Are the shifts in target market beneficial for remy

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Reference no: EM132720921

RÉMY MARTIN INTRODUCES CENTAURE TO CHINA Rémy Cointreau is a French spirits company, probably best known for its Rémy Martin cognac brand. Global net sales were €808 million in 2010. Cognac accounts for over 60 percent of the firm's sales. By 2010, China had become the third-largest market for cognac, after the United States and Singapore. Market research showed that cognac drinking in China is often for business entertainment. In an interview with Campaign Asia, Kitty Lun, CEO of ad agency Lowe China, said that: "People often wear a ‘fake mask,' but business acquaintances can in fact turn into genuine friendship, sharing wine with friends, and bring out ‘true emotions.'" To answer the Chinese consumers' thirst for fancy cognacs, Rémy Cointreau launched Rémy Martin Centaure, an extra-old cognac. Pierette Trichet, the company's cellar master, selected honey and fruit flavors to develop the new brand. Drinking expensive cognacs is popular among older businessmen as a way to show off their social status. However, Centaure targeted China's new generation of young businessmen who were looking for a ‘smoother' cognac to drink at social gathering and karaoke bars. Younger professionals were more concerned about authenticity and less inclined to formality than their older counterparts. The Centaure bottle came in a fancy red copper box and was adorned with the seal of the centaur, a Greek mythological figure that is part human, part horse. One bottle would retail for around RMB1,000 (around $155). The launch of Centaure was supported by a TV, print, and digital campaign featuring Hong Kong film celebrity Anthony Wong as brand ambassador. In the TV spot, Wong says: "If I'm Anthony Wong the actor. I'll say, I like the script. If I'm simply Anthony Wong. I'll say, I like the paycheck." Then the ad shows Wong drinking Centaure with his friends. The narration continues: "Right now. Anthony Wong is simply Anthony Wong, you are simply you. Without complications. Centaure Seal of Sincerity." While Centaure was scheduled to become a global brand, the company had not yet finalized its global launch plan.

DISCUSSION QUESTIONS

Question 1. Centaure is yet another example of products being designed and marketed-at least initially-specifically for the China market. Some people describe this phenomenon as a shift from made in China to made for China products. What are the drivers behind this trend?

Question 2. Rémy's latest brand addition targets young Chinese businessmen. In the United States, Rémy has become the drink of choice among gangsta rappers. Cognac used to be the preserve of old white men. Are these shifts in target market beneficial for Rémy ? What could be some possible risks?

Question 3. Rémy planned to introduce Centaure in other Asian countries. What criteria would you use to decide on best possible candidate markets for further rollout?

Question 4. How would you market the brand in these other countries (you could pick India as an example). Would you take a similar approach (e.g., target market and famous movie celebrity), or would you tweak the campaign and if so how?

Reference no: EM132720921

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