Angostura Aromatic Bitters’ marketing plan Essay

1. Executive Summary1.1 Synopsis of the SituationThe account of angostura bark redolent change taste approaches the year of 1822, when a cholera epidemic whipped the population of angostura bark in Venezuela, when the young doctor Johann Gottlieb Benjamin Siegert created a somewhat bitter medicine, quite unusual judgement, but of be volatilities effectively relieve the stomach of his many patients.This potion was composed of over 25 botanicals in abundant bumcel reserves of these tropical lands, including fruits, roots, herbs seeds, bark, and agood amount of ingredients whose name and proportion remain, even today, in the strictest secrecy. In 1830 a di motionlessery inst all in alled and did non take long to give-up the ghost famous on the continent, winning the grand medal at the World Exhibition in Vienna in 1873.After the death of Siegert in 1870, the family moved in 1875 to Trinidad and Tobago where there continues today making the angostura smelling(p) bitters, preserv ing their behalf to keep the Venezuelan reference point most of their inputs to date, as well as also the peculiar label in four langu eons and tactual sensation of its inventor, who since then characterizes it.Its initial hire was to relieve some stomach ailments. But some additional benefits by and by discovered is that the strengthened the taste of certain intellectual nourishments and cocktails preparations, which made time disappear from kits home and hospital to become a common ingredient in bars and kitchens around the world .Today is a preciously ingredient in the preparation of cocktails and is also utilise as a seasoning for soups and sauces.Drops of angostura resonant bitters is exchange in dwarfish bottlefuls of 100 cc and 200 cc, the most famous and familiar betray angostura smelling(p) bitters.Usually drops in drinks (G & T, Mojito, Cuba Libre, Pisco sour), classic cocktails like the Manhattan, Champagne Cocktail, etc. used and refreshments as LLB (Lemo n Lime & change taste) or Fantasia Rock Shandy, The Chapman, The Gunner.Currently in the Colombian market there is not drop bitters, there atomic number 18 national essences bitter which are manufactured by CONDICOM and Productos El Bosque, which bind the basic condiments for cooking. These national essences bitter stool an inebriantic drink content of 3 degrees, which makes you need to use a larger amount of ingathering per cocktail or preparation, unlike drops Angostura aromatic bitters which waste an alcohol content of 44.7 degrees making them stronger and with 2 or 3 drops per cocktail is enough to make the mixture,not just now because of its alcohol content but the strong intent of the merged its ingredients.The house of biters brings sustainable growth in the spherical market of 4.7% in the last 5 years (Source International Wine & Spirit Research). Angostura is take over the draw in this category of bitter.1.2 Key aspects of the merchandise planWe want to be th e exclusive electrical distributor of Angostura aromatic bitters in Colombia. For this reason, we have to import the fruit, market and build brand scene of Drops of Angostura aromatic bitters in the country. Also, position the product as a reference category.The discern factors of this marketing plan areComply with the requirements of law, such(prenominal) as trademark enrolment and authorization. The trademark registration protects the producer (trademark owner) against any misuse of it by a third this register is valid for 10 years. The health record is the guarantee that emits a government institution, which certifies that a product is fit for human utilisation. Segment drops Angostura aromatic bitters into dickens distribution channels, which would be the ON-PREMISE (hotels, restaurants, chocolate bean shops and bars) and OFF-PREMISE big sell channel. Define the cities in which the product and the strategic trade partners (sub-distributors) through which exit be sell . Define the selling impairment to the non-homogeneous distribution channels which through which we will reach the consumer. Develop activities that generate image and brand recall, such as trainings, competitions of cocktails, sponsor cocktails menu, accompanied by free-press training in each activity.2. Environmental outlineColombia is a country with a population of 48,321,405 people (2013 estimates, source DANE), it is in the 28th position in the slacken of population composed of 183 countries and has a moderate population density of 42 inhabitants per km2.At 2013 the Gross domesticated Product (GDP) in Colombia recorded an increase of4.9%, according to data provided by the DANE. Investment and consumption showed a great motion. The sectors driving growth in 2013 were mining and quarrying (4.9%) electricity, gas and water city (4.9%) financial institutions, insurance, real estate and care services (4.6%) trade, repair services, restaurants and hotels (4.3%) Transport, sto rage and communication (3.1%).Source http//es.tradingeconomics.com/colombia/gdpColombia is the instant(prenominal) growing economy in Latin America, surpassing the Pacific Alliance (Colombia, Chile, Peru and Mexico). In turn, the country stratified 15th in growth in a sample of 75 nations.Source world pious platitudeThe unemployment rate in Colombia in 2013 on an urban scale, in the 13 largest cities is 8.7 percent, the lowest since 1995.The investment rate, the dowery of GDP that the country reinvests, reached 28.4%, the superiorest in half a century and the second in the region. Another primal fact is that the force that is moving the economy is internal. Government consumption is growing at rates of 5.7% and 4% households. Within the household consumption stand purchases of durable goods, which accelerated during the third quarter of this has to do with the relegate performance of income and a luxuriouslyer level of confidence.As for imported spirits market figures in Col ombia by categories to December 2013 in boxes of 12 bottles 9 liters each one, areAlcoholic beverageNumber boxeswhisky403,189Vodka66,195Gin20,578Brandy and cognac1,532Ron205,518Tequila58,413Wine1,178,7582.1 Strengths and weaknessesStrengthsRecognized as 1 in the world (large gap vs. competition).High parsimony and high level of alcohol, making the product more efficient. Strong cost position (inelastic).Rich in heritage and legacy (royal warrant).The product is nonperishable.Angostura will continue to make a consistently high quality product that will make peoples nutriment and drink recipes come a drop dead.Angostura train people in the classics, as well, as the cutting edge to make them better bartenders and cooks.Angostura will no longer see itself as traditional and old-fashioned, Angostura will exhibit flare, honey and attitude, and inject a little more irreverence. In ten years from now Angostura aromatic bitters will revolutionize the cocktail industry again and Angostura will be as best-selling(predicate) a food ingredient as Lee & Perrins.Angostura is one of the most iconic brands in the world. The rich, dark and mysterious liquid adds a distinguishable color and taste to all its creations (adding color and flavour to life).WeaknessesLow visibility at point of sale (especially ON-PREMISE channel). Consumptiontax payable by the category, increase the price.2.2 Opportunities and threatsOpportunitiesCurrently in Colombia the food industry (food and drink) is booming, a growth in recent years and still considered one of the 4 most important gastronomic destinations in Latin America.There is no category of bitter in Colombia and would be the first brand in this category, entering with the most recognized brand in the world. Partnerships with other major spirit brands. Partnership with Pernod Ricard and Monin. Improvements made into accessing new markets.Partnership with Bartender Guilds and Associations (The grand Service, BAR) and schools of mixolo gy. Slow food to capitalize on opportunity. Currently the non-alcohol cocktails are booming.ThreatsIn Colombia the regulation of alcohol consumption is very strong. Financial monopoly, departments control the marketing of alcoholic beverages within its territory, to authorize or prohibit the portal of such products. Changing landscape of tax structure.Parallel Trade.Currently in Colombia there are two national brands of essences of bitter, which are CONDICOM and Productos el Bosque. In the future when the category of bitter drops will be gravel international brands reach (Fees Brothers, Bitter truth, Peychauds, Bitter Cube, Bittermens).This kind product does not enough known in the Colombian market.2.3 Current objectives and performanceThe current objectives areEnter the brand in Colombia.Develop missing bitters category. relieve oneself image and brand awareness to achieve the referent category in Colombia.The performance of the marketing plan will be described in the following sections.2.4 Five forces Porter analysisThreat of New Entrants Capital, economic muscle, expertise, brand, regulation, taxes. Power of Suppliers The Angostura aromatic bitters business in Colombia has only one supplier who is the company who made the product. For this reason, the supplier is extremely susceptible to the demands and requirements of the market and hold very high power. Power of Buyers The consumers of cocktails and food in Colombia are very price sensitive, but they want to taste new flavors and they are very susceptible to trends. Availability of Substitutes The bitters drops have no substitutes, as a unique flavor enhancer with the ability to marry flavors in the preparation of all food dishes. competitive Rivalry the market of bitters in Colombia has two local brand competitors, but they are not concentrated bitters (drops), they are essences.3. commercializeing Strategy3.1 SegmentationAs we mentioned above, Angostura resonant bitter are used to be added to the cocktails and food to create new possibilities of flavor and a whole spue of new and exclusive beverages and dishes.Due to the Angostura Aromatic bitter conditions as an alcoholic beverage for the Colombian market (according with the requirements from INVIMA), Angostura Aromatic Bitters has to pay a special tax. For that reason, the price is higher than the Colombian competitors.Angostura Aromatic Bitters segmentation is defined in the two next tables related with the consumer and business marketsSegmentation variables for Angostura Aromatic Bitters consumer markets Geographic regionSouth, north, and central Colombian areasCityBogot, Cali, Medelln, Barranquilla, Cartagena, Santa Marta, Pereira, Manizales, Bucaramanga niggardlinessUrbanDemographic ageAbove 18GenderMale and femaleReligionAll. The product has a kosher certificationSocial classMiddle, swiftness middle and upper classesBehavioral causeRegular and special occasionsSegmentation variables for Angostura Aromatic Bitters business markets DemographicHotels, restaurants, bars, coffee shopsIt does not matter the sizeLocated in major cities in ColombiaOperating variablesCustomer who use to drink cocktails and gastronomyPurchasing approachesHotels, restaurants, bars and coffee shops who wants to be different, to supply a different and new cocktails age, to abide to their customers a high quality alcohol and non-alcohol beverages. Situational factorsWe focus either on large or small ordersPersonal characteristicsWe want to serve whatever hotels, restaurants, bars and coffee shops (ON PREMISE) and big retailers (OFF-PREMISE)3.2 Target Market gibe with the segmentation, the Angostura Aromatic Bitters targets arethe main and representative hotels, restaurants, coffee shops and bars, from the main Colombian cities, who serves the middle, upper middle and upper classes of the population who are above 18 years (the minimum Colombian age to be permitted to a people to drink an alcohol beverage).3.3 Positioning (Value Proposition)Angostura Aromatic Bitters will position itself as the premier and unique enhanced flavor to non-alcohol and alcohol cocktail and food. This positioning will be achieved by leveraging Angostura Aromatic Bitters competitive edge industry experience, innovation hypothesis and high quality.Angostura Aromatic Bitters is a high quality product produced for people who wants to have a new flavor experience related with a non-alcohol and alcohol beverages (new cocktails age) and food.The Angostura Aromatic Bitters company is able to use its vast experience and personal passion to create a high quality product to cave in innovative and new flavored food and cocktails, for the whole cocktails drinkers and people who want to live a new experience about their food.4. Marketing Programs4.1 ProductRespected and recognized as the leader in aromatic bitters worldwide no bar or kitchen is complete without it. Angostura Aromatic Bitters is a high quality product produced from al cohol and many others aromatic plants. Unique flavor enhancer (seasoning) for the preparation of alcoholic and non-alcoholic beverages, as well as, any savory or sweet food dishes. Sodium and Gluten-Free.Exported to 150 countries worldwide.Kosher Certified.Tempers the acidity of citrus ingredients for individuals who are acid sensitive (also explains why Angostura aromatic bitters can settle the stomach). Classified as a food ingredient in many countries (in Colombia isclassified as an alcohol beverage). Although the product contains 44.7% alcohol by volume, each drop contains an insignificant amount of alcohol and therefore remains non-alcoholic. 100% Vegan.Because is more concentrated than the competition product, Angostura aromatic bitters yields more and their cost benefit relationship is higher.Through these features, we want to develop and add harbor to the Angostura Aromatic Bitters consumers and the brand, in order to be successful in Colombia as the product has had succe ssfully in the world.The price of the Angostura Aromatic Bitters make possible to generate revenues to all the different actors involved in the production and distribution chain.4.2 PricingAlthough the price of the Angostura Aromatic Bitters is higher than the Colombian competence, because of the taxes and importation costs, their cost benefit relationship is higher ProductVolume per bottleAlcohol by volumeDrops per bottleDrops per cocktailCocktails per bottleUSD per botleUSD per cocktailAngostura aromatic bitters100 cm344.7% clxxx29011.40.13Colombian essences bitters148 cm33%266.4151850.28The product price is favorable for the dealers allowing them to have a very attractive profit margin100 cm3 bottleUSDRevenues% of priceSelling Price from producer to distributor3.6Distributor final price after import and taxes4.50.925%Selling price distributor to allied distributors8.23.782%Selling price allied distributors to final consumer11.43.239%4.3 PromotionUse the original Angostura aromat ic bitters webpage to show what the product is and several recipes. get a viral marketing using Facebook, Twitter, Instagram, Pinterest to show the product. Using the mixologists network to develop the brand and products uses. make out Youtube videos in order to massify the recipes that used the Angostura aromatic bitters. Createcellular phones applications (android and iphone) to widespread the access to the people to the product and its uses. Make a cross marketing amongst hotels, bars, coffee shops and restaurants and all the places where the product will sell, in order to the people knows the benefits and they can learn how they can use the Angostura aromatic bitters. Create contests in each city to involve consumers highlighting their creative thinking to make new cocktails using Angostura aromatic bitters.The bars, hotels, coffee shops and restaurants would make the winners cocktail available, on drinks menu for duration of contest, the winners will be adjudged via customer sales for cocktail. The winners will participate in a national contest to be the Colombian winner and take the chance to go to the Legends of the Cocktail World Tour. Create learning and e-learning crinkles to teach people the uses of the product. Involve the use of the product in TV narrow down food and beverage shows (free-press). Make free samples to the launch time, in order to distribute it across the main restaurants, hotels, coffee shops and bars in each main city of Colombia, to create product recognition.Through these ways of promoting the Angostura aromatic bitters, we want to get consumers massively to become familiar with the product and its uses.4.4 DistributionThe Angostura aromatic bitters will have the next logistics to make the distribution1. The company sells us the product straight from their manufacturing plant located at Trinidad and Tobago. 2. We import the product to our storage warehouse located in Cali Colombia. 3. We will have one distributor for each main city in Colombia. 4. The selling will be doing by internet, by phone and by visit directly to the client. The dispatching will be centralized from our main warehouse and with the application system help, the product will be send to each regional distributor in order to be dispatched to each client. 5. The main clients will be the restaurants, hotels, coffee shops and bars located in middle and high income areas of each mains Colombian cities. 6. We will sell the product in selected big retail chains and in wine and spirits specialized stores.5. Evaluation and control5.1 Performance measuresOur strategic objectives areExpand the distribution by placing products in50 retail stores (OFF-PREMISE)15 wine and spirits specialized stores (OFF-PREMISE)1,400 on the ON-PREMISE nationwide.Sale of 80% of first import at year 2015 (4,896 bottles during the year).We will evaluate our marketing plan according with this prosody, also external and internal External metricsMetricMeasureMarket sh are per volumeAngostura aromatic bitter volume of bottles sold versus total bottles of essences bitters sold Market share per valueAngostura aromatic bitter total USD sold versus total USD of essences bitters sold Market share per customersAngostura aromatic bitter total customers versus total bitters customers Consumer felicitySurveys results from 90% of total Angostura aromatic bitter customer (hotels, restaurants, bars)Loyalty theatrical role of customers who changed to the competitorsDistributionPercentage of customers who received on time and full the deliverLearningNumber of courses dictated innate metricsMetricMeasureFinancial goalsPercentage of financial goals accomplish by periodEmployee satisfactionInternal survey resultsSkill levelsKnowledge about the product and its usesLearningNumber of new learning and e-learning course created.RecipesNumber of new recipes created.5.2 Evaluation proceduresThe evaluation procedures we will do to do the performance measures are Surveys head customer and channels control visitsStatistical beverages consumerStatistical sellsStatistics presence of the product in customers.