Growth Strategies Case Study

Global Wine and Spirits Giant Pernod Ricard's Growth Strategies

OR

Abstract:

France-based Pernod Ricard S.A. though was a major player in alcoholic beverages but lagged behind the market leader Diageo in the wines and spirit market. Following the acquisition of Seagram in 2001 and Allied Domecq in 2005, Pernod Ricard grew from a local company to an international company. The stagnant domestic market and growing international demand, forced Pernod Ricard to make it big in wines and spirit market.

After the successful acquisition of Allied Domecq, Pernod Ricard aimed to become no. 1 player. Besides expanding into the growing markets like UK and US with its Premiumisation strategy, the company also aimed to explore the emerging markets of Asia with its decentralized approach. Despite a promising outlook, in terms of sales and market share, a shadow loomed over Pernod's future, with the retirement of Chairman Patrick Ricard in 2007 without an obvious family successor had put the company in a dilemma.

The case traces the journey of Pernod Ricard and highlights the organic and inorganic growth strategies of the company. The case explores the various strategies the group had adopted for its growth with its opportunities and challenges in store for the company. With all its efforts for expansion, would Pernod Ricard be able to realise its dream to be no. 1 before Patrick Ricard retired in 2007?

Pedagogical Objectives:

• To analyse the market entry and market penetration strategies in emerging markets
• To understand the competitive strategies and strategic shift of Pernod Ricard
• To study market leader and challenger strategies.

Keywords : Pernod Ricard; Business Strategy; Strategic Management; Mergers and Acquisitions; Organic Growth; Inorganic Growth; Market Entry Strategies; Market Development Strategies; Competitive Strategies; Growth Strategies Case Study; Globalisation; Market Expansion Strategies; Horizontal Integration; Alcoholic Beverages; Wine and Spirits; Champagne; Sparkling Wine; Allied Domecq; Seagram; Second largest wine and spirits company; Diageo; Decentralisation; Premiumisation; cross functional structure

Contents : 
Alcohol Beverage Industry
Wine Segment
Spirits Segment
Pernod Ricard SA
The Allied Domecq Acquisition
Fighting for leadership
Decentralization Strategy
Investing in key brands
Targeting emerging markets