VYTAUTAS MAGNUS UNIVERSITY FACULTY OF ECONOMICS AND MANAGEMENT MARKETING DEPARTMENT PARVIZ JAFAROV MARKETING STRATEGY OF AZERBAIJANI WINE ENTERING LITHUANIA Master Diploma Paper Programme: Marketing and International Commerce, State code 621N50005 Study Field: Marketing Advisor: Assoc. prof. dr. Nina Klebanskaja (signature) (date) Defended: Prof., Habil. Dr. P. Žukauskas Dean of the Faculty of Economics and Management (signature) (date) Kaunas, 2015 CONTENTS SANTRAUKA.....................................................................................................................................4 ABSTRACT........................................................................................................................................5 GLOSSARY OF TERMS..................................................................................................................6 INTRODUCTION ............................................................................................................................. 8 1. THEORETICAL SOLUTIONS FOR MARKETING STRATEGY IN ENTERING THE FOREIGN MARKET ..................................................................................................................... 10 1.1. Strategic planning for international marketing ....................................................................... 10 1.2. Target market selection and evaluation .................................................................................. 13 1.3. The selection of method to enter a foreign market ................................................................. 15 1.4. Formation of international marketing strategy ....................................................................... 17 1.5. Marketing mix elements in the international context ............................................................. 18 1.5.1. Product ............................................................................................................................. 18 1.5.2. Pricing .............................................................................................................................. 21 1.5.3. Distribution channels ....................................................................................................... 22 1.5.4. Promotion ........................................................................................................................ 24 1.6. The theoretical model of the company entering a foreign market .......................................... 25 2. SITUATIONAL ANALYSIS OF TOVUZ-BALTIYA COMPANY AT THE INTERNATIONAL ASPECT ........................................................................................................ 27 2.1. Activities of Tovuz-Baltiya company .................................................................................... 27 2.2. Research methodology ........................................................................................................... 29 2.3. The results of the research in Kaunas city .............................................................................. 32 2.4. Product assortment and production potential analysis of Tovuz-Baltiya company ............... 37 2.5. Export peculiarities of Tovuz-Baltiya company ..................................................................... 39 2.6. PEST analysis of Tovuz-Baltiya ............................................................................................ 41 2.7. Competitive analysis of Tovuz-Baltiya .................................................................................. 44 2.7.1. Market segmentation ....................................................................................................... 44 2.7.2. Competitive analysis ....................................................................................................... 45 2.8. SWOT analysis ....................................................................................................................... 47 2.9. Identification of international marketing objectives ............................................................... 50 3. THE FORMATION OF INTERNATIONAL STRATEGY FOR TOVUZ-BALTIYA COMPANY ENTERING THE LITHUANIAN MARKET ........................................................ 52 3.1. Preparation of sales strategy ................................................................................................... 52 3.2. Selecting target market ........................................................................................................... 52 2 3.3. Azerbaijani wine positioning .................................................................................................. 54 3.4. The marketing complex strategies in Lithuanian market ....................................................... 56 3.4.1. Product ............................................................................................................................. 56 3.4.2. Price ................................................................................................................................. 57 3.4.3. Distribution strategy ........................................................................................................ 58 3.4.4. Promotion strategy ........................................................................................................... 59 3.4.5. Personnel ......................................................................................................................... 62 3.4.6. Promotion budget ............................................................................................................ 62 3.5. Tovuz-Baltiya international marketing strategy model .......................................................... 63 CONCLUSIONS .............................................................................................................................. 67 REFERENCES ................................................................................................................................ 69 ANNEX 1. ........................................................................................................................................ 74 ANNEX 2. ........................................................................................................................................ 75 ANNEX 3. ........................................................................................................................................ 76 ANNEX 4. ........................................................................................................................................ 78 ANNEX 5. ........................................................................................................................................ 81 ANNEX 6. ........................................................................................................................................ 84 3 SANTRAUKA Baigiamojo darbo autorius: Parviz Jafarov Pilnas baigiamojo darbo pavadinimas: Azerbaidžano vyno įėjimo į Lietuvą rinkodaros strategija Baigiamojo darbo vadovė: Doc. dr. Nina Klebanskaja Baigiamojo darbo atlikimo vieta ir metai: Vytauto Didžiojo universitetas, Ekonomikos ir vadybos fakultetas, Kaunas, 2015 Puslapių skaičius: 84 Lentelių skaičius: 9 Paveikslų skaičius: 24 Priedų skaičius: 6 Pagrindinis darbo tikslas yra naudojant analizuojamus teorinius modelius sukurti tarptautinę rinkodaros strategiją Azerbaidžano vyno įmonei Tovuz-Baltiya. Darbą sudaro trys pagrindinės dalys – teorinė, analitinė ir praktinė. Pirmoji šio darbo dalis skirta apžvelgti teorinius rinkodaros strategijos aspektus įėjimui į užsienio rinką. Šioje dalyje analizuojamas strateginis tarptautinės prekybos planavimas, nustatoma ir įvertinama tikslinė rinka, pasirenkami įėjimo į užsienio rinką būdai, analizuojami marketingo strategijos ir rinkodaros komplekso elementai bei pateikiamas teorinis bendrovės, įeinančios į užsienio rinką, modelis. Antroji darbo dalis skirta įmonės Tovuz-Baltiya eksporto veiklo ir įėjimo į Lietuvos rinką tyrimams. Vienas tyrimas buvo ekspertų interviu, o kitas – anketinis tyrimas – atliekamas analizuojant Tovuz-Baltiya galimybes patekti į Lietuvos vyno rinką. Tyrimo objektu pasirinktas Kauno miestas, nes šiame mieste Tovuz- Baltiya nori atidaryti savo vyno parduotuvę. Trečioji darbo dalis pristato skirtingas rinkodaros strategijas Tovuz-Baltiya – pozicionavimo, tikslinės rinkos ir rinkodaros komplekso elementų strategijas. Šis magistrinis darbas turi praktinės reikšmės, nes jo rezultatai gali būti naudojami kitoms panašaus dydžio kompanijoms, norinčioms įeiti į užsienio rinkas. 4 ABSTRACT Author of diploma paper: Parviz Jafarov Full title of diploma paper: Marketing strategy of Azerbaijani wine entering Lithuania Diploma paper advisor: Assoc. prof. dr. Nina Klebanskaja Presented at: Vytautas Magnus University, Faculty of Economics and Management, Kaunas, 2015 Number of pages: 84 Number of tables: 9 Number of figures: 24 Number of annexes: 6 The main aim of the work is by using the analyzed theoretical models to develop an international marketing strategy for Azerbaijani wine company Tovuz-Baltiya. The work consists of three main parts – the theoretical, the analytical and practical. The first part of this work was to overview theoretical aspects of marketing strategy in entering a foreign market. In this part the strategic planning for international marketing is being analyzed, target market selection and evaluation is done, the methods of entering a foreign market are being