Group 4_Business Plan

Global Corporate Entrepreneurship

BUSINESS PLANCase Study : TECHNO By Artic

Group 4:

Elena Banchero Assietti

Silvia Grieco

Giacomo Piazza

Index

1. Executive Summary

2. Product Idea (Costumer Need and Business Opportunity)

3. Marketing Plan (Customers Target and Marketing Strategy)

4. Operation Plan (Business system and organization)

5. Financial Projections (Financing)

1


EXECUTIVE SUMMARYExecutive summary

ILLVA Saronno S.p.A. is an Italian company leader in the spirits’ business.It is part of the Group

ILLVA SARONNO HOLDING S.p.A., controlled by the family Reina, who is the owner for the

100%.The main product is Amaretto Disaronno, that is sold all over the world, other famous

products are Aurum, Zucca, Isolabella Sambuca and Artic Vodka.

In the last years ILLVA developed inside the brand Artic a new and innovative product: Techno by

Artic. This is a novel product with an edgy tech twist.

Its low alcohol content is favorable for being consumed by a huge range of people.

The core concept of the idea, is to organize several events with Techno by Artic as starring. The

main goal is to create a unique experience that will be able to make this brand a recognizable one all

over the world. Thanks to these event in the entire Italy, the aim is to spread the brand name within

the target consumers.

The goal will be achieve through the creation of theme nights in which the participants can have fun

with their friends and spend a memorable night drinking Techno by Artic.

To reach this objective the idea is to organize a contest.

There will be several nights with different themes, where costumers will be immortalized with their

drink; then all the pictures will be uploaded on Social Networks and the picture with most likes will

be used for representing the future events. This new way of mixing fun, entertainment and colours

can lead to a revolutionary trend in which the target will be highly involved.

All these events will be used as unconventional communication for promoting Techno by Artic,

using three words, colour, fluorescent and fun.

2


PRODUCT IDEA

Problem:

A real problem that afflicts our society is the boredom. Many young people often stroll around

without a destination during the weekends’ evening. They tend to do always the same things. And

sometimes their only entertainment is to drink big quantity of alcoholic beverage.

Our aim is to fight boredom moments that characterized their spare time.

And we want do this using new kind of events linked with an innovative and young product:

Techno by Artic.

How to resolve - Innovative event :

Creating moments that will be lived as new special ritual for making the evenings special and

memorable.

It will be like a costume party, but for each event the theme will be different and the aim for each

person, who will be participated, will be to try to be similar at one famous star, picture, politician,

historical personality.

The main aspect of these events is that they are based on the game of similarities.

In this way people could have fun also during the previous weeks try to find the perfect mask for

the event. And during the evening they could make up with fluorescent color that will make the

costume unique and unforgettable.

The costume will be immortalized taking many photos which will be published on the main social

networks.

Through these channels it could be possible to start a race for decide which is the best costume, and

the picture with winner will be used to publicized the next event.

Doing that the thrill for the evening will be overlooked not only that evening, but also the weeks

previous and the following ones.

In this way like a vicious circle will be created around the evenings and the product that will be

protagonist.

What is it innovative?- Not the ordinary evenings but costume party.

- Introduction of a new aspects: Game of similarities; in this way it could be possible to have fun

together creating also a competition with the others to have the best costume.

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Global Corporate Entrepreneurship- The expectations related with the evening start weeks before the date of the event, because when

it’ll be communicate the theme of the game will be still unknown. - Use the social network as main communication channel.

- Use the winner of the race for the best costume as imagine for the next event.

Potential benefit for the company:

With these kind of events a word of

mouth about the product will start.

So the brand’s recognizability

will be increased. It could imply a

major return for the Company.

In addition the brand will not be

related with the idea of alcoholic

hoot, but with funny moments.

4


MARKETING PLAN

Analyze the Market

Emerging markets are becoming increasingly important as consumers of spirits and imported brands

are growing rapidly, being now key markets for the global spirits industry.

Despite the period of crises we are facing and according to latest full year data, the global spirits

market expanded by 7% in volume between 2010 & 2011.

In order to drive a correct analysis, we can firstly observe that the European spirits market has great

similarities with the American one: so, it is possible to be focused simply on data regarding about

the last one.

First of all, it’s important to find out what the costumers are more interested in. The Americans

(and, of course the European too) prefer the category of white spirits, and the most sold white spirits

in these regions is Vodka.

The main trend in the last few years is the Ready To Drink: people are not attracted anymore by

cocktails full of ingredients, but they just want their drink as it is in the bottle. The RTD trend is

represented also by the fact that many of young consumers prefer now to have party at home for

several reasons: it is more intimate, there aren’t crowd bars, there is less hoosle and, most of all, it’s

cheaper (this is why 79% of consumers have drunk alcohol at home in the last 6 months).

A lot of consumers are now looking for low-alcohol drinks; they want a lighter alternative to all the

spirits in the market right now, because of two main reasons: the first one is that they wants to enjoy

more the drinking experience and they couldn’t do this if they drink high-alcohol spirits and the

second is that they want to avoid the high percentage of calories that high-alcohol spirits contain.

As said before, the RTD trend is spreading fast, but, in the meantime, people are fed up with usual

spirits tastes: in fact they would like to have different tastes for usual spirits, this is why flavored

vodkas are increased for the 25% between 2010 and 2011.

What costumers are now attentive of the packaging too: they want something that taste good, but

that is also beautiful to look.

An important phenomenon of last years is the Premiumisation that it actually is recognizing some

brands that are categorized as “Premium”. In order to be part of this category, your product should

fit in some characteristics as:

Quality5


Exclusivity

Authenticity

Packaging

Taste

Celebrity endorsement

Worth

Excitement for consumers

Make consumer look and feel as his best

Why the Premiumisation is now so important? It’s easy to find the answer in the percentage that

represent the value of Premium category in 2011: 21%.

Target

Who TECHNO by Artic is designed for?

In order to define better the segment Artic is focused on, it’s useful to use different criteria as:

Geographic

Demographic

Lifestyle

Behavior

Purchasing Behavior

Thanks to these, it’s easier to mark the preferred target characteristics.

The strategy that TECHNO by Artic has developed will cover for its starter time the entire country

of Italy and it is thought for young costumers: boys and girls indicatively from 18 to 26 years old

that spend the days from Monday to Friday attending school, studying or working at least 8 hours

per day and that wait for the weekend in order to have fun with their friends and to meet new people

to enlarge their network of relations.

This is the main objective: having fun!

About young people that have fun there is an old prejudice: it’s common to think that it’s necessary

to get drunk in order to have fun with friends. The goal is to destroy this prejudice demonstrating

that young people can have fun in a different way, they can have fun responsibly.

As said in the market analysis, costumers now have a clear idea of what they want and how they

want it. Basing on that analysis, TECHNO by Artic responds to all the requests: it is the perfect

RTD spirit, thanks to its alcoholic content of 14.9° it’s a low-alcohol drink, its range of flavors can

satisfied all the costumers and the innovative design of the bottle is extremely attractive.

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More than all, what is noteworthy is the fact that this product contain almost every characteristic of

a classical Premium product: the brand Artic guarantee Quality and Authenticity, the distribution

reserved to Pubs gives an Exclusivity trait to the product, the two main peculiarities of TECHNO by

Artic (several tastes and particular design and packaging) are essential and this is another common

point with a Premium product; other two important Premium characteristics are the excitement and

the good looking & feeling that the product brings: these two concepts are achieved by the theme

nights organized by TECHNO by Artic.

Young people prefer to have party at home because drinks are really expensive: with 2 euros per

shot, here is the opportunity to party in Pubs with friends!

The distinctive trait of the chosen segment is that the people want to feel part of the brand; in order

to realize this wish will be essential the use of social network, as for example Facebook, Instagram

and Twitter.

Marketing Strategy

This section will be about how to reach the goal expressed before.

The idea is to organize theme nights in different Pubs all over Italy to make people have fun

spending time with their friends.

The schema below shows how it will work:

The TECHNO-Game starts with the creation on the event on the Social Network, in order to let the

people know about it and instill curiosity in them. The special theme will be revealed just 4 or 5

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days before in order to create a kind of suspense that will increase the curiosity.

There are two different type of parties: the Winter one will take place in Pubs in all the Italian cities,

while the Summer one will take place in the seaside resorts and Acqua Parks.

During the party, people can have fun thanks to the “Make-up Station” where they can use

fluorescent colors to make up and the “Pic Station” where a photographer will immortalize the best

moment of the night: these picture will be the object of the contest.

In the next days, everyone is invited to give the thumb up to the pic they like most and, at the end of

the month, the photo that has received more likes will win the contest.

What does it win? The winning pic will be the one that will represent the events the month after.

8


9


OPERATION PLAN

The following section is mainly focused on the organization of the actions that are going to be taken

in order to achieve the expected results. Since the plan is based on the creation of an event, one of

the key point that the company should follow is the realization of a solid value chain between the

public relations unit and partners. In order to do that, inside this unit, it is recomandable to nominate

one person as the Artic Techno representative that will be specialized in the promotion of the

events. This figure will be directly trained by the public relations responsible and updated to all the

new trends.

Artic Techno representative duties:

Follow the Artic Techno events;

Build solid relationships between venues and clients;

Represent the Company;

On the behalf of the Company take win-win decisions.

In the process of giving visibility to the product, another key figure will be a social media specialist

that will help advertise the event through the social networks. The expertise requested is again

related to the public relations one.

Social media specialist duties:

Now daily trends;

IT social networks knowledge;

Public relation expertise.

Events will take place in two different seasons and the features will change between winter and

summer. Events in both locations will be free for the company, since it is the location that accept to

do the party. Costs for the company are detected in the salary of various specialist and on the

remittances of gadgets and colours.

Winter Party Summer PartyPubs Seaside resort

All italians cities Acquapark

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The PR responsible and the Artic Techno representative (ATr) should met once a month and create

a wide range of possible events that will be discussed with the Board of Directors. Events will take

place only once a month in the same venue, but having a multiple choice possibilities could help not

to create time lapses within parties.

1st Step

The public relations unit should contact a graphic designer (GD) in order to create eye catching

flyers and advertisements. In addition he will figure out the frame were Artic Techno's customers

will take pictures. The frame will be transported on the party's evening and it will be in the

proximity of the counter in order to take a picture with the Artic Techno consumers (pic station).

Near the pic station, customers will be entertained by a make up station, were they will make up

with fluorescent colours for all the body.

2nd Step

The Artic Techno representative should select venues in order to organize the events. The event

should take place during weekends and mainly on friday night. In order to create expectation there

will be an “event turnover”; it means that only once a month the event will take place in the same

venue.

Parameters of location selection

Economical Not economical

Revenues Number of clients per night

How many shots does it sell Proximity to big cities

Willingness to buy Artic Techno How many likes on the main socials

3rd Step

Advertise and let the event go public. The support of a social media specialist (SMS) will be very

useful since he will know how the social network can work better. In Italy the suggestion is to focus

the attention on Facebook and Instagram.

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The hashtag # will be the instrument used in order to create a common web environment where the

visibility of the product will be highlighted. There will be one hashtag created and used for every

party; it will be easier to detect the winner of the contest.

Facebook

Create a page on the event. The page will be named both with the Company product and the venue's

one. There are no costs in following the strategy, the only remittance will be the SMS ones.

Source Example: Facebook

Instagram

Using this social it will be possible advertising both the event and the location and in addition,

satisfied customers will be able to post pictures of the party. Moreover at the end of the event, when

the contest will take place, it will be possible to detect the winner by having a look at how many

likes a picture has earned. As a price, the winner will receive a free gadget on the evening of the

next party just presenting himself at the entrance.

4th Step

What the Company should provide to the location will be the Artic Techno at €11 per bottle, colour

packs that contain fluorescent body skin lotion, fluorescent lipstick and various gadgets at €12 and

€8 per packs respectively. Gadgets will include fluorescent glasses and bracelets.

5th Step

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The contest will take place during the event, but the winner will be revealed only at the end of the

party, when pictures will receive their likes. The calculated feedback will be useful in order to asses

prises.

Strategies TimeframePerson

ResponsibleBudget Other resources

PR and ATr meeting Once a month PR and ATr

No budget needed

Salary of ATr:

€500

Time budget

Hire a GD Once a month PRSalary:

€500

Location Twice a month PR and ATrThe company

won't pay anithing

Time budget

Advertisement Once a month ATr and SMS

Cost related to

paper advertises:

€0.5 per page

SMS expertise and

coordination

Provide all the productsFour times per

monthATr

Prices:

€12 per colour

pack

€8 per gadget

packs

Transportation

costs, estimated

€10

ContestAfter every

partyPR

No budget

requested

Costs related to

the gadgets

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FINANCIAL PLAN

Cost analysis:

Total costs related to gadgets are estimated to be €8; each pack will contain 50 gadgets.

Total costs related to colour packs is estimated to be €10; each pack will contain 100 make

ups.

Graphic designer fee is estimated to be €500;

Total costs related to advertisement is estimated to be €0.5 per pages;

Total transportation costs €10;

Revenue analysis:

Each bottle will be sold at €14;

Each shot will be sold at €2;

Revenues are calculated as a percentage of what is going to be sold during the event. Since a bottle

contains almost 16 shots, total revenues will be equal to €32. Net profit for the pub will be equal to

€8, while €10 will be company's profit (60%).

Projections 2015

Year 2015 Location contacted by PR responsible

Location that will buy Artic Techno

Bottles sold (3 for each flavour) over 4 locations

Shots sold (16 per bottle at maximum capacity)

January 6 4 18x4=72 1152

February 6 4 18x4=72 1152

March 6 4 18x4=72 1152

April 6 4 18x4=72 1152

May 6 4 18x4=72 1152

June 6 4 18x4=72 1152

July 8 4 30x4=120 1920

August 8 4 30x4=120 1920

September 6 4 18x4=72 1152

October 6 4 18x4=72 1152

November 6 4 18x4=72 1152

December 6 4 18x4=72 1152

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Total 76 48 960 15369

Total revenue €13440 €30720

€ 44.160,00

Total Revenue (Bottles + shots) € 44.160,00

Gadgets cost € 250,00

Colour pack cost € 350,00

Graphic designer fee € 3.000,00

Transportation costs € 500,00

Advertisement cost € 250,00

Total cost € 4.350,00

Profit € 39.810,00

During the first year, profits will be slow down for two reasons:

-High cost related to the creation of events;

-Low customer new brand awareness.

Projections 2016





January 6 4 18x4=72 1152

February 6 4 18x4=72 1152

March 6 4 18x4=72 1152

April 6 4 18x4=72 1152

May 6 4 18x4=72 1152

June 6 4 30x4=120 1920

July 8 4 30x4=120 1920

August 8 4 30x4=120 1920

September 6 4 18x4=72 1152

October 6 4 18x4=72 1152

November 6 4 18x4=72 1152

December 6 4 30x4=120 1920

Total 76 48 1056 16896

Total revenue € 14.784,00 € 33.792,00

€ 48.576,00

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Profit € 46.176,00

During the second year it will be possible exploiting scale economies on the advertisement costs,

useful in order to decrease costs related to print all the flyers. In addition the customer knowledge of

the product will rise and it will be very suitable for the company sell more bottles during the

summer and winter period, where the major events will take place.

Projections 2017





January 6 4 18x4=72 1152

February 6 4 18x4=72 1152

March 6 4 18x4=72 1152

April 6 4 18x4=72 1152

May 6 4 30x4=120 1920

June 6 4 30x4=120 1920

July 8 4 30x4=120 1920

August 8 4 30x4=120 1920

September 6 4 30x4=120 1920

October 6 4 18x4=72 1152

November 6 4 18x4=72 1152

December 6 4 30x4=120 1920

Total 76 48 1152 18432

Total revenue € 16.128,00 € 36.864,00

€ 52.992,00


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Profit € 51.112,00

The third year will be characterized by a slightly reduction in costs, but the consumption will be an

important strength since parties will become even more crowded and there will be a new trend

within clients.

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Group 4_Business Plan

Documents

Transcript of Group 4_Business Plan