Exporting Rezangyal Palinka To Cyprus Marketing Commerce Essay


In the last couple years HungExport made several researches on the drinking habits of the people of Cyprus. We discovered that there is a lack of good quality strong alcoholics beverages with a nice flavor of fruits. It made us realize the “Hungarian spirit” should be shown to the citizens of Cyprus and also the thousands of tourists visiting this amazingly beautiful island. We believe it would be a great business opportunity, which could increase the profit of our company sufficiently.

The Republic of Cyprus is a Eurasian island country in the Eastern Mediterranean. Due to its geographical endowment and calm weather the island is becoming one of the Mediterranean most popular tourist destination. From May to September thousands of vacationers visiting the island looking for relaxation and of course for having fun.

The population of the island was at the end of 2006 around 867,600 but this number is increasing. According to the latest IMF estimates, its per capita GDP at $28,381 is just above the average of the European Union.

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In the case of the population the older generation whose disposable income is larger is a much more significant number.

First we will focus on the older generation when we introduce the beverage, who has a more sophisticated taste of quality alcoholic drinks and willing to pay more to have a tasty fruit shot. If they seem to like our product we will focus on the younger generation whom does not willing to pay that much money for a shot but for the brand name. For that reason by the time we introduce the beverage to the younger generation we have to make sure we built up a high product image, since we will have no other palinka brand competitors in Cyprus.

The product we are planning to export is the Palinka. This fruited brandy is originated from Hungary and its history goes back to the XII century. According to a EU regulation only those beverages can be called “palinka” which has been made 100-percent from fruits or herbs indigenous grown in Hungary, and does not contain any additives and it also has to be produced in Hungary and its alcohol content is between 37.5% and 86% ABV.

The Brand “rezangyal” has been on the Hungarian market for many years now and its success is unstoppable. All their palinkas are produced in Hungary from the best quality of fruits. Their product scale is really wide but we first will try to introduce the “Rezangyal selection” which contains all of the traditional taste of palinkas. Including raspberry and pear palinka on fruit bed, barrique grape marc, apricot and matured apple palinka and the famous “honey” style palinkas.

We plan to sell it for 30-40 Euros per bottle depending on the quality and type of the palinka. First we don't want it to be available for everyone that's why we introduce it with a quite high price. After the demand increases, and consumers tend to like it, we will wider out our scales and sell not only our medium price range beverages but the cheaper ones and premium ones as well.

The product will be sold through little delicate stores where other high quality specialty beverages and foods are also available for the gourmand customers'. The beginning it will be only available in the main cities of the island, in Limassol, Larnaka and Paphos. After it raises the interest of people we will focus on the summer when we place little wooden “palinka houses” on the main, busiest pedestrian precincts alongside the beaches where other pubs and bars are also located. It is a nice place to stop and have a rest and a shot while tourists walking on the street at nights. At the palinka houses the logo of the brand should be visible from everywhere to make sure consumers identify palinka with the sign of the copper angel, the“Reznagyal”.

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We are planning to spend 50.000 Euros on promotion, which we know is a great amount but according to the researches we made and the future expectations of sales is a reasonable amount. Advertisements could be on the leader upper class woman and man magazines at the beginning and combined with articles about the history of palinka compared with other widely recognized alcoholic beverages. Approximately it would cost us around 10.000 Euros. Summertime around the palinka houses hiring young hostesses wearing uniform with the logo of the brand on it would be necessary and also place billboard around at the area. According to our preliminary calculations it would cost all together 20.000 Euros. I also recommend leaving and giving out flyers to the tourists during the day to make the palinka houses an attractive destination after diner time. The mood at and around these bungalows should always represent freedom, boldness and happiness. For achieving this mood, different shows should be play at every hour during the peek time of the busy summer nights. Hiring salamanders and snake charmers could draw the attention the palinka houses. It would cost and additional 10.000 Euros which also include the cost of a firework,which could be a fascinating start for all the shows.

To sum up, according to all the researches we made to understand the market for alcoholic beverages in Cyprus, it seems like it would be a great investment to export the Hungarian Spirit to Cyprus. The product is unknown yet in the island but could soon become very popular. The drinking habits of the citizens are suitable to introduce a new type of stronger type of fruity brandy. First we would like to target the older more sophisticated segment of the citizens. But later after the demand will rise we will expand our target market to the younger generation and also to the many tourists visiting the island each summer.

We would like to spend around 50.000 on the whole marketing process, which includes all the fees of the marketing director, her assistant and also all the advertising expenditures.