International marketing plan.

CENTRO DE ENSEÑANZA TÉCNICA Y SUPERIOR

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Escuela de Administración y Negocios

International Marketing

International Marketing plan: White rum to Ontario, Canada

Present:

Inés Margarita Haro Saaib  21704

Tijuana, B.C., November 28, 2015

Executive summary

This International Marketing plan focuses on the production and marketing of White Rum, which is based on molasses, a byproduct of sugar cane of the highest quality which is 100% Veracruz, developed through a traditional process, It contains no preservatives, which guarantees a product with an exquisite taste for tasting consumers.

To export the proposal to market the product in Ontario, Canada is presented.

For the development of this project attributes and characteristics that comprise the product and determining the tariff to be rated for its international marketing will be evaluated.

Within the market analysis the current situation of the industry rum production in both countries, cultural, political, economic and social issues that will help determine the chance of being accepted by the market that is intended to reach and establish specifically studied the target market in which potential customers which will be directed the product is located.

In this study non-tariff barriers to be aware of any conditions or adjustments which in time be taken into account in deciding the project are analyzed.

Because now the Mexican producer of white rum has 5 hectares, the maximum production is 40,000 liters, of which 13.50% will be destined for export effort, ie, a total of 5.400 liters up the amount of expected sales. The previous volume would generate a profit for the export of $ 6527.52 US dollars, however, this amount may be increased in proportion to the increase in production.

Product

        White Rum is a product obtained from the distillation of molasses and / or fermented juice of the sugar cane. Alcohol content reaches 80 degrees but is lowered by adding distilled water. This liquor is aged in barrels usually copper for different time periods. Some of the main characteristics or attributes of the product are:

• Traditional and handmade product

• It contains no preservatives.

• It is a colorless drink is transparent, odor and flavor.

• It is an alcoholic drink made from water, molasses and yeast.

• It can be mixed to form drinks like mojitos, margaritas, etc.

• Volume of alcohol, 40 degrees.

• Packaged in a glass bottle with safety cap.

• Presentation 750 ml.

Product production process:

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Some of the capabilities of the product to be exported are mainly being a 100% natural, no preservatives, has a competitive price, there is a growing demand for the product and has Tratadi Canada Free Trade Agreement (NAFTA).

The table below Mexico's main exports are presented with the rest of the world in 2014. (SIAVI, 2014).

Main exports of white rum Mexico to the world:

Table made considering the information SIAVI (2014).

Canada remains one of the major importers of White Rum, could be defined that the entrance of the product to Canadian market is viable from the point of view of the consumer as this keeps constant consumption levels over the years. It is important to say that based on a good strategy for product positioning in the market can achieve supply diversification needs seeking consumers because it is a niche of wide market and basing in other economic indicators, you can define who has strong consumption capacity.

Market

Food and beverage industry in Canada

The Canadian food industry and beverages is recognized worldwide by strict safety and quality parameters required by the sector and the importance of products friendly to the environment than the Canadian consumer demand.

The beverage market in Canada is dynamic and intensely competitive. The increasingly sophisticated consumer tastes affect markets wine, coffee and tea, while styles of healthy and active lifestyle contribute to a constant change in products and markets packaged juices, alternative drinks and bottled waters.

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According to a study conducted by Expert in trade for developing countries (TFO Canada) called Drinks 2011 based on the Corporation Beverage Marketing, he noted that the sale of distilled spirits in 2009 were led by the vodka (26.7% share of market by volume), followed by whiskey (25.5%), rum (19.1%) and spirits (14.8%).

Canada's population in 2010 was 34.1 million people, where a third of these are concentrated in the province of Ontario, of which 56% is located in Toronto with a population of 7.39 million inhabitants of which 49.51 % are men and 50 are women 41%. (Statistics Canada, 2010).

It is important to consider that in the province of Ontario, alcohol is only sold in some authorized by the government, the government has control over alcohol sales in Canada shall bind. In Ontario, there are some dealers authorized to sell alcohol: The Beer Store, which sells only beer (local 436); wine shops (395); and LCBO (Liquor Control Board of Ontario), which sells all kinds of drinks (local 196). Alcohol is not sold in supermarkets, and these stores have very short hours.

With regard to licensing, the Alcohol and Gaming Commission of Ontario (Alcohol and Gaming Commission of Ontario-AGCO) is responsible for the administration of the Act Liquor Licensing, covering most aspects of liquor laws of Ontario. These laws provide the regulatory requirements for responsible sale and service of alcohol in this province.

The Law of liquor licenses and regulations provide guidelines for the following licenses:

• license to sell alcohol.

• License delivery service of alcoholic beverages.

• License producer of alcoholic beverages.

• License producer representative.

As for its economy, Canada has the tenth largest economy in the world Largest has one of the highest levels of economic freedom and is a member of the Organization of Economic Cooperation and Development (OECD).

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Canada is a country with a stable economy that remains within the top global social and economic welfare which represents an attractive consumer market for different countries, in the case of Mexico in addition to the above features FTA supporting this cause and allowing the entry of products faster and with less limitations.

The target market focuses on specialty retailers of alcoholic beverages, wholesalers who are licensed to sell alcohol, and are appointed LCBO Store, because it is more feasible by the regulations concerning the distribution, as these importers, They are those who come into contact with retailers, whether large chains or small establishments.

The orientation of the target market are dealers who marketed it among retailers who in turn will pass it to the final consumer, which focuses on men and women between 19 and 45 years of age, it is in this age range tends to concentrate consumption more frequently, also in the downtown area of the city, because it has a greater number of places of entertainment, shops, universities, besides having a pace of life, the most frequented area of Ontario where there is the highest concentration of the Canadian population. (Statistics Canada, 2011).

Demand strategy

Some non-tariff barriers to entry are labeling requirements.

Canadian requirements for packaging and labeling of spirit drinks wine, beer and spirits are administered under the Act and Regulations and the Food and Drug Act and Regulations Packaging and labeling of Canada.

Overall packaging and labeling requirements must show, in English and French the following information:

• Common name of the product (ie, light beer, liquor, etc., must be shown in type of at least 1.6 mm in height).

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