International marketing and

brand management

BRL

Sahar Erfani
David Kiss
Tobias Spindler
Tomas Voska

content
1.

2.

Introduction of BRL and Hardy

Kellys Revenge versus Banrock
Station

3.

Launch Distinto or not

4.

We advise...

BRL
The oil refinery of the wine industry
Fortified, bulk, and value wines

Aggressive and commercial culture

Fruit, funds, and disciplined management

Hardy
Award winning quality
Polite and traditional culture
Marketing expertise, brands, and
winemaking know-how

BRL Hardy sales and Debt/Equity ratio after merger

sa le s i n m ilio ns A $

B R L H a rdy - s a le s

400

8 0%

D e b t/e q u ity ra tio

350

7 0%

300

6 0%

250

5 0%

200

4 0%

150

3 0%

100

2 0%

50

1 0%
0%

0
1992

1993

1994

1995

1 99 6

1997

Australian Wine Export Forecasts

500

actual export 1996

forecast export 2010
forecast export 2025

Sales (a$ milions)

400
300
200
100
0
UK

USA

Germany

Japan

# o f 9 lit e r-c a s e s o f H a rd y 's w in e s o ld in E u ro p e

2000000
1800000
1600000
1400000
1200000
1000000
800000
600000
400000
200000
0
1991

1992

1993

1994

1995

1996

1997

Problem Definition

1. UK Launch: Kellys Revenge or Banrock Station?

2. Should Distinto be Launched?

Implication: Degree of Decentralization for BRL Hardy

New Product for the UK Market:

vs
PRO
Low Price Point
UK Team Supports Product
Aggressive/ Flashy Label
(For Younger or First-time
Consumers)

PRO
Low Price, Good Quality
Already Launched => Low Cost
Consistent With Global
Strategy
Environmentally Friendly

CON
Not

a Quality Wine for the

World;Too Down Market
ASDA not Enthralled
Not a Global Brand
(Inconsistent with
Headquarters' Strategy)

CON
Banrock's Station is not
Recognized in UK
UK Market is Not a Brand
Market
Dull Label, Not Youthful

Perceptual Maps
price

Kellys
Revenge

3.49

Banrock
Station

quality

Launch

or

Cancel

Distinto
Strategic factors
Launch
Brand for average consumer (3.49 to 6.99)
European (or World) market target
Italian wine is very popular
Grape from Italy protects company against bad weather in
Australia
Consistency with global strategy

Cancel
Competitor for Hardys Stamps and Nottage Hill
(but market is growing => we need more wines)

Launch

or

cancel

Distinto
Organizational and Financial factors
Cancel
Launch
Organizational factors
Organizational factors
UK will be overextended
Poor JV management in past
(Mapocho)
Decentralization

UK team successful
Carson knows Italian wine
True partnership, unlike
Mapocho from Chile

Financial factors
-Cheep launch (500 000)
-Good forecast of selling
(made by Carson, expert on UK
market)

Launch

Financial factors
Development 100 000
Risk another 400 000
(development)

or

cancel

Distinto
Brand

Label is great
Very impressive colors; the whole bottle
looks expensive but price is medium-low
Price range from 3.49 to 6.99 generates
80% of sales in UK

Davies
Position of power (hierarchy)
BRL Background
Controls key resource, Australian grapes
He wants to bring power back to headquarters
Carson
Expertise in UK and European markets
Numerous European customers are a key
resource
Earned stripes by improving performance
through cost reductions even before BRL takeover

Structural tension
Carson reports to Davies, group marketing and export
manager, for marketing strategy.
Carson reports to Millar for profit performance.

We suggest a change in organizational structure

Millar

Davies
Carson

4 options for launching

Accept both Distinto and
Kellys Revenge
Reject Banrock Station
Accept Distinto and reject
Kellys Revenge
Accept Banrock Station
Reject Distinto and accept
Kellys Revenge
Reject Banrock Station
Reject both Distinto and
Kellys Revenge
Accept Banrock Station

Promotes delegation
De-legitimates global brand strategy
Honor Carlson work
Legitimates global brand strategy

Shame Carlson
De-legitimates global brand strategy

Shame Carlson
Legitimates global brand strategy

Improvements for Banrock Station

New
Problem with label
label?
Old

More colorful, interesting,

impressive.
Inside is a quality wine and
thats why first time drinkers will
continue drinking wine after the
first taste.

Australian Wine Export Forecasts

500

actual export 1996

forecast export 2010
forecast export 2025

Sales (a$ milions)

400
300
200
100
0
UK

USA

Germany

Japan