UNIVERSITY OF WALES

MASTER OF BUSINESS ADMINISTRATION

MODULE: MARKETING MANAGEMENT

ASSIGNMENT

SUBMISSION DEADLINE : JULY 25, 2011

MEGAN LINDO

STU23183

WORD COUNT: 4,117

2

TABLE OF CONTENTS

PAGE

Introduction…………………………………………………………………………………………………………………. 3

PESTLE Analysis ………………………………………………………………………………………………………….. 4

Core Competencies of Diageo …………………………………………………………………………………….. 5-6

Diageo SWOT Analysis …………………………………………………………………………………………………. 6

Competitive Analysis …………………………………………………………………………………………………… 7-9

Description of Brand ……………………………………………………………………………………………………. 9-10

Marketing Objectives ………………………………………………………………………………………………… 10-11

Marketing Plan ……………………………………………………………………………………………………………. 11-19

Marketing Budget ………………………………………………………………………………………………………. 19-21

Appendix …………………………………………………………………………………………………………………….. 22-23

Bibliography ……………………………………………………………………………………………………………….. 24-25

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INTRODUCTION

The alcohol industry has since inception had a love hate relationship with consumers, interest

groups and regulators. Several studies have been conducted on the economic cost and benefit

of the alcohol industry. According to Distilled Spirits Council of the United States, (2010),

“the beverage and alcohol industry contributed over $380 billion to the United States

Economy in 2007”

Correspondingly a United Kingdom study published by the Institute of Alcohol Studies reported

that the alcoholic drink market in the year 2000 exceeded £30 billion and in 2001 £36 billion

was spent on alcohol which represented 5.8% of all consumer expenditure.

This assignment will focus on the launch of Smirnoff Premium Malt Mixed Drinks – Cranberry &

Lime and Blueberry Lemonade flavours in Jamaica. I will outline the strategies and tools that

will be employed in order to achieve a successful launch.

Company Profile

According to Diageo’s Annual Report 2010 (a):

“Diageo PLC is the world’s leading premium drink business operating globally across the

spirit, beer and wine market. It produces and distributes a leading collection of branded

premium spirits, beer and wine. These brands include, Johnnie Walker, Smirnoff,

Baileys, Captain Morgan, J&B, Tanqueray and Guinness. Diageo also has distribution

rights for Jose Cuvero brands in North America and many other markets.

Diageo’s strategy is to deliver sustainable organic growth through the stewardship of

their outstanding range of premium drinks. This is supported by strong financial

discipline and cash management, where appropriate will be supplemented by selective

acquisitions.”

4

PESTLE Analysis – Jamaica

Jamaica is third largest island in the Caribbean Sea, with a population of 2.7 million inhabitants.

It is the largest English speaking island in the Caribbean. The island is divided into 14 parishes

with Kingston being the capital. The country’s political system is democratically stable with

general elections being held as constitutionally due every 5 years.

Political Economic

Social

Stable democratic government.

Government tendency to impose taxation on alcohol to close budgetary gaps.

Stringent IMF regulations due to 27 month agreement with Jamaican Government.

Unemployment rate in Jamaica is 9.5%.

Country is still recovering from global recession.

Government in 2010 recalled high priced bonds.

61% of Jamaicans reside in urban areas.

Culture and music strongly influence the Jamaican society.

Musicans and athletes are seen as role models.

Technological Legal Environment

Mobile penetration in Jamaica exceeds 110%.

Three mobile companies operating in the country.

Digital cable and internet service are available islandwide.

Legal drinking age in Jamaica is 18 years. However law is rarely enforced.

Local alcohol and beverage assocation recently developed a code of conduct for advertizing and redution of harmful use of alcohol.

National Environment & Planning Agency regulates the natural resources of Jamaica.

Diageo Jamaica became ISO 14001 certified in 2006.

Certification demonstrates company has taken steps to minimize impact of their operations on the environment.

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Core Competencies of Diageo

Diageo’s 2010 Annual Report (b) highlight the fact that:

“Diageo is one of the small number of premium drinks companies that operate globally

across spirits, beer and wine. It is the leading premiums spirits business in the world by

volume, net sales and by operating profit”.

Below I will seek to outline and explore the core competencies of Diageo.

Brand Strength

Diageo has 14 strategic brands, eight of which, according to the Impact Databank (2011), are

among the leading top 20 premium spirit in the world by volume. Smirnoff Vodka is the world’s

number one premium spirit by volume, Diageo, 2011 and with this developed market, the

launch of the Smirnoff Premium Malt Mixes line in Jamaica will capitalize on its success by

providing its loyal consumers with a new way to enjoy Smirnoff.

Marketing

“Effective Marketing at Diageo is the key to driving growth in both developed and

emerging markets”, Diageo, (2011).

The company utilizes economies of scale for marketing and in 2010, invested £813M worldwide

in marketing. The financial strength of the company allows it to advertize across various

mediums and platforms by using innovative ways to reach its customers.

Innovation

Diageo strives to bring new premium spirits to its consumers through improvements and

innovative products. Innovation is used to maintain consumer interests in developed markets

and keep existing brands fresh and in tune with consumer demands. Innovation is seen as one

of the core competencies that will drive growth within the company.

6

Logistics

With locations in 180 countries, Diageo has to ensure that their products are readily available to

customers and consumers in a timely manner. A network of distribution centres and distilleries

which are strategically located enables the company to reach emerging and mature markets.

Best practices are replicated worldwide to ensure that customers and consumers are better

served.

Diageo SWOT Analysis

The SWOT Analysis for Diageo is presented below and the preceding Situational Analysis will

provide the basis for the strategies, goals and objectives that will be used to launch the

Smirnoff Blueberry & Lemonade and Cranberry & Lime Malt Mixed drinks in Jamaica.

INTE

RN

AL

Strengths

Significant brand strength in premiums spirit market

Innovation

Logistics

Weakness

Worldwide legal exposure

Economic recession

EXTE

RN

AL

Opportunities

Acquisitions

Strategic alliances

Threats

Tonic wines and energy drinks.

Taxation on pure alcohol

Unregulated operations

Cheap substitutes

Competitive Analysis

The flavoured alcoholic drink market in Jamaica is very competitive. The Smirnoff Malt Mixes

will have to compete with the growing Tonic Wine and Energy drink market. Tonic Wines are

alcoholic beverages which have been fortified with iron and vitamins. These wines are

marketed as having aphrodisiac and energizing qualities. Their ingredients are derived from

alleged sexual performance enhancing plants such as ginseng, sarsaparilla and maca root.

7

Brands such as Magnum, Boom, Red Bull, Taboo, Mandingo and Real Vibes Tonic wines have

been growing their brands in spite of the recession. Diageo Jamaica in a Gleaner (2010) article

acknowledged their impact on their sales as tonic wines and energy drinks are not subjected to

the same level as taxation as beer and other alcoholic spirits.

In order to compete successfully in this market Diageo Jamaica will have to employ a product

differentiation strategy, through clever marketing and capitalizing on the Smirnoff brand

strength. Consumers can become attached to the brand by its different attributes which will

eventually reduce the threat of substitutes.

PORTERS 5 FORCES COMPETITIVE ANALYSIS

OF THE JAMAICAN FLAVOURED ALCOHOLIC DRINK MARKET

Competitive Rivalry

Four main competitiors, all locally owned.

High cost of leaving market.

Low product differentiation.

Threats of New Entrants

Low Barrier to entry.

Some economies of scale for large companies.

Low Loyalty of consumers.

Low taxation on Tonic Wines and energy drinks.

Power of Buyers

Small number of buyers.

Low brand loyalty.

Consumers are price sensitive.

Low switching cost.

Threats of Substitutes

Cheaper imports.

Unregistered manufacturers.

Supplier Power

Suppliers of ingredients are local farmers who are not very organized.

High switching cost to import ingredients.

8

Summary

Threats of New Entry

The government provides incentives to entrepreneurs, the Jamaica Promotions

Corporation (JAMPRO 2011), website lists investment incentives, such as the

Modernization of Industry Programme, which exempts investors from the 17.5%

General Consumption Tax (GCT) on the acquisition of machinery and equipment directly

related to the manufacturing process.

A large competitor will benefit from economies of scale as they are able to absorb

overhead costs.

Supplier Power

The suppliers are not very organized as they are made up of local farmers. The recessionary

conditions in the country do not place them in a position of power. Manufacturers could source

ingredients overseas if suppliers threaten to raise prices.

Power of Buyers

Based on the population size of Jamaica, the consumer market for alcoholic beverages is

small.

Consumers are price sensitive due to recessionary conditions of country.

The cost of switching to another similar product is low, as Tonic Wines and Energy drinks

similarly priced.

Competitive Rivalry

There are four main competitors in the Tonic Wine and Energy drink market three are

locally owned.

Products are only differentiated on perception.

The initial outlay to invest in plant, equipment and machinery would result in a high cost

to leave the market.

9

Threats of Substitutes

Low cost imitations and cheap imports pose a potential threat to the Jamaican market.

Back yard industries may also seek to capitalize on the boom in the market.

DESCRIPTION OF BRAND

Smirnoff Blueberry & Lemonade

Figure 1

copyright@2010, Smirnoff Co.

Packaged in clear 12oz glass bottles, each of these 5.8% ABV drinks contains one serving. The

Smirnoff Blueberry & Lemonade Premium Malt Mix content is pale yellow in colour, creating

the image of Lemonade in the consumers mind.

The Smirnoff brand logo is boldly placed above the name of the drink. The silver eagle logo is

strategically placed at the centre of the neck of the bottle just below the rim. This is in keeping

with the original design of Smirnoff Vodka. The lettering printed in silver, is similar to that of

Smirnoff Vodka.

10

Smirnoff Cranberry & Lime

Figure II

copyright@2010, Smirnoff Co.

Smirnoff Cranberry & Lime Premium Malt Mix is a burst of cranberry with a hint of lime. Also

bottled in clear 12oz glass bottles, this 5.8% ABV drink is deep red in colour similar to that of a

ripened Cranberry.

Logo branding will be similar to that of the Smirnoff Blueberry & Lime.

MARKETING OBJECTIVES

Marketing objectives are clearly defined goals that a business intends to achieve over a set

period of time. The marketing objectives of Diageo Jamaica for Smirnoff Blueberry & Lemonade

and Smirnoff Cranberry & Lime are outlined below:

Objective 1

To gain 15% of the flavoured drink market in Jamaica by June 2012.

11

Objective 2

To improve upon the Smirnoff brand awareness in Jamaica. This will be achieved through

promotions, sponsorships and advertizing to maintain a high visibility of the product. By June

2012, Smirnoff through its Blueberry & Lemonade and Cranberry & Lime extensions will align its

self to entertainment events, such as concerts, summer parties and co-sponsorship of high

profile sporting events.

Objective 3

Maintain a competitive edge through constant visibility in liquor stores, bars and supermarkets.

Products must be available to distributors within two (2) days of the receipt of an order. A

strategically placed merchandizing team will ensure that our products are well placed in these

retail outlets. This will be reviewed every quarter in order to address any shortfall in attaining

this objective.

MARKETING PLAN

Market Segmentation & Target Market

Market Segmentation is defined by Kotler (2000) as:

“A large identifiable group within a market with similar wants, purchasing power,

geographical location, buying attitude or buying habits.”

The market segment identified by Diageo were consumers of tonic wines and energy drinks

between the ages of 21-55 who regularly attended entertainment and sporting events.

By identifying the market segment in Jamaica that would be pursued, Diageo will be able to fine

tune its product pricing, promotional, communication channels, distribution and branding.

A market research was conducted in the segment using a questionnaire that sought to capture

the brand perception, demographics, geographic and buying profile of the consumers. A

sample of the questionnaire can be viewed at Appendix I.

12

These questionnaires were administered in the parish capitals of Kingston & St. Andrew, St.

Catherine, St. James, Clarendon and Manchester. These parishes were chosen as they have the

highest concentration of the island’s population, STATIN (2010).

This target market is attractive to the Smirnoff brand as the data collected showed that they

were not loyal to any brand and based their purchases on value for money and availability of

the product. The switching cost would be minimal to the target market as it is the intention of

Diageo to price this product at the markets’ median.

POSITIONING & DIFFERENTIATION

Product Positioning

Product positioning is closely related to market segment focus. Smirnoff Blueberry &

Lemonade and Smirnoff Cranberry & Lime Malt Mixed drinks should be perceived as an

extension of the world leading brand Smirnoff. The product will be positioned as offering a

better experience than those of Tonic Wines and energy drinks which are marketed to appeal

to the base sexual instincts of the Jamaican consumers.

The Smirnoff Premium Malt Mixes product positioning statement will outline the segment,

target market, brand name and the statement of primary differentiation. The purpose of

developing a product positioning statement according to Weiner (2007) is to:

“form the basis on which the marketing mix can be developed, because the key point to

differentiation would be clear.”

A perceptual map was used to analyze how the Smirnoff Premium Malt Mixes should be

positioned in the market. Data used was gathered from the questionnaires administered to the

target market.

13

PERCEPTUAL MAP OF

THE FLAVOURED ALCOHOLIC DRINK MARKET

High Quality

PR

EM

IU

M

Red Bull

Magnum

Boom

Mandingo

BU

DG

ET

Taboo

Real Vibes Party Wine

Low Quality

The above map indicates that consumers were of the perception that Red Bull, Magnum and

Boom were of high quality for which they paid a premium price. This segment of the market is

where the Smirnoff Premium Malt Mixes will be positioned. Based on an analysis of the

perceptual map the following positioning statement was developed:

Positioning Statement

“For flavoured alcoholic drink consumers, aged 21-55, Smirnoff Premium Malt Mixes is a

crisp premium quality drink for the confident consumer whose ability is not defined by a

drink.”

14

This position statement indicates that the brand is of a high quality and would not be appealing

to the base sexual instinct of Jamaicans, who are lured to the Tonic Wines and energy drinks by

promises of high sexual performance and endurance. The mixes will be perceived as being

high quality premium drinks, which are to be consumed by confident and discerning

consumers. The brand will be positioned in the premium segment of the market. It will not be

the most expensive, however, based on perceived quality it will be able to compete effectively

with Red Bull and Magnum.

MARKETING MIX

Kotler, (2001), defines the marketing mix as:

“the set of marketing tools that a firm uses to pursue its marketing objectives in

the target market.”

Product Packaging

The Smirnoff Blueberry & Lemonade and Smirnoff Cranberry & Lime will be available to the

market in 12oz clear single serve glass bottles. The product will be marketed in:

Six packs

Case s of 24

Variety Six Pack - containing the two Smirnoff Premium Malted Mixes and two Smirnoff

Ice flavours on the market.

The combination with Smirnoff Ice is a strategic means of introducing the brand to already loyal

Smirnoff Ice customers.

The product will be manufactured locally by Diageo using their Smirnoff Ice bottling line which

would not require conversion for this new product.

Product Services & Warranties

The current customer service department call centre team members who are already familiar

with other Smirnoff products would be trained in the specifications of this new brand extension

in preparation to respond to orders, queries and complaints.

15

Warranties covering damaged, expired or returned products will be addressed in line with

Diageo’s complaints and returns policy.

Price

In determining the price of the Smirnoff Premium Malt Mixes a telephone survey was

conducted of competitor prices on the Jamaican market. Interviews were conducted with two

major liquor retailers in the island, Savemore Wholesale & Retail Supercentre and Mary

Brown’s Corner Liquor Store, the findings were as follows:

MARKET SURVEY RESULTS OF COMPETITOR PRICING

Brand Average Single Drink Price Average Price - Case of 24

Red Bull

$167.00

$4,007.00

Magnum

$151.88

$3,645.00

Smirnoff Ice

$123.21

$2,957.00

Mandingo

$130.96

$3,143.00

Taboo

$115.21

$2,758.00

The above prices include a retailer mark up of 1.7%. Diageo Jamaica, Distribution Centre

Manager, Karen Matthews, in a telephone interview advised that the company retails a case of

24 Smirnoff Ice drinks at a of cost $2,910.00 This type of fixed pricing arrangement makes it

possible for the company to distribute its drinks just 1.7% below the retail price and ensure a

fixed price by all retailers.

Both Mixes will be retailed for $121.25 per bottle. This pricing strategy is to ensure that it does

not compete on price with the already established Smirnoff Ice drinks. The pricing will also

position the brand in consumers mind that the product is similar to Smirnoff Ice.

Discounts

Diageo Jamaica’s, Distribution Centre Manager, Karen Matthews, advised during our telephone

interview that the company does not offer volume discounts (Matthews, 2011). She said these

16

are provided through the type of customer service offered. Customers who purchase products

from their Distribution centres are provided with free transportation. This eliminates the need

to mark up the product to recover for the cost paid for transportation.

Credit Terms

Credit terms will be in accordance with Diageo Jamaica established credit policy.

PROMOTION

Sales Promotion is defined by business.dictionary.com as a:

“Stimulation of sales achieved through contests, demonstrations, discounts, exhibitions

or trade shows, games giveaways, point of sale displays and merchandizing”.

The objective of the sales promotion for the Smirnoff Premium Malt Mixes will be to pull

consumers to the product. This will be achieved through store sampling, giveaways, creative

merchandizing, in store branding and new media marketing. The purchase of alcoholic

beverages is usually increased during the Christmas season, and in order to capitalize upon this

sales promotion activities will be increased by 50% during the season.

In Store Sampling

In store samplings will be conducted on the last Saturday of each month between the hours of

1:00 p.m. – 5:30 p.m. The day and time is strategically selected to coincide with the payment of

monthly salaries. Jamaicans tend to shop on this day between the hours given above.

Promotions will be conducted within the largest supermarkets and liquor stores in the parish

capitals of Kingston & St. Andrew, Clarendon, St. Catherine, Manchester and St. James.

Give-Aways

For the first two months of the launch customers will receive a free sample of the mixes when

they purchase any of the two Smirnoff malt mixes.

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Creative Merchandizing

A Smirnoff Party Pack which will consist of two bottles of Smirnoff Blueberry & Lemonade and

Cranberry & Lime along with Smirnoff Ice Black and Red will be offered at a discounted price to

purchasers for the first 6 months of the launch.

In Store Branding

In store branding at Supermarkets, bars, wholesales and liquor stores using attractive,

informative and well positioned displays will be used to convey to consumers the Smirnoff

experience.

New Media

Facebook and Twitter accounts will be established specifically for the mixes and will be used to

inform consumers about brand sponsored entertainment events, receive feedback from

consumers on the products and allow participation in promotional events.

Advertizing

Electronic, print and digital advertizing will be utilized in the promotion of these mixes. The RJR

Communication Group, which has a 57.1%, RJR (2010) market share of the radio and television

market will be utilized to broadcast, three 30 seconds advertisements of the product. These

will be broadcasted three times daily excluding Sundays during the 2-5 p.m. slots on radio and

transmitted during primetime, that is, 7-9 p.m. on television.

During the launch month 100,000 Glossy Inserts will be placed in the Gleaner on Sundays, when

readership is at its highest, these will be equally divided among the five main target parishes. A

promotional colour Advertorial will be placed in the Sunday Gleaner. Newspaper

advertisements will be placed fortnightly during the year in the Gleaner.

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PLACE

MAP OF JAMAICA

An inclusive distribution strategy is employed by Diageo Jamaica which allows the company to

have their products available to customers when needed. There are four distribution hubs on

the island, these are strategically located in Kingston & St. Andrew, St. Ann, Manchester and St.

James. This network provides island wide coverage and allows the company to reach customers

where ever they are on the island. The company also provides free transportation to customers

who are within the parishes where their distribution centres are located.

Inventory management and reverse logistics will be in keeping with Diageo’s established

policies.

GLOBAL & E BUSINESS

The launch of any business globally has to take into consideration several factors. Some of

these factors are the culture of the country, regulations governing foreign investment, the

country’s economy and the stability of the political structure.

The Smirnoff Premium Malted Mixes could be expanded into the Caribbean region to Trinidad

& Tobago and Barbados two countries who are members of the Caribbean Community.

19

According to CARICOM (2011)

“Caricom is an acronym for Caribbean Community which consists of 15 members

Caribbean nations, whose main purpose is to promote economic integration….. The

CARICOM Single Market and Economy (CSME) is a programme established by CARICOM

to work towards a single market and economy in the Caribbean region”.

This programme allows the free movement of goods and services with limited rates of duties

being applied to products imported from member countries.

These two islands were selected based on their population size and economy.

“Trinidad & Tobago has a population size of 1.3 million people with an economic

growth of 2.5%. …….Barbados population is 288,00 people with an economic growth of

0.7%, USA State Department, (2011).,

In order to enter these markets Diageo should employ the market entry strategy of indirect

exporting, using local distributors who would be retained on renewable distribution

agreements. Local distributors are familiar with the social, economic, technological and

political capabilities and constraints of their country. These types of strategic alliances would

eliminate the hurdles that Diageo would encounter if they sought to invest directly in these

countries.

E-business

Smirnoff.com could be redesigned to accommodate ordering, billing and tracking of shipments

from Jamaica into the region. This would eliminate the need for an office in each of these

locales. The website would also provide a means for consumers in these countries to

participate in the Smirnoff experience, accessing information on products and participate in

regional sales promotions.

MARKETING BUDGET

A marketing budget is an estimate of all the costs that will be incurred to successfully launch a

product. The marketing budget for the Smirnoff Premium Malt Mixes will be for the period

July 2011 to June 2012 will be $20 million Jamaica dollars. The allocated amount will be

expended as outlined in below:

SMIRNOFF PREMIUM MIXES BUDGET

21-Jul-11

All figures quoted in Jamaican dollars (£1.00 = JMD135.73)

JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUNE Total Personnel

Salary for Marketing Assistant 125,000 125,000 125,000 125,000 125,000 133,750 133,750 133,750 133,750 133,750 133,750 133,750 $1,552,500

Benefits (Health Insurance & Pension) 12,500 12,500 12,500 12,500 12,500 13,375 13,375 13,375 13,375 13,375 13,375 13,375 155,250

Payroll taxes (29%) 36,250 36,250 36,250 36,250 36,250 38,788 38,788 38,788 38,788 38,788 38,788 38,788 450,225

Personnel Total $173,750 $173,750 $173,750 $173,750 $173,750 $185,913 $185,913 $185,913 $185,913 $185,913 $185,913 $185,913 $2,157,975

Market Research

Primary research ($20,000 per day for 6 days) 120,000 120,000 $240,000

Secondary research 0

Market Research Total $120,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $120,000 $240,000

Marketing Communications

Newspaper Advertizing 551,620 126,480 126,480 126,480 126,480 551,620 126,480 126,480 126,480 126,480 126,480 126,480 $2,368,040

Television Advertizing 350,000 350,000 350,000 350,000 350,000 350,000 350,000 350,000 350,000 350,000 350,000 350,000 4,200,000

Radio Advertizing (4560 per 30 sec ad) 328,320 328,320 328,320 328,320 328,320 656,640 328,320 328,320 328,320 328,320 328,320 328,320 4,268,160

Newspaper Advertorial 29,430 29,430

Website upgrade 100,000 100,000

Events Sponsorship 1,000,000 1,000,000 2,000,000

Sales Promotions 300,000 300,000 300,000 300,000 300,000 800,000 100,000 100,000 100,000 100,000 100,000 100,000 2,900,000

Marketing Communications Total $1,659,370 $2,104,800 $1,104,800 $1,104,800 $1,104,800 $3,358,260 $904,800 $904,800 $904,800 $904,800 $904,800 $904,800 $15,865,630

Channels

Channel communications and training 100,000 $100,000

Channels Total $100,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $100,000

Other

Postage 10,000 20,000 $30,000

Misc Expense 10,000 10,000

Travel 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 360,000

Other Total $50,000 $30,000 $30,000 $30,000 $30,000 $50,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $400,000

Total Marketing Budget $2,124,620 $2,330,050 $1,330,050 $1,330,050 $1,330,050 $3,614,798 $1,153,416 $1,166,340 $1,180,169 $1,194,965 $1,210,798 $1,347,738 $18,673,605.00

Budget Summary

Marketing Assistant under the guidance of Marketing Manager would oversee launch of

product. Salary for Assistant is debited from budget. Payroll taxes in Jamaica total 29%,

that is Income Tax – 25%, National Insurance Scheme – 2% and Education Tax – 2%.

Pension and health insurance represents 10% of salary. A 7% salary increase projected

in January 2012.

Advertizing account for the bulk of the budget approximately 22% of the amount

allocated.

Newspaper advertizing consist of 100,000 glossy inserts at a cost of $2,600 per

thousand;

3 monthly 3 column x 15cm black and white ads @ $31,620 each and

on full page colour ad @ $164,780.00

Television advertising package of $350,000 per month which includes 30 prime time

spots.

One colour promotional Advertorial @ $29,430.

Three sales promotion events will take place simultaneously in the 5 target parishes.

amount includes salary and cost of giveaways.

Radio advertising – 30 seconds ad priced @ $4,560.00 per advertisement.

Co-sponsorship amount for a yet to be identified summer party.

Website upgrade to include brand extension.

Training for Customer Service Representatives and contract sales promotion team.

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Appendix 1

Sample Questionnaire

We are seeking to conduct a Market Research into the alcoholic beverage preference of

consumers. We ask that you take 5 minutes out of your busy schedule to complete this

questionnaire. Your responses will remain confidential and we ask that you do not include your

name on the form. Please circle the appropriate response to the questions.

1. In which age range do you fall?

18-25

26-30

31-35

36-40

40-45

46-50

51-55

2. Are you:

Male

Female

3. How often do you purchase alcoholic beverages?

Once weekly

Twice Weekly

More than 5 times during the week

4. Where do you make your purchases?

Parties

Bars

Supermarket

Sporting Events

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5. What is your favourite alcoholic drink?

Magnum

Boom

Mandingo

Real Vibes

Taboo

No real favourite

6. What influences your buying decision?

Price

Quality

Flavour

Availability

7. Which of the following provides greater value for money? Please rate starting from 1-5

with 1 being the greater value for money.

Magnum

Boom

Mandingo

Real Vibes

Taboo

8. What attracts you to your favourite alcoholic beverage?

Price

Quality

Availability

Advertisement

9. What image comes to mind when you think of the Brand Smirnoff?

Quality

Excellent Taste

High Price

Low Price

THANK YOU!!!

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