Student Sample Report MKT 10007 Assignment 2A Part A Exemplar Final PDF

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Swinburne Online MKT10007

Student name (number) Assignment 2A Student name Student number

Swinburne Online 202X X Teaching Peri riod od X, 202

MKT10007 Fundamentals of Marketing

Assignment 2A: Brand analysis

Due date: XX Month 202X

Date submitted: XX Month 202X Word count: XXXX words

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Table of contents 1.0 Introduction ........................................................................................................................... 3 2.0 Summary of the brand ......................................................................................................... 4 3.0 Analysis of micro and macro environmental factors ....................................................... 7 4.0 Positioning map .................................................................................................................... 7 5.0 A persona of a target consumer ....................................................................................... 10 6.0 Triggering need recognition ............................................................................................. 11 7.0 Conclusion .......................................................................................................................... 12 8.0 Referencing ........................................................................................................................ 13

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1.0 Introduction Every brand has a significant impact on several aspects of a business. Brand analysis is therefore, an important step to assessing the market position of a business. This report will undertake a marketing intelligence analysis on the existing market for Smirnoff Ice Double Black, a premium premixed ready to drink alcoholic beverage.

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2.0 Summary of the brand 2.1 Market Overview The ready-to-drink mixed spirit market was expected to grow at an annual rate of 1.1% to reach $1.05 billion by 2020. This industry had a moderate level of market share concentration, with the top four producers contributing approximately 52% of industry revenue (Reeves 2020).

Fig. 1 Source: IBIS World Fig. 2 Source: IBIS World

Smirnoff Ice Double Black is one of the best-selling RTD brands in Australia and belongs to Diageo Australia Limited. Diageo holds 22.9% of the market share (IBISWorld 2020) and its industry-specific revenue is expected to grow at an annualised 2.5% over the five years through 2019-20, to $241.5 million (MCAAY 2017). The Diageo Group’s portfolio of offerings is shown in the figure below.

Fig. 3 Source: Google images

The Diageo Group

Fig. 4 Source: Diageo

Whisky

Other Whisky Bulleit, Crown Royal

Black & White, Buchanan’s, J&B, Johnnie Walker, The Singleton Talisker, Windsor Johnnie Walker & Cola, Johnnie & Ginger

Vodka

Rum

Liqueur

Captain Morgan, Bundaberg, Ron Zacapa Baileys

Cîroc, Ketel, Smirnoff Smirnoff Ice, Smirnoff Pure, Smirnoff Seltzer

Bundaberg Rum & Cola

Tequila

Casamigos, Don Julio

Local Spirits

Gin

Beer

McDowell’s, Shui Jing Fang, Yeni Raki, Ypióca Gordon’s, Tanqueray

Tanqueray & Tonic, Gordon’s & Tonic, Gordon’s & Soda

Guinness

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2.2 Marketing Mix 2.2.1 Product The product is a blend of triple distilled vodka and tangy citrus flavoured soda that is sold both, in cans of 375 ml and bottles of 300 ml. The cans are available in packs of 4 or 10, while bottles are available in a pack of 4 or a case of 24. The Smirnoff Ice Double Black can be classified as a convenience product (Lamb et al. 2018). Products comprise of more than just the tangible components and can be analysed at three distinct levels. Core The core offering of the product is the actual experience of enjoying and having a great time. This is also evident from the product’s tagline Arrive Boldly. The product communicates the feeling consumers get when they make a bold arrival, and ultimately shows how they can be confident, break free from judgement and step up (Campaign Brief 2020). Actual The actual aspects of the product are the bottles, the packaging, and the drink itself. The well-known brand name and distinct logo make it instantly recognisable; besides, the drink in a distinct beer-like bottle is tasty and easy to drink on less mature taste palettes. Augmented The augmented product is included in their packaging, with competitions such as the ‘Scratch & Win’ promotions. There is also a money back guarantee if the customer is not satisfied, and Drink.Wise.org.au referenced for those needing support.

Fig. 5 Source: Twitter

2.2.2 Price Cans of the product sell at around $28 for a 4-pack and around $50 for a 10-pack (Liquorland 2020). A 4-pack of bottles sells for around $13 while a 24 pack can cost around $ 100 (Dan Murphy‘s 2020). Single cans and bottles are also available from leading retailers and the costs vary between $ 5 and $ 7 per item.

2.2.3 Place The product is available at all leading and small alcoholic beverage retailers throughout Australia including Dan Murphy’s, Liquorland and BWS. Besides, they are also available at all other small and medium retail stores. In the present COVID environment, an increase in online orders has been noted.

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2.2.4 Promotions The top spender in alcohol advertising in 2019 was Diageo (Drinkstrade 2020), with instore promotions made at all leading retailers, while online promotions were made on all alcoholic beverage retailers’ websites.

Fig. 6 Source: Liquorland

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3.0 Analysis of micro and macro environmental factors 3.1 The Micro Environment The microenvironment consists of the actors close to the company that affect its ability to engage and serve its customers— the company, suppliers, marketing intermediaries, customer markets, competitors, and publics (Kotler & Armstrong 2017). 3.1.1 Customers The customers of a product, and their reasons for buying the product plays a large role in how a business approaches the marketing of their products and services to them (Oxford College of Marketing 2020). In the case of Smirnoff Ice Double Black, the primary customers are those in the age bracket of 18 to 24, predominantly young women (Reeves 2020). Social networking has ‘changed the game’ when it comes to opinion sharing, especially with this age group. These consumers can reach many people at once with their views and can respond to brands and events in real time (Lamb et al. 2018). Any adverse impact on the brand is a high risk, and can have a massive social backlash from this highly sensitive demographic, while influencers on social media can convince them to switch brands. Besides, changing spending patterns due to COVID-19 could also be a risk that restricts consumption and thus constrains revenue growth. Product innovations such as RTD cocktails could bring in a new crowd of younger and more sophisticated drinkers. Also, increasing health consciousness around alcoholic beverages in general (Reeves 2020) could provide opportunities for a new range of ‘healthy’ offerings to attract this demographic.

3.2 The Macro Environment The macro environment consists largely of forces, events and relationships in the external environment that are outside of the control of an organisation and may affect its future (Lamb et al. 2018). 3.2.1 Political Factors Marketing decisions are strongly affected by developments in the political environment. Kotler and Armstrong (2017, p.108) define the political environment as one that “consists of laws, government agencies, and pressure groups that influence or limit various organisations and individuals in a given society”. The political environment poses major risks to the stability of Smirnoff Ice Double Black, due to governing body regulations on alcohol availability, supply and tax intervention. Diageo felt the brunt of this in 2008 when the federal government imposed a 70% tax increase on pre-mixed alcoholic drinks (the Alcopops tax) that saw drinks in the RTD category falling for the next several years (Reeves 2020). The situation around COVID-19 has compelled several state governments to restrict operations of retail outlets, as well as restaurants, pubs and bars. This has strongly impacted both, production and sales and is bound to affect the revenue of Diageo’s RTD range, including Smirnoff Ice Double Black (ABA Industry Report 2020). However, the present situation has also provided opportunities. Online experiences for consumers were initiated by Diageo in a partnership with City guide publisher Broadsheet for ‘The Cocktail Show’, on Instagram (Mumbrella 2020). Also, several distillers right across

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Australia switched production from spirits to sanitiser, keeping people in jobs and meeting the needs of essential services (ABA Industry Report 2020).

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4.0 Positioning map Premium 5

Jim Beam White

Bundaberg & Cola

Smirnoff Ice Double Black

High 5 Strength

Low 1 Strength Woodstock Bourbon & Cola

Kristov Cruiser

Bacardi Breezer

Midori

1 Cheap The perceptual map for RTD alcoholic beverages places Smirnoff Ice Double Black as a midstrength drink that is priced at the higher end. In terms of pricing, it is closer to the Bacardi Breezer, although its alcohol content is higher. In terms of alcohol strength, it competes with Bundaberg with Cola and Jim Beam White with Cola (Jones & Barrie 2011). The Smirnoff brand is highly recognised and has a strong reputation in the market. That is also the reason why its consumers are willing to pay a price similar to its other major competitors such as Bacardi and Midori, and higher than other vodka brands such as Kristov.

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5.0 A persona of a target consumer

Personality traits

Demographics

Narrow-minded

Name: MIA Age: 18-24

Open-minded

Introvert

Extrovert

Impulsive

Organised

Agreeable

Conflicting

Emotional

Logical

Sex: Female Work: Part time Status: Single, In relationship Location: Urban Character: Fun loving Fig. 7 Source: Pinterest

Goals

Frustrations

•

Enjoy life to the fullest.

•

Be creative and innovative at work, study and in life.

•

Socialise with friends and have lots of wonderful life experiences.

Brand preferences

•

Restrictions on alcohol consumption.

•

Access to limited finances.

•

Existing RTD drinks can be too strong or too expensive.

Product motivators

Preferred channels

Strength

Traditional Ads

Price

Online & Social Media

Prestige

Referrals & WOM

Fig. 8 Source: Google images

20-year old Mia is one of Smirnoff Ice Double Black’s typical target consumer. She works part time, while studying at University and is typical of those in her age, gender and income group who are price conscious with expectations of best value for money (Lamb et al 2018). Mia is motivated to not spend too much money on a night out yet be able to have a good time. She is happy to consume a drink that is palatable, sweet, and relaxing and in a comfortable space with a recognisable brand that is considered “cool” within her age group. She is strongly motivated by celebrity endorsements, as well as Smirnoff Ice’s social media presence and sponsorships. Mia likes to dress well to impress others, and therefore is influenced by other fashion and popular trends (Reeves 2020).

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Mia, and those in her age group access social media several times a day to not only communicate but also obtain product information, follow brands and share pictures when socialising with friends, especially when consuming food and drinks (Sensis 2018). However, she is frustrated by high prices of alcohol, as well as restrictions on alcohol purchases. The main life goals of Mia are to have fun and enjoy social outings.

6.0 Triggering need recognition The target market for Smirnoff Ice Double Black are individuals who have a need to socialise with friends while relaxing with a drink, either at a bar, pub or at a friend’s place. Smirnoff Ice has ensured that the first step of the CDMP – need recognition – has been soundly identified and catered to, by providing a drink that allies to these needs. The drink is tasty and refreshing, and allows for consumption that meets the target group’s expectations of the alcohol’s strength as well as the product’s price. According to Lamb et al. (2018), the level of involvement in a purchase depends on five factors: previous experience, interest, perceived risk of negative consequences, situation, and social visibility. Using celebrity endorses like American actress Laverne Cox, running campaigns such as “Welcome to the Fun %,”, and with a tagline of Arrive Boldly (Emily Price 2020), the brand ensures that the target group feels a sense of belonging with a bottle of Smirnoff in their hand, and a feeling of confidence.

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7.0 Conclusion This report has considered the target consumers from a micro-environmental perspective, along with the overall market situation at a macro-environmental level. While the brand has ensured that it provides a product that meets the target market’s needs, new trends and the challenges with the present environment could necessitate the need for a new range that caters to these changing needs.

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8.0 Referencing ABA Industry Report 2020, Impact of COVID-19 on the drinks industry, viewed 29 October 2020, Big Commerce 2020, Word of Mouth Marketing in 2020: How to Create a Strategy for Social Media Buzz & Skyrocket Referral Sales, viewed 29 October 2020,

Campaign Brief 2020, Diageo Australia to mark bold arrival of Smirnoff Double Black Vodka, viewed 1 November 2020, Drinkstrade 2020, Australia’s top 3 alcohol advertisers in 2019, viewed 31 October 2020,

Emily Price 2020, Behind The Scenes Of Smirnoff’s New ‘Hang Out From Home For America’ Campaign With Laverne Cox, viewed 7 November 2020,

Figure 1, IBIS World 2020, Major Players, graphic, viewed 28 October 2020,

Figure 2, IBIS World 2020, Products & Services Segmentation, graphic, viewed 28 October 2020, Figure 3, Google Images 2020, Kosher Whisky and Liquour, photograph, viewed 30 October 2020, Figure 4, Diageo 2020, Explore our brands, photograph, viewed 3 November 2020,

Figure 5, Liquorland 2020, image, viewed 3 November 2020,

Figure 6, Twitter 2020, Smirnoff Ghana, photograph, viewed 3 November 2020,

Figure 7, Pinterest 2020, Afropunk, image, viewed 3 November 2020,

Figure 8, Google Images 2020, Multiple images, photographs, viewed 30 October 2020, < https://www.google.com/search?q=premixed+alcoholic+drinks+australia&rlz=1C1CHBF_enGBAU713AU713&hl=en&source=lnms&tbm=isch&sa=X&ved=2ahUKEwj_u7fdo4vtAhVuyzg GHTYxDe8Q_AUoAnoECAUQBA&biw=1366&bih=625> Jones, S. C. and Barrie, L 2011, RTDs in Australia: expensive designer drinks or cheap rocket fuel?, viewed 2 November 2020, Kotler, P.T. and Armstrong, G 2017 Principles of Marketing, Global Edition, Pearson Education Limited, ProQuest Ebook Central, viewed 7 November 2020,

Lamb, C.W., Hair, J.F., McDaniel, C., Summers, J. and Gardiner, M. 2018, MKTG4, 4th ed., Australia: Cengage Learning MCAAY 2017, A GUIDE TO THE ALCOHOL INDUSTRY: Major Alcohol Companies in Australia: Producers and Distributers, viewed 31 October 2020,

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Mumbrella 2020, Broadsheet launches cocktail content series with Diageo, hosted by Alex Dyson, viewed 1 November 2020, Oxford College of Marketing 2014, The Impact of Micro and Macro Environment Factors on Marketing, viewed 1 November 2020,

Reeves, M 2019, RTD Mixed Spirits Production in Australia, viewed 28 October 2020,

Sensis 2018, The must-know stats from the 2018 Yellow Social Media Report, viewed 7 November 2020,...