The Panama Liquor Co.
THE PANAMA LIQUOR CO.
I. Summary of Facts
A. Market
1. Recent trends indicate U.S. market move toward non-whiskey products
2. Young drinkers have strongest demand for wine, vodka, tequila etc.
3. Market Development – new market, existing product
4. Vodka top selling in U.S.
5. Light drinkers (31% of U.S.)
6. Economic Market- Monopolistic Competition
B. Product
1. Seco/Suo
2. Other alcoholic beverages – gin, rum, whiskey, cognac, wine and anis
3. Seco treated as member of vodka category in U.S.
4. Benefits
i. Core- Experience of unique drink (brand name) ii. Secondary.
1) Easy mixing with numerous beverages or juices.
2) Alternative to vodka
3) Unique distillation – pure sugar cane juice rather than molasses
5. PLC. Growth- A rapid increase in sales.
C. Price.
1. Large margins to motivate channel members
2. $7 per liter retail market average for premium branded vodka (~$63 case)
3. VC $8.30 per case
4. Elasticity- Somewhat elastic
D. Promotion
1. National Panama Airline used “seco” as promotion on international flights
2. Seco seen as national drink of Panama
3. Generally budget $2-$4 per case for advertising (shared btwn distiller and importer)
4. Expansibility- Expandable
E. Place
1. New York Distributors
2. Panama City Headquarters
3. Current rum exports to Guatemala, El Salvador, and Costa Rica
4. Channel- PL > NY Importer (National Distributor) > Wholesalers
F. Other
1. No Tariff on vodka imports from Panama to U.S.
2. Panama would give exemption from many taxes
II. State of the Problem/Opportunity
A. Primary-How to utilize excess plant capacity
B. Secondary
1. Whether or not to enter U.S. market
2. Enter as new category, “seco” or as new type of vodka
3. Problem in marketing Seco in a product differentiation strategy because its higher prices may be outside the young drinker’s price range
III. Recommendation Action
A. Primary – Enter U.S. market; promote Seco as alternative to vodka.
B. Secondary.
1. Stick to
I. Summary of Facts
A. Market
1. Recent trends indicate U.S. market move toward non-whiskey products
2. Young drinkers have strongest demand for wine, vodka, tequila etc.
3. Market Development – new market, existing product
4. Vodka top selling in U.S.
5. Light drinkers (31% of U.S.)
6. Economic Market- Monopolistic Competition
B. Product
1. Seco/Suo
2. Other alcoholic beverages – gin, rum, whiskey, cognac, wine and anis
3. Seco treated as member of vodka category in U.S.
4. Benefits
i. Core- Experience of unique drink (brand name) ii. Secondary.
1) Easy mixing with numerous beverages or juices.
2) Alternative to vodka
3) Unique distillation – pure sugar cane juice rather than molasses
5. PLC. Growth- A rapid increase in sales.
C. Price.
1. Large margins to motivate channel members
2. $7 per liter retail market average for premium branded vodka (~$63 case)
3. VC $8.30 per case
4. Elasticity- Somewhat elastic
D. Promotion
1. National Panama Airline used “seco” as promotion on international flights
2. Seco seen as national drink of Panama
3. Generally budget $2-$4 per case for advertising (shared btwn distiller and importer)
4. Expansibility- Expandable
E. Place
1. New York Distributors
2. Panama City Headquarters
3. Current rum exports to Guatemala, El Salvador, and Costa Rica
4. Channel- PL > NY Importer (National Distributor) > Wholesalers
F. Other
1. No Tariff on vodka imports from Panama to U.S.
2. Panama would give exemption from many taxes
II. State of the Problem/Opportunity
A. Primary-How to utilize excess plant capacity
B. Secondary
1. Whether or not to enter U.S. market
2. Enter as new category, “seco” or as new type of vodka
3. Problem in marketing Seco in a product differentiation strategy because its higher prices may be outside the young drinker’s price range
III. Recommendation Action
A. Primary – Enter U.S. market; promote Seco as alternative to vodka.
B. Secondary.
1. Stick to