International Business 303

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International Business 303
Group C
Carina Loughner Carla Smith Joe Ranner Jason
Chester Benjamin Bray

• International Strategic Plan

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Guinness Sakura

• Strategic Plan

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SWOT Analysis (Strengths, Weaknesses,
Opportunities, and Threats)

• Strengths
• Basis for strong management team
• Key major customer acquired in Japan
• Products can evolve into range of offerings
• Good relations with vendors
• Very focused management and staff
• Well-rounded and managed business

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SWOT Analysis (Strengths, Weaknesses,
Opportunities, and Threats)

• Threats
• Major competitor may enter targeted market
  segments
• New technology may make products obsolescent
• Economic slowdown could reduce demand
• Market may become price sensitive
• Market segment's growth could attract major
  competition
• Over dependent on a few vendors
• Commodity markets could increase cost

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SWOT Analysis (Strengths, Weaknesses,
Opportunities, and Threats)

• Weaknesses
• Over dependent on borrowings - Insufficient cash
  resources
• Lack of awareness amongst prospective customers
• Emerging new technologies may move market in new
  directions
• Insufficient distribution channels in certain
  markets
• Poor crop year for barley

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SWOT Analysis (Strengths, Weaknesses,
Opportunities, and Threats)

• Opportunities
• Market segment is poised for rapid growth
• Export markets offer great potential
• Distribution channels seeking new products
• Changes in eastern consumer preferences to be
  similar to western preferences
• Sell products in countries around the globe

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Vision

• Have annualized sales of 345 million and be
  profitable
• Employ 5,000 people mainly engaged in production,
  sales, marketing, logistics, and administration
• Offer 10 core products

• Provide value added services to a large customer
  base throughout 20 markets in around 15 countries
  
• Offer high quality products
• Expand through organic growth and acquisitions in
  related beverage and technology market segments

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Corporate Values

• 1. We are passionate about consumers our
  curiosity and consumer insights drive our growth.
  
• 2. We value each other we seek and benefit from
  diverse people and perspectives.
• 3. We give ourselves the freedom to succeed we
  trust each other, we are open and seek challenge,
  and we respond quickly to the opportunities this
  creates.
• 4. We are proud of what we do and how we do it
  we behave responsibly with the highest standards
  of integrity.
• 5. We strive to be the best we are always
  learning, always improving.

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Business Objectives

• To expand the business aggressively and offer
  above-average returns to shareholders.
• To become a leading premium drinks business
  within the beverage market.

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Key Strategies

• We will invest more to take leadership positions
  in every category, market and consumer occasion
  in which we chose to compete.
• We will focus on brand growth
• We will invest more resources behind brands with
  the best growth prospects.
• We will set more ambitious goals for innovation.
• As part of our innovation agenda we will be
  putting an increased emphasis on premiumisation
• We will invest more in longer-term market
  opportunities Japan, Russia, India and China
  are current examples, there will be others.

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Major Goals

• Achieve sales of 800 million by 2010
• Report annualized profits of 450 million in 2008
• Secure 10 of the Japanese market segment by 2010
• Become largest supplier of premium beverages in 6
  countries within 8 years
• Employ 500 people for operations in Japan
  including 30 technically qualified by 2010
• Have new manufacturing plants in 2 key markets
  before 2012

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Guinness Sakura

• Promotional Strategies

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Advertising

• Guinness Sakura
• Sakura is the Japanese name for ornamental Cherry
  trees
• Sakura festival
• Sakura tree will be part of our advertising
• Slogan The flavor of business, the energy of
  youth

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Advertising

• Television advertising
• Watching television is very popular in Japan
• Dramas, news, and sport programs are the most
  popular program types
• Focus on sport programs
• Billboards
• Magazines
• Display stands

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Advertising

• Cell phone advertisements
• Much of the Japanese population own keitai denwa,
  or cell phones
• Wallpaper-like ads that pop up when an internet
  function is used
• Incur costs because of the technology and
  possible criticism
• Share liability and costs with non-competing
  companies

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Distribution and Pricing

• Sell the lager directly to wholesalers which will
  then distribute the product to vendors
• Found in vending machines, convenient stores, and
  bars
• Contained in glass or plastic bottles
• Sell in six packs, twelve packs, and twenty-four
  packs
• Initial price per bottle will be 218 yen
• Six packs for 740 yen
• Twelve packs for 1420 yen
• Twenty-four packs for 2034 yen
• May adjust prices as seen fit

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Guinness Sakura

• Questions?