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OBJECTIVES
By the end of the first year:
Generate $13 million in sales revenue
Capture 3% market share of nonpremium light beers
Increase brand awareness of Labatt Lift
Establish Lift as the healthy beer of choice in a variety of social settings including
urban and suburban areas
Communicate our core benefit statement; that Lift will leave you feeling lighter than
other “light beers” as it is a glutenfree alternative.
Leverage the timesensitive discount to capture a large portion of the nonpremium
“light beer” market share
MARKETING STRATEGY
PRIMARY (1)
Male and female young professionals
Ages 1930
Nonmarried, but may be in a relationship
Welleducated, working for 35 years
Millennials, middleclass
Outgoing, health & fitness conscious individuals
Enjoy drinking in social environments
Seek benefits based on quality, price, and convenience
Currently beer consumers, with moderate usage
Loyal
TARGET MARKETS
PRODUCTPOSITIONING STATEMENTFor healthconscious young professionals, Labatt Lift is the best tasting and most competitively pricedgluten free nonpremium beer. Lift is made with high quality naturally sourced ingredients andexemplifies Labatt's historical brewing excellence.
CORE BENEFIT / SUSTAINABLE COMPETITIVE ADVANTAGELocation high density of target marketLifestyle trends Healthy, highquality natural ingredients, Gluten freeAdjusted to consumer demand light beer 73%, specialty beers 21.5%, Demand for cansCompetitive Price Slightly higher than major competitor, lower than gluten free competitors
BRAND NAME & RATIONALE
Design
Labatt LiftSymbolizes a feeling of “lightness” & enjoymentHighquality alternative without forfeiting flavourSubtracts feelings of bloating and fatigue
FEATURES & BENEFITS473mL aluminum can100% Gluten free (rice beer)High quality natural ingredients Zero preservatives or additives Hint of citrus flavour (lemon)
Traditional Labatt colour scheme; Cloud motifClear 'glutenfree' logoMinimalist design emphasizing simplicity / purity
PLACELift will use Labatt’s currently established distribution channels throughout the product life
cycle. Indirect channel: from manufacturer to retailer to consumer.
• The Beer Store and LCBO (select locations)• Toronto High population Large number of retailers High density of target market Expendable money
INTRODUCTION PHASE LOCATIONS• Expansion into more LCBO’s and BeerStores• Expansion into other licensedestablishments Chain restaurants Sports and event venues Bars and clubs• Expansion across Ontario• Expansion across Canada
ADOPTION PHASE LOCATIONS
TV Ads, display Ads, poster “available at The Beer Store & LCBO”Instore promotions and Sampling
Distribution Network Support
PRICINGPRICE STRATEGY
Offered at a lower price during introduction phasePrice set lower than niche glutenfree beer competitors, Price set slightly higher than largercompetitors to emphasize greater quality
BUNDLING PRICING• 6packs priced less than if bought separately• Encourages trials of the new product• Encourages customers to stockup• Minimizes customers purchases of competing brands
• $2.50 for 473mL can• $2.50 for 473mL can• $12.25 for 6 x 473mL cans
RETAIL PRICE
PROMOTIONAL PRICING PLAN
MANUFACTURER SELLING PRICE60% retail price ($1.50)
• During the introduction phase, Lift will be offered for a discounted price of 10% off• 6packs offered at $12.50• Both prices are subject to change depending on the success of the product• Further promotional pricing plans will be assessed and determined later in the life cycle
PROMOTION STRATEGY
Building awareness of new Labatt product
Differentiate the product from other light and glutenfree beer offerings
Persuade consumers to try Labatt Lift (3% of total 'light' nonpremium beer market)
PROMOTION OBJECTIVES
MAIN MESSAGES TO COMMUNICATELabatt Lift leaves you feeling lighter
“Feel the Lift”
Labatt Lift is a glutenfree beer that will leave you feeling great, even the morning after
Labatt Lift is 'social friendly'; great for urban suburban occassions
IMC PROMOTION TACTICS
ADVERTISING Aim to persuade consumers to try the new product.Static posters, display ads, print, digital advertising, rollovers Consistent
design theme to convey these benefits.
SALES PROMOTIONS Pointofpurchase sampling, Discounted product(10% off) to encourage trial and stimulate demand
ELECTRONIC MEDIA Social Media campaigns (Twitter, YouTube)Relevant hashtags, traditional media spots, customized website
PUBLIC RELATIONS Labatt Lift will sponsor select events in the GTAregion within the first 6 months
THE TARGET AUDIENCEAdults (aged 19 – 60) who want a healthy (or glutenfree), great tasting beer
KEY BENEFIT AND RATIONALE
Labatt Lift won't leave you bloated like traditional wheat based 'light beers'
Labatt Lift is 100% glutenfree rice beer made with all natural ingredients with notes of
punchy citrus (lemon)
KEY TAKEAWAY
Labatt Lift is a reasonably priced nonpremium gluten free beer with naturally sourced
ingredients that tastes great and will leave you feeling lighter / lessbloated afterwards than
traditional 'light beers'
CREATIVE OVERVIEW
EVALUATION & CONTROL3% MARKET SHARE
SALES
Measure sales after 3 months to see if we are on track to achieve market share, if not, tactics wouldbe adapted to better meet customer demand.
Evaluate revenue projections after 3 months to see if sales meet revenue benchmarks. If not, reducelarge overhead costs as a means to mitigate expenditures. Reevaluate after 2 weeks to see impacton sales.
Market research, tastings, web surveys, and instore feedback cards, online community buzzReevaluate angle used in ad campaigns, use marketing research to realign our advertising basedon feedback from market research.
Evaluate revenue within first quarter to see if we are on track to meet objectives. If consumers areunresponsive to initial discount, leverage marketing research to provide customers with incentivesmore aligned with customer demands and wants.
CUSTOMER USAGE & ATTITUDE
PROMOTION RESPONSE OBJECTIVE
FINANCES - KEY FIGURES SUMMARY~10 million Canadian beer drinkers
72.5% of light beer volume sales
21.5% of all money spent on speciality beer
Canadians spent ~$11.6 billion on beer in 2013
Compound Annual Growth Rate (CAGR) = ~1.8% across the entire industry
Expected growth rate for ‘healthy beers’ is higher than the CAGR due to current
lifestyle trends ("Beer Industry Profile: Canada"; “LowCarb Beers for Dieting Drinkers”;
Consumer Trends: Wine, Beer and Spirits in Canada; IBISWorld; The Canadian
Brewery Industry).
MARKET SIZE & MARKET SHAREThe Canadian beer market brings in revenue of $11.6 billion annually.
21.5% is specialty beer
72.5% among all types of bee
The category market we are competing in is worth $1.81 billion annually
15.6% of the revenue brought in from Canadian beer sales
Obtain 4% market share
This represents $72.3 million
As a proviso, we are only entering the market with a limited investment percentage
ratio relative to the forecasted revenue based on market size as a hedge against
potential variability.
This strategic riskmitigation approach to budgeting serves to partially insulate Labatt
minimizing losses if market share after year 1 is closer to 1 or 2% as opposed to the 3
6% forecasted range.
If variability results in our favour, the marketing budget can quickly increase to coincide
with a larger revenue stream.
BUDGET JUSTIFICATION
Approximately 30%+ of revenue is justifiable as a necessity to differentiate ‘Lift’ from
competitor offerings. A large marketing budget in year 1 of a new product launch in the
‘Beer’ market category is essentially mandatory to break through the ‘noise’ of competitor
ads and promotions.
As alluded to previously, If year 1 spending yields a rate greater or equal to breakeven to
justify increased expenditure, year 2 spending could increase in a linear manner or
potentially exponential manner until diminishing returns significantly reduce profit per cost
unit spent; at the apex of the forecasted market cap.