In France, the famous luxury group LVMH (Louis Vuitton Moet&Hennessy) understood this problem early on in the process. In fact, since the early 90's, the group had begun its internationalization process since the early 90's: it is now a real pioneer in China thanks to its ability to identify the purchase behavior of the local customers. LVMH owns over 60 brands; from the fashion and luxury industry to the wine and spirits sectors, the company offer diversified range of products.
In the past few years, Bernard Arnault, LVMH CEO, has been trying to develop its wine and spirits sector in the Chinese market. Thanks to its amazing international recognition and the rise in Chinese demand for Western products, LVMH has found itself a new opportunity.
The champagne industry is proving to be very profitable. In 2008, over 320 million bottles had been sold, representing more than 4 billion in worldwide sales . However, ten main groups have been controlling 84% of the market for many years. It is in this competitive market that Veuve Clicquot Ponsardin, the famous LVMH brand, is trying to develop its offer on the international market, as an important player in this industry.
Considering these facts and this major opportunity, we are planning to export Veuve Clicquot Champagne to China, because we think that its international recognition and its prestigious brand image are key values in entering a new market.
How can Veuve Clicquot enter the market? Which strategies should the brand develop to become a reference in China?
In order to answer these questions, we will first analyze the marketing audit of the brand Secondly, we will develop the marketing plan, by explaining our ideas on how to become a leader in the Chinese industry.
[...] Now that we have analyzed the internal situation of the brand, we can sum up by developing an internal SWOT analysis The internal SWOT analysis Strengths Weaknesses Veuve Clicquot: a world - An old brand image for some reference customers A brand of the LVMH group, the - The up-market positioning is not world leader on the Champagne justified for some of the market champagnes A good financial position - The main goal of the group is to The French origin give to the favour the most generative brand a qualitative image products of margins A traditional experience: 40 years High prices which are accepted by customers A worldwide recognition A very good brand image A strategic promotion strategy strategic geographical position Innovative packaging Wide products range The External Analysis Veuve Clicquot is functioning in a very competitive market. [...]
[...] The Marketing Audit of Veuve Clicquot In order to propose a marketing plan to enter the Chinese market efficiently, we will present an internal and external analysis of the brand The Internal Analysis In order to understand the main internal strategies of the brand, let's begin with a brief description of the markets where Veuve Clicquot operates The markets Created in France, a country internationally reputed for its wine experience, the brand has developed its offer on the global scale to cement a strong position for itself in the market. [...]
[...] Veuve Clicquot is a challenger on its market because of the presence of these major players. The direct competitors are those who label their product Champagne. It indicates that the product is French, as in order to be labelled as Champagne, it has to be cultivated in France. Our main competitors are part of luxury groups. Their products are sold via the selective distribution: they sell a precious product for a very expensive price. Just like Veuve Clicquot, those brands use the non media actions to gain the loyalty of their customers. [...]
[...] ( Value Proposition What to Offer - Our flagship: Burt Yellow Label - Decline the offer for the up-market target with the Vintage product - High quality product - Quite expensive to justify our positioning - “Veuve Clicquot Paris” - A reference product ( Value Network How to Deliver Now that we know who our target is, what offer we are going to propose and how we are going to reach our goal, we can develop our marketing mix in order to know exactly how to enter our market efficiently. [...]
[...] MEDIA: LAUNCHING JANUARY 2010 (Internet We are planning to create a Chinese version of the website of Veuve Clicquot with an e-store so that people can easily obtain information about using fact, in www.veuveclicquotparis.com.cn customers will learn more about the brand and will know where to find our product in China. Of course we will have to deal with the authorities to ensure that our content doesn't clash with the Chinese government given the strict and controlled rules laid by the Chinese government. [...]
Online readingwith our online reader
Content validatedby our reading committee