Professional Documents
Culture Documents
Global
Marketing
Strategy
Magali MARGUERITTE
Marie MICHOT
Alice PELEGRIN
Audrey PERGAUD
I/ EXTERNAL DIAGNOSTIC
1/ Market trends
India and China are expected to be the two fastest-growing markets for
spirits globally and India will overtake Russia to become the second-
largest spirits market globally in 2013, at least on registered taxed sales.
All spirits categories will show growth in India in the forecast period, with
vodka predicted to show the highest percentage growth: 12% between
2009 and 2015. In China, Scotch whisky will lead growth, up by 7.8% to
reach 2.8m cases in 2015. The US is predicted to be the third fastest-
growing market worldwide until 2015; the vodka market alone is likely to
gain over 12m cases.
Most spirits categories will see more moderate growth until 2015 than
they have in the last five years. This is largely due to the cautious
spending behavior adopted by consumers after the economic recession
took its toll on many markets. Rum and whiskey are expected to gain
share of the overall spirits market, while vodka’s share will decline.
2/ Competition
Besides these major players, France has some groups of smaller size
but very well placed on the national market. This is the case of Remy
Cointreau. In addition to its parent brand, Remy Martin cognac and
Cointreau orange liqueur, it has in its portfolio Passoã and Mount Gray
Rum. For a 2006 turnover of nearly EUR 800 million. Another major player:
The Martiniquaise and its whiskey brands Label 5 and Old Virginia,
supplemented by Cruz, the number one of porto in the world. The
Bordeaux group realized a turnover of 800 million euros.
3/ 4 P Analysis (trends)
It appears that the leading groups in the sector follow strategies that are
largely similar. We can indeed identify many common points:
These strategies require heavy investments and the race for the
critical size is a major concern for businesses of Wines and Spirits. For ten
years, consolidation in the spirits industry is inevitable. Indeed, the
pressure of this industry is growing by the day: the regulations are
increasingly stringent, distributors are more powerful and the lifetime of
products is shortened. Thus the critical size of companies in this sector
increased to ensure the long-term profitability.
Wines and spirits are an industry that, probably more than any other
area of luxury, is
one where the political environment plays the more pervasive role,
especially in terms
Legal and tax.
- France
Without being exhaustive, four texts which require distributors to
comply with specific measures concerning the storage, transport, sale in
France and overseas products, and introduce a system of taxation at high
rates can be cited:
- Europe
Moreover, the disappearance of duty-free intra since 1 July 1999
significantly affected the turnover of the branch of spirits, in fact,
consumers were accustomed to enjoy traveling by air or sea to buy
premium spirits including the price became more affordable, tax-free.
- USA
There is the U.S. legislation that greatly restricts, pretext of hygienic
measures, the import of products "biologically unstable" whose wines are,
as they are derived from the fermentation of grapes.
The Rémy Cointreau Group, whose origins date from 1724, is the result
of the merger in 1990 of the holding companies of the Hériard Dubreuil
and Cointreau families that controlled E. Rémy Martin & Cie SA and
Cointreau & Cie SA respectively. It is also the result of successive alliances
between companies operating in the same business segment of wines and
spirits.
A/ Sector Review
Rémy Cointreau Group Operations
1/ Cognac
Four Cognac brands share 80% of the world market: Rémy Martin (Rémy
Cointreau), Hennessy (LVMH), Martell (Pernod Ricard) and Courvoisier
(Fortune Brands). Rémy Martin is the second Cognac brand with a
13% market share (source: BNIC 2010). Rémy Martin achieves around
90% of its shipments in the superior qualities (QS) segment which
represents over 51% of the total Cognac market (source: BNIC 2010).
Rémy Martin, the leader in this segment holds a 20% market share.
The Liqueurs and Spirits division brings together brands that operate in a
high volume market featuring many contributors in terms of product
categories (liqueurs, vodkas, gins, whiskies, rhums, brandy, local
specialties, etc.) and brands with a local or international reach.
Thus in Europe,
the market can be
analysed as
follows
2/ Champagne
Competitive Ranking
A/
Sector
Review
1/ Human Resources
On March 31st 2010, the group’s total staff reached 1571 salaries,
which means a 3, 8% raise. This evolution is due to the supplementary
recruitments in the Asian zone.
There are six persons in the executive committee, in which the Chief
Executive Officer Jean-Marie Laborde, the Human Resources Director Jean-
François Boueil, the financial director Hervé Dumesny, the International
Director of the Markets Damien Lafaurie, the Director of the Strategy and
of brands development Christian Liabastre and the Operating Director
Patrick Marchand.
Statutory Auditors
3/ Finance
Rémy Cointreau ’s share from June 1st 2009 to June 23rd 2010 (€)
Shareholders’ information
Close accounts on
2007 2008 2009
March 31st
Net dividend per share 1,20 € 1,30 € 1,30 €
Total number of
45 657 049 46 792 120 47 113 389
shares
1/ Product
2/ Price
3/ Promotion
PLV
Event
Prévention
With always the same goal in mind, which is to seduce the young
adults, the group adapts itself to new modes of communication by using
internet to communicate. For instance, the Passoã brand created a buzz
on Net and was successfully led on the social networks such as Facebook,
Netlog and Hyves on the various markets.
=> The group launched a blog on Passoã with cocktail recipes, good deals
and ideas to have amazing evenings and the challenge “Tent-Xperience”
(in order to win a journey of one week under the sun of Ibiza) : all that was
needed was to play and to have the best score. Bloggers participating in
the challenge received a "buzzkit".
4/ Place
- specialized stores,
- hypermarkets and supermarkets,
- bars, restaurants, Hotels and clubs,
- dutty free.
Internal analysis
IV/ RECOMMENDATIONS
Strategic
•Widen their products offer, which will allow the group to pool the
risks and diminish the threat linked to a turnaround of popular trends.
Communication
Distribution
Increasing the control the group having on their wholesale
distribution.
Price