Benefits of Nigori Sake

Discuss about the Marketing Of Burleigh Brewing Company.

Burleigh Brewing Company is an alcoholic beverage producing company located in Gold Coast, Queensland, Australia. Company was founded in 2006 by Peta and Brennan Fielding. Under their company, they have launched various beverages and amongst them mainly are forms of beer. Duke Helles, Duke Premium Lager, HEF, Big Head, 28 Pale Ale, Figjam IPA and My Wife’s Bitter are forms of beer produced by Burleigh Brewing Company (Burleigh Brewing, 2018). All these beers are adopted from various parts of the globe and organization has launched them under their name in Australia. Now company has planned to launch “Nigori Sake” which is a Japanese alcoholic beverage made by fermenting rice and polished for removing bran. Nigori sake is quite popular beverage in Japan and it represents the famous ‘milky’ or ‘cloudy’ sakes (Sasaki & Sone, 2015). It is also known as Japanese rice wine and unlike other wines under which alcohol is added by fermenting sugar because it is already present in fruit such as grapes, sake is made up from brewing process which is quite similar to the process of making beer. Nigori Sake is also known as national drink and reviewing the popularity of this drink in Japan and other markets, organization has planned to launch it in Australia with the objective of uplifting its market share in the Australian alcoholic brewing industry.

Nigori Sake is unfiltered beverage that has been coarsely filtered so that rice particles could remain in the drink. This makes the drink more attractive and flavoured. People who like to take direct alcohol will be the primary consumers of this drink because level of alcohol is quite high in Nigori Sake. Serving chilled Nigori with international spicy fare is the most attractive point for this beverage. It is the most flavoured and sweetest sake from all other sakes and this is the reason why this is served with spicy foods.

Market segmentation technique is used for segregating a big target market into small segments in order to gain positive outcomes. This is done on the basis of people’s interest, demographic, distribution of income, etc. There are several methods through which a market can be divided such as age, income, family size, behavioural segmentation, etc. Burleigh Brewing Company has segregated its target market on the basis of people who love to take hard drinks. Apart from this, segmenting market by alcohol preferences will be helpful for the organization. After selecting the most appropriate target market such as youth and people aged 24-50 in terms of promoting Nigori Sake, appropriate promotional techniques will be adopted for approaching the target audience (Wedel & Kamakura, 2012).

Target Audience

‘The ultimate party drink for all the occasions’ will be the most suitable positioning statement for Nigori Sake. With the help of this positioning statement, Burleigh Brewing Company will easily be able to promote it in the target market effectively. Apart from this, organization would be able to develop its significant image in the competitive alcoholic beverage industry in Australia.

SMART stands for specific, measurable, achievable, relevant and time. It describes that the objectives of the organization regarding particular product. In relevance with the Nigori Sake, primary objectives of Burleigh Brewing Company are enhancing the demand of the product in target market, increasing revenues within a specified time period. Apart from this, organization has aimed towards objectives so that they should be actual and measurable as per the current situation in the market (Weinstein, 2013).

Product layers

Core product is the first layer of the product and it is not tangible in nature. It is the benefit which is obtained from the consumption of product. In terms of Nigori Sake, benefit and value of the product will be the pleasure feeling after its consumption. It is made up from fermented rice and for the purpose of increasing feeling and flavour, rice particles are kept inside the drink. It will relax the human body and make the person comfortable and refreshed. Actual product is the tangible in nature and could be seen as well as touched. Nigori Sake is an alcoholic drink and it is a type of wine made up from fermented rice. Thus, the actual product will be wine in this scenario. Augmented product is non-physical part of the product’s body such as the type of flavours available in Nigori Sake (Lawlor, 2012).

Type of product

Nigori Sake is a type of speciality product category. This is because this drink has specific consumers because it is bit unique and different from other alcoholic beverages. Nigori Sake is a type of alcoholic beverage and its target audience is limited and it will be purchased due to its unique characteristics such as chilled fermented rice wine served with spicy food. Hence, it is a part of speciality product category.

Branding Strategies

Nigori Sake is a unique type of alcoholic beverage. In order to promote this product Australian market, it is necessary for Burleigh brewing company to highlight the USPs of the product. Along with the USPs, benefits of the drink and the type of flavours available in this drink will also be highlighted in order to attract target audience. For approaching the target audience, trending digital media strategies and traditional techniques would be utilised. Digital media strategies such as email marketing, social media platforms such as Facebook, Twitter, Instagram and other platforms would be used. Apart from this, organization could also promote Nigori Sake in Australian market with the help of traditional promotional techniques such as television, radio, magazines, etc. But in these strategies, profiling of consumers would be bit difficult. This is because in television and radio marketing, segregation of audience cannot be done, hence, advertisement will be visible for all people which could affect morals, beliefs and values of consumers (Armstrong, Kotler, Harker & Brennan, 2015).

Packaging

Market Segmentation Techniques

These two images show the serving and packaging of Nigori Sake in Japan. Organization will also adopt unique packaging strategy to attract target audience in Australian market. As it is a traditional drink in Japan, thus, this could also be used as a promotional statement along with its traditional packaging to approach target audience. Apart from this, the second figure shows that the Sake is served in a clear glass in Japan so that consumers could feel and experience the drink’s colour, flavour as well as aroma. In Japan, it is known as the national beverage and the bottle in which it is packed is called as tokkuri and the clear glass in which it is served is known as sakazuki. Adaptation of these strategies will help the Burleigh brewing company to promote Nigori Sake in the target market.

Product development process

Product development process includes several promotional strategies. Along with this, investment is also made in the development stage of the product in order to approach the target audience. Apart from this, organization has observed that Nigori Sake is a national beverage in Japan, thus, for its promotion in Australia, trending promotional strategies will be required which will consume approximately 40% of the total budgeted capital. With the help of these strategies, organization will be able to expand its market share as well as customer base (Huang & Sarigöllü, 2014).

Channel structure

There are numerous distribution channel structures present in the business environment. In terms of distributing Nigori Sake Australia, channel structure will be selected on the basis of analysing certain factors. These factors are total cost, impact over brand image, demand of product, etc.

• Producer—Wholesaler—Retailer—Consumer
• Producer——————Retailer——Consumer
• Producer———————————-Consumer

Burleigh brewing company has planned to distribute Nigori Sake through supermarkets, hypermarkets and by retail wine stores in Australia. In order to accomplish the goals and objectives of enhancing its demand in the target market along with the raising its market share, mixture of all distribution channels will be adopted (Luan & Sudhir, 2010).

Factors affecting channel choice

Cost of the product, value of the product, standard of the product, technical nature, market considerations, number of buyers, type of buyers, buying quantity, size of market, etc. are factors which will be considered because wrong selection of distribution of channel could affect organizational as product’s brand image, goodwill, controlling power of the channel, revenues, etc. in the new target market. Thus, it is quite necessary to consider these aspects before selecting the appropriate distribution channel in terms of marketing conditions (Mintz & Currim, 2013).

Levels of distribution intensity

Promotional Strategies

Level of distribution intensity depends upon factors such as production capacity, target market size, promotional and pricing strategies and the product service required by the end-user. Available channel of distribution for Burleigh brewing company are selective distribution channel, intensive distribution channel and exclusive distribution channel. Thus, it is necessary to evaluate all factors amongst all distribution channels before selecting the appropriate distribution channel.

Retailing

Retail stores plays crucial role in order to distribute the products to the target audience in an effective manner. This is because number of retail stores is high in comparison to the supermarkets, hypermarkets and other distribution units. Generally, people went to their nearest retail store for purchasing basic goods and Nigori Sake is a type of speciality product, thus, if it will be available in in the retail outlets nearby to the target audiences, organization will be able to acquire its desired goals and objectives in the target market. In order to execute this action, organization needs to take liquor license for selling Nigori Sake in Australian market. This will enhance the demand of the product along with making it popular within the domestic market (Pomering, Noble & Johnson, 2011).

Benefits of Retailing/utility

• Awareness: Primary benefit of retail marketing is that it helps to spread awareness amongst the target audience. It makes the newly launched products available at the nearest stores of consumers. Retail marketing acts as bridge between target market and potential customers.
• Enhances profits and sales: With the help of retail marketing, new product could easily be promoted amongst the target audience. During initial period after product launching, retail stores offers discount or special sale coupon which is an alternative for attracting large number of audience. This will ultimately results in enhancing profitability and enhancing sales (Fine, 2017).
• Creates competitive environment: Due to retail marketing healthy competitive business environment develops amongst the retailers present in the particular market. For example: if Nigori Sake will be available in most of the retail stores in the target market, none retailer will be able to sell it on high prices. If it happens, audience will shift to another retail stores as there is no switching cost involved as well as the buyers purchasing power is always high in competitive business environment.

Goals for promotion

Primary goals for promoting a new product in new market is spreading awareness amongst the potential customers, informing and persuading. Informing refers to the point where promotional messages are used for educating the target market in relevance with the product’s features, USPs, etc. In terms of Nigori Sake, its positioning statement could be utilised for spreading information amongst the target consumers so that the goals of organization could easily be accomplished. Its positioning statement is “The perfect drink for all the occasions”. This will attract the potential customers as well as organization will be able to sustain for a longer period of time in alcoholic brewing industry (Kitchen & Burgmann, 2010).

Persuading is another goal for the organization in terms of enhancing the demand for their newly launched product. Organization has developed attractive promotional campaigns with attractive messages to convince the customers to switch their existing brands and adopt newly launched product under their brand name. This procedure comes under persuading. Burleigh brewing company will be able to attain its desired goals and objectives with the help of these techniques. Thus, enhancing market share for the organization as well as of new product and a large customer base will be an easy task in Australian market.

Promotional Mix

Product Development Process

This tool is used for communicating target audience with the motive of spreading awareness and for developing positive relations with the potential consumers. Following are certain crucial elements of promotional mix tool:

• Advertising: It is a type of one way communication process. Television, radio, newspaper advertisement, magazine, pamphlets are some of the tools will be used by Burleigh brewing company for spreading awareness amongst the target audience in relation with Nigori Sake.
• Personal selling: It is a type of tool through which organization sells its newly launched products meeting consumers face-to-face. Product description and its impressive features are used in terms of convincing the target audience for buying the product. In terms of Nigori Sake, this tool cannot be used because door-to-door marketing is not legal as well as not possible for promoting alcoholic beverages.
• Public relations: Motive of developing public relations is maintaining an effective brand image in the target market. Public relations are developed by distributing free samples, offering discount, etc. but this strategy will not suit in case of promoting Nigori Sake. The only way which is possible for developing better and positive relations amongst the target audience is serving better quality products in scenario of Nigori Sake (Prayag & Ryan, 2011).

Integrated marketing communication

It is a simple concept of promotional mix and it is used for ensuring that all forms of communications adopted by organization for promoting the new product and messages used are linked with each other. Primary objectives of IMC tools are spreading awareness amongst the target audience along with the internal stakeholders of the organization.

Factors affecting promotional mix

• Product type
• Usage of product
• Complexity of product
• Quantity purchased
• Frequency of purchase
• Size and type of market
• Product life cycle.

Push and pull strategies

Push strategy is used as a promotional tool in order to spread awareness amongst the target audience in relevance with the product through various mediums. “Taking the product to the consumer” is the main motive of push strategies.

Pull strategy involves the motivating or convincing the customers to seek out the brand as well as its products. Mass media promotion, advertising, CRM (customer relationship management), sales promotion and discount are certain measures used as pull strategies. Main motive of pull strategy is “Getting the customer come to the brand” (Dawson & Henley, 2012).

Pricing objective

Main motive behind pricing objective is to analyse the market offering of organization in relevance with the product. More clear objectives will lead to set the prices in easier manner. Certain crucial objectives are:

• Maximum current profit
• Maximum market share
• Survival
• Maximum market skimming
• Product-quality leadership

Target market perspective

While setting the price for the product, it is necessary to evaluate the impact of each price over the target market. Thus, it is necessary to evaluate target market perspective. It could be analysed by following ways:

• Price experiments
• Surveys
• Statistical analysis

Competitors pricing

Before setting the final price of the product, it is necessary to evaluate the pricing strategy adopted by competitors. This helps the organization to compete with its existing competitors and to make an effective and distinctive image amongst the target market (Lester, 2011).

Basis for pricing

• Fixed cost
• Variable cost
• Promotional cost
• Profit margin

These are certain variables which need to be considered while setting the final prices for the product. This will help the organization to compete in an effective manner in the target market (Akar & Topçu, 2011).

Pricing entry strategy and tactics

• Mark-up pricing
• Target return pricing
• Perceived value pricing
• Going rate pricing
• Value pricing
• Auction-type pricing

Determining the final price

After evaluating all the previous stages’ outcomes, organization is required to consider certain crucial additional factors which could affect the final prices of the new product:

• Other marketing activities’ impact
• Pricing policies of competitors
• Impact of prices over stakeholders
• Assessment of gain and risk sharing pricing (Terpstra, Foley & Sarathy, 2012).

Conclusion

From the aforesaid information, it can be concluded that, Nigori Sake is a national alcoholic beverage of Japan. Burleigh brewing company has planned to launch it in Australian market with the objective of enhancing its market share in Australia as well as to provide different and unique tastes to the Aussies. In order to promote it in the market with the motive of expansion of the market share and customer base, target market assessment, positioning statement, SMART goals and objectives in relevance with the marketing campaign has been discussed in this report by Burleigh brewing company. Marketing mix technique has been discussed with the objective of enhancing its market share so as to gain the desired goals and objectives.

References

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