Alfred Gratiens export marketing plan

An extensive review of the enterprise of Gratien’s new product launching in the

Asian Market

Overview

Market research Segmentation strategy Product planning Pricing strategy & decisions Place decision Promotional objectives & strategy Summary Q&A session

Market research

Key findings•Economic disparity•The ‘Asian Flush’•Large diversity of ethnicity & religion• Females drink less alcohol than males•Clear growth markets•Children treasured in China•Seven geographical areas of China

Segmentation strategy

Geographically

3 geographic areas North - Beijing, Tianjin,

Hebei Shandong East – Shanghai,

Yangshau South – Guangzhou,

Hong Kong

Demographically Urbanicity: Urban Income: 30,000 – 60,000 yuan Age: 14 – 35 Income producing assets:

Moderate Ethnicity: Han (91%), Mongol,

Tibetan, Dong Religion: Taoism, Buddhist, Shenism, Muslim Employment: White collar, Mix Education: Graduate Language: Mandarin, Cantonese,

Shangainese CIA WORLDFACTBOOK 2010

Adoption of a multi variable segmentation strategy

Segmentation strategy

Psychographic Social group – The

affluentials Life stage group –

Young accumulators Social grade B & A

Lifestyle Religious Health conscious Luxury seekers Fashion forward Traditionalist

Target market & positioning

Differentiated strategy

1. 20 – 35 Female market, traditionalist, health conscious, affluent urbanites,

town and city areas 2. 14 – 19 Teenage market, young

accumulators, opinion leaders, enthusiastic of foreign brands

Product Planning

A new non alcoholic premium champagne to enter the Chinese market• Organic qualities• Two sizes • Labelling to contain all regulatory information• TQM scheme • NPD process • Portfolio balance • Just to enter Chinese market initially due to extending downward• Seasonal limited edition packaging and labelling

HALF Half Bottle - 375ml(13 oz.)Equivalent to - 1/2 Bottle9.5" Length - 2.25 Diameter (241 x 57 mm)

Champagne Bottle - 750ml(25 oz.)Equivalent to - 1 Bottle11.5" Length - 3.5" Diameter (292 x 75 mm)

Dimensions

Perceptual Map

Price Alfred Gratien - Brut $13.00

Navarro – Chenin blanc $11.50

Ariel – Brut Cuvee $9.00

Quality Quality

Fre – All wines Brut, Merlot $5.00

Carl Jung – Merlot $4.00

Price

BCG Matrix for Gratien

Market share

Stars Question marks

Market growth

Cash Cows Dogs

Brut Classique NV Cuvee Paris brut rose

Brut Non-alcoholic Blanc de blancs

Place

Plan to assess each region separately due to Qui & Lin research – same strategy for all of Chinese regions dangerous

Will be sold to the consumer in hotels, bars and premium wine merchants

Long channel distribution channel

Place decisions

Distribution channelLong channel - B2C

Producer

Agent

Distributor

Retailer

Consumer

Distribution channelDirect short supply –

B2C(Internet order)

Producer

Distributor

Consumer

Pricing strategy

Objectives • Financial objective – focus on market share & position• Prestige pricing

Tactics • Price skimming • Trade in US dollar• Aim for elastic demand curve 1%• Use of a breakeven analysis • B2B promotional pricing • Zoned priced geographically for logistics

Wholesale - $ 6.00Recommended retail – 84.50 CNY ($13.00)

Promotional pricing strategy Focus on B2B market

Trade discounts Seasonal discounts

Mark-up pricing strategy

No promotional discounts to be used for consumers in store due to prestige of brand

Market share pricing objectives

Demand assessment – Breakeven analysis

Pricing strategy – Skimming

Mark-up decision

Negotiations – trade/distribution discount

Promotional strategy

Introduction stage on PLC – initial high expenditure

Objectives • Increase brand preference• Increase brand awareness• Stimulate search and repeat purchase

Corporate objective• Improve financial position• Improve portfolio balance

Promotional strategy

Promotional methods POS – point of sale

display & sites Exhibition feature – Food

& wine Social networks Sponsorship – broadcast

and brand collaboration Launch event in key

cities PR – women's weeklies Marketing seasonal

calendar

Media Channels TV

Internet Print

Billboard

Summary

Alfred Gratien have created a non alcoholic addition to strengthen its portfolio responding to promising growth market in China

Economic evaluation, religious consideration and lifestyle traits are paramount in China being the best location for the product variation

Long channel distribution, price skimming techniques and strong promotional aims will enable the Gratien brand to enter and succeed in the Chinese market

Thank you

Questions and answers are now welcome