International Marketing Plan

GLOBAL MISSION STATEMENT COMPANY BACKGROUND CORE COMPETENCIES SWOT ANALYSIS ENVIRONMENTAL SCAN SOCIAL FACTORS 82% of the S. Korean population is 15+ years The average S. Korean adult consumers is 19.89 liters of pure alcohol per year Ranks 14th for most alcohol consumption in the world 81% drink spirits, 18% drink beer, 1% drink wine, and the remaining 1% drink other alcohol beverages Koreans drink alcohol to socialize Korean dramas and music videos are highly watched and copied Koreans are very aware of the power of the brand name Koreans are willing to pay more for better quality ECONOMIC FACTORS TECHNOLOGICAL FACTORS South Koreans are technologically savvy More inclined to online shopping than ever before Cyworld, aka the Facebook of South Korea Innovative facial recognition ads used to target adult males COMPETITIVE FACTORS Korea already has an established brand loyalty to their products Patron was introduced in Korea in 2007 as a luxury spirit Soju is a main competitor due to its traditional appeal, price competitiveness, and market ubiquity Behind soju, whiskey is 2nd in the spirit market in terms of overall sales POLITICAL FACTORS North Korea might declare nuclear war on South Korea Korea -Mexico FTA is pending South Korea is ranked 39th in the Global Corruption Index South Korea also stands strong in being environmentally green REGULATORY FACTORS Any product carrying the label “Tequila 100% Agave” must be only bottled within the Appelation of Origin area The Korea Food & Drug Administration is responsible for new-to-market spirit inspections The Korean law requires a Korean language label on imported spirits NATURAL FACTORS Mexico has a long history of hurricanes, droughts, volcanic eruptions, wildfires and extreme temperatures Jalisco has previously experienced an 8.1 earthquake, hurricanes, and floods that devastated the land Typhoon Kompasu hit the Seoul Metropolitan Area in September 2010 "Tequila Casa Noble holds in each and every one of its bottles the essence of our culture, the flavor of our land, the passion for perfection, an obsession to produce only the purest and authentic tequila. Nothing more. Nothing less." The company was founded in 1776 Our tequila is made from blue agave plants and aged in French oak barrels We utilize a triple distillation process We offer three award-winning products: Crystal, Reposado, and Añejo Distributed in 23 countries worldwide Casa Noble Tequila is 100% Organic Casa Noble Tequila is only produced in Jalisco, Mexico Casa Noble is a high-quality brand PLAN OBJECTIVES CUSTOMER ANALYSIS INDUSTRY ANALYSIS PORTFOLIO ANALYSIS PRODUCT-MARKET ANALYSIS MARKETING MIX RESOURCES REQUIRED & BUDGET ORGANIZATION CHART EVALUATION & CONTROL FINANCIAL NON-FINANCIAL Korea will improve Casa Noble’s market share by at least 50% We plan to break even in two years (June 2013) Focus most of our attention into brand awareness in the first few years By 2016, we will have a substantial hold in the Korean market so we can penetrate other large Asian markets Then expand to other global markets GLOBAL INDUSTRY ANALYSIS BUYER BEHAVIOR COMPETITOR ANALYSIS Alcohol consumption: 14th in the world (14.8 lt/cap) 65% is Spirits (9.57 lt/cap) 150 million 9-liter cases per year Revenue: 4.8% increase by 2009 $11.9 billion in Revenue 100% will purchase organic 69.2% willing to pay extra for quality tequila Korean have high demand for celebrity endorsed products Direct Competitor: Patron Imported Liquor: Scotch and Vodka Korean Brands: Soju, Hite, Cass, OB MARKET PRODUCTS EXISTING NEW NEW CURRENT Market Penetration: Increase Casa Noble Tequila sales in our existing markets Increase sales by implementing new and innovation sales promotion strategies Product Development: Develop new products such as limited-edition tequilas for existing markets that already has a loyal consumer base The new products can be customized to the needs and wants of our loyal consumers Market Development: Expand to South Korea with Casa Noble’s current product line South Korea is a relatively new market for high-end tequilas The demand for imported high quality product is high Brand building is an important factor in creating a product need in this market Diversification: There is potential risk given that Casa Noble Tequila limits its products to be carefully and timely produced in order to deliver the best quality tequila for our consumers. PRODUCT PRICE PLACE PROMOTION POSITIONING Purchasing Power Demand for high-end products Competitors Tariffs, Taxes MARKET SEGMENTATION TARGET MARKET Gender Alcohol consumption, males 28.85 Alcohol consumption, females 7.73 Location Average alcohol per capita consumption in South Korea 14.3 Average alcohol per capital consumption WHO Western Pacific Region 6.3 Limited Edition -Crystal- -Reposado- -Añejo- Economy Income Group High Income Behavioral Percentage of population that drinks alcohol 87.2% Seoul: Lotte Hotel Ritz Carlton Eden Garden NB Busan: Lotte Hotel Paradise Hotel CASA NOBLE TEQUILA IN SOUTH KOREA Eric Graciano Annie Nam Matthew Pollock Victoria Yuan Males over the age of 19 Upper-class Trendsetters such as celebrities and well-known socialites GANTT CHART RESOURCES REQUIRED BUDGET 500 more acres of land on our existing property. 15% increase of workers in the field. Work with South Korean government on regulations. SBK Distribution. No new offices in South Korea. No additional employee training in South Korea. Macro: •14th largest GDP in the world; 3rd largest in Asia •Ranks 13th in purchasing power parity (PPP) with $1.467 trillion in 2010. •Currency: South Korean Won (KRW) •10th largest importer of goods •Ranks 16th on Ease of Doing Business Index •South Korea still had a positive GDP growth rate during the recent economic recession Micro: •Ranked 1st in the world in spirits consumption. •In 2010, 8.5 million tourists visited South Korea, and 1.2 million expatriates live in South Korea. •96.4% of college students regularly drink. •The average monthly disposable income per household is approximately $3000 USD per month. BUSINESS DATA TO MONITOR FREQUENCY TO CHECK RESULTS MARKETING MIX MODIFICATIONS PUSH & PULL STRATEGY Initial Push strategy over the first 9 months (i.e. promotions & incentives). Once our product is known, use celebrities for pull strategy. Once Casa Noble is in the retentive stage, exclusively use a pull strategy. Fellow competing exporting spirits (i.e. Patron) Product growth rate World economy South Korean GDP June 2011 to June 2013 Check results every month for the first three months. On month four, check results after every quarter. Results will need to be checked for distribution purposes. Positioned as a high-end 100% organic luxury spirit Good reputation Appeal to eco-friendly customers Appeal to customers who desire luxury goods Standardization Casa Noble Tequila Production Adaptation Advertisement Promotion Korean Language label Price differentiation