Vincor Case Study
What positioning should Vincor strive for with the new product? Should it be a fruit-based cooler? An energy drink? A spring water cooler? Gin-based? Tequila-based?
Position new drink as fruit based cooler, targeting young population because: * Customers were interested in trying new cooler brands in spite of brand loyalty * Taste and flavor is the primary reason for cooler brand purchase * Health was the next major factor refreshing drinks * Exciting flavors in different packaging led people to try new coolers * Young people in the range of 19-44 form more than half of the cooler customer base * Other popular sectors, vodka and energy drinks are already occupied by established brands * Cooler launched last year, Yuha, failed because of improper execution of positioning, pricing and packaging
What will the packaging, pricing and promotion strategies be?
New launch strategies:
Packaging:
* Use four-pack open carrier to ensure premium image * Use clear glass bottles, without labels, as it is edgy and supports the tag of new drink in the market * Use 341 milliliters square bottle as differentiator
Pricing: * Adopt the line pricing strategy, at $9.45 * Refreshment drinkers are price sensitive * Can’t go cheap as it would create a wrong perception about the quality of the product * It would not eat into the market share of Vex, Vincor’s other successful product
Promotion: * Advertise through in store displays, bars * Advertisements to target both young male and female * Use LTOs for brand promotion at $1 discount to match Diageo * Start with a launch in Ontario and Quebec and then take it nationwide once the hype (word of mouth publicity) is
Position new drink as fruit based cooler, targeting young population because: * Customers were interested in trying new cooler brands in spite of brand loyalty * Taste and flavor is the primary reason for cooler brand purchase * Health was the next major factor refreshing drinks * Exciting flavors in different packaging led people to try new coolers * Young people in the range of 19-44 form more than half of the cooler customer base * Other popular sectors, vodka and energy drinks are already occupied by established brands * Cooler launched last year, Yuha, failed because of improper execution of positioning, pricing and packaging
What will the packaging, pricing and promotion strategies be?
New launch strategies:
Packaging:
* Use four-pack open carrier to ensure premium image * Use clear glass bottles, without labels, as it is edgy and supports the tag of new drink in the market * Use 341 milliliters square bottle as differentiator
Pricing: * Adopt the line pricing strategy, at $9.45 * Refreshment drinkers are price sensitive * Can’t go cheap as it would create a wrong perception about the quality of the product * It would not eat into the market share of Vex, Vincor’s other successful product
Promotion: * Advertise through in store displays, bars * Advertisements to target both young male and female * Use LTOs for brand promotion at $1 discount to match Diageo * Start with a launch in Ontario and Quebec and then take it nationwide once the hype (word of mouth publicity) is