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DIGITAL MARKETING
Karlien van Rhijn
Amanda
Janie Ansell
5TH LANE LIQUOR
BRANDING
Branding strategies include:
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Expressing key objectives
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Expressing brand message to key target audience
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5th Lane Liqor wishes to be perceived as an upscale liquor merchant
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Motivate buyers by providing a brand that supplies quality liquor to Corporate events
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Increase user loyalty within target market (25-45)
Branding
Strategy
Messaging
Advertising
Websites
Online
purchasing
Sales Tools
Social
media
Pricing
CRM
Brand
Name
5TH LANE LIQUOR
INDUSTRY
Retailers in this industry are involved in selling liquor
including beer, wines, spirits and ready to drink mixers in
packaged form of bottles and cans.
These alcoholic beverages are not for immediate consumption in
the liquor store.
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Most liquor retailers are based in New South Wales, which hosts 44.4% of all stores. Victoria has 23.5% while
Western Australia ranks third with 14.9%. Other states and territories host fewer than 10% of retail outlets. 5 Th
Lane Liquor have two liquor outlets in CBD areas, one in Melbourne and the other in Sydney.
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Woolworth’s enjoys a quarter of market share with its Dan Murphy’s and BWS flagships. Coles Group, whose
brands include Liquorland, Vintage Cellars, Quaffers and 1st Choice, claims 20% of the liquor market, and
smaller players comprise the remaining 55%.
MARKET RESEARCH
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The following 10 websites were analysed
1. Vintage Cellars
2. Dan Murphy’s
3. eBottleO
4. North Sydney Cellars
5. Ice Box
6. Booze Brothers
7. Liquor Home Delivery
8. LiquorLand
9. Celebratons
10. Red Bottle
Only 3 of these competitors distribute in
store AND online to both B2B and B2C
buyers!
(Vintage Cellars, North Sydney Cellars & LiquorLand)
Figure 1.1 IBISWorld Australia 2007 <http://www.smartcompany.com.au/retail/liquor-industry-drowningits-sorrows.html>
SITUATION ANALYSIS
Strengths
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Product range available online and in two
stores
Location of both stores in CBD
Comprehensive product range
Personalised purchasing experience
Trained staff with superior product knowledge
Drive through area with parking
Catering to the needs of connoisseurs,
Pragmatists & Conformists
Weaknesses
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Opportunities
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Premium market leader
Unrivalled product range
Competitive pricing on exclusive products
Forming strategic alliances
Sponsoring corporate events
Interactive website including blog
Target market has greater spending power
than others
Several competitors in immediate vicinity
Lack of 5Th Lane Liquor outlets
Unable to compete with large scale retail liquor
outlets
Only two stores
Economy in recovery after GFC
Minimal range of ‘value’ orientated products
Seasonal sales - Christmas, Easter and NY
Threats
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Cultural shift away from alcohol consumption
Pressure on budgets
Coles & Woolworths expanding aggressive
liquor retailing activities
Economic Crisis means higher inflation rates
which creates value shoppers
Competitors use value strategies
Limited to metropolitan areas
TARGET MARKET
Geographic Segment
• CBD ( Corporate Area )
• Metro Region ( Postage Cost )
Demographic Segment
• ASU 25+ ( Corporate World )
• Male & Females
• Income B2C $45,000 +, B2B $100,000 +
• Higher Education ( Corporate World )
• Gen Y, X & Baby Boomers
• B2B & B2C : Corporates, Businesses & Government sector
Psychographic Segment
Personality Traits : Ambitious, Confident, Knowledgeable, Elegant,
Upper Class, Assertive, Pragmatic, Connoisseur & Conformist
•Behavioural Segment
33 % Will use based on reputation & image
27 % Will take time to find best price available & fastest delivery time
25 % Will take the time to find best available price
15% Will have used before & no need to find new supplier
•Usage Segment
• B2B : $200- $2500/-, Frequency twice a year or less
$2501- 4000/- Frequency 3-4 times a year
$4001+, Frequency 1-4 times a year
$4001 +, Frequency more than 4 times a year
• B2C : $18- $200/-, Frequency twice a year or less
$200 +, Frequency twice a year or less
$18-$200/-, Frequency 3 or more times a year
$200+, Frequency 3 or more times a year
SEGMENTATION
Connoisseur
Conformist
Pragmatist
Key Attitudes
Worth paying a premium
for quality
Knowledgeable about
premium products
Key Attitude
Having something in
common with others
Less knowledgeable
Seeking recognition
Key Attitude
More practical element
Mainstream products
Drivers
Better Taste
More flavoursome
Quality
Drivers
Perceived image
from purchase
Upper class
Drivers
Convenience of service
Not all about the taste
Overall experience
More likely to be:
30-60
Corporate
More likely to be:
30-60
Lower wage bracket
More likely to be:
45+
City dweller, outer city
living
OBJECTIVES
• Increase market share to at least 1.5% by 2012
• Increase sales revenue to achieve gross profits of $1 million
between 2010 and 2011 financial year
• Ensure distribution costs are kept minimal
• Increase brand awareness to 50%
• Achieve effective customer relationship management through
customer memberships
• Achieve successful customer retention and repeat purchases
• Accomplish fluent chain management
E-MARKETING STRATEGY
Product
Price
•5th Lane Liquor products will be mostly premium alcoholic beverage based
•Products available to B2C and B2B
•Market orientated pricing strategy, based on market expectations
•Penetration Pricing
•5th lane liquor will be distributed to all corresponding client requested addresses
Distribu •B2B will be our main distribution point of sale
tion
Promoti
on
RMS
•5th Lane Liquor will be implementing several elements of the marketing communications mix
•Television, Magazine advertising, Radio, Internet promotions, Email campaign, Social media
profiles
•5th lane liquor’s MEMBERS card, which offers specials, discounts, and free delivery when order
exceed a certain amount
IMPLEMENTATION PLAN
Product Strategies
Online
Tangibility elements of website that represent quality and enhance consumer perception
Intuitive navigation, Uniform style throughout site, Logical distribution of pages and links etc
Search Engine
Personalisation of account each time the site is accessed
Aimed at selling – automated recommendations
Extensive product information is available online
Consumers less time to source products
Wide range of alternatives
In Store
Membership card displays account history on staff computer
Aimed at selling - recommendations
Shelves are not crammed and exclusive products are given space
to enhance prestige
Status of buying in store
IMPLEMENTATION PLAN
Distribution Strategies
Tangibly operating in just two states does not suggest the rest of Australia is unable
to access the products sold by 5th Lane Liquor.
B2B - Potts Point (NSW) or Toorak (VIC) store AND the FifthLaneLiquor website
B2C - In store AND online. Online ordering is recommended for B2C consumers
In Store
Same day delivery $10 (providing order is placed before 1 o’clock and depending on location)
Next day delivery free (depending on location).
Online
Express Delivery – within 48 hours (depending on location) for a flat rate of $25
Home Delivery – within 7 working days (depending on location) for a flat rate of $10
Orders over $300 receive free delivery
Third Party delivery Agent
Fig. 1.1 Map of Sydney displaying same day delivery restrictions.
<http://www.worldguides.com/images/sydney/sydney_map_city.jpg>
Fig. 1.2 Map of Melbourne displaying same day delivery restrictions.
< http://www.world-guides.com/images/melbourne/melbourne_map_city.jpg>
IMPLEMENTATION PLAN
Pricing Strategies
Premium Pricing
Higher priced products - Consumer perceives quality
Seasonal Specials
Specials limited not a value for money, don’t want to be perceived as value supplier
Bulk Purchases
Small discounts 5-10% on selected products for large orders
Online Bidding
Not applicable to site, target market corporate consumer is time poor, unable to watch items
Online Vs Store
Competitors pricing strategies within store Vs online are similar 5th Avenue use a slightly lower margin online as
the core business is derived from businesses
This strategy is to encourage consumers to buy online for convenience and price as store locations have many local
competitors
IMPLEMENTATION PLAN
Relationship Management Strategies
•MEMBERS card, and loyalty program
•Specials & discounts. Free delivery
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IT service consultants – Provide 6 day service and 24 response
• Privacy policy – Quarterly updates
•Security Policy – Monitoring and quarterly updates
•Security tip page - online hazards & updates
• Regular monitoring of external environment, distribution and technological policies
•Consumer feedback - qualitative data collection
IMPLEMENTATION PLAN
Marketing Communication Strategies
5th Lane Functions
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E-Commerce website
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Content Management
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Newsletter (email & snail mail for members)
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Navigation Tools
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Site membership and affiliate services
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Gift voucher system
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Testimonial page
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Personalised basket and checkout system
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5th Lane Blog promoting direct response
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Advertisements in Sydney Morning Herald, BRW (Australia's leading weekly business magazine)
and WineEstate Magazine (http://www.winestate.com.au/advertising/)
Customer service tab available on every page of website giving users multiple methods of contact
Alliances
Developing symbiotic relationships with other industries is something 5Th Lane Liquor strives to
achieve and maintain. Forming business and strategic alliances with other businesses who use
liquor as a promotional tool (such as florists and wedding car hire companies with champagne, etc.)
is an important tactic 5Th Lane Liquor seeks to perfect through affiliates.
INFORMATION GATHERING TACTICS
AIM:
To gather a combination of Qualitative and Quantitative data
through B2B and B2C both In Store and Online.
Quantitative Collection:
Online questionnaire once purchase is complete and in store questionnaire promoted to help improve
service
Qualitative Collection:
Emails, Notes, Testimonials and Feedback Forms available online and in store
The costs and time associated with data collection include:
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Time to prepare questionnaires
Time to gather, record, analyse and report on the data
The costs involved in collection, analysis and reporting
Sources of data include:
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Consumers - prospective, current, past, withdrawn
Social media networks - Facebook, Twitter
Industry blogs, magazines etc - Wine Estate, 4bars.com.au
Industry professionals
ORGANISATIONAL STRUCTURE FOR IMPLEMENTING THE PLAN
A ‘Horizontal Organisational Structure’
CEO
NSW Store
Manager
Sales
Import/Inventory
Distribution
VIC Store Manager
Sales
Online Manager
Import/Inventory
Sales/ Research
Distribution
Distribution
BUDGET
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Aim to reduce delivery cost, encourage larger orders within corporate sector
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Target Metropolitan regions, consumer pays less
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Aim to negotiate cheaper deals with suppliers, bulk buys to give our consumers lower
margins online.
Negotiate with premium suppliers to reduce margins as opposed to “ in store specials” as
aim to obtain consumers perception of value site
Aim to in the short term draw business by providing own delivery vehicle, continuing into
the long term through partnership. This builds company equity by purchasing vehicle, &
saving on any postage costs.
EVALUATION PLAN
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Sales conversion rate per
website visit
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Feedback – data collection
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Direct response/Call to action – successful?
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New memberships
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Have we been true to our objectives?
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Have we attracted qualified prospects who’ve shown an interest in 5th Lane Liquor?
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Positive ROI?
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Privacy and confidentiality
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Repeat business
In summary, our evaluation plan is feasible in terms of budget, schedule, personnel
availability and data availability. It is calculated and realistic.
REFERENCES
SmartCompany.com
Liquor industry drowning its sorrows November 2007
http://www.smartcompany.com.au/retail/liquor-industry-drowning-its-sorrows.html
Accessed: Thursday 2nd September 2010
IBISWorld
Liquor Retailing in Australia 2010 Australian Industry Report
http://www.ibisworld.com.au/industry/default.aspx?indid=398
Accessed: Thursday 2nd September
Text
Marketing, a Practical Approach 6th Edition
Peter Rix 2007, pg 14 McGraw Hill
Text
Advertising and Promotion, An Integrated Marketing communication Perspective 2009
Belch, McGraw Hill 2006