Market Entry Strategy

Quantifying the Opportunity for

Chilean Pisco in the New York City
Market

A Euromonitor International Custom Research

Proposal Submitted to Instituto de Investigaciones
Agropecuarias

This proposal has been prepared exclusively for Instituto de Investigaciones Agropecuarias and includes information on Euromonitor
6/9/2010
Page 1
International which must not be shared with third parties without explicit prior permission.

Contacts
CLIENT CONTACT
Paulina Cerda Collins
Coordinadora PIT Nuestro Pisco
Instituto de Investigaciones
g
Agropecuarias
g
+ 56 51 223290/anexo 49
pcerda@inia.cl
EUROMONITOR INTERNATIONAL
RYAN MORRISON
International Account Executive
TOM CONTOS
Business Development Manager
Euromonitor International
312-922-1115 ext. 8322
tom.contos@euromonitorintl.com

Table of Contents
Contacts / Table of Contents
Project Background & Objectives
Our Solution
G
Geographic
hi Scope
S
Project Deliverable : Phase I
Project Deliverable: Phase II
Working with Euromonitor
Methodology/Key Research Stages
Overview of Custom Research
Euromonitor Custom Research
Costs, Timing, & Contract Initiation

2
3
5
6
7
15
22
24
25
26
27

About Euromonitor International

Euromonitor Internationals mission is to build on its position
as the leading provider of quality international market
intelligence on consumer products, services and lifestyles.
The companys policy of continuously expanding and
developing its products and technologies ensures it remains
at the cutting edge of information solutions.
Privately owned since its inception in 1972, Euromonitor International employs over 400 fulltime staff in its offices with a further 600+ field-based analysts in more than 80 countries
worldwide researching a wide range of FMCG,
worldwide,
FMCG industrial,
industrial service and B2B markets

6/9/2010

Page 2

Project Background & Objectives

Project Background
El Instituto de Investigaciones Agropecuarias or The Institute of Agricultural Research in
g
((henceforth known simply
p y as INIA),
), is a Chilean g
government organization
g
which
English
aims to develop greater trade opportunities in forestry and agricultural products between
Chilean companies and the global business community
Currently, INIA seeks to understand the market opportunity for pisco, a liquor distilled from
grapes which is considered the countrys national beverage. Chile, along with Peru, is a
world leader in the production of pisco and is currently seeking sales opportunities abroad.
Preliminary research indicates that New York City presents a potentially lucrative opportunity
for Chilean producers.
Ultimately, the objective is to design a branding strategy and implement a marketing and
promotion plan to best break into the New York City market.
Prior to this objective, INIA seeks to commission research to quantify the market opportunity
for Chilean pisco in New York as well as interview New York City consumers and alcoholic
drinks industry leaders to gauge their attitudes, perceptions, and existing knowledge of
Chilean pisco as well as estimate their association of pisco with Chile.
A key element of this research will be to interview Chilean producers to determine which
features of Chilean-made pisco should be considered in a brand positioning strategy.
With its offices headquartered in Chicago including a strong network of analysts operating
throughout the United States, Euromonitor aims to be a strategic and highly knowledgeable
partner in helping INIA achieve its goals.

Objectives
This project is divided up into 4 phases of research. Euromonitor will be responsible for all
of Phase I and part of Phase II.
II For the rest of Phase II
II, Phase III,
III and Phase IV
IV,
Euromonitor recommends working with Gustavo De Mello, Senior Vice President and
Director of Strategic Planning at Lapiz USA, the Hispanic Advertising Division of Leo
Burnett, one of the worlds largest and most reputable advertising firms based in Chicago.
Euromonitors and Leo Burnetts respective portions of research are detailed on the
following page.

6/9/2010

Page 3

Project Background & Objectives

Objectives
Euromonitors portion
Phase I: Market Study
Objective 1: Market Size & Growth
Objective 2: Top-selling Brands
Objective 3: Importer Profiles
Objective 4: Trends
Phase II: Consumer Research in Coquimbo
Objective 1: 30 In-depth Interviews with Producers
Phase II: Consumer Research in New York City
Objective 1: 2 Focus Groups with 8-12 Young Adults
Objective 2: 1 Focus Group with 8-12 Bartenders
Objective 3: 1 Online Bulletin with 18-20 Industry Experts
Euromonitor permits the sharing of all findings from Phase I and Phase II research with Leo
Burnett. Study findings presumably will be used to inform the development of the brand and
implementation of the marketing and promotional campaign.
Based on the results of the findings in Phase I and Phase II, INIA reserves the right to
proceed with any supplier of its choosing to complete Phase II, Phase III, and Phase IV.
INIA may also wish not to proceed at all based on findings which may indicate limited
opportunities for expanded pisco sales in New York City.
Leo Burnetts portion
Phase II: Developing the Brand Concept
Phase III: Finalizing the Brand and Developing the Marketing Campaign
Phase IV: Implementing the Marketing Campaign

6/9/2010

Page 4

Our Solution
Euromonitor has considerable experience in researching and analyzing the overall
alcoholic drinks market segment on a global scale and has completed many custom
research projects involving this space. The experience and industry contacts gained
from these previous projects as well as the expertise used in creating our syndicated
tools ideally place our firm to complete this project.
Given the industry under review a significant amount of work will need to be
completed in both the retail and on-trade outlets themselves as well as through a
heavy program of industry interviews.
Our analysts teams are experts at drawing out a wide variety of information from
retail and on
on-trade
trade outlets and from implementing trade interviews with key stake
holders within a given industry. Both formats help us reconcile data sources to
answer specific client questions such as: brand sale size data, forecasted growth
rates, along with a wide variety of qualitative insights.
Our position as an independent publisher and custom research firm allows
unparalleled access to wide-ranging networks within the Alcoholic Drinks industry
as well as amongst market participants
participants. This reach extends into over 80
countries and will be highly leveraged as this study evolves.
Based on the objectives outlined by INIA and Euromonitors experience &
capabilities, we are confident of our ability to deliver a highly tested and actionable
deliverable at the conclusion of the study.

Challenge
g

Approach
pp

Deliverable

Market size and growth for

7 distilled liquor segments
in NYC
Analysis of top 3 selling
brands across each liquor
segment
Distribution breakouts for
each liquor segment
Importer profiles
Industry and consumer
trend analysis

Gather all secondary

source material available
Conduct audit/survey of
retail and on-trade channels
Robust program of industry
interviews to gather and
test data
Focus groups and in-depth
interviews with industry
leaders in Chile and NYC

One deliverable will be

presented to INIA at the
projects conclusion
Microsoft PowerPoint
deliverable exploring all
aspects outlined in this
proposal
p
p
Quantitative deliveries
can be sent separately in
Excel

6/9/2010

Page 5

Geographic Scope
INIA seeks this bespoke research project with specific focus on the NYC market. The
United States lies within the 80 core markets Euromonitor researches on an annual basis
as part of its syndicated offering. Euromonitor works with over 30+ analysts operating
across the USA, including New York City, Chicago, Los Angeles, San Francisco, Atlanta,
Washington DC and other major metro areas of the United States.
In keeping with Euromonitors tested research methodology, NYC will be researched
independently by US analysts. Having analysts on the ground will provide INIA with a
highly validated and tested final research deliverable which has taken into account the
unique environment the alcoholic drinks

United States
New York City

6/9/2010

Page 6

Project Deliverable: Phase I

In Phase I, we will determine and quantify the opporutnity for pisco in New York (if any).
Four key areas will round out the final deliverables in Phase I. These areas are segmented
into distinct objectives for the organization of this proposal but will likely be highly intertwined
i d throughout
h
h
the
h d
deliverable;
li
bl referencing
f
i these
h
sections
i
specifically
ifi ll and
d others
h
where
h
analysts find meaningful and relevant information which may be of interest to INIA.
The final report deliverable will be submitted to INIA in Microsoft PowerPoint with all
quantitative data points presented in Excel tables.

Objective 1: Market Sizes & Growth

The first objective is designed to present the deliverable in its most relevant terms by sizing
the market for pisco itself, as well as 7 key distilled liquor segments in New York City,
segmenting each liquor segment by on and off-trade sales, and calculating both historical
and forecasted growth. In all, there is a total of 8 liquors for which data will be provided.
These 8 liquor segments include: pisco, whiskey, brandy & cognac, white spirits (vodka
and
d gin),
i ) rum, ttequila,
il liliqueurs, and
d other
th spirits.
i it
Background
New York City is considered a unique market in the United States. Known from its
trend-setting, upscale, and eclectic atmosphere, liquor consumption is notably
dissimilar from the rest of the country in terms of overall preferences, brands
available for sale,
sale as well as drinking trends
trends.
Euromonitor has over 20 years of experience researching the distilled liquor market
in the United States as well as in 80 other countries. Data coverage includes market
sizes, by volume and value, leading company and brand shares, on vs. off-trade
channel sizes by volume, trade statistics including production, consumption, exports,
and imports, price points, qualitative reports analyzing trends, growth, and overall
industry direction
direction, as well as analysis by format (specific to white spirits) which
covers super-premium and premium, vs. standard and economy varieties.
An image sourced directly from Euromonitors database for alcoholic drinks
illustrates this available data at the top of the following page.
This coverage extends to all 7 non-pisco liquor segments under review for this study
in addition to beer, wine, ciders, and ready-to-drink (RTE) alcoholic beverages.
As mentioned, coverage is available at the national-level only. While our database
doe s not explicitly address the New York City market, US-level market sizes and
growth estimates will be used as logical starting points from which city-specific
estimates will be segmented out.
6/9/2010
Page 7

Project Deliverable: Phase I

Objective 1: Market Sizes & Growth
Background

Methodology
City population will be the first logical metric applied to national figures, followed by
city-disposable income levels, age demographics, and population growth, among
other such key socioeconomic indicators. This top-down approach will be applied to
each distilled liquor segment to estimate market sizes specific to New York City
City.
Top-down city-level calculations will be cross-validated against sales estimates for
each distilled liquor segment applying a bottom-up approach where Euromonitor
analysts begin assembling secondary sources, aggregating local company and
distributor sales data, and researching import volumes.
Throughout both the top-down and bottom-up approaches, Euromonitor anticipates
conducting large-scale
large scale store audits throughout New York City. Analysts will
physically enter a multitude of establishment across a diverse cross-section of
channels, including bars, clubs, supermarkets, liquor stores, and convenience stores,
to gain immediate exposure to each liquor segment under review. The objective is to
identify which brands are most popular, feature the greatest visibility, and are the
most heavily promoted. Euromonitor analysts will tabulate key data points including
product names, store and channels in which they were found, observe promotional
material, pricing, packaging, and positioning as well as interview key retail staff to
discuss any recent sales trends.

6/9/2010

Page 8

Project Deliverable: Phase I

Objective 1: Market Sizes & Growth
Methodology
All preliminary
li i
data
d t points
i t will
ill be
b filtered
filt d down
d
the
th industry
i d t supply
l chain
h i through
th
h an
extensive and robust interview process to test, adjust, and/or confirm city-specific
estimates. Interviewees sources will represent a diverse cross-section of varying
stakeholders, specialists, and industry experts including distributors, manufacturers,
associations, importers, and retailers, each providing fresh , unbiased, and wideranging opinions on the movement and sales of each distilled liquor segment under
review in the New York City metropolitan area In the absence of published data and
scant, unreliable intelligence sources , building consensus around market and
channel sales in this fashion represents a logical and prudent approach.
Deliverable
At the studys conclusion, INIA will receive the following data points for all 8 liquor
segments specific to New York City.
Market
M k t Si
Size: by
b retail
t il value
l and
d volume
l
On-trade sales: (bars, foodservice, etc.): by total volume
Off-trade sales: (retail): by retail value and volume
Time Series: 2007:2014 for all solicited data points
A hypothetical example of how this data may be presented is illustrated below:
Distilled Liquor Market: USA vs. NYC
DistilledLiquorMarket:USAvs.NYC
Whisk(e)yTotalVolume'000litres
Whisk(e)yTotalValueRSPUS$mnCurrentPrices
BrandyandCognacTotalVolume'000litres
BrandyandCognacTotalValueRSPUS$mnCurrentPrices
WhiteSpiritsTotalVolume'000litres
WhiteSpiritsTotalValueRSPUS$mnCurrentPrices
RumTotalVolume'000litres
RumTotalValueRSPUS$mnCurrentPrices
Tequila(andMezcal)TotalVolume'000litres
Tequila(andMezcal)TotalValueRSPUS$mnCurrentPrices
Li
LiqueursTotalVolume'000litres
T t lV l
'000 lit
LiqueursTotalValueRSPUS$mnCurrentPrices
OtherSpiritsTotalVolume'000litres
OtherSpiritsTotalValueRSPUS$mnCurrentPrices
PiscoTotalVolume'000litres
PiscoTotalValueRSPUS$mnCurrentPrices
PiscoTotalVolume'000litres
PiscoTotalValueRSPUS$mnCurrentPrices

6/9/2010

2007
USA
403,006.1
$13,363.6
96,947.1
$5,778.2
582,445.6
$16,300.3
217,337.5
$6,197.1
96677.7
$3,539.6
170 624 4
170,624.4
$6,761.9
10,903.7
$448.9
2,047.5
$81.1
170,624.4
$6,761.9

2008
NYC
27,001.4
$895.4
6,495.5
$387.1
39,023.9
$1,092.1
14,561.6
$415.2
6477.4
$237.2
11 431 8
11,431.8
$453.0
730.5
$30.1
137.2
$5.4
11,431.8
$453.0

USA
409,341.9
$13,678.4
96,391.4
$5,666.6
608,303.0
$17,001.5
223,161.4
$6,361.1
99912.9
$3,644.8
168 611 4
168,611.4
$6,721.7
11,097.9
$458.1
2,023.3
$80.7
168,611.4
$6,721.7

2009
NYC
27,425.9
$916.5
6,458.2
$379.7
40,756.3
$1,139.1
14,951.8
$426.2
6694.2
$244.2
11 297 0
11,297.0
$450.4
743.6
$30.7
135.6
$5.4
11,297.0
$450.4

USA
414,240.7
$14,027.7
95,117.8
$5,420.7
624,821.5
$17,523.2
227,804.1
$6,504.9
102832.1
$3,744.5
165 190 0
165,190.0
$6,595.0
11,212.7
$464.0
1,982.3
$79.1
165,190.0
$6,595.0

2010
NYC
27,754.1
$939.9
6,372.9
$363.2
41,863.0
$1,174.1
15,262.9
$435.8
6889.8
$250.9
11 067 7
11,067.7
$441.9
751.3
$31.1
132.8
$5.3
11,067.7
$441.9

USA
415,865.4
$14,569.1
94,066.7
$5,406.2
641,060.9
$18,464.3
231,814.6
$6,735.5
106028.8
$3,965.0
164 086 0
164,086.0
$6,721.1
11,280.3
$479.6
1,969.0
$80.7
164,086.0
$6,721.1

2011
NYC
27,863.0
$976.1
6,302.5
$362.2
42,951.1
$1,237.1
15,531.6
$451.3
7103.9
$265.7
10 993 8
10,993.8
$450.3
755.8
$32.1
131.9
$5.4
10,993.8
$450.3

USA
414,523.9
$15,078.9
93,677.0
$5,476.9
653,982.4
$19,450.9
235,359.5
$6,969.7
109596.3
$4,216.1
165 055 9
165,055.9
$6,965.1
11,306.3
$498.2
1,980.7
$83.6
165,055.9
$6,965.1

2012
NYC
27,773.1
$1,010.3
6,276.4
$367.0
43,816.8
$1,303.2
15,769.1
$467.0
7343.0
$282.5
11 058 7
11,058.7
$466.7
757.5
$33.4
132.7
$5.6
11,058.7
$466.7

USA
411,837.1
$15,599.4
94,205.8
$5,596.3
665,418.1
$20,345.7
238,207.5
$7,208.6
112914.6
$4,473.3
166 531 0
166,531.0
$7,268.0
11,392.3
$517.8
1,998.4
$87.2
166,531.0
$7,268.0

2013
NYC
27,593.1
$1,045.2
6,311.8
$375.0
44,583.0
$1,363.2
15,959.9
$483.0
7565.3
$299.7
11 157 6
11,157.6
$487.0
763.3
$34.7
133.9
$5.8
11,157.6
$487.0

USA
408,021.8
$16,082.1
95,021.3
$5,761.6
675,233.8
$21,217.3
240,471.3
$7,450.8
116034.0
$4,752.3
168 023 2
168,023.2
$7,637.5
11,542.7
$540.5
2,016.3
$91.7
168,023.2
$7,637.5

2014
NYC
27,337.5
$1,077.5
6,366.4
$386.0
45,240.7
$1,421.6
16,111.6
$499.2
7774.3
$318.4
11 257 6
11,257.6
$511.7
773.4
$36.2
135.1
$6.1
11,257.6
$511.7

USA
404,224.5
$16,579.1
96,135.8
$5,995.4
684,478.2
$22,097.9
242,062.3
$7,685.0
118867.5
$5,050.3
169 396 0
169,396.0
$8,030.9
11,732.6
$567.1
2,032.8
$96.4
169,396.0
$8,030.9

NYC
27,083.0
$1,110.8
6,441.1
$401.7
45,860.0
$1,480.6
16,218.2
$514.9
7964.1
$338.4
11 349 5
11,349.5
$538.1
786.1
$38.0
136.2
$6.5
11,349.5
$538.1

Page 9

Project Deliverable: Phase I

Objective 2: Top-selling Brands
Objective 2 is designed to identify and evaluate the top-selling brands across each of the 8
liquor segments included in this study. Euromonitor analysts will analyze the USPs (unique
selling points) of the top 3 selling brands most consumed by New Yorkers. Understanding
which brand attributes resonate most with New Yorkers will be used to inform the
development of a pisco brand and marketing strategy in the city.
As mentioned, Euromonitor already covers brand shares. Euromonitor share coverage for
liquors extends to over 180 different brands as shown in the graphics below and on the
following page
page. While this data is only available at the US
US-level,
level it is expected that existing
national coverage may shed light on most popular brands consumed in New York City.
Rum
Bacardi
CaptainMorgan
Malibu
Castillo
Cruzan Rum
CruzanRum
SailorJerry
Ronrico
Myer's
MountGay
Appleton
Brugal
Others
Total
Tequila(&Mezcal)
JosCuervo
Patron
SauzaTequila
Juarez
Montezuma
Tequila1800
Margaritaville
DonJulio
ElJimador
PepeLopez
Herradura
Matador
CaboWabo
GranCentenario
DonEduardo
Others
Total
OtherSpirits
RomanaSambuca
Others
Total

6/9/2010

Bacardi&CoLtd
DiageoPlc
PernodRicardGroupe
Bacardi&CoLtd
Fortune Brands Inc
FortuneBrandsInc
WilliamGrant&SonsLtd
FortuneBrandsInc
DiageoPlc
RmyCointreauGroup
LascellesdeMercado&CoLtd
EdringtonGroup
Others
Total

36.4
23.9
5.8
4
27
2.7
1.8
1.7
1.3
0.9
0.7
0.5
20.3
100

GrupoCuervoSAdeCV
CCaribbeanDistillersCorpLtd(CDC)
ibb
i ill C
d (C C)
FortuneBrandsInc
LuxcoCorp
SazeracCo
GrupoCuervoSAdeCV
LuxcoCorp
DiageoPlc
BrownFormanCorp
BrownFormanCorp
BrownFormanCorp
DiageoPlc
SkyySpiritsLLC
GrupoCuervoSAdeCV
BrownFormanCorp
Others
Total

30
16.9
69
12.7
6
5.1
5.1
2.2
1.7
1.5
1.2
0.8
0.6
0.5
0.3
0.1
15.3
100

DiageoPlc
Others
Total

17.1
82.9
100

Liqueurs
Jgermeister
DeKuyper
SouthernComfort
BaileysIrishCream
Kahla
HiramWalker
GrandMarnier
Bols
DiSaronno
E&JCask&Cream
CarolansIrishCream
JacquinCordials
RumpleMinze
LerouxCordials
Goldschlager
g
Cointreau
YukonJack
TequilaRose
Tuaca
Emmet's
Frangelico
StBrendan's
Midori
Godiva
Chambord
Drambuie
Bndictine
BlackHaus
Campari
IrishMist
AfterShock
TiaMaria
Others
Total

MastJgermeisterAG
FortuneBrandsInc
BrownFormanCorp
DiageoPlc
Pernod Ricard Groupe
PernodRicardGroupe
PernodRicardGroupe
MarnierLapostolleSA
LucasBolsBV
Bacardi&CoLtd
E&JGalloWinery
C&CGroupPlc
JacquinetCie,Charles
DiageoPlc
FortuneBrandsInc
DiageoPlc
g
RmyCointreauGroup
DiageoPlc
McCormickDistillingCoInc
BrownFormanCorp
DiageoPlc
C&CGroupPlc
LuxcoCorp
SuntoryHoldingsLtd
lkerGidaSanayiveTicaretAS
BrownFormanCorp
DrambuieLiqueurCoLtd,John
Bacardi&CoLtd
DiageoPlc
CampariMilanoSpA,Davide
C&CGroupPlc
FortuneBrandsInc
IllvaSaronnoSpA
Others
Total

17
14.9
7.6
6.3
51
5.1
4.9
2.9
2.2
2
1.9
1.9
1.8
1.6
1.4
1.3
1.2
1.2
1.1
0.8
0.8
0.8
0.7
0.7
0.6
0.5
0.5
0.5
0.4
0.3
0.1
0.1
0.1
17.1
100

Page 10

Project Deliverable: Phase I

Objective 2: Top-selling Brands
Whisk(e)y
JackDaniel's
Crown Royal
CrownRoyal
JimBeam
Seagram's7Crown
BlackVelvet
CanadianMist
JohnnieWalker
Dewar's
EvanWilliams
CanadianClub
Seagram'sVO
WindsorSupreme
Maker'sMark
Jameson
Rich&Rare
Kessler
CanadianLTD
ClanMacGregor
WildTurkey
EarlyTimes
TenHigh
LordCalvert
ChivasRegal
AncientAge
OldCrow
Scoresby
GentlemanJack
Glenlivet
J&B
HeavenHill
CanadianHunter
NorthernLight
Cl
Cluny
InverHouse
CuttySark
Bushmills
Grant's
FamousGrouse,The
Buchanan's
Ballantine's
OldSmuggler
Macallan,The
Glenfiddich
GeorgeDickel
Lauder's
HouseofStuart
WhiteHorse
OldForester
RoyalCanadian
TullamoreDew
Balvenie
McClellands
Others
Total

6/9/2010

BrownFormanCorp
Diageo Plc
DiageoPlc
FortuneBrandsInc
DiageoPlc
ConstellationBrandsInc
BrownFormanCorp
DiageoPlc
Bacardi&CoLtd
HeavenHillDistilleriesInc
FortuneBrandsInc
DiageoPlc
FortuneBrandsInc
FortuneBrandsInc
PernodRicardGroupe
SazeracCo
FortuneBrandsInc
SazeracCo
WilliamGrant&SonsLtd
CampariMilanoSpA,Davide
BrownFormanCorp
SazeracCo
FortuneBrandsInc
PernodRicardGroupe
SazeracCo
FortuneBrandsInc
DiageoPlc
BrownFormanCorp
PernodRicardGroupe
DiageoPlc
HeavenHillDistilleriesInc
SazeracCo
SazeracCo
UB G
UBGroup
ThaiBeveragePlc
EdringtonGroup
DiageoPlc
WilliamGrant&SonsLtd
EdringtonGroup
DiageoPlc
PernodRicardGroupe
CampariMilanoSpA,Davide
EdringtonGroup
William Grant & Sons Ltd
WilliamGrant&SonsLtd
DiageoPlc
MacDuffInternationalLtd
SazeracCo
DiageoPlc
BrownFormanCorp
SazeracCo
C&CGroupPlc
WilliamGrant&SonsLtd
WhiteRockDistilleriesInc
Others
Total

10.4
8.1
7
5.4
4.5
4
3.4
3.1
2.6
2.6
2.5
2
1.8
1.7
1.6
1.6
1.5
1.4
1.4
1.3
1.1
0.9
0.9
0.9
0.9
0.6
0.6
0.6
0.6
0.6
0.6
0.6
05
0.5
0.4
0.4
0.4
0.4
0.3
0.3
0.3
0.3
0.3
03
0.3
0.3
0.2
0.2
0.2
0.2
0.2
0.1
0.1
0.1
17.9
100

BrandyandCognac
E&JGallo
Hennessy
PaulMasson
ChristianBrothers
RmyMartin
Courvoisier
Korbel
Raynal
Presidente
Martell
Others
Total
p
WhiteSpirits
Smirnoff
Absolut
GreyGoose
Svedka
Seagram'sGin
Skyy
Gordon's
KetelOne
McCormick
Barton
p
Popov
Stolichnaya
Skol
Tanqueray
Burnett's
ThreeOlives
Fleischmann's
Seagram'sVodka
Pinnacle
Kamchatka
Gilbey's
Aristocrat
UVVodka
BombaySapphire
NewAmsterdam
CrystalPalace
Beefeater
Wolfschmidt
Finlandia
Belvedere
Taaka
PhillipsVodka
Mr Boston
MrBoston
JacquinRoyal
Nicolai
Ciroc
BombayOriginal
Frs
Level
Pravda
Hendrick's
Chopin
Vox
Others
Total

E&JGalloWinery
LVMHMotHennessyLouisVuitton
ConstellationBrandsInc
HeavenHillDistilleriesInc
RmyCointreauGroup
FortuneBrandsInc
FKorbel&BrosInc
WilliamGrant&SonsLtd
PernodRicardGroupe
PernodRicardGroupe
Others
Total

29.5
18.7
12.6
10.9
5.6
3.8
3.5
2.2
1.6
1.4
10.2
100

DiageoPlc
PernodRicardGroupe
Bacardi&CoLtd
ConstellationBrandsInc
PernodRicardGroupe
CampariMilanoSpA,Davide
DiageoPlc
NoletSpiritsNV
McCormickDistillingCoInc
SazeracCo
DiageoPlc
g
SoyuzplodimportZAO
SazeracCo
DiageoPlc
HeavenHillDistilleriesInc
ProximoSpiritsInc
SazeracCo
Young'sHoldingsInc
WhiteRockDistilleriesInc
FortuneBrandsInc
DiageoPlc
HeavenHillDistilleriesInc
PhillipsDistillingCo
Bacardi&CoLtd
E&JGalloWinery
SazeracCo
PernodRicardGroupe
FortuneBrandsInc
BrownFormanCorp
LVMHMotHennessyLouisVuitton
SazeracCo
PhillipsDistillingCo
Sazerac Co
SazeracCo
JacquinetCie,Charles
SazeracCo
DiageoPlc
Bacardi&CoLtd
PernodRicardGroupe
PernodRicardGroupe
JacquinetCie,Charles
WilliamGrant&SonsLtd
PodlaskaWytwrniaWdekPolmosSAwSiedlcach
FortuneBrandsInc
Others
Total

13.2
6.7
4.7
4.1
3.8
3.5
3.1
3
3
2.9
2.8
2.7
2.3
2.2
2.1
1.8
1.8
1.5
1.5
1.4
1.4
1.3
1.2
1.2
0.9
0.8
0.8
0.7
0.6
0.6
0.6
0.5
0.5
0.5
0.5
0.4
0.3
0.3
0.1
0.1
0.1
0.1
0.1
18 3
18.3
100

Page 11

Project Deliverable: Phase I

Objective 2: Top-selling Brands
Deliverable
Ultimately, Euromonitor will deliver 1-slide profiles for the top-selling 3-5 brands across all 7
liquor segments answering the following questions (21-35 brand profiles total). Key
questions which will be addressed in each profile include:
Which are the largest brands across all key liquor segments by total sales?
What characteristics make these brands especially appealing to local residents?
Where are these brands primarily sold and at what price points?
Pictures of brands will be included here as well where available. To reiterate, top-selling
brands will be those specific to the New York City liquor market only.

6/9/2010

Page 12

Project Deliverable: Phase I

Objective 3: Importer Profiles
Objective 3 is designed to further develop a strategic market entry plan by identifying and
profiling the leading local buyers of pisco in New York City.
City Buyers can include importers,
importers
distributors, wholesalers, and retailers. Profiles are likely to include the following:

Type of enterprise (importers, buyers, distributors, wholesales, retailers etc

Company organization: owners, any holding companies, affiliates, etc.
Size ranking/importance as a buyer in the local market.
Purchasers contacts telephones, fax, email
K pisco
Key
i
b
brands
d and
d other
th liliquor products
d t purchased
h
d iincluding
l di country
t suppliers
li
Main retail, foodservice, and/or wholesale channels served
Typical prices and payment terms with foreign suppliers

Is that likely that liquor importers serving the New York City market may be scattered
across the Northeast corridor of the United States. Preliminary research indicates that
Newark-Elizabeth Marine Terminal may be a major hub of liquor importers serving New
Y k City
York
Cit however
h
it is
i possible
ibl th
thatt pisco
i
iimports
t may occur th
through
h any major
j portt
across the US before being shipped to the New York City area. In light of this possibility,
Euromonitors will limit the number of profiles to approximately 10.
Deliverable
List of all/most importers purchasing pisco from abroad in the USA
profiles for the leading
g 7-12 p
pisco importers
p
with emphasis
p
on those with
1-slide p
commercial ties to the New York City area.

6/9/2010

Page 13

Project Deliverable
Objective 4: Trends
The focus of Objective 4 is to identify and evaluate the key factors affecting the New York
Cityy liquor
q
and p
pisco market itself and p
provide textual background
g
as to how it is evolving,
g,
in which manner, and to map the foreseeable outcomes. This section will be delivered in a
qualitative format relying on insights gathered in the first two objectives as well as research
throughout the project which focuses specifically on the market evolution.
After studying New York City for a significant period of time, analysts will have built a
strong sense of current market conditions, potential shifts in the future, and have a better
understanding of the factors driving the market.
market Furthermore
Furthermore, analysts will have compiled
a significant portion of collateral information that may be beyond what is outlined here.
Where analysts find such relevant and useful information will be incorporated into the final
deliverable. Topics likely to be covered include:
A summary evaluation of overall performance trends in the local liquor market
including textual analysis of the key drivers of market, growth/stasis/decline, including
key consumer
consumer, industry and sales trends.
trends
A summary evaluation of overall performance trends in the local pisco market
including textual analysis of the key drivers of market, growth/stasis/decline, including
key consumer, industry and sales trends.
Analysis of typical consumers and local market preferences
Local pisco company positioning, reputation, and image in the city
Macro forecasts, including analysis of economic, demographic and cultural trends
and their impact on liquor consumption

6/9/2010

Page 14

Project Deliverable: Phase I and Phase II

Introduction
In the first part of Phase II, Euromonitor intends to focus on the most important
attributes of Chilean-produced pisco by interviewing local producers and other relevant
actors
t
in
i the
th production
d ti and
d sale
l off pisco.
i
Th idea
The
id is
i to
t select
l t those
th
attributes
tt ib t b
bestt
suited for the creation of a pisco branding concept from a Chilean perspective.
This will be followed by consumer focus groups and in-depth interviews with liquor
industry experts in New York whose opinions, perceptions, and attitudes are intended to
build upon Chile-based findings but from an American perspective.
g
, both angles
g
are intended tocross-validate the other to achieve an allTogether,
econmpassing consensus representing a diverse cross-section of industry and consumer
opinion in both geographies. Utlimately, the objective is to create a best-fit pisco
branding concept that will be represent Chilean pisco both in New York and potentially
internationally in general. Feedback gathered in this phase overeall will also inform the
development and excecution of a succesful marketing campaign for pisco.
General Methodology
gy of Phase I and Phase II
In-depth face to face interviews
Face to face consumer focus groups
Online focus groups
Deliverables
Audio and/or video recordings of interviews and focus groups
Transcripts
T
i t
Top-line reports and analysis

6/9/2010

Page 15

Project Deliverable: Phase II Coquimbo

The overall goal oh Phase II Coquimbo is 4-fold:
To inquire about the perception that local pisco sector actors have regarding the
challenges, opportunities, and performance of domestic pisco sales.
To inquire about the perception that local pisco sector actors have regarding global
sales including potential buyers , levels of demand, opportunities and threats.
To describe the way in which the international pisco market as developed.
To identify the principal actors in the import markets and delve more deeply into
their level of knowledge, familiarity, perceptions, and expectations they have about
Chilean pisco and working with Chilean exporters.
exporters
Phase II Coquimbo will be segmented by the following objectives:
Objective 1: 30 In-depth Interviews with Producers

Objective 1: 30 In-depth Interviews with Producers

Euromonitor recommend conducting 30 interviews with key actors involved in the
production and sale of pisco along the supply chain in Coquimbo Chile
Interviews will be open-ended or qualitative in nature. Open-ended questions are
intended to provoke likes, preferences, reasons, feelings, and sensations that
might otherwise be hidden through a more close-ended quantitative approach.
The principal advantages of the qualitative technique is flexibility, the speed with
which data can be collected, and the ability to go more in-depth with interviewee
targets since open-ended conversations tend to create an atmosphere of
convenience , intimacy, and trust which enables mediators to gain access to
specific topics of interest.

6/9/2010

Page 16

Project Deliverable: Phase II Coquimbo

Objective 1: 30 In-depth Interviews with Producers
Methodology
Euromonitor will first develop a discussion guide in the form of open-ended
questions. All questions will be circulated to INIA for approval prior to distribution.
Euromonitor will then recruit interviewee targets by identifying and contacting each
person individually and arrange a time to meet face-to-face.
In-depth face to face interviews will consist of dialogues between a professional
mediator and key information-holders
All interviews will be carried out face to face in the interviewee targets office or
place of business and last approximately 1 hour.
Euromonitor will conduct 30 in-depth face-to-face interviews in the following areas:
Pisco production plants in the Coquimbo zone
Pisco grape growers, associations, and cooperatives in the Coquimbo zone
Governmental and private entities that support and encourage the pisco

industry and exports in general including Prochile, CORFO regin Coquimbo,

and Asociacin de plantas pisquers y Fundacin imagen pas.
Interviews will be segmented as follows:

6/9/2010

6 interviews with pisco production plants

10 interviews with Cooperativa Capel
10 interviews with Cooperativa Control
1 interview with Prochile
1 interview with CORFO (sede regional Coquimbo)
1 interview with Asociacin de plantas pisqueras
1 interview with Funacin de Imagen Pas

Page 17

Project Deliverable: Phase II NYC

The overall goal of Phase II New York is 4-fold:
To develop a stronger positioning for pisco that resonates among the core target
and future users to drive increased/incremental usage
To
T understand
d t d how
h
tto best
b t position
iti pisco
i
ffor a successful
f lN
New Y
York
k Cit
City rollout
ll t
To better understand pisco and how it is currently positioned against the existing
competitive set of other liquors
To explore branding and messaging stimuli
Phase II New York will be segmented by the following objectives:
Objective
j
1: One Focus Groups
p with 8-12 Young
g Adults
Objective 2: Two Focus Group with 8-12 Bartenders
Objective 3: One Online Bulletin with 18-20 Industry Experts

Objective 1: Two Focus Groups with 8-12 Young

Adults
Euromonitor recommend conducting
g two focus g
groups
p in New York City
y with adults
aged 22-29 who fit the drink profile.
One group will be with those familiar with pisco.
The other group will be with participants unfamiliar with pisco, yet who fit the target
profile in that they regularly go to bars, consume mixed drinks, etc..
It is our sense that those familiar with pisco are a passionate, educated minority
with very strong opinions, so separating the two is advised. In both groups we
would include a mix of genders. These groups would include both tasting as well
as messaging discussion.
We recommend conducting the groups at a research facility. To simulate a
cocktail party atmosphere, we will create a living room set up including a bar with
bartender.

6/9/2010

Page 18

Project Deliverable: Phase II NYC

Objective 2: One Focus Group with 8-12 Bartenders
As opinion leaders and key influencers who drive beverage trends, bartenders are
g rollouts. Given this,, we recommend
critical to the success of new beverage
conducting one daytime focus group with this colorful constituency. Bartenders
will provide a lively exchange, shedding insight on:

How pisco is currently perceived, in terms of taste, drink combinations, and

its competitive set (Peruvian vs. Chilean vs. other varieties)

What are the trendy South American drinks right now among 20-somethings
Positive and negative attributes and images currently associated with pisco
How to best position pisco in the U.S.
Methodology
Each group will be 90 minutes long, conducted in Manhattan
6-7 respondents per group (8-12 per group recruited)
The groups will be held at a focus group facility with a living room atmosphere and
bartender
Bartender focus group will be held in the daytime
20-something groups will be held in the evening
Homework assignment for the 20-somethings will be used to stimulate discussion
as well as p
provide a deliverable. Possibilities include:
Taking a photo of their favorite cocktail at the bar and describing the type of
persona associated with this drink

Bringing a magazine ad, blog post or other type of visual that makes them
want to try a new drink
Part of the participants incentive will include money for a cab ride home and all
participants will sign a waiver regarding their alcohol consumption
consumption.

6/9/2010

Page 19

Project Deliverable: Phase II NYC

Objective 3: One Online Bulletin (Focus Group) with
18-20 Industry Experts
Euromonitor recommends conducting a series of BoardTalk discussion boards
or online bulletins to capture opinions from industry experts in New York
including liquor company managers, bar owners, distributors, liquor connoisseurs,
retailers, industry analysts, and other experts in the liquor trade.
Online bulletins are a form a virtual focus group that takes place via a secure web
site and appears as a threaded discussion that can be viewed by participants at
any time and in any place
place. A hypothetical example is provided below in which
participants were asked to respond to a video promoting Peru as a tourist
destination.

Bulletin Boards are asynchronous, meaning they are not a live chat session, but
instead allow respondents to read the questions posted, contemplate a response,
and type their responses at a time convenient for them. It works well for both
consumers as well as business professionals as it is not disruptive and gives
respondents the ability to fit the research in to already busy lives. The only
requirement (beyond the general screening specifications) is a computer with a
high-speed Internet connection.
6/9/2010

Page 20

Project Deliverable: Phase II NYC

Objective 3: One Online Bulletin (Focus Group) with
18-20 Industry Experts
Methodology
The bulletin itself will consist of approximately 15 respondents and will run for 3
business days.
Following recruitment of various industry experts, Euromonitor will create a
discussion guide that will be circulated to INIA for approval prior to the bulletin.
A moderator will open up the bulletin by posting questions. Participants will be
prompted to log on twice a day to post their responses. Each question posted will
be customized in terms of what each respondent sees on the screen. Euromonitor
can give them the option of either seeing (influenced) or not seeing (uninfluenced)
the responses from the other participants after they record their own comments,
depending on INIAs preferences.
Respondents will be tagged so that we know at a glance any details necessary
whether they are a business focused on liquor distribution, retail sales, production
and any other demographic information required for analysis. They will also be
able to upload a personal photo or icon to appear next to their responses,
creating the feeling of communication between actual people with personalities,
rather than simply text on the screen.
Euromonitor will also be able to incorporate innovative projective techniques by
using photos, a whiteboard, and other methods. For example, we could use
picture sorts, including simple but rich metaphorical sentence completion
exercises, and use storytelling or personality profiles to elicit underlying
perceptions of various spirits which compete with pisco.
Euromonitor will monitor the discussions as they occur, and suggest questions
and additional probes to the moderator, using a secure virtual back room.
The benefit of online focus groups is as follows:
Rich exchange over time results in deeper, more nuanced feedback than
research conducted within a single session.
Incubation yields results: self-paced participation allows respondents to
think about what they want to say, resulting in very rich, in-depth responses.

Ideall for
Id
f exploratory
l t
research
h projects,
j t and
d creative
ti d
development
l
t sessions.
i
Participants can be recruited nationally, internationally, or using a specified
criteria, eliminating the need to conduct research in multiple markets.
6/9/2010

Page 21

Working with Euromonitor

Project Management
The project will be managed by a central project manager in Euromonitors Chicago offices
who will oversee the work of our in-country analyst teams and act as the liaison to INIA
throughout the project. Project teams will be assigned upon initiation.

INIA

Euromonitor Project Manager

(Chicago )

Euromonitor Analysts
(Mexico)

9 June 2010

Page 22

Working with Euromonitor

Stage 1 (week 1-2): Alignment
A key early step to ensure that both INIA and Euromonitor project team are fully
aligned on key goals, priorities and how the project will evolve .
Professional
P f
i
lh
handovers,
d
b
briefings,
i fi
project
j t ttools
l and
d process control
t l ensure objectives
bj ti
remain in sight throughout and are properly understood by the team.
Stage 2 (weeks 3 12): Fieldwork
Primary research asks answers to get questions not available in published sources.
We use a range of survey tools (customer, trade, consumer) to interrogate sources, fill
gaps collect new data,
gaps,
data seek perspectives on trends
trends, impact
impact, outlook and connect the
views of trade with suppliers, customers and consumers.
Standardisation (approach & outcomes) is critical to clients decisions. We ensure you
get the best local insight and central management to make results comparable.
Stage 3 (weeks 13 24): Analysis, synthesis and delivery
Cross
Cross-checks
checks on all sources and interpretations and in depth analysis of all fieldwork
output to ensure our deliverable addresses INIAs objectives and questions fully.
Tailored (user-friendly, context, transparency) and innovative (latest visualisation and
modelling tools) deliverables.
Stage 4 (weeks 25 30): Post delivery dialogue
Post-delivery support is important and it makes sense for us to stay involved as you
take on board the conclusions of the research, finalise decisions, start implementing.

6/9/2010

Page 23

Methodology & Key Research Stages

Desk research: in-house, clients & secondary sources (5-10%)
Our analysts are experts on published data sources. We have extensive in-house sources and
industry teams with knowledge acquired over years of research. We also want to know what
you know and what, if any, sources you use and why. Published data is a starting point and
though useful for first estimates and insights need to be refined and confirmed.
Desk research will account for 5-10% of total research time for the project.

Field work: in-country and industry (40-50%)

Site visits to points of sale for product audits and face-to-face interviews whereby in-country
analysts speak directly with personnel and observe product pricing, promotion, packaging,
layout customer experience etc to generate live country level insights
layout,
insights.
Trade interviews with importers, distributors and retailers directly involved allow access to fresh
data, opinions and insights. Interviews with government, semi-official and other industry
observers provide perspective. Interviewing multiple functions in organizations enable coverage
of a range of issues and help reconcile and validate a spectrum of data and opinions. A reliable
data set and valid conclusions is reached by independently building industry consensus.
Field work will account for 40-50% of total research time for the project.

Analysis: validate, interpret, contextualize (30-40%)

All primary and secondary research sources are first standardized, checked and validated to
ensure we have a robust research feed to the analysis. Confidence weightings are allocated to
each data input. A critical analyses of all sources and insights is conducted whereby we
compare data, insights and hypotheses to arrive at a set of data and conclusions. Findings are
then synthesized into a structured management summary which addresses all your key
questions
ti
with
ith supporting
ti with
ith kkey d
data
t and
d analysis.
l i
Analysis will account for 30-40% of total research time for the project.

Management: coordination, engagement, consultation (5-10%)

A project manager is responsible for overseeing all research and will be your primary point of
contact during and after the project. Project managers coordinate the analyst team; closely
engage with you throughout the research process to ensure expectations and outputs align and
deliverables directly address original project goals and objectives.

Deliverable
The final deliverable will be presented in a format requested by the client.

6/9/2010

Page 24

Overview of Custom Research

Tailored solutions
Designed to fit your unique needs
From simple
p data creation to indepth strategising
Exclusive ownership of the
research and follow-up
Helping clients make informed
decisions
Our people
Research consultants, experienced
in different methodologies
Regional research hubs and industry
teams
Sector-specific expertise
Field-based country research, close
to industry sources
Our service

Category
Company
Product
Distribution

Access to a wide range of local market

contacts in multiple industries and
functions
2,500 projects, long-standing client
relationships
Transparency the answer and how
we got there
Projects run in close partnership with
all client stakeholders

Macro
6/9/2010

Page 25

Research solutions
Our research solutions provide a comprehensive framework to give you the all information
and answers you need. Collecting new data is at the heart of what we do, from secondary
data, B2C and B2B surveys, executive interviews and local fieldwork including product
audits. But we arent just data providers, we analyse findings and work closely with clients
to place in context relevant to their questions.
questions

6/9/2010

Category evaluation
Sizes, shares, growth
Segmentation
Market entry strategy

Forecasting
Launch, sales, demand, lifecycle
Success / failure probabilities
Determine risk exposure

Competitive intelligence
Profiling
Benchmarking
P t
Partner
evaluation
l ti

Scenario analysis
Market simulations
Portfolio analysis
T t business
Test
b i
cases

Innovation
NPD business case
Consumer insights
g
Product claims

Consumer analytics
Customer profiling
Income distribution models
Purchasing behaviour

Route to market
Production, imports, exports
S
Supply
l and
d value
l chain
h i
B2B and B2C channels

Market analytics
Marketing effectiveness
S b tit t and
Substitutes
d complements
l
t
Price and channel strategy

Macro
Opportunity
pp
y frameworks
PEST
Quarterly tracking

Visualisation
Discovery,
y, sharing,
g, communication
Market attractiveness planners
Performance monitoring

Page 26

Costs, Timing, & Contract Initiation

New York
Phase I: All Objectives
Phase II Coquimbo: 30 Producer Interviews
Phase II New York:
Objective 1: 2 Focus Groups with Young Adults
Objective 2: 1 Focus Group with Bartenders
Objective 3: 1 Online bullet with Experts
Total:

US$58,000
US$25,000
US$32,000
US$18,000
US$38,000
US$171,000

Additional Items
There are no additional costs: all production and communication expenses are included.
Project Timing
Euromonitor will deliver findings within 4-5 months project initiation.
y
Terms
Payment
Costs are exclusive of VAT or any applicable local market taxes and invoices are payable in two
parts: (1) 70 % net 30 days of commissioning (2) remaining 30% due upon project delivery
This Proposal is an offer by Euromonitor to provide its services to you subject to Euromonitors
attached Terms & Conditions. You accept this offer, and a contract is made between you and
Euromonitor on Euromonitors Terms and Conditions, by either (i) signing below and faxing this
signed Proposal to +1-312-922-1157 or scanning and emailing it to
tom.contos@euromonitorintl.com;
@
or ((ii)) by submitting a purchase order, confirmation
f
off order,
acceptance of a quotation, or specification or other document to Euromonitor.
Euromonitors Terms and Conditions are the only conditions upon which Euromonitor is prepared to
provide the services and shall prevail over and take the place of any other terms and conditions
stipulated, incorporated, endorsed upon, delivered with, referred to or contained in any document of
communication from you, or implied by law, trade custom, practice or course of dealing.
For Euromonitor International Ltd.

For Instituto de Investigaciones Agropecuarias

..

..

David Cleveland
Consulting Director

I have read and agree to the terms set out in this

Proposal and in Euromonitors Terms and Conditions

6/9/2010

Page 27

Reference Letter: Coca-Cola

6/9/2010

Page 28

Reference Letter: APEX

6/9/2010

Page 29

Reference Letter: APEX

6/9/2010

Page 30

Reference Letter: USDA

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Page 31

Reference Letter: PromPer

6/9/2010

Page 32

Reference Letter: PromPer...continued

6/9/2010

Page 33