Group 5 @ Raleigh : Pernod Ricard Internalization Success

Success of the internationalization of Pernod Ricard in Japan (1991-2014)

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A world co-leader in the field of wine&spirits, Pernod-Ricard operates autonomously in Japan since more than 20 years. The company is succeeding in this country where people tend to drink less but better. Its strategy is to establish a brand port-folio linked to the market tendencies and consumption habits. In order to do this, Pernod-Ricard Japan rely on 3 main points deeply well-established in the group culture :

  • Decentralization of decision
  • Creation of value through innovation
  • Team spirit.

The Business Model is based on their ability to take decisions and act locally to increase their responsiveness in the market. P-R’s particularity lies on giving to its subsidiary the entire responsibility for Profit&Loss while they get support from the brand owners who are in charge of the production and the global strategy of the brands. It enables the teams to ensure consistency between global brand’s strategies and their local application. The strategy of Pernod Ricard Japan has been to focus on product value in terms of marketing placement based on reputation and image of the product. This strategy has been implemented thanks to a huge and continuous investment in innovation, to response to a decrease in consumption volume of spirits. On one hand, Pernod Ricard has decided to launch product related to different age criterion and on the other hand, products related to different type of consumers. For instance, Café de Paris, a product with different flavors and that can be customized, has been launched for entertainment purpose and got a huge success.

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An other example to quote is the “premiumization” of a product, as Pernod Ricard did with the Chivas 18 years Gold Signature in order to reach the upper class and their need for quality.

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Moreover, the group has succeeded in mixing the brand image with Japanese food culture. They had called for a famous Japanese chief to innovate a wine that can be in accordance with Japanese food tastes. Pernod Ricard has succeeded in creating a strong link with the country and not only insert the brand in the spirits market. This advantage enabled the group to be able to deeply understand how a Japanese consumer reacts to a product or to a trend. It is the reason why Pernod Ricard’s implementation has been an upward trend and embodies one of internalization success example.

Sara Faraj / Clément Cheiroux / Louis-Maxence Harb / Robin Sbai / Simon Coin / Hadrien Breux

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