Alcopop - Case Study

Résumé du document

This study deals with the alcopop market in the UK and the opportunities for a company to expand to the French alcopop market. An alcopop is a sweet and flavoured drink, available in attractive packages full of colours with a small reference to the alcohol it contains. This beverage, which belongs to the Flavoured Alcoholic Beverages industry, is really famous among the very young population mainly because of its attractive price, even if it aims at targeting a more mature market from the age of 18 years to 25 years. The launch of this easy-to-drink alcohol was in 1995 in the UK market, but really took off in 1999 with the coming of Diageo's Smirnoff Ice, a U.S product which took almost a third of the UK FABs market with higher shares than in the US, according to Datamonitor (2007) and Food&Drink Europe (2003). These alcopops mainly attract the teenagers and especially the girl population, because they look without much risks and attractive than a can of beer, cider and lager. It's important to know that alcopops are as strong as the other categories of alcohol and irresponsible behaviours might have consequences on a person's actions and might be transformed in addiction. The marketing of these products is really controversial and according to Datamonitor (2007), teens are far more exposed to the advertising of these brands than adults who are the main target. In the first part of this study, firstly, I will analyse the UK market, then the alcopop sector and finally, the WKD alcopop. The analysis of the UK market will lead to the recommendation of a marketing strategy for WKD in the UK market from 2009 to 2012. In the second part, the study focuses on a European country to expand WKD internationally with a recommended market entry strategy.

Extraits

[...] Alcopop market showing FAB-ulous growth. Available from http://www.foodanddrinkeurope.com/Consumer-Trends/Alcopop- market-showing-FAB-ulous-growth [accessed 25/10/09] Finfacts (2009). World/Global Alcohol/Drink Consumption 2009. Available from http://www.finfacts.ie/Private/bestprice/alcoholdrinkconsumptionpriceseurope .htm [accessed 29/10/09] Mahlberg, A. (2007). Le “binge drinking”, une tendance nuisible. Available from http://www.francesoir.fr/societe/2007/10/03/le-binge-drinking-une- tendance-nuisible.html [accessed 28/10/09] Mucha, T. (2004). Alcopops Lose Their Fizz The decline of the flavored malt beverage segment offers consumer marketers a lesson in overindulgence. [...]

[...] Promotion: The most important part is promotion because WKD has to make its proofs. If they want students to be aware of this new cocktail, they have to adapt several strategies like sponsoring lots of student parties, organizing WKD nights in clubs, giving vouchers and gifts. It is probably the best way to make students as loyal customers, as they are fond of free or discounts. Concerning advertising, they should build a campaign for billboards and press with reference to British culture and obviously play with Wicked side”. [...]

[...] For a latecomer, accessing to this market will be very hard, because of the saturation and the small places it leave. Government regulations: As seen in the PEST analysis (Appendix there are lots of laws and rules, the retailers have age limit and restrictions concerning the promotion and they need to have a licence to sell alcohol; Pubs are regulated with opening hours and age limit as well. In the FABs industry, regulations concern the abv contained in bottle and all the promotion done around the product. [...]

[...] Restrictions imposed by laws are a negative factor concerning the promotion and distribution, but it can be lessen by the fact, that lots of laws concerning alcohol are EU decided and so, every country is in the same boat. II) Recommended market entry strategy from 2009-2012 WKD is not familiar in France, but, this brand has a huge experience of international markets, because of their presence in lots of countries. 2009-2012 no longer belongs to the alcopops sector as we can conclude from all the analysis and comments in this report. [...]

[...] All media should be used as well as events in clubs or outdoor to promote the new product. Of course, WKD website is a good aid to launch an original campaign. Part 2 Opportunities to WKD Iron Brew in France To expand a product into a new market, it is really important to look at the social and cultural principles which will affect the consumers' behaviours and their willingness or reluctance towards this new international product. Strategies such as adapting and standardizing the product are really important, because as Hofstede explained, “decisions based on how we operate in our home country”. [...]