International Business 303

1. Group C Carina Loughner Carla Smith Joe Ranner Jason Chester Benjamin Bray International Business 303 International Strategic Plan

2. Guinness Sakura Strategic Plan

3. SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats) Strengths: • Basis for strong management team • Key major customer acquired in Japan • Products can evolve into range of offerings • Good relations with vendors • Very focused management and staff • Well-rounded and managed business

4. SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats) Threats: • Major competitor may enter targeted market segments • New technology may make products obsolescent • Economic slowdown could reduce demand • Market may become price sensitive • Market segment's growth could attract major competition • Over dependent on a few vendors • Commodity markets could increase cost

5. SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats) Weaknesses: • Over dependent on borrowings - Insufficient cash resources • Lack of awareness amongst prospective customers • Emerging new technologies may move market in new directions • Insufficient distribution channels in certain markets • Poor crop year for barley

6. SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats) Opportunities: • Market segment is poised for rapid growth • Export markets offer great potential • Distribution channels seeking new products • Changes in eastern consumer preferences to be similar to western preferences • Sell products in countries around the globe

7. Have annualized sales of $345 million and be profitable Employ 5,000 people mainly engaged in production, sales, marketing, logistics, and administration Offer 10 core products Provide value added services to a large customer base throughout 20 markets in around 15 countries Offer high quality products Expand through organic growth and acquisitions in related beverage and technology market segments Vision

8. Corporate Values • 1. We are passionate about consumers – our curiosity and consumer insights drive our growth. • 2. We value each other – we seek and benefit from diverse people and perspectives. • 3. We give ourselves the freedom to succeed – we trust each other, we are open and seek challenge, and we respond quickly to the opportunities this creates. • 4. We are proud of what we do and how we do it – we behave responsibly with the highest standards of integrity. • 5. We strive to be the best – we are always learning, always improving.

9. Business Objectives • To expand the business aggressively and offer above-average returns to shareholders. • To become a leading premium drinks business within the beverage market.

10. Key Strategies • We will invest more to take leadership positions in every category, market and consumer occasion in which we chose to compete. • We will focus on brand growth • We will invest more resources behind brands with the best growth prospects. • We will set more ambitious goals for innovation. • As part of our innovation agenda we will be putting an increased emphasis on premiumisation • We will invest more in longer-term market opportunities – Japan, Russia, India and China are current examples, there will be others.

11. Major Goals • Achieve sales of $800 million by 2010 • Report annualized profits of $450 million in 2008 • Secure 10% of the Japanese market segment by 2010 • Become largest supplier of premium beverages in 6 countries within 8 years • Employ 500 people for operations in Japan including 30% technically qualified by 2010 • Have new manufacturing plants in 2 key markets before 2012

12. Guinness Sakura Promotional Strategies

13. Advertising Guinness Sakura • Sakura is the Japanese name for ornamental Cherry trees • Sakura festival • Sakura tree will be part of our advertising • Slogan “The flavor of business, the energy of youth”

14. Advertising • Television advertising • Watching television is very popular in Japan • Dramas, news, and sport programs are the most popular program types • Focus on sport programs • Billboards • Magazines • Display stands

15. Advertising • Cell phone advertisements • Much of the Japanese population own keitai denwa, or cell phones • Wallpaper-like ads that pop up when an internet function is used • Incur costs because of the technology and possible criticism • Share liability and costs with non-competing companies

16. Distribution and Pricing • Sell the lager directly to wholesalers which will then distribute the product to vendors • Found in vending machines, convenient stores, and bars • Contained in glass or plastic bottles • Sell in six packs, twelve packs, and twenty-four packs • Initial price per bottle will be 218 yen • Six packs for 740 yen • Twelve packs for 1420 yen • Twenty-four packs for 2034 yen • May adjust prices as seen fit

17. Guinness Sakura Questions?