Marketing Mix -- Kopparberg's Cider Marketing Kopparberg's Thesis
- Length: 6 pages
- Sources: 4
- Subject: Business - Advertising
- Type: Thesis
- Paper: #94245698
Excerpt from Thesis :
Marketing Mix -- Kopparberg's Cider
Kopparberg's flavored cider is the product focus of this analysis. Kopparberg produces several flavors of alcoholic cider, all of which is distilled and bottled in Sweden ("Kopparberg," 2011). The target market for Kopparberg cider, at least when it first entered the UK market, was the 23 to 35-year-old crowd -- in other words, a consumer group that was no longer in college ("Kopparberg," 2011). The marketing goal was to take market share away from the manufacturers of white wine, flavored alcoholic beverages (FAB), and spirits ("Kopparberg," 2011). White wine tends to be preferred by women, particularly those in their late 20s to early 30s ("Kopparberg," 2011). But flavored alcoholic beverages (FAB) drinkers are generally in their late teens to early 20s -- the same demographic that picked up Kopparberg ciders as a favorite ("Kopparberg," 2011). People who prefer to drink spirits and spirits with mixers run the demographic gamut ("Kopparberg," 2011). Contrarily, Kopparberg was not going after the Buhners and Magners -- which tend to have steadfast and loyal consumers -- market in the UK ("Kopparberg," 2011). The popularity of Kopparberg's cider in the UK soon saw its target market spread -- in both directions ("Kopparberg," 2011). Young customers who were primarily university students became major consumers of the flavored ciders, even though Kopparberg did not invest in advertising to the university-aged consumer group ("Kopparberg," 2011). The popularity of the cider grew primarily by word-of-mouth ("Kopparberg," 2011). That Kopparberg adjusted to this new demographic of 16 to 22-year-olds is evident in their marketing, and particularly on their website and social media platforms ("Kopparberg," 2011).
What features do customers care most about? Kopparberg bottles flavored sparkling ciders ("Kopparberg," 2011). Flavor is the key product feature, which is not a surprise for a flavored alcoholic drink ("Kopparberg," 2011). The second product feature that consumers care about most is the effervescence ("Kopparberg," 2011).
How are the key features and benefits better or worse than those of competing products? Kopparberg's ciders have richer, more intense flavors than competitors' ciders ("Kopparberg," 2011). In addition, Kopparberg's cider tends to be just a tad sweeter than either Buhners or Magners ciders ("Kopparberg," 2011). This is not an accident as Kopparberg's ambition is to market to consumers who are partial to a sweet drink and might not have previously considered a sweet cider ("Kopparberg," 2011).
How do consumers choose and use products in this category? The success of Kopparberg ciders in the target market is largely a result of the quirky personality of the brand ("Kopparberg," 2011). The label designs, the bottle shapes, and the distinctive taste are all just different enough, without being off-putting ("Kopparberg," 2011). It is, in fact, Kopparberg's unique character that sets the cider apart from the established competitors in Ireland, Scotland, and England ("Kopparberg," 2011). Further, flavored cider competitors do not offer as wide a variety of flavors as Kopparberg does -- but then, the target markets are somewhat different, which is reflected in the new flavors that Kopparberg has added to the mix. There are currently only 7 varieties of Kopparberg cider sold nationally; Pear, Mixed Fruit, Elderflower & Lime, Strawberry & Lime, Apple, Alcohol Free Pear and Alcohol Free Mixed Fruit ("Kopparberg," 2011).
How is the product branded? Kopparberg doesn't have to reach far to claim unique attributes ("Kopparberg," 2011). The Kopparberg distillery is located in a small town in Sweden and the beverage has been made in that distillery since the beginning ("Kopparberg," 2011). Kopparberg is a low-alcohol alternative to beverages -- such as wine or beer -- and it imposes no compromise on taste, quality, or price ("Kopparberg," 2011). Kopparberg cider is also a good value for the price, coming in less than high-end lagers, wine, and spirits with mixers. Kopparberg touts its soft water with a low mineral content as the reason the natural fruit flavors of their cider are able to emerge unaltered ("Kopparberg," 2011). The best pilsners, Kopparberg tells its consumers, use soft water -- and the Kopparberg wells supply the only water that is used in their cider ("Kopparberg," 2011). In fact, the story goes that a Swiss consortium offered to buy Kopparberg's wells in order to export the water to Switzerland ("Kopparberg," 2011).
How is this product priced relative to competing products? Price is not a differentiator for flavored ciders ("Kopparberg," 2011). They all cost about the same, and do vary from country to country, and for that matter, from establishment to establishment ("Kopparberg," 2011).
What is the rationale for employing this pricing strategy? The rationale is that the ciders tend to have strong brand loyalty and consumers generally will not switch to another beverage, from their favorite, because of a lower price ("Kopparberg," 2011).
Are there pricing discounts (e.g., wholesalers, bulk)? For established distributors and for establishments with liquor licenses, there are bulk discounts ("Kopparberg," 2011). Special arrangements are made with foreign distributors in order to ensure that importing is cost effective.
Where is the product sold and why have those locations been selected? Kopparberg's cider is only sold in 40 countries, with the largest markets in Scandinavia, Britain, Ireland, Scotland, Australia, and New York City ("Kopparberg," 2011).
Do the locations give adequate accessibility to the target market? Potential consumers of Kopparberg's cider in the United States frequently inquire about where they can purchase Kopparberg's flavored ciders in America ("Kopparberg," 2011). An entire and potentially lucrative market is not part of the current Kopparberg target market and this is generates some resentment of those who do have ready access to the flavored ciders ("Kopparberg," 2011). The most common scenario, it appears, is that people have purchased and tasted Kopparberg's ciders while traveling, particularly in the United Kingdom, and set about searching for the products when they return home ("Kopparberg," 2011).
Are products sold online as well? Is there transparency between online and brick and mortar outlets? Selling Kopparberg's flavored ciders online has been a sort of stop and start affair ("Kopparberg," 2011). There is currently a link on the Kopparberg website to online sales of the cider, but the link doesn't work ("Kopparberg," 2011). Much of the social media networking traffic points to strong support for increased distribution of the cider and greater access, which includes online purchasing ("Kopparberg," 2011).
What marketing communications does this company use to promote the product? Kopparberg takes advantage of a full line of marketing communications but, because of the demographics of its consumers, focuses primarily on multi-channel digital platforms ("Kopparberg," 2011). Radio remains a strong channel for Kopparberg since it tends to draw the attention of Kopparberg's target market. In 2011, Kopparberg put out its first UK video on YouTube ("Kopparberg," 2011). The Kopparberg website is very appealing, and though it is not interactive, it does link to the social media platforms, such as Facebook and Twitter ("Kopparberg," 2011).
Describe the advertising, personal selling, public relations, direct marketing, etc. ("Kopparberg," 2011). Efforts). Kopparberg ran a full-fledged campaign when it launched the product in the UK ("Kopparberg," 2011). There were opening events at various venues across Great Britain ("Kopparberg," 2011). Kopparberg advertisements ran in the glossy travel guides that were passed out by concierges in up-scale hotels ("Kopparberg," 2011). The advertisements typically promoted a new cider flavor which made the Kopparberg brand stand out among the native British, Irish, and Scottish ciders, which all tend to be pear-flavored ("Kopparberg," 2011). One of the most popular Kopparberg promotions has been the FIND Kopparberg advertising campaign.
What main messages are portrayed to consumers? What is emphasized? What is the image? The main messages conveyed to consumers is that attractive, active, fun-loving young people drink Kopparberg's cider and that consumers can find Kopparberg's cider in all the hip clubs and significant happenings ("Kopparberg," 2011).
Governing bodies have become increasingly concerned that…