JOHNNIE
WALKER
RED LABEL
LEONARDO BEMBO
BEGÜM KONOR
SELIM TEPELER
MERTCAN SEZER
UMUT CAN AYDIN
ISSUES
✓ Difficult for customers to make comparisons
✓ Regulations and legislations against advertising and promotions
✓ High competitive rivalry
TARGETMARKET
● B2B customers are bars, hotels, clubs, restaurants and retailers that
sell JW Red to the end users.
● Willing to pay less for whiskey
● Mostly consists of young professionals and university students
● People who are trying whiskey for the first time.
WHATISOURCUSTOMER’SVALUEPROPOSITION?
Why Alcohol?
● Entertainment(Cheerful and Delighted)
● Social Lubricant(Self-Confidence)
● Relaxant
Why JW over others?
● Global brand that is trusted and reliable
● Whiskey being perceived as a premium drink in Turkey
● Decent quality whiskey with the lowest price
● High brand awareness compared to other whiskey brands
● Country of origin effect (Scottish)
MARKETPLACEANALYSIS
GENERALECONOMICCONDITIONS
• Population: 78.7 million
• GDP per capita: $11,524.51
• Unemployment rate: %10.1
• Money spend on alcohol per year : 18 billion TL
● Female & Male : 49% - 51%
● High alcohol consumption :
Edirne, Muğla, Tekirdağ, Tunceli,
Antalya, Aydın and İzmir
● Lowest alcohol consumption :
Bayburt, Bitlis, Ağrı, Batman, Bitlis,
Şırnak, Van, Hakkari, Şanlıurfa and
Muş
MARKETPLACEANALYSIS
DEMOGRAPHICS
MARKETPLACEANALYSIS
SOCIETALVALUES&LIFESTYLES
• Alcohol is religiously prohibited
• However, this makes it tempting
(The Paradox of Temptation)
• Drinking to keep up with the trend
• Young people go out more and
socialize
• Increasing health concerns
MARKETPLACEANALYSIS
REGULATIONS&LEGISLATIONS
• Promoting alcohol is forbidden by law.
• Scenes and photos that encourage alcohol on all media is forbidden by law.
• Alcohol cannot be purchased from retailers between 10:00 pm and 6:00 am.
MARKETPLACEANALYSIS
TECHNOLOGY&INFRASTRUCTURE
• Advancing technology results in better logistics
• The popularity of internet shopping is increasing
• Social media usage is very popular which enables the word of mouth
advertising
• Increasing credit card usage
DRIVINGFORCES
● Increasing stress levels
● Globalization of cultures
● Changing life styles
● Increasing usage of social media
● Credit card usage
● Availability of online shopping websites→ opportunities to compare
products in online platforms
● Increase in the disposable incomes of young population
● Increasing number of retail stores.
KEYSUCCESSFACTORS
Mental short-cuts: in the decision making
● Country of origin effect :Having “Scottish or Irish Label”
● High-value
● Familiar brand names
● People value price/performance ratio
First time triers target group: the taste of the whiskey
B2B long term contracts: long term stability.
PORTER’S5
FORCES
PRODUCTLIFECYCLE
COMPETITORANALYSIS
STRENGHTS&WEAKNESSES
Chivas Regal
Strenghts:
● Better taste and quality
● Higher brand equity
● More recognizable bottle design
Weaknesses:
● Higher price
COMPETITORANALYSIS
STRATEGICMAPVAT69
J&B
BALLANTINE’S
JWREDLABEL
JIMBEAM
FAMOUSGROUSE
JACKDANIEL’S
CHIVASREGAL
THEMACALLAN
FINANCIALANALYSIS
INCOMESTATEMENT
DIAGEO
DIAGEO
(GBP in Millions)
PERNOD SA
(EUR in Millions)
06/30/2014 06/30/2015 06/30/2016 04/30/2014 04/30/2015 04/30/2016
Revenues 10,250 10,813 10,485 7,945 8,558 8,682
% of
growth
- 5.49% -3,04% 7.71% 1,45%
Net profit 2,248 2,381 2,244 1,016 861 1,235
Net profit
margin (%)
21.93% 22.02% 21.40% 12.79% 10.06% 14.22%
FINANCIALANALYSIS
RATIOS
PROFITABILITY
AND VALUE DIAGEO PERNOD SA INDUSTRY
ROA 8,50% 4,12% 9,20%
ROE 29,15% 9,57% 21,18%
EPS 0,90 4,68
Payout Ratio 0,64 0,40
P/E 23,31 21,39 25,93
LIQUIDITY
DIAGEO PERNOD SA INDUSTRY
Quick Ratio 0,69 0,40
EFFICIENCY
DIAGEO PERNOD SA INDUSTRY
Inventory
Turnover
0,86 0,58 5,69
Total Assets
Turnover
0,39 0,28 0,81
LEVERAGE
DIAGEO PERNOD SA INDUSTRY
Total Debt to
Equity Ratio
121,58% 70,20% 871%
Interest Coverage
Ratio
6,32 4,89
Cash Flow
Coverage
1,33 0,05
FINANCIALANALYSIS
RATIOS
SWOT
STRENGTHS FROM WHERE IN THE ANALYSIS
Reliable and trustable brand Value Proposition
Country of origin (Scottish) Key Success Factors
High price/performance ratio Key Success Factors
High brand awareness Value Proposition
Nostalgic attachment Value Proposition
High penetration Porter’s 5 Forces
Relationships with channel members Key Success Factors
SWOT
WEAKNESSES FROM WHERE IN THE ANALYSIS
Taste and flavor Competitor Analysis
Low recognition of bottle design Competitor Analysis
Low price damaging brand image Competitor Analysis
SWOT
OPPORTUNITIES FROM WHERE IN THE ANALYSIS
Increasing consumption of alcohol in
social events
Driving Forces
Increasing taxation for other alcoholic
beverages
Product Life Cycle
Increasing buying power of young
population
Population Demographics
Increasing use of social media Technology / Infrastructure
Increasing GDP per capita General Economic Conditions
Increasing number of retailers, easy
access to end users
Driving Forces
Decreasing consumption of local brands Product Life Cycle
Increasing usage of credit cards Technology / Infrastructure
SWOT
THREATS FROM WHERE IN THE ANALYSIS
Advertisement regulations Legislations / Regulations
Regulation against sales after 10 pm Legislations / Regulations
High taxation Product Life Cycle
Increase in exchange rate General Economic Conditions
Increasing health concerns Societal Values and Lifestyles
Increasing competition Porter’s 5 Forces
LOWCOSTGENERICSTRATEGY
High price/performance ratio and high penetration in market
Opportunities:
• Rising taxation for other alcoholic beverages
• Increasing usage of credit cards,
• Rising buying power of young generation
Cost leadership strategy: Damages our brand image
MUST! Increasing exchange rates charge additional costs for imported
products.
Long-term sustainable competitive advantage: our competitors will suffer
more due to costs currency
IMPLEMENTATION:INCREASINGDISTRIBUTIONINTENSITY
Who?
● Small groceries and supermarkets in cities in which alcohol
consumption is higher than other cities
How?
● Increasing the availability of 35cl, 50cl and 100cl SKUs of JW Red in
shelves
Why?
● Serve more customers that have different needs.
● Increase market coverage
IMPLEMENTATION:
INCREASINGDISTRIBUTIONINTENSITY
What do we need?
● Additional allocated space
● More inventory costs and transportation costs
● New contracts with existing retailers for different SKUs
Strengths/Oppurtunities?
● Increasing buying power of young population
● Incrasing number of retailers
● Good relationships with channel members
Threats/Weaknesses?
Recognition of bottle design is lower than our competitor: Chivas
Legislations: One way to compete in this market is by efficient distribution
channel.
IMPLEMENTATION:STEALTHMARKETING-EKŞİSÖZLÜK
Who?
● Customers who use online platforms to compare products
How?
● Having more positive reviews at Ekşisözlük about JW Red
● JW employees would write the reviews, a translator would post
the reviews to Ekşisözlük in Turkish
Why?
● Advertising regulations
● Customers rely on WOM to make purchase decisions
● Ekşisözlük is always at the top three results
IMPLEMENTATION:STEALTHMARKETING-EKŞİSÖZLÜK
What do we need?
● To hire a part-time Turkish-English translator
Strengths/Oppurtunities?
● Brand awareness
● High price/performance ratio
● Increasing use of online platforms to compare products
Threats/Weaknesses?
● Advertising regulations
● High competitive rivalry
● High threat of substition
IMPLEMENTATION:OPINIONLEADERS
Who?
● Customers who follow blogs and
social media celebrities
How?
● Having Keyif Adamı and Beyaz
Yakalı Gurme to write positive
reviews about JW Red
Why?
● Customers are influenced by
opinion leaders
● Advertising regulations
IMPLEMENTATION:OPINIONLEADERS
What do we need?
● Contacting with opinion leaders
● Making payments according to the performance of the posts
Strengths/Oppurtunities?
● High price/performance ratio
● Countr of origin and reliability
● Increasing use of social media
Threats/Weaknesses?
● Low price damaging our brand image
● Advertising regulations
● High competitive rivalry
CHEERS! THANKS FOR LISTENING!

Johnnie Walker Red Strategic Analysis

  • 1.
    JOHNNIE WALKER RED LABEL LEONARDO BEMBO BEGÜMKONOR SELIM TEPELER MERTCAN SEZER UMUT CAN AYDIN
  • 2.
    ISSUES ✓ Difficult forcustomers to make comparisons ✓ Regulations and legislations against advertising and promotions ✓ High competitive rivalry
  • 3.
    TARGETMARKET ● B2B customersare bars, hotels, clubs, restaurants and retailers that sell JW Red to the end users. ● Willing to pay less for whiskey ● Mostly consists of young professionals and university students ● People who are trying whiskey for the first time.
  • 4.
    WHATISOURCUSTOMER’SVALUEPROPOSITION? Why Alcohol? ● Entertainment(Cheerfuland Delighted) ● Social Lubricant(Self-Confidence) ● Relaxant Why JW over others? ● Global brand that is trusted and reliable ● Whiskey being perceived as a premium drink in Turkey ● Decent quality whiskey with the lowest price ● High brand awareness compared to other whiskey brands ● Country of origin effect (Scottish)
  • 5.
    MARKETPLACEANALYSIS GENERALECONOMICCONDITIONS • Population: 78.7million • GDP per capita: $11,524.51 • Unemployment rate: %10.1 • Money spend on alcohol per year : 18 billion TL
  • 6.
    ● Female &Male : 49% - 51% ● High alcohol consumption : Edirne, Muğla, Tekirdağ, Tunceli, Antalya, Aydın and İzmir ● Lowest alcohol consumption : Bayburt, Bitlis, Ağrı, Batman, Bitlis, Şırnak, Van, Hakkari, Şanlıurfa and Muş MARKETPLACEANALYSIS DEMOGRAPHICS
  • 7.
    MARKETPLACEANALYSIS SOCIETALVALUES&LIFESTYLES • Alcohol isreligiously prohibited • However, this makes it tempting (The Paradox of Temptation) • Drinking to keep up with the trend • Young people go out more and socialize • Increasing health concerns
  • 8.
    MARKETPLACEANALYSIS REGULATIONS&LEGISLATIONS • Promoting alcoholis forbidden by law. • Scenes and photos that encourage alcohol on all media is forbidden by law. • Alcohol cannot be purchased from retailers between 10:00 pm and 6:00 am.
  • 9.
    MARKETPLACEANALYSIS TECHNOLOGY&INFRASTRUCTURE • Advancing technologyresults in better logistics • The popularity of internet shopping is increasing • Social media usage is very popular which enables the word of mouth advertising • Increasing credit card usage
  • 10.
    DRIVINGFORCES ● Increasing stresslevels ● Globalization of cultures ● Changing life styles ● Increasing usage of social media ● Credit card usage ● Availability of online shopping websites→ opportunities to compare products in online platforms ● Increase in the disposable incomes of young population ● Increasing number of retail stores.
  • 11.
    KEYSUCCESSFACTORS Mental short-cuts: inthe decision making ● Country of origin effect :Having “Scottish or Irish Label” ● High-value ● Familiar brand names ● People value price/performance ratio First time triers target group: the taste of the whiskey B2B long term contracts: long term stability.
  • 12.
  • 13.
  • 14.
    COMPETITORANALYSIS STRENGHTS&WEAKNESSES Chivas Regal Strenghts: ● Bettertaste and quality ● Higher brand equity ● More recognizable bottle design Weaknesses: ● Higher price
  • 15.
  • 16.
    FINANCIALANALYSIS INCOMESTATEMENT DIAGEO DIAGEO (GBP in Millions) PERNODSA (EUR in Millions) 06/30/2014 06/30/2015 06/30/2016 04/30/2014 04/30/2015 04/30/2016 Revenues 10,250 10,813 10,485 7,945 8,558 8,682 % of growth - 5.49% -3,04% 7.71% 1,45% Net profit 2,248 2,381 2,244 1,016 861 1,235 Net profit margin (%) 21.93% 22.02% 21.40% 12.79% 10.06% 14.22%
  • 17.
    FINANCIALANALYSIS RATIOS PROFITABILITY AND VALUE DIAGEOPERNOD SA INDUSTRY ROA 8,50% 4,12% 9,20% ROE 29,15% 9,57% 21,18% EPS 0,90 4,68 Payout Ratio 0,64 0,40 P/E 23,31 21,39 25,93 LIQUIDITY DIAGEO PERNOD SA INDUSTRY Quick Ratio 0,69 0,40
  • 18.
    EFFICIENCY DIAGEO PERNOD SAINDUSTRY Inventory Turnover 0,86 0,58 5,69 Total Assets Turnover 0,39 0,28 0,81 LEVERAGE DIAGEO PERNOD SA INDUSTRY Total Debt to Equity Ratio 121,58% 70,20% 871% Interest Coverage Ratio 6,32 4,89 Cash Flow Coverage 1,33 0,05 FINANCIALANALYSIS RATIOS
  • 19.
    SWOT STRENGTHS FROM WHEREIN THE ANALYSIS Reliable and trustable brand Value Proposition Country of origin (Scottish) Key Success Factors High price/performance ratio Key Success Factors High brand awareness Value Proposition Nostalgic attachment Value Proposition High penetration Porter’s 5 Forces Relationships with channel members Key Success Factors
  • 20.
    SWOT WEAKNESSES FROM WHEREIN THE ANALYSIS Taste and flavor Competitor Analysis Low recognition of bottle design Competitor Analysis Low price damaging brand image Competitor Analysis
  • 21.
    SWOT OPPORTUNITIES FROM WHEREIN THE ANALYSIS Increasing consumption of alcohol in social events Driving Forces Increasing taxation for other alcoholic beverages Product Life Cycle Increasing buying power of young population Population Demographics Increasing use of social media Technology / Infrastructure Increasing GDP per capita General Economic Conditions Increasing number of retailers, easy access to end users Driving Forces Decreasing consumption of local brands Product Life Cycle Increasing usage of credit cards Technology / Infrastructure
  • 22.
    SWOT THREATS FROM WHEREIN THE ANALYSIS Advertisement regulations Legislations / Regulations Regulation against sales after 10 pm Legislations / Regulations High taxation Product Life Cycle Increase in exchange rate General Economic Conditions Increasing health concerns Societal Values and Lifestyles Increasing competition Porter’s 5 Forces
  • 23.
    LOWCOSTGENERICSTRATEGY High price/performance ratioand high penetration in market Opportunities: • Rising taxation for other alcoholic beverages • Increasing usage of credit cards, • Rising buying power of young generation Cost leadership strategy: Damages our brand image MUST! Increasing exchange rates charge additional costs for imported products. Long-term sustainable competitive advantage: our competitors will suffer more due to costs currency
  • 24.
    IMPLEMENTATION:INCREASINGDISTRIBUTIONINTENSITY Who? ● Small groceriesand supermarkets in cities in which alcohol consumption is higher than other cities How? ● Increasing the availability of 35cl, 50cl and 100cl SKUs of JW Red in shelves Why? ● Serve more customers that have different needs. ● Increase market coverage
  • 25.
    IMPLEMENTATION: INCREASINGDISTRIBUTIONINTENSITY What do weneed? ● Additional allocated space ● More inventory costs and transportation costs ● New contracts with existing retailers for different SKUs Strengths/Oppurtunities? ● Increasing buying power of young population ● Incrasing number of retailers ● Good relationships with channel members Threats/Weaknesses? Recognition of bottle design is lower than our competitor: Chivas Legislations: One way to compete in this market is by efficient distribution channel.
  • 26.
    IMPLEMENTATION:STEALTHMARKETING-EKŞİSÖZLÜK Who? ● Customers whouse online platforms to compare products How? ● Having more positive reviews at Ekşisözlük about JW Red ● JW employees would write the reviews, a translator would post the reviews to Ekşisözlük in Turkish Why? ● Advertising regulations ● Customers rely on WOM to make purchase decisions ● Ekşisözlük is always at the top three results
  • 28.
    IMPLEMENTATION:STEALTHMARKETING-EKŞİSÖZLÜK What do weneed? ● To hire a part-time Turkish-English translator Strengths/Oppurtunities? ● Brand awareness ● High price/performance ratio ● Increasing use of online platforms to compare products Threats/Weaknesses? ● Advertising regulations ● High competitive rivalry ● High threat of substition
  • 29.
    IMPLEMENTATION:OPINIONLEADERS Who? ● Customers whofollow blogs and social media celebrities How? ● Having Keyif Adamı and Beyaz Yakalı Gurme to write positive reviews about JW Red Why? ● Customers are influenced by opinion leaders ● Advertising regulations
  • 30.
    IMPLEMENTATION:OPINIONLEADERS What do weneed? ● Contacting with opinion leaders ● Making payments according to the performance of the posts Strengths/Oppurtunities? ● High price/performance ratio ● Countr of origin and reliability ● Increasing use of social media Threats/Weaknesses? ● Low price damaging our brand image ● Advertising regulations ● High competitive rivalry
  • 31.