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Stone Creek Wine - Japanese Marketplace


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Stone Creek Wine - Japanese Marketplace

  1. 1. Stone Creek Winery Bringing a taste of California to Japan Preliminary Marketing Plan May 14th, 2009 Pattie Chen Jim Folger Alexis Kushner Alesandro Licopoli Christopher Serio
  2. 2. <ul><li>Unsolicited inquiry received from Japan. </li></ul><ul><li>Large untapped Japanese market. </li></ul><ul><li>Japan has a cultural appreciation for alcohol. </li></ul><ul><li>Target audience is young, Japanese females. </li></ul><ul><ul><li>40% of females have at least one glass of wine per month. </li></ul></ul><ul><li>Women are more conscious of western trends. </li></ul>Marketing Objectives
  3. 3. <ul><li>Modifying the product to become more Japanese would counteract the interest in California wine. </li></ul><ul><li>Packaging is essential. </li></ul><ul><li>Labels must be meticulously placed, good attention to detail. </li></ul><ul><ul><ul><ul><li>“ Japan Packaging Institute, has been promoting the rationalization of production and distribution as well as a consumption through improvement and elevation of the packaging technique and thereby contributing to the progress of Japan’s economy.” </li></ul></ul></ul></ul>Product Adaptation
  4. 4. Promotion Mix <ul><li>Objectives: </li></ul><ul><ul><li>To generate the attention of consumers </li></ul></ul><ul><ul><li>To build a strong brand name </li></ul></ul><ul><ul><li>To create consumer demand for our wine </li></ul></ul><ul><li>Message: </li></ul><ul><ul><li>“ Stone Creek wines are crafted from quality grapes grown in the Lodi, California wine region” </li></ul></ul><ul><ul><li>Promoting 2 attractive core components (Design Features): </li></ul></ul><ul><ul><ul><li>Quality of grapes: The “western-ness” of California </li></ul></ul></ul><ul><ul><ul><li>Making process: Wine are produced in tradition </li></ul></ul></ul><ul><li>Strategy: </li></ul><ul><ul><li>Push: Educational materials to the distribution chain </li></ul></ul><ul><ul><li>Pull (Long-term): </li></ul></ul><ul><ul><li>1.Advertising 2.Trade show 3.Sponsorship 4.Sales promotion </li></ul></ul>
  5. 5. Pull Strategy-1: Advertising <ul><li>Work with the Japanese distributor, Smile Corporation </li></ul><ul><li>Utilize pre-existing distribution channels </li></ul><ul><li>Smile Corporation helps implement Japanese advertising campaigns by using: </li></ul><ul><ul><ul><li>1. Print Ads: Early adapters and innovators </li></ul></ul></ul><ul><ul><ul><li>Magazine, Newspaper, Menu Inserts </li></ul></ul></ul><ul><ul><ul><li>2. Web: Targeting, Database, Effective </li></ul></ul></ul><ul><ul><ul><li>Direct Mail, Banner Ads, Official website, Keyword search </li></ul></ul></ul><ul><ul><ul><li>3. Outdoor: Billboards for branding </li></ul></ul></ul>
  6. 6. Pull Strategy-2: Trade Fairs and Exhibitions <ul><li>Increase awareness of our wines </li></ul><ul><li>Encourage trial </li></ul><ul><li>Meet with trade organizations and consumers </li></ul>
  7. 7. Pull Strategy-3: Sponsorship <ul><li>Japanese drama shooting </li></ul><ul><li>Expose our wine bottle and brand name to our target audience </li></ul><ul><li>Fashion show events by brands </li></ul><ul><li>Associate Stone Creek with celebrity and established quality lifestyle brands </li></ul>
  8. 8. Pull Strategy-4: Sales Promotion <ul><li>To distributors: </li></ul><ul><li>Promotion for the order of certain amount of cases </li></ul><ul><li>To customers: </li></ul><ul><ul><li>Free tasting events </li></ul></ul><ul><ul><li>Mail Coupons </li></ul></ul>
  9. 9. <ul><li>Request distributor to fill out the standard distributor questionnaire </li></ul><ul><li>Create a long-term relationship with the distributor </li></ul><ul><li>Prepare contingency plans should this relationship not last given Stone Creek’s commitment to Japan </li></ul><ul><li>Prepare for possibility of being contacted by a competing Japanese distributor </li></ul>Channels of Distribution
  10. 10. <ul><li>Cost-Plus approach - $50/case. </li></ul><ul><ul><li>$35 + 40% mark up. </li></ul></ul><ul><li>Invaluable to Stone Creeks strategic mix. </li></ul><ul><ul><li>Shipment is not just excess inventory. </li></ul></ul><ul><li>Advantage of working with a distributor. </li></ul><ul><ul><li>Control and minimal investment for entry. </li></ul></ul><ul><li>Current strategy allows for easy adjustments. </li></ul>Initial Pricing Strategy
  11. 11. <ul><li>Tariffs and liquor tax laws. </li></ul><ul><ul><li>$1.95 per bottle. </li></ul></ul><ul><li>Japanese recycling regulations. </li></ul><ul><li>Inflation rates in the United States and Japan. </li></ul><ul><li>Exchange rate fluctuations. </li></ul>Price Escalation
  12. 12. <ul><li>Initial strategy - Irrevocable Letter of Credit. </li></ul><ul><ul><li>After tariffs, taxes, mark-ups - $17-18 per bottle. </li></ul></ul><ul><li>Future transactions </li></ul><ul><ul><li>Full-Cost pricing strategy. </li></ul></ul><ul><li>Foreign currency transactions. </li></ul><ul><ul><li>Protective hedging and currency repatriation. </li></ul></ul><ul><li>Future business resource requirements. </li></ul>Future Pricing Strategy
  13. 13. <ul><li>Entice our prospective buyer </li></ul><ul><li>Set a positive tone for future relationship </li></ul><ul><li>Relevant technical details </li></ul><ul><li>Offer Free Advertising </li></ul><ul><li>Possible future discount </li></ul><ul><li>Subtlety hint at finding a distributor </li></ul><ul><li>Questionnaire </li></ul>Fax Offer - key points
  14. 14. <ul><li>Total price </li></ul><ul><li>All applicable shipping details </li></ul><ul><li>Payment terms </li></ul><ul><li>Letter of Credit Conditions </li></ul><ul><li>Letter of Credit Documents </li></ul>Proforma Invoice – key points
  15. 15. <ul><li>Excellent growth opportunity for Stone Creek. </li></ul><ul><ul><li>Importance of international business. </li></ul></ul><ul><li>Minimal business and marketing investment. </li></ul><ul><ul><li>This has room to grow as relationships develop. </li></ul></ul><ul><ul><li>Marketing channels and revenue steams exist. </li></ul></ul><ul><li>There is no downside to Stone Creek moving into the Japanese wine market. </li></ul>Conclusion
  16. 16. Questions?