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Saucey Marketing Presentation

 

  1. Executive Summary

Founded by Chris Vaughn in 2013 and headquartered in Los Angeles, California, Saucey Inc. is an on-demand alcohol delivery app serving major metropolitan cities across the U.S. Delivering personable packaged alcohol, Saucey is geared towards adults, who are at least of legal drinking age, technologically app savvy, and enthusiastic alcohol drinkers unaware of a convenient way to acquire alcohol. Therefore, Saucey needs to raise brand awareness, expand servicing areas, and differentiate themselves from their competitors in order to reach its target audience. With these goals in mind, we look forward to making Saucey the go-to alcohol delivery app in the market.

  1. Situation Overview

As the current number one most used alcohol delivery app in the U.S., Saucey’s services are available in some of the country’s most populated cities; Los Angeles, San Francisco, San Diego, Sacramento, and Chicago.

The United States is a worldwide leader in alcohol consumption and production. As it stands, alcohol counts for 60% of the U.S. beverage industry’s revenue, bringing in $220 billion dollars to the market yearly. Additionally, consumption of alcohol has steadily increased in the last five years and small beer producers have taken market share from large beer producers.

  1. Goal

With the exposure of the company’s name and message, Saucey can meet their ultimate goal of raising brand awareness within the alcohol industry. We will use analytics to track mentions, site traffic, and course, app use to evaluate increased brand awareness

We have set the following objectives to achieve the ultimate goal:

  • Company’s Internal Objective. The key internal objective is to improve marketing methods to effectively expose the Saucey app as an easy and reliable alcohol delivery service. By establishing digital marketing methods, we will increase brand recognition with the target audience and vertical and horizontal business collaborators.
  • Customer Objective. A key customer objective is to provide superior customer service to every app user. By exceeding customer expectations, we intend to stimulate interest and create positive word-of-mouth.
  • Collaborator Objective. A key collaborator objective is to build relationships with local breweries and wineries. By enticing local alcohol tasting rooms with unique incentives, Saucey looks to position itself as the courier of craft beers and local wine.
  • Competitor Objective. The competitor objective is to further differentiate the company’s product offering and create barriers to entry. By establishing relationships with local businesses and offering local beers and wines, we will further breakaway Saucey from its competitors.

  1. Strategy

4.1. Target Market

4.1.1 Customers

The ideal customer of the alcohol delivery app own a smartphone, are app savvy, and drink alcohol. According to the Pew Research Center, 90% of American adults between the age of 21 and 54 own a mobile phone. This age group consists of 145 million people, although, only 64% of the group actually own a smartphone, hence narrowing the target market to 80 million people. With this in mind, American app users spend 89% of their mobile time on apps, with adults between the age of 25 and 34 considered heavy users of mobile apps. Furthermore, alcohol consumption among 66% of American’s average about four drinks a week, according to Gallup Poll. Drinking is highest among upper-income and highly educated Americans.

4.1.2 Collaborators

Collaborators of the app are complimentary products and apps. Complimentary products of the app are alcohol related accessories, snacks, and cigarettes. Currently, the company offers the Corkcicle Chillsner, a bottle length cork beer-chiller, snacks, such as Kettle’s, Ben & Jerry’s, and Cliff, and cigars to complement their service while staying true to the brand name. The company will continue to expand snack offerings and partner with products to enhance the app experience. Additionally, the company will collaborate with apps that complement the brand, such as, Airbnb, Blue Apron, and TapHunter. Through this avenue, the company can reach people who are readily willing to purchase items through mobile apps.

4.1.3 Competitors

Other active alcohol delivery apps include Drinkfly, Klink, Thirstie, MiniBar, and Drizly. Similar to Saucey, these companies deliver liquor and alcohol, while a few have expanded into major cities. An advantage of Saucey is it’s established name, it is the first major alcohol delivery app in the market and many of its competitors entered a year after the company launched. Another advantage for the company is the ability to deliver alcohol in a shorter period of time than its competitors. This is due to well-established relationships with liquor stores in their servicing areas. The company also differentiates their service by not requiring a minimum amount per order. However, a major threat Saucey is experiencing is expansion from its competitors. A few have expanded into major cities Saucey currently doesn’t service, but many are not far behind from expanding into its territory.

4.1.4 Company

By performing a SWOT analysis of Saucey, the company’s greatest strength is their establishment in multiple metropolitan areas. While many competitors are struggling to expand into multiple geographic areas, the company successfully operates in six major metropolitan cities, putting it ahead of the pack and despite how easy current or potential competitors can imitate the concept and service. Although it faces several rival apps who offer the same service, the company can gain a competitive edge if it continues expanding into multiple geographic areas, widening their product selection, and increasing brand awareness. This will create a high barrier to entry for their competitors. Other threats the company faces are alcohol regulations that can vary from city to city.

Strengths

  • Offers innovative and beneficial service
  • In multiple markets
  • Partners with alcohol retailers allowing them to offer competitively priced products
  • Low operational cost
  • Involved in charitable activities  
Weakness

  • Easily imitated service
  • One hour of wait time
  • Drinks are more expensive compared to buying them yourself
  • Brand is unrecognized
Opportunities

  • Expand into more markets
  • Hire more couriers for faster and efficient delivery
  • Include limited edition beverages
  • Raise brand awareness
Threats

  • Competitor expansion
  • Idea can be easily imitated
  • Legal issues such as ID checks

4.1.5 Context

Using a PEST analysis, we looked at the political, economic, social, and technological limitations and benefits Saucey currently encounters. Regulatory issues the company faces are strict selling laws, regulations, and heavy taxes. One economic factor currently benefiting the company is the growth of personal expenditure. A sociocultural factor benefiting the app is, according to Gallup Poll, 67% percent of women between the ages of 18 and 49 years old report they drink alcohol. A technological factor benefiting the app is the growth of mobile users and internet access. This is important as Saucey can only be accessed by the internet on a computer or smartphone. A line chart of the growing numbers of global mobile and desktop users is shown in Graph 1. Additionally, according to IBISWorld, online sales of alcohol have increased enormously in the last few years with expected sales to continue to grow. Annual revenue growth of online alcohol sales is expected to jump from 11.1% to 14.2% from 2015 to 2020.

Graph 1

number-of-global-users-screenshot

4.2 Value Proposition

4.2.1 Customer Value

Saucey provides quick and reliable alcohol delivery service for people who want to obtain easily.

  • Efficient and reliable service – Saucey uses analytics and logistics to efficiently deliver alcohol to users. The assigned dispatcher directs the closest couriers to the customers.
  • Cool promotions – Saucey attaches a customized tag per order with special promotional codes. Daily and seasonal promotions are also available to get users to come back.
  • Fast – Saucey guarantees orders will be delivered within 20 to 40 minutes
  • Ease of use – Saucey’s user-friendly website and the app provide users with a smooth process till checkout. Text messaging is also used to communicate with customers during the waiting period of their order. Refer to Exhibit 1 and 2 for Saucey’s user-friendly app.
  • A wide variety of choices – Saucey carries wines, beers, spirits, tobacco and different alcohol bundles to create cocktails, as well as, snacks for the hungry drinker.
  • Trusted and knowledgeable employees – Couriers go through screenings and training to become a Saucey courier. They are trained to provide customers with useful information and tips on making drinks if necessary.
  • Safety – With Saucey the danger of drinking under the influence is reduced.  

4.2.2 Collaborator Value

Saucey provides another form of revenue to collaborators and distributors of the brand.

  • Brings additional revenue and customers – Saucey brings additional revenue and customers to partnered local liquor stores and collaborators.
  • Better organized inventory – Saucey creates a database of product inventory for each distribution centers known as partnered liquor stores. This information is passed on to the store, which allows them to have a better inventory monitoring system.

4.2.3 Company Value

Saucey wants to be the company to change the alcohol industry by adding a twist of technology into the mix.

  • Company that changes the alcohol industry – By incorporating technology to the alcohol industry, Saucey wants to change the way people drink by being delivering alcohol  
  • Charitable connections – Saucey donates a percentage of their profit to charity water, a company who delivers clean water to developing countries.
  • Safety and secure networks – Saucey makes every effort to follow state laws. When handing over the alcohol to customers, the courier first scans the customer’s state ID to verify the credit card matches the one on file. Refer to Exhibit 3.

  1. Tactics

5.1 Product

The Saucey app is a fast, easy, alcohol delivery service offering beer, wine, and spirits promised to be delivered in under an hour. Specifically, cocktails, red wine, white wine, beer, whiskey, scotch, vodka, rum, tequila, gin, champagne, and mixers. The company’s mixed drinks and cocktails come packaged with the ingredients to make the drinks at home. In addition, tobacco (cigars and cigarettes) and snacks like cookies, chips, and ice cream are also offered.

5.4 Pricing

Saucey uses a simple pricing module which is the cost of the item(s), tax and delivery. In the Los Angeles area, cocktail drinks range from $31 margaritas to $77 Irish Car Bombs. Bottles of wine are slightly cheaper, mainly ranging from $12 to $30, and some up to $78. Cases of beer start at $12 for Shock Top, then go up to $25 for a 12-pack of Stella Artois.

5.5 Incentives

Saucey uses discounts to incentivize customers. Promotional codes are given to customers when the app is downloaded. Users will then receive a text containing a refer-a-friend promotional code to be used on their next purchase (Refer to Exhibit 4 for a screenshot of the promo). The other method, which is only for first-time users, is to ask a Saucey courier for a promo code. First-time users of the app will receive $10 dollars of their purchase.

5.6 Communication

5.6.1 Consumer Communication

Consumers are able to learn about the benefits, features, updates, and testimonials of the app from Saucey in three ways (1) directly from the company, (2) from business collaborators, and (3) social media.

  • Media. Saucey uses a pull-strategy to communicate upcoming events, testimonials from satisfied customers, and limited-time deals such as promotional codes and free merchandise. The company releases this information through its own website, social media accounts, and if collaborators are involved, through collaborator social media accounts. The company will continue this method with new collaborators, and new social media accounts, while keeping in line with the company’s brand and image.
  • Message. Saucey’s message will concentrate on the ease and reliability of using the delivery app service, while also providing a local service for its capabilities to deliver local beer.
  • Slogan. Saucey’s slogan, “It’s always 5 PM,” communicates alcohol is its business and can be accessed at any time of day.

5.6.2 Collaborator Communication

Retailers can learn about collaborating with Saucey through marketing and communication.

  • Media. Saucey advertises on its website about opportunities to become a company retailer. They actively seek partnerships with liquor stores and use individual targeting to communicate its message of being a distributor to those businesses.
  • Message. Saucey’s message concentrates on the potential for a retailer to grow their business and gain new customers by becoming a partner. They focus on the ability to increase the retailer’s revenue by becoming an additional distributor for the app.

5.7 Distribution

The Saucey app is available on Apple iTunes and Android Google Play, where it can be downloaded for free by iPad, iPhone, iPod Touch, or Android smartphone users. When the user is ready to purchase, Saucey plays the role of a distributor for their selected retailers. Since Saucey’s sole purpose is to deliver alcohol, the consumer does not directly purchase beers and cocktails from Saucey, but from alcohol retailers. Saucey acts as an additional indirect channel of distribution for those retailers. The distribution process continues with Saucey’s delivery service. Drivers are hired using the company’s website, they are fully background-checked and trained to deliver alcohol from the retailer to the consumer.

  1. Control

7.1 Performance Evaluation

Saucey constantly monitors feedback provided through its website and app to ensure a great customer experience. If a customer is experiencing issues with an order, the customer can message the company through its website or app and a support team representative will contact them back in a timely manner. To continue providing great customer service, it is important the company considers ratings on popular review websites, such as Yelp. In the Los Angeles area, the company is currently rated four out of five stars based on 22 reviews. These reviews from customers are a great resource to understand which areas the company is doing well in and what it needs to work on. Additionally, Yelp users have also rated the company on pricing, giving it two out of four dollar signs which suggest customers in the area find the pricing not too expensive. Moreover, on iTunes, the current version of the app is rated four in a half out of five stars based on 14 reviews. As mentioned earlier, this is great information to understand issues with the app.

In addition to tracking reviews,  the company must track sales to monitor performance. As a newer business in the growth stage, it is important sales continue to increase for it to become profitable. To monitor sales, the company must track the following in every city they operate.

  • Number of downloads of the Saucey app in a given period
  • Number of actual customers compared to number of downloads in a given period
  • Average sales per customer order
  • Number of returning customers in a given period (% of returning customers)
  • Number of orders in a given period compared to number of orders of other local app-based competitors

7.2 Environmental Analysis

Saucey continually monitors changes in its environment, including:

  • Changes in customer preferences
  • Changes in the value the company offers to its collaborators (liquor retailers)
  • Changes in the political, economic, social, technological, and legal context the company does business in
  • Changes in the competitive environment

In order to monitor the environment, Saucey participates in the following activities:

  • Utilize AppBoy, a conversion tracking app, to measure consumer engagement and improve campaign effectiveness
  • Examine consumer, courier, and retailer reviews about their experience with the app
  • Analyze competitor performance
  • Review professional publications regarding trends of the alcohol delivery industry
  • Conduct research new developments of mobile app and communication technology (for dispatchers, drivers, and consumers)

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EXHIBITS

Exhibit 1: The text message sent to customers after an order is placed on the app.

saucey-confirmation-order-text

Exhibit 2: User-friendly Saucey App.

 its-a-gift-saucey-screenshot            

Exhibit 3: Saucey app verifying identification card.

invite-friends-saucey-screenshot

Exhibit 4: Suacey’s promo code sent to users after order is placed.

identification-card-saucey-screenshot
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WORKS CITED

Ellingson, Annlee. ‘Q&A: Saucey Founder Chris Vaughn Talks About The Explosive Growth Of His ‘Uber For Alcohol’ – L.A. Biz’. L.A. Biz. N.p., 2015. Web. 5 Oct. 2014.

Ferenstein, Greg. ‘Drunk Driving Is Down In California (Thanks To Uber)’. The Daily Signal. N.p., 2015. Web. 1 Oct. 2015.

Flynn, Kerry. ‘Drink Alcohol, Donate Clean Water: How Saucey Is Standing Out In ‘Uber For X’ Model’. Forbes.com. N.p., 2015. Web. 2 Oct. 2015.

IBISWorld.com ‘Online Alcohol Industry’ N.p. 2015 Web.’ 2 Nov. 2015.

Lella, Adam. ’25-34 Year-Olds Are The Heaviest Mobile App Users In U.S.’. comScore, Inc. N.p., 2014. Web. 2 Oct. 2014.

Pew Research Center: Internet, Science & Tech,. ‘Device Ownership Over Time’. N.p., 2013. Web. 2 Oct. 2015.

Prnewswire.com,. ‘Appboy Launches Conversion Tracking To Measure And Improve Campaign Effectiveness’. N.p., 2015. Web. 9 Dec. 2015.

Samuely, Alex. ‘Saucey Prompts Higher In-App Sales With Targeted Email Campaign – Mobile Commerce Daily – Advertising’. Mobilecommercedaily.com. N.p., 2015. Web. 1 Oct. 2015.

Saucey,. ‘Become A Retailer — Saucey’. N.p., 2015. Web. 30 Sept. 2015.

Smart Insights,. ‘Mobile Marketing Statistics 2015’. N.p., 2015. Web. 9 Dec. 2015.

Wong, Jenn. 2015. Web. 1 Oct. 2015.

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