International

Sales Management Export Plan For

Guinness Beer (Dark Beer) Dark beer export to India By Chen Ye Cheng (Arty) 523290066-0

Executive Summary
- Guinness is a popular Irish dry stout that originated in the brewery of Arthur Guinness (17251803) at St. James's Gate, Dublin. Guinness is directly descended from the porter style that originated in London in the early 18th century and is one of the most successful beer brands worldwide, brewed in almost 50 countries and available in over 100. 1.8 billion pints are sold annually. (1 pint =1.136 liters) - The reason for export dark beer to India is India has the biggest potential market (except China, China is exporter). Indian population is 1.21 billion; assume that there is 50% of Indian population drink 1 liter per year (In Czech, the biggest beer consumption country in the world, almost 96% of its population drink beer. So, 50% of Indian population will be a reasonable and achievable number.) , it will create 0.6 billion liters (almost 30% of Guinness beer sold per year) dark beer consumption. - In real situation, Indian beer consumption has gone up more than 90% since 2002. (Brazil (20%), Russia (50%) and China (60%))

 Company Description
1. Mission statement To become one of the worlds most trusted and respected companies. 2. Business history - 1759 Arthur Guinness takes over a small disused brewery in Dublin, and leases it for 9000 years at an annual rent of (pounds) 45 per year. - 1769 First overseas export, 54 barrels of Guinness porter (stout) is shipped to England. - 1803 First export to the West Indies. - 1833 Arthur Guinnesss brewery, at St. Jamess Gate, is officially the largest in Ireland. - 1869 The first Guinness franchise for Australia is opened in Melbourne. - 1886 Guinness becomes first brewery to be floated on the London Stock Exchange. The Dublin Brewery has become the largest in the world. - 1932 Building commenced on the first overseas Guinness brewery in West London. - 1996 Guinness introduced in China. - 2004 Brewing of all European Guinness returned to the

companys historic St. James Gate brewery in Dublin. - 2007 Guinness Red in Great Britain was launched. 3. Corporate Structure The Board of Directors comprises 4 executive directors: Board Chairman Vice Board Chairman and Managing Director Finance Director Corporate Relations Director 8 non-executive directors 4. The export team There are three major markets for Guinness - Great Britain, the US and Ireland - and another 130 other smaller markets. 5. Export Goals and Objectives - Expend brand perception to Asia. - Increase sales by 5% annually. - Gain profit.

 Product/Service Description - Product description

1. Guinness Extra Stout

Extra Stout is strong tasting with a distinctive roasted bitterness; it is a complex beer full of character thats great with food.

2. Guinness Draught

Guinness Draught is creamy and smooth with a taste of coffee, dark malts, and hints of dark chocolate. The black bodied and smooth creamy head finishes with a dry roasted bitterness.

3. Guinness Mid Strength

It is brewed in the same way as 4.2% alcohol. So you can enjoy all the taste of Guinness, without all the alcohol. It's got the same ingredients, the same look, and the same distinctive taste. And as ever, there's only one way to settle it.

- Competitive Advantage
The biggest competitive advantage of Guinness Beer is quality. The Total Quality Management (TQM) philosophy is applied both within the five breweries and to the process by which the product reaches the consumer in prime condition.

- Target Market
Guinness targeted to all the Indians who reached the legal age (18 25 varies between states) to drinking. -

Product Lifecycle
250 years +

Growth Potential International Markets

The worlds beer consumption is rising.

Foreign Marketplace Analysis 1. Why choose India?

- Indian consumers prefer strong lagers which has higher alcoholic content. - Indian beer market has witnessed a steady growth of 90% over a decade. - India is currently among top three markets in Asia.

Market Size
50 45 40 35 30 25 20 15 10 5 0 2007.5 2008 2008.5 2009 2009.5 2010 2010.5 2011 2011.5

Market Size

2. Know your major competitors Top 5 India Beer Brand

- 1. Kingfisher

Kingfisher, "The King of Good Times", is India's most recognized and widely available beer. Its name has been associated with sports, fashion, and even an airline. The beer itself is a light tasting, easy drinking beer with plenty of malt. It goes down really well -- if not a little too well at times! Kingfisher Strong, containing around 8% alcohol, is fast growing in popularity and has more flavor than the regular Kingfisher Premium, which has 4.8% alcohol. Another

variation is Kingfisher Blue, marketed at the young and trendy. This is also a strong beer with around 8% alcohol but it has a very light watery taste. Distinctive and full-bodied Kingfisher Ultra, made from imported ingredients, is the newest label to hit the market.

2. Haywards

Haywards beer is light bodied and watery tasting, so definitely not recommended for those who prefer beer with bite! The brand is most well known for its Haywards 5000 label -- a top selling strong beer that contains 7% alcohol. Haywards also produces Haywards 2000, a mild beer with 5.5% alcohol, and the rarer super strong Haywards 10000. Lovers of stout beer may be interested in Haywards Black -- India's first genuine stout beer. It's a strong dark colored beer, with 8% alcohol, and a heavy sweet malty taste that apparently hints of caramel

3. Royal Challenge

Royal Challenge Premium is a mild beer containing 5% alcohol. It's most popular in the states of Andhra Pradesh, Uttar Pradesh, and Orissa. The beer has a long brewing cycle, giving rise to its slogan of "Brewed Longer, Brewed Better". In comparison to many Indian beers, it's quite a full bodied and tasty beer. It's not as flavorsome as the Kalyani Black Label, but is still distinctive.

4. Kalyani Black Label

Kalyani Black Label is one of India's oldest lagers and is particularly popular in eastern India, in cities such as KOLKATA, as well as DEHIL. It comes in both premium and strong varieties. The strong beer is described as "a smooth, mellowed brew with an extra bite". Its alcohol content, at 7.8%, packs quite a punch, along with its sweet aftertaste.

5. Kings

The beautiful beaches of Goa and Kings beer go hand in hand. This beer, which unfortunately is only brewed and sold in the state of Goa, is a highlight of any trip there. The Kings Black Label premium pilsner is a very light tasting, pale colored, beer that's known for its smoky malt aroma. Its got an alcohol content of 4.85%, and is priced very attractively. A small 375 ml bottle will only set you back around 35 rupees (75 cents) at most beach shacks, and half that at a liquor store.

Marketing Entry Strategies

- Online Sales, for example Alibaba.com, Ebay.com. etc. - Open Facebook and Twitter account. To promote online. - PR (Public Relation), establish football fan club in every big city of India, and organize activities during match day, provide Guinness Beer. Football has most fans in everywhere, so I decide to start with football. There can be a slogan: Match

day, time for Guinness. - After Guinness popular in India, its easy to make a deal with any kind of importer in India. Such as retail store, supermarket, bar, reassurance, hotel, etc. - Before brewed, a 330ml bottle of Guinness cost 450INR (11.35$); after brewed, a 750ml bottle of Guinness can sale under 100INR.

International Laws and Regulations

1. Import duty on beer 100% basic; 10% surcharge; SAD ( Special Additional Duty): 4%. 2. Sales taxes: 45% 3. Regulation: - Subject to licensing under Industrial (Development and Regulation) Act, 1956 - Cap on licensed capacity; special license for expansion - Beer policy; announced in 1994 to augment industry growth - Plethora of duties and taxes from bottling to sales stage; varying from state to state.

 Risk Management
1. Currency Risk China and India both have stable currency. 2. Transport Risk Natural disasters can make the transportation process more risky, such as the storm or ice disaster. 3. Risk of fraud Choose trade partner carefully.

Plan Improvement
1. To brew Guinness in India, need to know more information. Such as land rental price, cost of materials, labor cost, and factory overhand, etc. 2. Also need more primary data to analyze Indian beer market current situation and need to know consumer buying behavior. 3. To know more about Indian religion, culture, norms, etc. To avoid culture conflict and promote communication.

 References
http://en.wikipedia.org/wiki/Guinness_Brewery http://en.wikipedia.org/wiki/Guinness https://docs.google.com/viewer?a=v&q=cache:GzZmMTOi5dgJ:chat.carleton.ca/~cfli ntof/diageo.ppt+guinness+beer+history+ppt&hl=zh-CN&pid=bl&srcid=ADGEESjRwyg OTx--EGnz3Q11qmY7DnjkY5Y134gvSAuD_GqZlu-GxSml0RFOzPPidMXstKM30iQ3NDO UxWr98IRZz-LSj405XcweEKYBdmCKPTxhVQo0ZuxE27vC1t2BTWSQQU5UWJ-T&sig=A HIEtbTbDQ5jPJ0j1wGyjk9oPm_ZP4NNKg http://www.diageochina.com/english/index.php http://www.business2000.ie/pdf/pdf_3/guinn_3rd_ed.pdf http://www.realclearworld.com/blog/2011/04/the_worlds_beer_consumption.html http://www.nationmaster.com/graph/foo_bee_con-food-beer-consumption http://www.just-drinks.com/news/diageo-mulls-asian-brewing-for-guinness_id9235 9.aspx http://www.indiamarkets.com/imo/industry/foodprocessing/liquor.asp?display_con tent_link=0&search_link=0#BEERMKT