The Brazillian cachaça Pitu, symbolized by the red Pitú on the label (like lobster), Pitú is one of the most recognized brands of cachaça in the world, the No. 2 cachaça maker. Made from fresh cut sugar cane, cachaça Pitu it is known for superb quality, and how well it blends with fresh fruit and juice. Manufactured in the State of Pernambuco, northeast Brazil, Pitu is a 75-year old family business, with a tradition in the production of cachaça, which can produce up to 15 million bottles annually (Ballve, 2002).
Exports of the clear liquor are fueled by the popularity of the caipirinha, a drink mixing crushed ice, lime, sugar and silver cachaça, a sweet-and-sour concoction downed by the hip in bars from Berlin to New York. Cachaça makers, who already enjoy a half-billion-dollar annual domestic business in Brazil, now see an opportunity to increase consumption of the drink in U.S. because of the upcoming events in Brazil (World Cup in 2014 and the Olympics in 2016, O’Conor and Barnes, 2012). Additionally, a recent development has resulted in the U.S. officially recognizing the sugar-cane spirit cachaça -- used to make caipirinha cocktails -- as a genuine Brazilian product, which means it can be sold in American liquor stores as "cachaça" and not just "Brazilian rum." (Phillips, 2012). This is a victory for cachaça because even though cachaça is a close relative to rum, rum is derived from molasses, a byproduct of sugar refineries, while cachaça is made from pure sugarcane juice. This differentiation can prove to be important in the marketing of the product.
Pitu also faces some competition in U.S. where there are now some 20 cachaça brands (Perlroth, 2010). Leblon cachaça, for instance, with Bacardi’s involvement as a strategic partner and investor now lead the Caipirinha trend in the United States. Another strong competitor is the 51 cachaça which is actually the cheapest alternative, or even Cabana Cachaça, which manufactures and imports high-end cachaça.
Given this scenario Pitu has the advantage successful distribution agreements established in U.S., allowing them to be available in most of the liquor stores and bars. However, their challenge now is not only increase exports to U.S, which today represent about 1% of the production (Ballve, 2002). Also, change their image as “the go-to brand for broke students looking to make cheap caipirinhas” to elevate the Brazilian liquor to a place on the global bar shelf next to Scotch whisky and Mexican tequila.
Media Combination that would be effective for the target market and product.
Cachaça Pitu advertisements have been available in print media in the U.S., for example, in the Portuguese newspapers for NYC's Brazilian community They also have exposure on the internet with their own web site and also some videos. In order to create awareness of Cachaça Pitu, it is recommended to use three different medias to provide a coverage of at least 80% of our target market over a period of six months. The goal is to extend media coverage to as many of the members of the target market audience as possible while minimizing the amount of waste coverage.
Among the wide variety of media available it is recommended are going to use print media magazine, interactive media Internet and support media in-store. For print media it is recommended choose to use magazines because they provide better segmentation potential thus it is recommended can focus our campaign to reach our specific target market while giving a high level of information about the product (Belch, & Belch, 2012). Also magazines allow for high quality reproduction which combined with some creativity it is recommended would give the ability to explore the colors of Brazil as well as the images. Another positive feature of magazines is the prestige the cachaça can gain from advertising in publications with a favorable image. For example Esquire covers men’s fashion in a very favorable environment, cachaça Pitu advertising in this magazine could enhance the prestige of the product line. Also, in the Men's Health magazine it is recommended can reach men in their early thirties a demographic which is a very high consumer of alcohol. In the Sports Illustrated, it is recommended can take advantage of the fact that most people drink when they watch a game to advertise our product to our target market. Even though the cost to advertising in a magazine can be high and they only have a limited reach, the magazine will give Pitu the ability to engage readers, hold their attention and expose them to cachaça.
Nowadays with smartphones, tablets and other devices, it is indispensable to develop and maintain a good web site. Pitu should use some banners and contextual ads to direct people to the web site. The web site will provide interactive activities that go beyond just information. It is necessary to create a long term relationship with the consumers to establish a brand image for the product and support sales (Belch, & Belch, 2012). The web site will give ideas how to use cachaça and give incentives for party with cachaça. By clicking in one of the ads the consumer can access the address of the shops which sell Pitu. The site also will give tips on how to create a party, games to play with cachaça, and information from experts about the quality of the product. The site will be designed to offer very useful information, as well as samples for people older than 21 years old.
Finally the media in-store is going to support our campaign at the place which our customers are going to buy. Since the customer is already in a liquor store, that is where the decision is made, therefore it is recommended to reach the target market at the point of the purchase, providing additional product information while reducing their own efforts (Belch, & Belch, 2012). For instance the in-store ads would be aisle displays, store leaflets, shopping bag etc.
Media plan schedule to leverage the media.
The media plan schedule to leverage the print media magazine, interactive media Internet and support media in-store recommended is based on the pulsing method. In the pulsing strategy, continuous exposure is maintained, but certain at times promotional efforts are stepped up (Belch, & Belch, 2012). Since our product is not seasonal, our advertising would continue throughout the year but maybe increase at holiday periods such as Mardi Gras Memorial Day, Labor Day, or Fourth of July and increase in a sports game periods such as Super Bowl and NBA Finals.
The table 3.1 is a six month mockup of a media schedule covering 3 magazines publications--the prices are fictitious, also include estimated page size (small, medium, big).
TABLE 3.1: MAGAZINE SCHEDULE PLAN
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The media schedule during six months for the in-store ads and for the internet interactive activities are going to follow the same schedule of promotional efforts:
FIGURE 3.2: IN-STORE and INTERNET ACTIVITIES SCHEDULE
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Since achieving awareness requires reach, which is exposing potential buyers to the message (Belch, & Belch, 2012). Pitu cachaça needs a very high level of reach, since the objective is to make all potential buyers aware and prepare to adopt the product. The objective of the schedule plan is to reach a larger number of the target market, in attempt to make them learn about cachaça, try it, and develop favorable attitude towards the Pitu brand.
The problem arises because there is no known way to determining how much reach is required to achieve the levels of awareness, attitude change, buying intentions nor can it is recommended be sure an ad placed in a vehicle will actually reach the intended audience (Belch, & Belch, 2012). This leads to a question, what frequency of exposure is necessary? Based on that information the schedule plan maintain continuously the frequency of promotional efforts in every media choose, while stepped up in certain times. The objective is to have the total market audience reached by using three different magazines even if some people see the ad twice.
Because the cachaça Pitu needs to develop a new attitude towards the brand only awareness in as many people as possible is not enough. Pitu cachaça, needs to create a demand for cachaça, especially by taking advantage of the popularity of caipirinha drink they can teach people how to properly make the drink. Thus at the same time that awareness is created a certain level of frequency to achieve effective reach is necessary to give time for the consumer to understand how to use, where it came from, and why it is cool to drink caipirinha with Pitu cachaça.
The schedule of the media in-store will support the sales and will make sure that the target market gets exposure to the message as close as possible to when they are going to make the purchase, therefore the media in-store will continue as long as possible.
Finally, in this plan the budget was not consider, thus in real situations the budget would be one of limitations which should be consider in first place before establishing any plan.
REFERENCES
Ballve, Marcelo (2002). One Part Cachaça, Two Parts Marketing. Latin Trade (English), 10870857, Aug2002, Vol. 10, Issue 8
Belch, G., & Belch, M. (2012). Advertising and promotion: An integrated marketing communications perspective (9th ed.). Boston: McGraw-Hill/Irwin.
O’Conor, Erika and Barnes, Taylor (2012) Slum Dwellers Are Defying Brazil’s Grand Design for Olympics. A version of this article appeared in print on March 5, 2012, on page A1. Retrieved at may 2012 from: http://www.nytimes.com/2012/03/05/world/americas/brazil-faces-obstacles-in- preparations-for-rio-olympics.html?pagewanted=all
Phillips, Dom (2012). Obama and Dilma Agree on Bourbon and Cachaça, but Not Much Else. Apr 12, 2012 11:06 AM GMT-0300. Retrieved at may 2012 from: http://www.bloomberg.com/news/2012-04-12/obama-and-dilma-agree-on-bourbon- and-cachaça-but-not-much-else.html
Perlroth, Nicole (2010). Sobriety Check. 03.04.10, 06:00 PM EST. Retrieved at may 2012 from: http://www.forbes.com/2010/03/04/brazil-cachaça-bacardi-cabana-leadership- second-acts-anttila.html
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