Internationalizing Bulgarian Rakia

Introducing Bulgarian "Peshterska Grape”

rakia to the Swedish publics

Communication plan

Situation analysis: Internal

• The Company:

• The Product: "Peshterska Grape” rakia

What is the Unique Selling Point of Peshterska Grape rakia in Sweden?

Good after-dinner drink, reasonably priced and organically produced from pure Bulgarian grape.

Situation analysis: External analysisTarget country: Sweden

• Alcohol policy – restrictive national rules challenged by EU trade treaty

– Minimum age for shop sales is 20 years

– alcohol ads restrictions

– high taxation

– the Swedish alcohol monopoly – Systembolaget

This is Systembolaget

“Systembolaget, the Swedish Alcohol Retail Monopoly, exists for one reason: To minimize alcohol-related problems by selling alcohol in a responsible way, without profit motive.”

Market trends Economical trends

• More homogenous alcohol

consumption in Europe

• Alcohol consumption has recently

declined in Sweden

• More alcohol purchased at

Systembolaget

– Sales of spirits increased at 6.6

percent

• Recession has worsened in 2009

• Household consumption down

• Increased advertising in the

wine and spirits industry

• Consumers increasingly difficult

to interpret

Social trends

• More single person households• Swedes are becoming increasingly individualistic

and anti-authority• Rising demand for individually tailored products

and services• Consumer preferences less dependent on

geographic location• Increased focus on luxury and pleasure• Increased awareness of health and wellbeing

Cultural dimensions Hofstede

Technology, the environmentand social responsibility

• Awareness of climate change • CSR issues important• Fair Trade products more popular• Growing interest in organic products• Growing interest in locally produced products• Increased social conscience

Competitors &entry barriers:

• Sales trends − spirits– In Europe, sales of brandy, gin and other spirits by

volume are declining– Vodka and rum, which are often used as cocktail

ingredients, experienced most growth in the period 2003-2008

– Sales of whisky will increase

Segment trends - spirits

Aperitif Spiced distilled spirits Clear spirits Liqueurs Avec Whisky Malt whisky

1%

7%

39%

10%

5%

33%

5%

Market share*

Systembolaget sales trends – spirits

Aperitif Spiced distilled spirits Clear spirits Liqueurs Avec Malt whisky

3

1

2 2

3 3

New entries 2010

SWOT analysis: Vinprom Peshtera• Strengths:

the most popular brands on the Bulgarian alcohol market target in organic alcohol market Middle priced

• Weaknesses: Weak national brand No rand awareness in Sweden

• Opportunities: Premium pricing (compared to home market) Big market High bargain power of customers First-mover (the product doesn’t exist on the Swedish market)

• Threats: Strong competitors (vodka) Monopolistic retail system Cultural unacceptance

Target groups

• Drinking patterns in Sweden

only eatingmainly eatingmainly not eatingonly not eating

Target group

• Mature men and women with professions, single or with family, middle class, modern and busy life, enjoying nice healthy food with friends accompanied with a pure distinguished drink, don’t use a lot of media, online active though(reading also newspapers internet editions), do care for culture and art.

Communication objectives

• Knowledge: Brand awareness– After the campaign 30 % of the target group will

know about the new Peshterska rakia from Bulgaria

• Action– After the campaign 10% of the target group will

try the product

Communication strategy: Positioning & Message

• Positioning: Qualitative after-dinner drink with pure

organic ingredients, reasonably priced.

• Message:Enjoy Pure Alcohol !(in the home market: “From a good grape

– a good rakia”)

Media

• Webvertising in online editions of big newspapers:– http://www.aftonbladet.se/ (the most visited daily) – http://www.stockholmnews.com/ (in English)– http://www.thelocal.se/ (family readers)– http://op.se/ (economics)

• Print adverts in magazines:• http://www.hennes.egmont.se/(lifestyle, politics)

Website of the Peshterska Grape Rakia in Swedish

• www.rakia.se – Enjoy pure alcohol!– focus on organic origins and products– Rakia placement – Systembolaget; bars and

restourants

Labeling and Packaging

• Including a shot of the bottle in the print and internet ads will enhance brand awareness.

• The bottle of Pesterska Grape rakia is just as interesting as the rakia and this makes it an attractive gift.

• Ads and label focused on the healthy benefits of the drink.

Activity Plan

• Summer 2010 – sending a sample for testing to Systembolaget

• April 2011 – starting the communication campaign:– Consulting a local advertising agency – Producing the print and online adverts– Launching the adverts in the selected media

channels• Evaluation – June 2011