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Digital Marketing

5 th Lane Liquor. Digital Marketing. Karlien van Rhijn Amanda Janie Ansell. 5 TH LANE LIQUOR. BRANDING Branding strategies include: Expressing key objectives Expressing brand message to key target audience 5 th Lane Liqor wishes to be perceived as an upscale liquor merchant

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Digital Marketing

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  1. 5th Lane Liquor Digital Marketing Karlien van Rhijn Amanda Janie Ansell

  2. 5TH LANE LIQUOR BRANDING Branding strategies include: • Expressing key objectives • Expressing brand message to key target audience • 5th Lane Liqor wishes to be perceived as an upscale liquor merchant • Motivate buyers by providing a brand that supplies quality liquor to Corporate events • Increase user loyalty within target market (25-45)

  3. 5th Lane LiquorIndustry • 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. 5Th Lane Liquor have two liquor outlets in CBD areas, one in Melbourne and the other in Sydney. • 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%. 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.

  4. market research • Vintage Cellars • Dan Murphy’s • eBottleO • North Sydney Cellars • Ice Box • Booze Brothers • Liquor Home Delivery • LiquorLand • Celebratons • Red Bottle • The following 10 websites were analysed 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 <>

  5. Situation Analysis

  6. 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

  7. Segmentation Connoisseur Conformist Pragmatist Key AttitudesKey AttitudeKey Attitude Worth paying a premium Having something in More practical element for qualitycommon with others Mainstream products Knowledgeable about Less knowledgeable premium products Seeking recognition DriversDriversDrivers Better Taste Perceived image Convenience of service More flavoursome from purchase Not all about the taste Quality Upper class Overall experience More likely to be:More likely to be:More likely to be: 30-60 30-60 45+ Corporate Lower wage bracket City dweller, outer city living

  8. 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

  9. E-Marketing Strategy

  10. 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

  11. 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. Fig. 1.2 Map of Melbourne displaying same day delivery restrictions. <> <>

  12. Implementation Plan 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 Pricing Strategies

  13. Implementation Plan Relationship Management Strategies • MEMBERS card, and loyalty program • Specials & discounts. Free delivery • 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

  14. Implementation Plan Marketing Communication Strategies 5th Lane Functions • E-Commerce website • Content Management • Newsletter (email & snail mail for members) • Navigation Tools • Site membership and affiliate services • Gift voucher system • Testimonial page • Personalised basket and checkout system • 5th Lane Blog promoting direct response • Advertisements in Sydney Morning Herald, BRW (Australia's leading weekly business magazine) and WineEstate Magazine ( • 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.

  15. 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: • 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: • Consumers - prospective, current, past, withdrawn • Social media networks - Facebook, Twitter • Industry blogs, magazines etc - Wine Estate, • Industry professionals

  16. Organisational Structure for Implementing the plan A ‘Horizontal Organisational Structure’

  17. Budget • Aim to reduce delivery cost, encourage larger orders within corporate sector • Target Metropolitan regions, consumer pays less • 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.

  18. Evaluation Plan • Sales conversion rate per website visit • Feedback – data collection • Direct response/Call to action – successful? • New memberships • Have we been true to our objectives? • Have we attracted qualified prospects who’ve shown an interest in 5th Lane Liquor? • Positive ROI? • Privacy and confidentiality • Repeat business In summary, our evaluation plan is feasible in terms of budget, schedule, personnel availability and data availability. It is calculated and realistic.

  19. References Liquor industry drowning its sorrows November 2007 Accessed: Thursday 2nd September 2010 IBISWorld Liquor Retailing in Australia 2010 Australian Industry Report 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

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