Tequila Don Javier:
Social Media Marketing Strategy and Identifying Distributors
May 7th, 2021
Morgan Kern
International Relations & Spanish Major ‘21
Riley Morales
International Business Major, Spanish and Political Science Minors, ‘22
Anna Andrade
Finance & Real Estate Major, Spanish Minor ‘22
Luisa Macias
International Business & Business Administration Major, Spanish Minor ‘22
Marie Lawson
International Business & Marketing Major, ‘21
Nick Faber
Business Admin & Data Analytics Major ‘23
Maria Klostrakis International Business & Marketing Major, ‘23
Agenda
Social Media Marketing Strategy:
Identifying Unique Value Propositions
Buyer Profile: Key Target Segments and Characteristics
Market Positioning: Pricing
Competitor Analysis
Digital Channels
Social Media and Digital Goals
Marketing Execution Plan
Final Recommendations
Distribution:
Review of Criteria
Considering different types of distributors
Comparison of California Distributors
Final Recommendations
Methodology
Primary Research:
Secondary:
Identifying Unique Value Propositions
Identifying Unique Value Propositions
Consumer interest: Quality, the story behind the product, and authenticity.
Angie Weber:
Identifying Unique Value Propositions
In social media posts and marketing, emphasis the awards that the liquid has won.
Unique Value Propositions
Organic: Certain qualifications must be met
Highlight these aspects:
This marketing should be coupled with imagery that both demonstrates the organic processes, fields, farming techniques, and storytelling.
Other potential unique value propositions:
Utilize Award Imagery
Buyer Profile: Identifying Key Target Segments and Characteristics
A look at the 2020 Tequila Industry
Who Is Buying Tequila?
Wide palitibility:
Other data shows that tequila sales slightly skew towards a slight majority of female consumers and purchasers.
Who Is Buying Tequila?
Further, data has shown that 84% of purchasers are between the ages of 21 and 45 years of age and 16% of buyers are 21-24 years of age.
Growth in the market is not even: Follows demographic and regional trends:
Areas where tequila has an above-average share of the market:
Who Is Buying Tequila?
Millennial and Hispanic buying power is surging.
Tequila has significant cross-cultural appeal.
The Hispanic population has grown from 12.5% in 2000 to 16.3% in 2010 and is expected to continue significantly.
Who Is Buying Tequila?
On-trade: Business with hotels, bars, restaurants
Off-trade: Food retailers like supermarkets
Market Positioning
Top 5 Tequila Brands in the U.S. by Sales Volume
Top 5 Competitors in the U.S.
Source: Tequila Matchmaker
Pricing Recommendations
Considering the lack of brand awareness and the saturated market, we recommend a price point of around $35.
Once a product is on the market for a certain price, it is difficult to raise the price. Therefore, select a price point that you will be comfortable maintaining throughout the foreseeable future.
(The Drinks Business)
Analyzing the Competition
Price and Quality Competitors
Competitor’s Social Media Channels
Competitor’s Social Media Profiles
Maestro Dobel
@maestrodobelmexico
Don Nacho
@donnachooficial
Competitor’s Social Media Profiles
Tres Agaves
@tresagavesproductos
Fortaleza
@drinkfortaleza
Competitor Analysis: Takeaways
Establishing Social Media Channels to be Used
LinkedIn: B2B Networking Champ
Facebook: The Godfather of Social Media
Instagram: The Visual Social Network
Social Media Channels
Facebook is the most used social media platform across all ages in the United States, including millennials. However, we believe Instagram to be the strongest platform to use.
Instagram Business: The Facebook for Business
Social media affects the purchasing decisions of users.
Social Media and Digital Goals
Expanding Instagram
Expanding Facebook
Aesthetic
Imagery Ideas that Relate to the Themes of History, Organic, and Unique Value Propositions
Some Considerations
Though organic growth is possible on Instagram, it is hard to generate growth among specific geographical populations.
Therefore, we suggest utilizing the promotion tools or ads to target populations in the geographic location, Southern California, where you wish to see growth.
Recommendation: Utilize hashtags that target your desired geographic location.
Content Ideas
High quality content:
Post content that consistently reflects the unique value propositions of the product:
Content Creation
Celebrity and Influencer Endorsements
Celebrity participation in the industry is giving the tequila industry a premium reputation.
(The Drinks Business)
Marketing Execution Plan
Social Media Posts
Goals for the most successful engagement:
Social media growth and engagement requires consistency.
Instagram:
Facebook: Two to three feed posts daily
Utilize the analytics feature on Instagram to monitor engagement and growth.
Link the Instagram and Facebook accounts: Every time you post on Instagram, the same post will go to Facebook.
Post Planning
Apps that can help with feed planning: UNUM and Planoly
Create a calendar and plan content one to two months ahead of time:
Utilize hashtags in every post caption to generate engagement with the post.
Social Media Budgeting
If the budget allows, targeted Instagram promotions, Google ads, and Facebook ads would drive engagement with company’s social media pages.
It is suggested that smaller companies spend 2% to 5% of revenue on marketing, and larger companies often spend 5% to 10% of revenue on marketing.
https://blog.hootsuite.com/the-7-components-of-every-social-media-budget/
Six Components of a Social Media Budget
https://blog.hootsuite.com/the-7-components-of-every-social-media-budget/
What is the priority?
Focus social media growth, time, effort initially in Instagram.
Try to create momentum and growth on Instagram, then expand usage on other social media channels.
Facebook growth is difficult without spending a lot of money.
What is the priority?
Marketing Strategies Beyond Social Media
The importance of bartenders in product success: Bartenders have the ability to push the product, create a consumer base.
Other ideas:
Final Recommendations
In marketing: Focus on the awards, organic content, health, family-owned, and authenticity.
Target base: Millennials and hispanics
Price recommendation: $35
Social media focus: Instagram
Tell a different story. Stand out through your social media posts.
Tequila Distributors
Methodology
Objective: A deep-dive into possible distributors.
Secondary research:
Review of Last Semester’s Findings
Finding a Distributor
Firstly:
Secondly:
Who did we recommend?
Distributors - General Analysis & Comparison
Criteria for Evaluating Distributors
Positioning
It’s extremely important to identify how Casa Don Javier stands out from competition- even if they’re managed by the same distributor.
Distributors
Distributors - Gen. Facts
These 3 distributors provide differentiated and unparalleled support to their brands- all with established track records.
53 years
Years in Market
Coverage of Distribution (no. of states)
Average Price Margin*
No. of tequila brands
28%
44 states
70 tequila brands
48 years
28%
1 state (CA)
9 tequila brands
70 years
28%
48 states
2 tequila brands
Do they provide marketing support?
No
No
Yes
*Industry standard average price margin. Originally from Southern Glazer’s.
Major House Brand
Misc. Wholesaler
Misc. Wholesaler
Distributors & Tequila Brands
70
9
2
Each distributor carries a different amount of brands - especially tequila brands.
tequila brands
tequila brands
tequila brands
Distributors & Organic Tequila Brands
1
0
0
organic tequila
organic tequila
organic tequila
Distributors - Location
All 3 distributors have hubs located in Southern California creating for more exposure and easier access to the target markets.
Distributors - Values
The values and mission should also play a large role in choosing a distributor.
“[Our goal is] to be the distributor of choice… through a diverse team of industry leaders, while giving back to the communities we serve.”
“ Proud to be a multigenerational, family-owned business.”
“Wine Warehouse is a multi-generational, family owned and operated”
“ Employees, supplier partners, and accounts enjoy full transparency and honest business practices.”
“LeVecke Wine, Beer & Spirits is committed to producing products that are sustainable, clean, and responsible.”
“ Our commitment to our team and our diversity starts with our corporate values and business practices.”
“Quality, Integrity, & Family”
Distributors - Tequila Comparison / Competitive Advantage
Method - pt. 1
The first step of the competitive analysis was to identify which brands were distributed by each distributor.
Method - pt. 1 cont.
The first step of the competitive analysis was to identify which brands were distributed by each distributor.
Method
How did I choose these specific tequila brands for each distributor?
Wine Warehouse | Price: Blanco | Reposado | Anejo | Extra Anejo | Organic? |
Arette Tequila | 21.99 | 27.9 | 32.5 | 114.99 | No |
Don Felix | 35.99 | 37.99 | 54.99 | - | No |
Don Fulano Tequila | 41.99 | 49.99 | 63.99 | 145.99 | No |
Don Pilar Tequila | 36.99 | 39.98 | 43.99 | 146.99 | No |
Familia Camarena | 17.99 | 17.99 | 27.99 | - | No |
Fortaleza Tequila | 39.96 | 49.98 | 73.99 | - | No |
G4 Tequila | 31.99 | 39.99 | 64.99 | 99.99 | No |
Grand Mayan | 59.99 | 69.99 | - | 79.99 | No |
Hacienda Vieja | 25.99 | 27.95 | 32.95 | - | No |
Method pt. 2
How did I choose these specific tequila brands for each distributor?
2. Filter tequila by price, type of tequila, and type of tequila to see which brands fit closest with Casa Don Javier.
ex.
Arette Tequila 21.99 27.90 32.50 114.99 No
Don Felix 35.99 37.90 54.99 - No
Don Fulano 41.99 49.99 63.99 145.99 No
Don Pilar 36.99 39.98 43.99 146.99 No
Familia Camarena 17.99 17.99 27.99 - No
Fortaleza 39.96 49.98 73.99 - No
G4 Tequila 31.99 39.99 64.99 99.99 No
Grand Mayan 59.99 69.99 - 79.99 No
Hacienda Vieja 25.99 27.95 32.95 - No
Wine Warehouse Blanco Reposado Anejo Extra Anejo Organic
Method pt. 1
70
9
2
How did I choose these specific tequila brands for each distributor?
To determine where Casa Don Javier sits, we wrote down every tequila distributed by each distributor..
tequila brands
tequila brands
tequila brands
Method pt. 2
How did I choose these specific tequila brands for each distributor?
Then compared Casa Don Javier directly with them.
Don Fulano 41.99 49.99 63.99 145.99 No
Don Pilar 36.99 39.98 43.99 146.99 No
Fortaleza 39.96 49.98 73.99 - No
Wine Warehouse Blanco Reposado Anejo Extra Anejo Organic
Casa Don Javier 35.00 42.00 50.00 - Yes
Southern Glazer’s Picks
Out of nearly 70 brands distributed by Southern Glazer’s in California, we decided to narrow down the comparison to the 3 most similar brands. Here are the reasons or characteristics that we determined most closely matched Casa Don Javier:
Wine Warehouse’s Picks
Out of nearly 9 brands distributed by Wine Warehouse in California, we decided to narrow down the comparison to the 3 most similar brands. Here are the reasons or characteristics that we determined most closely matched Casa Don Javier:
Price Comparisons
Southern Glazer’s - Blanco
Out of nearly 70 brands distributed by Southern Glazer’s in California, we decided to narrow down the comparison to the 3 most similar brands. Below is the comparison for blanco tequilas.
* Organic
*
Southern Glazer’s - Reposado
Out of nearly 70 brands distributed by Southern Glazer’s in California, we decided to narrow down the comparison to the 3 most similar brands. Below is the comparison for reposado tequilas.
* Organic
*
Southern Glazer’s - Anejo
Out of nearly 70 brands distributed by Southern Glazer’s in California, we decided to narrow down the comparison to the 3 most similar brands. Below is the comparison for anejo tequilas.
* Organic
*
Wine Warehouse - Blanco
Out of 9 brands distributed by Wine Warehouse in California, we decided to narrow down the comparison to the 3 most similar brands. More specifically, their blanco tequila.
Wine Warehouse - Reposado
Out of 9 brands distributed by Wine Warehouse in California, we decided to narrow down the comparison to the 3 most similar brands. More specifically, their reposado tequila.
Wine Warehouse - Anejo
Out of 9 brands distributed by Wine Warehouse in California, we decided to narrow down the comparison to the 3 most similar brands. More specifically, their anejo tequila.
Levecke Wine, Beer, & Spirits - Blanco
There are only 2 brands distributed by Levecke. Below is the comparison to Casa Don Javier’s blanco tequila.
Levecke Wine, Beer, & Spirits - Reposado
There are only 2 brands distributed by Levecke. Below is the comparison to Casa Don Javier’s reposado tequila.
Levecke Wine, Beer, & Spirits - Anejo
There are only 2 brands distributed by Levecke. Below is the comparison to Casa Don Javier’s anejo tequila.
Takeaways
Key points from the bar graphs and information presented a few minutes ago.
Pros:
Cons:
Pros:
Cons:
Pros:
Cons:
Thank you for your time!
Any questions?
Sources