Vincor Project Twist Case Solution
The Vincor Company was a manufacturer and distributor of wine and other refreshments. It had occupied a rank in the top eight largest manufacturers of refreshments in the alcohol beverage industry. It was the market leader in the Canada market having a market share of around 21%. The leading beverages that made it occupy this position in the market are Jackson-Triggs, Sawmill Creek, and Inn is killin.
The company reported its earnings exceeding US $400 million in the year 2004. The distribution channel which the company targets is based on where the alcohol beverage is mostly drunk such as in United States, Canada, South America and the United Kingdom. The total overall wine racks given to Vincor in the retail shops are 160 for putting the refreshments on the shelves of Ontario. The Liquor Control Board of Ontario (LCBO) controls the flow of liquors in the region and has made a certain restriction on the company by forcing it to distribute its products to 150 to 300 stores. It is essential for the company to make along-term relationship with the managers of the retail stores so it can properly distribute its products.
The refreshments which were the most sold and made them occupy the market in Canada are primarilyVex and Growing Cinders which were sold nearly one million. There were some other coolers as well such as Tabu, a low carbohydrate drink and among few others which were not considered as the major revenue source and neither presented for the companyâ€™s growth opportunity.
To survive in the current market and to compete with its competitors it was vital that the company needed to come up with tremendous innovations such as manufacturing of a new refreshment product, increasing the distribution, improving the product line extension, creating attractive advertisement and improvement in the packaging and labeling for the current refreshment products. For this, the company had hired a brand manager Kelly Kretz.Her responsibility was to improve the brand loyalty and productâ€™s positioning, development, and characteristics.
Decision on the selection of new product development:
There were 5 products for the Vincor Company to select. The sole responsibility lies on the new brand manager Kelly Kretz to select the appropriate product which would be successful in the future. The choices where were presented for the development of the new products are:
- Real fruit juice
- Spring Water
- Energy Drinks
Out of these 5 alcoholic beverages, one of them has to be selected which would be developed and manufactured with proper pricing, distribution, packaging, labeling, advertisement and other marketing activities.
After analyzing the strengths and weaknesses of all the choices presented for the development of the new product, the most appropriate refreshment for them to produce would be the Real fruit juice.The reason behind the selection of the â€˜Real fruit juiceâ€™is due to the fact that 85% of the entire population stated that they are willing to try a new real fruit juice making this selection by far the favorite. In the conducted survey, the majority of the respondents preferred the Real Fruit Juice. The other reasons for the selection of real fruit juices are:-
- Consumers prefer to buy a healthy product where the real fruit juice would be made from real fruits making it healthier, less artificial and less sweet.
- It would have less carbohydrate which would cause less gas/bloating to the consumers.
- Varieties of different flavors depending upon the fruits which the consumer can choose from.
- Less sugar to be used in the production of real fruit juice for the sugar conscious people.
There are few drawbacks for the â€˜Real fruit juiceâ€™ such as it has high competition, less sweet, consumerâ€™s perception of not being 100% made of fruit and providing differentiation that consumers can make the beverages at home.
The product â€˜Real fruit juiceâ€™ would be developed by having varieties of different flavor, premium and medium pricing which would attract the customers, plastic bottle packaging with a label providing the complete nutrition and ingredients detail of the juice and high amount of advertisement for the â€˜Real fruit juiceâ€™ being 100 % natural……………………
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