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Global Marketing Management Individual assignment
Anna Paterlini
I119446
October, 30th 2015
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Contents
1. EXECUTIVE SUMMARY ................................................................................................................... 3
2. THE COMPANY: GRUPPO CAMPARI ........................................................................................... 4
3. ANALYSIS OF MACRO-ENVIRONMENT ...................................................................................... 4
3.1. PESTLE ANALYSIS ............................................................................................................................ 5 3.2. PORTER’S 5 FORCES ANALYSIS ......................................................................................................... 9
4. IMPLICATIONS: RISKS AND OPPORTUNITIES ..................................................................... 12
5. RECOMMENDATIONS: STRATEGIES AND TACTICS ........................................................... 13
5.1. STP (SEGMENTATION, TARGETING, POSITIONING) MODEL ....................................................... 14 5.1.1. SEGMENTATION .......................................................................................................................................... 14 5.1.2. TARGETING .................................................................................................................................................. 14 5.1.3. POSITIONING ............................................................................................................................................... 14 5.2. MARKETING MIX OR THE 4PS OF MARKETING (PRODUCT, PRICE, PLACE, PROMOTION
STRATEGIES) .............................................................................................................................................. 15 5.2.1. PRODUCT ...................................................................................................................................................... 15 5.2.2. PLACE ........................................................................................................................................................... 15 5.2.3. PRICE ............................................................................................................................................................ 15 5.2.4. PROMOTION ................................................................................................................................................. 15
BIBLIOGRAPHY ...................................................................................................................................... 19
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1. Executive Summary This report aims to support Campari Group in the decision process of international
expansion in two new markets: South Korea and Indonesia.
Gruppo Campari is an Italian-based company active since 1860 in the branded
beverage industry and the sixth-largest player worldwide in the premium spirits
industry.
Both macro-environments have been analyzed and based on such results, it is
advisable that Campari Group prefers an expansion in South Korea and wait for
further development in the country’s policies and regulations for what concerns
Indonesia. Even though both markets are growing and promising, South Korea is
more stable politically, open to foreign companies and advantageous tax-wise.
Campari Group is renowned for its strategic growth based by way of acquisition,
therefore it is recommended to start buying into the local brand- Hite-Jinro Group -
to build new distribution platform.
Marketing objective: increase the company’s net sales of 2.0% with a
consolidated net sale of the RoW and Global Retail Travel region of 12.3%.
Target market: young (20-35 yrs) educated and well-travelled South
Koreans.
Products: Top Brands like Aperol and SKYY Vodka, Campari’s collection of
Sparkling and Still Wine (High Potential Brand) and the SKYY Vodka-based
ready to drink products (Key Local Brand).
Strategy: opposite to traditional marketing tactics of South Koreans
marketers based on “Hot-female-celebrity” to differentiate and distinguish
the brands. Guerrilla marketing based on a mix of flash mob, partnership
with local web-celebrities, brands and bars, web contests and
communication campaign on local social network KakaoTalk and YouTube.
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2. The company: Gruppo Campari Gruppo Campari traces its beginnings back to 1860, with the birth of its flagship
brand and signature, Campari (Gruppo Campari, 2013a). In the 1990s, Gruppo
Campari chose a route of international growth by way of acquisition and entering
growing markets (Gruppo Campari, 2013b).
As of today, Davide Campari-Milano S.p.A., together with its affiliates (‘Gruppo
Campari’), is a major player in the global beverage sector, trading in over 190
nations around the world with leading positions in Europe and the Americas.
The Group’s portfolio, with over 50 brands, spans spirits, the core business, wines
and soft drinks. Campari owns 16 plants and 2 wineries worldwide and has its own
distribution network in 19 countries. The Group employs around 4,000 people
(Gruppo Campari, 2013a). In FY 2014, the Campari group registered 1.5 billion
revenues (doubled business scale in the last 10 years) (Gruppo Campari, 2015b).
In 2015, it was the sixth-largest player worldwide in the premium spirits industry
(Intangible Business, 2015).
The alcoholic beverage market is a growing and highly competitive market -
generally, main competitors of the company are Diageo PLC, Beam Suntory Inc.,
Brown-Forman Corporation. Traditionally, Campari Group’s target market is Italy
(26,4% of the company’s sales), which has now been taken over by the Americas,
now the largest market for the company (38,8% sales) (Gruppo Campari, 2015b).
However recently, the company has been working towards reaching prominence in
the Asian and the Pacific area as well.
3. Analysis of macro-environment In order to evaluate the feasibility of the international expansion of the Campari
Group in South Korea and Indonesia, the analysis of the macro-environment of both
countries is essential. Two tools have been deemed appropriate: PESTLE analysis
and Porter’s 5 forces analysis.
a) PESTLE1 analysis is focused on the environment as a whole and therefore
on the systematic factors the company needs to chart out in its strategy.
b) Porter’s 5 forces analysis looks at the environment based on 5 segments
study, which are: (1) Rivalry among Competing Firms; (2) Potential entry of
new competitors; (3)Substitute Products; (4) Bargaining Power of suppliers;
(5) Bargaining Power of Buyers.
1 PESTLE stands for: P for political forces; E for economic forces; S for social forces; T for technological forces; L for legal forces, E for environmental forces.
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3.1. PESTLE Analysis
3.1.1. Political Forces
Since Campari Group operates worldwide, global political factors greatly influence
the performance of the company.
South Korea:
Country rating BB1
Legal drinking age: 19 yrs old
The nation has well-defined investment policies and support from
government and industry associations encouraging free trade. There are
enormous expansion opportunities for starting of business unit in South
Korea (BMI Research, 2015a).
South Korea is a firmly established democracy. There is political stability but
South Korea is engaged in territorial dispute with Japan over the Tokdo
Island, which South Korea controls under the name Takeshima. There is also
a dispute between North Korea and South Korea (Euler Hermes, 2015a).
In 2014 the Ministry of Health and Welfare launched a campaign last year to
have people restrain from heavy drinking (The Asahi Shimbu, 2012).
However, the South Korean media has not joined in on the campaign.
Indonesia:
Country Rating B2
Legal drinking age: 21 yrs old
Indonesian President Joko Widodohas struggled to maintain his popularity
since October 2014. This trend will likely to persist as Jokowi's anti-
corruption drive continues to falter, while a spate of counterproductive
measures and ongoing political uncertainty undermines business sentiments
and economic growth (BMI Research, 2015b).
Indonesia has had a prudent fiscal management and a sound macroeconomic
policy framework in recent years (Euler Hermes, 2015b).
Relatively good international relations (Euler Hermes, 2015b).
Ongoing (often violent) social, religious and/or ethnic conflicts in several
provinces (Euler Hermes, 2015b).
3.1.2. Economic Forces
These factors are the main point of concern for Campari Group, as they are most
likely to leverage costs, demand, profits and prices.
South Korea:
The South Korean economy is expected to witness significant growth over
the next five years and grow to $1.72 trillion by 2018 at the current price
(BMI Research, 2015a).
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Unemployment rate reaches only 3% and the country is considered the 4th
economy of all Asia and it is part of the World Emerging Markets (together
with Indonesia, Mexico, Turkey and Saudi Arabia) (Maniglia, 2014).
Labour market is well suited to attract foreign businesses. It boasts a high
level of education and employable skills amid reasonably high
unemployment. This means there is a large number of educated, skilled
labourers seeking work, representing significant opportunity for employers.
However, the major risks involve a shrinking labour force - the result of an
aging population - and the limitations and pressure placed on South Koreans
by the rigid education system. Overall, South Korea receives a Labour Market
Risk score of 67.6, placing it sixth out of 30 states in the Asia region (Lucintel,
2013).
As a medium-sized open economy (trade accounts for 107% GDP), South
Korea is structurally sensitive to external shocks (Euler Hermes, 2015a).
Even though stagnant salaries have been addressed as the primary culprit for
weak domestic spending, alcohol seems to be the one consumer sector doing
well (Chandran, 2015).
Indonesia:
Indonesia ranks among the more stable economies of the Asia Pacific region
(Lucintel, 2012), with a significant growth in its GDP over the last five years.
The average GDP growth rate from 2001 to 2012 was 5.4%, which made
Indonesia also one of the fastest-growing economies in Southeast Asia during
that period (Lucintel, 2012).
GDP growth slowed from 5.0% to 4.7% at the beginning of 2015 reflecting
deceleration in government expenditures and lower export growth. Private
consumption and investment proved resilient. Exports figures remains on a
downward trend and industrial production growth is volatile (Euler Hermes,
2015b).
The country has an advantageous position in terms of its young population.
The level of education plays a vital role in the development of better quality
human resources in the country. In Indonesia, the national literacy rate
stands at 92% and there is approximately 39% enrolment in tertiary
education, which is ample and indicates the quality of higher education
(Lucintel, 2012).
In 2012 the tourism sector contributes to around US$9 billion of foreign
exchange, and is estimated will surpassed US$10 billion in 2013. The tourism
sector ranked as the 4th largest among goods and services export sectors. In
year 2014, 9.4 million international visitors entered Indonesia, staying in
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hotels for an average of 7.5 nights and spending an average of US$1,142 per
person during their visit (Indonesian Invesment, 2014).
3.1.3. Social Forces
The type of goods and services demanded by consumers is mostly influenced by
their beliefs and attitudes, which, in turn, are influenced by social conditioning.
South Korea:
South Korea stood at 13th in the world in per capita alcoholic beverage (in
particular, distilled liquor) consumption in 2005, at 14.8 liters, far exceeding
Japan’s 8 liters and China’s 5.9 liters (The Asahi Shimbu, 2012).
South Koreans drink 13.7 shots of liquor per week on average, which is the
most in the world. (Ferdman & King, 2014). South Korea’s unparalleled liquor
consumption is almost entirely due to the country’s love for a certain
fermented rice spirit called Soju (97% of the country’s spirits market)
(Wirdana, 2015).
Indonesia:
The major source of domestic consumption in the country is its burgeoning
middle class (Lucintel, 2012).
Private consumption is set to remain solid supported by strong labour
market, strong real wage growth and improving consumer confidence (BMI
Research, 2015b).
Vast majority of Indonesians are Muslims who, though not all devout,
understand that alcohol is forbidden in Islam (Wirdana, 2015).
Singapore, Malaysia, China, Australia, and Japan are the top five sources of
visitors to Indonesia (Indonesian Invesment, 2014).
3.1.4. Technological Forces
This element has become a key factor for organizations in assessing and listing
issues that could have a potential impact on its operations and that could be critical
to its long-term future.
South Korea:
The country is a leader technology due to its success in manufacturing and
exporting cutting edge electronics products (McGlade, 2014).
Indonesia:
Indonesia has weak infrastructure in terms of railways and roadways. Poor
infrastructure presents obstacles in the growth of investment in the country
and is a major obstacle in industrial growth (Euler Hermes, 2015b).
As many other developing countries, Indonesia is not considered as world's
leading parties in science and technology developments (Maulia, 2010).
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3.1.5. Legislative Forces
Government policies and legislations also directly impact the performance of
Campari Group, particularly because the company markets a wide number of
products and services.
South Korea:
Liquor tax in South Korea is charged on alcoholic beverages at a rate between
5% and 72% of the sum of the CIF value and duty. It can also be specific, i.e.
charged per kg (Duty Calculator, 2015).
Indonesia:
In 2011, duty was changed from a flat tax per shipment to a per litre tax. The
resultant sharp rise in prices on an already heavily taxed spirits sector, led to
a drop in the retail volume market in that year (Mintel - Trends, 2015).
The Indonesian government has announced a new 150% duty on imported
alcohol that will inflate prices for consumers (Mintel - Trends, 2015).
Ministry of Trade issued a regulation on alcohol issued in 2015 which
regulates the sale of alcohol, banning the sale of “class A” alcoholic beverages
– those with less than five percent alcohol content– in all mini markets and
small shops across the country. Larger retailers, as well as restaurants and
hotels are still allowed to freely sell alcoholic drinks (Wirdana, 2015).
3.1.6. Environmental Forces
As a result of the increasing pressure on companies to address environmental issues
and to adopt ways of operations which what would benefit society, Campari Group
needs to be aware of environmental forces in both countries.
South Korea:
The environmental regulatory regime of South Korea is made up of statutes,
enforcement decrees, ministerial decrees and regulations that concern the
general environment. A separate permit for different types of emissions is
generally required under environmental law (Practical Law, 2012).
Indonesia:
Vulnerability to natural disasters (earthquakes, volcanoes, tsunamis) (Euler
Hermes, 2015b).
Campari’s business activities in Indonesia would impact the environment
and therefore required an environmental license (Euler Hermes, 2015b).
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3.2. Porter’s 5 Forces Analysis
3.2.1. Rivalry Among Competitor
South Korea:
Whiskies and other spirits accounts for around 94% of the market (Euler
Hermes, 2015b).
Hite Jinro Co maintained its solid leading position with 46% volume share in
spirits in 2014. The company recorded positive growth in actual volume
sales due to new Soju containing lower alcohol (Euromonitor International,
2015a).
Market Player % 2011 2012 2013 2014
Hite-Jinro Group 46,6 47,6 44 46,5
Lotte Group 16 15 17,2 17
Muhak Co., Ltd. 11,9 12,9 15 13,9
Kumbokju Co., Ltd. 7,9 7,9 10 9,9
Bohae Brewery
Co., Ltd
5,9 6 4,1 4
Diageo plc 0,4 0,3 0,3 0,3
Pernod Ricard S.A. 0,3 0,2 0,2 0,2
Others 11 10 9,2 8,2
Generally, South Korea is a growing competitive market, with competition
taking place mostly between local alcoholic drinks (soju, the largest selling
spirit in the world, with average of 20% alcohol) and imported spirits.
Indonesia:
Around 80% of spirits in Indonesia is dominated by national specialties in
2014 thus this trend is declining. The overall decline of domestic economy
spirits, however, will be cushioned by the healthy growth of imported spirits
in the country. Shifting lifestyles, especially among the younger generations,
have benefited sales of spirits via the on-trade as they are associated with
socialising and relaxing after work or during weekends. Consequently,
ongoing urbanization will support growth of such establishments as primary
channels to sell alcoholic drinks of primarily imported products.
Individual spirits companies do not have a sales presence in Indonesia, only
licensed importers have (Mintel - Trends, 2015).
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Market Player % 2011 2012
PT Mitra Indomaju 23,5 23
PT Pantja Artha Niaga
(PAN)
17,1 17,4
PT Indowines 12,9 12,8
PT Jaddi International 11 10,7
PT Aska Indoco (DIMA
Group)
9 9,1
PT Muliatama Mitra
Sejahtera
8,6 8,8
PT Danisa Texindo 7,2 7,1
PT Sarinah 6,3 7,1
Others 4,4 4
However, imported spirits are facing competition from black market spirits,
which are imported illegally and without proper duty paid marks. Priced
much lower than legally imported spirits, these black market products are
thriving, resulting in direct competition to legal spirits imported into the
country. The percentage of these spirits is estimated to be the highest
compared to other types of alcoholic drinks as spirits are classified as “type
C” alcoholic drinks that are subject to the highest import and excise taxes
compared to other types (Euromonitor International, 2015b).
3.2.2. Potential Entry of New Competitor
South Korea:
The strong brand identification of the product Soju and its equally strong
economy of scale (that allows trade nationwide) and the increase of the tax in
imported liquors, create difficult conditions for the entry of new competitors.
However, conditions in the market and buyers’ requests are changing.
Wine is promoted as being healthy and is priced more affordably than
whisky and so became a trendy choice for young Koreans (Mintel - Trends,
2015). Here, there is potential for new entrants.
Consumers are likely to move away from the heavy drinking culture, but they
will enjoy more of the lighter drinking trend with more diverse types of
alcoholic drinks. The trend will lead imported volume sales of spirits, beer
and wine in the near future, leaving space for you entrants in this specific
segment (Euromonitor International, 2015a).
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Indonesia:
In 2011, duty was changed from a flat tax per shipment to a per litre tax. The
resultant sharp rise in prices on an already heavily taxed spirits sector, led to
a drop in the retail volume market in that year. This is a high barrier for new
entrants.
Also, the new 150% duty on imported liquors (Mintel - Trends, 2015) is a
definitely a high barrier as it requires the company importing in Indonesia a
high investment.
3.2.3. Potential Development of Substitute Products
South Korea:
The demand from the market for products that are healthier and containing
lower alcohol create the potential for the development of substitute
products.
Indonesia:
Black market spirits, which are imported illegally and without proper duty
paid marks, are priced much lower than legally imported spirits and
therefore these products are thriving (Euromonitor International, 2015b).
3.2.4. Bargaining Power of Suppliers
South Korea:
Labour market boasts a high level of education and employable skills amid
reasonably high unemployment. This means there is a large number of
educated, skilled labourers seeking work, representing significant
opportunity for employers (Lucintel, 2013).
As Campari could rely on the production plant in Australia, this force is
generally not of great concern for the company.
Indonesia:
Indonesia has high quality human resources due to its good level of
education (Lucintel, 2013).
As Campari could rely on the production plant in Australia, this force is
generally not of great concern for the company.
3.2.5. Bargaining Power of Buyers
South Korea:
The low price and leading position of Soju, means that average amounts paid
per litre are low in South Korea. Most Koreans drink either Soju or Whisky
and other spirits are limited in their sales.
However, there was decrease in consumption of Soju & Whisky in 2010,
which was replaced by other types of alcohol such as Wines and Makgeolli.
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Wine is promoted as being healthy and is priced more affordably than
whisky and so became a trendy choice for young Koreans (Mintel - Trends,
2015). Buyers have therefore a strong bargaining power.
Indonesia:
Domestic products are mostly attractive to low income demographics that
purchase liquors for the purpose of getting drunk. These consumers usually
buy these drinks from off-trade outlets at traditional markets and sometimes
through illegal sellers (Euromonitor International, 2015b). They have a high
bargaining power.
However, burgeoning middle class is arising together with the number of
international tourists that reach they country every year. This target is likely
to have increasing less bargaining power, due to the multiple difficulties
posed from the government to foreign companies that want to import
liquors.
4. Implications: risks and opportunities Based on the analysis of the external environment, it is advisable that Campari
Group prefers an expansion in South Korea and wait for further development
in the country’s policies and regulations for what concerns Indonesia.
Both South Korea and Indonesia present very competitive markets, however for
different reasons (respectively an almost monopoly of domestic companies and the
illegal market).
However, South Korea is a high potential market with a large base of habitual
consumers while the current political and legislative situation in Indonesia is
further limiting an already contained customer base. If Campari succeeded in firstly
entering the market with the acquisition of part of one of the successful companies
in South Korea, it is likely the transition will be smooth. Entering the market in
Indonesia is likely to be more complicated and growth might not be steady, also due
to the fact that individual spirits companies do not have a sales presence in
Indonesia. The only way to break into the market would be to put a licensed
importer in charge of trading Campari’s product, which is not in line with the Group
growth strategy.
Therefore, for the sake of this report, expansion in the Indonesian market will not be
considered.
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5. Recommendations: strategies and tactics Results from the environmental analyses will inform marketing objectives. The
approach used in this specific case to assess the objectives is the SMART approach
that stands for Specific, Measurable, Achievable, Realistic and Time-based (Doran,
1981).
Also, with reference to the organic growth strategy of the Group, the SMART
objectives for the entry into the South Korean market are:
Buy into a local brand - Hite-Jinro Group - with strong equity to build new
distribution platform.
Within 12 months from acquisition:
Increase the company’s net sales of 2.0% with a consolidated net sale of the
RoW and Global Retail Travel region of 12.3% (FY 2014 10.3%, FY 2013
10.2%).
o Drive faster growth of Top 5 Spirits Brands and incubate High
Potential Brands.
o Generate steady growth of Key Local Brand.
In order to determine the best strategy and tactic to enter the South Korean model,
two models will be used:
1. STP model or Segmentation, Targeting and Positioning model is a useful
approach to identify the most valuable market segments, and then sell to
these successfully with carefully targeted products and marketing (Lancaster
& Massingham, 1988) (Smith, 1956).
2. Marketing mix or the 4Ps of marketing (Product, Price, Place, Promotion)
articulates the different kinds of choices the Group has to make in order to
bring a product or service to market. (McCarthy, 1964)
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5.1. STP (Segmentation, Targeting, Positioning) model
5.1.1. Segmentation Main segments in the South Korean spirits retail market are presented in the table
below.
Segment 2009 2010 2011 2012 2013 2014
Total 567500 547100 564300 577500 511600 563200
Other Spirits 559900 540200 557400 570600 505100 556500
Whiskies 5400 5200 5000 4400 4100 4300
Liqueurs 1600 1100 1200 1600 1400 1400
Vodka Based 200 200 200 400 500 500
Rum/Sugar Cane Based
100 100 100 200 200 200
Gin Based 0 0 100 100 100 100
Brandies & Brandy Type
200 200 200 100 100 100
Tequila 100 100 100 100 100 100
Anis/absinthe 0 0 0 0 0 0
A slow-down in the economy has contributed to an increase in the home partying
culture, and has helped other segments such as vodka, gin and other liqueurs grow
steeply. “Other spirits” comprises sales of mainly Soju. Its sales fell in 2013 as
consumers switched to beer and wine because they are considered healthier and it
is cheaper.
The main segment, “other spirits”, is pretty comprehensive of different age groups
and social classes, while the rising segment of beer and wine is mostly represented
by young educated and well-travelled South Koreans.
5.1.2. Targeting At first, it would be easier to break into the South Korean market targeting the
growing niche of young (20-35 yrs) educated and well-travelled South Koreans.
The young generation had experiences abroad and is likely to be already familiar
with some of the Campari Group’s most distinguished low-in-alcohol products,
spirits-based cocktails and wine. Only in a second phase, if necessary, Campari
Group could consider targeting the “Other spirits” consumers, but only when the
brand would be more established nationwide.
5.1.3. Positioning A slowdown in the economy has contributed to an increase in the home partying
culture and has helped segments such as vodka, gin and other liqueurs grow steeply.
Young generations in South Korea are much more concerned about health than
previous generations, they are therefore much more interested in “lighter drinks”
that are of good quality, made possibly with natural ingredients and cheaper than
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other spirits on the market. Lastly, being well travelled and more sophisticated,
young generations are much more interested in products that reflect this
characteristics, such imported foreign brands.
Campari Group should position its brand as representing high quality products, at
the same time sophisticated and fun while affordable and healthier than other
products, perfect for a party at home, for light bite in a bar or an informal dining
occasion.
5.2. Marketing Mix or the 4Ps of marketing (Product, Price, Place, Promotion Strategies)
5.2.1. Product As the target is much more concerned than other groups with health, status and
price, Campari Group is advised to enter the market with its more famous low-in-
alcohol products and wines.
Top Brands like Aperol and SKYY Vodka, Campari’s collection of Sparkling and Still
Wine (High Potential Brand) and the SKYY Vodka-based ready to drink products
(Key Local Brand) satisfy the customers’ needs for an informal drink, made with
natural products, affordable but foreign (gives status).
It is recommended Campari Group sub-divided its target by product:
Aperol and wine collection – across genders
SKYY Vodka – male
SKYY Vodka-based ready to drink - female
5.2.2. Place If Campari Group was to buy into the local brand Hite-Jinro Group, it would then
have a strong base to build new distribution platform fairly easily. When promoting
the new drinks, Campari should focus its efforts – particularly for Aperol and the
wine collection - on bars, wine bars and other places where dining is cheaper and
faster than in formal restaurants. For SKYY Vodka and SKYY Vodka related products
it is recommended the distribution in supermarkets nationwide, which is where the
target gets drinks for house parties.
5.2.3. Price In this specific historical moment, the target niche is price sensitive – therefore, the
price of the products should be commensurate to the price range of the places
where products are sold. It is however recommended the price stays mid-range as
very low pricing of the products might be perceived as low in quality too.
5.2.4. Promotion Quality on its own is usually not enough to win sales. Successful companies fascinate
customers with new ways to enjoy their products. Experiences that involve
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enjoyable social interaction are a viable way to trigger word-of-mouth promotion,
and widespread adoption.
Basically all alcohol manufacturers in South Korea use typical “Hot-female-celebrity”
marketing tactic, therefore Campari group should consider using well thought-out,
unique content– a guerrilla marketing tactic – to capture Korean youth’s attention.
In the specific:
• Aperol and wine collection Target: young South Koreans
Promotion: promote the idea of aperitivo, typical Italian informal get-together with
drinks and light snacks before or instead of dinner. In order to do so, promote the
drinks in trendy bar and wine bars in the business center of the main cities (Seoul,
Busan, Incheon, Daegu) and in proximity to universities during the happy hour.
With more than 39.4 million internet users in South Korea, internet penetration is
81%.
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Figure 1 Data from MVF, 2014
Using local social media platforms suck KakaoTalk can be especially beneficial to the
Group. KakaoTalk Plus Friend and KakaoTalk Story are two features that allow
brands to connect with consumers using updates, events, promotions and photo
sharing. Few foreign brands take advantage of the app, and this would be a great
competitive advantage of the Group.
• SKYY Vodka Target: young male South Koreans Promotion: SKYY is synonymous with quality, sophistication, and style. Promote
the drink with flash mob of flair bartending. Encourage the house party culture with
sponsored bartending courses and kit to be sold in supermarkets.
Support the spread of the flash mob video through a social media campaign in
association with a contest “Your SKYY experience” where customers are encouraged
to share pictures of their home-made drinks on KakaoTalk. The 5 best drinks win a
night in an exclusive night club in Seoul for themselves and 2 friends with SKYY
open bar.
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• SKYY Vodka-based ready to drink
Target: young female South Koreans
Promotion: SKYY is synonymous with quality, sophistication, and style. Promote
the drink through partnerships with South Koreans beauty vlogger and youtube
stars such LAMUQE’s Magic Up and Soutk Korean make-up products such Tony Moly
(http://eng.etonymoly.com/html/brand_intro.php#brandIntroOverview). Vlogger
are encouraged to develope a specific make up to match the different flavor of SKYY
infusion with Tony Moly products. Their followers are then encourage to post a
similar video with their own version of the “SKYY flavored” make-up in order to
take part to a contest. The 3 best make-up ideas win a 1-day workshop with Tony
Moly make-up artists in Seoul.
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