Bus 360 smirnoff
- 1. Smirnoff Ashley Potter, Gerardo Paez, Spencer Howerton, Lauren Ha
- 2. Product The need-satisfying offering of a firm
- 3. Goods • Smirnoff offers goods to its customers because its products are tangible. • Originally produced in Moscow, the now British owned company (Diageo) produces Smirnoff products in several countries including India, Ireland, Italy, the United Kingdom, and the United Stated.
- 4. Product Assortment • Smirnoff offers a large product assortment that ranges from vodka, flavoured vodka, malt beverages, and premixed alcoholic drinks.
- 5. Product Assortment • Smirnoff only has one product line to sell which is alcoholic beverages. • It’s most popular individual product is the Smirnoff No.21 Red Label Vodka.
- 6. Branding • Brand Name: Smirnoff • Trademark:
- 7. Branding • Smirnoff has successful branding because: it’s product is easy to identify, it still maintains a lower price than most competitors without losing quality, it is widespread throughout over 130 countries, demand for vodka will always be strong as long as higher education exists, and it takes up a good chunk of the alcohol aisle with its various product assortments.
- 8. Brand Familiarity • Those who purchase alcohol will have brand recognition for Smirnoff products because of its affordable prices. • Many have brand preference because Smirnoff products average $11 less than its competitors. • Brand Insistence depends on the customers wants and bank account.
- 9. Branding • Diageo uses individual brands with Smirnoff being one of them. A few other well known individual brands under Diageo include, but aren’t limited to: Guinness, Jose Cuervo, Crown Royal, Baileys.
- 10. Consumer Product Classes • Smirnoff best falls under the group of Shopping Products, specifically homogenous shopping products. Unless one is a vodka expert, most customers see vodka as similar and want the lowest price. • However, the cheapest vodka on the market is sure to have further unwanted after effects, so Smirnoff offers a great balance between quality and affordability.
- 11. Product Life Cycle Market Introduction (1860) • Pyotr Smirnov founded a distillery in Moscow. His company was the first one to take advantage of newspaper ads to promote. Market Growth (1886) • In 1886, Smirnov was able to capture two-thirds of the market.
- 12. Product Life Cycles Market Maturity( 1930-Today) • By the 1930, Smirnoff was exported to most European countries and production began in North America, though not as successful as hoped in America. • By the 1990, the fall of Berlin Wall marked a pivotal moment in the companies dynasty. Troops turned to the vodka and it’s popularity grew. Sales Decline (TBA) • Today, Smirnoff is still thriving as competition gets tougher, so they have not seen the sales decline stage yet.
- 14. New-Product Process Idea Generation • Smirnoff wanted a product to compete with the growing market RTD (Ready to Drink) and provide an alternative to the beer market. Screening • It was imperative that Smirnoff could create a fresh new look for the product that also gave instant recognition to the Smirnoff brand name.
- 15. New-Product Process Idea Evaluation • Watching the success of “Mike’s Hard Lemonade” further encouraged the launch of this product Development • The last stage before the product hits the market is imperative. This is where marketers should run market test to see the potential of the product.
- 16. New-Product Process Commercialization • Since its launch in January of 2001, Smirnoff Ice has been one of the most successful alcoholic beverage launces in history. It is reported to have already captured 2% of the beer market.
- 17. Smirnoff- PLACE • 1860’s Piotr Arsenieyevich Smirnov started the legacy of Smirnoff by creating their very first beverage in Russia. • Over it time the company started to outsource and open new distilleries in other countries like France, England, and United states. • Today the company distributes its product throughout 130 countries
- 18. • The Diageo company who is a merchant wholesaler now owns Smirnoff as well as other major brands like baileys, Jose Cuervo, and Captain Morgan. • Diageo have contractual channel systems with many of its distributors in order to make Smirnoff conveniently available to its consumers. • Depending on the size of the general stores, Smirnoff intensively distributes their sorted bottles.
- 19. •Smirnoff marketing penetration has been very successful in countries like United States, England, South Africa, Canada, and Ireland. •At times Smirnoff chooses countries to sample seasonal products to determine if they would be successful or not.
- 20. Smirnoff provides different events to reach different target markets USA Russia India Brazil
- 21. Price Smirnoff
- 22. Average List Price • Smirnoff Vodka 375ml $10 • Smirnoff vodka 750ml $14 • Smirnoff vodka 1.75L $20 • Smirnoff Ice malt beverage six-pack $8
- 23. Price Flexibility Policies • One-Price Policy is used by Convenience stores who only offer Smirnoff at one price for all shoppers. • Flexible-price policy is used by Smirnoff retailers to offer different pricing to customers who are enrolled in loyalty programs or who purchase in bulk. Databases have made flexible pricing even easier for retailers.
- 24. Discounts • Club card members are offered extra saving as part of a supermarket loyalty program • Non-cumulative quantity discounts are offered by retailers to allow customers a one time price break for purchasing a certain quantity • Coupons are used by consumers to receive an extra discount off the list price of Smirnoff • Sale prices are used to advertise Smirnoff at a temporary discount to encourage purchasing of the product
- 25. Allowances • Damaged bottles are credited back to the retailers for accepting less sellable product that was damaged during the shipment of Smirnoff • Smirnoff can offer retailers stocking allowances to get attention and space for their new products • Push money is sometimes used by Smirnoff to encourage sales teams and retailers to sell their newer products aggressively
- 26. Profit Maximization • Lower prices expands the market size and exceeds customers reference price • This leads to greater sales and profits • Manufacturers and retailers are able to receive a rapid return on investment
- 27. Demand Approach to Setting Prices • Smirnoff offers customers a product that exceeds their reference price with its high quality taste at a low price • Odd-even pricing is used by retailers who sell Smirnoff to influence their customers psychological process of purchasing • Prestige Pricing-Diageo uses prestige pricing to separate its ultra premium vodkas. Smirnoff’s price is set lower to help place a higher status on Diageo’s ultra-premium vodkas
- 29. Personal Selling • Smirnoff brings their product straight to their customers by sampling there brand at various events and clubs • Often they will use their Smirnoff girls to distribute their samples and sell the product to various customers. • These events gain Smirnoff publicity, which is an unpaid form of presenting their products.
- 30. Mass Selling • Advertising: Smirnoff uses many forms of media to advertise their product including their website, commercials on television, magazine print and billboards. • This is Smirnoff’s paid way of presenting their product.
- 31. Mass selling cont. • Sponsorships and Master of the Mix : Smirnoff will often sponsor various events including the VH1 show Smirnoff’s Master of the Mix; which is a DJ competition in which the winner receives a cash prize.
- 32. Integrated Marketing communications • Smirnoff’s coordination of all of their promotion methods seeks to convey the same consistent message. • Their message is that they have the most popular premium spirits with a wide variety of unique flavors • These promotion methods follow the AIDA model, which is to get attention, hold interest, arouse desire, to obtain action or to buy the product.
- 33. Product Demand • Vodka and other spirits are typically a product with a primary demand, customers want the product but not a specific brand • Smirnoff has created a selective demand for their product with there unique flavors such as iced cake flavored vodka.
- 34. Yours for the making campaign • Smirnoff is the number one selling vodka by volume in the world • They focus on reminder advertising with their original vodka, which is an already established product. • With their flavored vodkas, Smirnoff uses a more competitive advertising • They seek to push their new and unique vodka flavors.
- 35. Yours for the making cont. • Smirnoff’s latest ad campaign, yours for the making, focuses on the unique and wide variety of drinks you can create with the flavored spirits • They have many different recipes accessible on their website for free.