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MARKETING PLAN

Miller Genuine Draft Light 64 Calories


Table of Contents

1 - Executive Summary

2. – Situation Analsys
2.1. – History
2.2 – Macro-Economic Indicators
2.2.1 – Real Situation
2.2.2 – Demographic data
2.2.3 – Consume
2.3 – Competitors Analsys
2.4 - SWOT Analsys

3 – Mission

4 – Segmentation and Targeting

5 – Positioning

6 – Marketing-Mix
6.1 – Product
6.2 – Price
6.3 – Placement
6.4 – Promotion
6.4.1 – Strategy
6.4.2 – Media Plan
1 – Executive Summary

In this marketing plan we present a new product:


Miller Genuine Draft Light 64 Calories

The release of the product in the market is described below.

1. Analysis to the company history followed by external environment


(macroeconomic indicators, competition and SWOT).
2. Strategy to use (mission, segmentation and positioning, and all the
marketing mix variables).

According to our market research we identified a new market opportunity.


A new kind of consumer is starting to appear and the main characteristic is
people who are worry with their fitness: who want a low calories beer.
Our company develop a strategy to satisfy that need and produced a media
plan to announce the product to the Portuguese market.
The Miller Genuine Draft Light 64 Calories intends to be a complete
innovative product maintaining the tradition and quality.
2 – Situation Analyses

2.1 – History

Miller Brewing Company was founded in 1855 by Frederick Miller when he purchased the
small Plank-Road Brewery. The brewery's location in the Menomonee Valley provided easy
access to raw materials produced on nearby farms.

On September 19, 1966, the conglomerate W.R. Grace & Co. agreed to buy 53% of Miller from
Mrs. Lorraine John Mulberger (Frederick Miller's granddaughter who objected to alcohol) and
her family. On June 12, 1969, Philip Morris (now Altria) bought Miller from W.R. Grace
for US$130 million, outbidding PepsiCo. On May 30, 2002, it was acquired by South African
Breweries from Philip Morris for US$3.6 billion worth of stock and US$2 billion in debt, to
form SABMiller; with Philip Morris retaining a 36% share at that time, with voting rights of
24.99%.

On August 14, 2006, Miller Brewing announced it had completed the purchase
of Sparks and Steel Reserve brands from McKenzie River Corporation for US$215 million
cash. [2] Miller had been producing both products prior to this purchase.[2]

On October 9, 2007, SABMiller and Molson Coors agreed to combine their U.S. operations in a
joint venture called Miller Coors. SABMiller is to own 58% of the unit, which is to operate in
the U.S. and Puerto Rico but not Canada, where Molson Coors is strongest. Molson Coors is to
own 42%, but the parties are to have equal voting power.[3]
2.2 – Macro-Economic Indicators

2.2.1 – Real Situation (Analyses of the Biggest Competitor Year 2009)

The Portuguese market for beverages, especially beer and carbonated waters, in 2009 was
negatively affected by recessionary economic environment, with a sharper decline in
consumption away from home and affecting especially the northern region (where the single
group has greater penetration and increased competitive advantage). Angola (second market
more important to the Group), the impact of global economic crisis made itself felt highest
levels of substitution in consumption of imported beer for beer locally produced (as a result of
import restrictions due to lack currency) than in the evolution of beer consumption, which
continued to
grow, albeit at a slower pace than in previous years. For replacement of imported beer for
beer produced locally also helps strengthen the capacity and aggressiveness competitive
operators installed locally. In this context, Group turnover Unicer fell 4.2% in 2009, reflecting
a decrease the volume of drinks sold (with decreases in the market domestic and exports), a
negative effect of changes in the structure products / markets and a decline of average selling
prices, particularly domestically, due to the depressed market environment and aggressive
competition, and allowed for lower prices of raw materials and packaging.

The reduced activity of the Group Unicer was offset by lower fixed costs resulting from the
restructuring process and there is a 2.3% increase in EBITDA to € 89.6 M in 2009. Despite this
increase, operating income decreased 5.8% to 49.3 M €, mainly reflecting the increase in
depreciation (resulting from increased investments in 2008). The Group's net profit Unicer
increased 10.8% in 2009 to € 20.2 M, benefiting with the development of operating result in
significantly better financial results (mainly reflecting the impact of reducing interest rate
market).
2.2.1 – Demographic Data

Population

48%
52%

Homens
Mulheres

Age Distribution

1.084.557

Mulheres 3.605.237

791.932
65 +
15 - 64
0 - 14
777.463

Homens 3.529.234

833.990

0 1.000.000 2.000.000 3.000.000 4.000.000

As we verified in the previous graphs, the Portuguese population becomes


separated in 52% of women and 48% of men. We also observe that in both sexes,
the predominant age class is the one of the 15 to the 64 years.
Portuguese Market Value
200.000.000
198.861.138
198.000.000

196.000.000
195.234.123
194.000.000

192.000.000

190.000.000 Portuguese Market Value


188.918.081
188.000.000

186.000.000

184.000.000

182.000.000
2007 2008 2009

The Portuguese beer consumption marke


markett is very attractive. As we can see in the
previous graphs, the beer consumption grows 5% in value between 2007 and 2008 but
drop 3% in 2009. Besides this last year drop it stills a very nice market.

2.4 – Competitors Analsys


Market Share Brand
40% 37%
35% 33%

30%
25%
20%
15%
Market Share Brand
10% 6% 7% 7%
5%
5% 3%
1% 1%
0%

Market Share By Product


Coral 1%
Tuborg 1%
Carlsberg 3%
Super Bock Stout 3%
Heiniken 5%
Cristal 6%
Others 7%
Tagus 7% Market Share By Product
Super Bock S/ Alcool 7%
Sagres Bohemia 7%
Sagres Zero 10%
Sagres Normal 20%
Super Bock Normal 23%

0% 5% 10% 15% 20% 25%

As we verified in the previous graphs, the Portuguese Market consists of two big
competitors: Super Bock, Sagres. These two competitors represent 70% of total
Portuguese Market Value.

However as we have a different and revolutionary product, we will focus on non


alcohol market because this market has the kind of consumers we pretend to
reach. This market as 20% of the global market share. In this share we pretend to
reach the 30% of share in 3 years.
2.5 - SWOT Analysis

SWOT Analysis is a strategic planning method used to evaluate the Strengths,


Weaknesses, Opportunities, and Threats involved in a project or in a business venture.
It involves specifying the objective of the business venture or project and identifying
the internal and external factors that are favorable and unfavorable to achieving that
objective. Here is the SWOT Analysis for our new product – MGD 64.

Strengths • Financial power


• 3º world biggest beer producer
• He/she formulates dietary
• New patent

Weaknesses • Lack of Brand Awareness


• Distribution costs
• Non European Brand

Opportunities • Volume of it consummates


• Segments no satisfied
• Concerns of health
• Taxes of growth of this market segment

Threats • Aggressive competition


• Advertising restrictions
• Low alcohol level

3- Mission

MillerCoors wants to become the best beer company in Portugal.


We’re a new company with big ideas and innovations that can create new energy in the
Portuguese beer business. We have great enthusiasm for the business and tremendous
potential to improve it.
We’ll do that through a combination of great brands, talented people, strong partnerships and
the scale that our new company brings us.
We believe in brands, and we’re determined to build the best portfolio of beer brands in the
business, by listening carefully to beer drinkers and understanding what they want today—and
today
what they’ll want tomorrow.
We’re building a true team of highly talented people who are passionate about the beer
business, who love to win and learn, and who aim to amaze ev
every
ery customer by doing the little
things that make a big difference.
We want to be the best partner for Portugal beer distributors and retailers, constantly bringing
our customers profitable growth.
And we offer more value to our customers, communities, emp employees,
loyees, and owners as one
company than two. We will deliver savings that will provide the resources to significantly raise
our investment in our business.
We are confident that our business will grow, and we are focused on growing it the right way,
with responsible
sponsible marketing practices, sound environmental decisions and strong community
partnerships.

4 – Segmentation and Targeting

Beer Consumption by sex

39%

Male
61%
Female
Growth tax of beer consumption by sex
(%)

3%
Male

Growth tax of beer


consumption by sex (%)

9%
Female

0% 2% 4% 6% 8% 10%

70%
Beer Consumption by Age/Sex
59%
60%

50%
42%
40%
18-30
30%
30% 28% 28% 30-45
45+
20%
13%
10%

0%
Male Female

With this analysis,, we decide that our target market will be:

 Women and Men


 From 30 to 45+ years old
 All social classes

5 – Positioning

Definition: How you differentiate your product or service from that of your competitors and
then determine which market niche to fill.

Positioning helps establish your product's or service's identity within the eyes of the purchaser.
A company's positioning strategy is affected by a number of variables related to customers'
motivations and requirements, as well as by its competitors' actions.

Miller Genuine Draft Light 64 Calories will be an innovative low calorie beer for all persons
that like to join the life with health conducts, and belongs to high social class.

6 – Marketing Mix

Marketing Mix is the combination of marketing elements used in the sale of a particular
product. The marketing elements center around four distinct functions, called the Four
Ps: product, price, place (of distribution), and promotion. All these functions are considered in
planning a marketing strategy, and any one may be enhanced, deducted, or changed in some
degree in order to create the strategy necessary to efficiently and effectively sell a product.

6.1 – Product

MGD 64 is the perfect choice for consumers striving to maintain a sense of balance throughout
their busy lifestyle. Not only does the fresh, crisp flavour make each social gathering a
revitalizing experience, but with only 64 calories and 2.4 carbs, MGD 64 is a guiltless pleasure
for moments of relaxation. No other beer has fewer calories or carbs.

Packaging

• Material : Glass
• Color : Clear
• Attributes :Slim
• Size : 26 cl
• Other characteristics : easy opening

6.2 – Price

High Price based in 2 pricing politics:


 Price Skimming
Price skimming is a pricing strategy in which a marketer sets a relatively
high price for a product or service at first, and then lowers the price over
time. It is a temporal version of price discrimination management. It
allows the firm to recover its sunk costs quickly before competition steps
in and lowers the market price.

 Value perception
Value Perception (VP) is the opinion your potential and current
customers have of your product. This perception determines the value it
adds to them in line with the problems it needs to solve or aspirations
they want it to fulfill. Also evaluated is your offering’s relevance and
importance, over and above that of your competitors.

6.3 – Placement

First we will choose a non commercial beer placement. We implement a placement


strategy, placing the product in selected places. The first appearance will be on
restaurants and nightclubs.

Later, we will choose a mass placement strategy, placing the product in all points of sale.

6.4 – Promotion
• Main events sponsoring
• VIP parties sponsoring
• Use of public figures
• People identified with the brand characteristics
• TV
• Man magazines
• MillerCoors is deeply committed to promoting responsible consumption

No matter what the circumstance, drunk driving is completely preventable.

MillerCoors drunk driving prevention programs, tools and partnerships help


promote responsible consumption and help our legal-age consumers get home
safely.

You Hold the Key. Never Drive Drunk reminds


consumers that planning ahead is key for enjoying
alcohol products responsibly. By arranging safe rides
home by cab, public transportation or designated driver,
MillerCoors reminds our consumers they have the ability
to take responsibility into their own hands and get home
safely.

MillerCoors partners with the main taxis


associations of the districts capitals, to promote
the Never drive drunk campaign. In every
packaged of miller’s a national phone number is
printed to consumers call their safe home
transportation.

6.4.1 – Strategy

Attributes to forward:

- Athletics body
- Young (18 to 30 segment)
- Slim and Elegant
6.4.2 – Media Plan
Media is essential in promoting our event and our message. In our marketing plan we will use:

6.4.2.1 - News Advisory

• A Newsletter will be provided online

• Alert media about the event

• Release 1 week before the event

6.4.2.2 - Local Media Calls

• Follow up News Advisory with personal invitation request

• Complete 3 days prior to event

6.4.2.3 - Press release

• Press release will be submitted on event day

Media Release:

64 Calories of Fresh-From-the-Tap Taste … Now Available on Draft at Bars In Portugal

Lisbon,1 may 2010 — MGD 64, one of the fastest growing new brands in the American beer
business, will be available on draft in bars and restaurants all over Portugal. MGD 64, which
launched nationally in June, also is available in multiple bottles and can packages.

MGD 64 combines the light, crisp drinkability and refreshment that results from just 64
calories and 2.4 grams of carbohydrates with the “fresh-from-the-tap” taste for which Miller
Genuine Draft has been known since 1986. The launch of MGD 64 on draft will give legal-
drinking-age men and women one more way they can enjoy the brand.

“Restaurants and bars in Portugal are increasingly looking to cater to consumers who want to
enjoy a night out with friends but still want to be conscious of their caloric intake,” said
Ricardo Serrador, MGD senior marketing director. “With MGD 64 now available on draft, beer
drinkers can enjoy the brand’s ‘as light as it gets’ combination of crisp, clean and refreshing
flavor, with significantly fewer calories than other alcohol beverage choices.”

In fact, MGD 64 proves to be the lighter alternative to other drinks as well:


· A 6-ounce glass of red wine contains 128 calories.
· A 6-ounce gin and tonic contains 172 calories.
· A 6.5-ounce margarita contains 246 calories.

To start the New Year the right way, MGD 64 is offering the “Resolution Revolution,” reaching
out to consumers during “moments of reward and refreshment,” Ricardo Serrador said. The
promotion features partnerships with Shape and Men’s Fitness magazines, which will provide
advice on maintaining New Year’s resolutions at http://www.mgd64.pt. At participating
grocery stores, legal-drinking-age consumers can get a free booklet with tips for living a
healthy lifestyle and coupons for a variety of relevant products.

“MGD 64 lets men and women enjoy their beer while maintaining an active lifestyle,”
McLenahan said, “with only 64 calories and the fresh-from-the-tap taste American beer
drinkers expect from MGD.”

MillerCoors
CONTACT: Nuno Baltazar of MillerCoors, +1-414-931-3848,
nuno.baltazar@millercoors.pt

Web site: http://www.mgd64.pt

6.4.2.4 - Advertising

• We will advertise our event in the newspapers, magazines, on local radio stations and
online and national TVs.
6.4.2.5 - Press Packets

• Media attendees will be provided at the day of the event

• We will include the following in the press packet:

• Event Overview (online)


• Event Program
• News Advisory & Press release

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