How do I design an effective marketing proposition for a new craft Vodka BD
22.10.2020 at 12:07 h / Edited 22.10.2020 at 16:05 h
How do I design an effective marketing proposition for a new craft Vodka business?
Flora Strategy Consultant
There are two things that help to build an effective marketing proposition: a great product and a great story. The questions you need to answer are:
1) A great product: What makes your brand of Vodka unique? What qualities does your product have that others do not e.g. what sets its taste apart?
2) A great story: What was the inspiration behind the creation of the brand? If there a compelling story you can share, e.g. about the founders' journey to creating the brand? This will help to create an emotional connection with customers.
Once you have answered the above, you can look at designing your marketing proposition:
1) Market: Who is your target audience?
2) Distribution: Where will you be selling your product ?(online, in store, bars and restaurants,...)
3) Advertising: What is the best way to raise awareness of your Vodka business amongst your customers? (Online advertising, social media, print media, TV, etc)
Hope this helps- any questions, do feel free to get in touch!
Chuck LEAN Business Consultant
The alcohol beverage market is a closed system. In the US what this means is that [removed] account for the [removed] each year. It is important to note that [removed] , despite an onslaught of alcohol advertising.
What that means if you are an alcohol beverage producer is this - you are stealing your customers from somewhere. The question is where.
Now here, there are a number of options. If you are a producer in a certain category, perhaps you are winning over some drinkers from another category - say beer to wine, or vodka to gin. But the switch we are most interested in is this one - a commodity to craft.
Surprising as this may seem to some, the person who determines what somebody is going to buy isn’t the guy who made it, or some marketing exec, or social media influencer, brand ambassador, bartender, or distributor. The person who determines what alcoholic beverage they are going to ask for is, guess what, the consumer.
So, in a closed system where success is measured by winning a consumer from someone else’s product over to your own, it comes down to one thing. The value proposition.
One such value proposition is simple and straightforward - price. The top 10% of drinkers, or 14 million people, [removed] . They only care about one thing, and that is cost. If you are a craft producer, forget these people. They are not your customers.
That leaves you 25% of the drinkers to fight over.
Right now, craft spirits account for 3.8% of the market. That means there are 21.2% more commodity drinkers available for you to win over to craft. In that conversation, what is your value proposition?
If it’s that you make great spirits, then you are missing the point. All your competitors make great spirits, even the commodity ones. Especially the commodity ones. They make better spirits and a larger variety of expressions too. You can’t win anyone over with that value proposition, because they can make them cheaper too.
Your value proposition is that you are craft. And micro. And local. These are all qualifiers that set you apart. They are conditional terms a consumer can use when asking for a product, and they simply cannot be met by a commodity brand.
If we can get 1% more people asking for craft at the bar, restaurant, and liquor store, that is 1% more sales for every craft producer in the market. How do we do that? Through content marketing that communicates the value proposition of craft.
I hope this helps you.
Marieta Lean Consultant Legal Sector
I agree with Flora and Chuck. In addition, I can recommend you to read some of the other similar challenges from businesses and the respective answers their received. You might find something applicable for the Vodka business case: