International marketing and
brand management
BRL
Sahar Erfani
David Kiss
Tobias Spindler
Tomas Voska
content
1.
2.
Introduction of BRL and Hardy
Kelly’s Revenge versus Banrock
Station
3.
Launch D’istinto or not
4.
We advise...
1
BRL
“The oil refinery of the wine industry”
Fortified, bulk, and value wines
Aggressive and commercial culture
“Fruit, funds, and disciplined management”
Hardy
Award winning quality
Polite and traditional culture
“Marketing expertise, brands, and
winemaking know-how”
BRL Hardy sales and Debt/Equity ratio after merger
sa le s i n m ilio ns A $
B R L H a rdy - s a le s
400
8 0%
D e b t/e q u ity ra tio
350
7 0%
300
6 0%
250
5 0%
200
4 0%
150
3 0%
100
2 0%
50
1 0%
0%
0
1992
1993
1994
1995
1 99 6
1997
2
Australian Wine Export Forecasts
500
actual export 1996
forecast export 2010
forecast export 2025
Sales (a$ milions)
400
300
200
100
0
UK
USA
Germany
Japan
# o f 9 lit e r-c a s e s o f H a rd y 's w in e s o ld in E u ro p e
2000000
1800000
1600000
1400000
1200000
1000000
800000
600000
400000
200000
0
1991
1992
1993
1994
1995
1996
1997
3
Problem Definition
1. UK Launch: Kelly’s Revenge or Banrock Station?
2. Should D’istinto be Launched?
Implication: Degree of Decentralization for BRL Hardy
New Product for the UK Market:
vs
• PRO
– Low Price Point
– UK Team Supports Product
–Aggressive/ Flashy Label
(For Younger or First-time
Consumers)
• PRO
– Low Price, Good Quality
– Already Launched => Low Cost
– Consistent With Global
Strategy
– Environmentally Friendly
• CON
– Not
a “Quality Wine for the
World”;Too Down Market
– ASDA not “Enthralled”
– Not a Global Brand
(Inconsistent with
Headquarters' Strategy)
• CON
– “Banrock's Station” is not
Recognized in UK
– UK Market is Not a Brand
Market
– Dull Label, Not Youthful
4
Perceptual Maps
price
Kelly’s
Revenge
£3.49
Banrock
Station
quality
Launch
or
Cancel
D’istinto
Strategic factors
• Launch
Brand for average consumer (£3.49 to £6.99)
European (or World) market target
Italian wine is very popular
Grape from Italy protects company against bad weather in
Australia
– Consistency with global strategy
–
–
–
–
• Cancel
– Competitor for Hardy’s Stamps and Nottage Hill
(but market is growing => we need more wines)
5
Launch
or
cancel
D’istinto
Organizational and Financial factors
• Cancel
•Launch
• Organizational factors
•Organizational factors
– UK will be overextended
– Poor JV management in past
(Mapocho)
– Decentralization
–UK team successful
–Carson knows Italian wine
–True partnership, unlike
Mapocho from Chile
•Financial factors
-Cheep launch (£500 000)
-Good forecast of selling
(made by Carson, expert on UK
market)
Launch
• Financial factors
– Development £100 000
– Risk another £400 000
(development)
or
cancel
D’istinto
Brand
•Label is great
•Very impressive colors; the whole bottle
“looks expensive” but price is medium-low
•Price range from £3.49 to £6.99 generates
80% of sales in UK
6
Davies
•Position of power (hierarchy)
•BRL Background
•Controls key resource, Australian grapes
•He wants to bring power back to headquarters
Carson
•Expertise in UK and European markets
•Numerous European customers are a key
resource
•“Earned stripes” by improving performance
through cost reductions even before BRL takeover
•Structural tension
–Carson reports to Davies, group marketing and export
manager, for marketing strategy.
–Carson reports to Millar for profit performance.
We suggest a change in organizational structure
Millar
Davies
Carson
7
4 options for launching
• Accept both D’istinto and
Kelly’s Revenge
– Reject Banrock Station
• Accept D’istinto and reject
Kelly’s Revenge
– Accept Banrock Station
• Reject D’istinto and accept
Kelly’s Revenge
– Reject Banrock Station
• Reject both D’istinto and
Kelly’s Revenge
– Accept Banrock Station
Promotes delegation
De-legitimates global brand strategy
Honor Carlson work
Legitimates global brand strategy
Shame Carlson
De-legitimates global brand strategy
Shame Carlson
Legitimates global brand strategy
Improvements for Banrock Station
New
Problem with label
label?
Old
More colorful, interesting,
impressive.
Inside is a quality wine and
that’s why first time drinkers will
continue drinking wine after the
first taste.
8
Australian Wine Export Forecasts
500
actual export 1996
forecast export 2010
forecast export 2025
Sales (a$ milions)
400
300
200
100
0
UK
USA
Germany
Japan
9