bevibene

in collaboration with faculty from

1© 2008 Fabio Dallan


emmsExecutive Master in Marketing & Sales

Marketing Plan 2008-2010 BEVIBENE Srl

Fabio Dallan

CONFIDENTIAL



Executive Summarybusiness, figures and plan overview

300

400

20 1 010

290

2007 B2B

business

B2C

business

others

business*

2010

[1] wineries consulting, Xmas gifts, e-business, merchandising

During this Marketing Plan we will analyze…

how to rewamp the "original Bevibene mission to improve the wine knowledge to their friends",

doing deals

how to do it in one of the biggest market in the World, where the wine

consumptions are in contraction (a mature market)

how to nurture a unique positioning towards the classical wine channel

how to enrich the brand by strong meanings

how to enlarge the actual business

how to apply acquired marketing models and new

marketing theories in a real business situation giving

practical insights



I. The company overviewi. the company mission and business activitiesii. the up to date sales figures

II. The market analysisi. the industry macro environmentii. the wine distribution channeliii. the market trends / key changesiv. the customers habits and needsv. the customers clusteringvi. the competitor landscape analysis

III. The SWOT analysisi. the SWOT analysisii. the Critical Success Factors

IV. The marketing plan 2008-2010i. the new brand positioning

ii. the B2B business: new selling opportunities

iii. the B2C business: non-conventional marketing

iv. the Communication plan

V. The 2010 figures and profit analysis

Table of contents



The company overviewthe mission and business activities

• Bevibene, born in 2004 by "word of mouth" among relatives and friends, originates from the wish to offer wine by an unexplored way in wine selling

• the new formula is represented by wine tasting events, occasions to have a complete wine experience and develop an entire wine knowledge

• "our original mission is to improve the wine knowledge to our fellows and to escort them in a long journey of knowledge" [1]

• the customer profile is today composed by professionals, employees or simple workers, aged 35-55 years old and living in Milan and hinterland

• the cluster common fil-rouge is that all are habitual wine consumers, wishing to drink good value-for-money wines in the day by day life

• still today the winning business idea remains the "quality of contact", also when it is translated in the new B2B segment (HoReCa channel), where the company assures a non conventional quality of service

• critical point remains the logistic issue, both in consumer and professional markets, where deliveries performance "at home" or in the "POS" are one of the success factors

[1] BEVIBENE partner interview



The company overviewthe up to date sales figures

B2CB2C• ~300 clients who bought in 2007• only few could be considered "loyal customers"

on the basis of their repeated purchases• the average purchase was 30 bottles per year• the medium net price was 10€ per bottle• the total revenues were ~40% of 2007 figures

B2BB2B• 25 clients who bought in 2007• business originated by B2C friendships• the average purchase was 800 bottles per year• the medium net price was 9€ per bottle• the total revenues were ~60% of 2007 figures

20052005

20062006

20072007

108 K€

151 K€

290 K€the current marketing activities:

• direct communication

• website www.bevibene.net

• Customer Relationship Management

[1] Bevibene paper[2] AIDA Bevibene company report

http://www.bevibene.net/



Market analysisthe wine distribution channel

wine makers

wine-makers consortium co-operative wineries

wholesalers

export

Ho.Re.Ca.

Hospitals & Religious Co.

Armed Forces

Turist Organizationslarge store

B2B

B2C

Railways, Ferries & Planes

others*grocery wineshop wine-bar

70%65%

30% / 35%

[1] Nielsen survey Vinitaly 2007 / ISMEA-Nielsen[2] "Grandi vini" Mediobanca survey report* others: direct sales, internet, mailing, television

volume / value

large stores (GDO/Discount)

70%

wine-bar4%direct sales

4%

others2%

wineshops8%

grocery12%

[ MS in volume ]

• two main channels: "at home" (consumer) and "out" (professional)• different mix and selling prices in the two channels• many formats in the B2C with a huge presence of the "large stores"• trend of the typical "large stores" concentration• new actors as the wine-bar with new positioning and added values



Market analysisthe market trends

• a business strongly characterized by overproduction

• a market where the consumptions in volume are in contraction

• a market where the average prices are in growth

• new mixes in the wine choices, new occasions, new opportunities and new consumption habits

• a reality where 80% of the "large stores" purchases are made by women [1]

[1] focus group COOP Vinitaly 2006

[2] http://inumeridelvino.it



Market analysisthe customers habits and needs

• in terms of consumption the Italian market preferences are strongly characterized by the "Italian wines"

• the market purchase drivers [1]

- first and basic factors: price, bottle (or other containers), color- secondary factors: typology, denomination (DOC, DOCG), zone of origin- very specific factors: vine, year, producer

• but also in terms of wine customer profiling is important to analyze the "slight" differences among different possible clusters [refer to next slide]

• at the other side in the B2B market the hotel industry is in continuous concentration and business evolution, searching new profit sources




Market analysisthe customers clustering

shopping addictedoccasional purchasers

wine experts

@homeconsumers

wine lovers

"fashion victims"

“gift purchasers”

young drinkers



formats

larg

e st

ore

gro

cer

y

win

esh

op

win

e-b

ar

mai

lin

g

in

tern

et

tel

evi

sio

n

wine range choice 29% 10% 45% 9% 1% 6% 0%

price spectrum 45% 12% 27% 5% 2% 9% 0%

comfort of purchase

47% 20% 24% 1% 2% 7% 0%

purchase fastness 37% 22% 33% 2% 3% 3% 1%

"no-wine purchases"

47% 27% 11% 2% 1% 12% 1%

shopping assistance

15% 17% 51% 15% 1% 1% 1%

shopping experience

18% 14% 47% 16% 1% 3% 0%

knowledge development

24% 10% 26% 26% 1% 12% 0%

Market analysisthe competitors landscape analysis

qualitative market researchMilan, 17-21 january 2008

sample: 30 people, 2/3 males and 1/3 females, aged 35-55 years old, professionals



strengths

opportunities threats

weaknesses

The SWOT analysisStrengths and Weaknesses, Market Opportunities and Threats

• the high "quality of contact"• the wish to transfer knowledge to the customers• the good logistic deliveries services

• the limited available resources• the actual business geographical limitation• the inadequate location

• the Italian mkt size then the target mkt size [1]

• the growing prices market trends• the Italian real lack of wines knowledge [2]

• the negative wine consumption trends• the continuous growth of "large stores" sales• the new downtown wine-bar fashion trend

[1] Milan and hinterland market[2] "all Italians are trainers, but only one is coach"



The SWOT analysisthe Critical Success Factors

on the basis of the competitive overview and the landscape, the critical success factor will be to nurture the

differentiation towards the classical wine channel

Therefore:

to find a unique positioning will be the imperative goal of the "alternative formula"

this should be translated in many critical drivers:

to offer a unique event experience

to offer a real knowledge improvement

to offer a superior customer service



The marketing plan 2008-2010the new brand positioning

remaining focused on actual accessible market [1], prospects should be targeted on the urban middle class, in all its variations: managers, lawyers, university faculties, fiscal accountants, notaries, professionals, dentists, reporters, specialist doctors… all similar for high purchase power

the USP (Unique Selling Proposition) should emphasize the development of customer wine knowledge

consequently a set of fundamental brand portfolio meanings should be defined: wine culture & knowledge improvement and high quality of contacts in the "sense of community"

the aim should be to create a sense of community among all consumers who could share social events, experiences and above all a long journey of knowledge

this community should have two warm meeting environments: a new and cool wine taste location and a new internet blog

a new graphic BeviBene logo and baseline are proposed, the latter being too much "fast food" oriented, hence in contrast with the new "slow drink" positioning

[1] Milan and hinterland market still remain unexploited



The marketing plan 2008-2010the B2B business: new selling strategies

in the professional business two main growth axes have been explored:

in all these markets the operating procedure has to follow the KAM approach, where the values proposition exceeds the product and price proposition: knowledge, services, environment, reliability, community, consultancy…

new

B2B

o

pp

ortu

nities

new

B2B

o

pp

ortu

nities

• in order to find new business opportunities in the professional segment, first step has been to focus on the coherence between the two companies final consumers

• second step has been to try to invest and capitalize on the "sense of community" proposed to the B2C clients

• third criteria has been to reach the targeted urban middle class

Ho

ReC

a actual

bu

siness

Ho

ReC

a actual

bu

siness

• besides the widening of B2B portfolio clients in the more classical business as hotels and restaurants, few head insights could be underlined:

• try to work on the « profit centers » of the customer business

• try to follow the « business model enlargement » that is in progress in these sectors

• take care of the « coherent positioning » of B2B clients, in order to strength our values

• investigate all « alternative forms » of HoReCa clients, e.g.: resorts & ferries



The marketing plan 2008-2010the B2C business: the non-conventional marketing

first of all it will be necessary to increase the number of prospects, coherently with the positioning and the settled target. Few marketing activities have been retained with different missions: qualitative, quantitative, manifest, informal,…

TRIBAL MARKETING VIRAL MARKETING STREET MARKETING BUZZ MARKETING

increase purchasers numerical

THEME EVENTS COMMUNITY & CLUB ORDER or XMAS GIFTS NEWSLETTER

increase purchases frequency

it will be strategic to increase the frequency of contacts during the year, strengthening the sense of community

CROSS SELLING UP SELLING

increase purchase values

in order to analyze the consumer habits, it will be necessary to well track their purchase choices.

These will be easier thanks to the eCommerce

in the consumer market three dimensions have been analyzed:



The marketing plan 2008-2010the Communication plan

20082008 20092009 20102010

1Q1Q 2Q2Q 3Q3Q 4Q4Q 1Q1Q 2Q2Q 3Q3Q 4Q4Q 1Q1Q 2Q2Q 3Q3Q 4Q4Q

Communication & CRM activities

- website/blog and eCommerce

- EDM m@ils

- ADwords

Communication & CRM activities

- website/blog and eCommerce

- EDM m@ils

- ADwords

Wine tasting events

- "open/exclusive wine tasting "

- "home wine parties"

- "sponsoring wine events"

Wine tasting events

- "open/exclusive wine tasting "

- "home wine parties"

- "sponsoring wine events"

PR and Media relations

- street marketing "ATMOsfera®"

- PR & Media relations

- "press event"

PR and Media relations

- street marketing "ATMOsfera®"

- PR & Media relations

- "press event"

PLANNING

8.000€5.000€

2.000€

2.500€

250€

250€

4.000€

2.500€

35.000€

5.000€



The 2010 figures and profit analysisP&L main figures

B2B B2C TOT B2B B2C TOT B2B B2C TOT B2B B2C TOT62% 38% 58% 42% 53% 47% 47% 53%

turnover 180 000 € 90 000 € 290 000 € 249 480 € 178 400 € 427 880 € 346 097 € 305 863 € 651 959 € 477 816 € 531 970 € 1 009 786 €

# customers 25 300 30 450 36 675 43 1 013

"balance" new customers 5 150 6 225 7 338

B2C to be contacted 300 450 676

n. bottles / year 800 30 840 32 882 35 926 38

total bottles / year 20 000 9 000 29 000 25 200 14 400 39 600 31 752 23 625 55 377 39 818 38 494 78 312

medium price 9,0 € 10,0 € 9,9 € 11,0 € 10,9 € 12,1 € 12,0 € 13,3 €

product costs 70% 203 000 € 70% 285 516 € 70% 442 372 € 70% 692 850 €

GROSS MARGIN 30% 87 000 € 30% 122 364 € 30% 189 588 € 30% 296 936 €

logistic costs 6% 17 400 € 6% 25 673 € 6% 39 118 € 6% 60 587 €

HR expenses 1 000 € 36 000 € 1 200 € 43 200 € 2 280 € 82 080 € 3 420 € 123 120 €

events costs 4 500 € 10 000 € 20 750 € 28 750 €

rent location 1 200 € 14 400 € 2 400 € 28 800 € 2 520 € 30 240 € 2 646 € 31 752 €

advertising costs 12 000 € 9 000 € 10 000 € 10 000 €

web expenses 0 € 8 000 € 5 500 € 4 000 €

PR agency fee 0 € 0 € 0 € 35 000 €

divers costs 2 700 € 2 700 € 2 700 € 2 700 €

NET PROFIT 0 € -5 009 € -800 € 1 027 €

LRP2008 - 10 BEVIBENE srl

R2007 F2010B2008 F2009



nunc est bibendum

[Orazio, Carm. 1,37]



Appendix



Market analysisthe wine distribution channel

Large stores growth(12 months at Sept 2007)

• different store format with different customers' value perception [1]

• large stores: large range of products and high price convenience• grocery and small markets: less value adding, convenience but lower range of products• wine-shops: qualified channel, shop experience, professional advices

• continuous growth of the "large store" sales




Market analysisthe market trends

the last track of the Italian wine production is in continuous growth

the Italian market is one of the biggest in the World and is a "mature market"




Market analysisthe customers habits and needs

charts of the import-export balance of the main wine commercial partner countries

PortogalloPortugal




wineshop

internet

grocery

wine-barmailing

television

large stores

experience / knowledge

cho

ice

/ co

mfo

rt

The SWOT analysisthe Critical Success Factors

positioningpositioning



The marketing plan 2008-2010the targeting

@homeconsumers

wine lovers

"fashion victims"



The marketing plan 2008-2010the « Univers of meanings » : the memories

community meeting

take care of ourselves

oenology interest

couple experience

private moment

friendship experience

non expensive pleasure

gifts

moment ofsocial life

professional interest

wide winetradition

prepare a special occasion

wine culture& values

wines knowledge

increase hobby expertise



The marketing plan 2008-2010the brand meanings

peaceful momentknowledge

development

community environment

wine pleasure



The marketing plan 2008-2010the new location

location: a warm presence of wines, a use of warm materials as wood, carpets and bricks and a fine use of lights



The marketing plan 2008-2010the new logo

the new logo

the inserted symbol is considered interesting, elegant, always up to date and, like wine, heritage of a cultural patrimony, being an ancient typographical symbol.

It is mostly the message this symbol brings about that really seduced us, in fact it represents a simple and well recognizable shape at the same time both a bunch of grapes and a heart. The two shapes are deeply present in ourselves and immediately recognizable. Therefore they awake in the observer their positive message, namely “the passion for wine”, trying to associate to the logo a new dimension, more evocative than representative.

the new baseline

the promise should be represented here joining two strategical brand meanings: the wine knowledge and all the traditions of wine culture (all values patrimony of the sommelier) and the enjoyable exeprience of our own wine cellar.

[1] "your cellar sommelier"




targets examples insights

approach Group Hotels buyers, trying to propose a "unexplored way in wine" with:

- wine tasting courses for staff

- wine tasting events for clients

- wine aperitifs for clients

- wine supplier for events

- loyalty programs partnership

- lounge wine POP displays

Accor Group Novotel Mercure Ibis

NH Hotels NH Jolly

Sofitel Hotels SolMeliá Hotels Starhotels

others Hotels in Milan and province

48 cities, 59 hotels 8 hotels just in Milan

32 cities, 53 hotels 9 hotels just in Milan

5 cities, 5 hotels 5 cities, 5 hotels 17 cities, 22 hotels

around than 150 hotels

only 3, 4 and 5 stars

hotel chains

[1] http://www.expedia.it




targets examples insights

more than 25 golf clubs only in the MI, CO, LC, LO counties

Golf Club Milano Golf Club Monticello Golf Club La Pinetina Golf Club Villa d'Este Golf Club Barlassina …

a big golf club has 1.000 members

a medium one has 400 members

contest sponsorship cost is 3.000€ / 5.000€

golf clubs

Harbour Sporting Club Tennis Club Milano Canottieri Olona Canottieri Milano GetFit, Vico, Conti,…

the membership is around 500/1.000 people

sponsorship cost is 2.000€ / 3.000€

other exclusive sport clubs

around 10 exclusive clubs only in Milan downtown

Rotary Clubs Lions Clubs Cultural clubs Bridge clubs airport lounges …

a variable number of prospects from 100 up to 10.000 people

variable costs

"border business"

all potential business linked to the brand values of "sense of community" and/or "culture & knowledge"



Selling through home sales wine tasting parties in order to capitalize on a high qualitative "communities relationship" of the actual clients.

These activities allow to reach a well profiled target segment, proposing to the most loyal B2C customers to join an "Exclusive Wine Club" and, as members of this community, to help Bevibene to enlarge "qualified base".

[budget 250€ / event]

The same target segment could be reached also by the B2B marketing activity by sponsoring golf contests, where the sponsoring assures the possibility to organize wine tasting events in the Club Houses.

[budget 4.000€ / sponsoring]

The marketing plan 2008-2010the B2C business: the tribal marketing



The marketing plan 2008-2010the B2C business: the viral marketing

Search EngineMarketing

Direct EmailsMarketing

ADwords advertising: through search engine website. The adv cost depends on the schedule (which hours, which days,…).Keywords should be strictly or less linked to the wine.Purchase method is by bid.

[budget 2.500€]

new WEBsite / blogeCommerce

Buy profiled mailing list addresses of people who already declared specific interests for related topics.Is a 1to1 marketing activity with high effectiveness level.

by Mindshare, ADPepper, Click.it,…[budget 1€ / email opened]

[budget 8.000€ + 5.000€]



The marketing plan 2008-2010the B2C business: the street marketing

An advertainment event that capitalizes on a exclusive and private wine taste "on the road" to have a sharp impact in specific urban areas: Universities, the Court, the Castle, Brera,…

[budget 1.500€+1.000€ / event]



The marketing plan 2008-2010the B2C business: the buzz marketing

After several years of B2C activities, it will be important to increase the brand awareness on the urban middle class.

This could be also very useful in order to plan a renewing business model in other cities, in the next years.

In order to have a maximum impact on the public opinion, an advocacy/opinion leader strategy has been retained, briefing a cleaver PR Agency who will work to obtain the maximum publicity to the special events (street marketing events, dedicated press events) and to render Bevibene as visible as possible through "fashion & trend flashes" on target magazines, journals and specialized reviews.

[budget 35.000€ / annual fee]

Media consumer

Lifestyle

HoReCa and Food&Beverage

specializednewsmagazines



The marketing plan 2008-2010the B2C business: the experiential marketing

In coherence with the previously mentioned brand meanings, annual wine tasting events should be planned in advance, in order to pursue a real "long journey of knowledge".

first strategically insight: all wine tasting experiences should be taken care of in every aspect

clustering analysis should stimulate new propositions:

- soirées for women

- special events for "expert third ages"

new propositions could be offered to loyal customer

- shipment to "second houses"

- shipment to boats

reward the fidelity of high buyers with order or Xmas gifts



The marketing plan 2008-2010the newsletter

the next wine tasting event teaser

the latest wine news

the community event proposition

sales part

learning part

quarterly frequency

wine knowledge section

oenology vocabulary section

wine cultural section



The 2010 figures and profit analysisthe events figures

# wine-tasting in a month 3

# of participants per events 50

% of new customers per event 25%

% of new customers that make a purchase 20%

% of "old" customers that make a purchase 60%

# of participants per events 50

# of new customers per events 13

# of "old" customers per events 37

# of new customers that make a purchase 2

# of "old" customers that make a purchase 23

# of participants that make a purchase 25

% of participants that make a purchase 50%

Business

bevibene