Introduction and organisation background
Pisco Biondi is a liquor making organisation based in Peru. It was founded in the year 1972 by Antonio Biondi and was first called Antonio Biondi and sons. It was eventually renamed Pisco Biondi SAC after it became a public corporation.
The company is located in Southern Peru so that manufacturers can gain access to raw materials easily. The organisation does not concentrate on mass production of its various categories of liquor because it prefers to provide more quality than quantity. This is the reason why the biggest demographic in its retail sales is composed of high income earners.
The company initially focused and sold to the Peruvian market exclusively. However, this has now changed with its expansion into Germany, Mexico, Japan and even the United States.
Now that the company is moving into these international markets, it will also use the same targeting strategy in those foreign markets. Pisco Biondi will largely be selling to high income earners there as well. It is in need of a fresh, efficient and economical way of reaching this new target market.
There are a wide range of products sold by the company but all are derived from grapes. The item is a brandy that is consumed by most Peruvians; however, Pisco is also made in neighbouring countries such as Bolivia and Chile. Examples of brand names one can find in this product range include Bindi Italia, Biondi Puro, Biondi sour or Buiondi Italia six pack.
Description of what the initiative is about
The initiative will focus on providing this Pisco maker with an e marketing solution for their business in the new foreign countries. The initiative will combine two components which include online direct sales and online direct marketing.
The main goal in this initiative is to be able to get to wide audience as well as minimise the costs entailed through the use of the internet. This kind of medium will allow the company to reach a vast number of consumers conveniently and tell them about their products and services (Raghu & Khiang, 2000).
Online direct selling and online direct marketing will ensure that the company gets a boost to its already successful ecommerce strategy. Although the organisation is not 100 percent e-commerce, it has still used the internet for its sales.
This e marketing initiative will therefore make the business more successful by increasing customer reach, heightening sales and subsequently increasing profit margins (Stone, 2007).
The initiative will involve a three pronged approach: first it will entail the use of emails i.e. online email marketing, second it will embrace the use of social media such as facebook and twitter i.e. online direct selling on social media networks and third it will involve other websites that may have potential consumers such as online liquor stores, online retailers as well as online magazines.
Analysis. Industry/ market/ competitors
In Peru, the Pisco Biondi brand is well recognised and regarded as one of the most successful makers of brandy. However, the same cannot be said of the company in other parts of the world. The firm has a small presence in these countries and very few of them actually know about it.
In the United States, several brandy makers are competing with Pisco’s and some of them have been in the market for a very long time.
Consumers tend to focus on cheaper commodities over and above the costly ones. Compared to other high end brandies, Pisco is likely to do well in these circumstances because its quality is higher than the price. Japan and Germany are showing some positive responses to the product but they could definitely improve.
Research findings. Value proposition
The great thing about this method of advertising is that it can be done so fast. Traditional marketing methods such as tvs and radios would take too long. Even traditional direct selling methods such as direct mail or coupons and leaflets would be too slow as one would have to find a way of physically transporting the information to the consumer.
This strategy of online direct marketing will allow Pisco Biondi to send information to a large portion of the public at the shortest time possible. Once information has been found concerning email addresses or social networking profile names, all the company needs to do is click and send.
Email addresses can be found so easily as will be discussed below so this should not be a problem for the company (Nowak, 2008).
This strategy provides Pisco Biondi with a range of options that they can use in order to reach consumers; it does not rely on only one avenue as would other methods of direct selling. Therefore inefficiencies in one method can be overcome by strengths in another.
For example, not everyone can be found through email databases so this inefficiency will be corrected by targeting potential buyers on social networking websites. On the other hand, not all potential buyers will give information about their liquor preferences on social networking websites; consequently, the campaign will then address this inefficiency through the use of banner ads on selected websites.
Therefore, this three pronged approach will contribute towards a very comprehensive marketing strategy that will reach as many clients as possible.
The company will not be carrying out every step of the marketing initiative on their own. There are experts who have already done research on possible target consumers in various countries around the world. This information can be purchased and used in order to get to target audiences (Haughton, 1997).
Additionally, the method will involve automation and use of software to monitor the company’s progress. Consequently, the company will need to involve only minimal effort in getting their message across.
This emarketing initiative will contribute towards the access of home product purchasers who currently prefer using the internet to make their purchases. The buyers can be fully aware of the products they are buying through visual displays of the products (Zahvai, 1997).
It will boost brand identity because liquor consumers will become familiar with the name and the brand. Also, online direct marketing is likely to translate into purchases because the consumers will be redirected to the company website where they can make their purchase.
This would heighten overall sales and cause many individuals to continue buying form the company. Pisco Biondi is also likely to increase its profit margins through reduced expenditures. Other indirect marketing channels are more expensive. Also, direct marketing without the use of the internet may also be costly because it is likely to translate into creation of materials.
The firm will only use a small portion of what it would have used through other conventional modes of marketing and this will save them money. The result will be an overall increase in profit margins. One cannot also be sure about these traditional methods’ reach and effectiveness. Through online direct marketing, the company will be sure.
Objectives
1. To create an international Pisco Biondi Presence. Through the three pronged approach that will used in this initiative, the company will be better able to reach its worldwide consumers. Most of the countries targeted are advent users of the internet so this will definitely be a channel worth pursuing.
The global market can be difficult to access using traditional media but this strategy will do so effortlessly. First of all, the emarketing strategy will be able to facilitate the ecommerce strategy in place currently. Since consumers from other parts of the world are in different time zones or they are confined by geographical barriers, it will be a very good idea to get to them using an online marketing strategy such that these limitations of physical distance can be overcome.
Also, because many residents are quite busy at work, then chances are that an online way of marketing and selling to them would be more appropriate (Spiller, 1997). Studies indicate that in the western world, approximately fifty seven percent of internet users check their email on a daily basis.
Many more visit facebook, twitter or other social networking websites regularly and the same can be said of online stores or businesses. This e marketing strategy will be designed to reach a very wide consumer base through a method that resonates with their lifestyles. This will not only save the Pisco Biondi shelf space, it will also build a great online presence for the company.
2. To generate and also increase sales. Online direct marketing will cause the consumers to know about the product and therefore purchase it. Since the company carries out online transactions then this will be a relatively easy task. The marketing strategy will be a continuation of the ecommerce business that already has a firm foothold in the host country Peru.
This campaign does not involve a complicated message (which is almost impossible to do in direct marketing). It will simply tell the customers what the products is about and no complicated meanings will be found in it, this straight to the point approach is likely to create a good return on Pisco Biondi’s investment.
The marketing campaign will possess a ‘call to action’ either by telling the viewers of the information to make a call, visit the website or click on a website link. All these actions will possibly be done with the intention of making a purchase.
Buyers who view the information and are interested in purchasing will be able to do so easily by simply clicking on a link that will direct them to the company website.
Furthermore, they will be informed about all the issues they need to known about the products through this initiative. Consequently, consumers will not need to go through great lengths in order to access it and their satisfaction with the company’s provisions will increase.
3. To improve customer relationship management by responding to consumer needs quickly (Novak, 1999). This initiative will not just be done for the sole purpose of generating new clients; it will also be done in order to enhance repeat sales from previously existing customers by creating a relationship with them.
Customers who have already purchased a product from Pisco’s website will have indicated that they are immensely interested in what is on offer by the organisation. Therefore, the company can send them direct emails about new products, campaigns in their area etc.
It will form some kind of partnership with them and will therefore enrich their consumer experience. Repeat business and customer loyalty have been recognised by many as a sure way of ensuring high cash flow (Campbell, 1997).
It takes less time and effort to market to someone who has never heard of a product than to one who has and actually liked it. Pisco will target achieving repeat sales through this strategy.
4.To boost consumer confidence. This will be achieved by showing the consumer that the company does indeed have a dependable online presence and that it can always be reached whenever the customer requires something from the organisation (King et. al., 2000).
5. To measure effectiveness of the campaign and thus get value for money. One of the most appealing qualities of online direct marketing is that is can be easily measured.
Since Pisco Biondi will be sending a certain number of emails, social networking messages and placing a certain number of advertisements, the company will be in a position to measure the outcome of the method by looking at how many emails were replied and how many adverts solicited responses.
In this regard, if the potential buyer clicks on the company link or they make a call to the company offices then that will be rated as positive action. The organisation can then determine their rate of success by comparing this number with the original. The company will also be in a position to reassess its campaign so as to improve it and thus make it better.
Strategies
Email marketing optimisation will be one of the key strategies used in the marketing campaign. Here, the company will send consumers information about the products and will offer a link on the email that will allow customers to immediately get to the company website. However, several email marketing methods have been criticised for their invasion of privacy.
In fact, many consumers have installed antispamming software to detect these kinds of emails. In order to ensure that Pisco Biondi does not fall prey this issue, emails will only be sent to possible target customers. Most recipients will consider unwanted emails as junk if they are not interested in the product; however, if they are, then the email will be more than welcome.
The company will use the services of online database makers such as Engage. The latter organisation normally collects information about the demographics, buying habits, entertainment preferences and other details about people on the internet.
Pisco Biondi will purchase the names of these people from those companies and thus send emails to consumers who are likely to buy a product from the company (Blattberg & Petrison, 1997). Engage already boasts of a database of 30 million users and possesses a lot of information about their preferences or any other related information.
Other companies that work with consumers online also know a lot about them and can also give a hint on their ability to purchase from Pisco or not. Email addresses will be purchased or obtained from those organisations and will be used in the campaign.
It is likely that they can lead to more positive responses than by simply sending emails to any email address that the company can find. Usually, email addresses are found by forwards sent to different people in one’s mailing list. A private email can therefore end up being viewed by thousands of people and thus provide them with the opportunity to contact the individual.
Many ethical issues have cropped concerning this tactic as it may be seen as intrusive. One way in which Pisco Biondi will counter the effects of such negative effects will be to countercheck on opt out lists found in several countries around the world.
Poorly demographically based databases are likely to cause this reaction but so are people who have a negative sentiment against bulk emails; only those customers who are not in opt out lists will be directed by Pisco.
Additionally, the firm will ascertain that it does not miss out on certain customers by utilising software from email service providers. The software will prevent the company’s emails from being categorised as spam when the recipient is not an opt – out client Milne, 2000).
For this emarketing strategy to work, the company will also need to ensure that they do not display their advertisements to people who are not interested in viewing them. In other words, the company will use pop up advertisements on the internet on online magazines and online retail stores.
These websites will either exclusively focus on the sale of liquor or they will focus on other products alongside liquor. Consequently, when someone visits those websites then chances are that the individual would be interested in viewing information about Pisco.
Also, particular emphasis will be given to those websites that do not just focus on one type of liquor such as beer because customers may be interested only in this category. Online retail stores that possess a wide range of these products would be more preferable in the campaign.
These pop up adverts will also provide a link that allows individuals to visit the company website and buy the product or at least get more information about it so that they may be able to buy next time (Chhajed & Chiang, 2003).
When it comes to the issue of social networking websites, the company will have a great advantage here because social networks provide a lot of information about how consumers behave.
They will state their preferences on one section of the online presence on those networks. Buyers are also likely to share jokes or place images in their profiles which give away information about their preferences. In order to ensure that the company reaches the right people, it will identify people on facebook and twitter who seem to have an inclination towards Pisco’s products.
Critical success factors
Several factors will contribute towards the success of this marketing strategy. Density is one of them; this involves the quantity of advertisements that will be available to the public/ target market. Dense marketing campaigns are more effective than sparse ones because the latter reach less potential buyers.
Saturation will also be another vital component of the process. The firm will need to ensure that it does not reach saturations as this harms sales outcomes. Constant monitoring will be done in order to ensure that such levels are not attained.
The company will create a number of advertisements but they all need to be tested one after the other. If one leads to desired responses then it can be maintained but if this is not the case then the organisation needs to remove it from the campaign. That will ensure that only the right advertisements are getting out there and that only desired outcomes are reached also.
In the social networking websites, consumers who are irritated by the messages sent to them by the firm will always state this in their profiles. Pisco Biondi will need to monitor those responses and thus ensure that they are not causing a certain degree of saturation among the chosen social networking websites.
For this e-marketing initiative, the company will need to think of proximity issues. In other words, the company must ensure that the advertisements and information sent are to people who may be interested in the product.
The more they are interested in the product, the more likely the communication can create positive effects by leading to a sale. One of the methods in which the company can ensure that it is targeting the right people is through keyword searches.
Consumers who tend to look for certain words are more likely to be interested in particular products. In the company’s case, search words such as liquor, brandy, foreign liquor can all contribute towards realisation of these kinds of effects. Efficient market surveys and target marketing will ensure that proximity is ascertained in the campaign.
Lastly, for the project to be successful then Pisco Biondi must make sure that they create depth. The emails sent and the advertisements offered online will need to contain content that resonates with the buyer. It needs to be mature but captivating at the same time.
Furthermore, cultural and social factors need to be taken into consideration since the target market spreads across a series of nations i.e. Japan, Germany or even Mexico. Standardised information for all clients would eliminate the concept of depth and this would not contribute towards an unsuccessful marketing strategy.
Key action plans/ recommendations
This marketing initiative will involve four major phases with the first being the research phase. In the research phase, the company through research firms will carry out an analysis of the customers and thus be able to identify the most likely candidates for the campaign.
In other words, the research firm will look at some of the favourite food and wine magazines in Mexico, Japan, the USA as well as Germany. Pisco will also investigate the online retail stores that will form a part of this campaign and determine which ones will partner with it.
Furthermore, the research firms can give them information about people who visit social networking sites such as facebook and twitter and find out which users are interested in liquors such that they can utilise them as targets for the advert.
The other research will also be done by other external bodies which will already possess demographic details of the concerned customers such that they can be used in the marketing campaign.
The firm will look for the things that make the customer respond well to advertisements by studying the market areas of those various target markets (Peltier & Schribrowsky, 1997). It will copy formats that are more in tune with these preferences and thus lead to highly effective targeting
The second phase will be the analysis phase. After collecting information about the customer, the company will then decide on the content and the quantity of the advertisements to be made and the emails to be sent. After learning about customer preferences in the target countries, it will then make custom made banner ads for those respective consumers.
These banners will only contain information about the product and where to find the website. In other words, they will possess a call to action. The company will decide on the number of advertisements placed depending on the nature of customer databases they find for email marketing. It will need to keep track of this information so that it can use it later when it is assessing the effectiveness of its marketing actions (Geransar, 2008).
The third phase will be the implementation phase. As the name suggests, this will involve sending people the actual communication concerning what the company has to offer. Emails will be sent to consumers and so will messages through facebook, twitter and other social networking websites.
On facebook and twitter, the company will send them personalised messages. Since consumers respond well to personalised messages then an inbox message would be better to send than a post on the person’s profile or ‘wall’. Furthermore, pop up ads will be placed on the selected websites. The company will first start with social networking websites as these are the simplest to deal with.
They will then follow these up with emails to other individuals and finally post the pop up ads on selected websites. By the end of it all, the company will have reached a wide client base. Once purchases are made, it will continue to send messages to those consumers in order to inform them about new company developments. All the messages and communications will contain crucial information about the products.
The company will state the name of the product, display a visual image of it and will also add a small slogan at the bottom. In some advertisements, it will be “ for the man who makes this happen”; in others it will be “taste the excellent taste of real brandy” and other slogans which will be customised depending on the target audience. Since some of the websites involved maybe in foreign language then the information provided by Pisco Biondi will need to be translated for such kinds of customers.
The last phase in this marketing strategy will be the monitoring phase. The company will compare all the numbers of people who responded to their call to action in the social networking websites concerned, the emails sent as well as the click throughs on the their pop up advertisements.
By comparing these figures, the firm will be in a position to measure how effective the marketing campaign was. It should be noted that some of the consumers may not use the same method of communication that the company employed but these observations will be easily made by the company which will already posses a database that contains all the information concerning how they reached that respective consumer.
This phase should then lead back to step one if it has been found that the success rate is lower than normal for any communication channel employed. Pisco should then reanalyse their consumers to find out what they could be doing wrong (Malthouse, 2001).
Conclusion
The key thing to being successful using this marketing method is to really focus on targeting. Instead of sending messages to everyone in a social networking website or sending messages to any email address that the company can find, it would definitely be more effective to send the messages to people who are prepared to receive them or people who are willing to act on those messages by making a purchase.
The company needs to make sure the emails are relevant so that they can capture the concerned market’s attention easily and without too much fuss. The trick is always to stay informed about the social cultural background of the buyer and hence provide him or her with a customised message that would make sense or appeal to him or her in the marketing process.
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