MARKETING PLANSBOOK
2019
MARKETING COMMUNICATION BOOKLET PREPARED FOR MISADVENTURE & CO. REPORT BYÂ EZ COMMUNICATIONS
CONTENT 02
EXECUTIVE SUMMARRY
03
SITUATIONAL ANALYSIS
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VODKA DISTILLERIES IN THE U.S.
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TARGET AUDIENCE ANALYSIS Â
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TARGET MARKETING
08
CREATIVE BRIEF
09
MEDIA PLANNING
10
TOOLS FOR COMMUNICATION
13
BUDGET, TIMELINE AND ROI
14
REFERENCES
EXECUTIVE SUMMARY Misadventure & Company, a start-up vodka distillery, assigned EZ Communications with the task of creating a marketing communication plan for their company. This marketing communication plan was intended to increase Misadventure & Co.’s brand awareness by establishing who their target market is and how to communicate the attributes of their product effectively. EZ Communications conducted research about the Vodka Distilleries Industry, similar vodka producers, and research about the area in which Misadventure & Co. operates in, With this research, EZ Communications was able to determine a primary and secondary target audience, a creative brief that outlines a communication strategy, and a media plan in which Misadventure & Co. should follow to achieve their organizational goals. By analyzing consumer market in the Vodka Distilleries Industry, it was determined that Misadventure & Co. should focus their marketing efforts towards individuals that live in San Diego County aged 21-34 as well as those aged 35-65. These two segments make up the majority of the consumer market in this industry. By establishing this target market, EZ Communications developed a creative strategy that would appeal to this audience. Then EZ Communications explored potential mediums in which Misadventure & Co. could use to reach this audience and effectively get the messaging to them. It is suggested that Misadventure & Co. utilize various social media platforms, their website, print advertising, email marketing, influencer marketing and events to achieve this.
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"YOU CAN HAVE YOUR CAKE AND DRINK IT TOO"
SITUTATIONAL ANALYSIS
INDUSTRY SUMMARY
Based in San Marcos, CA, Misadventure & Co. is a vodka producer that incorporates fun with sustainability. In order to make their quality vodka spirits, Misadventure & Co. utilizes excess baked goods from food banks to reduce the amount of food that goes into landfills. Misadventure & Co. extends the life of excess baked goods as they contain usable starches that can be converted to sugars and ultimately turned into alcohol.
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VODKA DISTILLERIES IN THE U.S. This industry has grown tremendously over the past five years, both in revenue and in distillers. This industry has reported that “revenue has increased at an annualized rate of 3.4% to $3.4 billion over the five years to 2018” (Lombardo 2018). The introduction of new types of vodka styles has also contributed to the industry's growth. “New styles of vodka have been introduced to include flavored vodkas, low-calorie vodkas and even local vodkas that boast locally sourced ingredients, limited quantities, unique distillation practices and strict attention to detail during the distillation process” (Lombardo 2018). The industry is expected to continuously grow over the next five years to 2023 as a result of continued growth in per capita disposable income levels, greater increased expenditure on alcohol and continual declines in excise tax on distilled spirits (Lombardo 2018). Competition in the Vodka Distilleries industry is medium and the trend is increasing. With regard to internal competition within the industry, consumers are sensitive to sudden price changes in the price of vodka. Thus, “the industry’s customer base consists largely of casual drinkers who do not exhibit significant brand loyalty and are willing to switch brands following any sudden increase in price” (Lombardo 2018). Additionally, casual consumers are largely influenced by the presentation of the vodka when making purchasing decisions. As a result, many companies have capitalized on this by developing “a range of marketing strategies such as using ornate glass bottles, infusing vodkas with digestible flakes of gold leaf and adding fruit flavors to entice casual consumers toward purchasing their products” (Lombardo 2018).
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In terms of external competition, the Vodka Distilleries industry faces threat from the many alternative alcohol beverages available to consumers. Consumer drinking preferences are historically volatile, making companies operating in this industry compete with other liquor, beer and wine producers. As the variety of these alternative beverages increases, this external threat will escalate as well. The Vodka Distilleries industry’s demand is driven by a few determinants. One of these determinants includes per capita disposable income, which enables consumers to spend more on non-essential products like vodka. The price of vodka in relation to other alcoholic beverages will also influence how frequently a consumer will purchase this product. An increase in the retail price of vodka is the result of rising excise tax. However, “excise taxes on all types of alcohol have gradually fallen over the past five years, thereby making consumers more likely to sample a greater variety of alcoholic beverages” (Lombardo 2018). Additionally, consumer preferences are a significant demand determinant. Consumer preferences are often influenced by changes in taste, social norms, and studies demonstrating the health benefits of certain types of alcohol (Lombardo 2018). Lastly, various demographics have influence on demand in this industry. Gender has an influence on demand due to the fact that vodka consumption is greater among males than females. Furthermore, “a rising proportion of the US population over the legal drinking age will increase the market size and demand for liquors” (Lombardo 2018).
TARGET AUDIENCE ANALYSIS CONSUMER MARKET The figure below showcases the different market segments for the industry in which Misadventure & Co. operate in, which is the Vodka Distilleries Industry. As shown by the chart, the different segments for this industry include consumers under age 35, between ages 35 to 64, and consumers over 65 years old. According to IBISWorld, some of the major demand determinants associated with this industry include per capita disposable income, evolving consumer preferences, demographic changes, the price shift of vodka relative to alternative alcoholic beverages and the level of competition from imports.
Figure 1: Market Segmentation of Vodka Distilleries
CONSUMERS UNDER AGE 35 According to IBISWorld, consumers under age 35 are expected to comprise the second largest share of revenue for the Vodka Distilleries industry, with this age group accounting for 26.8% of total industry revenue. One major contributing factor is the demand from consumers between ages 25 to 34 is rapidly expanding. This age group consists of people who are actively seeking new and exciting experiences, which makes them a viable target for a unique distillery such as Misadventure & Co. In addition, IBISWorld states that excise taxes on alcohol has decreased over the past years, which made premium vodka more affordable for young consumers.
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CONSUMERS AGED 35 - 64 As shown in figure 1, consumers aged 35 to 64 comprise the largest share of demand and revenue for vodka products. According to IBISWorld, the total revenue from this segment is expected to be 56.4%. Similarly, due to the decrease in excise taxes on vodka products more consumers within this age group are able to afford premium vodka; however, the main difference is that they are able to afford much more due to the generally higher levels of disposable incomes. Furthermore, those within this age range have established their personal preferences and are more likely to spend more on higher quality products. Although this age group may have established preferences, their liking of high quality products may sway them to choose Misadventure & Co. vodka over their past choices. As such, this segment will be a viable audience for Misadventure & Co. to target.
CONSUMERS AGED 65 AND OLDER The smallest segment of the Vodka Distilleries industry is made of people aged 65 and older. People within this age range are typically the most loyal to brands they are familiar with; therefore, they are less likely to experiment with new brands and “craft” goods. Although they are part of the smallest segment, they are relatively stable in terms for the amount of revenue they contribute. However, it is worth noting that this segment would not make as a viable target for Misadventure & Co.
CONSUMER PROFILE NAME
EDUCATION
Ella
B.A. Communication
AGE
OCCUPATION
25
Public Relations Coordinator
LOCATION
INTERESTS
Encinitas, CA
Hiking, travel, photography, fashion, restaurants
CONSUMER PROFILE NAME
EDUCATION
Matthew
B.S. Business Administration
AGE
OCCUPATION
35
Financial Analyst
LOCATION
INTERESTS
San Diego, CA
Breweries, rock climbing, axe throwing, menswear
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TARGET MARKETING DECISION After analyzing the consumer markets of the vodka industry, the focus segments that Misadventure Co. should target is adults under 35 years old who make up 26.8% of the industry as well as adults aged 35-64 because combined are the largest segment of the industry at 56.4%,. All together both market segments approximately account for 83.2% of the industry. With decreased alcohol taxes and overall higher disposable income. these consumers in the U.S. are willing to spend money on premium vodka. The vodka industry is in a growth stage and expects yearly growth of 3-4%. BRAND POSITIONING For consumers who are spontaneous, environmentally conscious, and are looking for their next great adventure, Misadventure & Company vodka is the only sustainable vodka that uniquely offers high quality taste at an affordable cost. Putting an innovative spin to classic vodka production, Misadventure & Co. seeks to revolutionize the way we think of sustainability by highlighting pleasure and good-will. For the next time you seek to indulge, you no longer need to feel guilty about it with Misadventure & Co. vodka. The table below outlines a few prime features that the brand offers to uphold their message and values.
FEATURES
FEATURE 1 Sustainably sourced
FEATURE 2 High quality
FEATURE 3 Competitive pricing
ADVANTAGE
BENEFIT
Sustainable resources are better for the environment
Consumers will like feel they're supporting a good cause
Has versatility compatible for new and old consumers
High quality product that anyone can afford
Has versatility compatible for new and old consumers
High quality product that anyone can afford
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CREATIVE BRIEF PROBLEM As a start-up, Misadventure & Co. is not sure how to advertise the product using both an eco-conscious and lifestyle based message while upholding the quality of their products KEY PROMISE To provide affordable, quality and sustainably made vodka for all your adventures without sacrificing taste. ADVERTISING OBJECTIVE Bring more awareness to the brand by encompassing the three pillars the company stands by: sustinability, lifestyle and quality
KEY FACTS 40% of food grown in the U.S. ends up in a landfill The starches in baked goods can be used to make vodka Baked goods sent to food banks often don't get used so they end up wasted COMPETITORS Smirnoff Svedka Titos TARGET AUDIENCE Aged 21 - 34 Lives healthy lifestyle Environmentally conscious Enjoys going out
KEY ELEMENTS
CALL TO ACTION
Convince people to continually choose Misadventure Vodka over other because it helps the environment and tastes great.
TONE
The tone of the advertising should be adventurous, spunky, optimistic, and passionate to draw the attention of the target audience.
REASON WHY
Food waste is a significant problem in the U.S. and Misadventure & Co. hopes to tackle that issue to reduce the amount of waste.
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MEDIA PLANNING GOALS
TARGET AUDIENCE
MEDIA GOALS Utilize various communication tools to reach and interact with Misadventure & Co.’s target audience Expand Misadventure & Co.’s online presence by leveraging new social platforms and post on them consistently
PRIMARY The primary audience are males and females aged 21-34 who live in San Diego County. These individuals spend their weekend nights out with friends at trendy local bars. They also love experimenting with new things. Additionally, this group lives a relatively healthy lifestyle during the weekdays and do their part in caring for the environment.
ORGANIZATIONAL GOALS Increase brand awareness and exposure of Misadventure & Co.’s products and tasting room Promote Misadventure & Co. vodka by encompassing three pillars: lifestyle, sustainability and quality Build relationships and establish loyal clientele who always choose Misadventure & Co. vodka over others.
SECONDARY The secondary audience are also males and females who live in San Diego County, but are aged 35-65. This segment has more disposable income because they have established careers or are near retirement. These individuals love their leisure time. They spend their weekends outdoors hiking, golfing, and the beach. They also love alcohol, specifically vodka products. They are not as eco-conscious as the primary segment, but do what they can to assist.
KEY MESSAGES 1. Waste doesn’t have to be wasteful. Grocery stores routinely donate any unsold goods to local food banks; however, food banks are under strict regulation that allows them to only distribute food that offers nutritional value. Subsequently, baked goods end up not being distributed and are left to rot. Misadventure & Co. produces vodka from those unsold baked goods, which would have been landfill waste, into a new product. 2. We don’t sacrifice quality. You might be thinking: “How can recycled pastries taste any good?”. That is actually the beauty of Misadventure & Co. vodka. With rich chocolatey notes, Misadventure & Co. utilizes unique techniques that allow them to produce High quality, premium vodka that enables consumers to help sustain the planet at an affordable cost. 3. Feel good about indulging. Indulging doesn’t have to be a bad thing. When you consume Misadventure Vodka, you can feel good knowing that every drink contributes to environmental sustainability!
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TOOLS FOR COMMUNICATION FACEBOOK Facebook is still currently one of the most heavily used social media platforms with over 2.32 billion monthly users, and 1.15 billion daily users. In addition, Facebook advertisements are estimated to have an average of 9.2% in terms of conversion rates, which is the number of customers that actually buy a product after seeing the ad. If utilized effectively, Misadventure & Co. is able to not only communicate their message to their target audience but other audiences as well. APPLICATION 1. Organic - Misadventure will post to Facebook 2-3 times a week. They will post organic content created by in-house marketing team, “reposts” from users, inspiring photos, quotes, or/and articles about sustainability, and content created by microinfluencers. They can also post photos from past events or future events on Facebook. There is no cost for organic Facebook posts. 2. Paid - At the end of each month, Facebook will run a paid advertisement discussing any upcoming event, in store promotions, or ads promoting the products of Misadventure. This ad should run a week for optimal views. According to Ad Espresso Blog, by Hootsuite, CPC on Facebook are 27.29 cents. To reach 1,000 click conversions for a week campaign will costs $270. It is recommended in budget to reach for at least 1,000-2,000 click conversions ranging budget from $270-$540.
INSTAGRAM 26.8% of Misadventure & Co’s market segment, which is our suggested target market, consists of people that are under the age of 35. There are 1.1 billion monthly users on Instagram, and 71% of Instagram users are also under the age of 35. This allows for marketing campaigns to easily reach the primary target audience. Although the Instagram space is saturated, it is too big of an opportunity to miss. APPLICATION According to Social Buddy Blog, Instagram should be posted on at least once a day. Social media calendars can be prepared a month in advance to anticipate upcoming events, marketing opportunities, and special holidays to acknowledge. It is also advised to use Instagram Stories to draw engagement to the business profile which is recommended to have site website link. This can lead to more clicks on website, leading to sales. Instagram stories can record videos of how the vodka is made, lead viewers into the process and future opening of the tasting room, and repost tagged mentions from users who tag Misadventure in their posts.
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PINTEREST Pinterest is often a missed opportunity for good promotions. The platform is extremely interactive and allows people to share more unique ideas about products. According to Hootsuite, 98% of Pinterest users actually go out and try the ideas they find on Pinterest compared to the 71% average of other social media platforms. Misadventure & Co. can create posts such as recipes using their products, and even partner with food bloggers to promote their own recipes using Misadventure & Co. alcohol. APPLICATION We suggest having a Pinterest profile to engage with target audience by re-pinning and sharing original content. It is recommended to use specific keywords in tags to catch attention of audience such as “specialty cocktail” or “sustainably made.” There is no costs associated with using Pinterest. We recommend re-pinning like-minded content 2-3 times a week and original blog posts and photos once a month.
PRINT: LOCALE MAGAZINE Print advertising is recommended to purchase ad space in the popular, local magazine called Locale. Locale Magazine is a lifestyle publication that seeks to highlight pieces of innovation and forward thinking. Because Misadventure & Co’s vision of sustainability is so unique, they are able to align their values with Local Magazine’s thus catching the attention of forward thinking consumers that are looking for the latest trends. The price for ⅓ page is $3,500. Ads of Misadventure & Co. is recommended at least twice a year: once in summer season (June) and holiday season (November).
WEBSITE The core of a good digital presence is a strong website. Misadventure & Co. can focus attention on utilizing its website for more than just display. Generally when businesses claim to be sustainable, consumers would like to see transparency from the company. This is where Misadventure & Co. can use their website to show every step they take to pursue their mission of hedonic sustainability. We recommend creating engagement on the website by adding blog posts once a month. There is no cost associated with creating original blog posts. Blog posts could talk about ways to be sustainable in day-to-day life, fun seasonal cocktail recipes, and photos of volunteer events Misadventure employees participated to help the community.
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BLOGGERS Social media influencers are important to use to generate content and expand brand awareness of products through their trusted network. Some of these influencers are willing to create content and share about Misadventure & Co. for free products or a small fee. Choosing like-minded bloggers in San Diego to campaign seasonally during summer, fall, and holiday season swill help create current content such as: seasonal cocktail recipes, high quality photos, and spread awareness to their followers. Sprout Social considers influencers one of the highest ROI in marketing earning $6.85 for every $1 spent. The average cost of influencer per post of under 1,000 followers is $83. The average cost of a micro-influencer is $271. Overall, during a campaign of 3-5 influencers per season, this will cost approximately $2,439-$4,065.
EMAIL Email marketing is a great way to remind customers about your product! Emails can share with customers about promotions, events, or new products. For an up and coming brand like Misadventure and Company, customers would be very excited to see any new innovations that are coming their way. This can include sneak peeks about new product launches, any special offers (e.g. refer a friend and get 50% off your next purchase), or even VIP emails can drive plenty of traffic. We recommend one new email a month. The costs associated with email marketing range from $0-$173 a month depending on how many subscribers emails are sent to.
EVENTS Creating a buzz about your brand is even better when your consumer gets a little buzz! Offer tastings at local community events, promotional events hosted at new tasting room, and a chance to host an anticipated launch party. We recommend participating in local community events and gatherings once every two months. Costs can include setup materials, promotional material, product cost, time, and fees to participate in an event. We estimate each event could range from $400-$600.
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BUDGET, TIMELINE AND ROI BUDGET AND TIMELINE The flowchart below outlines the budget and timeline for the communication tools. The darker shades of a color symbolize peak activity for marketing efforits.
Figure 2: Flowchart
RETURN ON INVESTMENT
This campaign is set to begin in June 2019 and will continue through December 2019.  The campaign will have a presence on social media, print, online, events, and emails. With the goal of increased brand awareness in San Diego among target audience, ROI will be calculated in results of impressions, reach, social media growth, and results from surveys target audience in the San Diego area to understand brand awareness. This will be done through advertising with pulse methods on social media and flighting advertising with print, online, events, and emails. We will be able to calculate increased brand awareness by the following metrics in December 2019: 1. Followers: increase in follower on social media accounts by 15% 2. Engagement rate: increase in likes on posts from 7% to 10% 3. Email: Increase on email sign ups to newsletter by 10% 4. Brand awareness increase: Survey target demographic to see if they recognize brand logo. Goal is 30% of surveyed recognize logo. 5. Impressions: on social Facebook and Instagram to increase 30% 6. Reach: on social Facebook and Instagram to increase 30% 7. Pinterest: page launched with 100 followers by campaign end 8. Print: 100,000 impressions per ad per year
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REFERENCES Cooper. P (2019). 23 Pinterest Statistics That Matter To Marketers in 2019. Retrieved from https://blog.hootsuite.com/pinterest-statistics-for-business/ Lombardo, C. (2018). Vodka Distilleries in the US Report OD4289. IBISWorld. Industry. Retrieved from IBISWorld database PRIZMÂŽ PREMIER. (2018). Retrieved from https://claritas360.claritas.com/mybestsegments/#zipLookup Social Buddy Blog (2019). Retrieved from https://socialbuddy.com/blog/
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MARKETING PLANSBOOK
EZ COMMUNICATIONS
thank you for reading
MAY 2019
