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8/9/2019 DA MKT PLAN

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TABLE OF CONTENTS

EXECUTIVE SUMMARY ................................................................................................ 1

SITUATION ANALYSIS ................................................................................................. 3

OBJECTIVES ................................................................................................................ 8

BUDGETING ................................................................................................................ 9

STRATEGY ................................................................................................................ 10

EXECUTION .............................................................................................................. 11

EVALUATION ............................................................................................................ 15

REFERENCES ............................................................................................................ 17

EXECUTIVE SUMMARY


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Dionysus is a Russian based Vodka sold in the Guyana for almost 20 years. It is best

known for its superior quality and smooth taste that is like no other.

Dionysus will be launching three new flavours to their product line. In an effort to freshen

the image of the product. With the introduction of these new flavours the company is

expected to increase the sales in lacking market segmentations and maintain the brand

loyalty among the current users.

With the introduction of the new flavours, Dionysus is expecting an increase of sales by

15% of the previous year.


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SITUATION ANALYSIS

Historical Context

The name Dionysus was introduced in 1979 by the entrepreneur Boris Putin. Putin used

fractional distillation that produces liquor without fusel alcohol in Russia which made

Dionysus one of the smoothest liquor available on the market. Much of Dionysus fame is

due to its long-running advertising campaign, created by an advertising agency based on

the origins of the products name which featured a drunken Greek God.

In the 1990s Guyanese consumers accounted for 40% of the Vodka purchased worldwide.

However 90% of the Vodka purchased in Guyana was being produced inexpensively by

other distillers, the prevailing opinion being that all vodkas were alike and the cheaper the

vodka, the better. The company then embarked on a new advertising campaign to prove to

the Guyanese consumers that the quality of a product does matter and Dionysus had high

standards.

When the Dionysus ad campaign began in 1995, the company was selling 20,000 cases

annually in Guyana. In 2000 sales topped with 1.5 million cases a year.

In recent years, though a seemingly endless supply of new competitors began and of food

the market the need to keep the product fresh for its consumers and potential consumers

was needed. The Dionysus Company decided to introduce new flavors to its product line asaway to give the product a fresh a fresh new look in order to retain its consumers and also

attract new buyers.

Industry Analysis

The vodka industry is presently a large market which is quickly developing and moving

higher and higher in the business world.

Dionysus is supplied countrywide and also introduced in foreign countries. This industry is

made up of different types of companies, which includes liquor stores which sells all types

liquor, department stores which sell everything including vodka.

This product is stocked in every store countrywide. The industry distribution channel

allows the product to be sold directly to consumers from the manufacture and also to

dealers (wholesalers and retailers) who then sell it back to the consumers. The Company is

now able to product more of its product (Dionysus) because of major developments of this


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the supply ratio is always greater than the demand ratio. These trends tend to have a

major impact on the long term future of the industry increased sales, more profits.

SWOT Analysis

Strengths:-

1) High Brand recall and recognition.

2) Campaign is highly recognizable and consistent.

3) Ads reinforce brand name and identity, innovation and creative ad campaign. The

brand reinvented itself as a cultural sponge, soaking up and morphing to its

surroundings.

4) Dionysus has established strong identification with local communities featured in

Ads, which triggered emotional attached and loyal to brand.

Weakness:-

1) Not enough flavors available to the consumers.

2) Tends to be a more expensive brand for consumers.

3) Dionysus is seen by some to be an exclusive brand.

Opportunities:-

1) New flavors launched-Flavored vodkas help in attracting the consumers in tryingsomething different.

2) Changes in technology and markets on both a broad and narrow scale helps in

increasing the all round the Guyana market.

3) Changes in Government policies as it relates to the industry.

4) Changes in social patterns, population profiles, lifestyle changes etc.

5) The market for pre-mixed drinks has developed at a rapid pace in the last few years

and, with consumer preferences evolving sophisticated product.

Threats:-

1) Keep creating original and well done advertisement.

2) Maintaining the exclusivity of the brand, avoid dilution and continuous in the

prices.


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3) Implementing of new flavors and careful segmentation and planning is needed to be

done to ensure the integrity of the brand to be maintained.

Market Analysis

Market Segmentation:

The market for Dionysus can be placed in the following segments:-

1) Youths-These are the groups that ages 18 -26, most of them are generally studyingand earning from part time jobs. The best part is that this age group is a party

going group that generally parties a lot in their university time. Whatever they tend

to earn from their part time jobs is generally spent on liquor once they are addicted

to this very thing. So by dropping the price of Dionysus the sale group certainly

goes on the price of the product as their income is generally less as compared to

other segment people.

2) Working Couples These are the group of consumers, are both working, have

enough disposable income to spend when incomes are combined from both

partners. They tend to have life without any worries, they enjoy working and lovesto party, usually their drinking pattern is low to medium. They like to experiment

with new tastes, flavours available in the market, hence it is difficult to have them

as loyal consumers, usually they prefer to visit night clubs over the weekend and the

drinks servers there, they have tendency to be little bit more loyal towards night

clubs they attend rather that brand or products the drinks, hence rather that brand

or products they drink, hence at times it is in the hand of bartenders what they will

drink. Growth rate of this market is low to moderate as people in general being

more careers concerned nowadays, hence late marriages and live in relations are

taking place more often tha usual matrimony.

3) Old Aged People in this group ages from 45 65 and who generally are self

employed people or those with stable jobs and they are the ones who have the

highest spending power. They like to drink for pleasure and leisure, they are easily

approachable but are very hard to convince. Brand loyalty is strongest among this

group and they are usually moderate to high users. They generally stick to the

brand that suits them and dont prefer to change the brand again and again.


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Target Market.

As per the analysis the best suitable segment to be targeted should be the Old aged, the

third segment due to various reasons such as:-

a) They are highly income people, with high spending power who dont worry aboutspending a lot on branded things once they get the taste to it.

b) These people are those who are highly brand conscious who generally sit out with

their old friends at home after the days work as these people do not go to club that

often and change their tastes.

c) They are matured in nature and are loyal to the brad once they are satisfied with

the same.

Competitor Analysis

Dionysus is faced by high competition in the alcohol industry with existence of key players

like Smirnoff in the market. In such a scenario to gain competitive edge, the company must

cut down its prices to attract customers. Dionysus should also on go ahead selling its

product location to location to compete with Smirnoff and hold a strong position in the

market. Five forces of competitive position provides a simple perspective for assessing and

analyzing the competitive strength and position of the company. The forces are new

entrants, suppliers, buyer, substitutes and industry competition.

Positioning of Dionysus Vodka:-

In essence one could define Vodka as an extremely generic product. Being odourless,

tasteless, and colourless and containing 37.5% alcohol at the minimum that made it

difficult for marketers to hold a position in the product as such, in order to set its weak

products contents in the background.

Dionysus understood the huge impact price and status have on perceived quality. They

knew consumers looking for quality expected to pay something extra for it. Theycommunicated their quality through distinctive packaging that set itself apart from the

rest, and a witty ad campaign that positioned the product as art. As a result, Dionysus built

a powerful brand in Guyana by creating a need for superior vodka in the minds of

consumers. Their customers were willing to pay the premium price for the status of

belonging drinkers. Advertising and promotion play an important role in communicating


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and reinforcing the brand quality message and the marketing mix of these brand building

activities matter a great deal.

Differentiation:-

Differentiation is defined as set of adding few meaningful and valued differences addingfew meaningful and valued differences to distinguish the companys offerings from the

competitors offerings. It is a unique value proposition in terms of product features,

design, service, media, communication, durability, reliability and so on.

Dionysus is addressing itself differently as the brand with strand advertising campaign and

high brand recall and recognition. To differentiate themselves they can launch themselves

at various events throughout the country. They can differentiate themselves in terms of the

promotions they provide. They can provide categories like drinker for those light drinkers

which have minimal percent of alcohol with some flavored drink to complement.


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OBJECTIVES

The objectives that Dionysus Company currently has are:-

1.) To introduce three new flavors- peach, lemon and apple to its product line by the

first quarter of this year.

2.) To increase the sales in the less loyal market segmentation by 15% with the

introduction of the flavors, in an effort to move them away from the competing

brand.

3.) Maintain brand loyalty among current Dionysus drinker. By means of market

research to evaluate if their needs are being satisfy.

4.) To increase the overall sales of the product by 35% within the year.

5.) To satisfy and fulfill customer needs to ensure they are getting what they are paying

for.


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BUDGETING

Figure one showing the Projected Sales Figures for 2010

Dionysus will be using the percentage of sales approach to calculate its advertising budget

for the year. Dionysus will focus on the sales figures for the sales figures for the latest five

years because the firms studies have shown that its future growth is more closely related

to recent events rather that distant past. Sales for 2010 are expected to rise 15% above the

2009 level. The 15% growth is the average growth of between 2005 and 2010.

So based on the average growth of the product for the last five years. The advertising

budget will be 10% of the profits made in the last year. This is important because if the

market expands more that the company has geared up for it will not be able to reach ittarget audience. It customers will end up buying competitors products and then lose

market share. On the other hand if its projections are overly optimistic then they might

end up investing too much. This would mean low turnover ratios and high cost for

depreciation. All of this would result in low profits, a low rate of return on equity and

depressed stock price.


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STRATEGY

Brand Positioning Strategy.

In todays world 90% of the products launched fail without a positioning strategy. The

mind stores information like a hard drive in a relational nature. Within the minds file

directory, concepts are segmented and stored, first by category (alcoholic beverages), then

by sub-category (vodka) and eventually over time by specific attribute or image

(sophisticated).The mind is constantly gathering, sorting and ranking useful beneficial

images (an image are people and occasions) or attributes (peer approval, good taste, good

time).The brand positioning strategy also involves creative images and artwork using the

Dionysus bottle to entwine recognition of the beverage with its perception of quality and

exclusivity associated with purchasing Dionysus Vodka.

The main strategy being implemented to increase the sales was its advertising campaign.

Dionysus advertising campaign positioned the product to be of a very high quality. With its

very first commercial which featured the drunken Greek God with the title Dionysus the

Drink of Gods was a successful campaign. Today Dionysus has a 40% share of the

Guyana Vodka market. So it can be said that the concept of the purest and highest quality

has now been taken.


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EXECUTION

Copy Strategy

Our goal is to introduce new flavours of Dionysus as a way to give our product a fresh new

look. The flavours, peach, Apple and Lemon are expected to be added to the product line

by the first quarter of this year also with the expectation of increased sales of 20% by the

second quarter of the year after the introduction of the new flavours.

The Dionysus Company will be using both the Advertising and Promotional strategy to

market its product. For the advertising strategy television and newspaper will be need as

our main advertising medium because they reach a very large percentage of our target

market.

The promotional tools that we will be using are sampling and events marketing.

Sampling: To make aware of the new flavours of the Dionysus will be giving samples at

various nightclubs and bars throughout the country in an effort to attract new entrants

and current consumers who frequent nightclub and bars.

Event Marketing: Dionysus will be hosting a series of special events such as Duck Curry

competitions, Chutney Shows, Soca Shows etc which will be exclusively sponsored by

Dionysus. The new product line will be sold at the events, hence creating awareness among

consumers.

Target Audience

The profile for Dionysus customers consist of the following geographic, demographic and

psychographic factors:

Geographic:

1) The immediate geographic target is countrywide.

2) The total targeted population is estimated to be 250,000.

3) Population Density: Urban and rural.

Demographic:

1) Age range: 18 65.

2) We will be putting more emphasis on the male population.


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3) 45% of the customers are sugar workers and other professionals.

4) The professional earn over $45,000.

Psychographic:

1) The Image Seeker someone that buys a bottle of Dionysus instead of the the Osco

brand because of the image it portrays.

2) The Task Seeker is best described as the person that buys alcoholic beverages to

quench their thirst or, like many university students, to get drunk.

3) The Commodity Drinker is not necessarily an alcoholic, drinking is a way of life for

them. They drink nearly every day either with meals or after work.

Media Plans

In developing a media plan the firm can set their minimum and maximum budget

constraints for the year. The firm will then use the Cost Per Thousand (CPM) as a

means of comparing media costs among vehicles with different Medias to assess their

circulation and reach. The Medias that will be used are Newspaper and Television.

The average cost for a full page an ad in the daily newspaper is $100,000 for a month

and the newspaper has a circulation of 200,000.Its CPM is calculated as:

CPM = Ad. Cost X 1000

Circulation

= $100,000 X 1000

200,000

= $ 500

It would cost Dionysus $500 for every thousand newspapers circulated.

The average cost for a 1 min. ad on television is $115,000 for a month and television has

a reach of 400,000.its CPM is calculated as:

CPM = Ad. Cost X 1000

Circulation


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CPM = 115,000 X 1000

400,000

=$ 287.50

It would cost Dionysus $287.50 for every thousand advertisement reached to the public.

Although newspapers are a greater cost on the company. Newspapers can be better

circulated to various segments of the market such as the old aged. Television on the

other hand may cost less but the audience size varies throughout the day as people tune

in and tune out.

Advertising Budget For A Month

Production of Advertisement $500,000

Advertisement on Television $1.5M

Advertisement on Newspaper $1.11M

Total Expenses $3.1M

Note: The figures for the television and newspaper advertisements reflect the total cost

for the various television stations and newspapers throughout the country.


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EVALUATION


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Dionysus Guyana will be evaluated by parent company Dionysus Russia to see how

successful. The company will be launch new flavours to their product line by the first

quarter of the year. The present campaign will be very effective as we are expected to

complete and even surpass our objectives within the specified time.

The launch of the new flavours will have a permanent effect on the company as the

consumers now have a choice when it comes to choosing a Dionysus. It would also increase

sales in our less loyal market segmentation. This new advertising campaign would increase

the sales of Dionysus and boost brand awareness also maintain the image of the company,

with the extensive advertisement and promotional events. Dionysus will make aware the

products that are featured in their product line. The new flavours would enable the

company to maintain the image that customers have of the product. By making aware of

the products available, sales would increase tremendously. Thereby increasing the overall

sales for the product.

Dionysus will continue to evaluate their products as the time progresses. Also make sure

their consumers are getting the best Dionysus will test advertisements and promotions in

the developmental stages to ensure everything is running smoothly.

Dionysus is a brand know for it superior quality and taste and will continue to provide best

for its consumers.

THE SAMPLE IMAGE


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Figure two showing a Bottle of Dionysus

REFERENCES


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Aake, D.A. & Myers, J.G 91987) Advertising Management (3rd Ed.),New Jersery: Prentice

Hall Inc.

Belch, G.E. (2001) Advertising & Promotion (5th Ed.) New York: McGraw-Hill Compaines

Inc.

OGuinn, T.C. et al (2003) Advertising & Integrated Brand Promotion, (3rdEd.) London:

Thomson South Western.

Bowen, Alvin (2009) How To Prepare An Advertising Plan.

Various Lecture Notes

Documents

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