Vincor

1. Problem Statement

Kelly Kretz, Marketing Manager of Vincor’s refreshment business, must decide on which type of cooler to introduce to the Canadian refreshment market. After engaging firms to do phases of qualitative research, as well as research on consumer demographics, perceptions and usage, Kelly must decide on the type of cooler, branding, and packaging in order to effectively launch this product.

2. Situation Analysis

a. Objectives, background and forecast

Vincor is an alcoholic beverage company that is in the business of producing and distributing wine, wine-related products and products in the refreshments category. Their operations extend across Canada, United States, New Zealand, Australia, South America and the United Kingdom. It is the leader in Canada with a market share of 21%. Vincor’s portfolio includes popular wines such as Jackson-triggs, Sawmill Creek and Inniskillin. It also includes in the refreshment category, Vex and Growers Cider brands, which in 2005 sold nearly one million cases. Their objective is to continue being an established leader in producing high quality wine and obtain an adequate market share of the wine and cooler market. The refreshments industry holds the opportunity for high volume sales which Vincor would like to capitalize on.

The Canadian refreshment industry is extremely dynamic, with sales in the range of $230 million in 2004. Companies are constantly offering new products and enhancing existing lines with new flavors and formats. The younger target age demographic is open to trying new things which provides an opportunity for companies to achieve high volume sales through successful innovation.

Currently, the refreshments category of the industry has been shrinking by six percent each year. It is dominated by Diageo’s Smirnoff Ice, Bacardi’s Bacardi Breezer and Mark Anthony’s Mike’s Hard Lemonade. Because of the changing trends and tastes of consumers, the...