BACKGROUND

Elephant is a company dedicated to the sale and distribution of wine with

Designation of Origin Ribera del Duero. It was founded in 1999 and since then
its sales have been increasing.

Elephant (fictitious company), has a high quality product, has won some prizes
and aims to become a reference for the younger consumers.

The company has created an online sales platform and proposes a new sales
strategy, based on the online channel to reach a wider market share and
surpass the reach of its stores to the virtual experience.

DEVELOP

Preparation of the Marketing Plan for Elephant’s proposal, presenting the

strategy and actions that will form the implementation route of the online
business in the Spanish market.

1. Analysis of the external situation.

 It will be necessary to research the Spanish market in relation to the wine
sector and an analysis of its competence.
 In addition, a study of electronic commerce in Spain will be necessary.

Although many vineyards are low yielding, Spain is a large country

geographically and has more acreage under grape cultivation than any other
country in the world. In terms of global wine production, it is the third largest.

Castilla-La Mancha has nearly half of the country's planted acreage, followed by
Extremadura, Valencia, Castilla-Leon, Catalonia, Murcia, and Rioja. About two-
thirds of all wines produced in Spain are table wines, with the remaining one-
third consisting of high-quality wines produced according to the European
model.

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Due to the high volume of wine production, competition is a major external issue
for the region. The presence of small, medium, and large-scale wine production
in the region increases competition significantly. Spain is also close to Italy and
France, both of which are major wine producers in the region. As a result,
unless Elephant can ensure high-quality products and explore new markets for
them, competition in their current regions may severely stifle their operations.

Red wines are slightly more popular than white wines in terms of volume, but
they are far more noticeable. Arien, Tempranillo, Bobal, Garnacha, Monastrell,
Pardina, Macabeo, and Palomino are the most widely planted varietals.
Although excellent wines are produced throughout Spain, some of the most
well-known regions include Rioja for Tempranillo-based wines, Jerez for Sherry,
the Penedes for Cava, Ribera del Duero for Tempranillo blends, and Priorat for
Garnacha-based wines (Grenache). Spain's infrastructure is among the best in
the world when it comes to business expansion and growth, with two of
Europe's ten largest airports located in Madrid and Barcelona. The country has
47 airports that serve 250 airlines and one of the continent's largest railway
networks. Spain has the most ratified environmental agreements within the
European Union (EU). Portfolio investment has been a major source of foreign
direct investment (FDI) inflow into the country.

Spain's political culture includes stringent deficit-reduction policies. While

tensions have been rising due to Rajoy's government's increased cuts in health
care and education budgets, the EU has sanctioned EUR 100 billion as a
bailout package. Limited competition has been introduced in the energy,
electricity, and telecom markets, indicating that liberalization is on track. Interest
rates on corporate loans are high in the Eurozone, causing corporate sector
instability.

In terms of social policy, the government began reforming the rigid labor market
in order to make it more flexible and cost competitive. The GINI coefficient (a
measure of income inequality) of household disposable income was.35 in 2012,
making it one of the highest in the OECD. In terms of technology, Spain has one

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of Europe's largest mobile markets. Its 4G networks are well-established. The
low level of innovation in Spain is reflected in the low number of patents
registered (711) in 2014, compared to 6083 and 15498 patents respectively in
France and Germany.

According to the findings, Spain has a high rate of unemployment, which has a
negative impact on economic growth. Despite its flaws, Spain has a number of
strong points:
 A good geographical location.
 FDI is attracted by the strategic location.
 A healthy tourism industry (ranked as 2nd largest earner worldwide after
the US).
After the highest-volume year in a decade in 2018, world wine production fell by
more than 10% in 2019. Every major wine producer saw a decrease in volume
in 2019 compared to 2018, with Italy and France down 15% and Spain down
nearly 25%. Only Portugal (ten percent), Russia (nine percent), and South
Africa (two percent) saw an increase from the previous year. Nonetheless, 2018
was not as bad as it sounds because it was an unusual year. World production
was down by just over 3% compared to the previous 5-year average, and Italy's
volume was down by about 4% in 2019. Over the last five years, Chile has seen
the most growth among the major producers, whereas China has seen a sharp
decline as a greater emphasis on quality has taken a lot of production off the
market.

Electronic Commerce in Spain

Following WWII, and particularly after dictator Francisco Franco's death in 1975,
Spain quickly modernized economically. However, the government has had to
enact a number of austerity measures in recent years. Spain now has one of
Europe's highest unemployment rates as a result of a large budget deficit that
had to be reduced. Spain has a population of over 47.4 million people, making it
the world's ninth most populous country. Between the ages of 25 and 54,
slightly more than 46% of the Spanish population lives. More than 28 million
Spaniards have access to the internet, according to 2011 statistics.

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Ecommerce Customers in Spain
In 2019, Spain had approximately 26.2 million ecommerce users. According to a
report published by Ecommerce Europe in 2018, online consumers in Spain
have a clear preference when it comes to paying for products purchased online.
PayPal or a similar payment method is the most popular (77 percent).

Debit and credit cards (50 percent), cash on delivery (18 percent), and invoices
in arrears are the next most popular payment methods (6 percent). According to
IAB Spain data, 44 percent of Spanish Internet users aged 16 to 55 buy online
on a regular basis. The following product categories accounted for the majority
of their purchases: fashion (65%), travel tickets (59%), consumer electronics
(55%), tickets (54%), and books & CDs (54%). (46 percent). According to data
from the National Observatory for Telecommunications, 18.6 million Spaniards
purchased something online in 2014.

According to data from the Instituo Nacional de Estadictica, roughly 22% of the
Spanish population purchased something in the three months leading up to a
survey in 2012. In the previous year, 10.7 million Spaniards (31 percent of the
population aged 16 to 74) ordered something online.

The Ecommerce Market in Spain

Spain was hit by a major financial crisis, but it had little impact on the
ecommerce sector. In fact, the ecommerce industry was one of the few sectors
to grow by double digits in 2011 and 2012, a trend that continued in subsequent
years. According to the Ecommerce Foundation, ecommerce in Spain was
worth nearly 28 billion euros in 2018.

Many Spaniards shop on international websites. However, in recent years, the

total amount of purchases made on foreign online stores has been lower than
on domestic sites. Ecommerce isn't that big in Spain in terms of percentages. It
only accounts for 3% of total retail sales.

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2. Analysis of the internal situation.
 Identify the target audience and the different customer segments and
their positioning.
 SWOT analysis to identify the weaknesses and strengths of the
company, and the opportunities and threats from abroad.

The National Statistics Institute, the largest Spanish-age population is around

38 million people, with about 60% of them being wine drinkers. According to
EAE Business School studies, ordinary consumers account for 80% of this
amount.

According to research, red wine is preferred by nearly 73 percent of Spanish

wine drinkers, followed by white wine at 13 percent and rose wine at 6.4
percent. The difference in consumption between men and women is 57 percent
for males and 43 percent for females, with 26 percent aged 18 to 34, 36 percent
aged 35 to 54, and the remaining 38 percent aged over 54.

Given the foregoing data and the Project's primary goal of targeting a young
audience, the following has been set for Elephant:
Men and women between the ages of 25 and 45 with a revenue
percentage that was somewhere between low and high. They enjoy
experimenting not only with traditional wines but also with the most
recent trends in order to expand their wine culture. They consider wine to
be one of their favorite beverages for both meals and leisure. They prefer
red wines because they are considered an upgrade, and they consider
the price because it demonstrates a level of trust in the product's quality.
These individuals gather information from wine-related magazines and
web pages in order to use it in their conversations and when selecting
wines for events or consumption.
In terms of the digital environment, the chosen group prefers to obtain
information and provide feedback on their experiences through social
media platforms such as Facebook, Instagram, and Twitter. This will be
ideal for Elephant's marketing strategy.

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3. Specify the goals aligned with the business proposal to expand to a new sales
channel.

In most cases, developing and implementing a solid strategy plan is the most
important activity a company can undertake. For the organization to achieve
consistent revenue streams, such a plan is also necessary. The company has
developed an online sales platform and proposes a new sales strategy based
on the online channel in order to expand its market share and expand its virtual
experience beyond the reach of its physical stores.

Elephant used to be completely reliant on the traditional sales system of using

retail stores. However, the company will need to invest in additional human
resources to oversee the additional distribution requirements that will be

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 required as a result of the new online platform. The proposal to expand into new
sales channels aims to accomplish a number of objectives, including:
 Develop a campaign that stands out from the competition in terms of
innovation and customer service.
 For the coming year, increase existing customer profit by 15%.
 During the year, increase market share by 10%.
 Create a clear publication schedule for our website that focuses on
content to increase engagement.
 To promote the flavors and online sales, increase the number of product
testing opportunities in chain stores for both current and potential
customers.
 A 6-month campaign to increase website traffic using Google Ads,
Facebook Instagram, and other online platforms.

4. Prepare and select the strategies that will serve as a route for implementing
an online business in the market. You must include the different tactics of the
Marketing-Mix and concoct the action plan to follow.

Customers are primarily concerned with a product's ability to reach them and
meet their various needs. Given the rational nature of customers, it's also
crucial to think about the prices that are set for the products. Elephant's target
marketing strategies for launching the online business will be centered on
ensuring that each of the four Ps contributes to the perfect marketing mix.
Customers have come to expect high-quality products from the company. As a
result, the company's quality will be a selling point. Customers can make
purchases and receive their orders from the comfort of their own homes thanks
to the platform. Elephant intends to improve distribution systems by
implementing the following measures.

Product
Due to the quality of our product has already been established, there will be no
changes to the manufacturing process or the taste of our red and white wines.
Instead, we will concentrate solely on our packaging and advertising in order to

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be recognized by the end customer as a wise choice that is environmentally
conscious. Customers who spend more than 100 euros will receive a pair of
limited-edition glasses. The company's logo and slogan will be engraved on
these glasses.
Price
The price will be calculated based on the quantity ordered. There will be a
standard price per bottle based on the age and type of wine, but discounts will
be available. If you buy in bulk, you'll get a discount on shipping, depending on
your location and delivery size. Customers will receive a bottle of red wine with
the purchase of two bottles of white wines and a bottle of white wine with the
purchase of two bottles of red wines at no additional cost during the first month
of our relaunch of the online store. We will have a 10% reduction in red wines in
the second month.
Promotion
We will create a special, trained team of online marketers to reach the target
audience because the main source of promotion in our campaign will be social
networks, particularly Facebook and Instagram, which will focus directly on
online sales. They will run social media campaigns offering discounts,
sweepstakes, and travel, as well as small prizes and discounts for customers
who post photos of our wines on social media and tag the company. Special
hashtags would be created as well. Influencers will also be used to promote our
products by posting pictures of them using them.

Ultimately, we'll take part in large-scale events as organizers or sponsors.

Fashion shows, concerts, and stand-up comedy are examples of these types of
events. Our online store will also be promoted on billboards, buses, and trucks.
Place
Given the foregoing, our website will serve as the primary sales and purchasing
location. We'll create a new page that allows for easy navigation and secure
shopping. We will include weekly articles about wine consumption, history, tips,
and preparations to increase traffic. A competition with a prize will be held to
elect the winner as the picture on YouTube to motivate company employees.
This person will produce weekly high-quality videos that show our vineyards,

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 factories, employees at work, serving tips for our wines, and various situations
that engage our target audience.

5. Propose a detailed schedule and timing for each action.

Elephant Marketing Schedule

Action Jun Jul Aug Sep Oct Nov De Jan Feb Mar
t c
Customized wine glass
promotion for delivery with
orders exceeding €100

Employee Competition
Discount Offers
Maintenance of Webpage
Online Campaign
Travel raffles
Newsletter (Weekly)

6. Write a detailed elaboration of the budget of the necessary actions to

implement the proposal.

Elephant’s Budget
Details Cost €
For orders over 100 €, production and distribution of
2 customised wine glasses with company logo are 4500

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 included.

The competition for the best employee youtuber is

fierce. 1500

Competition for employee launch advertisements. 6000

In the case of red wine, there is a 10% discount. 3000

Maintenance of a website and an online campaign 6500

Sweepstakes - The winner will receive a three-day,

two-night trip for two to Elephant Vineyard and
Winery. 5000

influencers in the media 1000

Quarterly Activities 35000

Website with articles 2500

TOTAL 65000

7. Define which measurement and control methods will be used to determine

whether the proposed actions and activities are beneficial to the company or
not. Justify the use of these tools.

It's crucial to determine what needs to be measured before deciding on

measurement and control methods for the project. The key business drivers will
be the focus of the measurement decision. The marketing plan's implementation
is set to begin on July 1, 2022, and the above-mentioned activity schedule will
be followed. A committee made up of the following people will oversee the
activities and ensure that the goals are met:
 Head of Logistics Division
 Head of Accounts and Finance
 Marketing Manager
 Sales Manager
 Community Manager

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This assessment committee will meet biweekly to verify that the activities were
completed on time, that they were implemented, and that the results were
modified if necessary. In the event that an external factor prevents the execution
of the strategy and the achievement of marketing objectives, the committee
should take the necessary steps to correct the dates or purpose of any activity.
They should also assist with the marketing strategy.

These meetings should result in a report to general management that includes

online growth indicators, sales through various channels, response time to
requests, website interactions, prints online campaign number of unique users,
requests, and complaints. The committee will also create a set of key
performance indicators to assess the campaign's effectiveness.

Subsequently, the employee continues to be the most valuable resource in the

company. As a result, as the company grows, so will the number of employees.
In this case, the company must fully comprehend how the employees are
performing in order to ensure that they are providing high-quality services to the
customers. Meetings and appraisals, as well as qualitative measurement of
employee performance, are some of the formal ways that organizations can
measure and control employee performance.

References

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%20website.pdf

Top Fifteen Wine-Producing Countries. (2020, May 25). Retrieved from Italian Wine
Central: https://italianwinecentral.com/top-fifteen-wine-producing-countries/

Ecommerce in Spain. (2019, June). Retrieved from Ecommerce News Europe:

https://ecommercenews.eu/ecommerce-in-europe/ecommerce-spain/

Balabanian, M. (2018, October 17). Top 10 Most Famous Spanish Wineries to Visit.
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Leon, J. (2020, May 6). What’s the profile of a Spanish wine consumer? Retrieved from
Discovering Jean Leon; Wine:
https://www.jeanleon.com/en/whats-the-profile-of-a-spanish-wineconsumer/

Sharma, R. (2016, September 29). Pest analysis spain. Retrieved from Slide Share:
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Gutierrez, H. (2017, August 27). The export of wine marks record for the Chinese pull
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Karlsson, P. (2019, April 14). World wine production reaches record level in 2018,
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