JOHNNIE WALKER

RED LABELLEONARDO BEMBO

BEGÜM KONORSELIM TEPELERMERTCAN SEZERUMUT CAN AYDIN

ISSUES✓ Difficult for customers to make comparisons✓ Regulations and legislations against advertising and

promotions✓ High competitive rivalry

TARGET MARKET● B2B customers are bars, hotels, clubs, restaurants and

retailers that sell JW Red to the end users.

● Willing to pay less for whiskey

● Mostly consists of young professionals and university

students

● People who are trying whiskey for the first time.

WHAT IS OUR CUSTOMER’S VALUE PROPOSITION?Why Alcohol?● Entertainment(Cheerful and Delighted)● Social Lubricant(Self-Confidence)● Relaxant

Why JW over others?● Global brand that is trusted and reliable● Whiskey being perceived as a premium drink in Turkey● Decent quality whiskey with the lowest price● High brand awareness compared to other whiskey

brands● Country of origin effect (Scottish)

MARKETPLACE ANALYSIS GENERAL ECONOMIC CONDITIONS

• Population: 78.7 million

• GDP per capita: $11,524.51

• Unemployment rate: %10.1

• Money spend on alcohol per year : 18 billion TL

● Female & Male : 49% - 51%

● High alcohol consumption : Edirne, Muğla, Tekirdağ, Tunceli, Antalya, Aydın and İzmir

● Lowest alcohol consumption : Bayburt, Bitlis, Ağrı, Batman, Bitlis, Şırnak, Van, Hakkari, Şanlıurfa and Muş

MARKETPLACE ANALYSIS DEMOGRAPHICS

MARKETPLACE ANALYSIS SOCIETAL VALUES & LIFESTYLES

• Alcohol is religiously prohibited• However, this makes it

tempting (The Paradox of Temptation)

• Drinking to keep up with the trend

• Young people go out more and socialize

• Increasing health concerns

MARKETPLACE ANALYSIS REGULATIONS & LEGISLATIONS

• Promoting alcohol is forbidden by law.• Scenes and photos that encourage alcohol on all media is

forbidden by law.• Alcohol cannot be purchased from retailers between 10:00 pm

and 6:00 am.

MARKETPLACE ANALYSIS TECHNOLOGY & INFRASTRUCTURE• Advancing technology results in better logistics • The popularity of internet shopping is increasing• Social media usage is very popular which enables the word of

mouth advertising • Increasing credit card usage

DRIVING FORCES● Increasing stress levels● Globalization of cultures ● Changing life styles ● Increasing usage of social media ● Credit card usage ● Availability of online shopping websites→ opportunities to

compare products in online platforms ● Increase in the disposable incomes of young population ● Increasing number of retail stores.

KEY SUCCESS FACTORSMental short-cuts: in the decision making ● Country of origin effect :Having “Scottish or Irish

Label” ● High-value ● Familiar brand names● People value price/performance ratio

First time triers target group: the taste of the whiskey B2B long term contracts: long term stability.

PORTER’S 5 FORCES

PRODUCT LIFE CYCLE

COMPETITOR ANALYSISSTRENGHTS & WEAKNESSES

Chivas RegalStrenghts:● Better taste and quality

● Higher brand equity

● More recognizable bottle design

Weaknesses:● Higher price

COMPETITOR ANALYSISSTRATEGIC MAP

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JIM B

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FINANCIAL ANALYSISINCOME STATEMENT

DIAGEO

DIAGEO (GBP in Millions)

PERNOD SA(EUR in Millions)

06/30/2014 06/30/2015 06/30/2016 04/30/2014 04/30/2015 04/30/2016

Revenues

10,250 10,813 10,485 7,945 8,558 8,682

% of growth

- 5.49% -3,04% 7.71% 1,45%

Net profit

2,248 2,381 2,244 1,016 861 1,235

Net profit margin

(%)

21.93% 22.02% 21.40% 12.79% 10.06% 14.22%

FINANCIAL ANALYSISRATIOS

PROFITABILITY AND VALUE DIAGEO PERNOD SA INDUSTRYROA 8,50% 4,12% 9,20%ROE 29,15% 9,57% 21,18%

EPS 0,90 4,68 Payout Ratio 0,64 0,40

P/E 23,31 21,39 25,93

LIQUIDITY DIAGEO PERNOD SA

INDUSTRY

Quick Ratio 0,69 0,40

EFFICIENCY DIAGEO PERNOD SA INDUSTRYInventory Turnover

0,86 0,58 5,69

Total Assets Turnover

0,39 0,28 0,81

LEVERAGE DIAGEO PERNOD SA INDUSTRYTotal Debt to Equity Ratio

121,58% 70,20% 871%

Interest Coverage Ratio

6,32 4,89

Cash Flow Coverage

1,33 0,05

FINANCIAL ANALYSISRATIOS

SWOT STRENGTHS FROM WHERE IN THE

ANALYSISReliable and trustable brand Value PropositionCountry of origin (Scottish) Key Success FactorsHigh price/performance ratio Key Success FactorsHigh brand awareness Value PropositionNostalgic attachment Value PropositionHigh penetration Porter’s 5 ForcesRelationships with channel members

Key Success Factors

SWOTWEAKNESSES FROM WHERE IN THE

ANALYSISTaste and flavor Competitor AnalysisLow recognition of bottle design Competitor AnalysisLow price damaging brand image Competitor Analysis

SWOTOPPORTUNITIES FROM WHERE IN THE

ANALYSISIncreasing consumption of alcohol insocial events

Driving Forces

Increasing taxation for other alcoholic beverages

Product Life Cycle

Increasing buying power of youngpopulation

Population Demographics

Increasing use of social media Technology / InfrastructureIncreasing GDP per capita General Economic ConditionsIncreasing number of retailers, easyaccess to end users

Driving Forces

Decreasing consumption of local brands

Product Life Cycle

Increasing usage of credit cards Technology / Infrastructure

SWOTTHREATS FROM WHERE IN THE

ANALYSISAdvertisement regulations Legislations / RegulationsRegulation against sales after 10 pm

Legislations / Regulations

High taxation Product Life CycleIncrease in exchange rate General Economic ConditionsIncreasing health concerns Societal Values and LifestylesIncreasing competition Porter’s 5 Forces

LOW COST GENERIC STRATEGYHigh price/performance ratio and high penetration in marketOpportunities:

• Rising taxation for other alcoholic beverages • Increasing usage of credit cards, • Rising buying power of young generation Cost leadership strategy: Damages our brand image

MUST! Increasing exchange rates charge additional costs for imported products. Long-term sustainable competitive advantage: our competitors will suffer more due to costs currency

IMPLEMENTATION: INCREASING DISTRIBUTION INTENSITYWho? ● Small groceries and supermarkets in cities in which

alcohol consumption is higher than other citiesHow? ● Increasing the availability of 35cl, 50cl and 100cl SKUs

of JW Red in shelves Why? ● Serve more customers that have different needs.● Increase market coverage

IMPLEMENTATION: INCREASING DISTRIBUTION INTENSITYWhat do we need? ● Additional allocated space ● More inventory costs and transportation costs● New contracts with existing retailers for different SKUs

Strengths/Oppurtunities? ● Increasing buying power of young population● Incrasing number of retailers● Good relationships with channel members

Threats/Weaknesses? Recognition of bottle design is lower than our competitor: ChivasLegislations: One way to compete in this market is by efficient distribution channel.

IMPLEMENTATION: STEALTH MARKETING - EKŞİSÖZLÜKWho? ● Customers who use online platforms to compare

productsHow? ● Having more positive reviews at Ekşisözlük about JW

Red● JW employees would write the reviews, a translator

would post the reviews to Ekşisözlük in TurkishWhy? ● Advertising regulations● Customers rely on WOM to make purchase decisions● Ekşisözlük is always at the top three results

IMPLEMENTATION: STEALTH MARKETING - EKŞİSÖZLÜKWhat do we need? ● To hire a part-time Turkish-English translator

Strengths/Oppurtunities? ● Brand awareness● High price/performance ratio● Increasing use of online platforms to compare products

Threats/Weaknesses? ● Advertising regulations● High competitive rivalry● High threat of substition

IMPLEMENTATION: OPINION LEADERS

Who? ● Customers who follow blogs

and social media celebritiesHow? ● Having Keyif Adamı and

Beyaz Yakalı Gurme to write positive reviews about JW Red

Why? ● Customers are influenced

by opinion leaders● Advertising regulations

IMPLEMENTATION: OPINION LEADERSWhat do we need? ● Contacting with opinion leaders● Making payments according to the performance of the

postsStrengths/Oppurtunities? ● High price/performance ratio● Countr of origin and reliability● Increasing use of social media

Threats/Weaknesses? ● Low price damaging our brand image● Advertising regulations● High competitive rivalry

CHEERS! THANKS FOR LISTENING!