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Romano’s History. Romano Pastega immigrated to the United States from Italy in 1907. His son Mario Pastega purchased the Pepsi-Cola Bottling Company in Klamath Falls first. In 1961 Corvallis, Oregon. In 1974 Tillamook, OR, In 1986 Medford, OR, . Romano’s History.

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romano s history
Romano’s History
  • Romano Pastega immigrated to the United States from Italy in 1907.
  • His son Mario Pastega purchased the Pepsi-Cola Bottling Company in Klamath Falls first.
    • In 1961 Corvallis, Oregon.
    • In 1974 Tillamook, OR,
    • In 1986 Medford, OR,
romano s history3
Romano’s History
  • Ken Pastega, one of Mario’s three son created the Romano's Italian Soda line.
    • "I kept seeing people in coffee shops and restaurants order Italian sodas, only to receive a drink that lacked sophistication”
romano s history4
Romano's History
  • After seeing the popularity of Italian soda increase in recent years, Pastega was convinced that people would buy these delicious drinks if available.
  • In 2005 Romano's was spun off from the Pastega Beverages and is run as its own company.
romano s history5
Romano's History
  • Romano’s is dedicated to recreating delicious Italian sodas so everyone can enjoy them.
  • Romano’s Italian sodas are available in plastic bottles and at the soda fountains in convenience stores, restaurants and cafes.
target market
Target Market
  • Romano’s current primary target market
    • Young adults, ages 18-25
    • Active, busy, and energetic lifestyle
    • Students and young professionals who are social and ambitious
    • Health conscious but still enjoy good food and drink
  • Secondary target market
    • High school students
    • Mothers looking for a good tasting diet soda
    • Heavy soda drinkers
    • Parents that are attracted to a healthier beverage option for their families
target market recommendations
Target Market - Recommendations
  • Don’t focus so much on the secondary target market
  • Instead, add a new primary target market based on an older aged segment of the market.
    • The diet Italian soda would work well for this new segment
      • Target to people who may have health issues that restrict them from consuming sugar
      • Product provides a healthier alternative
the new target market
The New Target Market
  • Middle age adults ages 45-55 years old
  • Health conscious for themselves and their family
  • Active and energetic
  • Enjoys socializing with family and long time friends
  • Developed loyalty brands, but are curious to try new things
    • Are educated on the latest products in the market
savvy sipper
“Savvy Sipper”

“Classy Connoisseur”

  • Younger target market
  • Age represents about 13,000 people in Benton County
  • Figure to get 20% response to buy
  • Total = 13,000

x 20%

2,600

  • Older target market
  • Age represent a little more than 11,000 people in Benton County
  • Figure to get 10% response to buy
  • Total = 11,000
    • x 10%
    • 1,100

*population stats based off of the 2000 U.S. Census Bureau

target market projections
Target Market - Projections
  • Creating a new target market will increase our customers
  • Provide more sales which will in the long term add to the growth of the company
  • Create great word-of-mouth advertising with an increase in customers drinking Romano’s soda
  • Enhance the image of Romano’s as being a healthier alternative to big brand named sodas
product
Product

Flavors Offered

  • Orange Cream (available in Diet)
  • Creamy Strawberry (available in Diet)
  • Sour Apple
  • Vanilla Bean
  • Berry Pomegranate

Newest Flavor

  • Blackberry – coming in March
product recomendations
Product - Recomendations
  • Maintain Romano’s healthy-image
    • Stay with non-caffeinated beverages
    • Push healthier image by simplifying flavors
      • Flavor Trends
    • Keep up to date with health-research on the healthiest ways to sweeten products.
      • They currently have a link on their page to “Why cane sugar is better”
      • Look into healthier sugar substitutes like Stevia
product recomendations13
Product - Recomendations
  • To attract attention of Innovators or Early Adopters
    • Consider offering unique, eye catching products that have the potential to be the next big thing
      • Examples: “Key-Lime Pie” or “Vanilla-Pear” etc.
price
Price

Sell Product at $1.25

  • This price-point is very competitive
    • Affordable as well
  • Compares to prices of competition
    • Other soda companies (Coca-Cola, Pepsi, etc.)
    • Gatorade
    • Sobe (Romano’s Italian Sodas is actually cheaper)
      • Greater volume than Romano’s product
  • Prevents a “cheap” image – brand equity
    • Not too expensive, should not push customers away
    • Gives an equal if not better quality image when compared to competition
price breakdown
Price Breakdown

Romano's Price Per Bottle

Retail Price $1.25

Romano's Wholesale Price -0.85

Vendor Profit $0.40

Romano's Wholesale Price 0.85

Romano's Production Cost -0.40

Romano's Profit Margin $0.45

estimated profit
Estimated Profit

Northwest: Oregon, Washington, Idaho

Using information from the 2006 AFS:

Total Population = 399,423

Assuming 2 purchases a week or 104 purchases a year

Savvy Sippers: TP x .20 =220,795

Classy Connoisseurs: TP x .10 = 173,628

Segments Combined = 394,423

394,423 x $0.45 (profit/bottle) * 104 (purchases/year)

Total Profit/Year = $19,168,957.80

Market share expected to grow!!!

price appeal
Price Appeal

To ensure the success of the Italian Soda we will:

  • Keep a consistent price
    • Reduce price barrier
    • Current price/volume slightly higher than a Coca-Cola, however evokes quality perception
  • Select Coupons
    • In store coupons at select locations such as Roth’s Supermarkets
      • Offer a 2-for-1 promotion
    • Back of label coupons
      • Reduces paper usage, adds purchase value
promotion recommendation
Promotion - Recommendation
  • Stronger promotional front
  • Expansion into the local community- Product Placement
    • Community activities
      • Da Vinci Day, Fourth of July, Fall Festival, Saturday Market
    • Oregon State University
      • Sporting events
      • Greek Life Events
      • Campus functions
promotion recommendation19
Promotion - Recommendation
  • Sponsorship
    • Local schools, fundraisers, PTA meetings, Bingo Nights
    • Boys & Girls Clubs- teams, events
    • Intramural Sports through Oregon State University
      • Teams, jerseys, gatherings, and celebrations
    • Campus events
      • Hang banners, host a concert, provide sustenance in a beverage garden
promotion recommendation20
Promotion - Recommendation
  • Expand advertisements
    • Already tapped into radio air time
    • Look locally:
      • Dixon screen advertisements
      • Reader boards
      • Inserts in the Daily Barometer
      • KBVR Television and radio
promotion recommendation21
Promotion - Recommendation
  • Provide entertainment/deals with the drink
    • Lid entertainment
      • Like Sobe or Snapple, place sayings under the lid
        • Teach consumers Italian sayings
      • Like Coke or Pepsi, relate the use of lid sayings or promotions to a website that is interactive, so the consumers is excited to drink more
    • Coupons
      • Under the label, place a coupon that will benefit the consumer on their next Romano’s purchase
promotion recommendation22
Promotion - Recommendation
  • Budgeting
    • Expanding promotion will require a larger budget
    • Such promotional tools like newspaper inserts and coupons will be more costly
      • 8,000 minimum inserts at $70 per 1000 =$560
    • Sponsorships also require funding
      • The more teams, events, activities sponsored, the more financial support needed
    • The bigger the idea, the more money needed
    • Promotion will have to be implemented over time as revenue increases
distribution
Distribution
  • Romano's Italian Soda is available in fountain, bottled beverage, vending and granita machines.
distribution markets
Distribution - Markets
  • Throughout Oregon
    • Over 200 different locations around Portland
    • Over 50 location around Salem
  • Washington and Idaho
    • Battleground
    • Vancouver
    • Longview
  • Indiana
    • Warsaw
distribution intermediaries
Distribution - Intermediaries
  • Many small “Ma and Pa” stores
  • Roths & Thriftway
  • Local delis and markets
  • Gas stations Ex. 7-Eleven
  • Liquor stores
distribution channel
Distribution channel
  • Very simple and clean
  • From bottling plant in Eugene to distribution centers
    • 13 distribution centers total in Oregon, Idaho and Washington
  • From Distribution centers to stores
  • From Stores to Consumer

Manufacturer

Distribution Center

Stores

Consumer

distribution relationship
Distribution Relationship
  • Romano’s strives to have a strong relationship with each of its intermediaries.
    • Offers buy backs to items that are damaged or do not sell.
    • Reimburse dissatisfied customers.
  • Offers in store promotions to selected stores
    • Free samples
    • Coupons
distribution recommendations
Distribution - Recommendations
  • Increase efficiency through technology
  • Focus growth in markets that are farther away
  • Increase business to business connections
positioning
Positioning
  • Romano’s is a very young company
  • Build reputation and strong brand awareness
positioning30
Positioning
  • As the company grows, look into the option of greatest benefit
    • Expanding the company
    • Consolidating
    • Sell to the highest bidder
  • Once Romano’s has saturated the market, their next step could be selling to a larger company.
positioning31
Positioning
  • Current connections with Pepsi
    • Production/bottling plants
    • Potential buyer when the time is right
  • Maybe a smaller company like Cadbury-Schweppes would be interested in this unique product, and be more attractive to Romano’s family values.
positioning32
Positioning
  • The goal is to make the most sensible decision
  • Things to consider:
    • Family owned and operated company, does selling the company hurt the brand image and equity?
    • Competition in drink market is intense, will the product survive?
    • Is there a place for this product among the soda giants?
positioning33
Positioning
  • When the time is right, Romano’s will decide if selling the company is a smart choice
  • They are still in their early years and it is too soon to tell if their products are going to make it
  • The uniqueness of their sodas offer something new to the drink market, and the soda giants are always looking for the next big item.
conclusion
Conclusion
  • Romano’s is young and strong company with lots of room for growth
  • The market for bottled Italian sodas is virtually untapped and will be interesting to watch grow and develop
  • With our recommendations the company will be able to increase their market share and brand equity