DIY COCKTAILGroup presentation

EVALUATING IDEASOur group came up with multiple ideas, including a dating app in which you can ‘rate your date’, a mobile shisha service and a study buddy service. After conducting ideas screenings, we decided to go for a DIY cocktail kit as we think there is a gap in the market for our product.

Strength of business idea

Industry related issues

Target market and customer related issuesFounder(s) related issues

Financial issues

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Rate my date app

Strength of business idea

Industry related issues

Target market and customer related issuesFounder(s) related issues

Financial issues

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0

5

Mobile shisha service

Strength of business idea

Industry related issues

Target market and customer related issuesFounder(s) related issues

Financial issues

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3

Study Buddy app

Strength of business idea

Industry related issues

Target market and customer related issuesFounder or founder related issues

Financial issues 

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3

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DIY cocktail kit

After producing factor wheels, and taking all of the separate components into account, our strongest idea was the DIY cocktail kit. It has a relatively low start up cost and large target market. There were some founder related issues in our other ideas, such as finding a developer for the apps.

PRODUCT DESCRIPTION• What is DIY cocktails?• A fun and interactive way of enjoying cocktails with your friends by providing all the tools

and ingredients required to make great looking and delicious tasting cocktails at home.• We provide the alcohol, mixers, fruit (and shakers if needed) which is something that none

of our competitors are currently doing. This can save money compared to expensive bars and gives customers the opportunity to make a variety of different cocktails.

• Multiple sets will be available depending on consumers levels of disposable income, for example luxury kits will include miniature belvedere and grey goose bottles, where as standard kits will include brands such as Smirnoff and Bacardi.

• Our main selling point is the novelty and interactive elements of making your own cocktails.

DIY cocktails!We provide everything you need for a world class cocktail, you provide the fun! Product poster

  

GAP IN THE MARKET• Following the success of Gousto (2015), a DIY

box of the exact ingredients needed to make a meal with a recipe, which reports 130 percent growth month-on-month (thisismoney, 2013) we think that DIY cocktail ingredients could prove popular as a fun, interactive way to spend time with friends and family.

• According to the Office of National Statistics (2013), when interviewing people aged 18 and over, it was revealed that 58% had drank in the last week in private households in Great Britain. With the younger portion (aged 18-24) of the population revealing to have drunk very heavily in the last week with a preference for spirits. With this information at hand we decided to do some primary research to investigate into our possible target market.

Market development Diversification

Market penetration Product Development

Entrepreneurial Opportunity

Existing products

New products

New

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Exist

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Ansoff’s matrix

PRIMARY RESEARCH RESULTS• We conducted a survey of 26 people and got some of the following results:

To Socialise To Destress To get drunk Boredom02468

1012141618

Why do you drink alcohol?

Do you like pre-mixed cocktails? E.g. Caribbean crush, parrot bay

Yes No They were okayOut of the people we asked, most people said that they drink to socialise, and one of the main selling points of the DIY cocktail is it’s interactivity for people at parties, hen nights etc. so it has a social aspect to it.

We also asked what opinions people had on our competitors, and most people thought that ready mixed cocktails were just ‘okay’ so we think out product can improve upon this.

PRIMARY RESEARCH RESULTS

Would you be interested in a DIY cock-tail kit?

Yes No

Approximately 75% of the people we asked who drank cocktails regularly said they would purchase a DIY cocktail kit.

How often do you drink?

Never Monthly 2-4 per month2-3 per week 4+ per week

Out of the people we asked, those that had a full time job and were aged over 30 drank more often, but students tended to drink cocktails more often, so that is how we came up with our target market.

INTENDED TARGET MARKET• Responsible drinking is

a huge part of the growing student culture.

• Alcohol is 61% more affordable than in 1980, Thus making it easier for students to afford our cocktails.

20 ----- 45

• The more mature market is more likely to have a steady stream of disposable income

• More inclined to stay at home and drink unlike younger people

INTENDED TARGET MARKETUpon expansion of our business, we would like to offer this product to any start up bar, restaurant or club that doesn’t yet have any signature drink or cocktail as a brand. We would also like to offer our services to cocktail masterclasses, to allow consumers to use their new skills at home. By doing this, we can:• Be a fail-safe for inexperienced bartenders• Offer premium cocktails on the go• Decrease the time in between cocktail orders

BENEFITS OF THE PRODUCT• Affordable to the two different market segments we are aiming at• Easy to do• There is a wide variety available to our customers• Customers have the ability to make DIY sets tailored to their specific preferences• Interactive• No competitors that offer the same product currently on the market• Customers can easily order through our website• The student market can be easily accessed through social media so we can save

money on advertising• Is a great product that can grow interest through word of mouth

POSITION RELATIVE TO COMPETITORS

• Competitor 1 - (PURENCHIC, No date: Online) - Subscription basis – customers choose their appropriate plan, vintage/retro drinks included, no shakers or equipment. Sold through their own website. From £15 to £348.

• Competitor 2 – (Drinkstuff, No date: Online) - A premium cocktail creation kit which includes ice bucket, shaker, napkins, straws, knives etc. - all of high quality materials such as stainless steel. No alcohol included. One-off purchase, no subscriptions available. Operated through an independent website but also available on Amazon and other retailers. Price £39.99 (on offer – reduced from £59.95)

• Competitor 3 – (Bar@Drinkstuff, No date: Online) - A basic cocktail creation kit, including recipe book and basic mixing kit (shaker, jigger etc.). Priced at £9.99 with £5 delivery. One-off payment, no subscriptions, sold through their own website and also through Amazon.

HOW WILL THE PRODUCT BE SOLD?E-Commerce 

• Independently operated website – using Shopify, Bigcartel or other platform.• Augmentation could involve a professionally developed site.• Similar to other home-delivery services, such as Ocado, Amazon, and Graze.• Different payment options to meet customer needs, such as PayPal, credit/debit card

payments, bitcoin, etc.High-Street Retailers• Boots, Urban Outfitters, House of Fraser, John Lewis, Selfridges, Debenhams.• Urban Outfitters already aim their products at the 18-35 year old market, sharing our target

market.• Threat of Substitute Products. (Porter, 1980) Supermarkets• Product variations (Standard and luxury) allow this idea to fit in well with stores at both the

lower and higher ends of the scale.• Our basic cocktail creation kit – suitable to Tesco/ASDA. • Premium packages – Waitrose, Marks & Spencer.

REVENUE MODEL• High sales targets within first

few months as we are looking to do a lot of advertising.

• Cash flow is positive, mainly due to the high sales we have proposed. This is also due to the expenses for this business idea being fairly low. 

• Small business so we have found two different sources of finance we will be using to ensure we have the right funding

• 6 shareholders within the business we feel so we could get a capital of £4000.

• Bank loan will cover us for a long period and with the market we are entering having wide opportunities for growth, we can use this finance as a platform to enter this really competitive market

• Just in Time system.•  Eliminate our predicated sales

and also reduce our purchases cost as we will only buy when we need to

• This demand pull system will allow us to order the product in when it is required, to the correct quantity we require and also to when we need it by.

• Raw stock kept to a minimum

PEST ANALYSIS

   

SWOT ANALYSIS Strength Weakness Opportunity Threats Low start up cost – JIT theory and exploitation of free web-hosting server could reduce costs.

Students income – with less disposable income, students are less likely to buy more expensive products.

Mocktails – brand/product diversification - under 18s, people who don’t drink alcohol, etc.

Seasonal business – summer and cocktails go hand-in-hand, less interest in winter months

Large consumer base - 58% of over 18s drank alcohol in the last week. Office of National Statistics (2013)

Antisocial – excessive alcohol consumption can lead to possible antisocial behavior.

Summer – summer sales, event sponsorship and buy-in-bulk deals could impact sales.

Competitors – established brands could arrive in the market with a similar product and undercut our pricing.

A different alternative – instead of going to a bar, allows for home cocktail parties.

Alcohol and religion – Some religions prohibit alcohol.

DIY alcohol – can potentially expand to create our own brand of alcohol.

Alcohol awareness – anti-alcohol campaigns could negatively affect sales.

REFERENCES• AlcoholConcern (2016) Statistics on Alcohol [Online] Accessed on 19th February 2016. Available at:

https://www.alcoholconcern.org.uk/help-and-advice/statistics-on-alcohol/

• Bar@Drinkstuff (No Date) Basic Cocktail Shaker Set with Cocktail Book by bar@drinkstuff - Cocktail Set with Professional Boston Cocktail Shaker Tin & Glass, Jigger Measure & Hawthorne Cocktail Strainer - Affordable Gift Set. Amazon.co.uk. [Online] Accessed on 7th February 2016. Available at: http://www.amazon.co.uk/Cocktail-Shaker-bar-drinkstuff/dp/B004CY3LU6

• DRINKSTUFF (No Date) Professional Home Bar Cocktail Set. DRINKSTUFF. [Online] Accessed on 7th February 2016. Available at: http://www.drinkstuff.com/products/product.asp?ID=9378&gclid=CLbd9er-icsCFQITwwodMoAHOQ#.VtNNIZyLTIV

• Gousto (2015) Gousto [Online][Accessed on 19th November 2015] https://www.gousto.co.uk/ • just-drinks (2008) Sample provided by just-drinks. [Online] Accessed on 16th February 2016. Available at: 

http://www.just-drinks.com/store/samples/2008_keynote_drinks_market.pdf • Office for National Statistics (2013) 5 interesting facts about alcohol consumption in Great Britain [Online][Accessed on the

19th November 2015] http://www.ons.gov.uk/ons/rel/ghs/opinions-and-lifestyle-survey/drinking-habits-amongst-adults--2012/sty-alcohol-consumption.html

• Porter, M.E. (1980) Competitive Strategy, Free Press, New York.• PURENCHIC (No Date) The Old Fashioned & Sazerac Cocktail Kit. [Online] Accessed on 4th February 2016. Available at: http

://www.purenchic.com/product/the-old-fashioned-and-sazerac-kit?gclid=CJGM48PS5soCFUieGwodP7AKqQ• Statista (No date) Statistics and facts about the alcoholic beverages industry in the U.S. [Online] Accessed on 16th February 2016.

Available at: http://www.statista.com/topics/1709/alcoholic-beverages/ • Thisismoney (2013) Dragons forced to eat humble pie as reject Gousto wins a further £1.2m of funding [Online][Accessed on

19th November 2015] http://www.thisismoney.co.uk/money/smallbusiness/article-2520215/Dragons-Den-reject-Gousto-wins-1-2m-funding.html