THE PANAMA LIQUOR CO.
Summary of Facts
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
Vodka top selling in U.S.
Light drinkers (31% of U.S.)
Economic Market- Monopolistic Competition
Other alcoholic beverages – gin, rum, whiskey, cognac, wine and anis 3.
Seco treated as member of vodka category in U.S.
Core- Experience of unique drink (brand name)
Easy mixing with numerous beverages or juices.
Alternative to vodka
Unique distillation – pure sugar cane juice rather than molasses 5.
PLC. Growth- A rapid increase in sales.
Large margins to motivate channel members
$7 per liter retail market average for premium branded vodka (~$63 case) 3.
VC $8.30 per case
Elasticity- Somewhat elastic
National Panama Airline used “seco” as promotion on international flights 2.
Seco seen as national drink of Panama
Generally budget $2-$4 per case for advertising (shared btwn distiller and importer) 4.
New York Distributors
Panama City Headquarters
Current rum exports to Guatemala, El Salvador, and Costa Rica 4.
Channel- PL > NY Importer (National Distributor) > Wholesalers F.
No Tariff on vodka imports from Panama to U.S.
Panama would give exemption from many taxes
State of the Problem/Opportunity
Primary-How to utilize excess plant capacity
Whether or not to enter U.S. market
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.
Primary – Enter U.S. market; promote Seco as alternative to vodka. B.
Stick to what PL...
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