Boone's Farm Wine in Spain

Topics: Alcoholic beverage, Wine, Marketing Pages: 23 (7295 words) Published: November 21, 2010
Boone’s Farm in Spain
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International Marketing
May 14th 2009

Group 6:

Executive Summary

After careful consideration, we have to conclude that introducing our product in this new market could definitely be a success. Since research shows us that our current target market is also well represented in Spain, there is enough potential for a large offset. Furthermore, it showed that Spanish youngsters crave American products, which will create a lot of leverage for us to create brand equity.When entering the market we will pursue a focus differentiation strategy. This will allow us to market the American origin of our product, which will appeal to our specific target market. We will market our product as a malt liquor beverage, rather than a wine. This will help us to overcome the difficulties of a wine product (old-image, perceived quality should be high, etc.) and will allow us to offer the product as an exciting new mix drink for youngsters. The American foundation of our product will be widely used in marketing the product to develop brand awareness. This might include slight alterations to labeling in order to make it look even more American.

The product will be marketed through several channels, which include promotional events, online advertisements, and television adds. Since no significant differences exist within our target market throughout the country, we will be using a pull strategy in launching a nationwide campaign. Our local sales representatives will use a push approach with the supermarket owners, giving them a lot of personal contact.

With regards to our pricing strategy, we will initiate a low-price penetration strategy, allowing us to gain considerable market share in a short amount of time. After gaining this market share, we have created enough brand equity to launch additional flavors, products and services (like events).

Due to cost constraints, the products will be produced in Spain, which rules out a large part of our distribution channel issues. Local managers that will be hired by Boone’s Farm will manage factories and orchards. Further analysis should show us whether or not to outsource local distribution. Info/Facts About Target Country

Spain is a constitutional monarchy in the Southwest of Europe, with King Juan Carlos as the head of state. Spain went through a peaceful transition to democracy after the death of dictator Franco in 1975 and joined the European Union in 1986, which has resulted in Spain becoming one of the most dynamic economies in Europe. Moreover, it was one of the founding members of the Economic and Monetary Union (EMU) in 1999. (Economist, 2009) The latter resulted in the Euro now being the national currency. Flamenco, corrida and sangria, a drink that is made from red wine combined with other spirits such as brandy or whiskey and fruits, are considered as the symbols of Spain. (Europe-cities, 2009) Spain’s terrain is largely flat to dissected plateau surrounded by rugged hills. In the North, near the French border, the peaks of the Spanish part of the Pyrenees dominate the terrain. Other than the mainland, Spain also controls a number of islands in the Mediterranean Sea (e.g. Ibiza and Mallorca) and the Atlantic Ocean (Canary Islands). Furthermore, Spain’s summers are hot in the interior and more moderate and cloudy along the coast, while winters are cold in the interior and partly cloudy and cool along the coast. (CIA World Factbook, 2009) Estimated is that Spain will have 40,525,002 inhabitants in July 2009. Of this population 14.5% is between the ages of 0 and 14, 67.4% is between the ages of 15 and 64 and 18.1% is aged 65 and over. For the group ranging from 0 to 64 the ratio of males to females is roughly 1:1, whereas that ratio is roughly 2:3 in the age group of 65 and over. In addition, population is not expected to grow significantly in the coming years, and a growth of 0.01% is estimated to occur in...

References: 1. Boone’s Farm Fan Club, Flavors, http://www.boonesfarm.net/flavors.html, Retrieved on April 27th, 2009
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3. Doing Business, http://www.doingbusiness.org/ExploreEconomies/?economyid=173, Retrieved April 27th, 2009
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5. Economist, http://www.economist.com/countries/Spain/, Retrieved on April 28th, 2009
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7. Eroski, http://www.compraonline.grupoeroski.com/ecoventa/tienda/tienda.jsp, Retrieved on May 8th, 2009
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9. Europe-cities, http://www.europe-cities.com/en/694/spain/eating-out/163_sangria/, Retrieved April 28th, 2009
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11. Federacion Espanola del Vino, Wine consumption in Spain (Presentation), 2005
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13. Hofstede, G., 1991, Cultures and Organizations, London, McGraw-Hill ( See Appendix I
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15. Instituto Nacional de Estadística, http://www.ine.es/en/welcome_en.htm, Retrieved on May 8th, 2009 (See Appendix II
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17. Merca 2.0, Boone’s lanza bebida sabor toronja, http://www.merca20.com/?p=14746 Retrieved on April 24th, 2009
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19. Mujer Ejecutiva, Sabor y aroma…características de Boone´s, http://mujer.mundoejecutivo.com.mx/articulos.php?id_sec=34&id_art=542&id_ejemplar=31, Retrieved on April 25th, 2009.
20. Restaurantes de México, Dulce y refrescante, http://www.restaurantesdemexico.com.mx/329/Vinos_y_Bebidas_Dulce_Y_Refrescante.html, Retrieved on April 24th, 2009
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22. Social Issues Research Centre, http://www.sirc.org/publik/drinking6.html, Retrieved on May 8th, 2009
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24. U.S. Commercial Service, http://www.buyusainfo.net/body2.cfm?id=0&dbf=ccg1&country=Spain, Retrieved April 27th, 2009
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Hofstede, G., 1991, Cultures and Organizations, London, McGraw-Hill
|  |PDI |  |Power Distance Index |
Appendix II:
Instituto Nacional de Estadística, http://www.ine.es/en/welcome_en.htm, Retrieved on May 8th, 2009
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