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IMC Plan Reena Kaur Somal 33311957 Marketing & Advertising Management Module Leader: Neil Kelley Word Count: 2,739 18.12.2012 Integrated Marketing Communications

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IMC Plan

Reena Kaur Somal 33311957Marketing & Advertising ManagementModule Leader: Neil KelleyWord Count: 2,73918.12.2012

Integrated Marketing Communications

Executive Summary

Moët & Chandon remains one of the world’s oldest luxury champagne brands in the UK

accounting for 10% of champagne sales, however its sales have fallen 9.6% in 2009

(Mintel). From the recent report Global market review of Champagne it was noted “people

are fed up with austerity…if people are looking for indulgence, Champagne is celebration

and indulgence”. This IMC plan addresses all the necessary strategies and tactics to achieve

these measurable results.

Research determined that 24 - 35 year old females have the strongest influence on the

champagne market with 37% able to afford this luxury due to their high disposable income;

which poses an opportunity for Moët and Chandon to expand into this market by reaching

these individuals. In order for Moët and Chandon to grow in the UK market, the

implementation of this plan will undoubtedly achieve the objectives of increasing 20% brand

awareness of 24 - 35 ABC females by December 2013.

Changes in society have also seen a change in associations with champagne. 71% of

consumers drink champagne on special occasions, however it seems Champagne is

becoming a drink for occasion rather than celebrations. 27% of consumers are now drinking

Champagne at home to save money, compared to 15% purchasing Champagne at a higher

price in many on-trade establishments such as pubs, bars and restaurants. This continued

growth in entertaining at home is expected to help boost sales in the champagne sector by

19% over the next four years. (Mintel) Moët and Chandon can therefore extend its

associations and position itself as the preferred brand of champagne to drink and indulge at

home for romantic nights in and dinner parties of 24 – 35 year old ABC’s.

These objectives can be achieved through a mixture of communication tactics and strategies

in order to widen brand awareness and persuade consumers to indulge in the comfort of

their own home. By addressing these objectives, potential results could lead to an increase

in sales in the UK of Moët and Chandon and more awareness of the brand.

2 | P a g e

Contents

1. Introduction……..……………………………………………..………………………...….4

2. Summary of Context Analysis……..…………………………………..……………..…5

3. Communications Objectives…………………………..…………………………………7

4. Promotional Strategy…………………………..…………………………………….......8

4.1. Perceptual Map………………………………………………………………….....9

5. Communications Mix…………………………..……………………………………..….10

6. Implementation Plan…………………………..……………………………………..…..12

6.1. Gantt Chart…………………………………………………………………………12

7. Control and Measurement…………………………..…………………………………..14

8. Summary…………………………..……………………………………..………………...15

9. Appendix…….………………………………………..……………………………………..16

9.1. Context Analysis - External Analysis………………………………………………..16

9.2. Customer Analysis…………………………………………………………………….17

9.3. Stakeholder Analysis………………………………………………………………….17

9.4. Business Analysis……………………………………………………………………..18

9.5. Internal Analysis……………………………………………………………………….19

9.6. SWOT Analysis………………………………………………………………………..20

10. Bibliography…..……………………………………………………….……………………....21

3 | P a g e

1. Introduction

The purpose of this IMC Plan is to help the world’s oldest luxury champagne Moët and

Chandon grow in the UK’s champagne sector. Moët & Chandon remains the largest

champagne brand in the UK accounting for 10% of champagne sales however its sales fell

9.6% in 2009 (Mintel). In a recent report Global market review of Champagne it was noted

“people are fed up with austerity…if people are looking for indulgence, Champagne is

celebration and indulgence”. An IMC plan therefore needs to be conducted to remind and

retain customers of Moët and Chandon being a brand of elegance and to indulge more often.

2. Summary of Context Analysis

4 | P a g e

There are many factors which will impact Moët and Chandon’s IMC. In terms of social

factors, the level of involvement from customers has declined due to turning to sparkling

wine as an alternative. Buyers’ attitudes towards Champagne found that 69% of consumers

agree that buying sparkling wine instead of Champagne is a good way to save money (See

Appendix 9.2.) Since 2007, sparkling wine as an alternative to champagne has increased by

55% reaching an estimated £720 million. This has impacted sales of Moët and Chandon

declining by 9.6% (Kimberley) which has seen a drop in sales by 27% from 2007 – 2012

(Mintel). It seems that champagne’s luxury status positioning is leading to this economic

downturn. With the increasing power of supermarkets, Moët and Chandon are struggling

with the deep-cut promotions of champagne; as only 9% of consumers spend more than £30

per bottle which has affected Moët and Chandon’s sales dramatically. (Bainbridge 2012)

These price cuts and promotions have influenced consumers to the extent that 53% of

drinkers said they would not pay for it unless it’s on promotion (See Appendix 9.2.)

That being said, according to Mintel, 35+ C2 females with households with an income of

over £50,000 are more persistent to purchasing champagne. Their enthusiastic attitude

towards champagne demonstrates their ability to drink on both celebratory and relaxed

occasions as their willingness to spend more than £15 per bottle is higher than average. 24 -

35 year old females have the strongest influence on the market with 37% able to afford this

luxury due to their high disposable income; which poses an opportunity for Moët and

Chandon to expand into this market by reaching these individuals (See Appendix 9.2.)

Changes in society have also seen a change in associations with champagne. 71% of

consumers drink champagne on special occasions, however it seems Champagne is

becoming a drink for occasion rather than celebrations. 27% of consumers are now drinking

Champagne at home to save money, compared to 15% purchasing Champagne at a higher

price in many on-trade establishments such as pubs, bars and restaurants (See Appendix

9.2.) This continued growth in entertaining at home is expected to help boost sales in the

champagne sector by 19% over the next four years. (Mintel) Moët and Chandon can

therefore extend its associations for romantic nights in and dinner parties for more usage.

In terms of threats, competitors such as Tesco are now creating own-label brands as

cheaper alternatives. Tesco’s current Christmas campaign advertises Tesco Finest Premier

Cru Non Vintage Champagne at just £9.99. Their value for money champagne is

emphasised through a cheaper price than well-established brands. However in 2008-11,

Tesco accounted only for 7% of advertising spend compared to Moët and Chandon which

5 | P a g e

was the highest spending advertiser in the Champagne market with 25%. This just reflects

Moët’s strengths in their communications and identifies Tesco’s weakness in their

communications (See Appendix 9.3.) In 2012, competitor Lanson launched a limited edition

packaging with a Union flag design for the Queen’s Jubilee celebrations which was available

in all major retailers. Although Lanson was successful in the launch of a new limited edition

and advertised this well, they faced criticism for undertaking a promotion that sways away

from their brand positioning of a French brand. In this aspect, Lanson failed to communicate

effectively through their marketing communications (See Appendix 9.3.)

3. Communications Objectives

6 | P a g e

From the key findings, the level of involvement from customers has declined due to 69%

turning to sparkling wine as an alternative to champagne as a good way to save money. This

has impacted sales of Moët and Chandon declining by 9.6% (Kimberley) which has seen a

drop in sales by 27% from 2007 – 2012 (Mintel). For Moët and Chandon to grow in the UK

market, they need to continue to target their existing customers through reminding them of

the brand. A potential SMART objective therefore could be to raise brand awareness of Moët

and Chandon by 20% of 24 - 35 year old ABC females by December 2013. Targeting at this

audience will raise more brand awareness as according to Mintel, for the Champagne

market, ABC 18 – 34 year-olds females have the strongest influence on the market size with

37% able to afford this luxury due to their high disposable income (See Appendix 9.2.) This

presents Moët and Chandon with an opportunity to grow in the UK market by reminding

customers of Moet being a brand of elegance and to indulge more often.

Another objective could be to position Moët and Chandon as the preferred brand of

champagne to indulge at home for celebratory romantic nights in and dinner parties of 24 –

35 year old ABC’s in the UK by December 2013. By positioning Moët and Chandon as not

only a drink to indulge for special occasions but to position it to be enjoyed to celebrate

nights in; this will help Moet and Chandon grow. This is due to 27% of consumers now

drinking Champagne at home to save money, compared to 15% purchasing Champagne at

a higher price in many on-trade establishments (See Appendix 9.2.) This continued growth in

entertaining at home is expected to help boost sales in the champagne sector by 19% over

the next four years. (Mintel) Therefore this can be a great opportunity for Moët to make full

advantage of both males and females celebrating and indulging in the comfort of their own

home.

4. Promotional Strategy

7 | P a g e

To raise 20% brand awareness of 24 - 35 year old ABC females and to position Moët and

Chandon as the preferred brand of champagne to indulge at home for celebratory nights in

of 24 – 35 year old ABC’s by December 2013, a blend of Fill’s 3P’s of promotional strategy

can be used to help achieve these objectives. In order to do this, over the next 12 months, it

is recommended that Moët advertise group celebrations of friends and family hosting dinner

parties and romantic nights in towards the run-up of Valentines Day, Christmas and New

Year.

It is recommended to use a pull-positioning strategy to generate increased levels of

awareness, encourage involvement and ultimately provoke a motivation to purchase Moët

champagne to indulge at home through the delivery of mass-media advertising campaigns

(Fill 2009). This can be achieved through Fill’s DRIP theory in reminding consumers to

indulge more often and thereby improve sales through persuasion. A push strategy can also

be used in helping achieve these objectives by increasing consumers’ brand awareness

through pushing the product down through the channel towards the end-user for

consumption. Communicating with retailers such as Marks & Spencer’s, Waitrose and

Debenhams can help push the product and message of increasing brand awareness and

indulging at home to the end consumer (Fill 2009). It is also recommended to use Fill’s

profile strategy through using P.R as the main communication tool in influencing a range of

stakeholders to help build a positive profile and satisfy Moët and Chandon’s corporate

promotional goals and build reputation (Fill 2009).

A differentiated targeting approach will be best suited as Moët and Chandon need to break

down communications to target at different audiences. Through altering communication

messages to certain audiences, this will make sure the message gets out there (Fill 2009). A

different message needs to be communicated to 24 - 35 ABC females to increase brand

awareness compared to 24-35 ABC males and females to indulge in celebratory nights in at

home. This will therefore position Moët and Chandon as not only a brand of sophistication

but a brand to be indulged during celebratory evenings at home. A perceptual map, as

outlined below illustrates how Moët and Chandon will still be positioned in the mind of

consumers as a premium brand but differentiate itself from other competitors such as

supermarkets own brands with maintaining their high quality and affordable price.

4.1. Perceptual Map of Champagne:

8 | P a g eHIGH PRICE

(Adapted from Fill 2009 p341)

5. Communications Mix

9 | P a g e

Laurent Perrier

ASDA’s Smart Price Champagne

Lanson

TESCO Finest Champagne

Moët and Chandon

HIGH QUALITY

LOWQUALITY

LOW PRICE

Jacquart

To achieve these objectives, a mix of coordinated marketing communication tactics needs to

be employed. In order to position Moët and Chandon as the preferred brand of champagne

to drink and indulge at home for celebratory romantic nights in of 24 – 35 year old ABC’s by

December 2013, it is recommended to use a variety of messages which can be implemented

within the communications mix. An emotional advertising approach of friends and family

celebrating at home will persuade consumers of Moët and Chandon to indulge at home more

often. This advertisement can be broadcast on ITV during the break of Coronation Street as

the viewers of Coronation Street are similar to the target audience of Moët being in the 24-35

ABC category. Advertising on ITV will widen brand awareness as ITV reaches all of the key

demographics including 88% of housewives, 78% of ABC1 Men, 74% of 16-34 year olds and

81% of ABC1 adults (ITV Media). De Pelsmacker identified with a mass-media advertising

campaign, websites will be more frequently visited when the URL is delivered on the

advertisements (De Pelsmacker). Therefore Moët and Chandon should include their web

address on the ad and include a sponsored active web banner on the ITV website to widen

brand awareness. It is also recommended to advertise through cinema when a major

blockbuster is showing which will reach an estimated 1,000,000 viewers per week. This can

be achieved through a GAP Alcohol buying route in widening the brands awareness (Pearl &

Dean 2011).

Another tactic which can be employed is to advertise in magazines which have similar

readers to Moët and Chandon. ELLE magazine targets at 18-26 year old women with a high

disposable income; therefore this fits in with raising awareness of Moët consumers of ABC

24-35 females. Adverts can be displayed in Vanity Fair magazine which reaches high ABC1

educated, sophisticated males and females with a total net circulation of 100,692.

Additionally, it can be recommended for Moët and Chandon to advertise in The Daily Mail as

they have a readership of 2,720,000 of ABC1 consumers; therefore can reach wealthy

business executives in the ABC1 market (Mail Classified). Transport advertising is another

form of media which can be utilised in raising brand awareness of ABC 24-35 year old males

and females. Advertising on a full bus side, side of bus stops and on billboards in prime

locations will be beneficial in building awareness of Moët.

It is recommended to use P.R to build a positive profile of Moët and Chandon through the

use of celebrity ambassadors (Fill 2009). Using opinion formers like Moët’s former celebrity

ambassador Scarlett Johansson to convey images of ‘elegance and glamour’ can help raise

brand awareness. With Moët and Chandon’s target audience being AB 24-35 females, it can

be suggested to appoint a new celebrity ambassador such as Eva Longoria to increase

10 | P a g e

awareness and credibility of the brand. Eva Longoria is a suitable match due to her high-

profile status as a Desperate Housewives star and holding contracts with Hanes, Heineken,

Magnum, Sheba and as the face of cosmetics giant L'Oreal (IMDB 2012). Having a celebrity

ambassador can be demonstrated through advertising campaigns on billboards and

transport advertising in prime locations and within London. It is recommended to advertise in

regions of London as this is where the main target market of Moët and Chandon are situated

due to being wealthy, ABC business-class individuals. Using P.R and sponsorship through

celebrity ambassadors therefore can have synergistic effects on a company’s image-building

through helping build awareness of Moët and Chandon (De Pelsmacker et al).

Retailers such as Marks & Spencer’s, Tesco and Waitrose can persuade consumers to

indulge at home through a push strategy. Offering free sampling tasters in-store every day

through personal selling will raise consumers’ awareness of the brand (Fill 2009). According

to De Pelsmacker ‘in-store or point-of-sale communications that are consistent with

advertising are more effective.’ It can be suggested for Moët to hire a sales assistant within

retail stores on a standard rate of £131 per day to provide samples (Tesco Sampling and

Demonstrations). According to Tesco Media, this will “enhance the shopping experience for

customers, drive NPD awareness and drive footfall into low frequency categories” (Tesco

Media).

6. Implementation Plan

11 | P a g e

In order to achieve these objectives, it is recommended for Moët to use an objective and

task budget-setting method through working out all the resources needed to achieve each

objective into an overall budget which can be illustrated from the 12 month implementation

plan (Fill 2011).

Moët and Chandon should set a budget of £3 million for their marketing communications

over the next 12 months including a £1.5 million budget set aside to have Eva Longoria as

the new celebrity ambassador. Eva Longoria holds contracts with L’Oreal and Sheba for

£1.5m - £2m, therefore this is a realistic budget to pay Eva Longoria to be the face of Moet

(Joseph 2012). It is recommended for Moët and Chandon to use a rising continuity

scheduling approach alongside a regular pulsing scheduling approach. These approaches

will allow Moët and Chandon to gradually build their advertising within the upcoming

seasonal months of Christmas, New Year and Valentines Day of people having celebratory

romantic nights in. Within the 12 months, after February, Moet should resume advertising for

the upcoming summer months to reinforce people indulging.

6.1. Gantt Chart:

.

12 | P a g e

13 | P a g e

7. Control and Measurement

To determine the effectiveness of the IMC plan, measurable criteria needs to be conducted

to achieve these objectives. To evaluate the success of the objectives, a monthly forecast

should be conducted to identify any track changes in awareness levels and positioning of the

brand. This should be conducted in November 2013 so that enough time is allocated to

make any necessary changes for the upcoming year.

Using Fill’s (2011) marketing control process can evaluate actual performance against

established standards. To evaluate how successful Moët and Chandon’s advertising is, pre-

testing and post-testing can be utilised in getting people’s opinions and feedback.

Established standard industries such as BARB, POSTAR, FAME and JICREG evaluate the

percentage numbers of who is watching what. According to Fill (2011) “feedback is vitally

important because it provides information for the context analysis that anchors the next

campaign.”

It is recommended for Moët and Chandon to evaluate the success of using a new celebrity

ambassador through measuring P.R and sponsorship. P.R is about establishing and

maintaining goodwill and mutual understanding between an organisation and its publics

(CIPR 2012) therefore this tactic needs to be measured. Evaluating P.R against column

inches is a good way to measure the coverage of Moët and Chandon mentioned in the

press. To measure the performance of sponsorship, in using a celebrity ambassador, pre

and post testing will identify consumers’ awareness of the brand. It can be recommended to

use the tool gap analysis which will offer a method of how to monitor success or failure when

it comes to achieving Moët and Chandon’s promotional objectives.

14 | P a g e

December 2013

Increase awareness by 20% of 24 – 35 ABC females.

8. Summary

From the recent report Global market review of Champagne it was noted “people are fed up

with austerity…if people are looking for indulgence, Champagne is celebration and

indulgence”. This IMC plan addresses all necessary strategies and tactics to achieve these

measurable results. In order for Moët and Chandon to grow in the UK market, the

implementation of this plan will undoubtedly achieve the objectives of increasing 20% brand

awareness of 24-35 ABC females by December 2013 and position Moët as the preferred

brand of champagne to indulge at home for romantic nights in and dinner parties of 24 – 35

year old ABC’s. By addressing these objectives, Moët and Chandon will be able to widen its

brand awareness and see an increase in sales.

15 | P a g e

9. Appendix

9.1. Context Analysis - External Analysis:

Moët &

Chandon

PESTEL

Factors

Potential

Impact

Implications & Importance

Issue PESTEL High

Medium

Low

Time

Frame

Opportunity

or Threat

Implication Relative

Importance

Sparkling wine seen as a credible alternative to champagne both in the on- & off-trade.

EconomicSocial

High Long Threat Increasing High

British consumption of champagne has declined.

EconomicSocialPolitical

High Undeter-mined

Threat Not yet determined

High

Increase in social media means more channels to communicate through.

SocialTechnological

Medium Medium Opportunity Increasing Medium

Increase in social media means more exposure to be criticised.

SocialTechnological

Medium Medium Threat Increasing Medium

Health considerations associated with drinking (Drink Aware and Responsibly).

LegalSocial

Medium Long Threat Increasing Medium

ASA regulations of how and where Moet is advertised.

Legal Low Undetermined

Threat Constant Low

Champagne is becoming a drink for occasion rather than celebrations.

Social Medium Medium Opportunity Increasing High

16 | P a g e

9.2. Customer Analysis:

According to Mintel, the target market of Moët & Chandon champagne are AB 24 - 35

year old females living in urban areas, predominantly London with households with

an income of over £50,000. Their enthusiastic attitude towards champagne means

they are more likely than average to drink them on a variety of both celebratory and

more relaxed occasions. Their willingness to spend more than £15 on bottles of

Champagne is higher than average. (Mintel 2012)

24 - 35 year old females have the strongest influence on the market size with 37%

able to afford this luxury due to their high disposable income. (Mintel 2012)

Buyers’ attitudes towards Champagne found that 69% of consumers agree that

buying sparkling wine instead of Champagne is a good way to save money. (Mintel

2012)

Champagne drinking is falling, with sales dropping 27% (2007 to 2012) to an

estimated £690m due to rising unemployment and falling disposable income. (Mintel

2012)

Champagne’s luxury positioning leading to an economic downturn. The champagne

category has been hit by price cuts and promotions, to the extent that 53% of

drinkers say they won't pay for it unless it's on promotion. (Mintel 2012)

More consumers are drinking at home to save money over buying Champagne in

many on-trade establishments which are higher in price. (Mintel 2012)

9.3. Stakeholder Analysis:

Employees of Moët and Chandon need to be kept informed and knowledgeable

about Moet and Chandon’s range of champagne products.

Moët and Chandon champagne is imported from France to the UK through

intermediaries and suppliers. In terms of imports of champagne, the UK remains the

leading market globally importing 34.5m bottles in 2011 (out of 323m shipped in total)

although it is declining. (Mintel 2012)

Retailers include Sainsburys, Marks & Spencers, ASDA, Tesco, Waitrose, Costco

and independent convenience stores who sell Moet and Chandon at RRP.

Pressure groups such as Drink Aware are committed to communicating drinking

responsibly and need to ensure that this message is communicated throughout Moët

and Chandon’s advertising campaigns.

Governing bodies such as the ASA measure and regulate how and where Moët and

Chandon champagne is advertised and if it sticks to the rules and regulations of

advertising alcohol.

17 | P a g eLow Level of Interest High

Monitor…Minimal Effort

Suppliers

Keep Informed

Shareholders

Employees

Keep Satisfied

Government

Key Players

Pressure Groups

Customers

(Mendelow 1991).

9.4. Business Analysis:

Major competitors include: Lanson, Cristal, Mumm, Jacquart, Laurent-Perrier &

Bonnaire.

Retailers such as Tesco, Asda, Sainsburys are offering their own range of

champagne at a cheaper price. They are communicating their good value for money

champagne through emphasising a cheaper price than well-established brands

(Mintel 2012). Tesco’s newest Christmas campaign advertises Tesco Finest Premier

Cru Non Vintage Champagne at £9.99.

Competitor Lanson launched limited edition packaging with a Union flag design for

the Queen’s Jubilee celebrations in 2012. (Mintel 2012)

August 2012 saw the popular wine brand Jacob’s Creek launch a Trilogy range of

sparkling wines through on and off-trade channels to tap into growing consumer

demand for sparkling wine. (Mintel 2012)

Luxury hotels such as the Wellington Lounge in London are embracing flavoured

Champagne which is seeing an increase in the on-trade of champagne. (Mintel 2012)

September 2011 saw the competitor Nicolas Feuillatte launch a 35-year anniversary

limited edition Champagne sold at John Lewis stores in the UK at £29. (Mintel 2012)

Competitor Jacquart teamed up with Sainsbury’s to launch its new Blanc de Blancs

2005 vintage bottle which sells with a gift box at £35.99 in November 2011. (Mintel

2012)

Waitrose stepped up investment in the Champagne market, which jumped from zero

in 2009 and 2010, to £1.18 million in 2011, the highest spend of the year. Just under

two thirds of this came via TV advertising, with the remainder accounted for by press

advertising. Duval Leroy was the leading brand, which saw investment of almost

£800,000 from the retailer on a high profile TV campaign (Mintel 2012).

18 | P a g e

Hig

h L

eve

l of

Infl

uen

ce L

ow

Moet & Chan

don

Heidsie

ck

Lanso

n

Etien

ne Dumont

Jacquart

Mumm

Lauren

t-Perr

ier

Own-label

0

5

10

15

20

25

30

35

40

45

200920102011

Top-Selling Sparkling Wine Brands in the off-trade (£m)

Source: Adapted from Mintel (2012)

9.5. Internal Analysis:

Moët and Chandon’s values and dedication are to make fine champagnes dazzle

with the spirit of charisma and accomplishment. They are one of the “world’s most

loved champagne” that has been associated with the sparkle of success and

glamour. (Moët 2012)

Ranked 9th in the top 50 drinks brands 2012.

Ranked 17th in the top 100 world's most powerful spirits and wine brands 2012.

Moët & Chandon has created exclusive cuvées for both the Queen’s Silver and

Golden Jubilee celebrations. Sold in Waitrose, Fortnum & Mason, Selfridges, Harvey

Nichols and Harrods from May 2012. Waitrose gained some of the biggest attention

as this was the first time; such a product has been approved for public sale. (Mintel

2012)

Latest innovation - Moët Ice Impérial which is the first ever champagne created to be

enjoyed on ice which brings their fans a new, uniquely refreshing champagne

experience. (Moet 2012)

In 2010, Moët agreed its first TV sponsorship deal with Sky for coverage of the

Oscars and Golden Globes awards ceremonies. (Mintel 2012)

The Moët mini-flute format is now a must on the red carpets of international film

festivals and Moët Imperial bottles personalised with Swarovski crystals bring a

special touch to exclusive events. (Moët 2012)

19 | P a g e

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120

0.51

1.52

2.53

3.54

4.55

Moët & Chandon

Total Brand Value ($m)

Source. Adapted from: Interbrand (2012).

9.6. SWOT ANALYSIS:

STRENGTHS:

Well-established for over 200 years.

Drink of royal individuals: Queen Elizabeth/Napoleon.

Moet annually produces approx. 25million bottles of

champagne.

Got attention through the popular culture of songs and

films.

Strong association with special occasions, with 71% of

Champagne users drinking it on occasions such as

birthdays and weddings.

WEAKNESSES:

Luxury product, champagne sector going down.

Recession affecting peoples’ disposable income.

Sparkling wine is now seen as a cheaper

alternative to Champagne with seven in ten

users finding buying sparkling wine is a good

way to save money.

OPPORTUNITIES:

Champagne is becoming a drink for occasion rather

than celebrations. Can extend its associations for

romantic nights in and dinner parties for more usage.

27% of consumers drinking Champagne at home

compared to 15% at pubs, bars, clubs and

restaurants.

The Champagne market looks to be well placed to

benefit from the growth in the number of 25-34-year-

olds, who look likely to strengthen their position as the

key demographic group.

THREATS:

Competitors now creating own-label brands

which are cheaper alternatives.

Growth of sparkling wine as an alternative has

increased by 55% since 2007 and reaching an

estimated £720 million in 2012.

Only 9% of consumers’ spend more than £30

per bottle. Decline in consumers’ willingness to

spend more than £30 due to deep-cut

promotions.

20 | P a g e

10. Bibliography

Bainbridge, J. (2012) Sector Insight: champagne and sparkling wine. “Brands are battling

bargain-hunters and a general decline in drinking” Brand Republic [Internet], September 12

2012. Available from: <http://www.brandrepublic.com/analysis/login/1148234/> [Accessed

22nd October 2012].

BRAD Insight (2012) Daily Mail Available from:

<http://www.bradinsight.com/BRAD/Profile/Title/a0HD000000B2bKOMAZ> [Accessed

15.12.2012]

BRAD Insight (2012) ELLE Magazine Available from:

<http://www.bradinsight.com/BRAD/Profile/Title/a0HD000000B2bQFMAZ> [Accessed

15.12.2012]

BRAD Insight (2012) Vanity Fair Magazine Available from:

<http://www.bradinsight.com/BRAD/Profile/Title/a0HD0000008ju4AMAQ> [Accessed

15.12.2012]

CIPR (2012) About PR [Internet] Available from:

<http://www.cipr.co.uk/content/about-us/about-pr> [Accessed 16.12.2012].

Directional Media (2012) Rate Card - Billboard Available from:

<http://directionalmedia.co.uk/products/rate-card> [Accessed 15.12.2012]

De Pelsmacker et al., (2007) Marketing Communications: A European Perspective. FT

Prentice Hill. Pearson Education Limited. Essex. 3rd Ed. p11.

Fill (2009) Marketing Communications: Interactivity, Communities and Content. FT

Prentice Hall. Essex. 5th Ed. quote taken from p314.

IMDB (2012) Eva Longoria Biography [Internet] Available from:

<http://www.imdb.com/name/nm0519456/bio> [Last Accessed 12.12.2012]

Interbrand (2012) Best Global Brands [Internet] Available from

<http://www.interbrand.com/en/best-global-brands/2012/MoetChandon> [Accessed 22nd

October 2012].

21 | P a g e

ITV Media (2012) ITV1 Platforms [Internet] Available from: http://www.itvmedia.co.uk/itv-

platforms/itv1> [Accessed 13.12.2012].

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