Final Project

Export to Prague

June 23, 2013

International Business – MGMT598SABy Lutasha Tolliver, Antoinette Elliott, Selma Boudjemaa, Kervina Jolly , Francisco Hernandez Bernal,

Terry Coulon

What are blu eCigs?

Situation Analysis blu eCigs can provide a viable alternative to

traditional cigarettes.

Per the World Heath Organization, in the Czech

Republic 35.9% of men and 23.4% of females use

tobacco (World Heath Organization, 2012).

Smoking is still socially acceptable in Czech

Republic, but the tide is turning

Market Summary Estimated population of Prague: 1.21 million (Prague.cz,

2013)

Estimated 85.7% of Czech population is >14 years old (Czech Statistical Office, 2011)

Men and women are split 49/51(Czech Statistical Office, 2011) :

182,400 male smokers in Prague

123,750 female smokers in Prague

If 1% of Prague smokers switch to blu per year:

Starter kit revenue would be $214,000 for year 1

1 refill pack per week per customer = $2,388,000 for year 1

SWOT AnalysisStrengths

Well-established business model in United States

Five basic flavors plus seasonal flavors

Battery can be charged in specially designed case or by USB.

Electronic cigarettes are not highly regulated, and are less expensive

Weaknesses

Company is not known in Czech Republic

All manufacturing is done in United States; none in Europe

Name/color “blu” is integrated into branding, but there is a different word for “blue” in Czech language

Opportunities

Smoking is still prevalent and socially acceptable in Prague

Certain smoking bans are beginning to gain traction in the Czech Republic, which may push smokers towards e-cigarettes

Smokers perceive that e-cigarettes are safer than traditional cigarettes

Threats

Other e-cigarettes have been introduced to the Czech market

E-cigarettes have not been approved as a nicotine cessation product

Very few studies have been done on the safety of e-cigarettes compared to the number of studies on traditional cigarettes.

Competition Traditional Cigarettes (Euromonitor International,

2013)

Marlboro

Red & White

Petra

Start

Other e-cigarettes

V2 Cigs

Generic brands from China

Product DescriptionFirst time users starter kit contains the following:

One blu pack which holds 5 cartridges.

An additional carton of 5 cartridges with 5 different flavors and strengths.

One “atomizer” the heating element that serves to vaporize the liquid in the mouthpiece so that it can be inhaled

2 blu batteries

Outlet and USB battery charger

Refills are available at retail locations and on the website

Disposable option is also available in Classic Tobacco and Menthol

Financial Objectives Generate $7,800,000 in sales during the first 3

years.

Maintain prices lower than traditional cigarettes.

$70 for starter kits

$15 for refill packs (5 cartridges=5 packs of traditional

cigarettes)

$12 for disposable e-cigarettes

Efficiency in allocating advertisement budget in order

use the best value possible for marketing campaigns

Target Markets Geographic:

Prague, Czech Republic

Demographic:

Both Genders

18-55

Current smokers of

traditional or e-cigarettes

Psychographic:

Cost conscious

Wants to quit smoking

traditional cigarettes

Behavioral:

Loyalty

Way of Quitting Smoking

Product Related:

Nicotine

Cigarettes

Friendlier Product

Replace Cigarettes

Positioning blu eCigs are better than traditional cigarettes

Cheaper

Safer

More stylish

blu eCigs are better than other e-cigarettes

Easier to find (more retail locations)

Taste better

Not made in China, but in high-tech, quality controlled facility

StrategiesMain Strategy – Vs Traditional Cigarettes

Challenger: blu eCigs are better, cheaper, and safer

than traditional cigarettes

Other strategy – Vs Other E-Cigarettes

Leader: blu eCigs are more easily obtained, of

higher quality, more conveniently charged, and more

fashionable than other e-cigarettes

Marketing Mix Product: Deliciously flavored, conveniently

chargeable (or disposable) electronic cigarette

Promotion: Store displays, smart phone and tablet

application advertisements, social media, billboards,

sign in and near public transportation

Place: Local liquor stores, grocery stores, gas

stations, where ever traditional cigarettes are sold

Price: $70 for starter kit; $15 for refill packs; $12 for

disposable (slightly higher than in US due to cost of

export)

Marketing Organization

V.P. of Marketing – Czech Republic

Director of Strategy – Czech

Republic

Translation Manager

Translation Analyst

Translation Analyst

Marketing Research Manager

Marketing Research Analyst

Director of Advertising –

Czech Republic

Advertising Manager – Point

of Sale

Advertising Analyst

Advertising Analyst

Advertising Manager – Print

Media

Advertising Analyst

Advertising Analyst

Advertising Analyst

Advertising Manager –

Internet and Social Media

Advertising Analyst

Advertising Analyst

Conclusion We are confident that blu eCigs will be very

successful in Prague.

The situation will be closely monitored by our team,

measured by the following:

Sales vs Projections

Public Perception Surveys (online)

User Surveys (online)

The company is poised to take cultural issues into

account and manage diversity to make this

campaign successful

Import to the United States

Situation Analysis Glass products from the Czech Republic are prized on

the world market

Moser Glass would do well to begin providing glassware to banquet halls in bulk.

The United States has an appetite for luxury items

Many couples, from middle to upper class, are willing to spend extra for a luxurious wedding

Americans spend $8.3B per year on banquet services (IBIS World, 2013)

Banquet halls should upgrade their glassware to add to the enjoyment of the event experience and gain competitive advantage

Market Summay Census.gov lists 41,135 establishments with North American

Industry Classification System code 722320 – Caterers (U.S. Census Bureau, 2013)

If 1% of these business purchase and average of 400 glasses per year (the least expensive): Annual Volume: 411 x 400 = 164,400

Annual Revenue: 164,400 x $38 = $6,247,200

And an average of 400 piece of stemware (the least expensive): Annual Volume: 411 x 400 = 164,400

Annual Revenue: 164400 x $80 = $13,152,000

And an average of 2 punch bowls (the least expensive): Annual Volume: 411 x 2 = 822

Annual Revenue: 822 x $2,700 = $2,219,400

SWOT AnalysisStrengths

Quality and popularity of the glass products that we are selling

Moser glass is a well known brand

We can change direction quickly if we find that our marketing is not working

Weaknesses

Small marketing budget

High cost of production

Many competitors

Opportunities

There are many locations in the U.S. as a result a good opportunity for Moser glass would be mergers and joint ventures with other locations

Moving into other markets that offer improved profits

Branch out into markets where our competitors are not doing so well

Threats

Price wars with our competitors.

Competitors having new, innovative product that we currently do not have

The demand for our product going beyond our production capabilities

Competition Baccarat

Located in France; owned by U.S. company Starwood

Capital Group

Vietri

Located in Italy; largest exporter to America of Italian

tableware

Williams-Sonoma

Located in U.S.; popular high-end household goods store

Crate and Barrel

Located in U.S.; gaining popularity with upper-middle class

in the U.S.

Product Description Bohemian Crystal and Glass

Glasses

Stemware

Punch Bowls

Vases

Photo source: www.moser-glass.com/en

Hand Shaping and Blowing of the

Glass

Financial Objectives Generate $21.5M in sales during the first year.

Maintain premium pricing strategy:

Glasses: $38-$130

Stemware: $80-$300

Vases: $150-$15,000

Punch Bowls: $2,700-$15,000

Efficiency in allocating advertisement budget in order

use the best value possible for marketing campaigns

Target MarketsPrimary Market

Banquet Halls and Convention Centers with annual event and catering revenue >$1,000,000 per

year, and that cater to the following demographics:

Economic: Upper-middle class and upper class

Geographic: Urban and Suburban areas

Demographic: Men and women ages 30 to 65 years old.

Psychographic: Require a high-class experience

Secondary Market

Banquet Halls and Convention Centers with annual event and catering revenue >$500,000 and

<$1,000,000 per year, and that cater to the following demographics:

Economic: Upper-middle class and upper class

Geographic: Urban and Suburban areas

Demographic: Men and women ages 30 to 65 years old.

Psychographic: Require a high-class experience

Positioning For Exclusive customers, Moses Glass is the type of

elite gift that will provide a higher standard and unique

representation, because Moses Glass excels in

delivering a fashionable and elite presentation.

High Quality

Elite

Unique

Premium Product

Strategies Nicher

Banquet Halls and Convention Centers with high sales

Banquet Halls and Convention Centers with upper-

middle class and upper class clientele

Banquet Halls and Convention Centers that wish to

attract new customers of the upper-middle class and

upper class

Marketing Mix Product: glasses, stemware, vases, punch bowls

Promotion: Bridal Expos, Caterer Trade Shows,

Catering Magazines, Direct Mail, and Sales Calls

Place: Direct Order from Moser Glass

Price:

Glasses: $38-$130

Stemware: $80-$300

Vases: $150-$15,000

Punch Bowls: $2,700-$15,000

Exhibition: The Refined Element

Marketing OrganizationDirector of U.S. Banquet/Event

Marketing

Marketing Manager -Glassware

Senior Marketing Analyst –Stemware

Associate Marketing Analyst

– Stemware

Senior Marketing Analyst – Special Order Stemware

Marketing Analyst – Glasses and

Bowls

Marketing Manager –

Vases/Sculptures

Senior Marketing Analyst –

Vases/Sculptures

Associate Marketing Analyst

- Vases

Marketing Analyst - Sculptures

Marketing Research Manager

Conclusion Moser Glass is poised to add elegance and class to

any event with its glassware in the United States.

The situation will be closely monitored by our team,

measuring the following:

Sales vs Projections

Customer satisfaction surveys (mail or phone)

Public perception surveys (catering, bridal websites)

The company is confident that the American

marketing team can help make Moser Glass an

important name in the Event/Banquet industry.

ReferencesCzech Statistical Office. (2011). Final Census Results. Census of Population and Housing 2011: Basic final results. Retrieved from

http://notes.czso.cz/sldb2011/eng/redakce.nsf/i/final_census_results

IBIS World. (2013). IBISWorld Industry Report 72232: Caterers in the US. Retrieved from

http://clients1.ibisworld.com.proxy.devry.edu/reports/us/industry/ataglance.aspx?entid=1682

Euromonitor International. (2012). Tobacco in the Czech Republic. Retrieved from http://www.euromonitor.com/tobacco-in-the-czech-

republic/report

Prague.cz. (2013). Basic Prague and Czech Republic Info. Retrieved from http://www.prague.cz/aboutp.asp

United States Census Bureau. (2010). Statistics of U.S. Business. U.S.; all industries. Retrieved from http://www.census.gov/econ/susb/

World Heath Organization. (2008). WHO report on the global tobacco epidemic. Retrieved from

http://www.who.int/tobacco/mpower/mpower_report_prevalence_data_2008.pdf