OMBA MKTG 661 Mid-term Examination Spring 2023 In the summer of 2018, Drinkworks CEO Nathaniel Davis needed to make a number of go-to-market decisions ahead of his companys upcoming product launch. With a joint venture between Keurig Dr Pepper and Anheuser-Busch InBev, Drinkworks had developed an innovative home bar system that let consumers make single-serving cocktails or beer with the push of a button. Since it was a novel product, there were no established market benchmarks for the team to follow as they prepared for the Home Bars upcoming market launch. After conducting several market research experiments, they needed to interpret the results and make several decisions around customer segmentation, value proposition, product assortment, pricing, and distribution channels. For this project, you are to act as a senior member of Nathaniel Daviss marketing team. You are to prepare a presentation to Nathaniel and Senior Management providing your analysis and recommendations to ensure a successful launch. Include the following in your presentation: Situation Analysis Reviewing all of the background detail in the case, provide a high-level summary of the key elements that are relevant for the task of launching the product in the US; this could include strengths, weaknesses, opportunities and threats Target Audience Which customer segment should be targeted and why o Study each of the market segments as identified by the company (exhibits 1-3) What are the key segmentation variables for each (demos, psychos, behavior, etc) What if any additional factors should be considered What are the best markets for the company to target (and why) Provide an evaluation of alternatives and solid rationale for your selections Based on your target audience recommendation, calculate the size of the potential market; include reference to sources (from the case) and your calculations o Review the case material about the market size (content in the case as well as the exhibits). Based on which audience(s) you recommend targeting, you can approximate the potential market size. This product isn't for everyone; who is the best audience, and what is the size of this audience. This helps identify viability of the new product launch. Value Proposition What is the value proposition of Drinkworks and how should it be positioned in the marketplace o Is this product good for consumers (and if so, in what ways) what problem(s) does it solve. o Does it have a competitive advantage o Make sure to consider all of this based on the target market, frame of reference, the point of difference, and reasons to believe o Provide insights on the product and what benefits it delivers to the customer Pricing How should the device and pods be priced o Keep in mind there are multiple revenue streams from this product, and usage frequency plays a role as well o Calculate an optimal price based on justification/rationale from the information provided in the case Consider all expenses in revenue calculations What environmental factors play a role in your decision-making? Provide calculations and substantiation for your recommendations Distribution What distribution channels should Davis select to launch Drinkworks o Consider all of the options and provide your recommendation (could be a balance of multiple) o Make sure to provide analysis and rationale for selections Advertising There is not a lot of information in the case about how to promote this product, but it does mention that the team is interested in digital marketing o What should the launch messaging be o What advertising and promotional channels do you recommend; what tactics would you recommend to reach your audience o Provide analysis and rationale for all selections Do not just rehash what is in the case. My expectation is that you will have firm recommendations based on your analysis of and insights from the case data (analysis and insights should be included in the presentation). There must be solid rationale provided for every decision you make. You are to present your plan via video. There is no minimum or maximum on the number of slides, however the presentation should be around 10 minutes (at least 7 minutes and should exceed 11). Expectation is for a formal presentation, not just a recounting of facts. You will likely want to prepare a script, to make sure that you cover all of the detail requested, but the accompanying presentation deck should be more visual and easy to follow. You also need to provide a written Executive Summary, highlighting your key recommendations and rationale. This document should not exceed two pages. Think of this as a leave behind for the actual senior-level meeting.