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Global Marketing Management Individual assignment

Anna Paterlini

I119446

October, 30th 2015

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Contents

1. EXECUTIVE SUMMARY ................................................................................................................... 3

2. THE COMPANY: GRUPPO CAMPARI ........................................................................................... 4

3. ANALYSIS OF MACRO-ENVIRONMENT ...................................................................................... 4

3.1. PESTLE ANALYSIS ............................................................................................................................ 5 3.2. PORTER’S 5 FORCES ANALYSIS ......................................................................................................... 9

4. IMPLICATIONS: RISKS AND OPPORTUNITIES ..................................................................... 12

5. RECOMMENDATIONS: STRATEGIES AND TACTICS ........................................................... 13

5.1. STP (SEGMENTATION, TARGETING, POSITIONING) MODEL ....................................................... 14 5.1.1. SEGMENTATION .......................................................................................................................................... 14 5.1.2. TARGETING .................................................................................................................................................. 14 5.1.3. POSITIONING ............................................................................................................................................... 14 5.2. MARKETING MIX OR THE 4PS OF MARKETING (PRODUCT, PRICE, PLACE, PROMOTION

STRATEGIES) .............................................................................................................................................. 15 5.2.1. PRODUCT ...................................................................................................................................................... 15 5.2.2. PLACE ........................................................................................................................................................... 15 5.2.3. PRICE ............................................................................................................................................................ 15 5.2.4. PROMOTION ................................................................................................................................................. 15

BIBLIOGRAPHY ...................................................................................................................................... 19

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1. Executive Summary This report aims to support Campari Group in the decision process of international

expansion in two new markets: South Korea and Indonesia.

Gruppo Campari is an Italian-based company active since 1860 in the branded

beverage industry and the sixth-largest player worldwide in the premium spirits

industry.

Both macro-environments have been analyzed and based on such results, it is

advisable that Campari Group prefers an expansion in South Korea and wait for

further development in the country’s policies and regulations for what concerns

Indonesia. Even though both markets are growing and promising, South Korea is

more stable politically, open to foreign companies and advantageous tax-wise.

Campari Group is renowned for its strategic growth based by way of acquisition,

therefore it is recommended to start buying into the local brand- Hite-Jinro Group -

to build new distribution platform.

Marketing objective: increase the company’s net sales of 2.0% with a

consolidated net sale of the RoW and Global Retail Travel region of 12.3%.

Target market: young (20-35 yrs) educated and well-travelled South

Koreans.

Products: Top Brands like Aperol and SKYY Vodka, Campari’s collection of

Sparkling and Still Wine (High Potential Brand) and the SKYY Vodka-based

ready to drink products (Key Local Brand).

Strategy: opposite to traditional marketing tactics of South Koreans

marketers based on “Hot-female-celebrity” to differentiate and distinguish

the brands. Guerrilla marketing based on a mix of flash mob, partnership

with local web-celebrities, brands and bars, web contests and

communication campaign on local social network KakaoTalk and YouTube.

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2. The company: Gruppo Campari Gruppo Campari traces its beginnings back to 1860, with the birth of its flagship

brand and signature, Campari (Gruppo Campari, 2013a). In the 1990s, Gruppo

Campari chose a route of international growth by way of acquisition and entering

growing markets (Gruppo Campari, 2013b).

As of today, Davide Campari-Milano S.p.A., together with its affiliates (‘Gruppo

Campari’), is a major player in the global beverage sector, trading in over 190

nations around the world with leading positions in Europe and the Americas.

The Group’s portfolio, with over 50 brands, spans spirits, the core business, wines

and soft drinks. Campari owns 16 plants and 2 wineries worldwide and has its own

distribution network in 19 countries. The Group employs around 4,000 people

(Gruppo Campari, 2013a). In FY 2014, the Campari group registered 1.5 billion

revenues (doubled business scale in the last 10 years) (Gruppo Campari, 2015b).

In 2015, it was the sixth-largest player worldwide in the premium spirits industry

(Intangible Business, 2015).

The alcoholic beverage market is a growing and highly competitive market -

generally, main competitors of the company are Diageo PLC, Beam Suntory Inc.,

Brown-Forman Corporation. Traditionally, Campari Group’s target market is Italy

(26,4% of the company’s sales), which has now been taken over by the Americas,

now the largest market for the company (38,8% sales) (Gruppo Campari, 2015b).

However recently, the company has been working towards reaching prominence in

the Asian and the Pacific area as well.

3. Analysis of macro-environment In order to evaluate the feasibility of the international expansion of the Campari

Group in South Korea and Indonesia, the analysis of the macro-environment of both

countries is essential. Two tools have been deemed appropriate: PESTLE analysis

and Porter’s 5 forces analysis.

a) PESTLE1 analysis is focused on the environment as a whole and therefore

on the systematic factors the company needs to chart out in its strategy.

b) Porter’s 5 forces analysis looks at the environment based on 5 segments

study, which are: (1) Rivalry among Competing Firms; (2) Potential entry of

new competitors; (3)Substitute Products; (4) Bargaining Power of suppliers;

(5) Bargaining Power of Buyers.

1 PESTLE stands for: P for political forces; E for economic forces; S for social forces; T for technological forces; L for legal forces, E for environmental forces.

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3.1. PESTLE Analysis

3.1.1. Political Forces

Since Campari Group operates worldwide, global political factors greatly influence

the performance of the company.

South Korea:

Country rating BB1

Legal drinking age: 19 yrs old

The nation has well-defined investment policies and support from

government and industry associations encouraging free trade. There are

enormous expansion opportunities for starting of business unit in South

Korea (BMI Research, 2015a).

South Korea is a firmly established democracy. There is political stability but

South Korea is engaged in territorial dispute with Japan over the Tokdo

Island, which South Korea controls under the name Takeshima. There is also

a dispute between North Korea and South Korea (Euler Hermes, 2015a).

In 2014 the Ministry of Health and Welfare launched a campaign last year to

have people restrain from heavy drinking (The Asahi Shimbu, 2012).

However, the South Korean media has not joined in on the campaign.

Indonesia:

Country Rating B2

Legal drinking age: 21 yrs old

Indonesian President Joko Widodohas struggled to maintain his popularity

since October 2014. This trend will likely to persist as Jokowi's anti-

corruption drive continues to falter, while a spate of counterproductive

measures and ongoing political uncertainty undermines business sentiments

and economic growth (BMI Research, 2015b).

Indonesia has had a prudent fiscal management and a sound macroeconomic

policy framework in recent years (Euler Hermes, 2015b).

Relatively good international relations (Euler Hermes, 2015b).

Ongoing (often violent) social, religious and/or ethnic conflicts in several

provinces (Euler Hermes, 2015b).

3.1.2. Economic Forces

These factors are the main point of concern for Campari Group, as they are most

likely to leverage costs, demand, profits and prices.

South Korea:

The South Korean economy is expected to witness significant growth over

the next five years and grow to $1.72 trillion by 2018 at the current price

(BMI Research, 2015a).

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Unemployment rate reaches only 3% and the country is considered the 4th

economy of all Asia and it is part of the World Emerging Markets (together

with Indonesia, Mexico, Turkey and Saudi Arabia) (Maniglia, 2014).

Labour market is well suited to attract foreign businesses. It boasts a high

level of education and employable skills amid reasonably high

unemployment. This means there is a large number of educated, skilled

labourers seeking work, representing significant opportunity for employers.

However, the major risks involve a shrinking labour force - the result of an

aging population - and the limitations and pressure placed on South Koreans

by the rigid education system. Overall, South Korea receives a Labour Market

Risk score of 67.6, placing it sixth out of 30 states in the Asia region (Lucintel,

2013).

As a medium-sized open economy (trade accounts for 107% GDP), South

Korea is structurally sensitive to external shocks (Euler Hermes, 2015a).

Even though stagnant salaries have been addressed as the primary culprit for

weak domestic spending, alcohol seems to be the one consumer sector doing

well (Chandran, 2015).

Indonesia:

Indonesia ranks among the more stable economies of the Asia Pacific region

(Lucintel, 2012), with a significant growth in its GDP over the last five years.

The average GDP growth rate from 2001 to 2012 was 5.4%, which made

Indonesia also one of the fastest-growing economies in Southeast Asia during

that period (Lucintel, 2012).

GDP growth slowed from 5.0% to 4.7% at the beginning of 2015 reflecting

deceleration in government expenditures and lower export growth. Private

consumption and investment proved resilient. Exports figures remains on a

downward trend and industrial production growth is volatile (Euler Hermes,

2015b).

The country has an advantageous position in terms of its young population.

The level of education plays a vital role in the development of better quality

human resources in the country. In Indonesia, the national literacy rate

stands at 92% and there is approximately 39% enrolment in tertiary

education, which is ample and indicates the quality of higher education

(Lucintel, 2012).

In 2012 the tourism sector contributes to around US$9 billion of foreign

exchange, and is estimated will surpassed US$10 billion in 2013. The tourism

sector ranked as the 4th largest among goods and services export sectors. In

year 2014, 9.4 million international visitors entered Indonesia, staying in

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hotels for an average of 7.5 nights and spending an average of US$1,142 per

person during their visit (Indonesian Invesment, 2014).

3.1.3. Social Forces

The type of goods and services demanded by consumers is mostly influenced by

their beliefs and attitudes, which, in turn, are influenced by social conditioning.

South Korea:

South Korea stood at 13th in the world in per capita alcoholic beverage (in

particular, distilled liquor) consumption in 2005, at 14.8 liters, far exceeding

Japan’s 8 liters and China’s 5.9 liters (The Asahi Shimbu, 2012).

South Koreans drink 13.7 shots of liquor per week on average, which is the

most in the world. (Ferdman & King, 2014). South Korea’s unparalleled liquor

consumption is almost entirely due to the country’s love for a certain

fermented rice spirit called Soju (97% of the country’s spirits market)

(Wirdana, 2015).

Indonesia:

The major source of domestic consumption in the country is its burgeoning

middle class (Lucintel, 2012).

Private consumption is set to remain solid supported by strong labour

market, strong real wage growth and improving consumer confidence (BMI

Research, 2015b).

Vast majority of Indonesians are Muslims who, though not all devout,

understand that alcohol is forbidden in Islam (Wirdana, 2015).

Singapore, Malaysia, China, Australia, and Japan are the top five sources of

visitors to Indonesia (Indonesian Invesment, 2014).

3.1.4. Technological Forces

This element has become a key factor for organizations in assessing and listing

issues that could have a potential impact on its operations and that could be critical

to its long-term future.

South Korea:

The country is a leader technology due to its success in manufacturing and

exporting cutting edge electronics products (McGlade, 2014).

Indonesia:

Indonesia has weak infrastructure in terms of railways and roadways. Poor

infrastructure presents obstacles in the growth of investment in the country

and is a major obstacle in industrial growth (Euler Hermes, 2015b).

As many other developing countries, Indonesia is not considered as world's

leading parties in science and technology developments (Maulia, 2010).

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3.1.5. Legislative Forces

Government policies and legislations also directly impact the performance of

Campari Group, particularly because the company markets a wide number of

products and services.

South Korea:

Liquor tax in South Korea is charged on alcoholic beverages at a rate between

5% and 72% of the sum of the CIF value and duty. It can also be specific, i.e.

charged per kg (Duty Calculator, 2015).

Indonesia:

In 2011, duty was changed from a flat tax per shipment to a per litre tax. The

resultant sharp rise in prices on an already heavily taxed spirits sector, led to

a drop in the retail volume market in that year (Mintel - Trends, 2015).

The Indonesian government has announced a new 150% duty on imported

alcohol that will inflate prices for consumers (Mintel - Trends, 2015).

Ministry of Trade issued a regulation on alcohol issued in 2015 which

regulates the sale of alcohol, banning the sale of “class A” alcoholic beverages

– those with less than five percent alcohol content– in all mini markets and

small shops across the country. Larger retailers, as well as restaurants and

hotels are still allowed to freely sell alcoholic drinks (Wirdana, 2015).

3.1.6. Environmental Forces

As a result of the increasing pressure on companies to address environmental issues

and to adopt ways of operations which what would benefit society, Campari Group

needs to be aware of environmental forces in both countries.

South Korea:

The environmental regulatory regime of South Korea is made up of statutes,

enforcement decrees, ministerial decrees and regulations that concern the

general environment. A separate permit for different types of emissions is

generally required under environmental law (Practical Law, 2012).

Indonesia:

Vulnerability to natural disasters (earthquakes, volcanoes, tsunamis) (Euler

Hermes, 2015b).

Campari’s business activities in Indonesia would impact the environment

and therefore required an environmental license (Euler Hermes, 2015b).

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3.2. Porter’s 5 Forces Analysis

3.2.1. Rivalry Among Competitor

South Korea:

Whiskies and other spirits accounts for around 94% of the market (Euler

Hermes, 2015b).

Hite Jinro Co maintained its solid leading position with 46% volume share in

spirits in 2014. The company recorded positive growth in actual volume

sales due to new Soju containing lower alcohol (Euromonitor International,

2015a).

Market Player % 2011 2012 2013 2014

Hite-Jinro Group 46,6 47,6 44 46,5

Lotte Group 16 15 17,2 17

Muhak Co., Ltd. 11,9 12,9 15 13,9

Kumbokju Co., Ltd. 7,9 7,9 10 9,9

Bohae Brewery

Co., Ltd

5,9 6 4,1 4

Diageo plc 0,4 0,3 0,3 0,3

Pernod Ricard S.A. 0,3 0,2 0,2 0,2

Others 11 10 9,2 8,2

Generally, South Korea is a growing competitive market, with competition

taking place mostly between local alcoholic drinks (soju, the largest selling

spirit in the world, with average of 20% alcohol) and imported spirits.

Indonesia:

Around 80% of spirits in Indonesia is dominated by national specialties in

2014 thus this trend is declining. The overall decline of domestic economy

spirits, however, will be cushioned by the healthy growth of imported spirits

in the country. Shifting lifestyles, especially among the younger generations,

have benefited sales of spirits via the on-trade as they are associated with

socialising and relaxing after work or during weekends. Consequently,

ongoing urbanization will support growth of such establishments as primary

channels to sell alcoholic drinks of primarily imported products.

Individual spirits companies do not have a sales presence in Indonesia, only

licensed importers have (Mintel - Trends, 2015).

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Market Player % 2011 2012

PT Mitra Indomaju 23,5 23

PT Pantja Artha Niaga

(PAN)

17,1 17,4

PT Indowines 12,9 12,8

PT Jaddi International 11 10,7

PT Aska Indoco (DIMA

Group)

9 9,1

PT Muliatama Mitra

Sejahtera

8,6 8,8

PT Danisa Texindo 7,2 7,1

PT Sarinah 6,3 7,1

Others 4,4 4

However, imported spirits are facing competition from black market spirits,

which are imported illegally and without proper duty paid marks. Priced

much lower than legally imported spirits, these black market products are

thriving, resulting in direct competition to legal spirits imported into the

country. The percentage of these spirits is estimated to be the highest

compared to other types of alcoholic drinks as spirits are classified as “type

C” alcoholic drinks that are subject to the highest import and excise taxes

compared to other types (Euromonitor International, 2015b).

3.2.2. Potential Entry of New Competitor

South Korea:

The strong brand identification of the product Soju and its equally strong

economy of scale (that allows trade nationwide) and the increase of the tax in

imported liquors, create difficult conditions for the entry of new competitors.

However, conditions in the market and buyers’ requests are changing.

Wine is promoted as being healthy and is priced more affordably than

whisky and so became a trendy choice for young Koreans (Mintel - Trends,

2015). Here, there is potential for new entrants.

Consumers are likely to move away from the heavy drinking culture, but they

will enjoy more of the lighter drinking trend with more diverse types of

alcoholic drinks. The trend will lead imported volume sales of spirits, beer

and wine in the near future, leaving space for you entrants in this specific

segment (Euromonitor International, 2015a).

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Indonesia:

In 2011, duty was changed from a flat tax per shipment to a per litre tax. The

resultant sharp rise in prices on an already heavily taxed spirits sector, led to

a drop in the retail volume market in that year. This is a high barrier for new

entrants.

Also, the new 150% duty on imported liquors (Mintel - Trends, 2015) is a

definitely a high barrier as it requires the company importing in Indonesia a

high investment.

3.2.3. Potential Development of Substitute Products

South Korea:

The demand from the market for products that are healthier and containing

lower alcohol create the potential for the development of substitute

products.

Indonesia:

Black market spirits, which are imported illegally and without proper duty

paid marks, are priced much lower than legally imported spirits and

therefore these products are thriving (Euromonitor International, 2015b).

3.2.4. Bargaining Power of Suppliers

South Korea:

Labour market boasts a high level of education and employable skills amid

reasonably high unemployment. This means there is a large number of

educated, skilled labourers seeking work, representing significant

opportunity for employers (Lucintel, 2013).

As Campari could rely on the production plant in Australia, this force is

generally not of great concern for the company.

Indonesia:

Indonesia has high quality human resources due to its good level of

education (Lucintel, 2013).

As Campari could rely on the production plant in Australia, this force is

generally not of great concern for the company.

3.2.5. Bargaining Power of Buyers

South Korea:

The low price and leading position of Soju, means that average amounts paid

per litre are low in South Korea. Most Koreans drink either Soju or Whisky

and other spirits are limited in their sales.

However, there was decrease in consumption of Soju & Whisky in 2010,

which was replaced by other types of alcohol such as Wines and Makgeolli.

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Wine is promoted as being healthy and is priced more affordably than

whisky and so became a trendy choice for young Koreans (Mintel - Trends,

2015). Buyers have therefore a strong bargaining power.

Indonesia:

Domestic products are mostly attractive to low income demographics that

purchase liquors for the purpose of getting drunk. These consumers usually

buy these drinks from off-trade outlets at traditional markets and sometimes

through illegal sellers (Euromonitor International, 2015b). They have a high

bargaining power.

However, burgeoning middle class is arising together with the number of

international tourists that reach they country every year. This target is likely

to have increasing less bargaining power, due to the multiple difficulties

posed from the government to foreign companies that want to import

liquors.

4. Implications: risks and opportunities Based on the analysis of the external environment, it is advisable that Campari

Group prefers an expansion in South Korea and wait for further development

in the country’s policies and regulations for what concerns Indonesia.

Both South Korea and Indonesia present very competitive markets, however for

different reasons (respectively an almost monopoly of domestic companies and the

illegal market).

However, South Korea is a high potential market with a large base of habitual

consumers while the current political and legislative situation in Indonesia is

further limiting an already contained customer base. If Campari succeeded in firstly

entering the market with the acquisition of part of one of the successful companies

in South Korea, it is likely the transition will be smooth. Entering the market in

Indonesia is likely to be more complicated and growth might not be steady, also due

to the fact that individual spirits companies do not have a sales presence in

Indonesia. The only way to break into the market would be to put a licensed

importer in charge of trading Campari’s product, which is not in line with the Group

growth strategy.

Therefore, for the sake of this report, expansion in the Indonesian market will not be

considered.

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5. Recommendations: strategies and tactics Results from the environmental analyses will inform marketing objectives. The

approach used in this specific case to assess the objectives is the SMART approach

that stands for Specific, Measurable, Achievable, Realistic and Time-based (Doran,

1981).

Also, with reference to the organic growth strategy of the Group, the SMART

objectives for the entry into the South Korean market are:

Buy into a local brand - Hite-Jinro Group - with strong equity to build new

distribution platform.

Within 12 months from acquisition:

Increase the company’s net sales of 2.0% with a consolidated net sale of the

RoW and Global Retail Travel region of 12.3% (FY 2014 10.3%, FY 2013

10.2%).

o Drive faster growth of Top 5 Spirits Brands and incubate High

Potential Brands.

o Generate steady growth of Key Local Brand.

In order to determine the best strategy and tactic to enter the South Korean model,

two models will be used:

1. STP model or Segmentation, Targeting and Positioning model is a useful

approach to identify the most valuable market segments, and then sell to

these successfully with carefully targeted products and marketing (Lancaster

& Massingham, 1988) (Smith, 1956).

2. Marketing mix or the 4Ps of marketing (Product, Price, Place, Promotion)

articulates the different kinds of choices the Group has to make in order to

bring a product or service to market. (McCarthy, 1964)

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5.1. STP (Segmentation, Targeting, Positioning) model

5.1.1. Segmentation Main segments in the South Korean spirits retail market are presented in the table

below.

Segment 2009 2010 2011 2012 2013 2014

Total 567500 547100 564300 577500 511600 563200

Other Spirits 559900 540200 557400 570600 505100 556500

Whiskies 5400 5200 5000 4400 4100 4300

Liqueurs 1600 1100 1200 1600 1400 1400

Vodka Based 200 200 200 400 500 500

Rum/Sugar Cane Based

100 100 100 200 200 200

Gin Based 0 0 100 100 100 100

Brandies & Brandy Type

200 200 200 100 100 100

Tequila 100 100 100 100 100 100

Anis/absinthe 0 0 0 0 0 0

A slow-down in the economy has contributed to an increase in the home partying

culture, and has helped other segments such as vodka, gin and other liqueurs grow

steeply. “Other spirits” comprises sales of mainly Soju. Its sales fell in 2013 as

consumers switched to beer and wine because they are considered healthier and it

is cheaper.

The main segment, “other spirits”, is pretty comprehensive of different age groups

and social classes, while the rising segment of beer and wine is mostly represented

by young educated and well-travelled South Koreans.

5.1.2. Targeting At first, it would be easier to break into the South Korean market targeting the

growing niche of young (20-35 yrs) educated and well-travelled South Koreans.

The young generation had experiences abroad and is likely to be already familiar

with some of the Campari Group’s most distinguished low-in-alcohol products,

spirits-based cocktails and wine. Only in a second phase, if necessary, Campari

Group could consider targeting the “Other spirits” consumers, but only when the

brand would be more established nationwide.

5.1.3. Positioning A slowdown in the economy has contributed to an increase in the home partying

culture and has helped segments such as vodka, gin and other liqueurs grow steeply.

Young generations in South Korea are much more concerned about health than

previous generations, they are therefore much more interested in “lighter drinks”

that are of good quality, made possibly with natural ingredients and cheaper than

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other spirits on the market. Lastly, being well travelled and more sophisticated,

young generations are much more interested in products that reflect this

characteristics, such imported foreign brands.

Campari Group should position its brand as representing high quality products, at

the same time sophisticated and fun while affordable and healthier than other

products, perfect for a party at home, for light bite in a bar or an informal dining

occasion.

5.2. Marketing Mix or the 4Ps of marketing (Product, Price, Place, Promotion Strategies)

5.2.1. Product As the target is much more concerned than other groups with health, status and

price, Campari Group is advised to enter the market with its more famous low-in-

alcohol products and wines.

Top Brands like Aperol and SKYY Vodka, Campari’s collection of Sparkling and Still

Wine (High Potential Brand) and the SKYY Vodka-based ready to drink products

(Key Local Brand) satisfy the customers’ needs for an informal drink, made with

natural products, affordable but foreign (gives status).

It is recommended Campari Group sub-divided its target by product:

Aperol and wine collection – across genders

SKYY Vodka – male

SKYY Vodka-based ready to drink - female

5.2.2. Place If Campari Group was to buy into the local brand Hite-Jinro Group, it would then

have a strong base to build new distribution platform fairly easily. When promoting

the new drinks, Campari should focus its efforts – particularly for Aperol and the

wine collection - on bars, wine bars and other places where dining is cheaper and

faster than in formal restaurants. For SKYY Vodka and SKYY Vodka related products

it is recommended the distribution in supermarkets nationwide, which is where the

target gets drinks for house parties.

5.2.3. Price In this specific historical moment, the target niche is price sensitive – therefore, the

price of the products should be commensurate to the price range of the places

where products are sold. It is however recommended the price stays mid-range as

very low pricing of the products might be perceived as low in quality too.

5.2.4. Promotion Quality on its own is usually not enough to win sales. Successful companies fascinate

customers with new ways to enjoy their products. Experiences that involve

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enjoyable social interaction are a viable way to trigger word-of-mouth promotion,

and widespread adoption.

Basically all alcohol manufacturers in South Korea use typical “Hot-female-celebrity”

marketing tactic, therefore Campari group should consider using well thought-out,

unique content– a guerrilla marketing tactic – to capture Korean youth’s attention.

In the specific:

• Aperol and wine collection Target: young South Koreans

Promotion: promote the idea of aperitivo, typical Italian informal get-together with

drinks and light snacks before or instead of dinner. In order to do so, promote the

drinks in trendy bar and wine bars in the business center of the main cities (Seoul,

Busan, Incheon, Daegu) and in proximity to universities during the happy hour.

With more than 39.4 million internet users in South Korea, internet penetration is

81%.

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Figure 1 Data from MVF, 2014

Using local social media platforms suck KakaoTalk can be especially beneficial to the

Group. KakaoTalk Plus Friend and KakaoTalk Story are two features that allow

brands to connect with consumers using updates, events, promotions and photo

sharing. Few foreign brands take advantage of the app, and this would be a great

competitive advantage of the Group.

• SKYY Vodka Target: young male South Koreans Promotion: SKYY is synonymous with quality, sophistication, and style. Promote

the drink with flash mob of flair bartending. Encourage the house party culture with

sponsored bartending courses and kit to be sold in supermarkets.

Support the spread of the flash mob video through a social media campaign in

association with a contest “Your SKYY experience” where customers are encouraged

to share pictures of their home-made drinks on KakaoTalk. The 5 best drinks win a

night in an exclusive night club in Seoul for themselves and 2 friends with SKYY

open bar.

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• SKYY Vodka-based ready to drink

Target: young female South Koreans

Promotion: SKYY is synonymous with quality, sophistication, and style. Promote

the drink through partnerships with South Koreans beauty vlogger and youtube

stars such LAMUQE’s Magic Up and Soutk Korean make-up products such Tony Moly

(http://eng.etonymoly.com/html/brand_intro.php#brandIntroOverview). Vlogger

are encouraged to develope a specific make up to match the different flavor of SKYY

infusion with Tony Moly products. Their followers are then encourage to post a

similar video with their own version of the “SKYY flavored” make-up in order to

take part to a contest. The 3 best make-up ideas win a 1-day workshop with Tony

Moly make-up artists in Seoul.

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