Vincor Case Study

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Marketing Plan

October 5, 2010 Presented by:

Marketing Plan
Executive Summary
Vincor is a well established wine and wine-related producer based out of Mississauga Ontario. Vincor wants to use their current success and venture into the refreshment market by introducing a new line of coolers. In order to do this Vincor will have to decide what type of cooler to produce as well as the design, packaging, price and marketing strategy. Market research was conducted to determine who the consumers in the alcoholic refreshment industry were, what their interests were and what the current trends were. Vincor determined that 56% of Canadians 19 and older claimed to drink one or more of the different types of refreshment beverages. Of these, 57% of refreshment drinkers were determined to be female while 43% were men. Vodka or spirit coolers were found to be the most popular cooler choice, followed by wine coolers, hard lemonades and then ciders. There are currently several well established competitors in the market. Smirnoff Ice is the current market leader with their premium vodka cooler, Bacardi Breezer’s rum based cooler is a close second and Mike’s Hard Lemonade is also popular with both females and males. There are 5 different options available to introduce into the market. The options to produce are as follows: 1. Real Fruit Juice Cooler 2. Gin Cooler 3. Spring Water Cooler 4. Tequila Cooler 5. Energy Cooler Based on the information available we have determined that alternative 1, produce a real fruit juice cooler, would be the best option for Vincor. Research showed that fruit juice coolers were preferred most among the 19-22 year olds. It was also determined to be favoured among men and Quebecers. Qualitative research revealed that non-carbonation was a strong selling point, while natural sweetness resonated best of all. As a contingency plan, if alternative 1 fails, Vincor should consider offering the tequila or gin based cooler as these also had interest and currently these products are not on the market. They should also consider dropping the cooler line all together and instead concentrate on their already successful wine and wine accessories line.


Problem Statements
Vincor plans to introduce a new alcoholic refreshment beverage into the market. They must decide which product to launch and what the characteristics of this product will be. The packaging, pricing and promotional strategy also have to be decided on.

Company Objectives
The objective is to introduce a new cooler product that will be successful in a market that already has several cooler options.

Company Background
Vincor, a Mississauga, Ontario based company, is the world’s 8th largest producer and distributor of wine & wine-related products with revenues exceeding $400m. They are the market-leader for these products in Canada with 21% of market share and leading its product line are the popular Vex and Growers Cider brands.

Situation Analysis
      Vincor has the capitol needed to fund the research and development of a new product Vincor employees have previous experience with brand managing Vincor is already well known in the industry Vincor has a great position in the cooler/refreshment beverage market with years of experience Vincor is a well-established company Vincor has performed solid market research to understand the consumer and the competition

    Vincor does not currently have the in-house capabilities to handle the fermentation and pasteurization required for a 50% fruit juice product. Vincor sales team is not enthusiastic of having to introduce a new product when the company is having a slow year and pushing a new product is harder than selling something familiar. Some even feel strongly that the company should only be investing on wines Vincor primarily produces wine and wine-related products which may take resources away from the production of the new cooler product...
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