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Group C. Carina Loughner Carla Smith Joe Ranner Jason Chester Benjamin Bray. International Business 303. International Strategic Plan. Guinness Sakura. Strategic Plan. SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats). Strengths: Basis for strong management team
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Group C Carina Loughner Carla Smith Joe Ranner Jason Chester Benjamin Bray International Business 303 International Strategic Plan
Guinness Sakura Strategic Plan
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
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
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
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
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 Vision
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.
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.
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.
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
Guinness Sakura Promotional Strategies
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”
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
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
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
Guinness Sakura Questions?