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Final Project
Export to Prague
June 23, 2013
International Business – MGMT598SABy Lutasha Tolliver, Antoinette Elliott, Selma Boudjemaa, Kervina Jolly , Francisco Hernandez Bernal,
Terry Coulon
What are blu eCigs?
Situation Analysis blu eCigs can provide a viable alternative to
traditional cigarettes.
Per the World Heath Organization, in the Czech
Republic 35.9% of men and 23.4% of females use
tobacco (World Heath Organization, 2012).
Smoking is still socially acceptable in Czech
Republic, but the tide is turning
Market Summary Estimated population of Prague: 1.21 million (Prague.cz,
2013)
Estimated 85.7% of Czech population is >14 years old (Czech Statistical Office, 2011)
Men and women are split 49/51(Czech Statistical Office, 2011) :
182,400 male smokers in Prague
123,750 female smokers in Prague
If 1% of Prague smokers switch to blu per year:
Starter kit revenue would be $214,000 for year 1
1 refill pack per week per customer = $2,388,000 for year 1
SWOT AnalysisStrengths
Well-established business model in United States
Five basic flavors plus seasonal flavors
Battery can be charged in specially designed case or by USB.
Electronic cigarettes are not highly regulated, and are less expensive
Weaknesses
Company is not known in Czech Republic
All manufacturing is done in United States; none in Europe
Name/color “blu” is integrated into branding, but there is a different word for “blue” in Czech language
Opportunities
Smoking is still prevalent and socially acceptable in Prague
Certain smoking bans are beginning to gain traction in the Czech Republic, which may push smokers towards e-cigarettes
Smokers perceive that e-cigarettes are safer than traditional cigarettes
Threats
Other e-cigarettes have been introduced to the Czech market
E-cigarettes have not been approved as a nicotine cessation product
Very few studies have been done on the safety of e-cigarettes compared to the number of studies on traditional cigarettes.
Competition Traditional Cigarettes (Euromonitor International,
2013)
Marlboro
Red & White
Petra
Start
Other e-cigarettes
V2 Cigs
Generic brands from China
Product DescriptionFirst time users starter kit contains the following:
One blu pack which holds 5 cartridges.
An additional carton of 5 cartridges with 5 different flavors and strengths.
One “atomizer” the heating element that serves to vaporize the liquid in the mouthpiece so that it can be inhaled
2 blu batteries
Outlet and USB battery charger
Refills are available at retail locations and on the website
Disposable option is also available in Classic Tobacco and Menthol
Financial Objectives Generate $7,800,000 in sales during the first 3
years.
Maintain prices lower than traditional cigarettes.
$70 for starter kits
$15 for refill packs (5 cartridges=5 packs of traditional
cigarettes)
$12 for disposable e-cigarettes
Efficiency in allocating advertisement budget in order
use the best value possible for marketing campaigns
Target Markets Geographic:
Prague, Czech Republic
Demographic:
Both Genders
18-55
Current smokers of
traditional or e-cigarettes
Psychographic:
Cost conscious
Wants to quit smoking
traditional cigarettes
Behavioral:
Loyalty
Way of Quitting Smoking
Product Related:
Nicotine
Cigarettes
Friendlier Product
Replace Cigarettes
Positioning blu eCigs are better than traditional cigarettes
Cheaper
Safer
More stylish
blu eCigs are better than other e-cigarettes
Easier to find (more retail locations)
Taste better
Not made in China, but in high-tech, quality controlled facility
StrategiesMain Strategy – Vs Traditional Cigarettes
Challenger: blu eCigs are better, cheaper, and safer
than traditional cigarettes
Other strategy – Vs Other E-Cigarettes
Leader: blu eCigs are more easily obtained, of
higher quality, more conveniently charged, and more
fashionable than other e-cigarettes
Marketing Mix Product: Deliciously flavored, conveniently
chargeable (or disposable) electronic cigarette
Promotion: Store displays, smart phone and tablet
application advertisements, social media, billboards,
sign in and near public transportation
Place: Local liquor stores, grocery stores, gas
stations, where ever traditional cigarettes are sold
Price: $70 for starter kit; $15 for refill packs; $12 for
disposable (slightly higher than in US due to cost of
export)
Marketing Organization
V.P. of Marketing – Czech Republic
Director of Strategy – Czech
Republic
Translation Manager
Translation Analyst
Translation Analyst
Marketing Research Manager
Marketing Research Analyst
Director of Advertising –
Czech Republic
Advertising Manager – Point
of Sale
Advertising Analyst
Advertising Analyst
Advertising Manager – Print
Media
Advertising Analyst
Advertising Analyst
Advertising Analyst
Advertising Manager –
Internet and Social Media
Advertising Analyst
Advertising Analyst
Conclusion We are confident that blu eCigs will be very
successful in Prague.
The situation will be closely monitored by our team,
measured by the following:
Sales vs Projections
Public Perception Surveys (online)
User Surveys (online)
The company is poised to take cultural issues into
account and manage diversity to make this
campaign successful
Import to the United States
Situation Analysis Glass products from the Czech Republic are prized on
the world market
Moser Glass would do well to begin providing glassware to banquet halls in bulk.
The United States has an appetite for luxury items
Many couples, from middle to upper class, are willing to spend extra for a luxurious wedding
Americans spend $8.3B per year on banquet services (IBIS World, 2013)
Banquet halls should upgrade their glassware to add to the enjoyment of the event experience and gain competitive advantage
Market Summay Census.gov lists 41,135 establishments with North American
Industry Classification System code 722320 – Caterers (U.S. Census Bureau, 2013)
If 1% of these business purchase and average of 400 glasses per year (the least expensive): Annual Volume: 411 x 400 = 164,400
Annual Revenue: 164,400 x $38 = $6,247,200
And an average of 400 piece of stemware (the least expensive): Annual Volume: 411 x 400 = 164,400
Annual Revenue: 164400 x $80 = $13,152,000
And an average of 2 punch bowls (the least expensive): Annual Volume: 411 x 2 = 822
Annual Revenue: 822 x $2,700 = $2,219,400
SWOT AnalysisStrengths
Quality and popularity of the glass products that we are selling
Moser glass is a well known brand
We can change direction quickly if we find that our marketing is not working
Weaknesses
Small marketing budget
High cost of production
Many competitors
Opportunities
There are many locations in the U.S. as a result a good opportunity for Moser glass would be mergers and joint ventures with other locations
Moving into other markets that offer improved profits
Branch out into markets where our competitors are not doing so well
Threats
Price wars with our competitors.
Competitors having new, innovative product that we currently do not have
The demand for our product going beyond our production capabilities
Competition Baccarat
Located in France; owned by U.S. company Starwood
Capital Group
Vietri
Located in Italy; largest exporter to America of Italian
tableware
Williams-Sonoma
Located in U.S.; popular high-end household goods store
Crate and Barrel
Located in U.S.; gaining popularity with upper-middle class
in the U.S.
Product Description Bohemian Crystal and Glass
Glasses
Stemware
Punch Bowls
Vases
Photo source: www.moser-glass.com/en
Hand Shaping and Blowing of the
Glass
Financial Objectives Generate $21.5M in sales during the first year.
Maintain premium pricing strategy:
Glasses: $38-$130
Stemware: $80-$300
Vases: $150-$15,000
Punch Bowls: $2,700-$15,000
Efficiency in allocating advertisement budget in order
use the best value possible for marketing campaigns
Target MarketsPrimary Market
Banquet Halls and Convention Centers with annual event and catering revenue >$1,000,000 per
year, and that cater to the following demographics:
Economic: Upper-middle class and upper class
Geographic: Urban and Suburban areas
Demographic: Men and women ages 30 to 65 years old.
Psychographic: Require a high-class experience
Secondary Market
Banquet Halls and Convention Centers with annual event and catering revenue >$500,000 and
<$1,000,000 per year, and that cater to the following demographics:
Economic: Upper-middle class and upper class
Geographic: Urban and Suburban areas
Demographic: Men and women ages 30 to 65 years old.
Psychographic: Require a high-class experience
Positioning For Exclusive customers, Moses Glass is the type of
elite gift that will provide a higher standard and unique
representation, because Moses Glass excels in
delivering a fashionable and elite presentation.
High Quality
Elite
Unique
Premium Product
Strategies Nicher
Banquet Halls and Convention Centers with high sales
Banquet Halls and Convention Centers with upper-
middle class and upper class clientele
Banquet Halls and Convention Centers that wish to
attract new customers of the upper-middle class and
upper class
Marketing Mix Product: glasses, stemware, vases, punch bowls
Promotion: Bridal Expos, Caterer Trade Shows,
Catering Magazines, Direct Mail, and Sales Calls
Place: Direct Order from Moser Glass
Price:
Glasses: $38-$130
Stemware: $80-$300
Vases: $150-$15,000
Punch Bowls: $2,700-$15,000
Exhibition: The Refined Element
Marketing OrganizationDirector of U.S. Banquet/Event
Marketing
Marketing Manager -Glassware
Senior Marketing Analyst –Stemware
Associate Marketing Analyst
– Stemware
Senior Marketing Analyst – Special Order Stemware
Marketing Analyst – Glasses and
Bowls
Marketing Manager –
Vases/Sculptures
Senior Marketing Analyst –
Vases/Sculptures
Associate Marketing Analyst
- Vases
Marketing Analyst - Sculptures
Marketing Research Manager
Conclusion Moser Glass is poised to add elegance and class to
any event with its glassware in the United States.
The situation will be closely monitored by our team,
measuring the following:
Sales vs Projections
Customer satisfaction surveys (mail or phone)
Public perception surveys (catering, bridal websites)
The company is confident that the American
marketing team can help make Moser Glass an
important name in the Event/Banquet industry.
ReferencesCzech Statistical Office. (2011). Final Census Results. Census of Population and Housing 2011: Basic final results. Retrieved from
http://notes.czso.cz/sldb2011/eng/redakce.nsf/i/final_census_results
IBIS World. (2013). IBISWorld Industry Report 72232: Caterers in the US. Retrieved from
http://clients1.ibisworld.com.proxy.devry.edu/reports/us/industry/ataglance.aspx?entid=1682
Euromonitor International. (2012). Tobacco in the Czech Republic. Retrieved from http://www.euromonitor.com/tobacco-in-the-czech-
republic/report
Prague.cz. (2013). Basic Prague and Czech Republic Info. Retrieved from http://www.prague.cz/aboutp.asp
United States Census Bureau. (2010). Statistics of U.S. Business. U.S.; all industries. Retrieved from http://www.census.gov/econ/susb/
World Heath Organization. (2008). WHO report on the global tobacco epidemic. Retrieved from
http://www.who.int/tobacco/mpower/mpower_report_prevalence_data_2008.pdf