TEQUILA

LEYENDA MEXICANA
Global Marketing

Students: Enid Hernández, Frida Luis and Ivonne

Turrubiartes

Estética Cuidados Tipos

Executive Summary
This text provides an overview of the situation of a Mexican tequila brand, Leyenda Mexicana, which has been
passed down through generations of the Gonzalez Guerrero family.
The brand was founded in 1980 and has gained popularity for its unique fruity taste. The mission of the brand is
to share their family tradition and passion for handcrafted tequila.
The text outlines the brand's objectives, including increasing its market share in the European market and
raising the price through branding, increasing its market share in France by 15%, and increasing tequila
awareness among French consumers by 25%.
The text also provides a situation analysis, discussing the political, legal, economic, social, technological, and
natural environment factors that can impact the brand. Additionally, an internal situational analysis and
competitor and customer analysis are provided.
The brand's strengths, weaknesses, opportunities, and challenges are highlighted, and its target customers are
described as fans of culture and gastronomy, with an interest in exploring and enjoying high-quality alcoholic
beverages from different regions.
 Introduction
Background: In 1758, the family Gonzalez Guerrero
Mission: Share the family tradition and
was given a little land of soil that was passed from
passion for handcrafted tequila.
generation to generation in the town of Tequila,
Jalisco. Here the family who at first only distilled Objectives:
tequila for personal use founded Leyenda Increase market share in the European market to elevate

Mexicana, a farm where they grew and harvested a the price by branding.
Increase the market share of my tequila in France by 15%
flowering blue agave plant, a plant used in central in a period of 18 months, through geographic expansion,
Mexico, which is credited with creating tequila. The collaboration with local distributors and specific
first Tequila Gonzalez Guerrero Maribel made was marketing strategies for the French market.
Increase tequila awareness among French consumers by
in 1980, It had a unique fruit hint because it grew
25% in 12 months, through education programs that
beside fruit trees making it a local legend in local include tastings, online educational content, and
bars and pubs because of the unique fruit flavor collaborations with beverage experts.
and handcrafted taste.
Situation Analysis of the
Analysis natural
environment:
The growing demand for organic
and sustainable products can create
opportunities for tequila produced
in an ecological and
environmentally friendly way.
Changes in weather and weather
conditions can affect the availability
and quality of key ingredients used
in tequila production, such as agave.
Responsible consumption trends
and preference for brands
committed to environmental
conservation can influence
consumer choice.
 Internal
Situational
Analysis
 Competitor and
Customer Analysis
French men between the ages of 25 and 35, with a
monthly income level of more than 15,000 MXN
(786.30 euros). They have an interest in the culture,
gastronomy and alcoholic beverages of different
regions. In addition, they already have some
knowledge and experience in tequila, appreciating
the history, the variety of flavors and the craft
behind its production. These consumers enjoy
elegant leisure moments and value the
organoleptic qualities of the products, as well as
the traditional production methods. Metropolitan
areas like Paris, Marseille, Lyon, Toulouse, and Nice
are key locations where you can find a higher
concentration of this market and take advantage of
business opportunities.
 Marketing
objetives
Realistic: Time-bound:
Specific: Measurable: Achivable:
*We will plan strategies that *Reach more than *Increase platform
Increase sales We seek to
allow the achievement of the 100,000 followers on sales by 10%
and improve increase sales
economic objectives defined for social networks. through a
visits to our by 20% six each year. *Increase platform promoted post on
social months after *Strengthen the image of the
sales by 10% through a Instagram between
networks. entering the business, creating close links
promoted post on june 1 and 17.
French market. between our customers and
products. Instagram.

 Marketing strategies

Distribution

Our distribution will be complex because we will export

our tequila to France and we will have agreements with
distributors so they can sell our tequila to restaurants,
night clubs, supermarkets or to the final client.
We believe that this type of distribution will be the best
for us because we will introduce our tequila to the market
and since we do not have a presence in France, we seek
to minimize risks.

 Promotions
We will do promotions locally because we want to
focus on the French market so we are going to
carry out campaigns focused on publicizing our
tequila since despite the fact that the French
consume an average of 10.7 liters of alcohol per
year per inhabitant.
Our target audience are consumers of legal age,
mostly men between 20-30 years old with a
solvent purchasing power so we plan to do
activations in clubs and bars so that the French
people can taste our tequila and put advertising in
train stations, buses and in street advertisements
as well as commercials at night.

 Product Efficiency
Versus Market
Suitability
We want to have many sales and minimal losses
so we will concentrate on product efficiency.
We will use the formula for production efficiency
to later increase production and measure
performance in order to quantify the effects of
improvements in our processes.

 Pricing strategie
There are very similar products in the market, that
is why we take into account factors such as: the
price of our tequila, the price of tequila among the
competition and the value that customers assign
to our product.
We will use penetration pricing that consists of
entering the market with a moderate price in an
easier way and once we have a presence in the
market, being able to gradually raise the price.

Marketing Implementation
Break-Even
Product sale price 700 Mexican pesos / converted into euros:
36.69 euros
Variable cost 50 pesos/ converted into euros: 2.62
Fixed costs 87,500 pesos/ converted into euros : 4586.77
Rent 28,500 pesos/ converted into euros: 1493.98
Electricity, water, telephone (essential services) = 9800 pesos/
converted into euros: 513.72
Salaries and others 49,200 pesos/ converted into euros:
2579.07
Variable Costs per Unit = Cost of sales + Raw material and
production cost + Distribution
Variable Costs per Unit = 100 + 150 + 50 = 300 Mexican pesos
Now let's calculate the break-even point:
Break-Even Point (in units) = (28,500 + 9,800 + 49,200) / (700 - 300)
Break-Even Point (in units) = 87,500 / 400
Break-Even Point (in units) = 218.75
The break-even point would be approximately 219 units of tequila.
This means that we will need to sell at least 219 units of tequila to
cover all of our costs and break even. If we sell more than 219
units, we will start making a profit.
Budget and return on investments
budget of 750,000 euros, here's the breakdown of each cost
and expense as a percentage of the total budget:
Rent or Lease: 20% of the budget.
20% of 750,000 euros = 0.2 * 750,000 = 150,000 euros
Utilities (electricity, water, heating, cooling): 10% of the budget.
10% of 750,000 euros = 0.1 * 750,000 = 75,000 euros
Staffing and Payroll: 30% of the budget.
30% of 750,000 euros = 0.3 * 750,000 = 225,000 euros
Maintenance and Repairs: 10% of the budget.
10% of 750,000 euros = 0.1 * 750,000 = 75,000 euros
Marketing and Advertising: 15% of the budget.
15% of 750,000 euros = 0.15 * 750,000 = 112,500 euros
Film Licensing Fees: 10% of the budget.
10% of 750,000 euros = 0.1 * 750,000 = 75,000 euros
Insurance: 5% of the budget.
5% of 750,000 euros = 0.05 * 750,000 = 37,500 euros
Administrative and Miscellaneous Expenses: 10% of the budget.
10% of 750,000 euros = 0.1 * 750,000 = 75,000 euros
Note: Data managed until business is profitable.
Marketing Implementation

Sales projections. Monthly & Annual Cash flow

Most of the data provided is based on assumptions and Based on the budget information and on our sales
in/or historical data. projections we can provide and estimate of our
Monthly Sales Projection: annual cash flow.
1. Tequila bottles Sales: 300 bottles per month Net Cash Flow per Month: Total Revenue per Month -
Assuming an average tequila bottle price, the monthly Total Expenses per
tequila bottle sales revenue would be 300 tequila Month = €21,004 - €4,585 = €16,419
bottles × €36.68 = €11,004. Annual Cash Flow: Net Cash Flow per Year: Net Cash
2. Other Revenue Streams: €10,000 per month.
Flow per Month x 12
Total Monthly Revenue: Tequila bottle Sales + Other
months = €16,419 x 12 = €197,028
Revenue
Therefore, the monthly cash flow for the Tequila
Streams = €11,004 + €10,000 = €21,004
Factory is approximately €16,419, and the annual
Therefore, the monthly sales projection for Tequila
cash flow is approximately €197,028.
factory is approximately
€21,004
Therefore, the annual sales projection for the tequila
factory is approximately €252,000.
Thank You