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Innovation: The rescue of Marketing!

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Critical state in which the Spanish economy is, has led often to increasingly less frequent in bars , so  alcoholic beverage industry has meant a significant decline in sales. Diageo, one of the largest international producers of alcoholic beverages has found a way to revitalize their sales: mojito dispensers in bars.

London-based company sought to produce its first draft cocktail (glass), after consumers have shifted to drinking at home because it is much cheaper than in bars or restaurants. Cocktail to brew costs more than 4 euros, half the price of a freshly prepared cocktail, writes Bloomberg.

Companies are now focused on product innovation rather than imposing a higher price.
Diageo has already installed the first brew in a bar in Madrid in December last year, the company’s innovation director responsible for Europe Alicia Garcia said that in Spain there are already 5,000 pubs offering the drink.
The company will launch the mojito dispenser in 500 pubs in Britain in the coming weeks, using the composition of Smirnoff vodka. Cocktails at the dispenser  placed on the market are tested in Greece and Portugal. The drink has given good results in Spain. “If you look at prices on the market, then you already know what follows,” said Mark Fisher, director of customer marketing for the company Diageo in  Europe. “We want to provide value for our customers. People want to get exactly what they paid.”
Some companies and retailers are trying to change the packaging of existing products, hoping that will make consumers believe that they receive much more for the same price.
Grolsch SAB Miller brand, sells in the United Kingdom boxes of beer with a code that allows consumers to rent movies online at a discounted price. It is what the company calls “a perfect evening at home.”
At Christmas, Waitrose, a supermarket chain in Britain owned by John Lewis Partnership, sells a package of ingredients to prepare cake, which contains flour, sugar, spices and dried fruit at a price of 10 pounds. The company said that buying the ingredients separately would cost more than 23 pounds.

However, Jon Cox, analyst at Kepler Capital Markets,  says that only large companies such as Unilever, P & G and Nestlé, can afford to support their sales through innovation because they have a much larger budget dedicated to this department.
Moreover, according to Mike Clarke, director of Kraft in Europe, “reusable packaging for brands of chocolate made from fresh product portfolio, Kraft maintains a longer period. The consumer is not forced to finish the first chocolate. You can approach the two directions : a low-cost insurance or insurance needs and produce value for the product. “

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Posted by M Cosmin on Dec 6 2010. Filed under Business, Featured News, Food, Home & Life, Industry. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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