Promotional Plan - Penfolds Bin 707

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  • Topic: Marketing, Wine, Cabernet Sauvignon
  • Pages : 14 (4472 words )
  • Download(s) : 143
  • Published : March 8, 2010
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Table of Contents
Executive Summary
Marketing Mix – Current & Future………………………… 2 {text:list-item} {text:list-item} {text:list-item}
Environmental Analysis…………………………………. 4 {text:list-item} {text:list-item} {text:list-item} {text:list-item} {text:list-item} Legislations……………………………………………..... 7 Target Market…………………………………………..... 8 {text:list-item} {text:list-item} {text:list-item} {text:list-item} Marketing & Promotional Objectives……….………….11 10.Marketing & Promotional Program………….……….. 11 11.Costs/Budget…………………………………………… 15 12.Schedule/Action Plan………………………………….. 16 Implementation……………………………………….. 16 10.1. Staff………………………………………..…..……………17 10.2. Networks………………………..……………..……….……17 Evaluation……………………………………………….18 Bibliography………………………………………….....19 Product Description

‘Product is a key element in the overall marketing offering. Marketing-mix planning begins with formulating an offering that brings value to target customers. This offering becomes the basis upon which the company builds profitable relationships with customers (Kotler. P, Armstrong. G, pg – 218, 2008).’ 1.1. Features

Penfolds Bin 707 is widely regarded as the 'benchmark' Australian Cabernet Sauvignon. The comparative scarcity of Cabernet Sauvignon of the desired standard sets a limit to the amount of Bin 707 made in any one vintage. Bin 707, a multi region blend, is the cabernet equivalent of Grange. Together, the two wines represent the Penfolds red wine style at its most rich and powerful. Bin 707 seeks to express cabernet in a way that balances flavours derived from concentrated, fully-ripe fruit with equally strong flavours derived from fermentation and maturation for 18 months in new American oak. This results in a wine of big, sometimes immense, structure, ripe, pronounced tannins, sweet, dark berry and dark chocolate fruit laced with liquorice, and smoky oak that is usually swallowed up by the fruit in the wine’s first few years. (Rare Australian Wine, 2009) The antioxidants in red wines have been shown to provide certain health benefits. Antioxidants act like warriors, preventing the oxidation process in which reactive particles known as "free radicals" cause damage to healthy cells. For the moderate drinker, drinking one to two glasses of wine daily, the antioxidants in red wine offer some protection against heart disease. (Red Wine and Health, 2008) Marketing Mix – Current & Future 2.1 Price

Kotler.P, and Armstrong. G go on to mention the different approaches in pricing strategies, whether it be market-skimming pricing, market-penetration pricing, product-mix pricing, segment pricing, psychological pricing and so on. Psychological Pricing is the one chosen for this product, as it targets the high-income earners taking into consideration the psychology of prices and how consumers respond to it. They state that in using psychological pricing, sellers consider the psychology of prices and not simply the economics. They speculate that consumers usually perceive higher-priced products as having higher quality. Penfolds Bin 707 wants to target the higher price points market, differentiating itself with the brand image of a premium quality wine. The Current Price calculated for a single bottle is at € 24.00 per bottle. This figure is marked in relation to the psychological pricing - high price/ high quality strategy. A dozen bottles are marked as following: Penfolds Bin 707 Cabernet 2004 1.5L

As the German market is currently over-run by a vast quantity of low-priced domestically produced wine, future prices are likely to remain the same or rise by a small percentage to gain a share of the higher price points market, primarily for the purpose of building image; by increasing sales volume in the mid-price range, supporting wines of good to above-average quality. 2.2 Promotion

‘The application of marketing...
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