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Moet&Candon

DVP Presentation, May 2012
by

Femi Abiola

on 28 October 2013

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Transcript of Moet&Candon


In 1743, Claude Moët founded Moët & Cie
In 1832, business is renamed to Moët et Chandon.
In 1860's, their best selling Brut Imperial was introduced.
In 1971, Moët et Chandon merges with Jas. Hennessy & Company and is renamed to Moët-Hennessy
In 1987: Louis Vuitton and Moët-Hennessy merge in a $4 billion deal to form the No. 1 luxury goods company, LVMH.
No. 1 brand under "Wines & Spirits" in LVMH
History
No. 1 luxury champagne brand in the luxury market
(Source: Nielson)

Global success due to its unique value propositions

Due to recession and rising competition causing a drop in sales volume
Introduction
Competition
SWOT/PEST
Past Campaigns
Market Research
Our Proposal
KPI/Metrics
Budget
Summary

SWOT ANALYSIS
PEST ANALYSIS
To increase sales volume 15%
To increase brand awareness 25%
To increase market share by 10%
To increase profit by 15%
To increase website traffic by 20%
To attract customers to retail outlets

KPIs (6 months)
Metrics
Internal LVMH Competitors
External Competitors
Recommendations
Moet & Chandon meets the stars of the screen: Charlize Theron, Madonna, Adam Levine, Harrison Ford, etc.
Toast for a cause initiative
Win a Date with Scarlett Johansson at Christie's Wine Auction
Winning bidder will get:
6 bottles of 100-year-old Moet & Chandon champagne
Packed in a Louis Vuitton leather chest
A lunch date with Scarlett
Johansson
Moet holds Royal Warrant to supply wines to Queen Elizabeth II since 1955
QUEEN’S DIAMOND JUBILEE
COMMEMORATIVE LABEL
Moët has produced an exclusive Diamond Jubilee Cuvee and has been given approval to sell bottles
Moet & Chandon Bar: Royal Albert Hall, London
World's most celebrated entertainment and arts venue partners with world's most loved champagne as the exclusive supplier
TAG YOUR LOVE CAMPAIGN
Moet Rose presents a playful Graffiti kit to make you unique in declaring your love
Formular 1 Sponsor
Moet Champagne shower at the end of every Grand Prix for over 25 years
Champagne for Lovers
http://www.lovemarkscampus.com/champagne-for-lovers/
Champagne Sales 2011
http://www.marketingweek.co.uk/the-champagne-brand-thats-a-little-bit-crazy/3032903.article
Sales drop from late 2007
Multi-purpose store at Selfridges; Moet & Chandon wines & accessories will be sold at departmental outlets in London (Olympics/Queen's Jubilee)
Magazine Advertisement:
Vogue, GQ and Glamour
Champagne served with desserts, Recipe Books, Accessories, Customizations, Party/Wedding Packages
Promotions, Pamphlets, Website upgrade, Online Store, Facebook/Mobile Apps
6 Months retail space
=£100, 000
Retail space size
= 1200-1300 Square feet
Selfridges London
Store Space/ Merhandising
Magazine Advertisements
GQ Advertisement
Print
READERSHIP: 1,401,000
Average age: 33
Male: 83%
Average Household Income: £ 66,903


Online
SITE TRAFFIC: 4,800,000
Average age: 33
Male: 80%
Glamour Advertisement
Print
READERSHIP: 2,465,000
Average age: 29
Female: 94%
Average Household Income: £ 69,215


Online
SITE TRAFFIC: 19,145,520
Average age: 31
Female: 94%
Vogue Advertisement
Print
READERSHIP: 1,300,000
Average age: 34
Female: 86%
Average Household Income: £ 60,106


Online
SITE TRAFFIC:21,909,648
Average age: 31
Female: 93%
-Magazine advertisement will be on every alternative month, so for the 6 months, advertisement will take place on the 1st, 3rd and 5th months

- Total advertisement Costs:
GQ: £14,250 x 3 = £42,750
Glamour: £27,939 x 3 = £83,817
Vogue: £29,000 x 3 = £87,000

Total= £213567
Menu, Recipe book, Dessert, Accessories, Customizable gift sets
Source: Conde Nast
Source: Conde Nast
Source: Conde Nast
Source: Conde Nast, Alibaba Wholesale, ShowCase
Source: Fame Database
Recession Effect
Accessories Examples
Merchandising
Multi-purpose store - buy, taste, order vintage varieties, get accessories,customize bottles, etc.
Dedicated Moet shelves in major retail chains - John Lewis, Tesco, Waitrose, Sainsubury's etc. to promote Moet in London for Olympics/Queen's Jubilee
Available in Selfridges, resturants, bars, hotels to enrich customers' Moet experience
Promotions, Pamphlets, Online Store, Facebook/Mobile Apps
Customizable Gift Sets
Customizable bottles as gift sets to sell for extra in Moet's online and physical stores
Includes a QR code for direct access to online store
To be placed in flagship stores and retail outlets
Adverts to placed in three top magazines - GQ, Galmour, Vogue to increase awareness of Moet & Chandon
Why Moet & Chandon?
1
2
3
4
Marketing Tactics
Online Store
Customers can customize and buy their favourite champagne, gift sets, accessories, etc.
Sample menu and dessert
Sample Flier
Mobile Apps
Limited functions on existing Android App
Upgrade of App and new ones to be develped
Functions to include recipe info, customization, vintage varieties, etc.
iphone App to be developed
(cc) photo by medhead on Flickr
Leading champagne brand
Major celebrity endorsements and sponsorships
One of the best-selling brands in the LVMH portfolio
Enjoys public goodwill from brand heritage and CSR activities
Strong financial position: High margins & high cash flow
Wide geographical presence
Heavy reliance on a single region i.e. Western Europe
Poor interaction with consumers due to B2B nature of the business
Declining margins despite cost cutting measures
High dependence on retailers
Investments
Emerging markets for luxury items e.g. India, China.
Expansion through organic growth
Brand extensions e.g accessories
Partnership opportunities with other luxury brands
Marketing Expenditure
-Pocket notebooks
-Candles
-Candle Holders
-Chocolates
-Key Chains
-Flutes
-Bottle Coasters
-Recipe Book
-History Book
-30p x 500,000 = £150,000
-30p x 500,000 = £150,000
-35p x 500,000 = £175,000
-£3 x 500,000 = £1,500,000
-25p x 500,000 = £125,000
-30p x 500,000 = £150,000
-65p x 500,000 = £325,000
-50p x 500,000 = £250,000
-65p x 500,000 = £325,000

Total = £3, 150, 000
Many competitors in still and sparkling wines category
Counterfeiting is a recurrent menace
Consumers are becoming frugal and spend less on luxury products
Economic Crisis: Major luxury markets e.g. US, Europe & Japan are becoming fragile
Accesories
STRENGTHS
WEAKNESSES
Selfridges
OPPORTUNITIES
Magazine Advertisement
THREATS
Laws on drinking in different countries affects sales and promotions
Heavy taxation on luxury items leads to high cost
Recession has affected the luxury market - Europe, USA, Japan
Champagne sales yet to reach pre-recession days
Customers are looking for cheaper sparkling wines alternative
In 2009, sales fell by 9.6% in the UK
Alcohol prohibition due to religion affects sales of champagne in some areas
The luxury status makes it desirable amongst the high class and the status conscious
Moet is the champagne of choice in high profile celebrity events
Popular Hollywood celebrity Scarlett Johansson is the brand ambassador
Applications
Online sales of luxury products increasing in emerging markets like China, India
Poor social media presence, there is room for improvement
FACEBOOK APP £20,000
MOBILE APP £50,000

Total= £70,000
POLITICAL
SOCIAL
ECONOMIC
TECHNOLOGICAL
Website Upgrading
£20,000
Celebration
Luxury
Elegance
Happiness
Heritage
Dinner
Victory
Spirit
French
Magazine Advertisement Cost= £213,567
Selfridge Space Rental Cost= £100,000
Application Costs= £70,000
Online Store Upgrading Cost = £20,000
Accessories Cost = £3,150,000
Total= £3,553,567
Pleasant
Fun
Parties
Sharing
Love
Tasty
Fashion
Royal
Excitement
Expensive
Loud
Extravagant
Alcoholic
Common
Market Research
5 Resturants/bars
5 Hotels
100 respondents
Varying opinions
Positive views
Negative views
Also a hang out spot for wine lovers
OUTLINE
Market Report
Moet & Chandon Past Campaigns
Competitors Activities
Pommery
The Pommery Champagne Bar, Edinburgh
An exclusive pop-up bar open for private events also
Rémy
1
2
3
4
1. Promotional 3D bottle

2. Complimentary champagne
cocktail at Rémy bar

3. Champagne pudding packed
with fruits

4. Limited edition Grande
Champagne Cognac
Laurent-Perrier
1
2
3
1. The Laurent-Perrier suite
2. Champagne Bar at Belgium
3. Limited edition wooden box
Other competitors in the still & sparkling wines market
Short Video
Introduction
Competitors
Campaign Timeline
Magazine Advertisement
Summary
Moet & Chandon is an exclusive champagne brand under LVMH
Competitors
Store space at Selfridges
Product Extension
Print Advertisement
Online Store
Application Upgrades
KPIs/Metrics
6 months campaign
Total budget = £3,553,567
Budget
Thank You for
Listening

Any Questions?
Magrins and Profit -
Unit Margin = Unit Price - Unit Cost
Channel Margin = Channel profit
(%Channel Selling Price)
Market Share =
Sales revenue
(% Market Sales Revenue)
Brand Awareness =
% Total Population Aware
Target Volume =
Sales Increase
(Increase Investment)
Loyalty =
Share of requirements
Willigness to search
ROMI -
Incremental Revenue/
Marketing Spending
Advertising Media & Web Metrics =
Impressions, Effective Reach, Visitors
Full transcript