Sephora to Switzerland Part 2

Sephora to Switzerland Part 2
MKTG 3101 Marketing Plan – Fall 2013

Part II
Product, Price, Place and Promotion Strategy
Identify what stage of the lifecycle the market for your product seems to be in (Chapter 9). How long do you think the market will stay at this stage? How long will it be before the market goes into decline? (Support your answers with data on market trends for this or similar products if possible.)

Product Strategy
Features & Benefits:
Balashi beer brings a taste of the island to our consumers. Balashi’s distinct taste is created by brewing our malt and hops with the saltwater from the island of Aruba. While the malt we use is from Scotland, and the hops from Germany, we brew our beer 100% domestically under our own company. Additionally, you don’t have to worry about artificial additives such as dyes or preservatives; our beer doesn’t add any extra chemicals. When debuting our product in the United States, we plan to uphold the true theme of our beer which is “the true island experience”. Therefore, we find it best to sustain the company logo of our name “Balashi” and our famous picture of Aruba. In order to help build brand equity, it would be in the company’s best interest to make our labels using recycled materials which would be a product modification along with an equity builder. We are an eco-friendly manufacture of beer and we would like to solicit that through our distinctive island beer. Not only will our label be made eco-friendly but our 8oz. bottles as well. Not only will our packaging and labels be green, so will the company.

Product Modifications:
Currently, in Aruba, Balashi sells in a variety of packaging and sizes. We currently sell 8oz. bottles, 8oz mini cans, and 11.27oz cans. They are sold in 6 packs, 25 “half can packs”, and 54 packs. Since this is a beer only exclusive to Aruba it is available in a vast array of options. As a result of the product launch, it would be best to modify the way we sell Balashi. Rather than selling the beer in 8oz cans and bottles in packages ranging from 6 to 54 packs, we would like to launch Balashi in exclusively 12oz. glass bottles. Americans will be able to purchase our eco-friendly homemade beer in 6-packs and 12-packs initially. If an ample amount of sales are being generated, Balashi 24-packs will be brought to the states as well. The market in which we would like to position to would be the lower-middle income, young adults from ages 21-34, relative to our pricing. In addition to bringing the cool, crisp, island taste to the states in our recyclable green glass bottle, we will be selling our Balashi in drafts for the on-premise locations. We would like to debut Balashi to a segment of U.S. states including Florida, California, and Texas. We selected these states on account of their warm climates and popular demand for beer. The warm tropics of Aruba relates to the consumers of these warm, sunny states of the U.S.
Product lifecycle Strategy:

Introduction Growth Maturity Decline
Offer a basic product only available in 12oz. glass bottles upon launch If launch is successful, debut Balashi in additional US states to reach more consumers Abundant sales could allow for the sales of 24,26, and 54 packs & Balashi Beer in cans Cut Sales/manufacturing of packs that aren’t selling
DISTRIBUTION STRATEGY

Customer Needs
The brewery in Aruba will be a silent partner of the introduction of Balashi into the United States because it does not have the capacity to participate in marketing and distribution outside of the island. Once the beer reaches the United States, an independent bottler and distributer will take over. We will need to partner with a company that can bottle the beer. We also need to partner with a distributor in order to ship the beer to the relative channels and areas of consumption.

Distribution Intensity
We will distribute on a selective basis. We will distribute Balashi to large liquor store chains that have a large customer base. We will also provide Balashi to bars in a designated area and it will be there decision whether to purchase and sell Balashi.

Customer Shopping Behavior
The customer will most likely purchase Balashi at a bar or in a liquor store. Customers are most likely to try a new beer at a bar because that would only commit them to that one drink in the event that he or she did not like it. Therefore, bars would be would a great channel to introduce Balashi into the market. On the other hand, employees at liquor stores can provide information to consumers on different drinks available for purchase. This channel would be a good way for consumers to compare Balashi to well known beers. Therefore, liquor stores may provide more information about the new beer, but bars may allow for more purchases.

Recommended Channels
Bars are an ideal distribution channel because they offer free marketing opportunities. If we provide bars with posters to place around the bar, it will create curiosity about the new beer. Furthermore, people are more impulsive in bar settings. They are more likely to try a new drink at a bar rather than purchase an entire case of a beer that they are unfamiliar with. However, individuals will only purchase a few beers at the bar and this limits the consumption of Balashi. In contrast, liquor stores are designed for those that wish to drink at home. Balashi may get lost amongst all of the well known beers in the store. At the same time, liquor stores provide a comparative environment for consumers.

Production
All of the Balashi beer will be produced at the existing brewery in Aruba. However, only the beer will be imported into the United States. The bottling and distribution of the product will be done with American borders. Part of the appeal of Balashi beer is that it is made in a sustainable way. Much of this rests on the seawater distillery stationed on the island. In order to produce the beer in the United States we would have to build a distribution plant as well as a distillery.

Distribution Modifications
It is important that Balashi is offered at bars and because of this it is necessary that Balashi be provided on tap.

Product Lifecycle
Balashi should be introduced to bars in keg and bottled form. Balashi should also be available in liquor stores in a bottled form in small quantities, such as a six and twelve pack. As the popularity of the beer increases, Balashi can be offered at restaurants and be available in cans in addition to bottle. This would allow Balashi to be sold in larger quantities such as twenty-four and thirty-two packs.
PRICING STRATEGY

INTEGRATED MARKETING COMMUNICATIONS STRATEGY

Messaging Strategy
•New Balashi Beer! All natural light Aruba Beer for your quick taste of a vacation.
• "Traha cu awa cristalino di Aruba ... Mihor calidad, Mihor sabor!"
"Brewed with Aruba's pristine Water ... Best quality, Best taste!"

Promotion Mix
•In the means of transportation and distribution, Balashi Beer would like to work with Gold Coast Beverage Distributors (http://www.goldcoastbeverage.com/) as well as their four distributing centers in the Southern Coastal region: Tequesta in Palm Beach County down through Broward County (Fort Lauderdale), covering all of Miami-Dade County, and all the way down to the Florida Keys. Gold Coast services more than 5.6 million people and nearly 10,000 licensed beverage accounts
•Importing the Balashi Beer from Orangjestad, Aruba to Port Everglades, FL in a freight shipping containers will cost:
(estimated cost by http://containers.internationalshippingusa.com/echome.aspx )

Type Quantity Price
D20 1 $2940
D40 1 $4586
•The import dock to the distribution center is approximately 16.2 miles and the number of trucks or trips necessary will be deemed by demand
•The promotional mix will be geared towards a push strategy rather than a pull strategy. Since the US already has a demand for beer, Balashi Beer will not require high advertising costs and consumer promotion, but focus on pushing a sales force and trade promotions through the liquor stores as well various bartenders throughout the states of Florida, Texas, and California.
•A push strategy will be less cost on Balashi
•Advertising for Balashi beer will include in-liquor store prints and utilize Internet pages of bars.
•Sales promotion includes Balashi displays in liquor stores, with no need for discounts or coupons due to the low price.
•Personal selling includes participating in Florida’s beer festivals: (http://www.floridabeerfestivals.com/pages/ohbf_13/ohbf_13.htm, http://beeradvocate.com/events/calendar)
•Public relations for Balashi won’t include press releases, sponsorships, special events, but will include a product Web page in the US.
•Direct Marketing involves carefully targeting individual consumers which Balashi product won’t include catalogs, telephone marketing, kiosks, mobile, and more.

Promotion Modifications
•The target market is relatively young and low income, so the low price of Balashi Beer compared to competitors’ prices will be more attractive to new consumers and competitor’s customers
•Currently a trend of health and fitness within the targeted demographic are factors that should be accounted for while evaluating the socio-economic traits of the market
•Perhaps an emphasize on the sustainable brewery and the eco-friendly glass bottles will fit in as a trendy product