bacardi case study
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BACARDI
DRINK RESPONSIBLY
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X -Treme
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Alcohol Drinks Market SizeAlcohol Drinks Market Size
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Alcohol Market Size 2006
1%
41%
1%
57%
Liquor RTD Beer Wine Cooler
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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%
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Economic Environment
Declined economic Declined economic Natural environment effect to materialNatural environment effect to material
Situation AnalysisSituation Analysis
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Industry AnalysisIndustry Analysis
5 Forces
Market Size
Market Structur
e
CompetitorAnalysis
CustomerAnalysis
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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.
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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
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Market sizeMarket size
MARKET SIZE (2001 - 2005)
0200400600800
1000120014001600
2001 2002 2003 2004 2005
MB
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Customer AnalysisCustomer Analysis
Who?
Who?
Female and male : Age between 18-30 years
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Love night life
Fun and Freedom
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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
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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
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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
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Market : Wine + 5% Alcohols + GasMarket : Wine + 5% Alcohols + Gas
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Company ProfileCompany Profile- Imported by Callbeck Mcgregor (Thailand) Co.,Ltd. in 2001
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- 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)
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Company ProfileCompany Profile
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Market share of RTD in 2006
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Company ProfileCompany Profile
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• 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
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WeaknessesWeaknesses
• Short Life Cycle Product
• Short Life Cycle Product• Inadaptability• Inadaptability
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Forecasting Market Size Forecasting Market Size
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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
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- Expand of On-Premise Channel
- High Purchasing Power
- Expand Market Size
- Customer Value
- Low Competitors
- Trend of Customer Lifestyle
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Opportunities Opportunities
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- 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
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STP AnalysisSTP Analysis
SegmentationSegmentation
Factor to segment
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Education
Income
Age
Sex
Life style
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Premium Super Premium
Medium
SegmentationSegmentation
Premium
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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
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Life style BrandLife style Brand
PricePrice
PositioningPositioning
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Brand ImageBrand Image Life Style
BrandLife Style Brand
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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
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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
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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
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On-PremiseOn-Premise
Price StrategyPrice Strategy
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On-Premise ChannelOn-Premise Channel60 % of Sales60 % of Sales
Place/Channel StrategyPlace/Channel Strategy
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Off-Premise ChannelOff-Premise Channel
40 % of Sales40 % of Sales
Other ChannelOther Channel
Changmai
Nakornratchasrima
Pattaya
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Advertising
TVRadio
Internet
PR Sales Promotion
Below the line
Event
Grand Opening
Free TrialSweepstakes
Pretty girl
Seasonal MarketingMusic MarketingSport Marketing
Sponsorship
Above the line
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Promotion (IMC)Promotion (IMC)
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Free TrialSweepstakes
Pretty girl
Advertising
TVRadio
Internet
PR Sales Promotion
Below the line
Event
Grand Opening
Seasonal MarketingMusic MarketingSport Marketing
Sponsorship
Above the line
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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)
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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)
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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
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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
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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
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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
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MonitoringMonitoringBalanced ScorecardBalanced Scorecard
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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
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MonitoringMonitoring
Balanced ScorecardBalanced Scorecard
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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%
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Question & Answer
Question & Answer