Week 8: EOC: My Vodka is Unique Because...

Ergo is a vodka that goes with you, giving you an experience unparalleled by other vodkas. As the music plays and the night goes on, so does Ergo. It's super portable and super sustainable. Ergo meets your eye in a beautifully embellished stainless steel bottle, able to be experienced over and over again however you like. Ergo is all about having fun the sustainable way, from bottle to vodka.

Final Project: Implementation Evaluation Control

As stated before, it is so important for a company to keep up-to-the-minute updates on the market and how their product is faring. Both marketing and operation control are vital. Marketing control is all about "measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are achieved" (Marketing: An Introduction, Armstrong/Kotler, pg. 58). Operating control goes one step further and requires "checking ongoing performance against the annual plan and taking corrective action when necessary" (Marketing: An Introduction, Armstrong/Kotler, pg. 58). Using our promotional methods, pricing, surveying the competition's techniques, and simply creating a better product, we will constantly make sure that Ergo stays on the cutting-edge of vodka and sustainability.

Final Project: Marketing Mix - Price

Setting and maintaining a price on your product is a tricky thing, since markets change, demand rises and falls, and the product life-cycle ends. So, it's especially important to come out initially with a competitive yet reasonable price for your product.

Though promotional pricing, "or temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales" (Marketing: An Introduction, Armstrong/Kotler, pg. 294) can be a good idea sometimes, it does have its drawbacks. For example, it could make your product seem cheap or not valued well enough, and that might turn customers off. The only time Ergo might take part in promotional pricing is during heavy "party times", such as New Year's or Christmas, or even St. Patrick's Day.

What Ergo does believe in is competition-based pricing, which is "setting prices based on competitors’ strategies, prices, costs, and market offerings" (Marketing: An Introduction, Armstrong/Kotler, pg. 280). Always wanting to stay ahead of the curve, Ergo will constantly survey the market and see what other companies are pricing their drinks at and why. Has the market changed? Are they coming out with a new product? Based on these findings, we will set our price, always aiming to be a better value.

We know that "consumers usually perceive higher-priced products as having higher quality", but sometimes products aren't worth what they're sold for. You wouldn't want to pay $40 for a poor-quality vodka, would you? Of course not! Ergo is not low in quality in the slightest, but the demographics we are trying to reach want affordable fun. So, since most energy drinks cost anywhere from $.60-$3.00 per can, and vodkas found in supermarkets range between $12-$30 per bottle, and we are going to be selling it in a four-pack, Ergo is going to be priced at $7.95 per pack.

Final Project: Marketing Mix - Promotion

With promoting a product, sometimes you just need a little push and pull... literally. The push and pull strategies are ways to promote your product in order to gain customers and, ultimately, form relationships with them. In the push strategy, "the producer promotes the product to channel members who in turn promote it to final consumers" (Marketing: An Introduction, Armstrong/Kotler, pg. 384). The resellers use all kinds of promotions, including "personal selling, advertising, and sales promotion" (Marketing: An Introduction, Armstrong/Kotler, pg. 385) to push your product into consumers' hands.

The pull strategy, however, requires spending lots of money in advertising "and consumer promotion to induce final consumers to buy the product, creating a demand vacuum that “pulls” the product through the channel" (Marketing: An Introduction, Armstrong/Kotler, pg. 385). This might be considered creating a product/brand identity that consumers trust and that makes them want to buy the product.

Ergo will utilize both of these principles. To begin with, we will use the push strategy to help introduce our vodka. We'll create commercials for television and start a website that details more information about the product. Then, once people try (and love) Ergo, we will create a Facebook page (or perhaps someone will take it upon themselves to do so) so everyone can stay up to date on what's new at Ergo. They can post photos of themselves with the drink, tell us what they love most about it, etc.

Final Project: Marketing Mix - Distribution

There are a few routes a company can go about to distribute their product. One that is often used for high-end or upscale products is exclusive distribution. Exclusive distribution means that "the producer gives only a limited number of dealers the exclusive right to distribute its products in their territories" (Marketing: An Introduction, Armstrong, Kotler, pg. 324). Certain vodkas are distributed exclusively (Diva, which goes for $70+, depending how many stones [that includes diamonds!] your bottle has).

Another form of distribution is intensive distribution, which means the producer "stocks the product in as many outlets as possible" (Marketing: An Introduction, Armstrong/Kotler, pg. 324). These are the vodkas you would find in supermarkets or gas stations. And that is exactly where you'll find Ergo: in the liquor section of your nearest grocery store. We decided to distribute our vodka intensively because we want to make sure that everyone has available to them the Ergo experience. Sold in a four-pack, Ergo makes it possible for you to carry the party with you (and make runs back to the 24 hour market if need be).

Final Project: Marketing Mix - Product

Ergo Vodka sets itself apart from all other vodkas on the market because of how genuine it really is: it cares for the environment (and always will), it is made from only the purest and most organic ingredients (and always will be), and it truly and really wants the consumer to enjoy the product and have a night to remember (if it ever ends).

What we did at Ergo was product development, or "developing the product concept into a physical product in order to ensure that the product idea can be turned into a workable market offering" (Marketing: An Introduction, Armstrong/Kotler, pg. 251). We wanted to make sure that we thought through the entire creative process before putting our product out there for the public. So many products fail pretty much immediately after being introduced. Developing the product and creating an identity is vital to making sure your product sells, and that is exactly what we did with Ergo.

Final Project: Target Marketing Strategy

Now that we have a product, how are we going to market it? Using marketing implementation, of course. Marketing implementation is "the process that turns marketing plans into marketing actions in order to accomplish strategic marketing objectives" (Marketing: An Introduction, Armstrong/Kotler, pg. 57). We are going to form positive relationships with all those from whom we outsource: the French Alps water company, the organic potato farmers, the organic ginger farmers, the organic ginseng farmers, the stainless steel bottle manufacturer, the local bottlers... everyone. Ergo is going to set itself apart from other companies by having the best relationships with those who help create our product.

Now, as fine and well as our marketing implementation strategy is, how are we going to be able to tell if it's living up to our expectations? That is where marketing control comes in: "The process of measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are achieved" (Marketing: An Introduction, Armstrong/Kotler, pg. 58). There must be a way to evaluate how our product is doing, how the market is responding to our product, etc. We can advertise as much as we would like, but without measuring our ROI, or return on investment, we won't really see if all our efforts are bearing fruit. Though ROI is pretty difficult to measure, Ergo will try to assess our return "in terms of standard marketing performance measures, such as brand awareness, sales, or market share" (Marketing: An Introduction, Armstrong/Kotler, pg. 60). We will consistently survey the market in various ways, including Facebook polls, seeing how the consumers are responding (if they are purchasing it or not; and if they are, if they purchase it repeatedly), etc. We are all about pleasing the customer and giving them the Ergo experience. We want to hear from them. We are going to be very accessible and more than willing to work with them on creating a product they not only want to buy, but that enhances their lives.

Final Project: Situation or SWOT Analysis

When even thinking about launching any new product, it behooves everyone to give the product a thorough and in-depth analysis. Thus, "The marketer should conduct a SWOTanalysis, by which it evaluates the company’s overall strengths (S), weaknesses (W), opportunities (O), and threats (T)", (Marketing: An Introduction, Armstrong/Kotler, pg. 55).

There are a few key things to keep in mind when putting a product through a SWOT analysis, each being vitally important to the item's success. With regards to strengths, it is very important that the analysis include "internal capabilities, resources, positive situational factors that may help the company to serve its customers and achieve its objectives", (Marketing: An Introduction, Armstrong/Kotler, pg. 55). Ergo Vodka has many strengths, chief among them the unwavering commitment to distributing a product that is certified organic and eco-friendly, thereby being good for you AND the environment. This commitment creates a trusting relationship with our customers. They believe in our product because of what Ergo stands for as a vodka, but also as a movement. And they want to be part of that movement.

Weaknesses, on the other hand, include "internal limitations and negative situational factors that may interfere with the company’s performance", (Marketing: An Introduction, Armstrong/Kotler, pg. 55). Ergo, like any other product, has weaknesses. Though other energizing vodkas exist, it might be hard to bring a new product into the market. This is especially true, considering the plethora of vodkas out there. "What makes this vodka so special?", customers might ask. Well, all they'd have to do is read the bottle and take a sip.

What Ergo absolutely has going for it, however, is opportunities, or "favorable factors or trends in the external environment that the company may be able to exploit to its advantage" (Marketing: An Introduction, Armstrong/Kotler, pg. 55). Society in recent years has become much more attentive toward the environment and the need for sustainable business practices. This is a prime time to introduce Ergo, and to capitalize on the environmentally friendly stance the company takes.

Unfortunately, there are some threats to Ergo, a major one being the already-established energizing, organic vodkas on the market. Since threats are "unfavorable external factors or trends that may present challenges to performance" (Marketing: An Introduction, Armstrong/Kotler, pg. 55), it is especially important for the marketer to take these into consideration before releasing the product. Ergo knows the threats it faces, but we will face these threats head-on and distribute a widely successful product.

Final Project: Objectives

"Developing the promotion budget by (1) defining specific objectives, (2) determining the tasks that must be performed to achieve theseobjectives, and (3) estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget" (Marketing: An Introduction, Armstrong/Kotler, pg. 389). That is the definition of the objective-and-task method, which is a very important part of developing and marketing a product SUCCESSFULLY.

The objectives of Ergo go hand-in-hand with its mission: to create a product that gives the drinker an experience unparalleled by any other vodka available. To do this, we give consumers a quality beverage they can feel good about purchasing: it is good for the environment, and the ingredients of ginseng, ginger, acai berry, and bee pollen make it a vodka that is good for you.

The costs of these tasks will be lower than expected because Ergo will only use ingredients locally grown (the exception being the exceptional French Alps water, which will cost more to import). We will make a point to advertise the locally-grown aspect of Ergo in the hopes that it attracts more customers. This is also considering the market for organic products.

Final Project: Business Mission Statement

Ergo Vodka is more than just (really good) vodka. Ergo is the experience: premium vodka that you can feel good about drinking. Ergo is the movement: organic, all-natural vodka that helps create a more sustainable global environment. Ergo is the memories one creates when the party doesn't stop. Ergo is what you make of it.

[Since "A clear mission statement acts as an “invisible hand” that guides people in the organization", Marketing: An Introduction, Armstrong/Kotler, pg. 39), it is important that the consumer understands what the brand means, not only to them, but to the world as a whole. That way, it distinguishes itself from other brands and is more memorable.]

EOC: Final Project: Pitch

Introducing Ergo, an all-natural and organic energizing Vodka. Ergo is infused with the natural energizers ginger and ginseng, as well as extracts of the superfood bee pollen. Made with only premium, organically grown potatoes and the purest water from the French Alps, Ergo Vodka gives you all the energy you need—without the caffeine—to keep the party going.

Week 6: EOC: Me x 3

We spend money on all sorts of things. These things range between the spectrum of "needs" and "wants". But there is a certain psychology to purchasing. Why do we buy certain types of food or only this brand of toilet paper?
Women do the majority of purchasing and shopping in a household. They don't buy simply to satisfy their own needs and wants, but to satisfy those of everyone in the home. And nine times out of ten, the rest of the family is perfectly okay with that. They'll use whatever soap they find in the shower or whatever food happens to be in the refrigerator.
I have a few key products that I personally and regularly purchase. One is my wardrobe. I like to think that my "style", if you'd like to call it that, is free and easy and not too fussy. Today, I'm wearing a dress. This dress is light and airy and colorful; it perfectly exemplifies my kind of ideal outfit. Now, I am not one to drop a load of money on something at the drop of a hat (or at all for that matter). I go to Target because the clothes are relatively inexpensive and they are of decent quality. I won't ever go to, say, Betsey Johnson and buy five dresses and three purses just for the fun of it. (Although I'd love to.)
A second product I buy (and might actually splurge on once in a while) is feminine hygiene products. If there's anything women are picky about, it's their pads and tampons. (And anyone who says otherwise is lying.) There is a difference between Always pads and the generic pads. You get something extra... at least I think you do. I like the Always pads because I like the protection I get. That's what's most important. If a pad doesn't protect against Mother Nature, you better look for a different brand. When it comes to things like feminine products, VALUE and QUALITY matter above all else. I'll pay a little extra if I'm sure that I'm getting maximum protection.
Lastly, I love buying my Jamba Juice Strawberry Energizer Smoothie. Call it my weakness, say it's my kryptonite. It's what I love to get for a between-class "lunch". I believe I get a quality smoothie when I go to Jamba Juice. Other places are just imitators in my opinion. Jamba is the real deal. There's a great variety of products, plus they sell food and other goodies. They are also a socially responsible company, educating the public about the quality of product they are getting and how it helps the environment. I feel good when I enjoy my smoothie (which they fill to the brim, so I get more bang for my buck), because I feel healthier. I didn't just go to Wendy's and get some fries or a burger. I had something that made me feel like I made a good decision. And isn't that what everyone (especially women) want?

EOC: Week 5: Sony Sleuths

With all the "Big Brother"-type of monitoring constantly happening in today's modern society, you'd think that a huge company like Sony would realize it was being hacked, and by whom, before over 100 million gamers' personal information was stolen. Obviously not.

Sony said it was "victim of a very carefully planned, very professional, highly sophisticated criminal cyber attack designed to steal personal and credit card information for illegal purposes." (http://tinyurl.com/3b8quok)

The big question is: How is this going to affect Sony and its millions of customers?

If I were one of the many whose information was hacked, you can bet that I would think twice before playing another game on my PlayStation. I'm not going to risk having my personal information, including my credit card, stolen again. This might cause a dramatic decline in Sony's sales and market value. A blow of this magnitude is just too great to be taken lightly. This might also in turn affect other video game companies, such as Microsoft. I mean, if the maker of one of the highest-grossing gaming consoles (the Playstation) can't protect its customers' privacy anymore, who can?

The bottom line is that Sony needs to somehow rectify this situation, if that's at all possible, to its customers. It needs to instill within its customers a sense of safety, that their privacy will never be invaded like this again. Maybe then Sony could recover from this [stealthy] debacle.