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Vodka Industry

Introduction  
As the #1 domestically made US vodka, Skyy Vodka’s mission is to provide a premium vodka with the purest, smoothest taste with less impurities than any other vodka. Skyy Vodka is the number one choice of bartenders for the ultimate mix of style and taste. While Smirnoff and Absolut continue to lead in market share, we want to differentiate Skyy among these competitors by emphasizing both of these attributes. We plan to reposition the brand as a “step up” from all other vodka. We aim to highlight the smooth, stylish, and sophisticated features of Skyy Vodka and make it the spirit-of-choice among young professionals.
In its distinctive blue bottle, Skyy comes in six different vodka flavors, offering a taste to satisfy every vodka drinker. With this all-embracing product line, we will introduce Skyy as the vodka-of-choice for martini drinkers. Our goal is to change the consumer’s perception of the brand by repositioning it as a “step up” for the young professional. We aim to increase trial among this new target market, and increase purchase intent through product differentiation. We ultimately strive to increase sales and awareness and gain market share in the vodka category.

Situational Analysis
I. Environment Analysis
1. Economic forces
Overall the amount of disposable income has been increasing over past couple years. According to Bureau of Economic Analysis, Real Personal Disposable Income per Capita is generally increasing since 2005. On August 2005, the income per capita was little over $26,750 and on September 2007 the number reached $28,750, more than $2000 increase in two years. Personal Income and Personal Consumption Expenditure has also increased over last several months in 2007, average of .4 points increase each month.  
2. Legal and Regulatory forces
Due to the rising criticism on advertising exposure of Alcohol Beverages to underage, Federal Trade Commission (FTC) has set ALCOHOL INDUSTRY ADVERTISING CODES. The codes are set...