Tuesday, March 29, 2011

Ch. 18 - Sale Promotion and Personal Selling

As you already know, Svedka vodka is a specialty product, and it is not very complex.  The majority sales promotion is done towards the trade sales.  Below is a picture of Svedka's trade promotions at a 2005 trade show.
Svedka will do very little personal selling.  Strict alcohol laws would restrict many opportunities to do so.  Wine and spirit distributors will do the majority of the promotional selling.  As of 2009, Svedka signed into several multi-year contracts with distibutors Southern Wine and Spirits, Republic National Distributing, and National Wine & Spirits.  The details and terms of the deals were not disclosed (http://www.bizjournals.com/sanfrancisco/stories/2009/07/20/daily83.html).  Therefore, little is know on what incentives, promotional deals, and premiums the distributors were offered.  We also do not know what measures are being taken to secure the on going relationship between the two entities.  Svedka also stated that they will continue to work with other distributors to spread their products.  As for the distributors for Svedka, they will then go into the personal selling process.  They will identify, restaurants, bars, and liquor stores as their potential customers, and so on to the last steps until closing occurs.  Below are sevaral Point-of-Purchase Promotions that you may find at liquor stores and bars.




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