THE PANAMA LIQUOR CO.
I. Summary of Facts
A. Market
1. Recent trends indicate U.S. market move toward non-whiskey products
2. Young drinkers have strongest demand for wine, vodka, tequila etc.
3. Market Development – new market, existing product
4. Vodka top selling in U.S.
5. Light drinkers (31% of U.S.)
6. Economic Market- Monopolistic Competition
B. Product
1. Seco/Suo
2. Other alcoholic beverages – gin, rum, whiskey, cognac, wine and anis
3. Seco treated as member of vodka category in U.S.
4. Benefits
i. Core- Experience of unique drink (brand name)
ii. Secondary.
1) Easy mixing with numerous beverages or juices.
2) Alternative to vodka
3) Unique distillation – pure sugar cane juice rather than molasses
5. PLC. Growth- A rapid increase in sales.
C. Price.
1. Large margins to motivate channel members
2. $7 per liter retail market average for premium branded vodka (~$63 case)
3. VC $8.30 per case
4. Elasticity- Somewhat elastic
D. Promotion
1. National Panama Airline used “seco” as promotion on international flights
2. Seco seen as national drink of Panama
3. Generally budget $2-$4 per case for advertising (shared btwn distiller and importer)
4. Expansibility- Expanda ...