Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Seagram in taiwan

1,541 views

Published on

Powerpoint presentation of case study

Published in: Business
  • Be the first to comment

  • Be the first to like this

Seagram in taiwan

  1. 1. Marketing StrategySeagram in Taiwan Melissa Fegarido Raphael Foglio Cory Larson Joseph Lin
  2. 2. Company Background
  3. 3. Pernod Ricard Founded 1975 Worldwide operator in spirits and wines Corporate strategy: – Concentrate on key brands – Develop strong local or regional brands and wholly-owned distribution networks – Motivate employees through highly decentralized organization Acquired Seagram in 2002
  4. 4. Pernod Ricard KEY BRANDS Chivas Regal  Pastis 51 Clan Campbell  Ricard Havana Club  Ramazzotti Jacobs Creek  Seagrams Gin Jameson  The Glenlivet Martell  Wild Turkey
  5. 5. Chivas (12- and 18-year)  Globally recognized  Premium blended scotch whisky  2.9 million cases in 2003  Key marketsPour two shots of include Japan,Chivas Regal 12 over Korea, China,fresh ice cubes Travel retail channel
  6. 6. Martell (cognac)  Since 1715  Blended from rare eaux-de-vie (distilled light white wine)  Aged in private cellars 15 years  1.1 million cases inTango a Paris: In a long 2003glass, pour Martell overice, top with fresh  Key markets includepineapple juice, splash of Duty Free China,tonic, and a cherry Singapore, Malaysia
  7. 7. Martell range Martell VSOP (s) Martell Cordon Bleu (p) Martell XO Suprême (p) Martell Noblige Martell VS Médaillon Martell Extra Classique de Martell LOr de J&F Martell Martell Creation
  8. 8. Royal Salute (21 years)  First produced in 1953  World’s leading super premium scotch  Malt and grain from Scotland  76,000 cases in 2003  Key Markets: Taiwan, Korea, China, Japan,Best enjoyed neat Travel retail channeland unmixed
  9. 9. Market Analysis
  10. 10. Impact of Duties Super Premium Premium Premium Standard Other Scotch Scotch Cognac Cognac Royal J.W. Chivas J.W. Seagram UD/Henn Seagram UD/Hen JapanCost per Bottle NT$ Salute Premier Regal Black XO XO VSOP VSOP WhiskyCIF Costs 832 832 272 272 976 976 464 464 180Current Duty 330 330 330 330 750 750 750 750 149Total Current Costs 1162 1162 602 602 1726 1726 1214 1214 329Current Target Price 2170 2300 680 650 2080 2200 1100 1100 480Current Target Margin 1008 1138 78 48 354 474 (114) (114) 151Proposed DutyCIF Costs x 12.5% 104 104 34 34 122 122 58 58 23+NT $170 x *.75 128 128 128 128 128 128 128 128 128+5% VAT 12 12 8 8 13 13 9 9 8Proposed Duty 244 244 170 170 263 263 195 195 158Potential Savings NT$ 86 86 160 160 488 488 555 555 (9)Potential Savings US$ 2.61 2.61 4.82 4.82 14.7 14.7 16.7 16.7 (0.3)
  11. 11. Strengths Globally recognized brand Range of product line Highly decentralized organization Wholly owned distribution networks
  12. 12. Weaknesses No product in the standard category Prestige brand name limits their pricing strategy
  13. 13. Opportunities No brand extension in standard category Brand consciousness is high Consumers more price conscious Decrease in “on-premise” sales Duty regime changes Recent one yr ban on all U/D Hennessy product
  14. 14. Threats Low brand loyalty Competitors spend more on promotions Traders and brokers - “unauthorized commercial activity” Domestic lower-priced “look-alikes” Entrance of Japanese whisky
  15. 15. Alternative Evaluation
  16. 16. Distribution Channels Develop private distribution channel – Cuts costs down in long-run – Initial startup costs are substantially high Build plants to produce in Taiwan – Avoids tariffs and duties altogether Focus on hypermarket distribution – Growing trend shows increasing hypermarket preference Introduce direct distribution from internet selling – Reduce costs by cutting middlemen
  17. 17. Duty Regime Two options are available – Reduce pricing accordingly to increase sales volume – Hold pricing strategy to capitalize on duty savings  Ensure brand prestige image Adapt accordingly to environmental changes – React to competitors’ actions toward situation – Government regulations may change as political status varies
  18. 18. Promotional Scheme Increase mass media advertising – TV, radio, industry related magazines – Outdoor ads such as billboards within airports & subways Design promotional packages to induce trial – Develop strategic alliance with different venues – Promote newly introduced revolutionary product
  19. 19. MARKETINGSTRATEGIES
  20. 20. Distribution Strategy Maintain relationship with exclusive distributor – Formosa Trading Ltd. Develop compensation programs – Prevent “unauthorized activity” Focus on hypermarket distribution – Trend displays drinking at luxury of own home – Coordinate with introduction of new product Direct distribution through new channels – Internet selling, mail-in catalogues – Cheaper pricing due to loss of middlemen
  21. 21. Pricing Strategy Concentrate on “HOLD” pricing strategy reacting to duties – Ensures prestige brand image – Capitalize on duty reductions to increase profit Focus on selective pricing scheme Undermine competitors with new standard product New product prices stay competitive within its category Existing products’ prices will remain relatively constant
  22. 22. Promotional Strategy Focus mainly on chain of referrals & word of mouth Launch promotional packages within different venues – Executive suite gift packages within high-end hotels – Duty-free premium packages within airlines Mass customization towards major consumers – Applies only to newly introduced standard product
  23. 23. Promotional Strategy Alpha Campaign – Promotional packages consist of high-end products – Form strategic alliance with major hotels – Targets commercial meetings & professional luncheons Beta Campaign – Economical combinations including all category goods – Promote through airlines & new internet distribution – Targets home consumers & small businesses
  24. 24. Product Assessment Introduce new line of product within standard Scotch whisky category – High growth rate market – Unexplored territory Pricing of new product will remain competitive Unique design of packaging to prevent duplications Target urban lifestyle consumers – Young adult businessmen – Home owners
  25. 25. Chivas Revolve

×