Angostura Aromatic Bitters’ marketing plan Essay

1. Executive Summary1.1 compendium of the SituationThe history of angostura bark remindful bitterly approaches the year of 1822, when a cholera epidemic whipped the nation of angostura in Venezuela, when the young heal Johann Gottlieb Benjamin Siegert created a somewhat bitter medicine, quite unusual savour, only when of proven volatilities effectively relieve the stomach of his many patients.This potion was composed of oer 25 botanicals in abundant natural reserves of these tropical lands, including fruits, roots, herbs seeds, bark, and agood amount of brokers whose name and proportion rebriny, even today, in the strictest secrecy. In 1830 a distillery installed and did not train long to become no elude on the continent, winning the gold medal at the World disposition in Vienna in 1873.After the death of Siegert in 1870, the family go in 1875 to Trinidad and Tobago where there continues today lease the angostura redolent bitters, preserving their behalf to have got the Venezuelan source most of their inputs to date, as hygienic as in addition the peculiar label in four langu climb ons and signature of its inventor, who since then characterizes it.Its initial occasion was to relieve some stomach ailments. But some superfluous do goods subsequently discovered is that the strengthened the taste of certain feeds and cocktails preparations, which get along era disappear from kits home and hospital to become a common segment in bars and kitchens around the world .Today is a unparalleled ingredient in the preparation of cocktails and is as well used as a seasoning for soups and sauces.Drops of angostura smelling(p) bitters is exchange in elegant bottles of 100 cc and 200 cc, the most famous and popular notice angostura remindful bitters.Usually drops in beverages (G & T, Mojito, Cuba Libre, Pisco sour), classic cocktails like the Manhattan, bubbly Cocktail, etc. used and refreshments as LLB (Lemon Lime & bitter) or Fantasia Rock Shandy, The Chapman, The Gunner.shortly in the Colombian trade there is not drop bitters, there atomic number 18 theme essences bitter which are manufactured by CONDICOM and Productos El Bosque, which cod the basic condiments for cooking. These national essences bitter have an inebriant contented of 3 degrees, which educates you need to use a larger amount of yield per cocktail or preparation, unlike drops angostura bark resonant bitters which have an alcohol content of 44.7 degrees making them stronger and with 2 or 3 drops per cocktail is enough to give the mixture,not only because of its alcohol content moreover the strong sea tangle of the merged its ingredients.The category of biters brings sustainable growth in the global market place of 4.7% in the last 5 years (Source International Wine & olfactory modality Research). angostura bark is still the leader in this category of bitter.1.2 Key aspects of the market planWe unavoidableness to be the exclusive distri butor of Angostura aromatic bitters in Colombia. For this reason, we have to import the ware, market and build carry image of Drops of Angostura aromatic bitters in the province. Also, position the product as a reference category.The key factors of this marketing plan areComply with the requirements of law, such as trademark allowance and authorization. The trademark registration protects the producer (trademark owner) against any misuse of it by a third this story is valid for 10 years. The health record is the guarantee that emits a establishment institution, which certifies that a product is fit for human consumption. Segment drops Angostura aromatic bitters into two dispersal bring, which would be the ON-PREMISE (hotels, restaurants, coffee shops and bars) and OFF-PREMISE big retail channel. Define the cities in which the product and the strategic trade partners (sub-distributors) through which go out be sell. Define the selling value to the various distribution chann els which through which we impart r from each one the consumer. shoot activities that generate image and check recall, such as trainings, competitions of cocktails, sponsor cocktails menu, accompanied by free-press training in each activity.2. Environmental analytic thinkingColombia is a country with a population of 48,321,405 heap (2013 estimates, source DANE), it is in the 28th position in the table of population composed of 183 countries and has a moderate population density of 42 inhabitants per km2.At 2013 the Gross Domestic Product (GDP) in Colombia recorded an append of4.9%, according to data provided by the DANE. Investment and consumption showed a big(p) performance. The sectors driving growth in 2013 were mining and quarrying (4.9%) electricity, gas and pissing city (4.9%) financial institutions, insurance, real estate and business services (4.6%) trade, pay services, restaurants and hotels (4.3%) Transport, storage and communication (3.1%).Source http//es.tradin geconomics.com/colombia/gdpColombia is the fastest growing de conkry in Latin America, surpassing the Pacific Alliance (Colombia, Chile, Peru and Mexico). In turn, the country ranked 15th in growth in a attempt of 75 nations.Source world bankThe 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 portion of GDP that the country reinvests, reached 28.4%, the advancedest in half a century and the foster in the region. Another important fact is that the force that is moving the prudence 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 string of this has to do with the better performance of income and a higher level of confidence.As for imported animate market figures in Colombia by categories to December 2013 in boxes of 12 bottles 9 liters each one, a reAlcoholic beverage moment 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 concentration and high level of alcohol, making the product more efficient. Strong price position (inelastic).Rich in heritage and legacy (royal warrant).The product is nonperishable.Angostura depart continue to make a consistently high quality product that volition make peoples feed and drink recipes come alive.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, passion and attitude, and inject a little more irreverence. In ten years from now Angostura aromatic bitters will revolutionize the cocktail manufacturing again and Angostura will be as popular 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 step to life).WeaknessesLow visibility at stage of sale (especially ON-PREMISE channel). Consumption value payable by the category, increasing the price.2.2 Opportunities and threatsOpportunities before long in Colombia the food industry (food and drink) is booming, a growth in new years and still considered one of the 4 most important gastronomical 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 recognize brand in the world. Partnerships with other major spirit brands. Partnership with Pernod Ricard and Monin. Improvements do into accessing new markets.Partnership with Bartender Guilds and Associations (The Golden Service, BAR) and schools of mixology. Slow food to benefit on opportunity. electric currently the non-alcohol cockt ails are booming.ThreatsIn Colombia the regulation of alcohol consumption is truly strong. Financial monopoly, departments control the marketing of alcoholic beverages within its territory, to pass or prohibit the entry 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 spud international brands reach (Fees Brothers, Bitter truth, Peychauds, Bitter Cube, Bittermens).This good-hearted product does not enough known in the Colombian market.2.3 Current objectives and performanceThe current objectives areEnter the brand in Colombia.Develop nonexistent bitters category. manufacture image and brand awareness to procure 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 olfactory perceptions and they are very susceptible to trends. availability of Substitutes The bitters drops have no substitutes, as a droll 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 anesthetic brand competitors, but they are not hard bitters (drops), they are essences.3. tradeing Strategy3.1 SegmentationAs we mentioned above, Angostura smelling(p) bitter are used to be added to the cocktails and food to create new possibilities of flavor a nd a whole range of new and exclusive beverages and dishes.Due to the Angostura smelling(p) bitter conditions as an alcoholic beverage for the Colombian market (according with the requirements from INVIMA), Angostura redolent(p) Bitters has to pay a special tax. For that reason, the price is higher than the Colombian competitors.Angostura Aromatic Bitters segmentation is specify 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 areas cityBogot, Cali, Medelln, Barranquilla, Cartagena, Santa Marta, Pereira, Manizales, Bucaramanga DensityUrbanDemographic ageAbove 18 sexMale and femaleReligionAll. The product has a kosher securitySocial classMiddle, upper meat and upper classesBehavioral occasionRegular and special occasionsSegmentation variables for Angostura Aromatic Bitters business markets DemographicHotels, restaurants, bars, coffee sho psIt does not matter the size find in major cities in ColombiaOperating variablesCustomer who use to drink cocktails and gastronomyPurchasing approachesHotels, restaurants, bars and coffee shops who wants to be opposite, to supply a different and new cocktails age, to offer to their customers a high quality alcohol and non-alcohol beverages. Situational factorsWe focusing 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 groceryAccording with the segmentation, the Angostura Aromatic Bitters targets arethe chief(prenominal) and good example 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 possibility 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 ain passion to create a high quality product to develop 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 Product consider and recognized as the leader in aromatic bitters intercontinental no bar or kitchen is complete without it. Angostura Aromatic Bitters is a high quality product produced from alcohol and many others aromatic plants. Uniq ue 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 cl countries worldwide.Kosher Certified.Tempers the acidity of citrus ingredients for individuals who are acid sensitive (also explains wherefore 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 book of account, each drop contains an unnoticeable 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 consanguinity is higher.Through these features, we want to develop and add value to the Angostura Aromatic Bitters consumers and the brand, in order to be successful in Colombia as the product has had successfully in the world.The pri ce of the Angostura Aromatic Bitters make possible to generate revenues to all the different actors tangled 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%one hundred eighty29011.40.13Colombian 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 pricemerchandising Price from producer to distributor3.6Distributor final price aft(prenominal) import and taxes4.50.925%Selling price distributor to allied distributors8.23.782%Selling price allied distributors to final consumer11.43.239%4.3 Promotion using up the original Angostura aromatic bitters webpage to show what the product is and some(prenominal) recipes. Create a viral marketing using Facebook, Twitter, Instagram, Pinterest to show the product. victimisation the mixologists network to develop the brand and products uses. Create 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 between 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 conduct consumers highlighting their creativity 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 period of contest, the winners will be adju dged 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 lines to teach people the uses of the product. Involve the use of the product in TV vary food and beverage shows (free-press). Make free samples to the launch time, in order to appoint 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 statistical distributionThe Angostura aromatic bitters will have the next logistics to make the distribution1. The company sells us the product directly from their manufacturing plant hardened at Trinidad and Tobago. 2. We import the product to our store located in Cali Colombia. 3. We will have one distributor fo r 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 metrics, also external and internal External metricsMetricMeasureMar ket share per volumeAngostura aromatic bitter volume of bottles sell versus natural 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 satisfactionSurveys results from 90% of total Angostura aromatic bitter customer (hotels, restaurants, bars)LoyaltyPercentage 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 grasp by periodEmployee satisfactionInternal survey resultsSkill levels experience 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 Surv eysDirect customer and channels control visitsstatistical beverages consumerStatistical sellsStatistics presence of the product in customers.