1. Rumchata in Colombia
BY: ANDREA NEJAD (Promotional Activity and Communication
Objectives), JACKIE DELUCA, FERNANDO GARCIA, AMANDA GHATTAS,
MATHIEU JAEGLI, AND PAOLA SIERRA
2. Introduction
COUNTRY JUSTIFICATION (COLOMBIA)
• 40.9 million people are of legal drinking
age
• Tourism is becoming more popular
• 4.3% economic growth, rising middle
class
PRODUCT JUSTIFICATION (RUMCHATA)
• Spirit market is expected to grow 13% within
the next 5 years
• White Spirits (rum) has increased by 24%
since 2013
• Rum is the #2 preferred drink for
Colombians
3. Foreign Entry Method
• Rumchata will be exported from the U.
S. to Colombia
• U.S. and Colombia have a free trade
agreement
• Trade Promotion Agreement (TPA)
• Main suppliers (market share):
• United States (28 %)
http://www.statista.com/statistics/369047/most-important-import-partners-of-colombia/
Importation in Colombia in 2014
4. Targeting
GOAL:
Diffuse the
Colombian luxury
cocktail market
with an
international brand
by introducing a
new, “cool” drink
Ages:
24-40
Middle to
upper
class
Bogota
Medellin
Cali
Cartagena
Barranquilla
VALS:
Experiencers
5. Adaptation and Branding
• Availabilities:
◦ Aguardiente
◦ Coconut rum
•Sales representatives
Colombians first engage in friendship before
business.
•Design
6. Problems and Resistance to Product
Acceptance
• Fierce competition for importation of premium drinks
• Horchata is not known in Colombia
• Small number of potential customers
• Traditional drink preferences
8. Pricing Strategy
•Competitors’ Pricing in Colombia:
•Bailey’s ($42)
•Ron Antioqueno from Medellin ($36)
•Ron de Caldas from Manizales ($38)
•Aguardiente ($34)
Recommended price for bar:
$45-55 for a 0.75 ml bottle
12. Distribution Strategy (Short-Term)
Start by out-of-home market
Distribute product to bars/restaurants/hotels
• Touch our targets in the heart of our consumption
place
Major brands like Ricard, Havana, Spritz started this way
13. Distribution Strategy (Long-Term)
• Supermarkets
• 60% of the distribution in the country
• Two large companies:
• Casino: Carulla & Exito
• Jumbo
• Tiendas
• Typical shop in Colombia
14. Promotional Activity
Short-Term
Promotion Objective
Provide a unique personal experience that will allow potential
customers to always think fondly of Rum Chata when making
future purchase decisions
Promotional Strategy
-Push
-Direct Sales - Same representative visits Bars and Restaurants
-Point-of-purchase - Displayed at bars and restaurants.
-Experiential Marketing - “Alive Lounge”
City Population Festival
Medellin 1,999,979 Feria De Las Flores
Bogota 7,674,366 Alimentarte Bogotá
Gourmet Food Festival
Cali 2,392,877 Feria
Barranquilla 1,380,425 Carnaval De Barranquilla
Cartagena 805,801 Miss Colombia and
Independence Day
15. Promotional Activity Long-Term
Promotional Strategy
Push and Pull
Recognize and reward distributors
Above-the-Line
Billboards
Online
Magazines
TV advertisements
Control Mechanism
“Friendship”
Positive and Responsive PR
16. Communication Objectives & Key
Message
•Communication Objective: To successfully penetrate the Colombian cream liquor market by
generating awareness and brand building preference by 30%
How? High levels of experiential exposure, position the brand as a high-quality product and
encourage retailers to stock the product
•Key Message : RumChata is a high-value imported liquor that provides consumers with a
thrilling experience and creates an “alive” lifestyle.
•How? Aim at showcasing brand’s identity and providing the target group with brand
experiences so to achieve competitive advantage to other brands by differentiation.
17. Conclusion
• Introduce Rumchata as a premium, “fun & cool” drink
• Introduce and expand Colombian’s interest to the foreign liquor market
• Goal:
• Adapt to the culture
• Expand Colombian’s premium liquor market
• Overall, grow as a company
