The Question: ( Product Launch Plan) Two Parts Develop a product launch plan for two markets (domestic and international). Domestic: The United States International market is France The Question is...

The Question: (Product Launch Plan) Two Parts

Develop
a product launch plan for two markets (domestic and international).

Domestic: The United States

International market is France

The Question is attached

The Question: (Product Launch Plan) Two Parts Develop a product launch plan for two markets (domestic and international). Domestic: The United States International: France Part one: · Evaluate advertising and promotion programs for the new product (180-200) Due 06-15-2012 Part two: · The competition · Marketing objectives and marketing strategy For each market Discuss the above elements in (500 -530) words Due on 06- 21-2012 Running Head: Channel and Pricing Strategies1 Channel and Pricing Strategies The Remy Cointreau Group is one of the world’s leading wine and spirits groups. The company has amassed a prestigious portfolio of luxury wines and spirits and developed a reputation of excellence. The company remains loyal to its heritage by providing the highest quality products made from only the finest ingredients. Remy Martin V is the company’s newest spirit introduced to the market. With the international growth of alcohol consumption, The Remy Cointreau Group will launch the new brand in France. There are several factors that influenced our selected market that include market trends, the size of the market, growth rate and profitability. France had a strong GDP growth in 2011 and the unemployment rate has decreased gradually from 2.0% to 1.5%. The population of France is estimated at 65 million with 63.3 million living in the metropolitan area. The annual population growth rate is estimated at 0.5%. France has a GDP of $2.7 trillion and is the world’s fifth largest economy. The government’s economic policy focuses on promoting investment and domestic growth in a stable fiscal and monetary environment. Job creation is a primary focus and reducing the high unemployment rate is a priority. The global alcoholic beverage industry is expected to exceed $1 trillion in 2014 and market volume is predicted to reach almost 210 billion liters in 2014, which is a 10% increase in five years. Beer, cider, and flavored alcoholic beverages are the leading market segment. The EU market represents approximately 57% of the world’s alcoholic drink market. Almost 40% of the world’s alcoholic beverage consumption is from branded drinks from large companies that are operating internationally and investing in marketing to promote customer loyalty. The global spirits market expanded 3% in 2010 and is expected to increase 17% in the next five years. Leading companies in the spirits business are US based Bacardi which produces brands such as Grey Goose and Bombay Sapphire. Remy Cointreau is also a major player operating in the global alcoholic industry. Marketing channels are dependent organizations that include the method of possessing a good or service accessible for others. The channels create the direction the service or good will comply after preparation. It is imperative that the appropriate channel is selected because it influence marketing outcome. Remy Martin V is a new and upcoming spirit that has potential of becoming the biggest liquor on the market. A pull strategy would be beneficial to our particular product because it uses promotion and public notices to entice consumers to ask businesses for our product. When developing a marketing channel it is important to determine the customer wants, identify objectives, and establish other channels if necessary. Remy Martin V will use the multichannel marketing systems for our domestic and international markets. Having more channels involve means expanding the marketing area. Another benefit for using the multichannel marketing system is the reduced channel expense. The third benefit is creating more specialized selling. All three benefits will be favorable if the multichannel marketing system is practiced. For domestic and international markets, the pricing strategy for the company ought to be based on other competition cost. When making the decision on pricing for domestic and international markets, Remy Martin must assess the market and customer’s profit point in deciding the cost of the product. This should never be too high and too low. If prices are too high the attraction of customers would fail and the company profits prices would be too low. Remy Martin should use the cost based pricing strategy, which is (cost plus definite profit equals the price of the products. This is fitting for the company because it would provide adequate assistance to the organization and the customers would feel at ease to the company not charging soaring prices. The income scope must be near to the ground in beginning to keep a broad variety of customers for an extended period. Although Remy Martin will work at setting their price along with the cost, this could mean a normal gain of expenses all over. The gain will not include of any transfer prices, where charges for other units in the company would be done for shipment of goods and foreign supplementary. The French economy is suffering from increasing unemployment, an inefficient public sector and pressure to meet various currency convergence criteria (France Growth Rate, 2012). In fact, for the first time many French nationals have had to seek employment outside of France, especially in the progressive economies of the United Kingdom and the Republic of Ireland (SCF Corporate Management and Holdings). In France, there are both private and public companies. In chapter one, of the Rapid Change of International Business, speaks of how many components of business like Remy Martin are owned by the governments of numerous countries that do not consider themselves either communist or socialist. Governments connect themselves with companies for various reasons. · To extract more money from the company. The government suspects that the company are concealing profits; · The government believes it could run the firms more efficiently and make more money; · Governments sometimes nationalize industries, as has occurred in Britain, France, and Canada · Governments pump money into a firm or an industry, and control usually follows. The principal company is a society a responsibility limited (a Sarl) which is controlled by a company manager. All Sarl's must submit annual accounts, although as in Britain smaller companies need not submit audited accounts to the fiscal authorities. In the foreign environment, there are many economies instead of one, and they are highly divergent. Chapter ten of legal forces mentions that besides monitoring the foreign environments, analysts must stay informed of the actions taken by components of the international environment, such as regional groupings European Union (EU), and Central American Free Trade Agreement (CAFTA), and international organizations United Nations (UN). In order to be a potential market, an area must have sufficient people with the means to buy a firm's products. Socioeconomic data provide information on the number of people, and the economic dimensions tell us if they have purchasing power. The (GDP) is the most important indicator. (GDP) sums up total production of goods and services in a country in a given year, including production by foreign firms within a country's borders. The (GDP) is the chief value used to measure an economy's size. The parent group, Remy Cointreau developed a strategic marketing plan for 2010/2011. The strategic plan involved acknowledging various aspects of urban culture and going after a younger consumer base. The company got involved with activation programs to attract young adults. The company developed partnerships with international hip-hop and R’n’B stars such as T.I., Jay Z, and Usher to push this new campaign to the ultimate height. As result of the new partnerships, the company sponsored Rémy Dance Parties, Rémy Graffiti limited edition parties and finally the creation of the VSOP. The next innovative step was the 2010 launch of Centaure de Diamant, marketed as a status symbol of excellence for those who aspired to be the best, and have the best. This product launch represents: A new tribute to the excellence and character of Cognac Fine Champagne, Decanter cut like a diamond, and a contemporary expression of the ancestral expertise of the House (company), where time is the heart of excellence regarding the best Fine Champagne cognacs in the world. Technology Remy Cointreau has invested in new technologies to remain a leader in the industry and become a greener a company in the process. Below are two of the most recent technologies implemented by the company. The first technology is DEPHY ECOPHYTO Farms (Grenelle Environmental Forum), designed to optimize pesticide use only when use is inevitable, reduce pesticide use by 50% by 2018, create sustainable cropping systems, and save on pesticides and perform economically. The second technology is, “Mating disruption of butterflies “(Non-chemical control), which is an Innovative technique currently implemented in the Charente Region of France, and limits butterfly reproduction and consequently the birth of predatory caterpillars (grape worms.) The product Remy Martin V is a premium champagne brand and is recognized all ove the world. On the other hand France is a country with its one wine and dines culture. Cultural diversity as an added advantage and value to the organization as launching the product in France would result in there being a market that is quite compatible and ready to experiment mainly due to their culture which embraces champagne as a symbol of grace and happiness. Moreover the social and demographical factors are in favor of the product and the brand, which is an added advantage to Remy Martin V when being launched in France. The skills needed by the organization to implement the strategy include advertising and marketing as well as distribution. In this way it is possible for management team to not only launch their product in an effective manner but also possible to bring about a good level of sales and revenue. If marketing and distribution go weak then it would become difficult for the brand to survive. In this way it becomes essential to bring about an effective marketing and distribution strategy. The costs involved in acquiring these skills include market research and other promotion costs. Market research is essentially required because it is important for the firm to understand the market and its needs as well as their psyche and demographics in order to formulate their marketing campaign. In conclusion, the international market maintain offering prospects whereas making it hard to change opportunities into gainful business enterprises for the reason of the details and doubts related to pricing of the products in foreign markets. The obstacles are frequent, but should not deter a company from undertaking into the international market. Developing international pricing strategies can help earn considerable earnings for the company. Consistent advances to charging many not work, but a success in foreign markets cannot be the same to follow in others. References Ball, D. A., McCulloch, W. H., Frantz, P. L., Geringer, J. M., Minor, M. S. (2012). International Business, Chapters 1, 8, 9, 10, E-book Collection https://ecampus.phoenix.edu/content/eBookLibrary2/content/eReader Corporate Management and Holdings, http://www.scfgroup.com/Major_Tax_Systems/France/ “Demographics of France.” Retrieved from http://en.wikipedia.org/wiki/Demographics_of_France on June 8, 2012. “France GDP Growth Rate.” Retrieved from http://www.tradingeconomics.com/france/gdp-growth June 8, 2012. Remy Martin (2012). Annual Report. http://www.remy-cointreau.com/en/espace-actionnaires/annual-report/annual-report/