Global Marketing Strategy

Content

I. International environment
1. U.E Market
2. Production

II. Quantitative & Qualitative demand
1. Quantitative Aspects
2. Qualitative Aspects

III. Competitive analysis
1. Pernod Ricard
2. Bacardi Martini
3. LVMH
4. Diageo

IV. Intern Resources
1. Human Resources
2. Financialresources

V. SWOT analysis
1. Strenghts
2. Weaknesses
3. Opportunities
4. Threats

VI. Rémy Cointreau foresight

VII. Recommandations
1. Targeting youth

2. Expanding its product range

3. Foothold in emerging markets

4. Continue his creative strategy

I. International environment

The worldwide spirits’ market is expected torecord a growth of 46% between 2005 and 2014, to reach 230 billion dollars in 2014, according to the English cabinet ISWR’s figurespresented at the Vinexpo living room.
If the market marked time in 2010 (- 2,11%), it should increase by 9,5% in value over the period 2010-2014. Aprogression which should be approximatively the same for all the geographical zones (Asia, Europe, Americas). Asia,where most people consume local products is largely at the top of consumption with 44% of the world purchases.

“Local” alcohols (in particular alcohols containing rice) represent more than 60% of the spirit worldwide consumption, but they are in fall to the detriment of the alcohols markets by the large international actors of the market like Diageo or Pernod Ricard.
Vodka confirms its leadershipwith 488 million cases sold in 2010.
In volumes, the spirits’ marketis expected to increase by 9% over the period 2005-2014 to reach 2.741 billion cases of nine liters (the Unit of Account of the world commerce of the spirits) in 2014.

1. U.E Market

In 2009 the European spirits’ market in represented:
• A total production of 38 million hectolitres (one hectolitre equals to 100litres) of spirit drinks
• Domestic sales of 26 million hectolitres of spirits (including spirits imported from outside the EU). These sales reach 58 billion euros
• An export volume (intra-EU27 and extra-EU27) of 24 million hectolitres of final product, worth 10 billion euros.
• Spirit drinks are the EU’s most exported foodstuff. In 2009, the spirits industry exported 5.7 billion eurosworth of spirit drinks to countries outside the EU, generating a positive trade balance for the EU of 4.8 billion euros.

Because of the aforementioned characteristics the contribution of the spirits industry to the economy of the European Union is significant: more than 900,000 jobs are related directly or indirectly to the production and sales of spirit drinks.

The European spirit drinkssector is responsible for 68,000 jobs across Europe. The other jobs generated by the production and sales of spirits are created in the supplying sectors (118,000 jobs), the hospitality (638,000 jobs) and off trade outlets (85,000 jobs). The most important supplying sectors are the agricultural sector, the bottling and the packaging industry.
The total value-added attributed to the production andsales of spirits in Europe are estimated at approximately 27 billion euros.

Total revenues for the national governments is estimated at 31 billion euros.

2. Production

European Union countries play a major role on the world beverage market. Europe’s spirit drinks industry is the largest in the world. In 2009 the European spirit drinks producers produced 38 million hectolitres ofspirit drinks. European spirit drinks such as French cognac, Scotch Whisky and Swedish vodka are sold around the world. The EU spirit drinks market is very varied, from large producers to smaller independent distilleries, producing a great variety of drinks, making it impossible to provide an exact production breakdown into the various types of spirits. The following graph illustrates the production…