BACARDI

DRINK RESPONSIBLY

BA620 Marketing Management

X -Treme

Alcohol Drinks Market SizeAlcohol Drinks Market Size

BA620 Marketing Management

Alcohol Market Size 2006

1%

41%

1%

57%

Liquor RTD Beer Wine Cooler

Social

Political Legal

Demography

Technology

Attitude to alcohol drinkAttitude to alcohol drink

Political situationPolitical situation Limit alcohol trading by law Limit alcohol trading by law

Not use complicated technologyNot use complicated technology

Target group 24% Target group 24%

BA620 Marketing Management

Economic Environment

Declined economic Declined economic Natural environment effect to materialNatural environment effect to material

Situation AnalysisSituation Analysis

Industry AnalysisIndustry Analysis

5 Forces

Market Size

Market Structur

e

CompetitorAnalysis

CustomerAnalysis

BA620 Marketing Management

Premium : local made productsprice 45 - 75 Bht.

Premium : local made productsprice 45 - 75 Bht.

Market StructureMarket Structure

Medium : local made productsprice < 35 Bht.

Super-premium : imported productsprice > 75 Bht.

BA620 Marketing Management

Industry Analysis : Five-ForcesIndustry Analysis : Five-ForcesNew Entry

Substitution Product

Customer

Bargaining Power Suppliers

Competitor

No new entry because of no business motivation

Only 3-4 brands in the market

Customer cannot perceive the difference between RTD and other low alcohol drinks

High of customer bargaining and low brand loyalty

Low : Not complicate production, many manufacturers and common packaging

BA620 Marketing Management

Market sizeMarket size

MARKET SIZE (2001 - 2005)

0200400600800

1000120014001600

2001 2002 2003 2004 2005

MB

BA620 Marketing Management

Customer AnalysisCustomer Analysis

Who?

Who?

Female and male : Age between 18-30 years

BA620 Marketing Management

Love night life

Fun and Freedom

Marketing Strategy : Make Brand AwarenessMarketing Strategy : Make Brand AwarenessIngredient : VodkaIngredient : Vodka

Alcohols : 5%Alcohols : 5%Made In : Thailand (TIS 1997)Made In : Thailand (TIS 1997)

Competitor AnalysisCompetitor Analysis

Direct Competitor Direct Competitor

BA620 Marketing Management

CruiserCruiser nitenite

CruiserCruiser

Alcohols : 5%Alcohols : 5%

Marketing Strategy : Experience MarketingMarketing Strategy : Experience Marketing

Made In : Thailand (TIS 1997)Made In : Thailand (TIS 1997)

Ingredient : Fruit WineIngredient : Fruit Wine

nitenite

Indirect Competitor Indirect Competitor

Wine Cooler Wine CoolerSPYSPY

Target Customer : Age Between 18 - 25Target Customer : Age Between 18 - 25

Product : SPY Black 7% AlcoholsProduct : SPY Black 7% Alcohols

Competitor AnalysisCompetitor Analysis

SPY BlackSPY Black

Alcohols : 7% Alcohols : 7%

Target Customer : Men Target Customer : Men

BA620 Marketing Management

Market : Wine + 5% Alcohols + GasMarket : Wine + 5% Alcohols + Gas

Company ProfileCompany Profile- Imported by Callbeck Mcgregor (Thailand) Co.,Ltd. in 2001

- Imported by Callbeck Mcgregor (Thailand) Co.,Ltd. in 2001

- In 2004, Bacardi Company (Bermuda) repurchase stock and came to invest in Thailand 100%

- First 4 Bacardi launched to market : Blueberry, Lemon, Lime and Orange

- New product : Launched in 2005, Lychee taste (Only Thailand)

BA620 Marketing Management

Company ProfileCompany Profile

Market share of RTD in 2006

BA620 Marketing Management

Company ProfileCompany Profile

BA620 Marketing Management

• Brand Building

• Brand Building

• Brand Strenght

• Brand Strenght

• Capital• Capital

• Quality of Product • Quality of Product

• Distribution• Distribution

• Variety of flavor

• Variety of flavor

StrenghtsStrenghts

WeaknessesWeaknesses

• Short Life Cycle Product

• Short Life Cycle Product• Inadaptability• Inadaptability

BA620 Marketing Management

Forecasting Market Size Forecasting Market Size

BA620 Marketing Management

ข นาดตลาดเครื่�องด� มแอลกอฮอล�ผสมพรื่�อมด� ม(RTD) ปี� 2550-2552

875 900 925

700750800850900950

100010501100

2550 2551 2552

พ.ศ.

ล�านบาทForecasting Market Size RTD

Million Baht

20082007 2009

0

- Expand of On-Premise Channel

- High Purchasing Power

- Expand Market Size

- Customer Value

- Low Competitors

- Trend of Customer Lifestyle

BA620 Marketing Management

Opportunities Opportunities

- Alcohol Product

- Legal

- Product Short Lifecycle

- Trend of Healthy

- Expand Market Size

- Indirect Competition

- Image of Product

- High Tax Rate

- Small Market Size

- Customer Behavior

ThreatsThreats

STP AnalysisSTP Analysis

SegmentationSegmentation

Factor to segment

BA620 Marketing Management

Education

Income

Age

Sex

Life style

Premium Super Premium

Medium

SegmentationSegmentation

Premium

BA620 Marketing Management

Target ConsumersTarget Consumers

Gender : Female / Male Age : 26 – 30Earning : More than 10,000Education : Cover all educational levelLife Style : Social drinkers, Modern Society

First Target Group

Gender : Female / Male Age : 18 - 25Earning : More than 10,000 Education : Cover all educational levelLife Style : Social drinkers, Modern Society

Second Target Group

Life style BrandLife style Brand

PricePrice

PositioningPositioning

Brand ImageBrand Image Life Style

BrandLife Style Brand

BA620 Marketing Management

Product LineProduct Line

• Lychee• Lychee

• Blueberry • Blueberry

• Orange • Orange

• Lemon • Lemon • Lime • Lime

New logo “X-TREME”

Rum-based plus Tonic

Alcohol up 5.6% to 7%

Strong Label(Dark tone)

Same Size 275 Ml.

New BACARDI X-TREME

New BACARDI X-TREME

Product StrategyProduct Strategy

Objective & TargetObjective & Target Key Results Indicator Current Target

Area 

Performance

25

50

25

51

25

52

Revenue Million Bah

t 425

48

0

54

0

58

0

ROS % 12. 20. 28 30.

Market Share % 50 55 60 63

New Flavor Flavor 1 1 1 1

- On premise Channel

Outlet 110 130 150 180

49-55 Baht / bottle

49-55 Baht / bottle

Up to 70-110 Baht per bottle

Up to 70-110 Baht per bottle

Off-Premise

Off-Premise

BA620 Marketing Management

On-PremiseOn-Premise

Price StrategyPrice Strategy

On-Premise ChannelOn-Premise Channel60 % of Sales60 % of Sales

Place/Channel StrategyPlace/Channel Strategy

BA620 Marketing Management

Off-Premise ChannelOff-Premise Channel

40 % of Sales40 % of Sales

Other ChannelOther Channel

Changmai

Nakornratchasrima

Pattaya

Advertising

TVRadio

Internet

PR Sales Promotion

Below the line

Event

Grand Opening

Free TrialSweepstakes

Pretty girl

Seasonal MarketingMusic MarketingSport Marketing

Sponsorship

Above the line

BA620 Marketing Management

Promotion (IMC)Promotion (IMC)

Free TrialSweepstakes

Pretty girl

Advertising

TVRadio

Internet

PR Sales Promotion

Below the line

Event

Grand Opening

Seasonal MarketingMusic MarketingSport Marketing

Sponsorship

Above the line

BA620 Marketing Management

RadioRadioT.V.T.V.Internet &Magazi

ne

Internet &Magazi

ne

I Love the Night LiveI Love the Night LiveI Love the Night LiveI Love the Night Live

Five LiveFive LiveFive LiveFive Live

Seed TVSeed TVSeed TVSeed TV

FM 95.5 Virgin HitzFM 95.5 Virgin HitzFM 95.5 Virgin HitzFM 95.5 Virgin Hitz

FM 97.5 Seed FMFM 97.5 Seed FMFM 97.5 Seed FMFM 97.5 Seed FMM-Web , SanookM-Web , SanookM-Web , SanookM-Web , Sanook

A-Day , FHM , MTV A-Day , FHM , MTV MagazineMagazineA-Day , FHM , MTV A-Day , FHM , MTV MagazineMagazine

Promotion (IMC)Promotion (IMC)

Bartender Contest Bartender Contest Bartender Contest Bartender Contest Sponsorship X-Game Sponsorship X-Game SportSportSponsorship X-Game Sponsorship X-Game SportSportPattaya music Pattaya music Pattaya music Pattaya music

Grand Opening

Valentine Valentine DayDayValentine Valentine DayDay

PR Sales Promotion

Below the line

Event

Free TrialSweepstakes

Pretty girl

Seasonal MarketingMusic MarketingSport Marketing

Sponsorship

Promotion (IMC)Promotion (IMC)

BA620 Marketing Management

Central Airport Plaza Central Airport Plaza (Chiangmai) (Chiangmai) Central Airport Plaza Central Airport Plaza (Chiangmai) (Chiangmai)

Center Point (Bangkok)Center Point (Bangkok)Center Point (Bangkok)Center Point (Bangkok)

The Mall The Mall (Nakornrachasrima)(Nakornrachasrima)The Mall The Mall (Nakornrachasrima)(Nakornrachasrima)

Free Premium& Free TrialFree Premium& Free TrialFree Premium& Free TrialFree Premium& Free Trial Pretty Girl & Pretty Girl & Handsome BoyHandsome BoyPretty Girl & Pretty Girl & Handsome BoyHandsome Boy

Songkarn Songkarn FestivalFestivalSongkarn Songkarn FestivalFestival

HalloweeHalloweennHalloweeHalloweenn

New year New year festivalfestivalNew year New year festivalfestival

Action PlanAction Plan1 2 3 4 5 6 7 8 9 10 11 12

1 Product Sales / Mkt

- New label design 30,000

2 Promotion (IMC) Sales / Mkt

1. Advertising:

- TV 13,200,000

- Radio 3,456,000

- Internet 660,000

- Magazine 628,000

3 PR & Publicity: Sales / Mkt

- Center Point(Bangkok) 2,000,000

- Central Airport Plaza (Chiangmai) 1,000,000

- The Mall (Nakornrchasrima) 1,000,000

4 Sales Promotion: Sales / Mkt

- Free Trial 1,600,000

- Free Premium 2,700,000

- Pretty girl & Handsome boy 7,000,000

5 Event Marketing: Sales / Mkt

- Seasonal Marketing 7,500,000

- เทศกาลวาเลนไทน์� - เทศกาลสงกรานต์� - เทศกาล Halloween

- เทศกาลลอยกระทง - เทศกาลป์�ใ หม์� - Music Marketing 5,600,000

- Sponsorship 2,000,000

- Sport Marketing 2,200,000

- Bacardi Boy & Girl contest 2,500,000

Total: 53,672,000

No.

Year 2007

BudgetInchargeProject

MonitoringMonitoringBalanced ScorecardBalanced Scorecard

PerspectiveIndicato

r Plan ActualB/

(W)

Sales growth % 13%

Profit margin % 34%

ROS % 2%

Cost per channel Mil Baht 17

Revenue from new flavor

Mil Baht 35

Inventory turnover Time 8

Fin

an

cia

l

25502550

BA620 Marketing Management

PerspectiveIndicato

r Plan ActualB/

(W)

Market Share % 55

% of Customer Satisfaction

% 45

Rating from customer Survey

Ranking 1

Brand Awareness % 90

Cu

sto

mer

25502550

BA620 Marketing Management

MonitoringMonitoringBalanced ScorecardBalanced Scorecard

PerspectiveIndicato

r PlanActu

al

B/(W)

No. of new flavor Flavors 1

Time to Market Days 270

No.of on-premise Channel Outlets 3

Turnover rate % 3

% of feedback from

customer % 10

Inte

rnal

Learn

ing

&G

row

th

BA620 Marketing Management

MonitoringMonitoring

Balanced ScorecardBalanced Scorecard

Pro forma Income Pro forma Income Statement Statement

(Unit: Mils Baht) 2007%

growth

2008 %growth

2009

%growt

h

Revenue 480 13% 540 12% 580 7%

Less COGS (317) 12% (356) 12% (383) 8%

Gross Profit 163 184 197

Less Selling&Admin Exp.

(152) 25% (169) 22% (182) 17%

Other expenses (6) (6) (5)

Income Tax 30% (2) (3) (3)

Net Income 10 15 50% 18 20%

Market Share 55% 60% 63%

BA620 Marketing Management

Question & Answer

Question & Answer