Old reserve marketing plan assignment

Proposed plan: Through internationalization, product portfolio would be renewed with the construction of a website dedicated solely towards ID Lanka Products and with a joint venture with the Liquor control Board in Ontario establish an online information hub about the product 3. 0 The market 3. 1 Description of the market In the present day Old reserve is a well known premium brand of arrack consumed mostly by the Sri Lankan recreational enthusiasts. It is one of the most popular alcoholic beverages in SriLanka.

It is not clear as to which precise as to which type of market old reserve caters to, but it’s usually a blend of Loyal, impulse and wandering customers. A large majority would weigh towards the “ Need ??? based” where customers go along the patriotic lines, hence consuming something Sri Lankan , Initiating a self identity of the tropical island or a memory of “ Sri lanka” within themselves. Old reserve is widely available in liquor stores, Bars/pubs, Nightclubs and selected restaurants. Description of Proposed Target Market

Based on the facts acquired through the Census department a conclusion has been reached to estabilish a joint venture towards Canada with the liquor control board of Ontario . As Canada Contains the largest concentration of Srilankans overseas and is one of the fastest growing community in Canada. [pic] 2. 2 Environmental Analysis Selected Country (Canada) would be evaluated under the PESTEL categorization: Sociological: ??? Population of 33, 487, 208 (July 2009 est. ) including a Sri Lankan concentration of 28 percent amongst the total population. Various Religions, but mainly Roman Catholic and Protestants comprising of more than half of the population. ??? English being the official language and French following through. ??? Ethnicity – British Isles origin 28%, French origin 23%, other European 15%, Amerindian 2%, other, mostly Asian, African, Arab 6%, mixed background 26% Economic situation ??? As an affluent, high-tech industrial society in the trillion-dollar class, Canada resembles the US in its market-oriented economic system, pattern of production, and affluent living standards.

Since World War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. The 1989 US-Canada Free Trade Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA) (which includes Mexico) touched off a dramatic increase in trade and economic integration with the US, its principle trading partner. Canada enjoys a substantial trade surplus with the US, which absorbs nearly 80% of Canadian exports each year.

This is the extent that less powerful members expect and accept un-equal power distribution. There lies a highly centralized and top down control. Uncertainty Avoidance: Predictability of culture values are not towards uncertainty. Uncertainty accepting cultures, are more tolerant of opinions different from what they are used to; they try to have as few rules as possible, and on the philosophical and religious level they are relativist and allow many currents to flow side by side. People within these cultures are more phlegmatic and contemplative, and not expected by their environment to express emotions.

Individualism / Collectivism: Individuality is in a good concern; therefore, each personnel can have their own rights to some extent. Masculinity / Femininity There is quite an equal degree of gender roles. But individually in Maldives context, it’s more towards masculinity. Long-Term / Short-Term Orientation: Canadian businesses are not that long-term oriented since the players in the market are of various nations offering variety of products. Since ID Lanka does indirect export, it would not affect the company much. STP- segmenting, targeting and positioning

Since there is no competitive market , competitive pricing would not be considered but a pricing strategy would be allocated balancing the taxes, tariffs , manufacturing and logistics costs added up 1. 6 Pricing Strategy Deliberate planning of the pricing structure in relation to factors such as consumer wants, product attributes and competition in such a way as to ensure overall profitability Since the Product is a product of value and tradition it would be based upon a need based product where consumers would want to keep in touch h with their roots. Market Price Analysis Old Reserve Price Details 50 ml bottle ??? 40 $( American dollars) Cost incurred by ID Lanka | Descriptions | Costs | | Total Average Making cost per Product | $100 | | Wastage (damaged goods) |(1% of Total Cost) | | BOI Documentation Cost |$. 3. 50 | | Transport Agent Charge* |$ 200 | * Transportation Agent Charges are inclusive of Import Tax, Gem’s Tax, Handling, & Security charges. . 7 Distribution Objectives In order to transport our unique products to our consumer, we need to choose the best transportation agents to distribute our products to Ontario (Canada). ? to increase product availability ? to improve product delivery times 1. 8 Promotion Strategy A distribution strategy defines how you are going to move products from point of creation to points of consumption in an efficient and cost-effective manner. Transportation Agents will be selected from Sri Lanka and the product will be sent through them to the terminal countries. Some Existing Foreign freight Forwarders are; MA Lanka o Amila Trade o Vrinks Distributors are found to do the marketing in the terminal countries, where they would; ? Inventories sent to the orders only ? After sales services are done by the distributors ? There is a long term relationship with distributors Transportation The products are packaged and labeled ID Lanka in Sri Lanka and then the Transportation Agents are being called to the company for the transfer of goods. These transportation charges will be included in the freight charges taken by the agents. Thereafter, Agents will be sending the products via Air to the destination. . 9 Entry Strategy Beverage alcohol must be imported into Canada through a liquor board or commission in the province where the product will be sold/consumed. Generally speaking, exporters must have their products “ listed” by the liquor control agency in each province individually. The liquor board or commission usually serves as the importer of record and along with the registered agent coordinates the importation of the product. In most provinces, it is necessary to have a registered local agent who can assist in obtaining a provincial liquor board listing.

Agents also obtain label approvals and any other issues on behalf of the exporter. Exporters should contact the liquor control agency for the province in which they seek to do business in order to obtain a list of registered agents. To start off in international boundaries, Company intends to first distribute to Well known Night clubs, pubs and selected Liquor stores within a populated Sri Lankan Community . To attract the popularity in order to generate a push start a publicity stunt would have to be considered within the Lankan community.