internationalizing bulgarian rakia

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Introducing Bulgarian "Peshterska Grape” rakia to the Swedish publics Communication plan

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Page 1: Internationalizing Bulgarian Rakia

Introducing Bulgarian "Peshterska Grape”

rakia to the Swedish publics

Communication plan

Page 2: Internationalizing Bulgarian Rakia

Situation analysis: Internal

• The Company:

• The Product: "Peshterska Grape” rakia

Page 3: Internationalizing Bulgarian Rakia

What is the Unique Selling Point of Peshterska Grape rakia in Sweden?

Good after-dinner drink, reasonably priced and organically produced from pure Bulgarian grape.

Page 4: Internationalizing Bulgarian Rakia

Situation analysis: External analysisTarget country: Sweden

• Alcohol policy – restrictive national rules challenged by EU trade treaty

– Minimum age for shop sales is 20 years

– alcohol ads restrictions

– high taxation

– the Swedish alcohol monopoly – Systembolaget

Page 5: Internationalizing Bulgarian Rakia

This is Systembolaget

“Systembolaget, the Swedish Alcohol Retail Monopoly, exists for one reason: To minimize alcohol-related problems by selling alcohol in a responsible way, without profit motive.”

Page 6: Internationalizing Bulgarian Rakia

Market trends Economical trends

• More homogenous alcohol

consumption in Europe

• Alcohol consumption has recently

declined in Sweden

• More alcohol purchased at

Systembolaget

– Sales of spirits increased at 6.6

percent

• Recession has worsened in 2009

• Household consumption down

• Increased advertising in the

wine and spirits industry

• Consumers increasingly difficult

to interpret

Page 7: Internationalizing Bulgarian Rakia

Social trends

• More single person households• Swedes are becoming increasingly individualistic

and anti-authority• Rising demand for individually tailored products

and services• Consumer preferences less dependent on

geographic location• Increased focus on luxury and pleasure• Increased awareness of health and wellbeing

Page 8: Internationalizing Bulgarian Rakia

Cultural dimensions Hofstede

Page 9: Internationalizing Bulgarian Rakia

Technology, the environmentand social responsibility

• Awareness of climate change • CSR issues important• Fair Trade products more popular• Growing interest in organic products• Growing interest in locally produced products• Increased social conscience

Page 10: Internationalizing Bulgarian Rakia

Competitors &entry barriers:

• Sales trends − spirits– In Europe, sales of brandy, gin and other spirits by

volume are declining– Vodka and rum, which are often used as cocktail

ingredients, experienced most growth in the period 2003-2008

– Sales of whisky will increase

Page 11: Internationalizing Bulgarian Rakia

Segment trends - spirits

Aperitif Spiced distilled spirits Clear spirits Liqueurs Avec Whisky Malt whisky

1%

7%

39%

10%

5%

33%

5%

Market share*

Page 12: Internationalizing Bulgarian Rakia

Systembolaget sales trends – spirits

Aperitif Spiced distilled spirits Clear spirits Liqueurs Avec Malt whisky

3

1

2 2

3 3

New entries 2010

Page 13: Internationalizing Bulgarian Rakia

SWOT analysis: Vinprom Peshtera• Strengths:

the most popular brands on the Bulgarian alcohol market target in organic alcohol market Middle priced

• Weaknesses: Weak national brand No rand awareness in Sweden

• Opportunities: Premium pricing (compared to home market) Big market High bargain power of customers First-mover (the product doesn’t exist on the Swedish market)

• Threats: Strong competitors (vodka) Monopolistic retail system Cultural unacceptance

Page 14: Internationalizing Bulgarian Rakia

Target groups

• Drinking patterns in Sweden

only eatingmainly eatingmainly not eatingonly not eating

Page 15: Internationalizing Bulgarian Rakia

Target group

• Mature men and women with professions, single or with family, middle class, modern and busy life, enjoying nice healthy food with friends accompanied with a pure distinguished drink, don’t use a lot of media, online active though(reading also newspapers internet editions), do care for culture and art.

Page 16: Internationalizing Bulgarian Rakia

Communication objectives

• Knowledge: Brand awareness– After the campaign 30 % of the target group will

know about the new Peshterska rakia from Bulgaria

• Action– After the campaign 10% of the target group will

try the product

Page 17: Internationalizing Bulgarian Rakia

Communication strategy: Positioning & Message

• Positioning: Qualitative after-dinner drink with pure

organic ingredients, reasonably priced.

• Message:Enjoy Pure Alcohol !(in the home market: “From a good grape

– a good rakia”)

Page 18: Internationalizing Bulgarian Rakia

Media

• Webvertising in online editions of big newspapers:– http://www.aftonbladet.se/ (the most visited daily) – http://www.stockholmnews.com/ (in English)– http://www.thelocal.se/ (family readers)– http://op.se/ (economics)

• Print adverts in magazines:• http://www.hennes.egmont.se/(lifestyle, politics)

Page 19: Internationalizing Bulgarian Rakia

Website of the Peshterska Grape Rakia in Swedish

• www.rakia.se – Enjoy pure alcohol!– focus on organic origins and products– Rakia placement – Systembolaget; bars and

restourants

Page 20: Internationalizing Bulgarian Rakia

Labeling and Packaging

• Including a shot of the bottle in the print and internet ads will enhance brand awareness.

• The bottle of Pesterska Grape rakia is just as interesting as the rakia and this makes it an attractive gift.

• Ads and label focused on the healthy benefits of the drink.

Page 21: Internationalizing Bulgarian Rakia

Activity Plan

• Summer 2010 – sending a sample for testing to Systembolaget

• April 2011 – starting the communication campaign:– Consulting a local advertising agency – Producing the print and online adverts– Launching the adverts in the selected media

channels• Evaluation – June 2011