Sabrina Tosti GuerraNikolas Vogt
Maria Clara NevesJoão Nuno Guerra
13.12.2011
Marketing PlanSandeman Port wine in 2012
Agenda
I. Current Situation• Portfolio Analysis• Marketing Strategy and Financials/Budget
II. Environment Analysis• Macro- and Microenvironment
III. SWOT Analysis
IV. Marketing Actions• Marketing Objectives and Target Market• Marketing Strategy and Tactics• Implementation and Evaluation
V. Conclusion
2
George Sandeman (Chairman)3Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion
Company and Mission
• Sogrape: one of the major players in the Port business, exports to about 125 countries
• Mission Statement of Sandeman: “Famous for pleasure”
“As tastes and habits change, people are learning to experiment, chilling their red wine, serving white wines with meat and red wines with fish…Sandeman, too, is experiencing a renaissance as aficionados try new ways of serving it – no longer just as an aperitif or dessert wine, but as an accompaniment to haute cuisine (…)”George Sandeman.
4
• George Sandeman: Scottish merchant who founded Sandeman
• The Don: Spanish caballeros de Jerez in a Portuguese student’s cape and wide-brimmed hat
• 200 years after, Sandeman is distributing their products in more than 55 markets
Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion
Sandeman Portfolio Analysis
Sandeman
Port Wine
Tawny-10;20;30; 40 years old
-Ruby-Vau Vintage
-Vintage-White-Apitiv
-Imperial Reserve
-Founders Reserve
-etc
Red Wines
-Confradeiro Reserva Red
2000;-Confradeiro
Reserva 2002
Cocktails
-Caipe Sandeman;
-Cream cocktail-Bliss
-Cosmo-Crushe
-Fizz-Hot
-Imperial on the Rocks
-etc
Sherry
-Armada-Character-Don Fino-Dry Seco
-Medium Dry-Rare Fino
-Rich Golden-etc
Madeira
-Fine Rich-Rainwater
Brandy
-VVO Solera Gran
Reserva;-Capa Negra;
-Capa Real;-Imperial.
5
Why Tawny?6
Most promising outlook in Sandeman’s portfolio
Accounts most for the company’s sales
Known for its fruit and style of a great Port Wine, but also with an added finesse
Old type but still versatile
Fits as an aperitif, digestive or even during meals
Awards
Marketing Strategy
Among first companies to label and advertise its wines Different languages and markets
Networks in production and distribution with partners
7
Television
Sandeman Website
Cooking magazines
WebsitesAdvertisement
Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion
Financial Status
Revenue: 26,42 Mln €Profit: 2,32 Mln €RoS: 8,78%
8Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion
Inconsistent and low marketing
investment
102 091€ on commercial,
marketing and distribution
(deferred costs)
60 932€ on marketing expenses
25,4% of 641 200€ other
current operating assets
9
Macro: Declining revenues but social connection
• Regulation of production & growing(by CMO & SIVV)
• Possibility of increase of VAT on Port(by ~10%)
Political
• Positive outlook regarding global economy
• Shrinking Port wine market since 2007(decrease of 4% in 2011 compared to 2010)
• Exportation of Port wine declined by 5%
Economic
• Strong social connection to Port wine,especially in Portugal and England(The Methuen treaty)
Social
• Low innovation (mostly incremental regarding production procedures)Technology
Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion
Main Competitors Brand Future Strengths
Aims at values like Freedom, Passion and Dreams
• Versatile brand with unique drinks • Positioned as contemporary Port wine
brand
Emphasis on the quality and techniques
• Well-known for quality old port wines• Often first-mover with new products• Only completely independent
exporter
Focuses on the simplicity and the national spirit of its products
• Brand represents quality• Focuses efforts especially on Portugal
Combine art with the special characteristics of the location
• Churchill’s quiet recent brand and less traditional
• Positioned as high quality “boutique”
Specialized on innovation and has established new products markets (e.g. "Croft Pink“)
• Traditional methods and the highest quality grapes
• One of the best vineyards in the Douro Valley
10
Micro: Lots of brands but lack of clear positioningCurrent Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion
• Brand
• High quality
• Premium positioning on port wine market
• Sogrape Group network
• Production technique
Strengths Weaknesses
ThreatsOpportunities
• Limit amount of qualified labor force
• Lack of promotion
• Inconsistent marketing investments
• Domestic leadership in production (PT)
• Globalization & International trade
• Increasing level of cooperation between final producers and intermediaries
• Shrinking market
• Switch to low-quality brands
• Increasing importance of new producers
• Ongoing industrial concentration
• Imitation of premium products by white labels
I n
t e
r n
a l
E x
t e
r n
a l
Inconsist. marketing
investments
Shrinking market
Low-quality brands
Imitation of products
Brand
Premiumpositioning/
quality
Sales growth
Increasing cooperation
Leverage brand, premium position and increasing cooperation to overcome threats and weaknesses.
Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion
12
Marketing Objectives
• Increase sales by 10% (BE, UK and PT)
• Increase marketing spending to 415 700 € by an increase of 155% through an investment of 252 700 € (budget for 2010 was 163 000 €)
Sales Market share Expenses
Short term: Long term:• Increase share of
marketing spending in FR by 25%
• Strengthen product and brand awareness (emotional touch)
• Find strategic partners for development of new sale channels (optimization and modernization) Recommendation: Not addressing the US market!
Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion
Sales + 5 %(i.g. -3,6 %)
Sales + 10 %(i.g. -11,9 %)
Sales + 25 %(i.g. -21,6 %)
Sales + 5 %(i.g. +7,2 %)
Who is the target?13
Premium- differentiation strategy:
Tawny Port Wine
Aggressive marketing and
distribution strategies
One mission: “Famous for Pleasure!”
Medium to high income adults, who frequently buy Port wine and drink it as a digestive, appetizer or social drink. High level of education.
• restaurants• bars• catering companies
Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion
Business-to-business Business-to-consumer
Marketing Mix and strategies14
Product strategy
Tawny Port wine:
• award-winning-quality
• special packaging
• combination with haute cuisine
• no imitation
Price strategy
Current price:
• average pricepremium in thetop 5 markets equals 5,80 €
• no lower price, strong brand image
Promotion strategy
Pull strategy:
• interactive and emotional marketing
• social media, event-, press- and outdoor-promotion
• brand-fitting testimonial
Placement strategy
Selective strategy:
• relationships with upscale restaurants
• website (purchases)
• Sandeman’s Port wine Museum
13,74 €/1L (average)
Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion
Marketing tactics15
Testimonial and slogan
"Tawny Porto. Every drop is full of pleasure."
• Upscale airlines
• Social Media
• Product package
• Restaurants
• Trade marketing
• Events
Reference Ad
Tawny Porto ExperienceSatisfaction
and relaxation
Full pleasure
Premium character
António Banderas
16
Airport Billboard Golf magazine
Packaging with quality seal
Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion
Implementation 17
Art Events
Life-Style magazines
Specialized Magazines
Restaurants
Booths
Flight's brochures
Social Media
Outdoors
Campaign Development
Coluna1Starting Date
Jan Feb Mar Apr May Jun Jul Aug Sept
150.000 €
32.500 €
2.000 €
5.000 €
5.000 €
2.000 €
6.200 €
30.000€
20.000 €
Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion
Evaluation and Control
Sales◦ Direct purchases online purchases consumer behavior
Market Share◦ Worldwide trend- industry◦ Competitors’ market share
Brand awareness ◦ Understand costumers’ perceptions
and satisfaction
Three levels of assessment◦ Company-wide◦ Department◦ Individual
18Current Situation || Environment Analyses || SWOT Analysis || Marketing Actions || Conclusion
Well defined premium image
Balanced investment aiming at long-term
impacts
Win customers’ loyalty
19
Thank you for your attention!Sources:
Conference Board: Global Economic Outlook 2012 (retrieved on 30.11.2011) –
http://www.conference-board.org/data/globaloutlook.cfm
Lopes, T. S. (2005). “Competing with Multinationals: Strategies of the Portuguese Alcohol Industry”. Business
History Review, 79: 559-585.
Loureiro, N., & Fernandes, P. (Eds.) 2011. Port wine characterisation and positioning in Portugal: XV Congreso
Internacional de Investigación en Ciencias Administrativas AC (ACACIA). Universidad Veracruzana. Universidad
Veracruzana,, Mexico
Protected Designation of Origin (retrieved on 2.11.2011) -
http://europa.eu/legislation_summaries/other/l21303_en.htm
Rebelo, J., Correia, L. & Vaz Caldas J. (2007). “Globalization and wine business: Port wine” (retrieved on 23.11.2011) -
http://ageconsearch.umn.edu/bitstream/9448/1/sp07re03.pdf
Sandeman Website (data for product description, logo, packaging, etc. retrieved on 20.11.2011) -
http://www.sandeman.eu
Sogrape BrandScience Case, 2004 (retrieved on 21.10.2011) -
http://www.brandsciencenetwork.com.pt/pdfs/conference/Sogrape.pdf
Sogrape, SGPS, S.A. Annual Report 2010 (retrieved on 15.10.2011) -
http://www.sograpevinhos.eu/pdf_info_fin/rel_cons.pdf
Vinho do Porto (03-2007) by Instituto Superior del linguas e administraçao (ISLA)
Wines of Portugal (retrieved on 31.10.2011) - http://winesofportugal.info/pagina.php?codNode=18091&market=2