85000
Scotch
65000
Tequila
45000
Liqueurs
25000 Whisky
5000 Vodka
Brandy
-15000
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Gin/Genever
Total spirits market is estimated at 146 million cases in 2007-08
SEGMENT WISE GROWTH
50
45
40
35
30
25
2006-07
20
2007-08
15
10
0
Whiskey Vodka Gin Brandy Rum Liquers / RTD Total Spirits
Flavoured
Spirits
PREMIUM VODKA DISTRIBUTION
RELEVANT UNIVERSE
CITY On Premise Off Premise
DELHI 217 60
MUMBAI 274 625
BANGLORE 138 332
TOTAL 629 1017
PARTICULAR BRAND WISE DATA ABOUT DISTRIBUTION
After studying the above data it is easy to understand that which brands have what position in the
market and how can we establish our product ‘Cheer’s’ in the market. It will also help in choosing
the best marketing strategy after considering the position of the competitors in the market. In the
above table ‘On Premises’ means in clubs, bars and pubs and ‘Off Premises’ means retail outlets.
SWOT ANALYSIS
STRENGTHS WEAKNESSES
• Cheer’s Vodka has less calories as • The state of the economy is a
compared to the other products in weakness that will have to remedy
the market. itself.
• It offers a product different from • There are a lot of vodka products
any other vodka in the market. The on the market to compete with as
unique flavours that are extremely well.
well known to people of all ages
will help to sell the product. • Does not have much international
presence.
• We also offer the vodka at a price
that will make it sell more readily
over its competitors.
• Stable and prosperous parent
company
OPPURTUNITIES THREATS
• Getting celebrity endorsements may • The sheer volume of other
come easier and we can also make competitors that exist in India is so
our presence known in the high end large that it will be hard to set the
nightclubs that exist. product apart.
• Opportunities for cheap promotion
• Government has imposed
are abundant as we can set up
restrictions which has reduced
promotional events in night clubs
brand visibility to a large.
and ultra lounges and offer the
venue deals to distribute the
product.
• Popular among urban female
consumers, but needs to create more
awareness.
OBJECTIVES AND ISSUES
Marketing Objective: Cheer’s Vodka is an aggressive competitor in a market where there is a
lot of rivalry. It is one of the fastest growing companies in a very crowded market place. Its main
objective is to connect ‘Cheer’s’ with the young consumer of 21+ age and get into their mindset
as healthier option than the other competitors in the market. As this Vodka comes in several
flavors but still this has 25% less calories than other products available in the market, only 110
calories in a bottle wherein the competitors on an average have at least 170 calories per bottle.
Communication Objective: Building brand awareness will be the one of our company's
top goals. Cheer’s Vodka will raise brand awareness of men and women over age 21 by
50% in India by one year. Our communication objectives will be achieved through
surrogate advertising that will be fully discussed in subsequent sections.
Communication Strategy: Communication through, posters in the shop, through a micro site in
Kyndal website where consumer could leave messages and the best message gets a gift from
Cheer’s Vodka. The gift would be a recipe in shape of a bottle along with that the promotion
details would be mentioned.
Overall Strategic Goal: To establish a truly differentiated brand positioning which resonates
with consumers.
Consumer Goals: Increase frequency of consumption amongst existing users and recruit new
consumers 25-45 years old Premium Spirit Drinker.
MARKETING STRATEGY
DISTRIBUTION STRATEGY
• Deliver 12,500 cases in select On and Off premise in key cities Delhi, Mumbai, Punjab,
Chandigarh, Goa and Bangalore; 17.5% of total vodka brands.
• Creation of strong consumer pull and brand image.
• Establish & Scavenge in the key markets through BTL activities.
Target Hotel and Restaurant Chains
VOLUME: All India
VOLUME: All India
60%
Location Volume
Tier 1
Delhi 3000
Maharashtra 3000
Punjab 450
40%
Bangalore 750
Chandigarh 300
Total 7500
Tier 2
Goa 1000
West Bengal 750
Chattisgarh 500
Madhya Pradesh 600
Tamil Nadu 650
Kerela 500
Uttar Pradesh 400
Rajasthan 600
Total 5000
Grand Total 12500
This is the distribution pattern that would be followed by the company. It would ensure that
the product is reaching the market in the right proportion and the tier 1 cities have been
focused more than tier 2 cities to check the response of the active target market which is
mostly available tier 1 cities in the case of our product.
PRE BUZZ OF THE LAUNCH:
Pre Launch PR Coverage
The pre-event media strategy will focus on the following:
• Create awareness & buzz about the event in the target audiences (Announce the
event through special party blogs “[Link]”, “[Link]” and through
“Face book” and “Orkut” along with feature stories in key lifestyle magazines).
• Event listing in key Corporate & Feature media like Mint, Business Standard,
Vogue, F&NL etc.
• 2-3 interactions with representative of Kyndal/Cheer’s on the event and the
rationale behind the same.
• Suggested time frame – 2 weeks prior to the event.
POST EVENT:
• The post event media strategy would focus on creating more awareness about
launch of the brand all over India, the Unique Signature cocktails made from Cheer’s.
Hence besides the follow-up on the event coverage with magazine, would target features of
Cheer’s on television by the method of surrogate advertisements.
PR TRADE:
Target Media- Spirit, Hospitality BIZ, Hotels, etc (Trade Publications)
Talk Points:
1. Cheer’s range
2. Trend of drinking Vodka
3. History of Kyndal India
4. Making of Cheer’s
5. Unique Cocktails made out of Cheer’s
PR CORPORATE:
Target Economic Times and Corporate Dossiers, Business Standard, Mint
Talk Points:
1. Cheer’s as a brand, its Business, its distribution, sales and marketing of
alcoholic content, the growth in few Years.
2. Tie up with Kyndal India for exclusive distribution for India and Sub
Continent.
3. Market Expansion of Cheer’s brand in India.
4. Key Marketing initiatives Cheer’s of in India and Sub Continent.
ACTION PROGRAMMES
COST OF THE LAUNCH
Promotion Activities-
“Spray the Flavor of Happiness- Cheer’s”
• Objective - Create ‘Cheer’s’ flavors as the main ingredient for consumption
• Mechanics - Create small sprays which has different flavors of ‘Cheer’s’; when the
consumer enters the bar the consumer is sprayed with a flavor in their mouth by a promoter
girl. One who like’s the flavor, they would purchase the Flavor either straight or through
cocktails.
• Communication - Promote through Event listing, Blogs, Kyndal website feature
stories on the concept in key newspapers and magazines, tent cards Standees, e-mailers to
consumers from the database of the outlet as well as Kyndal India.
• No of Outlets - 4 in Delhi, 4 in Mumbai, 4 in Bangalore, 3 in Chandigarh and 2 in
Punjab.
• Time Period - 4 days in a month for 2 months
COST
CHEER’S – SPRAY THE FLAVOR
Particulars INR USD
Cost of Spray Bottles 2720 55
Stands 25500 517
Tent Cards 27200 552
Promoter Girls/ Boys 136000 2759
Alcohol – Cheer’s 68000 1379
Travel Cost- Marketing 30000 609
Stay Cost- Marketing 30000 609
Entertainment Cost for Media 5000 101
Miscellaneous 5000 101
Total 329420 6682
Cheer’s “Match the fun”
• Objective – Connect to the target market with innovative and fun way and use it as
a brand connect.
• Mechanics – Promoter girls / boys dressed up in colorful dresses to approach
consumers and play a simple game where the consumers are asked questions on SEVEN
ways of having fun, the best arrogant answer which matches the brand personality gets a
frozen shot of Cheer’s.
– Those who play but do not win get an offer – buy two 30 ml pegs of Cheer’s
and get a 30 ml shot free.
• Communication – Through Tent Cards, Stands, Bill leaflets, e-mailers, website of
Kyndal and PR listing and feature stories.
• Venue – 4 Delhi, 4 Mumbai, 4 Bangalore, 2 Chandigarh & 2 Punjab.
• Time Period - 8 days in a month for 1 month.
COST
CHEER’S – MATCH THE FUN
Particulars INR USD
Promoter Girls/ Boys 128000 2596
Tent Cards 25600 519
Stands 24000 487
Frozen Shots 64000 1298
Discounted Cheer’s 128000 2596
Alcohol - Cheer’s 68000 1379
Total 437600 8876
Merchandizing Strategy
• Create visibility in both on and off premises, through High End Electro luminescent
display to create a differentiator.
• All key outlets in Delhi, Mumbai, Bangalore, Chandigarh and Punjab will have the
merchandize placed. Kyndal India would get into a contract with the outlet to execute the
same.
COST
MERCHANDISING
Particulars INR USD
ELD Posters 280000 5680
Rentals 2100000 42596
Fabrications 42000 852
Total 2422000 49128
Bartending Session – Cheer’s
• Activity Specifications - Cheer’s Bartending Session
• Goal(consumer) - To connect to the consumers and educate them about Cheer’s
Vodka and its flavors.
• Communication - Posters in On Premise to provide information regarding session
• Target group - age group: 21+
• Activity - Invite the Cheer’s brand ambassador and conduct a session in two key
cities of India for consumers.
• Activity Rationale - To connect to the consumers and increase home consumption
of Cheer’s.
• Mechanism - Invite 50 consumers from the database for a tasting session in a new
style select on premise outlet. The brand ambassador would take them through the strength
of Cheer’s and brand culture which has contributed to the unique success of Cheer’s.
• 2nd part - Practical part-Make number of drinks which are easy to make at home ,
talk about trends and show some bartender tricks with drinks.
• Communication - website, e-mailers, Cheer’s recipe book mark (which is in a
shape of a bottle and has few recipes of Cheer’s Vodka would be given as a token gift to
consumers.
• Cities - 1 in Bangalore and 1 in Punjab.
• Time Period - Twice in a year.
COST
BARTENDING SESSION
Particulars INR USD
Bartender’s Travel Cost 160000 3245
Bartender’s Stay 40000 811
Alcohol Taste 20000 406
Collateral Cost 20000 406
Venue 50000 1014
Snacks 25000 507
Marketing – Travel And Stay 30000 609
Miscellaneous 10000 203
Total 355000 7201
Retail Promotion
Mechanics – Buy a bottle of Cheer’s Vodka, the consumer would be entitled to participate in
winning High End Gifts.
• 35% of the stocks would carry gifts. There would be a lucky Draw in which gifts would
be distributed.
Surrogate Advertising
Due to stringent laws against liquor in India, it gets really difficult to promote the product and
to position in the mind of the target customer therefore surrogate advertising helps to promote
the product. So to promote Cheer’s the method of surrogate advertising would be used.
• Cheer’s Mineral Water – Bottles of Cheer’s mineral water would be identical to those
of Cheer’s Vodka. It would have the same logo and would be distributed free, both On and
Off premises.
• Cheer’s Merchandise – T Shirts, caps, key chains with Cheer’s logo can be sold to
promote the product.
• Cost – The cost for surrogate advertising has been calculated roughly around 500000.
Merchandise
BUDGET
