JOHNNIE

WALKER

RED LABEL
LEONARDO BEMBO
BEGÜM KONOR
SELIM TEPELER
MERTCAN SEZER
UMUT CAN AYDIN
ISSUES
✓ Difficult for customers to make comparisons
✓ Regulations and legislations against advertising and promotions
✓ High competitive rivalry
TARGET MARKET
● B2B customers are bars, hotels, clubs, restaurants and retailers that
sell JW Red to the end users.

● Willing to pay less for whiskey

● Mostly consists of young professionals and university students

● People who are trying whiskey for the first time.

WHAT IS OUR CUSTOMER’S VALUE PROPOSITION?
Why Alcohol?
● Entertainment(Cheerful and Delighted)
● Social Lubricant(Self-Confidence)
● Relaxant

Why JW over others?

● Global brand that is trusted and reliable
● Whiskey being perceived as a premium drink in Turkey
● Decent quality whiskey with the lowest price
● High brand awareness compared to other whiskey brands
● Country of origin effect (Scottish)
MARKETPLACE ANALYSIS
GENERAL ECONOMIC CONDITIONS

• Population: 78.7 million

• GDP per capita: $11,524.51

• Unemployment rate: %10.1

• Money spend on alcohol per year : 18 billion TL

 MARKETPLACE ANALYSIS
DEMOGRAPHICS

● Female & Male : 49% - 51%

● High alcohol consumption :

Edirne, Muğla, Tekirdağ, Tunceli,
Antalya, Aydın and İzmir

● Lowest alcohol consumption :

Bayburt, Bitlis, Ağrı, Batman, Bitlis,
Şırnak, Van, Hakkari, Şanlıurfa and
Muş
 MARKETPLACE ANALYSIS
SOCIETAL VALUES & LIFESTYLES

• Alcohol is religiously prohibited

• However, this makes it tempting
(The Paradox of Temptation)
• Drinking to keep up with the trend
• Young people go out more and
socialize
• Increasing health concerns
 MARKETPLACE ANALYSIS
REGULATIONS & LEGISLATIONS

• Promoting alcohol is forbidden by law.

• Scenes and photos that encourage alcohol on all media is forbidden by law.
• Alcohol cannot be purchased from retailers between 10:00 pm and 6:00 am.
 MARKETPLACE ANALYSIS
TECHNOLOGY & INFRASTRUCTURE
• Advancing technology results in better logistics
• The popularity of internet shopping is increasing
• Social media usage is very popular which enables the word of mouth
advertising
• Increasing credit card usage
DRIVING FORCES
● Increasing stress levels

● Globalization of cultures

● Changing life styles

● Increasing usage of social media

● Credit card usage

● Availability of online shopping websites→ opportunities to compare

products in online platforms

● Increase in the disposable incomes of young population

● Increasing number of retail stores.

KEY SUCCESS FACTORS
Mental short-cuts: in the decision making

● Country of origin effect :Having “Scottish or Irish Label”

● High-value

● Familiar brand names

● People value price/performance ratio

First time triers target group: the taste of the whiskey

B2B long term contracts: long term stability.
PORTER’S 5
FORCES
PRODUCT LIFE CYCLE
COMPETITOR ANALYSIS
STRENGHTS & WEAKNESSES
Chivas Regal
Strenghts:
● Better taste and quality

● Higher brand equity

● More recognizable bottle design

Weaknesses:
● Higher price
VAT 69

J&B
STRATEGIC MAP

BALLANTINE’S

JW RED LABEL
COMPETITOR ANALYSIS

JIM BEAM

FAMOUS GROUSE

JACK DANIEL’S

CHIVAS REGAL

THE MACALLAN
FINANCIAL ANALYSIS
INCOME STATEMENT
DIAGEO PERNOD SA
(GBP in Millions) (EUR in Millions)
06/30/2014 06/30/2015 06/30/2016 04/30/2014 04/30/2015 04/30/2016

Revenues 10,250 10,813 10,485 7,945 8,558 8,682

DIAGEO

% of - 5.49% -3,04% 7.71% 1,45%

growth

Net profit 2,248 2,381 2,244 1,016 861 1,235

Net profit 21.93% 22.02% 21.40% 12.79% 10.06% 14.22%

margin (%)
FINANCIAL ANALYSIS
RATIOS
PROFITABILITY
AND VALUE DIAGEO PERNOD SA INDUSTRY

ROA 8,50% 4,12% 9,20%

ROE 29,15% 9,57% 21,18%

EPS 0,90 4,68

Payout Ratio 0,64 0,40

P/E 23,31 21,39 25,93

LIQUIDITY
DIAGEO PERNOD SA INDUSTRY
Quick Ratio 0,69 0,40
FINANCIAL ANALYSIS
RATIOS
EFFICIENCY
DIAGEO PERNOD SA INDUSTRY
Inventory 0,86 0,58 5,69
Turnover

Total Assets 0,39 0,28 0,81

Turnover

LEVERAGE
DIAGEO PERNOD SA INDUSTRY
Total Debt to 121,58% 70,20% 871%
Equity Ratio

Interest Coverage 6,32 4,89

Ratio

Cash Flow 1,33 0,05

Coverage
SWOT
STRENGTHS FROM WHERE IN THE ANALYSIS
Reliable and trustable brand Value Proposition
Country of origin (Scottish) Key Success Factors
High price/performance ratio Key Success Factors
High brand awareness Value Proposition
Nostalgic attachment Value Proposition
High penetration Porter’s 5 Forces
Relationships with channel members Key Success Factors
SWOT
WEAKNESSES FROM WHERE IN THE ANALYSIS
Taste and flavor Competitor Analysis
Low recognition of bottle design Competitor Analysis
Low price damaging brand image Competitor Analysis
SWOT
OPPORTUNITIES
Increasing consumption of alcohol in
social events
Increasing taxation for other alcoholic
beverages
Increasing buying power of young
population
Increasing use of social media
Increasing GDP per capita
Increasing number of retailers, easy
access to end users
Decreasing consumption of local brands
Increasing usage of credit cards
FROM WHERE IN THE ANALYSIS
Driving Forces
Product Life Cycle
Population Demographics
Technology / Infrastructure
General Economic Conditions
Driving Forces
Product Life Cycle
Technology / Infrastructure
SWOT
THREATS
Advertisement regulations
Regulation against sales after 10 pm
High taxation
Increase in exchange rate
Increasing health concerns
Increasing competition
FROM WHERE IN THE ANALYSIS
Legislations / Regulations
Legislations / Regulations
Product Life Cycle
General Economic Conditions
Societal Values and Lifestyles
Porter’s 5 Forces
 LOW COST GENERIC STRATEGY
High price/performance ratio and high penetration in market

Opportunities:

• Rising taxation for other alcoholic beverages

• Increasing usage of credit cards,

• Rising buying power of young generation

Cost leadership strategy: Damages our brand image

MUST! Increasing exchange rates charge additional costs for imported

products.

Long-term sustainable competitive advantage: our competitors will suffer

more due to costs currency
IMPLEMENTATION: INCREASING DISTRIBUTION INTENSITY
Who?
● Small groceries and supermarkets in cities in which alcohol
consumption is higher than other cities
How?
● Increasing the availability of 35cl, 50cl and 100cl SKUs of JW Red in
shelves
Why?
● Serve more customers that have different needs.
● Increase market coverage
IMPLEMENTATION:
INCREASING DISTRIBUTION INTENSITY
What do we need?
● Additional allocated space
● More inventory costs and transportation costs
● New contracts with existing retailers for different SKUs
Strengths/Oppurtunities?
● Increasing buying power of young population
● Incrasing number of retailers
● Good relationships with channel members
Threats/Weaknesses?
Recognition of bottle design is lower than our competitor: Chivas
Legislations: One way to compete in this market is by efficient distribution
channel.
IMPLEMENTATION: STEALTH MARKETING - EKŞİSÖZLÜK
Who?
● Customers who use online platforms to compare products
How?
● Having more positive reviews at Ekşisözlük about JW Red
● JW employees would write the reviews, a translator would post
the reviews to Ekşisözlük in Turkish
Why?
● Advertising regulations
● Customers rely on WOM to make purchase decisions
● Ekşisözlük is always at the top three results
IMPLEMENTATION: STEALTH MARKETING - EKŞİSÖZLÜK
What do we need?
● To hire a part-time Turkish-English translator
Strengths/Oppurtunities?
● Brand awareness
● High price/performance ratio
● Increasing use of online platforms to compare products
Threats/Weaknesses?
● Advertising regulations
● High competitive rivalry
● High threat of substition
 IMPLEMENTATION: OPINION LEADERS
Who?
● Customers who follow blogs and
social media celebrities
How?
● Having Keyif Adamı and Beyaz
Yakalı Gurme to write positive
reviews about JW Red
Why?
● Customers are influenced by
opinion leaders
● Advertising regulations
IMPLEMENTATION: OPINION LEADERS
What do we need?
● Contacting with opinion leaders
● Making payments according to the performance of the posts
Strengths/Oppurtunities?
● High price/performance ratio
● Countr of origin and reliability
● Increasing use of social media
Threats/Weaknesses?
● Low price damaging our brand image
● Advertising regulations
● High competitive rivalry
CHEERS! THANKS FOR LISTENING!