Strategic Marketing Plan – Bacardi-Martini Company
Bacardi is a dominant player in the European Ready to Drink (here after: ‘RTD”) market. The current market situation as well as macro economic developments and market research support the managements decision to target a new market segment: women aged 25-39. The market for RTD’s has been growing rapidly in recent years. From our market analysis it appears that consumers of alcoholic drinks are predominantly of the male gender. But lifestyle changes and demographic developments have put young female customers on the map as well. This calls for a new product that fulfils the needs of this new group of consumers. From the SWOT -analysis it appears that a product that meets the needs of this health conscious, increasingly affluent and ‘image wise’ group will have a good chance to gain this market.
We therefore launch a new product: the Bacardi Breezer Light. It consists of the same recipe as the regular Breezer, but with sugar substitutes so that it contains less calories. Colours and flavours will be similar to the ordinary Bacardi Breezer.
Primary target market is the group of outgoing, fun loving women aged 25-39. As a secondary market we also target our current market of women aged 18-24. The positioning of the product and the positioning statement are explained below.
We aim to become a market leader in the Light category, just like in the regular RTD category. In order to gain a substantial market share we will launch a massive marketing campaign. Bacardi Breezer Light will be the 2005 Summer hit. To reach that objective, the marketing campaign will start in spring 2005.
Distribution of Bacardi Breezer Light will take place through the already existing distribution channels. A push strategy, aimed at approaching the market through these distribution channels is the appropriate strategy. Penetration pricing will be used. The product is priced artificially low so that the distribution channels will be able to invest heavily in the promotion of the product. Once market share is accomplished, the price will be increased. Retail price should be in line with the premium price set for the regular Bacardi Breezer product.
To support awareness and image a media campaign will be launched, consisting of among others TV, radio, billboard and magazine advertisements starring Lady Cat. The media mix is described extensively below. PR is used to target our market directly through sponsoring of events that have a similar audience.
Annual sales of Bacardi Breezer Light will amount to £1.2 million in 2005. The launch of Bacardi Breezer Light will have some effect on the sales of the regular Bacardi Breezer. In our financial projections we therefore allow for some cannibalization as a result of the introduction. For the detailed financial projections we refer to chapter 6 of this Strategic Marketing Plan.
The implementation of the new Bacardi Breezer Light and the marketing campaign supporting this introduction will be run as a multidisciplinary project.
Bacardi-Martini Ltd. (http://www.bacardimartini.co.uk)
In 1839 Don Facundo Bacardi y Maіу immigrated to Santiago de Cuba from Spain. After years of experimentation he perfected a lighter and milder rum than the rough and unrefined traditional rums of the time. Taking the image of the fruit bats that lived in the rafters of his tin-roofed distillery, he created the brand that became known to the world as BACARDI Rum. It prospered for years with its secret rum recipe. After the Spanish-American War of 1898, Bacardi gave the world the Cuba Libre and the Daiquiri. The company grew steadily, aided by a stream of Americans visiting Cuba during prohibition in the 1920’s. Bacardi began opening distilleries around the Carib-bean and was firmly on the way to globalization when prohibition ended in 1933.
In the 1950’s, the political regime of Cuba became increasingly unstable. In 1960, the government seized Cuban businesses and confiscated all Bacardi’s assets. The Bacardi family fled to exile in Nassau, Bahamas, where they continued to manufacture BACARDI Rum with the secret recipe and processes that they had used in Cuba. In the years that followed, BACARDI Rum overtook every major spirit brand to become the number one selling spirit brand in the world.
In June 1989, a joint venture was established between Bacardi and Martini to look after the bottling, distribution and marketing of BACARDI Rum and MARTINI Vermouth in the UK. This was located in Southampton, the site of Martini’s bottling plant since 1975. Since the joint venture Bacardi-Martini Ltd. has grown rapidly in volume, profit and employees.
These purchases propelled Bacardi Limited to the position of one of the top five spirits companies in the world. Today, Bacardi Limited remains the only major privately held Spirits Company, with more than 6,000 dedicated employees, and sales in excess of 60 million cases per year in 170 nations. After six generations of Don Facundo’s descendants being directly involved in the business, Bacardi takes pride in its position as the producer of “The world’s great rums since 1862.”
As well as BACARDI Rum, the world’s largest premium spirit brand, and MARTINI Vermouth, the world’s largest wine-based brand, the company markets many brands including; Bacardi Breezer, Bacardi Carta Blanca, Finlandia Vodka, Metz, Bombay Sapphire and Martini Asti. Bacardi & Co is a private company, not a PLC, so consequently we don’t produce annual reports and our only shareholders are members of the Bacardi family.
Today, the BACARDI Bat is a welcome character in more than 170 countries around the world where Bacardi rum is enjoyed. Bacardi Breezer is currently available in the UK, USA, Canada, South Africa, Hungary, Mexico, Bahrain, Israel, Malta, UAE, Australia, China, Japan, Singapore, Philippines, Thailand, Andorra, Austria, Belgium, Denmark-domestic, Denmark-DF, Greece, Germany, Italy, Netherlands, Portugal (tourist areas) and Spain (tourist areas), Estonia, Latvia, Sweden, Finland and Nor-way. There are plans to launch Bacardi Breezer in other markets.