Table of Contents

Problem Statement………………………………………………………………………… 2

Situation Analysis…………………………………………………………………………... 2

Market and Segmentation Analysis……………….…………………………………. .. 3

Key Factors ………………………………….……………………………………………. 3

Alternative Analysis………………….…………………………………………………….. 3

Recommendations ………………………………………………………………….…….. 7

Action Plan…………………………………………………………..…………………..... 8
Problem Statement:
Vincor must choose the best product characteristics, positioning, branding, packaging and distribution strategy to introduce their new alcoholic beverage product in the refreshment market.
Situation Analysis • Objectives: • • Vincor’s objective is to have at least a 3-year lifespan in the market, since this would be considered ‘successful’ in the refreshment industry. Unsuccessful products were pulled from the shelves within their first year. 1 • • Background: In 2004, Vincor was the world’s eighth largest producer and distributor of wine and wine-related products. In Canada, Vincor was the market leader with 21% market share. The refreshment category was an important part of Vincor’s business in Canada, and was driven primarily by its Vex and Grower’s Cider brands, each of which sold nearly one million cases in 2005.1 In 2004, refreshments were a $230 million dollar industry in Canada. However, the refreshment category within the alcoholic beverage industry shrank by 6% year over year. Each province has one buyer and one primary source for distribution. The monopsonistic nature of the distribution channel added pressure to the launch of a new brand. The industry is extremely dynamic and trendy market, so new brands and brand extensions were launched every year. Being in a highly competitive industry and with customers willing to try out new brands, the company needs to be