THE SWOT

SWOT Analysis

Strengths

The main strength of Dsquared2 is its strong brand and prominent position within the target market segment.  The proposed market entry for the new premium vodka under the umbrella of the Dsquared2 brand will be in the form of a brand extension (Kotler and Keller, 2006). Research has shown that when new products are launched under existing brands then the chances of success are increased significantly. Dsquared2 has taken its time and considerable money to develop in the market and this is a major advantage to the business as it looks at suitable brand extensions that will ultimately assist the brand to increase in popularity and continue to build brand equity (Lindstrom, 2005).

Weaknesses

This is a new market for Dsquared2 and they have no previous experience of any product other than fashion.  Launching a new product to the market is a task that requires tremendous focus and it is possible that the time and attention required to launch the new premium brand vodka could have an impact on the organisation’s main product offerings (Kotler and Keller, 2006). A failure to focus on the task in hand could have a dramatic impact on the future viability of Dsquared2.

Opportunities

The purchase price and potential retail price certainly indicates that there could be a healthy profit to make in Dsquared2 vodka.  The vodka can be produced and distributed under the private label of Dsquared2 and this presents the proprietors with an opportunity to take up a position in the vodka market which has had several new market entrants recently (Hemley and Musonera, 2007). To make the most out of the brand that they have created, existing products sold by the company would be a good fit with private label vodka. 

Threats

The vodka market is highly competitive with several dominant players that have the financial resources to intimidate any company considering entering the market.  Smirnoff are the market leaders and have invested a significant amount of money to become established in the market but in doing so they have also increased the popularity of vodka as a drinking spirit and this has paved the way for new entrants to the market (Hemley and Musonera, 2007).  Entering the market as a premium product with a premium price may just be the key to success for Dsquared2 vodka as it can avoid price wars with the dominant companies in the vodka market.  Counterfeit vodka may also be a big threat to new private label vodkas and that includes those under recognisable brands because consumers may take time to gain trust in the brand (Telegraph, 2011).

PPD

Personal Reflective Statement

Writing this business plan has been a real challenge, as I have learned that it takes more than an idea to launch a successful business.  The initial idea to come up with vodka as a brand extension seemed logical, as I believed that fashion is connected to lifestyles and that includes socialising and drinking. Dsquared2 produce a range clothing range that targets the eighteen to thirty five age group. This age group is generally made up of singles and younger couples that don’t have the responsibility of families or mortgages but do have expendable income to enjoy. 

My initial research revealed that vodka drinkers are a very good fit with Dsquared2’s existing target market, due to the demographics of vodka drinkers and their existing customer base.  Research on brand extensions revealed the advantages or launching a new product under a brand umbrella or even brand ‘halo’.  The cost of launching a new product under an existing brand is much less expensive than launching a new product under a new brand.  Research has indicated to the cost of successfully launching a new brand can be as much as $1 Billion which is out of the budget of many organisations.  I discovered this was the reason companies would merge with or take over existing companies just to buy the brands which are extremely valuable.  Given that Dsquared2 is a successful brand that targets the 18-35 yrs target market segment there was an increased prospect of success with the launch of a private label vodka.  Dsquared2 provides the fashionable clothing for consumers who spend their time spending their expendable income on vodka, so it seems logical to provide the vodka along with the clothing.  I believed there could be real synergy to the products if the promotional mix that formed part of the integrated marketing communications campaign was pitched right.

Porter’s (1980) five forces enabled me to consider the competition that Dsquared2 would be up against if it entered the market and the marketing budget available to Smirnoff which was 20% of £1.2 billion was incredible.  I now understand why alcohol is so expensive to buy when it is ridiculously cheap to manufacture, it all comes down to the costs involved in promoting the products and getting consumers to align with the brand and making it part of their personality.  Brands are powerful influencers of consumer behavior and that is why companies must continually invest in their brands.  Investing in brands increases brand equity which makes the brand more valuable to the owner and more influential to the consumers who associates themselves with the brand.  I was intrigued to find out more about the influence of brands on consumers through the research that I conducted on symbolic consumerism and understand why it is vital that marketeers understand their target market to avoid wasting campaign budgets.  Since completing this project I have started to pay more attention to TV advertisements to identify trigger points being used in the marketing activities of major organisations.

THE IDEA

For my project i have chosen to work with Dsqaured2 and to launch a private label Vodka. The brand is all about having fun and enjoying life, therefore the customers and the owners are fans of partying and celebrating! 


The business plan proposes to extend the Dsqaured2 brand to offer a Vodka which would be aimed at the brands existing target market segment 18- 40 year old singles and couples, as part of a program of brand extension. The launch of a new innovative and potentially profitable branded vodka has been well researched and confirmed as a viable product to enter in the vodka market. All related business activities concerned with Dsquared2 vodka from conception to realisation and discusses and how the brand will satisfy the identified consumer need.

Vodka is becoming increasingly popular and this is attracting new comers to the market with a range of home brand and branded vodkas.  According to Keynote (2011) Spirits such as vodka command a sizable market share.  The expendable income of the target market has been noticed by several companies who have begin to modify their advertising campaigns and marketing activities to target the eighteen to forty age group. Smirnoff Have focussed their substantial marketing budget on the younger market with its ‘nightlife exchange’ campaign and more recently its dance with Madonna campaign (Wilson, 2009).  Grey Goose in another premium vodka that is looking to focus on the eighteen to forty target segments (Jefkins, 2000).  Grey Goose is a premium vodka that was originally targeted for the older drinkers and outside the target market segment (Miller, 2006).

THE PARTY

THE AD CAMPAIGN

THE AD CAMPAIGN - SS 2012

THE MAKE-UP

Dsqaured2 Make-up for the A/W 12/13 Show

At the DSquared2 show, Charlotte Tilbury went all Brigitte Bardot-meets-Lana Del Rey on the models look, complete with a mega blonde beehive, fluttery blacker-than-black lashes and an icy pink pout.Tilbury created the high school prom makeup look, while once again, it was Sam McKnight who was busy backcombing the hair to get this glorious Sixties style. 

THE SHOW