[International Business] Pernod Ricard

1. o Leader: Victoria Gerard
o Knowledge Manager: Jade Peridou
o Speaker: Woojin Kim
o Illustrator: Thibault Fliche
Trendy new technologies in the nightclub industry
ECONOMY OF DANCE AND FASHION
Fashion (in clothing ) and Dance Fashion (standing for Trendy) and Dance
Exhibitions
and shows
School of
fashion
Industry of Nightclubs
and trendy new
technologies
DJ on fashion
and related
industry
Fashion designers
with interests for
dance
Economy of Dance and Fashion
International business – presentation n°1
Trendy dancing
over time

2. International business – presentation n°1
ABOUT THE TRENDY NEW TECHNOLOGIES
IN THE NIGHTCLUB INDUSTRY . . .
• Nightclubs’ market: €17 billion
 The most profitable (in Las Vegas) makes €70 million
• 20% of clients result in 80% of the total revenues
• Today 100 nightclubs use mobile apps (Yossa, Tablelist)
• Social medias play important:
 Facebook: 1.28billion active users a month
 Twitter: 255million active users a month
• Clubs are ready to invest more than $400,000 in equipment to stay on top.

3. International business – presentation n°1
DEMAND AND SUPPLY
FOR THE NIGHTCLUB INDUSTRY
REVENUES IN THE NIGHTLIFE
INDUSTRY IN THE US
Supply 1
Supply 2
Demand for 20%
Demand for 80%
Aggregate Demand
Aggregate Demand2
Prices
Quantities
P*
Explanations
P2
Q* Q2

4. International business – presentation n°1
PERNOD RICARD IDENTITY CARD

5. International business – presentation n°1
KEY FIGURES ABOUT PERNOD RICARD
ASIA & ROW – 38%
3 031M€
AMERICA – 27%
2 142M€
EUROPE – 35%
2 773M€
S A L E S B Y R E G I O N S

6. International business – presentation n°1
THE CORPORATE’S INTERNATIONAL STRATEGY
1. BRANDS
2. PREMIUMISATION
3. DECENTRALISATION
4. CULTURE
5. COMMITMENT TO
ETHICS

7. International business – presentation n°1
TYPOLOGY OF CHINESE CLIENTS
THE FIRST KEY TO SUCCESS WOULD BE KNOWING “WHO” CONSUMES “WHAT

8. International business – presentation n°1
THE CHINESE CHANGING ENVIRONMENT IMPACTING
PERNOD RICARD
Health and safety concerns
 led to an increasing popularity of
non-alcoholic drinks
New laws negatively impacting
the business
 2006: law prohibiting sales of
alcoholic beverages to people
below 18.
 2009: tax increases on strong
alcohol to promote healthier habits
Economic Boom
pubs development
increasing purchasing power
Pubs and females’ consumption
wine’s market dramatically grew
(14% CAGR from 2009 to 2014)
Governmental regulations
WTO’s reduction of import duties
on foreign alcohol

9. International business – presentation n°1
PERNOD RICARD’S LARGE COMPETITION
Diageo - $15.9
Bacardi Martini – $4.5
LVMH – $4.7
Brown Forman - $4
SAB Miller- $22.3
Coca-cola- $46.7Danone – water $4
Pernod
Ricard
Pepsico - $32
Tsingtao brewery - $4.5
ABInbev - $43
Beijing Yanjing
Beer – $2.2
Molson Coors - $4.2

10. International business – presentation n°1
THE IMPACT OF MOVING
CURRENCIES’ EXCHANGE RATES ON MARGINS
Margins doubled up from January 2010 to January 2015 thanks to the variation of currencies’ exchange rates