Vlad I saw your email yesterday and I went through your email and attachment you sent to me. I got the idea that you want to sell wines and promote ports in Rwanda which is imported from Portugal. Major wine importer in the Rwanda is Hafri limited and as you told me Hafri limited as recently imported mateus and sandeman from Portugal and you want to use mateus as a bait to promote sandeman in Kigali, Rwanda. I believe that this is a good idea but there some errors in promotion table you have sent me. Some errors in promotion table are: I think you’re not going to sell cartons of Mateus Tempran rose, Aragones rose, and Shiraz rose and plus give away 6 bottles of these wine and also carton of sandeman for free to the customer because this will increase your promotion cost and expense. As a marketing analyst and researcher I would recommend you to use carton of Mateus original and Bianco as a promotion and give away free sandeman carton of 750ml or 60ml sample to customer accordingly. You can sale Mateus Tempran rose, Aragones rose, and Shiraz rose on selling basis. That will make your promotion cost break even. According to my survey the population of the Kigali is more than 1 million and Kigali is the largest city of Rwanda. People of Rwanda do not have any knowledge of wines and port.
As this country do not consume wine or port at large scale compared to European and Americans. These two products need some marketing strategies which I can help you in. We need to develop promotion plan and pricing strategy so that these products can be successful in the Rwanda market. Vlad here is my plan to promote and increase wine and port drinking people in Kigali you need to make promotion of ports by targeting target market in Kigali. First of all we need to create image in the mind of Rwandese. To do that you can promote and sell wine through three different channels of distribution. Vlad here is the three channel of distribution in Kigali: Bars and Restaurant, Hotels, and Supermarket chains/wine supplier. These channels can increase our product image in Kigali. Here is the first channel of distribution Bar and Restaurant: As per my survey there are high end Bar and Restaurant in the Kigali which can buy and sell and also promote these wine. To do so there are few restaurants like Sol e Luna Italian Restaurant, Blues café, Le Chateau Restaurant, Heaven Restaurant, etc.
These restaurants are high end and that can make your plan successful. Vlad here are promotion strategies to be use in bars and restaurant hosting wine/port tasting events for these wines to bring in customers so that you can sell more mateus carton and promote sandeman with it. A part from these events we can also give customer a complimentary two glass of sandeman when customer buys one bottle of mateus wine in bars and restaurant. There is an alternative plan which I want to convey to you which is we can organize a wine dinner in a high end and most famous restaurant where the food menu will be decided by the Chef and we can pair the wine with each course accordingly. There will be special dishes with which a Mateus tempran rose will be promoted along with Sandeman port. Those dishes will be on a higher price so that we can cover the cost of the wine. We can communicate and come up with a deal with the establishment where the ratios will 70/30 of food and wine accordingly. I am very much sure that I can fix this promotion deal. All the paired wines will be of 90 ml. Also, a special wine list will be made in which we can sell Mateus wines and sampling of Sandeman can be done. The expensive wine will be on selling basis. Here is the second channel of distribution Hotel:
As per my survey main hotels available in Kigali are Kigali Serena hotel, Hotel Des Mille Colines, The Manor Hotel, and LeMigo Hotel. These hotels can help you in promoting your wines in Kigali. Promotion strategies to apply in hotel are by selling mateus carton and giving away 4 bottles of Sandeman free so that the hotel can sell Mateus wines and in the same time they can promote a glass of Sandeman to each and every guest who is keen on having wine at the hotel. The promotion glass should not be more than 90ml. This can make advertisement of mateus wine and sandeman port simultaneously. Here is the Third channel of distribution Supermarket and Wine stores: As per my survey there are two big supermarkets present in Kigali, Nakumatt Supermarket and Simba Supermarket which help you promote and advertise in Kigali. During the promotion period in supermarkets/stores you can use 60 ml mini-bottle of sandeman with one bottle of mateus wine to increase awareness of sandeman among common people. We can also assign the sales executive to give sampling of wine to the potential customers. The opportunity for these two products is huge in Kigali.
Pricing and promotion cost:
Item description| Net content| Bottles per carton| Rwanda francs selling price per carton| Rwanda francs selling price per bottle| PromotionPricing for mateus for 10 bottles| Mateus original| 750 ml| 12| 81600| 6800| 68000|
Mateus Bianco| 750 ml| 12| 81600| 6800| 68000|
Mateus Tempran rose| 750 ml| 6| 40800| 6800| On selling basis | Mateus Aragones rose| 750 ml| 6| 40800| 6800| On Selling basis| Mateus shiraz rose| 750 ml| 6| 40800| 6800| On selling basis| Sandeman white| 750/90 ml| 6/12| 69000/11040| 11500/920| Free| Sandeman ruby| 750/90 ml| 6/12| 69000/11040| 11500/920| Free| Sandeman tawny| 750/90 ml| 6/12| 69000/11040| 11500/920| Free|
* Note :
* For Mateus Tempran rose: Suppose if a dish which is promoting mateus Tempran rose and its price is francs 6800 then 30% of the total revenue will be impose for the wine cost and rest 70% is on the food revenue. In this way we can sell and promote the wine and at the same time we can save the promotion cost. * On selling basis: The sales executive will carry the wine bottles to the restaurant and the bottles which are not been sold will be back to the warehouse.