Sunday, June 2, 2013

Implementation Evaluation Control

"Success at building customer relationships also rests on how well their entire supply chain performs against competitors’ supply chains. These companies don’t just treat suppliers as vendors and distributors as customers. They treat both as partners in delivering customer value. On the one hand, for example, Lexus works closely with carefully selected suppliers to improve quality and operations efficiency. On the other hand, it works with its franchise dealers to provide top-grade sales and service support that will bring customers in the door and keep them coming back." (KOHLER/ARMSTRONG, Marketing:  An introduction, pg 21).

Time to put the pen down and reflect on Northern Lights Vodka.

Countless hours of reading, research, talking with peers and really enjoying this project invested, but one question remains, will the product ever work in today’s market? After much reflection and swallowing of pride, the answer will be no. As I walked down the aisles of the local market and seen the many types of vodka, I became aware of the diversity and magnitude it holds on the shelf. Whole rows are dedicated to at least 200 versions of the product from every corner of the world. To make my vodka stand out would be short of a miracle in today’s market. I have no associations of any category to a big name personality to even endorse my product. You may have millions of dollars to invest in an item today, but if you do not get that “stamp of approval” from a celebrity, your product will be dead to the world. 

“In almost constant touch to make certain the customer stays satisfied. Success depends on building solid, long-term relationships with customers, based on performance and trust.” (ARMSTRONG/KOTLER, Marketing: An Introduction pg 414).

Distribution

“Each distribution method involves a different level of reach and cost. Increasingly, marketers are blending several media into a total campaign concept. The length of the promotion is also important. If the sales promotion period is too short, many prospects (who may not be buying during that time) will miss it. If the promotion runs too long, the deal will lose some of its “act now” force.” (ARMSTRONG/KOTLER, Marketing: An Introduction pg 437). 

Northern Lights distribution markets itself to high end clubs and liquor stores.  

Northern Lights Distilleries home office is based out of Anchorage, Alaska and the products are distilled in Talkeetna, Alaska, within in sight of Mount, McKinley. 

Northern Lights distilleries will partner with liquor distributors within major cities in the United States to effectively distribute our products.  Distributors of Northern Lights Vodka will receive invitations of sampling and promotional events that occur at the Northern Lights distillery. 

Investors of Northern Lights will receive a personalized tour of our distillery and receive a 2 day guided air tour of Mount McKinley.

Northern Lights Vodka, researched other marketing distribution efforts from other companies such as Under Armour.

Under Armour might consider whether the company can achieve deeper market penetration—making more sales without changing its original product. It can spur growth through marketing mix improvements—adjustments to its product design, advertising, pricing, and distribution efforts. For example, Under Armour offers an ever-increasing range of styles and colors in its original apparel lines. And it recently boosted its promotion spending in an effort to drive home its “performance and authenticity” positioning. Following a blockbuster $4.4 million 2008 Super Bowl ad, Under Armour this year launched its largest-ever advertising campaign—themed “Athletes Run.” The company also added direct-to-consumer distribution channels, including its own retail stores, Web site, and toll-free call center. Direct-to-consumer sales grew 47 percent last year and now account for more than 11 percent of total revenues. (Armstrong/Kotler, Marketing:  An introduction, pg. 46).

Price

"Price is the amount of money customers must pay to obtain the product. Ford calculates suggested retail prices that its dealers might charge for each Escape. But Ford dealers rarely charge the full sticker price. Instead, they negotiate the price with each customer, offering discounts, trade-in allowances, and credit terms. These actions adjust prices for the current competitive and economic situations and bring them into line with the buyer’s perception of the car’s value." (Kohler/Armstrong:  Marketing:  An introduction, pg. 54).

 Northern Lights Distilleries will produce and distribute premium vodka for sale within the United States and Europe  Our premium vodka price will range from $30-$40 a bottle. 

"Thus, whereas marketers see themselves as selling products, customers see themselves as buying value or solutions to their problems. And customers are interested in more than just the price; they are interested in the total costs of obtaining, using, and disposing of a product. Customers want the product and service to be as conveniently available as possible. Finally, they want two-way communication. Marketers would do well to think through the four Cs first and then build the four Ps on that platform." (Armstrong/Kohler:  Marketing:  An Introduction, pg. 55).

Northern Lights Vodka was priced according to the target market of the ages of 25-45.  The target market for Northern Lights will be more interested in the quality of vodka, than about the price that is being paid for the product.  We felt that the product price was comparable to the market level we were researching for.

Promotion

"Despite their rapid growth in recent years, most marketers are still learning how to use the social media effectively. The problem is to find unobtrusive ways to enter consumers’ social conversations with engaging and relevant brand messages. Marketing has “historically been an exposure and intrusion practice—get in someone’s face and talk about the attributes of the brand,” says a social media analyst. “That approach works less and less effectively all the time, and it is absolutely fatal in the social arena.” Moreover, simply posting a humorous video, creating a social network page, or hosting a blog isn’t enough. Successful social network marketing means making relevant and genuine contributions to consumer conversations. “Nobody wants to be friends with a brand,” says one online marketing executive. “Your job [as a brand] is to be part of other friends’ conversations.” (Kohler/Armstrong, Marketing: An Introduction, pg 19).

Our organization created and posted a series of cocktail how-to videos, distributed through social media networks like Facebook, YouTube and Pinterest. Just recently, our marketing department launched the “Northern Lights Cocktails” mobile application to promote the idea of creating high end cocktails.

"Other marketers think that companies should position themselves on more than one differentiator. This may be necessary if two or more firms are claiming to be best on the same attribute. Today, in a time when the mass market is fragmenting into many small segments, companies are trying to broaden their positioning strategies to appeal to more segments."  (Kohler, Armstrong, Marketing:  An Introduction, Pg 197).

Product

"Product quality and improvement are important parts of most marketing strategies. However, focusing only on the company’s products can also lead to marketing myopia. For example, some manufacturers believe that if they can “build a better mousetrap, the world will beat a path to their door.” But they are often rudely shocked. Buyers may be looking for a better solution to a mouse problem, but not necessarily for a better mousetrap. The better solution might be a chemical spray, an exterminating service, a housecat, or something else that works even better than a mousetrap. Furthermore, a better mousetrap will not sell unless the manufacturer designs, packages, and prices it attractively; places it in convenient distribution channels; brings it to the attention of people who need it; and convinces buyers that it is a better product." (Armstrong/Kohler, Marketing:  An introduction, pg 11).

I conducted a research project with consumers regarding their thoughts on premium vodkas out on the market today, the majority of the people that I interviewed felt that many vodkas on the market shelf aren't distinct enough and that they are all similar in quality.  So at Northern Lights vodka we wanted to set our project apart from our competitors in the Vodka market.

"Marketing consists of actions taken to build and maintain desirable exchange relationships with target audiences involving a product, service, idea, or other object. Beyond simply attracting new customers and creating transactions, the company wants to retain customers and grow their business. Marketers want to build strong relationships by consistently delivering superior customer value."  (Armstrong, Kohler, Marketing:  An introduction, pg. 8).

Our goal is to attract customers and continue to retain their business ensuring customer satisfaction internationally.  We've designed a vodka and distributed it to ensure a refreshing product.

The bottle is handcrafted to portray that of an ice glacier.  The vodka inside the bottle is laced with blue, green, purple, red, and yellow colors of the Northern Lights.

Target Market Strategy

"Once it fully understands consumers and the marketplace, marketing management can design a customer-driven marketing strategy. We define marketing management as the art and science of choosing target markets and building profitable relationships with them. The marketing manager’s aim is to find, attract, keep, and grow target customers by creating, delivering, and communicating superior customer value." (Kohler/Armstrong, Marketing:  An Introduction, pg 9).

Our target market for Northern Lights Vodka ranges from ages 25-45. Northern Lights chose to market to a wide range of ages due to the growing need of premium vodkas within the vodka market.  Northern Lights Vodka embodies a classier side of the vodka market than it's other vodka competitors.

"The company must first decide who it will serve. It does this by dividing the market into segments of customers (market segmentation) and selecting which segments it will go after (target marketing). Some people think of marketing management as finding as many customers as possible and increasing demand. But marketing managers know that they cannot serve all customers in every way. By trying to serve all customers, they may not serve any customers well. Instead, the company wants to select only customers that it can serve well and profitably. For example, Nordstrom stores profitably target affluent professionals; Family Dollar stores profitably target families with more modest means. Ultimately, marketing managers must decide which customers they want to target and on the level, timing, and nature of their demand. Simply put, marketing management is customer management and demand management." (Kohler/Armstrong, Marketing:  An Introduction, pg 9).

Northern Lights Distillery has a clear vision on who our target market would be.  Our vision is that Northern Lights vodka is a top shelf premium vodka, that is distributed to premier clubs and bars within the global community.

Situations or SWOT Analysis

“Managing the marketing function begins with a complete analysis of the company’s situation. The marketer should conduct a SWOT analysis, by which it evaluates the company’s overall strengths (S), weaknesses (W), opportunities (O), and threats (T) Strengths include internal capabilities. Weaknesses include internal limitations and negative situational factors that may interfere with the company’s performance. Opportunities are favorable factors or trends in the external environment that the company may be able to exploit to its advantage. And threats are unfavorable external factors or trends” (ARMSTRONG/KOTLER, Marketing: An Introduction pg 55).

Strengths:
· Caliber of product
· Exceptional customer communication
· Knowledgeable of our customers requirements
· Impassioned of our service
· Expanding client base
· Family oriented staff

Weaknesses:
· In need of marketing maturity
· Infancy to the market
· Geographical location
· Magnitude of network
· Lack of global advertising

Opportunities:
· Non-reputable competition
· Allegiant clientele
· Limited edition brand for special events
· Customer stipulations on order processes
· Expanding network through reputation

Threats:
· Competitive market
· Countless established labels
· Congested market
· Contention similarity
· Advanced advertisement strategies
· Seasoned business executives/owners
· Competitors technological advancements

“Planning, implementation, and control. The company first develops company wide strategic plans and then translates them into marketing and other plans for each division, product, and brand. Through implementation, the company turns the plans into actions. Control consists of measuring and evaluating the results of marketing activities and taking corrective action where needed.” (ARMSTRONG/KOTLER, Marketing: An Introduction, pg 55).