Powdered Vodka K-Cup for Keurig

Lynnea Chelstrom
Mackenzie Gerber
Charles Pittman
12/10/15

Table of Contents
Executive Summary

Chosen Product Category/Industry Analysis

Assessment of the External Environment

Consumer Behavior Analysis

12

Target Market Selection & Positioning Strategy

17

Marketing Mix
Sources

22
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Executive Summary
9.8 billion K-Cups were sold in 2014 according to Keurig CFO Fran Rathke
(DAmbrosio, 2014). Keurig has introduced its cold products in 2015 and has
paired with Coca-cola to help push sales and expects the growth of the cold
products to be intense. We would ride this wave of popularity by creating a new
product that works with the Keurig Cold system (Keurig Green Mountain's
Earnings Preview, 2014). This unique product would be a K-cup that contains
powdered vodka. It will produce a proper chilled vodka pour with the simple
insertion of the cup and press of a button. This then can be combined with the
user's choice of mixer, like Coca-Cola or juices, and have a quick mixed drink
with little effort. We want to make an easy use product that can help the
environment by using a container, consisting of #1 PET plastic and aluminum
foil, that can be thrown in the recycling once the consumer is done with it
(Lessismore.org). Vodka was the chosen spirit since it has over 17% of the
wholesaling market for wine and spirits; which is the largest share of the market
for hard liquor (Petrillo, 2015).

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Chosen Product/Industry Analysis

Our chosen product is a powdered vodka k-cup for Keurig Cold system.
The k-cup will contain powdered vodka that when mixed with water will produce a
traditional 80 proof vodka. Our product works in conjunction with Keurig Cold
brewers and produces a chilled shot, which is 1 oz, of vodka that can be used
to produce a mixed drink or drank by itself (Bar Measurements). According to
Mark Phillips, the creator of powdered alcohol, it would only take 1/2 ounce of
powder in the cup to create the desired amount. The cup itself will be made of
easily recyclable PET plastic with an aluminum foil lid which can be 100%
recycled when the consumer is done using the product (Lessismore.org). The
industry we are working with in is the Distilleries in the US which has the NAICS
code 31214. According to the McKittericks (2015) industry report, 25 percent of
all produced spirits in US distilleries is vodka. Also, 17.7 percent of all wholesale
liquors and wines is vodka (Petrillo, 2015). This shows how much vodka is being
consumed in the US and how popular it is.
The distributor we will be working with is Diageo PLC (hypothetically, you
said this was okay). Diageo PLC (Diageo) holds the largest single market share
in the alcohol distillery industry at 31% (McKitterick, 2015). According to
McKittericks (2015) industry report, Diageo revenues at the end of the financial
year in June 2014 were $16,678.5 million, the operating profit of the company
was $4,401.3 million, and the net profit of the company was $3,546.1 million. The
distillery industry revenue as a whole is $12.5 billion and has grown 9% between

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2010 and 2015. The profit of the distillery industry as a whole is $2.8 billion and
exports are $1.4 billion (McKitterick, 2015). Partnering with Diageo is the best
marketing opportunity for our product. The demand from wine and spirits
wholesaling is high and Diageo is a key producer. According to Diageo plc SWOT
Analysis (2015), Diageo has significant brand strength in the premium spirits
segment, an extensive product portfolio across categories and price points, and
widespread production facilities. Some products Diageo produces are: Johnnie
Walker, Crown Royal, J&B, Buchanans, Windsor and Bushmills whiskies;
Smirnoff, Ciroc, and Ketel One vodkas; and the Captain Morgan, Baileys,
Tanqueray and Guinness brands. Our product will be concentrated in vodka:
Smirnoff, Ciroc, and Ketel One. Weaknesses we will encounter producing with
Diageo will be the legal proceedings of laws and regulations that differentiate
between federal, state, and local levels of government. Opportunities Diageo has
as a whole is the growing global spirits and wine market and favorable trends in
travel retail. Our product however, will be focused on the US consumer market,
but has a promising future when our product is established enough to be
distributed globally. Threats Diageo encounters are the stringent advertising
regulations, the booming trade of counterfeit alcohol, and the dependence on
third parties for raw material (Diageo plc SWOT Analysis, 2015).
Our product will be produced only for Keurig Green Mountain, Inc.
(Keurig), distributed in a k-cup. According to Keurig Green Mountain, Inc. SWOT
Analysis (2015), Keurig revenues during the financial year ending in September
2014 were $4,707.7 million, operating profit of the company was $947.2 million,

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and net profit was $596.5 million. According to Petruno, there are K-Cup brewing
machines in 20 million homes and businesses. The industry is strong and
promising as there is a growing market for Keurig machines and its products.
Keurig strengths are the range of products it has as well as the steady financial
performance (Keurig Green Mountain, Inc. SWOT Analysis, 2015). Keurig is a
prominently known brand, consumers base Keurig and its competitors off quality,
price, brand recognition and loyalty, innovation, promotions, nutritional value, and
ability to identify and satisfy consumer preferences. Keurig stands out in all of
these categories which helps our product image and equity. Weaknesses of our
product is that it can only be used for Keurig machines, theres customer
concentration because Keurig relies on Wal-Mart and Costco Wholesale
Corporation for a large portion of revenues, and Keurig is dependent on the US
market. The benefit of Keurig being dependent on the US market is that our
product will only be produced and distributed in the US market. Keurig
opportunities include strategic agreement, such as partnering with Diageo to
make powdered vodka K-Cups and new product launches, which would include
our powdered vodka K-Cup. Threats Keurig has is intense competition and
compliance costs associated with government regulations. We will work with
Diageo distillery and Keurig to produce powdered vodka in K-Cups. Although
alcohol is seen as a sin product, its not used equally everywhere, and is heavily
taxed and regulated, we will be intelligent about market segmentation and
placement of our product. The popular Keurig industry is growing as well as
Diageo distillery, we will use this to our advantage introducing our new product.

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Assessment of the External Environment

The main competitors that we will encounter with our product surround the
alcohol distillery industry, so our focus on distillery competitors will be key. The
companies that compete with Diageo distillery are Brown-Forman Corporation
and Suntory Beam Incorporated. While Diageo holds the main market share at
31 percent, Brown-Forman Corporation share is 20.1 percent and Suntory Beam
Incorporated share is 12.1 percent (McKitterick, 2015).
Brown-Forman Corporation is known to carry brands with high brand
equity, which enables the company to differentiate itself in the market and
increase customer loyalty (McKitterick, 2015). The companys positioning
strategy focuses on its well known and popular alcohol Jack Daniels whiskey.
Brown-Forman Corporation marketing mix products include: whiskey, Chambord,
Early Times, Finlandia, Herradura, Canadian Mist, Korbel, Old Forester, Southern
Comfort, Tuaca, and Woodford Reserve. The company marketing mix prices are
moderate and revenue is expected to grow 1.3 percent to 2.8 billion dollars in
2015. Brown-Forman Corporation marketing mix place strategy has seven US
distilleries operating and distributes to retailers and wholesalers in over 130
countries through its 30 wine and spirits brands. The company marketing mix
promotion spends its majority on Jack Daniels whiskey, spending 10 million
dollars in advertising in 2011 (McKitterick, 2015). One of Brown-Forman
Corporations strengths in their brand portfolio that provides a competitive
advantage is their Jack Daniels brand. The Jack Daniels brand is the fourth

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largest spirits brand and the largest selling American whiskey brand in the world
(Brown-Forman Corporation SWOT Analysis, 2015). The companys other
leading brand is Finlandia, The sixth-largest selling vodka (Brown-Forman
Corporation SWOT Analysis, 2015). Competition with Brown-Forman Corporation
leading brand Finlandia will be one of our biggest competition while working with
Diageo. Brown-Forman Corporation is expanding its geographic presence
internationally, allowing them to increase revenue across regions. Our primary
target market and focus is the US, so expansion internationally does not concern
us right now. A large weakness of Brown-Forman Corporation is their significant
unfunded pension obligations. In the fiscal year of 2014, the companys planned
asset pension benefits were 605 million dollars, the actual pension benefit
obligations were 785 million dollars, resulting in unfunded status of 180 million
dollars. The company would have to make regular cash contributions to bridge
the gap (Brown-Forman Corporation SWOT Analysis, 2015).
Suntory Beam Incorporated is known for its popular range of bourbons,
differentiating itself from competition. The companys positioning strategy focuses
on its well known and popular alcohol Jim Beam bourbon (McKitterick, 2015).
Suntory Beam Incorporated marketing mix products include: Courvoisier cognac,
Pinnacle Vodka, Makers Mark whiskey, and Skinnygirl brand. The company
marketing mix prices are moderate and revenue is expected to increase at an
average annual rate of 8.4 percent to 1.5 billion dollars in 2015. Suntory Beam
Incorporated marketing mix place strategy has 16 manufacturing facilities across
the US. The companys promotion strategy is focused on growing business in the

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domestic consumption of whiskey (McKitterick, 2015). Strengths of Suntory

Beam Incorporated include their strengthening product portfolio through new
product launches, such as Skinnygirl brand and the acquisition of 2 Gingers
Whiskey brand (McKitterick, 2015). The company also currently has a strong
brand portfolio that contributes to revenue growth. As I stated earlier, the brand
they are best known for is Jim Beam Bourbon and contributes to a significant part
of their revenue. Jim Beam Bourbon is the number one-selling bourbon in the
world (Beam Suntory Inc. SWOT Analysis). Another one of Suntory Beam
Incorporated products is Pinnacle Vodka, one of the leading imported premium
vodka brands, will be one of our biggest competition while working with Diageo. A
large weakness of Suntory Beam Incorporated is their lack of scale. The
company does not make out well financially compared to its competitors such as
Diageo and Brown-Forman Corporation. The financial year of 2014, Diageo
recorded revenues of approximately 16,678.5 million dollars, Suntory Beam
Incorporated generated annual worldwide sales of about 4,600 million dollars.
Lack of scale also reduces the companys bargaining power (Beam Suntory Inc.
SWOT Analysis).
Competition is high in the distillery industry. Price-based competition is
number one because price tends to be the highest and most important factor for
buyers, its all about the money. Internal competition between major distillery
players is heavy. Distillers spend millions building their brand to separate them in
the market. The primary source to separate themselves from others is through
advertising and promotion. Price and quality are tied together so that many

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similar-quality products are priced in a certain range creating tough competition.

Large companies can buy bulk product at inexpensive prices compared to
smaller competing companies. The biggest external competition for the distillery
industry is other beverages. Customers have a wide variety of products to
choose from when quenching their thirst, however, social events have helped
distilled products gain importance (McKitterick, 2015).
Our product, Powdered Vodka K-Cup for Keurig, will be using vodka from
Diageo distillery. Diageo also produces many other products, therefore other
competition for us. The main competitor within Diageo products is whiskey at 31
percent of all produced spirits in the US market. Other Diageo products
competing with vodka are cordials at 11 percent, rum at 10 percent, tequila at
nine percent, brandy and cognac at seven percent, gin at four percent, and other
spirits at three percent (McKitterick, 2015). Key external drivers of Diageo
distillery: demand from wine and spirits wholesaling, per capita disposable
income, per capita expenditure on alcohol, price of coarse grains, trade-weighted
index, and demand from bars and nightclubs (McKitterick, 2015).
Political and legal factors impact the distilling industry greatly. Distilleries
are heavily regulated differently at federal, state, and local levels. On the federal
level, distilleries have to go through an intense background check and are heavily
taxed by the United States Alcohol and Tobacco Tax and Trade Bureau. On the
state level, there are restrictions on the sale and shipment of alcohol beverages
across state lines. There is an open or control regulatory environment in states.
Open is allowed to sell spirits, wine, and beer directly to independent distributors

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and control is monopoly over warehousing or retailing spirits products. On the

local level, they can determine their own rules governing the distribution and sale
of liquor (McKitterick, 2015). These strict and different political and legal
regulations make it all the more difficult to produce, distribute, and sell spirits.
Sociocultural factors that influencing the distilling industry is low to
moderate. The main factors come from individuals and groups which consider
alcohol a sin and should not be consumed. The moderate factor that may
influence our product is if government regulation steps in. An example of this can
be seen in Australia where the Victorian government has banned the sale of
powdered alcohol (Mainland, 2015).
Technological factors influencing the distilling industry is low. The distilling
process hasnt changed significantly over the past millennium. There have been
recent improvements in large-scale distilling, they make industry products safer
and more consistent with things like filtration systems that help make more
efficient batches that reduce waste. Cheaper and faster bottling have sped up the
process of packaging shipments leading to better revenue. There have also been
innovations in label tracking that have helped companies keep profit up
(McKitterick, 2015).
Economic factors influencing the distilling industry include the increased
interest in cocktails and the demand for premium products. Customers
disposable income is expected to increase price growth of products within the
next five years. Price and revenue growth is projected at an annualized rate of
8.6 percent through 2020. Customers ages 21 to 25 have developed into a

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market for distilleries and are subjects of promotional activities. Ready-to-drink

beverages, in particular, are targeted at this demographic (McKitterick). White or
clear spirits appeal more to new drinkers, an advantage of using vodka.

Consumer Behavior Analysis

Consumer Decision Making Process
According to Neilson.com in their article, Exploring the Alcoholic Beverage
Consumers Mindset, Millenials are considered to be experiemental, attentive
customers, which creates a higher involvement for the younger end of our target
market. Millennials tend to be more easily persuaded to buy a certain product
through new product promotions, sampling, and in-store displays. Because they
are of the younger generation, they havent created their brand loyalty and they
are still experimenting their favorite kinds and tastes. This age group is typically
categorized as impulse buyers (Nielson, 2014) that make decisions after they get
to the liquor store or grocery store that they are purchasing their liquor from,
rather than before they arrive.
Brand loyalty to a certain alcoholic product and lack of interest in
samples and in-store displays tends to grow as people age and they arent as
willing to stray away from their preferred product, however this doesnt deter us
from including them in our target market because they are of legal drinking age.
Nielson (2014), also points out the fact that males tend to purchase more alcohol
than females by stating, While differences become more nuanced by category,
current marketing activity seems to resonate more strongly with male consumers.

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Females are more difficult to reach as they prove to be less engaged with both
in-store and pre-store stimuli. Females are also more likely to purchase alcohol
at the request of another person. This market research supports the idea that
our target market should include more males than females because they are
typically considered a high involvement consumer. For example, while decisions
to buy alcoholic beverages are planned in 69% of instances, niche categories
such as pre-mixed cocktails and flavored malt-based beverages reflect a
pronounced shift to more impulse behavior, reports Nielsen. Meaning that while
pre-store marketing is still important for brand awareness, focused in-store efforts
can be very effective in the effort to increase unplanned purchases. Spirits
purchases are generally planned, but consumers typically postpone those
purchases until they are going out to make other purchases (spirits purchases
themselves trigger only 39% of the trips). The key in activating spirits purchases
is combining alcohol marketing communications with consumer packaged goods.
External Consumer Influences
Socioeconomic status in considered an external influence that impacts
many consumers and tremendously changes their purchasing behavior.
DemographicsNow (2015) states that the average household income across the
United States in the year of 2015 is $76,502, of this average household income,
people spend approximately $448.51. As mentioned earlier, the alcohol industry
is considered to be in a mature stage of its product development and will most
likely increase by the year of 2020. As you can see in figures 1 and 2 below, the

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rise in alcohol purchases in all different mediums increase greatly in just five
years.
2015

Figure 1.
Note: Retrieved from Gale Cengage Library. Copyright 2014, reprinted with
permission.

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2020

Figure 2.
Note: Retrieved from Gale Cengage Library. Copyright 2015, reprinted with
permission.
Internal Consumer Influences
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Marketing Teacher (2015) has an article about Internal Influences and the
different types of internal influences there are including personality, motivation,
memory, and lifestyle. Marketing Teacher (2015) had a graphic labeled, The Five
Factor Model Approach, which addressed the different types of personality and
the effects it had on purchasing behavior. One of the traits listed was
Extroversion and for this personality trait people tend to be bold, outgoing, and
able to socialize more easily with people. Because of their extroverted
personality they are placed in the category of buying airline tickets, but most
importantly in correlation to this project, alcohol. The personalities that we would
identify with for our Powdered Vodka K Cup would be the extroverted and outgoing consumer that would prefer to be in a social setting where they can indulge
in our Powdered Vodka and share with their friends how much they love our
product.
Dr. Jill Novak is a professor of Business and Economics at the University
of Phoenix and wrote an article for Marketing Teacher (2015) and stated that
Once we recognize that we have a need, a state of tension exists that

drives the consumer to the goal of reducing this tension and eliminating the
need. The state of tension that Dr. Novak speaks about is presented to
our consumers when they want to have a good time with their friends or
when they want to try something new that can make them more socially
likable. Internal influences play in our favor for the presentation of this new
product because it appeals to our target market of individuals striving to
find their identity and jumping into the adult world or have been in the adult
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world for a few years and are looking for something to assure their hopes
for a successful and exciting life.
Situational Influences
The situational influences that have a role in the consumer behavior
toward our product include the time that we would present our product and
where our target market is at in their lives when we present it. Most of our
consumers are projected to be in the store with friends when they go to a
liquor store because our target market is in that age range where they are
most likely to be social and have a lot of friends that want to have fun and
try new things which influences them to do the same. As we learned
through our lectures in class, when people are shopping with others they
are more likely to spend more money than they would if they were
shopping by themselves. This situational influence is something that we
plan to boost our sales for this product because it is new and we hope to
gain enough interest for people to go out and see what the powdered
alcohol K Cup is all about.

Target Market Selection & Positioning Strategy

Our target market for this product would be classified as urbanites, also
known as people who are striving for greatness and expect nothing but the best
possible outcomes for their lives and are able to tie this into being open minded
and willing to try fun, exciting, and new things. This target market of young
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adults range in age from 21-35, although men have been researched to be more
heavy drinkers than women, women are proven to binge drink and unintentionally
be under the influence versus males. (Berman, 2014) At any given hour, there
are over 200,000 young adults drinking alcohol. If these millennials have their
choice, theyre drinking at restaurants that offer an eclectic variety of different
options. Simply put, millennials like to try new drinks perhaps because they
hope theyre among the first to discover the next big thing. Millennials are also
becoming more conscientious about their eating and drinking habits in regards to
their health, leading them to choose the less caloric option. In alcohol
consumption this automatically leads our target market to vodka because it is
one of the lower calorie choices for our consumers. According to a recent survey
conducted by The University of Michigan shows that vodka takes the cake in that
one out of every three millennials prefers vodka to other liquors. (Krost, 2015)
Through our research we have also found that millennials are more likely to preload (Carr, 2014). Pre-loading is a new term that has been coined to facilitate
to the new trends of drinking that young people, also known as our target
marketing, are coming out with in this day and age. Because economic times can
be tough and waiting in line at crowded bars is becoming less and less
appealing, young people are choosing to stay in for their drinking needs, which is
a positive fact for our product because bars most likely wouldnt have a Keurig
behind the counter for customers to request our vodka K- Cup. Pre-loading
leaves us as marketers in a position to place our brand in the younger target
market in a positive and desirable light because we can facilitate to their

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increasing habits of staying in and consuming alcohol. Sometimes our target

market decided to pre-load before they head out to the bars to save themselves
some money while en route to their desired state. The target market is looking for
fun and new products at this point in their lives but they dont want this fun and
new product to cost them a fortune, which is why we chose an affordable price
for the Millennials to buy in to, which we will discuss later. The target market and
psychographic portion of this new product launch is the key to our success so we
want to make sure that we are targeting the correct group of consumers and to
help us do so we have accessed the VALS survey to better understand the
characteristics and tendencies of our target market. The VALS website states
that A person's tendency to consume goods and services extends beyond age,
income, and education. Energy, self-confidence, intellectualism, novelty seeking,
innovativeness, impulsiveness, leadership, and vanity play a critical role. These
psychological traits in conjunction with key demographics determine an
individual's resources. Various levels of resources enhance or constrain a
person's expression of his or her primary motivation. By keeping this in mind we
have decided to centralize our target market to two of the possible
categorizations of our adult target market. We have selected a blended target
market of the innovators and experiencers VALS types because of the great
product set up they provide to this new product launch. Innovators are confident
enough to experiment, are most receptive to new ideas and technologies, and
also have the widest variety of interests and activities. Experiencers sees
themselves to be very sociable creatures, go against the current mainstream, are

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up on the latest fashions, value their friends, have an increased depth of

spontaneity, and a heightened sense of visual stimulation. We believe that by
centralizing our marketing efforts to these two groups of consumers we will
create success in the launch of this new and innovative product.
Essentially we plan to position our product on all social media platforms
because our target markets lives are consumed by social media and we want to
position ourselves on their mobile devices where they spend, on average 5 hours
of their day. (E-Marketer, 2014) Figure 3 below displays just how much people
spend on mobile communication each day in a measure of minutes. This is a
plus for us marketers because it helps us determine where our consumers are
and where they spend a lot of their time which creates a bridge between our
customer and our product to increase their awareness about our new product.

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Figure 3.
Another aspect of our positioning strategy would be the creation of a free
mobile app that consumers can download on their iPhone or Android devices.
The app would have many features including K Cup recipe ideas, promotional
deals, and information about the K Cup evolution. The app would be promoted
on our social media platforms, websites, and advertisements to drive consumer
downloads and push our consumers to purchase our product to try out great
recipe ideas offered through our free app. Additionally, we would have a QR
Code available on our product packaging that would lead consumers to our
website and/or the app store to download the app. The customers would have to
scan the code (Figure 4) on their device and it would lead them to a special page
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on our website where they could receive a promotional offer for coming to our
website via QR Code.

Figure 4.
In store positioning would take place with the sample booths we would
create that would also appeal to our target audience that wanders in and is eager
to find a product that connects and fulfills their internal wants and needs with
their external wants and needs. Socially, our positioning strategy would promote
a good time out with friends as well as a nice and easy cocktail that takes little to
no effort to create.

Marketing Mix
Product
As stated previously we are creating a brand new that will work with
Keurig Cold machines. It is a K-cup that contains powdered vodka. You can have
a ready made chilled shot of vodka without ice or long waits. You simple put the
K-cup in the machine and push a button and a few seconds later you have a
ready chilled shot of vodka. The packaging for the product will be made from #1
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PET plastic which is the most recycled plastic and aluminum foil. This makes it
easy to recycle and better for the planet. Once the consumer is done making
their shot they can just throw the packaging right in the recycling. The K-cups will
come in groups of 18 per package which comes out to be more than a 750mL
bottle. We will be distributing our product through Diageo (as you stated this was
allowed) because of their wide distribution network.

Price
Powdered vodka k-cups is a new product that has not been fully
established yet. Given that the product is new, we can not accurately estimate
the cost of the product, we are basing the product selling point on the price of a
750mL Smirnoff vodka bottle. Standard price for 750mL of Smirnoff vodka is
$19.99. The price range for selling our product will be between 19.99 and 29.99
dollars depending on the flavor of the product.. As stated earlier, the product will
be sold at 18 K-cups in a package. $19.99 will be the base product price for
powdered vodka K-cup with no flavoring added. As our business expands,
additional flavors will be added to product portfolio.
We will have two price promotions, a coupon at liquor stores around the
country that sell our product and a discount sent to the customer's device if they
scan our QR Code to get to our website or app. The discount offered through our
QR Code would be sent to the customers device after they scan the QR Code
that brings them to our website or app. The customer will receive a 20 percent off
message sent to their device that they can show to any participating liquor or

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grocery store that sells our product. The coupon will be 20 percent off one
purchase package of Powdered Vodka K-Cup for Keurig, limited to one package
per coupon.

Figure 5.
The in store coupon (Figure 5) will be placed in stores that are selling out
product to try and get consumers to try out our product. $2.00 off is a deal that
would get someone interested in the produc. The deal would be on one package
of Powdered Vodka K-Cup for Keurig, limited to one package per coupon.

Place
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The places our product will be available is going to differ due to each
states laws. We will depend on our distributor, Diageo, to get our products to
anyplace that they can legally be sold. Some prominent locations will be liquor
stores, grocery, and places such as Target.
Promotion
To get the consumer to notice our product we will work with Keurig to get
our product out there. We will work with Keurig to create online, print, television,
and radio ads, we will work with them to have our product mentioned in those
ads. We will also have sampling done in store so that consumers can see our
product work with the new Keurig cold system. Since we have a completely new
product most consumers will not know what our product is and will need to see it
being used and taste it to see that is tastes just like regular vodka. We want our
target market to know that the new powdered vodka K-cups are a new alternative
for their vodka needs and is ready for them all the time. We want them to also
know how easy the product is to operate and how it can supply a proper pour of
chilled vodka without them having to think or plan. To further get our message out
there, we will set up a promotion at a high-class nightclub which will use our Kcups to make all their drinks. The promotion will allow our target market to see
the product being used and by having a high-class place use our product it will
lend legitimacy to the quality of our product. We will also set up pop-up bars
around the country and use internet and social media marketing to tell people
about them. At these bars we will have professional mixologists that use our

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product to create high class cocktails.This will also encourage our target market
to try our product and see how a quality cocktail can be made from our product.
For one of our two ad concepts we are going to film both the pop up bar
event and cocktail bar takeover and create fun videos of people enjoying
cocktails and our product being used. We will then put these on our different
social media pages and on our website. We can not put these ads on television
due to the legal standards that surround alcoholic products being shown and
enjoyed. For our second ad concept we will create a television ad that shows the
machine on a table in a full white room with one of our K-cups next to it and
woman will come in and create a shot and then end on a close up of the chilled
shot in a cold shot glass to show how it produces a cold drink and the size of the
drink. To fall into industry standards of putting these ads on television we have to
air them after 11pm or on stations that over 90% of the audience was 21 years
old or older (Schultz, 2012).
The distribution channels are previously stated, liquor, grocery, and any
business that Diageo distributes to. We do not sell our product on the internet
due to the legal reasonings behind it. Businesses have to buy and order directly
from Diageo to get our products. We will offer stores special promotions to bring
in the new K-cups including bulk deals like buy 2 cases and get 3 boxes for free.
To generate traffic to our website, we will provide consumers with promotional
discounts such as holiday offers and coupons. The website will also be a good
resource for fun cocktail recipes and mixtures. Additionally, the website will be
how consumers can find out about our next up and coming products. The

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Powdered Vodka K-Cup for Keurig

website will be consumer interactive, they can share drink mixtures with each
other and make suggestions on our next product. The website will also feature a
Find our Product page in which consumers can find out what stores around them
have our product for sale. The general concept for the website design will be
simple and easy to navigate. There will be three navigations on the home page,
Home, Products, and Contact. The Home page will talk about who we are
and what are product is. The Products page will list our product, Powdered
Vodka K-Cup for Keurig, and up and coming products as well as the Find our
Product page. The Contact page will have a comment section where
consumers can ask questions or share ideas as well as a link to our customer
service email. Our product is shipped directly from our distributor, Diageo.

Sources
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(This website contains information about bartending and bartending math
measurements correctly.)
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Powdered Vodka K-Cup for Keurig

Beam Suntory Inc. SWOT Analysis. (2015). Beam Suntory Inc. SWOT
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associated with it.)
Brown-Forman Corporation SWOT Analysis. (2015). Brown-Forman
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around the world including Brazil, China, India, and Russia.)
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(Burlington Free Press is a newspaper that interviewed the CFO of Keurig to get
accurate information on the company and the stats from them.)
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[Data]. Retrieved November 24, 2015, from DemographicsNow database.
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(This website was used to find out just how much time our target market
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Powdered Vodka K-Cup for Keurig

green-mountains-earnings-pre.view-recent-distribution-deals-to-boost-brewerand-portion-pack-sales/
(Forbes is a well respected business magazine that keeps track of different
businesses and writes articles about them.)
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(This source provided information about how much alcohol our target
market is consuming, also where and when.)
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program and has information on what plastics can and can not be recycled.)
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Australian states. Retrieved December 8, 2015, from
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and beverage in the country of Australia.)
Marketing Teacher. Internal Influences Personality. (2015, January 13).
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consumers.)
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U.S. consumer mindset when it comes to the purchase of alcoholic beverages.)
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Wholesaling in the US. Retrieved November 23, 2015 from IBISWorld database.

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Powdered Vodka K-Cup for Keurig

Petruno, T. (2015). The Top 10 Stocks of the 21st Century. Kiplinger's

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(website of the official creator of powdered alcohol)
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(AdAge is a professional website that produces articles about what is
going on in advertisements and talk about changes in the career field)
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capabilities and sustainable strategic positioning. American Journal of
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29 2012. ProQuest. Web. 24 Nov. 2015.

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Powdered Vodka K-Cup for Keurig