A Direct Marketing & Channel Development Plan for Aristocrat Whisky in the Nigerian Market. Includes Market Analysis, Brand Positioning, On-Trade and Off-Trade Activation Strategy and Mechanics. Learn Market Dynamics. Understand Strategic Considerations for Market Presence. Know How to Deploy Human and Material Resources for Field Marketing Activities To get your downloadable full version, go to: https://flevy.com/browse/business-document/channel-activation-plan-for-aristocrat-whisky-1404

1. direct marketing activation plan
for
Aristocrat Whisky
developed by:

2. [background]
2

3. [background]
About Aristocrat Whisky
▪Aristocrat Whisky, a brand of Indian Made Foreign Liquor (IMFL), is a blend of imported Scotch malts
and select Indian spirits made by the Punjab-based Jagatjit Industries Ltd (JIL), which has been
described as the largest distillery in Asia and the third largest in the world with an annual bottling
capacity of 14 million cases . JIL is a Rs 400-crore company and is among the largest IMFL players in
India, with a manufacturing base at Hamira in the Kapurthala district of Punjab. The company has three
more distilleries, one each in Gujarat, Maharashtra and Andhra Pradesh, while sourcing its branded
products from two tie-up units, one in Madhya Pradesh and the other in Himachal Pradesh. Aristocrat
Whisky is positioned as a semi-premium brand in the Indian and Asian markets and is marketed in
Nigeria by OJASVI Limited.
The Alcoholic Beverage Market in Nigeria
▪ Alcohol consumption is considered a social activity in Nigeria with festive periods, social activities and
weekends taken as opportunities to indulge in extensive consumption. Besides this is the general
perception that Nigerians are happy people, as well as the cultural tendency of Nigerians to throw
parties for several reasons (A few years back, a survey of over 65 countries published in the UK’s New
Scientist Magazine suggested that Nigeria had the highest percentage of happy people, followed by
Mexico and Venezuela). Obviously, vast market potentials exist for alcoholic beverages in Nigeria, in
spite of growing Christian pentecostalism and Islamic fundamentalism which tend to frown on the
consumption of alcoholic beverages among adherents. Nigeria’s 160 million people provide a large market
for alcoholic beverages worth more than $6.5 billion and which, according to industry data, continues to grow
3

4. [background 2]
The Alcoholic Beverage Market in Nigeria (cont’d)
from year-to-year since 2007. A steady annual increase of 3% in population, changing demographics
including greater urbanization, more women working outside the home, and changing lifestyles of the
large youth population (which in itself continues to rise), etc. are expanding the potential for alcoholic
beverages in Nigeria. As illustrated below, spirits consumption constitutes about 30%, while beer and
wine share 55% and 15% respectively:
Beer, 55%
Spirits, 30%
Wine, 15%
Nigeria's Alcoholic Beverage Market
Source: Industry Intelligence corroborated by USDA

5. [background 3]
The Spirits Segment in Nigeria
▪ The market for spirits in Nigeria has increased steadily at an annual growth rate of 6 percent between
2007 and 2011 (industry source). Imported spirits principally come in whisky, brandy, vodka, rum, gin,
schnapps, and various liqueurs, and are mostly sold through the formal distribution channels. Others
such as tequila, etc. are very insignificant and are often grouped within the major categories sharing
the market as shown in the following table:
5
Whisky, 25%
Brandy, 20%
Vodka, 15%
Rum, 15%
Gin, 10%
Liquers,
10%
Schnapps,
5%
Popular Types of Spirits by Share of Market Segment
(Nigeria)
Source: USDA

6. [background 4]
The Spirits Segment in Nigeria: Competitive Analysis
▪Within the Spirits segment, imports accounted for approximately $500 million, or 25% market share
in 2011, while local spirits continued to lead the market with 75 %, as they are cheaper than the
imported brands. Broad market classification of the notable brands is as follows: Blended Scotch,
Super-Premium, Premium, Standard and Economy and major local players include Intercontinental
Distillers Ltd; Nigeria Distilleries Limited and Euro Global Foods and Distilleries Ltd (a subsidiary of the
Sona Group). Major international players are Diageo (UK); Louis Vuitton Moët Hennessy (France);
Pernod Ricard (France); Davide Campari-Milano S.p.A (Italy); Barcadi-Martini (UK); Brown-Forman
(USA). This is not to preclude the ascendancy of hitherto fringe brands, however, as new brands
continue to make an incursion into the market.
▪In the category of local brands, Nigeria Distilleries Limited, though with a fewer array of brands
compared to its closest rival, controls 35% of the market, while Intercontinental Distillers Limited has
30% share, Euro Global has 5% and other players, including fringe players and owners of branded herb-
enhanced liquers (e.g Alomo, Muscle, Ogidiga) control some 30% of the market. In the imported
category, Diageo leads by 25% in the Rum segment, Pernod Ricard controls the market for Vodka and
Brandy by approximately 26% and 41% respectively; Davide Campari-Milano S.p.A has 10-15% control
of the market share in the liqueurs category, while LVMH leads in the Super-premium and Premium
classifications (especially cognac) by an average 27%.
6

7. [background 5]
The Spirits Segment: Consumption, Distribution & Pricing Patterns
▪Years back, the general trend was to consume branded spirits indoors, at parties and festivals. and in
small glass cups (called shots) and this was mostly done by consumers in the 35-50 age bracket, who
often buy from supermarkets, stores and neighbourhood shops. However, in recent years, youths have
remained the largest consumer segment for spirits, while off-trade outlets such as bars, hotels, night
clubs and lounges regularly stock and sell spirits to consumers. Though male consumers often
constitute the larger population of drinkers, an increasing number of female consumers now patronize
spirits, which they sometimes drink straight or mixed. The increase in the number of consumers of
spirits may not also be unconnected to the global economic recession, as most young consumers see
spirits as offering them greater value in terms of percentage alcoholic content and spend, compared
to wines and beer. Again, seasonal fluctuations in the consumption of spirits is inversely relative to
seasonal consumption patterns of other alcoholic beverages such as beer, as consumption of spirits
tend to increase during the rainy season, while patronage of beer dips during the same season. The
reverse is often the case during the dry season.
▪The market is dominated by mass consumers and many manufacturers of both local and imported
spirits now bottle and pack in small units (3cl to 20cl bottles and sachets) for one-time use. Hence, the
standard and economy classifications share a larger proportion of the market as shown in table below:
7

8. [background 6]
8
Blended Scotch,
5%
Super Premium,
5%
Premium, 10%
Standard, 10%
Economy, 70%
Classifications & Market Shares
Source: USDA

9. [background 7]
The Spirits Segment: Consumption, Distribution & Pricing Patterns (cont’d)
9
Manufacturer/Marketer
Authorized
Wholesale
Distributors
Retailers
Distributors/ Bulk-
breakers
Hotels, Bars, Night
Clubs (HOBANIC)
Distribution Flowchart for Spirits

10. [background 8]
The Spirits Segment: Consumption, Distribution & Pricing Patterns (cont’d)
10
NGN 2,400.00
NGN 5,000.00
NGN 3,000.00
NGN 2,000.00
NGN 800.00
NGN 0.00
NGN 1,000.00
NGN 2,000.00
NGN 3,000.00
NGN 4,000.00
NGN 5,000.00
NGN 6,000.00
Blended
Scotch
Super
Premium
Premium Standard Economy
Average Prices according to ClassificationsAverage price
per 750ml
Classifications

11. As part of efforts to consolidate the market for Aristocrat Whisky in Nigeria, OJASVI Limited believes the
Aristocrat brand of whisky requires strategic marketing support to increase market penetration, on and off trade.

12. [strategy]
12

13. SCENE
[Aristocrat Whisky: a SWOT Analysis]
S
>Produced by Jagatjit, an internationally-renowned
Indian distillery.
>Taste is comparable to standards of already-known
whisky brands in the Nigerian market (based on basic
Palate Test)
W
>Not well known by many consumers and a large
number of the Trade in the Nigerian market (based on
basic T&C awareness survey)
>Bottle Packaging may be easily faked in the long run
(based on basic T&C awareness survey)
>Marketing /Promotional support has been little or non-
existent at the on-trade level and requires greater
leverage, off-trade
O
>The Spirits segment of the market is at a stage of
unprecedented growth, especially as more younger
consumers tend to adopt Spirits, due to preferences for
Value for Money (VFM).
>Indian-made products, including Spirits are gradually
becoming popular in the Nigerian market (e.g
McDowell’s).
T
>Increasing competition in the market as new locally-
produced entrants are introduced (e.g EURO GLOBAL)
and older brands reposition (e.g DIAGEO brands)
>The super-premium & premium categories may not be
immediately penetrable, as many existing international
brands are well-positioned within these categories
>Tariffs and levies on spirits are high, totaling 50%
>Smuggling, brand-passing and fakery are endemic
within the alcoholic beverage industry and may erode
profit margins at the latter stages of the market life
cycle when the brand has become more popular with
consumers. 13

14. Consumers of standard and economy categories of
Spirits. Largely, they belong to the C1-3 (and
sometimes, D) socio-economic classes. Usually, they
are young executives, self-employed, or tertiary
school students within the 18-45 age bracket, live
mostly in middle class parts of urban areas or suburbs
and like to frequent mid-class hotels , bars and night
clubs, especially at weekends, where they hang out
with friends
Off-Trade such as proprietors of supermarkets
which sell spirits and owners of stores where
bulk sales of spirits are made. They are
interested in high yield profit margins and/or
rapid turnover, usually encouraged by
visibility/demand-driving promotional
activities embarked upon by brand owners &
like to enjoy incentives from marketers
SCENE
[Target Market]
On-Trade such as owners & managers of
on-trade points of purchase such as
hotels, bars and clubs. They are often
receptive to brand promotional activities
which drive traffic to their premises and
reward their patrons.
14

15. [Activation Objectives]
2
3
4
1
Increase brand awareness among consumers of
semi-premium (standard) and mid-price (economy)
brands of spirits and the Trade.
Encourage trial and eventually generate
opportunities for acquisition of consumers.
Create on-trade demand at mid-class hotels, bars and
clubs.
Drive Off-trade enquiries and demand at wholesale
Points of Purchase (POPs/bulk breakers)

16. Recruit new customers
on and off-trade
Also recruit new
consumers
Capture prospects and
convert them to returning
customers and consumers
by generating interest,
recognition and recall,
through rewards and
incentives
Create on-trade
demand to
support off-trade
uptake and
support value
chain from retail
trade to
consumption
recruit create convert
[The Strategic Approach]
Generate a
precise database
of ready-to-deal
on and off trade
leads which can
be followed up
by OJASVI’s
salesforce
sustain

17. [action plan]
17

18. [Action Goals]
The PR story
6. generate sustainable, long-term sales leads
6
11. encourage consumer trial
2
2. enhance trade stocking
3
3. reward consumer purchase
4
4. incentivize trade
5
5. generate tactical, short-term sales

19. [the 6 Ms: Method]
Method
>Scope:
- Lagos (initially. Activation may be extended to other cities, afterwards)
-4 Months
-On Trade & Off Trade
>Mechanics:
-On-Trade: 60 outlets will be visited and explored by a recce/advance team, from which 32 will be selected,
from a final list. Eventually, wet sampling of Aristocrat Whisky will be done at 32 Hotels, Bars & Night Clubs
(HOBANIC), using 2 teams.
Patrons of on-trade outlets are encouraged by Aristocrat Brand Ambassadors to try a shot of Aristocrat
which is poured from a 750ml bottle and handed to them in branded disposable cups. Consumers are
also encouraged to buy any of 750ml or 180ml bottles from the outlet, to get a chance to participate
in a lucky dip which qualifies them to win an instant Small Merchandise Give Away (SMGA), such as
branded pens, bags, drinking glasses, T-Shirts, etc.
Selection of HOBANIC outlets will depend on criteria such as volume of customer traffic/footfalls ,
adaptability of premises to activation mechanics and willingness of outlet owners/managers to participate in
the activation. Each outlet will be activated twice, while a few selected outlets will be activated a third time
with an in-bar event known as ARISTO NITE.
19

20. [the 6 Ms: Method]
Method (cont’d)
>Mechanics (cont’d):
Selected outlets will have been merchandised with empty belly posters ahead of the event, to inform
patrons. This event will feature a local musical band and dancers at the selected outlets and consumers
will be encouraged to get on the dance floor, where best dancers will be appreciated with giveaways. Buyers
of Aristocrat Whisky are also entitled to lucky dips and SMGAs at ARISTO NITEs.
A recce /advance team will visit identifiable and suitable outlets and liaise with owners. Thereafter, a final list
of selected outlets is drawn and such outlets are merchandised/branded in preparation for the activation.
-Off-Trade: A roving team will visit off trade outlets such as supermarkets, wine shops and stores within
selected locations (including those which supply on-trade outlets selected for activation). The team discusses
with outlet owners, encourages them to stock the brand and invites them to any of the off-trade activations
which takes place close to their premises. Based on a schedule, the team moves around with a van loaded
with stock, makes outright sales, merchandises ready-to-deal off-trade outlets and collects useful sales leads
as data. Each off-trade outlet which makes purchases is given a giveaway, per case bought. At least 400 off-
trade outlets will be data-captured, from which a minimum of 200 is activated.
20

21. [the 6 Ms: Minutes]
Minutes
>Operations
Kick-Off:
Mid-August 2012 is recommended, to take advantage of the break in Ramadan and the likely high rate
of consumption in the prevailing rainy season
On-Trade:
-Recce/Advance team operates for 2 weeks, including at least 1 week ahead of activations, from 9 a.m-
6 p.m, Monday to Saturday (Thursday activity starts 12p.m).
-Activation takes place from 7p.m to 9p.m every Friday and Saturday for 4 months (i.e. 64 days @ 32
outlets x 2 activations each, using 2 teams). Additionally, ARISTO NITE will be done in 10 outlets,
starting from the second month, on Friday or Saturday. Therefore, total number of days for on-trade
activations is 74 days, across 32 outlets.
Off-Trade:
-Market storm team operates from 9 a.m to 6 p.m, from Monday to Saturday, except for Thursday,
when the team operates from 12p.m to 6p.m. Off-trade activation team operates for 2 months.
>Recruitment and Training
Recruitment and Selection of Personnel starts alongside on-trade recce, while training will be done
within 1 day, prior to activation
21

22. [the 6 Ms: Minutes]
Minutes (cont’d)
>Reporting
Daily reports will be compiled by field personnel and collated for onward submission to OJASVI, every
week. Consolidated monthly reports will also be made available throughout duration, while a final
report will be given to client at end of all activations. Soft and hard copies will be made available.
22

23. [the 6 Ms: Men]
Men (& women)
>On-Trade Recce Team
-2 Field Personnel (male & female)
-Same team may be used for Off-Trade activation
-Sales experience essential
>On-Trade Activation Team
2 Teams:
-Each team consists of 1 Supervisor & 4 Brand Ambassadors (2 male & 2 Female)
-For ARISTO NITEs, an additional team will be drafted to support on-ground teams already working at
selected outlets
-For local musical band, any of two alternate bands (representing 2 genres of music, such as Fuji and
Highlife) will be deployed, depending on social composition of outlet selected. Alternatively, a DJ may
be used, where necessary.
>Off-Trade Activation Team
-Same as Recce Team above
>Project Coordinator
-Has overall responsibility for all field activities
-Directly supervises Recce & Off-trade activation team
>Client Service/Account Manager
-Relates with Project Manager, PPP and OJASVI
23

24. [the 6 Ms: Materials]
Materials
>Logistics
-1 Van for off-trade activation, including movement of stock and merchandising items
-2 buses for on-trade activation, including movement of field personnel, sampling stock and giveaways
>Merchandise/Promotional Items
-Sampling stock & giveaways.
-In-bar Point Of Sale Displays (incl. empty belly posters, etc)
-Premium Small Merchandise Give Aways (SMGAs) for consumers
-Costumes for Field Personnel/Aristocrat brand ambassadors (T-shirts, face caps, pants, bandanas,
wrist bands, etc)
-Roll-Up stands (for ARISTO NITE)
-Stationery & Calculators
-Sampling Kits (iceboxes, disposable cups, etc)
24

25. [the 6 Ms: Money]
Money
>Key Cost Centres
-Personnel (incl. wages, salaries, training, costumes, etc)
-Haulage (of Personnel & Stock, including fuel)
-Branding of vehicles (incl. regulatory rates)
-Merchandise (Give Aways)
-Point of Purchase (POP) displays
-Audio Visual ancillaries (photography & digital video coverage)
-Sampling stock & kits
* See accompanying worksheet for budget
>Key Profit Centres
-Recurrent post-activation sales based on trade channel development
-Immediate tactical sales of Aristocrat Stock during activation
25

26. [the 6 Ms: Measurement]
Measurement
>Key Performance Indices
-Over 70 activations across over 30 quality on-trade outlets
-Minimum of 200 off-trade outlets to be activated
-Cumulative volume of ± 2,500 consumer samples (32 outlets x avg. 40 consumers x 2 activations
each)
-Tactical Sales of average 2,500 cases in 4 months
- Measurable incremental change in consumer awareness, trial and recall
-Database of circa 500 off and on trade outlets and (as sales leads for OJASVI’S Sales force)
26

27. [next steps…]
upon approval of this roadmap, we provide: