Marketing strategy to promote Vodka Parliament to Turkey and Spain

1. SenSitivegroup
Sandra Betancourt S11005904
Tahmeena Bukhari S11005969
Dipendra Pal S11005806
Nileshkumar Christian S11006054
Muhammad Rajib Rahman S11005817
Vyacheslav Alexandrov S11005932
Parliament Vodka is an alcoholic drink that is produce
by
CEDC (Central European Distribution Corporation)
using spring water and is purified with clean milk
which ensures the highest purity and unique taste.

2. INTRODUCTION
 CEDC (Central European Distribution Corporation) is one of the
world’s largest vodka producer from Russia with leading position in
Russia, Poland and in Hungary.
 CEDC’s mission is to deliver highest quality product with consumers’
recognition to achieve leading position in Vodka market.
 CEDC decided to extend its market through entering in Spain and Turkey
to maximize its profit and to extend the life of its products.
 Spain show a great market opportunity as it has a record number of 8.3
million tourist coming for their holidays.
 Turkey show the future market for vodka business as the economy of
Turkey is growing by 4.3% with biggest middle income partner.

3. Pestle analysis Spain
 Excise duty is 550 euro per hectolitre per degree of alcohol
in the finished product.
 The Spanish Ministry of Health is the entity responsible for
the preventive alcohol policies in Spain.
 TV alcohol commercials above 20 degrees of volume is
forbidden. Labelling must show the alcohol strength
volume.
According to Baines et al., (2011), PESTLE is one of the easiest frameworks to examine the
external environment. PESTLE includes the Political, Economic, Socio-cultural,
Technological, Legal and Ecological environment.

4.  Marketing communications, distribution and marketing
research.
 CEDC must focus on the health of their customers.
The trade volume reaches 11 billion euro. Spain GDP of 1.349 trillion
which expanded 0.60 percent in the second quarter of 2014.
Alcoholic drinks in Spain can be more affordable by 50% of the price.
Alcohol is traditionally an accepted and morally neutral element of
everyday life in Spain and is well under control.
The consumption of alcohol is integrated into a common behaviour,
such as eating or sleeping.

5. PESTLE ANALYSIS TURKEY 1
 The duty rates apply in turkey to import products is 6.2% and the
standard rates of VAT is 18%.
 Tourism ministry also signed a joint action plan contract with
Russian to run join projects for two years.
 New law has been imposed by the government to restrict late night
sale of alcohol.
 GDP of 820.2 billion, GDP annual growth rate is 4.3% and inflation
rate in turkey is 7.5%.

6.  Turkey is a cultural sensitive product because it is a Muslim
country.
 Due to some cultural impacts government ban to sale
alcohol within 100 meters of schools and mosques.
 Turkish law does not allow promoting alcohol through
advertisements of television or any other means like
billboards.
 Protect environment will be one of the important concern
while importing alcohol in turkey including safe drinking
alcohol considering packaging, sizing and material usage.
PESTLE ANALYSIS TURKEY 2

7. Rivalry among existing firms
Turkey
• Raki vodka is a domestic competitor.
• Other competitors: Bong vodka, Zernoff vodka, Absolute vodka, Ciroc vodka, Tekel, Mey-Icki, Binboa
Satsuma.
Spain
• Verlof vodka and Yurinka vodka are domestic.
• Other competitors: Platinum vodka and caviar, Avatar-blue, vodka prince Igor, Virtuous vodka, vodka
Caramel, original-Absolut.
Threat of new entrants and entry barriers
Turkey
• Alcohol companies which does not exist yet in the market like vodka, caramel.
• Government regulation on alcohol is one of the barrier entries.
Spain
• Government regulation on alcohol can be barriers to entry like licencing and taxes.
• Binboa Satsuma Company can be considered as a new entrant for Spain.
• Alcohol companies which does not exist yet in the market.
PORTER’S FIVE FORCES
gives better understanding of the buyers, suppliers and competitors, which is the main aspect of any business to
consider before entering new market (Hooley, et. al., 2008 and Hollensen 2011).

8. Bargaining power of suppliers
If the bargaining power of suppliers is higher, then it can influence on the manufacturing industry (Hollensen,
2011).
Turkey and Spain
 The bargaining power of suppliers will be low.
Bargaining power of buyers
If the bargaining power of buyers is higher, then they have power to counter sellers attempts to increase prices
(Johansson, 2003).
Turkey
 The bargaining power of the buyers will be relatively low.
Spain
 The bargaining power of the buyers will be relatively high.
Threat of substitutes
Turkey
 Threat of substitutes in the vodka industry is very high.
 Threats of substitute could be beer, whisky, wine, brandy, rum
and cocktails.
Spain
 Whisky, brandy, beer, cocktails, wine and rum can be
considered as a threat of substitute in Spain
 Cocktails can be main threat of substitute in Spain market.

9. HELPFUL HARMFUL
INTERNAL
STRENGTHS
 Quality product that offers unique taste
 Brand name as it is famous in Russia
 Experienced distributor channel
WEAKNESSES
 Mainly appear to young generations
 High price which might impact on buying
decision for low income customers
 Limited access to other corporate owned
bars and clubs
EXTERNAL
OPPORTUNITIES
 Great opportunity for the brand to
growth due to the increase of alcohol
consumption
 Decrease in excise taxes
THREATS
 Strong government (advertisement)
regulations
 Additional cost with overseas distribution
 Competition can be a concern
S W O T

10. SPAIN
 CEDC can use third party like Pernod Richmond to distribute their product.
 Spain premium vodka Verlof and Yurinka have higher cost so CEDC can charge cheaper price
to get the market.
 Attractive packaging for the new market
TURKEY
 CEDC should use e-commerce for the distribution of their product.
 Price need to be more or less same as Russian market.
 Packaging need to put harm sign by law.
MARKET DEVELOPMENT
A market development strategy involves selling existing product into new market possible ways of approaching this
strategy, includes geographic market, new distribution channel, different pricing police, packaging (Lee & Carter, 2009).

11. Spain
 Age group between 18-48, because it is most active and dynamic group
 Sea side consumer like Ibiza beach, because it attract young people
Turkey
 Tourists because Turkey is popular touristic destination
 City like Istanbul, because it attract many tourists
TARGETING “there are three general strategies for selecting target market” (Baines et al., 2011).
Spain & Turkey
 Both country should consider multi-segment target approach.
POSITIONING “Positioning can be defined as how a product or a company’s offer
appears in the mind of the target customer with respect to other brands” (Hollensen, 2011).
Spain & Turkey
 Need to be cheaper than other premium vodka
 No compromise about the quality
 Service and distribution should in premium label
 Attractive packaging
SEGMENTATION
“means categorizing consumers into similar sets, where each group consists of consumers who are similar to each other
in some way”(Kotler et al., 2011).

12. Join Venture in Spain
 CEDC will do Joint venture with
Pernod Ricard.
 CEDC will use the expertise of the
partner to get the market share.
 Pernod Ricard is working closely
local public authority who is
responsible of legal action.
 This will protect parliament vodka
from any legal changes.
 Using Pernod Ricard marketing
expertise, Parliament vodka will
target its potential customers.
MARKET ENTRY STRATEGY
“The choice of global market entry depends on several conflicting forces which makes
the entry mode decision complex but any choice of entry mode should be based on
expected profit contribution” (Hollensen, 2011).
Indirect Export in Turkey
 CEDC will do indirect export in Turkey
because of marketing environment.
 CEDC will export to independent exporter to
minimize the risk.
 The amount of the risk is low.
 However, CEDC will have lack of control in
marketing strategies.

13. TURKEY
 Positioned as luxury with Gold Flakes in it
 Soft shape design with gold plated label
 Access code for VIP features on APP and
Website
 Target tourists and high income people
 Included translation and recipes
SPAIN
 Positioned as a drink to begin adventure
 Soft elegant shape for comfortable
handing in a hand
 Access code to get discount entry in
Night Clubs and Festivals
 Target tourists and active young people
 Included translation and recipes
To satisfy customer and business needs and deliver the right product in the right place, at the price place and at right
time will be used Marketing Mix (CIM, 2014).
MARKETING MIX
Product

14. - Average price is 18 pounds
- Many wealthy tourists
- High tax on alcohol
- Alcohol is a part of dinner etiquette
- Parliament is 29 pounds for 700ml
- Average price is 8 pounds
- Very low tax on alcohol
- Many young drinking people
- Alcohol often drunk outside
- Parliament set at 8 pounds for 700ml
Turkey Spain

15. PROMOTION
- Seller can collect point to redeem goods
- Email and phone marketing
- In-house promotion in hotels and restaurants and
Online
- Free bottle and promotions to sellers
- Tour guide App for tourists
- Codes for buyers to win trip or get premium app and
website futures
- Online, bars, clubs, restaurants, hotels, festivals, Open
Ait, seaside
- Seller can collect point to redeem goods
- Email and phone marketing
- Free bottle and promotions to sellers
- Tour guide App for tourists
- Bundle with non-alcoholic spirit to mix, free fridge bag
or condoms.
- Codes to get discount entry to clubs and festivals
- Sponsoring big adventurous
events for young generation
- Van to give full experience
to make personal cocktail
TURKEY SPAIN

16. PLACE
- Expensive shops, supermarkets,
Hotels, Restaurants
- Space on shelf will be decorated
in gold and black to highlight
exclusivity
- Website will also be reflection
of luxury lifestyle with access to
related news
- Local shops, supermarkets,
Nightclubs, restaurants, hostels
- Street van on the open air party
decorated to give full experience
of designing personal drink
TURKEY SPAIN
- Website will reflect young lifestyle,
provide opportunity to design drink
and purchase all component for it.
- Places will be
decorated to
make
experience of
buying vodka
more
interactive and
enjoyable

18. REFERENCES
Baines, P, Fill, C & Page, K. (2011), Marketing (2nd Edition). New York: US, Oxford University
Press.
Hollensen, S. (2011), Global Marketing A Decision-Oriented Approach (5th Edition). Harlow,
England: Pearson Education Limited.
Hooley, G., Piercy, N. and Nicoulaud, B. (2008), Marketing Strategy and Competitive Positioning
(4th Edition). Harlow, England: Pearson Education Limited.
Johansson, J. K. (2003), Global Marketing: foreign entry, local marketing &global management (3rd
Edition). New York, USA: McGraw-Hill Higher Education.
Kotler, P. and Keller, K.L.(2011). A framework for marketing management. (5th Edition). Harlow:
Pearson Education Ltd.
Lee, K & Carter, S. (2009). Global Marketing Management (2nd Edition). New York: US, Oxford
University Press.
Marketing and the 7Ps. (2014). 1st ed. [ebook] London: CIM. Available at:
http://www.cim.co.uk/files/7ps.pdf [Accessed 15 Aug. 2014].