ShoshonieHeitmann Unit6 Marketing Management

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Brand Extension Marketing Plan

Kaplan University Graduate School of Business and Management GB530 Marketing Management: Brand Extension Marketing Plan Unit 5 Shoshonie Heitmann January 14, 2012

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Brand Extension Marketing Plan 2.0 SITUATION ANALYSIS With over 75 years of award winning wine marketing and sales E.J. Gallo has decided to expand into other areas of the entertainment industry that is associated with wines. By marketing these accessories that go along with wines but keeps entertaining classy yet easy will be a challenge. Due to the high standards put forth by the E.J. Gallo Winery marketing and presenting any new products associated with industry must be done with careful customer awareness and product consideration. 2.1 Market Summary E.J. Gallo has the advantage of having a stronghold in the alcoholic beverage industry and has obtained a great deal of data and research information to show what the consumer is buying and using when entertaining and drinking the Gallo products. The target groups of Gallo will be the socially active groups of the younger trend setters in the age group of 17-34. This group tends to set the social setting of what is hot to have at your party, such as what is easy to use and what makes the party successful. This group tends to be very media savvy therefore they look for quality items associated with products they trust. Growth in this market could be limited but a constant as long as the wine tasting trend continues to grow and the market for fine wines continues on the path that it has over the last decade. 2.1.1 Market Demographics

Demographics

There seems to be an equal amount of both men and women wine drinkers among the demographic locations. Ages 17-65, with the highest consumption being in the millennial group which consists of ages 17-34 which is at 51% as compared to last years numbers of 37%. Though in the United States the legal drinking age is 21 the European market allows for a younger age to market to. The Generation X group which consist of individuals in the age group of 34-46, which ranks in at 51% now, while the Baby Boomers group, ages 47-65, is at only 30%. Of the different age groups, core wine drinkers which are daily drinkers come in at 9%, where several times a week comes in at 29%. E.J. Gallo Winery does not have a set boundary for it geographic market due to the fact that the product is offered in a wide variety of locations as well as online and globally. The target population is over 100 million users. Users purchase wine and accessories mainly as a form of adding to an entertainment function. Accessories add functionality to these different social events by making task simpler with one tool.

Geographics

Behavioral Factors (Psychographics and Lifestyle considerations)

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Brand Extension Marketing Plan

Users spend money on the wine but add accessories to make life easier. Users have basic needs to socialize where wine is served and accessories are used to help with the functions of the social gathering.

2.1.2 Market Needs E.J. Gallo Winery gives the wine drinking patrons quality product by adding accessories to this wide selection it adds value to the selections and functionality of products offered by E.J. Gallo. The organization seeks to add convenience to each patrons shopping experience by offering a multi-purpose tool.

Craftsmanship: It is important that the product meets the high quality standards that E.J. Gallo Winery has set with their world renowned wines. Consumers do not want to purchase a product that will not hold up to those standards. Design: By using a design that is put together and tested already this allows for high quality to be met. The wine accessories market has a great deal of wine bottle opens, and there are also other tools that go along with the social gathering process, but to incorporate two in one makes the tool more appealing to the consumer. Customer Satisfaction: By continuing with the high quality customer attention that E.J. Gallo Winery is renowned for will only promote the new wine accessory as a valued tool for the customer base.

2.1.3 Market Trends E.J. Gallo Winery will classify itself above other wine distributors by marketing products that make social gatherings as well as the individual wine connoisseurs life a little easier. In the past the emphasis has been only on selling wine, but with the industry taking a hit with the financial markets dipping, the organization now must look at ways to enhance the social and entertaining aspects of the consumer. Wine drinkers are not contained in one specific location. Due to growth in the wine drinking arena and the amount the average consumer is drinking the accessory market is a growing trend in the wine industry. The Wine Butler will be a thriving accessory for the social gatherings that include eating light snacks. It will allow for simpler clean up without having to pull out other tools. The growing trend among consumers is to find package deals; this can be achieved by offering a fine bottle of wine and one of the accessories that E.J. Gallo is planning on offering to it many fine patrons. In offering package deals the consumer continues to get the best quality wine but also the accessories that go along with being a wine connoisseur. Besides offering these accessories and package deals, the trend of purchasing online is a great way to continue E.J. Gallos marketing of fine wine products and accessories that go along with creating social event without a lot of hassle and with easy clean up. The social media trend is a great advertising trend the will help sell the new line of wine and social events accessories.

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Brand Extension Marketing Plan 2.1.4 Market Growth With economic market as it is now, and the cost of growing and producing grapes which are needed to produce the high quality wine the E.J. Gallo is famous for. The market for wine and accessories is growing. This is mainly due to the growth in sales of cases of wine and accessories that go along with them. The sales of wine and accessories have increased by 20\% making the market growth visible and viable. 2.2 SWOT Analysis 2.2.1 Strengths

Longevity in the market Strong presence in the wine industry and accessories that go along with the marketing of social entertaining tools. Quality products, customer satisfaction Too many accessories on the market Weak financial market Anti-Alcohol Groups presence Social Media advertising Multi-purpose tools and accessories new to the market by ingenious inventors Entertainment industry marketing Crops damaged leading to bad wine harvest, hurting the accessory packages Competitors selling similar packaging Decline in Wine drinking due to push for healthier lifestyle

2.2.2 Weaknesses

2.2.3 Opportunities

2.2.4 Threats

2.3 Competition E.J. Gallo Winery is the leader in the wine industry but not to be fooled the competitors are great and the wine accessories and tools industry is highly induced. The fact is that E.J. Gallo is successful in marketing their fine wines, and adding to the product line wine accessories and tools will only make the competition stand up and take notice. The three top competitors for E.J. Gallo is Asahi Brewery, based out Japan, Bacardi Limited, out of Bermuda, and Bacardi U.S.A. based out of Florida. Customers enjoy all these products but consumers enjoy the fine wine that has over 75 years experience and home grown grapes that produce award winning beverages. Competing with the competition is what E.J. Gallo Winery is what they do best by marketing their own manufactured wines and beverages grown in their own vineyards. E.J. Gallo is world renowned for their prestigious wines and now adding accessories as a valued tool to compliment the wine will allow the organization to stay on top of the market.

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Brand Extension Marketing Plan The marketing mix of Bacardi Limited is the price, keeping the pricing low but with quality product is vital part of this competition. There are different accessories offered through the competitors but not unique to the E.J. Gallo Winery line of fine products. 2.4 Product Offering Product/features/benefits E.J. Gallo Winery will offer the following accessories

Wine Butler is a product that allows the main product of the organization to be opened with a quality product but also allows the cracker or snack crumbs to be swept up without having to get another tool from the kitchen. Another product that is an Air Vacuum/bottle sealer. This product is beverage bottle specific, and also geared towards the consumer who is out to save the product that may not be used at the present moment. The last product that would be added to the accessory line for E.J. Gallo would be a Corkcicle Wine Chiller. This would make it easier for the consumer to keep the wine cold without the hassles of toting around a wine bucket full of ice. It is easy to remove and reusable which makes for a great party tool.

Brand Equity Model for the Wine Butler will be the association with Gallo wine and the family values that have been instilled throughout the companys time of promoting homegrown grapes producing high quality, great tasting wine for the average consumer. The name Gallo put on the high quality, effective, and highly useful tools associated with the wine industry but namely the Gallo wine family. 2.5 Keys to Success The ideal key to success is to create and produce quality wine related tools that make enjoying the fine wine of the Gallo Winery more pleasurable. Continuing on the road to complete customer satisfaction. The last key would be to ensure that the product meets and exceeds all the consumers expectations. 2.6 Critical Issues Many times critical issues are the smallest issues tha