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Gallo Spirit Brands Nick Pitone

Nick Pitone Gallo Pres

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  1. 1. Gallo Spirit Brands Nick Pitone
  2. 2. Project 2 Conduct an in-depth analysis of Gallo Spirit Brands versus competitive brands (top 3) in the following categories: Tequila, Vodka, Rum, and Gin Create ways to build Gallo spirit business in various business aspects: Pricing, Ads, Promotion, P.O.S., store support, etc.
  3. 3. Agenda New Amsterdam Vodka and Competition Competitive Analysis Growth Strategies New Amsterdam Gin and Competition Competitive Analysis Growth Strategies Shellback Rum and Competition Competitive Analysis Growth Strategies Camarena Tequila and Competition Competitive Analysis Growth Strategies
  4. 4. New Amsterdam Vodka In comparison to the competition: #2 Retail Vodka Brand in New Jersey #3 Spirit brand in terms of growth Only other Vodka ahead is Titos Less of a direct competitor Top 10 Vodka Growth Brands: #1 Titos Dollar Change $30,172,506 - % Change 84.3 #2 NAV Dollar Change $19,822,916 - % Change 53.6 #4 Svedka Dollar Change $5,222,497 - % Change 5.8 *Note* Smirnoff and Pinnacle both absent from Top 10 Sources: Gallo Provided 2015 Holiday Focus New Amsterdam PowerPoint
  5. 5. New Amsterdam Vodka In 2014, New Amsterdam Flavors were the most efficient on a Sales/SKU basis 31% of NAV volume is coming from consumers switching from other Vodkas 1 of 3 NAV consumers new to Vodka 1 of 5 NAV consumers new to Spirits Signifies the approachability NAVs marketing has achieved Source: Gallo Provided 2015 Holiday Focus PowerPoint
  6. 6. Growth Strategies Relevance of Social Media (Instagram) 26% of online adults use Instagram, up from 17% in late 2013 Represents largest major social media growth last year The group of 18-29 year olds grew from 37% to 53% in the same time 49% of the total adult Instagram users check at least daily Advantages centered around brand mentions or re-postings on personal networks Potentially large network sizes Ease of sharing within and across social networks Credibility of peer-to-peer information Source: Pew Research Center Social Media Update 2014 Demographics Pew Research Center Social Media Update 2014 Frequency of Social Media Use Psychology & Marketing Creative Strategies in Social Media Marketing (ECU)
  7. 7. How Is New Amsterdam Doing? Numbers for Instagram accounts obtained 7/8/15
  8. 8. Smirnoff Instagram Page
  9. 9. Gain Followers, Generate Content, Benefit from Exposure Provoke Organic Posts Tagging us & using our hashtags #shareyourtown social media campaign Spinoff of the YouTube channel #ItsYourTown series Authenticity When marketers talk about Millennials, the buzzword authenticity is never far behind. Millenials, researchers are convinced, crave authentic products and experiences. Jeff Cioletti Vodka The Beverage Journal
  10. 10. Updated Prizes???
  11. 11. Sample Post
  12. 12. Scratch and Sniff Neckers Pleasant aromatics of New Amsterdam flavors Scratch and Sniff neckers placed on bottles corresponding to provided recipes Physical interaction with consumers 51% of consumers looking for more on-package cocktail recipes or product ideas. Source: Mintel Oxygen White Spirits US November 2014 Issues and Insights
  13. 13. New Amsterdam Gin Competition Direct Seagrams Big category players Bombay Tanqueray
  14. 14. New Amsterdam Gin Top 5 Gin brand in total volume Driving category growth (+3.3%) Volume Change against Last year New Amsterdam +3.3% Seagrams -2.8% Tanqueray+2.9% Bombay +2.0% Gin Category -2.1% Source: New Amsterdam Gin: Driving Category Growth to The Category
  15. 15. Growth Strategies Gin was meant to be mixed, and consumers likely would respond to the addition of cucumber, citrus, herbal flavors, apple and pear, just for a few examples. Positioned to be mixed #MixItUp Accompanied with new drink recipes Support consumer submissions Source: Mintel Oxygen White Spirits US November 2014 Issues and Insights
  16. 16. New Amsterdam Gin Greater emphasis at a distributor level Reinforce brand standards to sales force Incentives for sales reps $10 for every core four specific display in their relative markets -OR- $500, $400, $300 for the 3 largest Gin displays
  17. 17. Shell Back Rum Competition Captain Morgan Bacardi Malibu
  18. 18. Shellback Rum #1 Rum Growth Brand 2014 Rum represents the 3rd largest spirit category Summer represents a pivotal time for rum sales Summer 2014 saw a +51% dollar sales lift Source: Shellback National Focus Summer 2015 Repeat Buyers: Spiced has a higher percentage of repeat buyers than the category leader, Silver has the same as the category leader
  19. 19. Growth Strategies Incentives for tastings Additional amount for reps Specifically during summer Additional POD & Case focuses throughout the calendar year
  20. 20. Shellback Rum What Gallo has already done Disposed of the RIP, implemented a QD Drives competitive shelf retails
  21. 21. Camarena Tequila Competitors: Direct Jose Cuervo Big Category Players Patrn Hornitos
  22. 22. Camarena Tequila 100% Blue Agave This category was +23% in 2014 #2 100% Agave brand #SAVECINCO campaign was extremely successful 86 million consumer impressions Half of all 2014 volume lift credited to the campaign Crafted by 6th Generation Tequila Family Source: Camarena Tequila Gallo Provided (IRI)
  23. 23. Growth Strategies Research shows men ages 22-34 are interested in knowing more about the craftsmanship used by particular white spirits Concept sales force can utilize Interests: Distillation process Country of Origin Promote: Ingredients Production process Unique qualities (aromas, etc.) Source: Mintel Oxygen White Spirits US November 2014
  24. 24. Camarena Tequila Musical motion censored shelf-talker Inspired by New Amsterdam light-up Song taken from Website Content Shelf-talker reinforces the generational element and the 100% Blue Agave aspect
  25. 25. Takeaways New Amsterdam Vodka Social Media campaign Scratch and Sniff neckers New Amsterdam Gin #MixItUp with recipes Incentives for reps (displays) Shellback Rum Incentive for reps (tastings) RIP structure adjustment (done by Gallo) Camarena Tequila Musical shelf-talker Heritage and 100% Agave focus
  26. 26. Questions? Thank you for your time