Stone Creek Winery

Bringing a taste of California to Japan Preliminary Marketing

Plan May 14th, 2009
Pattie Chen Jim Folger Alexis Kushner Alesandro Licopoli Christopher Serio

Marketing Objectives
Unsolicited inquiry received from Japan. Large untapped Japanese market. Japan has a cultural appreciation for alcohol. Target audience is young, Japanese females.
40% of females have at least one glass of wine per month.

Women are more conscious of western trends.

Product Adaptation
Modifying the product to become more Japanese would counteract the interest in California wine. Packaging is essential. Labels must be meticulously placed, good attention to detail.
Japan Packaging Institute, has been promoting the rationalization of production and distribution as well as a consumption through improvement and elevation of the packaging technique and thereby contributing to the progress of Japans economy.

Promotion Mix
Objectives:
To generate the attention of consumers To build a strong brand name To create consumer demand for our wine

Message:

Stone Creek wines are crafted from quality grapes grown in the Lodi, California wine region Promoting 2 attractive core components (Design Features):
Quality of grapes: The western-ness of California Making process: Wine are produced in tradition

Strategy:

Push: Educational materials to the distribution chain Pull (Long-term): 1.Advertising 2.Trade show 3.Sponsorship 4.Sales promotion

Pull Strategy-1: Advertising

Work with the Japanese distributor, Smile Corporation Utilize pre-existing distribution channels Smile Corporation helps implement Japanese advertising campaigns by using:
1. Print Ads: Early adapters and innovators Magazine, Newspaper, Menu Inserts 2. Web: Targeting, Database, Effective Direct Mail, Banner Ads, Official website, Keyword search 3. Outdoor: Billboards for branding

Pull Strategy-2: Trade Fairs and Exhibitions

Increase awareness of our wines Encourage trial Meet with trade organizations and consumers

Pull Strategy-3: Sponsorship

Japanese drama shooting Expose our wine bottle and brand name to our target audience Fashion show events by brands Associate Stone Creek with celebrity and established quality lifestyle brands

To distributors:

Pull Strategy-4: Sales Promotion

Promotion for the order of certain amount of cases

To customers:
Free tasting events Mail Coupons

Channels of Distribution
Request distributor to fill out the standard distributor questionnaire Create a long-term relationship with the distributor Prepare contingency plans should this relationship not last given Stone Creeks commitment to Japan Prepare for possibility of being contacted by a competing Japanese distributor

Initial Pricing Strategy

Cost-Plus approach - $50/case.
$35 + 40% mark up.

Invaluable to Stone Creeks strategic mix.

Shipment is not just excess inventory.

Advantage of working with a distributor.

Control and minimal investment for entry.

Current strategy allows for easy

Price Escalation
Tariffs and liquor tax laws.
$1.95 per bottle.

Japanese recycling regulations. Inflation rates in the United States and Japan. Exchange rate fluctuations.

Future Pricing Strategy

Initial strategy - Irrevocable Letter of Credit.
After tariffs, taxes, mark-ups - $17-18 per bottle.

Future transactions
Full-Cost pricing strategy.

Foreign currency transactions.

Protective hedging and currency repatriation.

Future business resource

Fax Offer - key points

Entice our prospective buyer Set a positive tone for future relationship Relevant technical details Offer Free Advertising Possible future discount Subtlety hint at finding a distributor Questionnaire

Total price All applicable shipping details Payment terms Letter of Credit Conditions Letter of Credit Documents

Proforma Invoice key points

Conclusion
Excellent growth opportunity for Stone Creek.
Importance of international business.

Minimal business and marketing investment.

This has room to grow as relationships develop. Marketing channels and revenue steams exist.

There is no downside to Stone Creek

Questions?