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TEAMWORK 9

Mira Idri Sabrina Legros Anthony Maini Laura Mouysset 1) Present the company : mission of the company, values, activity, size, etc using a SWOT analysis Pernod Ricard was born in 1975 by rapprochement of Ricard and Pernod. Today this company is the world's co-leader in Wines & Spirits. The Holding Company is located in Paris, where 200 people work at the headquarters. The main ambition of Pernod Ricard is to become the number one undisputed industry. The company is already the leader in the premium segment, the most dynamic industry. Pernod Ricard has chosen a model of long-term growth. This model of growth is based on a systematic strategy to move upmarket, Premiumisation and Innovation, understood as a value accelerator. The Group's development model is based on five pillars • The Five pillars of Pernod Ricard - A complete portfolio international premium brands Pernod Ricard has built a unique portfolio of premium brands on an international scale since its creation, but especially during the last 10 years. This portfolio covers all types of Wines & Spirits is it is now illustrated by the concept of "House brands » includes priority Group brands in three areas: The "Top 14", which includes 14 strategic brands of spirits and champagnes , wine pole with 4 Premium wine brands, 18 key local brands. The Top 14 is composed of: Two "global icons" - ABSOLUT vodka and Chivas Regal Scotch whiskey - Seven Premium spirits brands such as Ricard pastis, Ballantine's whiskey, Jameson Irish whiskey, Havana Club rum, Beefeater gin, Kahlua and Malibu liqueurs Five brands of spirits and champagnes Prestige Martell cognac, whiskeys and The Glenlivet Royal Salute, champagne and Mumm and Perrier-Jouët.

-Premiumisation" and Innovation "Premiumisation" and Innovation are the principles values that accelerated the growth of the company. In 2012/2013, Premium brands accounted for 75% of sales of Pernod Ricard. The company has made innovation a growth accelerator and is one of the largest investors in the marketing sector. - Decentralization In its sector of activity Pernod Ricard has a unique organization based on 6 Brand Companies and 80 Brand Companies Market. Very well established internationally, Pernod Ricard is the leader in many Asian markets such as China and India. Pernod Ricard is one of the best positioned groups to benefit from the growth of these markets, the most dynamic sector. -The corporate culture The corporate culture Pernod Ricard is a real competitive advantage; it is expressed through a friendly attitude. The 19,000 employees of the company share that culture every day. This spirit Pernod Ricard is supported by the signature "Creators of conviviality." The corporate culture is based on three values: - The entrepreneurial spirit, - Mutual trust, - Sense of ethics. They are constantly encouraged by a policy of human resource management that promotes leadership skills, mobility and diversity. - Ethical commitment Pernod Ricard formalized in a new platform for corporate social responsibility (CSR) these four priorities: - Policy of responsible consumption, - Reducing the environmental impact - Sharing cultures, - The promotion of an entrepreneurial culture.

• Key figures of Pernod Ricard - The world's number one premium spirits and Prestige - € 8,575 million turnover - M € in 2230 operating profit - M € 1189 net income, Group share - 19,000 employees - 80 Companies Market spread over 4 regions - 96 production site

• SWOT

2) Define the product/service: present the Unique Selling Points of the product/service and the type of product (B2B or B2C) that is going to be marketed Ricard is the first-ever product, it was created in 1932, ( Pastis 51 was created in 1951) so Ricard is considered as the TRUE pastis and the other are only copies. Its biggest competitor is the Pastis 51 , they belong both to the same company : Pernod Ricard. Ricard has the highest quality but the highest price too. After Diageo, Pernod Ricard, is the world’s secondlargest manufacturer of spirit with a leading market position on all continent except in Asia. The company is the leader of spirits in France & in Belgium. Ricard is the most sold pastis in France. Ricard is considered as a Premium strategic brand of Pernod Ricard. The Ricard is a Business to consumer product. 3) Define the priority market and justify your decision First Chinese are an important target of Alcohol market. China can be the priority market because Pernod-Ricard is an important actor of the Spirit & Wine market. The French alcohol and particularly the French wine have a strong reputation in China. Pernod-Ricard has already cooperate with a famous company of Chinese wine to entry in the Chinese Market. The Ricard is absent in Chinese market that's why Pernod Ricard can introduce its famous product. Star Anise is product in China, and it is an important ingredient of the Chinese gastronomy by this way the Ricard can be really appreciate. Moreover, according to the Pernod-Ricard website, the company wants to invest in Asia to fight against Diageo ( the first manufacturer of Spirit in the world).

4) Present the results of the market study (i.e. opportunities and threats) As noted above, China may be the primary market for Pernod Ricard as French wine has a high esteem in China, and the Chinese are demanding more and more. There are several opportunities for Pernod-Ricard to penetrate the chinese market, first the Chinese demand for cognac and whiskey is increasing and by this way Pernod Ricard took the opportunity to raise prices in China The market share of 48% in sales volumes of spirits isin China and China has become the fifth largest consumer of wine in the world (1.9 billion bottles purchased in 2011). The Chinese market has some threats: Nowadays, the Tax increases at the entrance of the Chinese market, so it's less interesting for the foreign companies. There is an anti-luxe policy that encourage Chinese people to a less conspicuous consumption (behavior change since the arrival in power of the new Chinese government team). In addition there is a slowdown of the Chinese market.

5) Present an Export marketing plan on the foreign market (marketing strategy: product; place, incl. mode of presence; pricing and promotional strategies, incl. prospection • Product: Ricard is a french beverage with many attributes :  Tangible attributes : Natural ingredients (anise, liquorice and provencal herbs), a famous packaging which reminds of the big history of Ricard, different sizes for the bottles, adapted to all kind of thirst.  Intangible attributes : French beverage (France is famous all over the world for its alcooholic beverages such as wine and more generally for its gastronomy), France, when it concerns beverages, represents high quality all over the world, product with a strong local history in Marseille (authenticity of the product), brand present since 1932.  

Ricard is a global product : it is sold in France but also all over

Europe. Global product development : standardization. The company has to standardize its product to China because it has to develop the exact same product for all countries : Ricard is based on authenticity of its recipe, that has existed since 1932. There are many advantages : the company can have economies of scale and scope by producting a large quantity of its product, and as a consequence be price competitive. It also allows it to have an uniform image.

 Promotion : The Promotional Strategy is a Pushing Strategy : the product won’t be sold directly to the end user, so Ricard has to promote its product to the members of the marketing channel. It will have to promote it to restaurants, bars, supermarkets… As Ricard won’t sold directly to the end user, its sales promotions will be Trade-Oriented. The sales promotions will be geared to marketing intermediaries in China. To establish a brand awareness in China, Ricard has to be present in Trade Shows. In China, there’s an international trade fair dedicated to alcooholic beverages called Tang Jiu Hui. Ricard

could have a stand there to show its product. There’s also another trade show for the same kind of products, called Guizhou. Ricard has to present as much as possible in those kind of trade shows to create a brand awareness but also to find the intermediaries that will sel lits product to the end user.

 Pricing Pernod Ricard has established a penetration strategy with low price for its wine. But for Ricard it's different because it is a premium product like Whisky and Cognac. Pernod Ricard has to choose a skimming price strategy. The Chinese price has to be high. In addition, Pernod Ricard has a luxury point in Carrefour & Walmart in China and every year the price of Cognac is increasing.

 Place Pernod Ricard to penetrate the Chinese wine market has choosen to create a joint Venture with Yao Ming. This joint venture will help Chinese to discover Pernod-Ricard and obtain their trust. By the way Pernod-Ricard has created a distribution companies called : Pernod Ricard Asia which is a subsidiary. Thus to export The Ricard and the other products, the best mean is a distribution under total & direct control because Pernod Ricard has already a home-base department with an export service and in China there are representatives of the company.

Sources : http://pernod-ricard.fr http://www.ricard.com/ http://www.usinenouvelle.com/article/pernod-ricard-une-nouvelle-ere-s-ouvre.N180984 http://tempsreel.nouvelobs.com/economie/20130425.REU2781/la-croissance-depernod-ricard-ralentit-au-3e-trimestre.html http://pernod-ricard.com/948/press/news-press-releases/headlines/pernod-ricardchina-exclusive-distributor-of-yao-mingr-wines-in-china http://www.lemonde.fr/economie/article/2013/06/06/pernod-ricard-investit-dansle-vin-chinois_3425372_3234.html http://www.lefigaro.fr/flash-eco/2012/03/20/97002-20120320FILWWW00574pernod-ricard-hausse-de-prix-en-chine.php...