Giovanni Buton:

International Marketing Strategy

Submitted By:
CABAYACRUZ, Jamie Bernadette C.
CARPITANOS, Joyce Sophia R.
TAN, Krystal Joy, D
TAN, Neil Matthew L.
ZOZOBRADO, Bethle May M.

Submitted to:
Mr. Francis Arroyo

Date:
July, 23, 2015

Giovanni Buton: International Marketing Strategy

Problem Statement
How can Giovanni Buton move forward and compete with other market
competitors in the international concern?
Objective
The objective for the Giovanni Buton is to strengthen the structure of the
organization itself by reconstructing their current team as well as their distribution
channels for them to be able to maximize the international business trade.
Brief Description of the Case
In the business world today, there are still a lot of growing industries trying to
diverse their products to consistently increase their profit. These companies still keep on
innovating new ideas, advanced technology, and the best quality for their target market
to assure the loyalty of their customers. These business people or companies have
always been competitive and determined in expanding and spreading their business to
have a larger scale and percentage of their market.
In the given case, Giovanni Buton has a very good result in the business that
they have. They gain profit from what they sell and there is no problem in their earnings.
Giovanni Butons products are also famous because it serves and gives its customers
the quality that they deserve. They had become Italys largest spirits producer.
Years later, there were also companies that started to rise. What they did is they
hired good business partners to help them in developing their marketing strategies to be
able to compete with the other rising companies in Europe. They have reviewed the
trends of consumption, distribution, and marketing of the spirits. They have decided to
focus on West Germany, Spain, and Greece. They have encountered a problem too and
that is the national anti-alcohol campaign that served to be a restrain in sales. Despite

of this event, their products still became one of the best and their sales remained strong
and stable though their imported brand experienced particularly buoyant growth.
Areas of Consideration
Strength

Giovanni Buton has already created and made its name known.
They have a huge variety of product line.
The industry has gain the trust of the other European communities which helped

them make their market shares raise a little higher than usual.
They implemented market integration program designed to improve efficiency
and stimulate growth.
Weaknesses

The company does not weigh pros and cons when getting into a new corporation.
The brand was able to lose itself which then results to the downfall of sales.
Govanni Buton tried to eliminate and simply their target market for easy

production and distribution.

The company did not do their research very well that is why they have

experienced certain downfalls or pitfalls.

The brand was able to lose itself while emerging with other companies.
Opportunities

Giovanni Buton has a great chance to open branches internationally.

The business entity can widen their scope of customers and try not to limit them

to a certain target market.

The industry can prepare strategic alliance to be prepared for competitive
situation.

Threats
Ever-changing industry trends
Emerging competitors
Economical factors (eg. Taxes, anti-alcohol campaign, high tariffs)
Consumer Demand

Alternative Courses of Action

ACA1: Forming Strategic Alliance

Strategic alliance could help the company develop a more effective process, expand
into a new market or develop an advantage over a competitor. The three countries
West Germany, Spain and Greece that were selected to be reviewed will be taken into
consideration to form a joint venture.
Advantages:
Economical: This can be costly but since we are having a joint venture, all costs
could be shared or divided respectively.
Political: This does not violate any law.
Psychological: This would have a positive effect to the persons involved
because these would create good communication and can create good
harmonization for companies present in the joint venture.
Social: This is acceptable to the community because a given state wherein the
joint ventures would be working on, this could benefit the state itself knowing
GNP and GDP would be present and they would also earn money in behalf of the
products being sold by the joint ventures.

ACA2: Develop Global Competition Strategy

International competition is a fact of life for today's companies. Manufacturers

from the Philippines take for example, must always put into consideration not only the
exports of our country but with the other foreign subsidiaries. The same is true for
manufacturers and other companies in Japan and the European Union (EU). Everyone
is competing for a share of the international marketplace.
Advantages:

Economical: The costs depend on the company itself because the company
would rely on certain grounds with them to achieve the strategy itself. They could
apply or work on certain aspects wherein they would be able to control their costs
to be lesser.
Political: This does not violate any law otherwise stated by a given state or
foreign country
Psychological: This has a positive effect because you try to communicate with
the other countries in order for you to also evolve as an entity.
Social: It will be acceptable to the community because it does not violate or
cross over any status of a given individual or entity

ACA 3: Conduct a business research especially in European Communities

It is vital to conduct a research in European Communities to keep up with market

trends in a particular country and to maintain a competitive edge among its competitors.
Conducting a business research will also help the company to understand its target
market and formulate ways on how to increase sales.

Advantages:
Economical: The cost to be incurred will depend on the companys approach on
how they will conduct a business research in European communities.
Political: This does not violate any law.

Psychological: This would have a positive effect to the persons involve because
you would the different preferences of each person when it comes to business
research, this would also try to create great camaraderie.
Social: This is acceptable to the community because the research can be useful
to for future events as basis or research reference.

Recommendation
The recommendations encouraged by the researchers are to expand, and to
build alliances with other companies. First, expanding would greatly help the company
in having a greater scope of market. Growing or bringing the business to other places in
Europe will increase its popularity since it will also involve the actions of advertisements
and promotions. Their products are great and this would likely be an advantage when
they start to spread throughout the European region.
Second is to build alliances with other companies. Building and making partners
to have a great team will help produce better ideas and creative juices, and that would
help the team best results. This suggestion would have advantages because objectives
are openly shared. There is also a little chance of future competition with each other,
and alliances could think and create new ideas for future strategic options that would
have big impact in the market.

Action Plan
Activity/Plan

Implementing

Monitoring

Person(s)

Scheme

Scheme

Responsible

Target Date

Budget/Resources
Needed

Have
a
meeting with
other
European
companies or
communities
and
brainstorm

By having joint
ventures with
other the other
European
Communities

-A copy of an
agreement
between the
company of
Giovanni
Buton
with
the
other
European
communities

-Management Within
only
of Giovanni one year for
Buton
them to be
-Management able to run
of the other their industry
smoothly
European
Communities when it comes
to competing
internationally.

-Legal
Requirements
needed since
you have to
undergo
a
process
for
your business
entity to be
able to have a
partnership
with the other
European
Countries

Activity/Plan

Implementin
g Scheme
Schedule
a By trying to
meeting with the communicate
departments
to
other
involve of Giovani countries
Buton
when
making a strategy
and connect with
other countries

Activity/Plan

Implementin

Monitoring
Scheme
-Legal
requirements

Monitoring

Person(s)
Responsible

It would most likely

cost a large amount
of money, but since
it would be an
agreement between
a certain company
with
the
other
European countries,
all costs might be
divided respectively.

Target Date

Budget/Resources
Needed

and members
of the
International
Strategic
Development
-Management
of Giovani

Within
only
one year for
them to be
able to run
their industry
smoothly
when it comes
to competing
internationally.

It would either be
costly
or
not
depending on the
company on how
they will do it.

Person(s)

Target Date

Budget/Resources

--The head

Conduct a
business research

g Scheme

Scheme

Responsible

By gathering
certain people
to be part of
the marketing
research

-Permission to
use
certain
reference
or
documents
from
given
sources

- International
Strategic
Development
Team
of
Giovani Buton
Reseach
Department

Needed

Within
only
one year for
them to be
able to run
their industry
smoothly
when it comes
to competing
internationally.

It would either be
costly
or
not
depending on the
company on how
are they going to
approach
this
activity/plan.

Conclusion
The researchers would like to conclude that Giovanni Buton has really no
problem in their normal flow of business. However, since there are rising competitors
around Europe they have to expand and acquire alliances to be able to strengthen their
sales and to be able to create new ideas. In the event of global competition, Giovanni
Buton needs to think of ways to be able to earn more than they could because of the
competitors in the environment. Expanding would make their spirits known and having
business alliances could really help them in competing with other companies that sell
liquors, spirits, and brandies.