JAGERMEISTER1

JAGERMEISTER: 

JAGERMEISTER Top Shelf Agency Brian Stinson Josh Fox Tracy Cassady Heather Santos Dave Crawford 10-04-04 The overall analysis of Jagermeister

Company Analysis: 

Company Analysis Mast-Jagermeister was established in Germany in 1878 Started as a vinegar producer and wine dealership In 1934, Jagermeister was concocted from a secret recipe of 56 herbs and spices. In 1973, Jagermeister hired Sidney Frank Importing Co. to import and distribute Jager to the U.S. This company uses innovative ways to market their product, which has increased sales to more than 1 million cases/year

Corporate Reputation & Image: 

Corporate Reputation & Image Seen as a generous company by donating to many organizations, one being $750,000 to family’s of New York Fire Fighters and Police officers. One of their main points they stress in their advertising is to drink responsibly. #1 Imported Liqueur They market a single image to each individual country Germany’s most popular exported spirit

Package, Price, & Distribution: 

Package, Price, & Distribution Offers 7 different sizes of its unique green-squared container to retail stores. Shots are most common form in bars and restaurants. Distributed by Sidney Frank Importing Co. The price differs from $12 for a pint to $43 for a half-gallon.

Differentiations: 

Differentiations Only dark black-licorice available A Jager tap machine that chills 3 full fifths at 5 degrees Fahrenheit, and has a push button that dispenses the liqueur in equal amounts Consumers as well as restaurant and bar owners are able to purchase the Jager tap machine.

Sales: 

Sales Market growth has been growing slowly Brand sales have been increasing over the past 5 years Doubling in only 3 years from 500 thousand case to one million cases

Trends:: 

Trends: Industry Maturity of market may account for: Slow growth and high profitability Cordial liquor sales increase Due significant differences among specialties Still market is tightly regulated Brand Brand sales have been increasing quickly since 2000 Jagermeister is the #1 specialty imported brand. Brand holds 3.96% of its market

Growth: Where are we now, Where will we be: 

Growth: Where are we now, Where will we be Now: Sales have been increasing, doubling in 3 years 58% of all jagermeister sales go overseas nearly 30% of this goes to the US. Grow of 7.1% during the first half 2003 projecting above average to continue Future: After a 4% rise in 2003 the market is expected to rise again by the end of 2004 This years sales are projected to rise 3.1% to 164.0 million cases.

Leading Competitors: 

Leading Competitors Imported 1. Kahula(1380) 2. Bailey’s(1032) 3. Alize(600) Domestic 1. Dekuyper’s(2565) 2. Southern Comfort(1269) 3. Hiram Walker Cordials(1035) Brands are ranked by sales of thousands of 9-liter bottles

Market Share Distribution: 

Market Share Distribution Dekuypers- 14.52% Kahula- 7.81%* Southern Comfort- 7.18% Hiram Walker Cordials- 5.86% Bailey’s- 5.84%* Jagermeister- 3.96%* Alize- 3.4%* *imported

Competitor’s Strengthsand Weaknesses: 

Competitor’s Strengths and Weaknesses Strengths Revamping packing and image (eg. alize) Competitors can take advantage of a lighter liqueur. They actively advertise in the U.S. Multiple flavors of same brand (eg. Dekuyper) Weakness Target market is too narrow (eg. Bailey’s) Weak symbol Weak importing

Demographics: 

Demographics Age- 21-29 and declines with age Sex- Male Race- White Marital Status- single (divorced and not previously married) Education- 1st year college student or graduate Occupation- managers/administration and service workers Income- $30,000 +

Psychographics: 

Psychographics Buying behavior- specifically looking for Jagermeister Political Outlook- conservative people Activities- Hunting and Fishing along with recreational sports Interests & Lifestyle- Slayer is headlining a concert tour w/Jagermeister, appealing to the death metal audience.

Media Habits: 

Media Habits Before 2003, there has been no official advertising in the U.S. Sidney Frank is now just starting to do advertising in the U.S. California & Nevada saw some spots on local sports channels San Diego is getting Jager spots on MTV and ESPN They are also starting to do radio spots in Los Angeles.

Economic Impact: 

Economic Impact Present state of U.S. economy Personal Income Increased .4% in August 2004 Present International economy Decreasing transaction and trade With increasing promotion and income in the US, Jager is tripling its sales.

Technological Advances: 

Technological Advances Tap Machine Serves individual jager shots at an ideal serving temperature of 5% Tap machine is highly visible to bar patrons and quick way for bartenders to dispense shots The new J99 model is the least expensive, most energy efficient, and most reliable tap machine ever produced by Jagermeister

Regulations: 

Regulations Federal law can influence state alcohol policies by means of financial incentives States vary in amount of authority they allocate to local government to regulate alcohol Local ordinances regulate sales and distribution, while other states are at state level control

Today’s Values and Norms: 

Today’s Values and Norms Parents and adults in communities across country want to reduce underage drinking Alcohol Ads reach 96% +21 93% under 21 Along with music tours, parties, and Tap machines, Jagermeister has become very popular among the younger generations

Summary: 

Summary Strengths Brand identity Current promotion Concert tours, Jager bus, Jaggerettes & jagger-dudes inform consumer about product Weaknesses Limited television and radio advertising in US Opportunity Launching a campaign to drink responsibly across college campuses and communities Threats Brands with multi-flavors Brands offering different levels of alcohol content

References: 

References www.jager.com www.jagermeister.com Simmons Study of Media and Markets Lifestyle Market Analyst Draper, Deborah. Business Rankings Annual 1989-2004. pg. 487. Lazich, Robert S. Market Share Reporter 2004. pg 385. Todd, Heather. Lets do some shots. Beverage World. NY Nov. 15, 2003. Vol. 122 Iss. 1732. pg.10. Wassener, Bettina. Schnapps goes to college The Financial Times. 09/14/03 pg. 15. www.bea.doc.gov http://camy.org www.alcoholpolicy.niaaa.nih.gov Trick Tasting. Beverage Industry, August 2003. Vol. 94 Iss8. Pg 34 Mediaweek, December 9, 1996. v6 n47 p3. “Jagermeister TV ads airing in West.” Standard & Poors , Industry Surveys Vol. 172, no 36 Section 1 Wine Handbook. Distilled spirits consumption by category, 2004 pg 9-37 Brandes, Richard. A spirited business. Beverage Industry. May 2000 pg. 20