International Marketing for Beer - Case Study Example

Running Header: International Marketing for Beer Student’s Name: Instructor’s Name: Course Code & Name: Date of Submission: International marketing for beer Executive Summary Mikah brewers are an established Australian brewing company that whose aim it to provide high quality beer. We are intending to start a new international market in France. We are in the process of penetrating one of rapidly growing economies. We shall carefully position our products through producing products that are of extremely high quality that will ensure the customers are satisfied. We shall also be supported by community based services to the community. Our major goal shall be establishing and strengthening our trade license which shall be our responsibility towards the community in which we shall be functioning. The company intends to internationally market its products in France. Our initial plan is to market stouts, ales and premium larger. These products shall be sold in different containers that ranges from 250 ml to 750 ml of beer. These products will then be distributed to remote areas which is very important market for good quality beer. The major findings on this market are Kronenbourg is the major beer selling company in France with about 90 % of the total market share (Spilker, A & Brettel, M 2011). As a result the market is partly monopolized. Kronenbourg focuses on urban areas in marketing its products which makes it impossible for the company to focus on the rural and remote areas. The economy of France has been progressing well for the past years. This creates a good environment for marketing Mikah products. The quality of beer produced by the competitors cannot beat those of Mikah. This will make us have more competitive edge during the marketing of our products. Among the major recommendations we have are: The company should start marketing its products in areas that currently are neglected by the existing market. Low completion in these areas will make it possible for the company to adapt. The company should thoroughly engage the societies and communities to promote and market its products. Through this the company shall quickly integrate with the community which shall set a good platform for the business to expand. The company should consistently follow up or have a mechanism that constantly tracks give feedback on how the company is progressing in the new market. This will enable the company to promptly correct the mistakes it might be making and improve on areas that needs improvement. As a result the company shall rapidly adapt to the market. There might be an established beer manufacturing company that may begin to target our market niche. We therefore need to be committed in the work we shall be doing of ensuring that we strive to very high quality. Table of Content Executive Summary 2 Table of Content 3 1.0 Introduction 5 1.1.Objectives 5 1.2. Company summary 5 2.0 Situation analysis 6 2.1. PESTLE analysis 6 2.2. Market analysis 7 2.3 Industry analysis 8 2.4. Competitor analysis 10 2.5 Company analysis 11 2.6Implications of situation analysis 11 3.0. SWOT analysis 12 3.1.Strengths 12 3.2.Weaknesses 12 3.3.Opportunities 13 3.4.Threats 13 3.5.Implications of SWOT analysis 13 4.0 Objectives 14 4.1 Mission statements 14 4.2 Generic Business Strategy 14 5.0Marketing strategies 15 5.1. Market selected 15 5.2. Market entry mode 15 5.3. Consumer behavior 15 5.4. Market positioning 16 5.5. Marketing mix 17 5.6. Product 17 5.7. Pricing 17 5.8. Distribution 17 5.9.Promotion 18 Conclusion 22 References 23 1.0 Introduction Mikah breweries currently produce the highest quality beer in Australia. The company is currently producing ales, stouts and bitters, low alcohol beers, premium lager, specialty beers and standard lager. All these products are unique which have enabled us to excel in the local market. Our intention to seek international market on these products will provide us with yet another opportunity to produce high-quality products that are cost effective. 1.1. Objectives To provide means through which Mikah breweries internationally market its products internationally in France. To come up with strategies through which our products shall be produced and marketed in France. 1.2. Company summary Mikah Breweries is a new company that provides quality alcoholic drinks in Australia. Mikah has witnessed tremendous growth hence dominating the local market and now wants to explore international market in France. It intends to focus on the brewery and the brewing process in the foreign market. The brewery will consist of modern stainless brewing vessels. Stakeholders shall be able to observe the process of brewing during the day and be educated on the brewing process during the day. In the international market, Mikah shall focus on two major markets: The working class: The class consists of the majority people in the society who ranges from the minor to lower level administrators who appreciate beer of high quality. The corporate class: The class consists of people in the middle and top management positions who would appreciate beer of high quality. As Mikah grows and expands in France, it shall take on the people and expand to other related markets. It shall also look for other additional markets through establishing good representations and relationships with the appropriate groups with same strategic vision. 2.0 Situation analysis 2.1. PESTLE analysis Politically, France has always embraced anything that brings quality to the lives of the citizens. The structure of governance in this nation is based on fulfilling the peoples need and any organization that supports this enjoys the support from the government and the citizen (Putz 2012). Mikah breweries aim to provide quality beer at competitive price. This shall definitely attract the support from organization, citizens and the government agencies that aim to improving the quality of life of the citizens. Due to the commitments of the French governments to improve the lives of its citizens, France has been improving in all most sectors of the economy (Dimitriou 2011). Although the population has been increasing in the past few years, the governments have never failed to put strategies that ensure the citizens reach most of the basic facilities. This provides a perfect environment for Mikah breweries to grow. Socially, alcohol is only allowed for mature people in the society. It is seen as a form of enjoyment which is allowed to mature people that can be able to control themselves. Almost all of the social factors surrounding the rules and regulations of alcohol sales and consumption are similar to those in Australia. It shall therefore be possible for Mikah to adapt to the new market socially without creating immoral perception to the host country. Mikah breweries shall strive to implement and maintain the most efficient and latest assembly technology in order to ensure that quality beer is brewed alongside maintaining low cost of production which shall in the long end benefit the consumer. Keeping updated with the development in technology shall ensure that we gain and remain competitive in the market (Doole & Lowe 2008). To legally sell alcohol in France, you need licenses from the government that appertain quality and payment of taxes. Mikah shall find it easy to acquire both licenses since it exceeds the minimum legal requirements. For the last few months, abnormal weather has been affecting most parts of France, especially during the summer season. This has resulted to extraordinarily heavy rainfall, low temperature and severe flooding. This is likely to have a very negative effect on our first financial performance since transport and consumption of alcohol may decrease. 2.2. Market analysis At large scale, the market research shows that the brewing industry is changing as it grows (Wind, Douglas & Perlmutter 1973). There is a developing tread towards more attractive and appealing brews as the consumers are either moving to urban areas due to urbanization or are satisfied by the brews in the local area. According to a Schutze, M etal. (2011), most of the people in the rural areas are satisfied by the existing brews in their areas because they lack access to higher-quality beers. In the newer generation consisting of those in the urban areas and mostly the executives and the educated, the people are looking for attractive beer that goes with recognition of their status. This market is not only selective of the image of the beer, but ii is also quality sensitive. As a result there is an emerging generation consisting of individuals whose beer is dictated by quality and packaging for the product line to be popular. The private sector is being recognized as a very important part of creating employment and opportunity for training as well as realizing the goal of the nation of diversifying the economy. France is also increasingly becoming a tourist destination. Due to these, we foresee demand of our products mostly in lodges and resorts where we shall promote it. As we undertake our professional activities in business, we can foresee that it shall not be difficult to be accepted in the market as long as we deliver quality goods in time and at competitive prices. 2.3 Industry analysis France is experiencing a considerably high growth in economy today. The major things that have brought this growth is the relaxation of policies concerning foreign exchange and the economic policies that are aimed toward attracting more foreign investors in the country. The monitory and fiscal policies by the government are aimed towards growth maintenance with social justices who have largely been contributing towards this growth. The current emphasis and drive by the government on aim to diverse the industrial is directed away from mineral sector (Adams 2006) which is presently a very good opportunity for Mikah breweries to contribute variably alongside achieving its goal. This shall result in enactment of modernized techniques of production and knowledge transfer. Having carried a comprehensive and thorough market research, we realized that there was urgent need for manufactures to focus on producing affordable brew that satisfies the customers’ needs. Although there are already existing breweries in market today, some which have existed for a long time, we believe that there is still market for us that focus particularly on low and medium earning individuals. We shall provide extremely high quality substances, something that shall not be overemphasized internationally based on current globalization drive. The marketing mix of our beers have been strategically and carefully put together to position them in the competitive market. We are aware of the fact that our operation is a market already dominated by monopoly company structure. We are intending to ensure that our strategy of marketing shall consider the importance of the fit between our benefits and product capabilities and the market we target so that we can develop a strong sustainable position of competition in the market. With this in mind, we are intending to come up and implement a niche marketing strategy as we focus on certain market targets, particularly in the view of Mikah breweries dominance on the market. Our start up overall target market is 10% of the local market. The share shall vary with the actual products with Standard Larger having a bigger share than the other beers due to its uniqueness. We embrace the fact that entering an already dominated market shall not be a bed of roses more so because the market is monopolistic. We therefore intend to carry out an aggressive strategy of marketing that shall be supported by other functions of the business. These projections have influenced us to decide on entering the brewing industry. 2.4. Competitor analysis Identifying the competition based on companies that share the same needs as we have, we have few company competitors in our main line of production, although they have dominated the market for a long time. It shall therefore be vital for us to differentiate our products strongly from those of other businesses. In general scale of competition, it comes in several forms: The strongest competitor in terms of companies that have the same needs Kronenbourg, which is argued as the market leader. The fact that Kronenbourg has been in market for a very long time and also partnered with Scottish & Newcastle Brewers of Ediburg has raised its financial, human resource and technological levels significantly. Our major advantage in the competition with Kronenbourg is that we shall be accessible even in most remote areas. We intend to take a new channel of distribution vigorously while at the same time we put in place a marketing strategy which is aggressive. Moreover, our alliances will also assist us in attaining our objectives and goals. The other traditional brewers and manufactures will also be part of our competitors. This shall include brewers at local bars and homes. The key advantage to them is that they have strong access to the remote and local areas and good knowledge of these areas. However the product they sell is not of high quality which makes us to be at higher competitive advantage. Other large scale manufactures of beer are marketed in supermarkets and are advertised extensively (Odeme Matiri & Mishep 2012). In this case we intend to come up with a strategy that shall integrate various elements of promotion so that our beer shall be well known, appreciated and bought on the market. The company has been using various strategies enforce good relationships and connections with its customers. It has been using romantic and beautiful movie scenes in its logo. It has also been using most circulating magazines and newspapers in the country to advertise celebrities. Also it uses designers to market Mikah in radio shows. 2.5 Company analysis A Mikah brewer is a company that dreams big and aims high. It has two objectives: to unlock the leadership in beer industry and make Mikah a reality to everyone through increasing global partnerships, employing committed and skilled people and relying on values that are emotional to Mikah products. In Australia, Mikah is the most efficient company since it has the expertise and large capital invested in mining, exploration and distribution. It is responsible for 78 % of total beer sold in Australia. 2.6 Implications of situation analysis Based on the fact that we are entering a new market, it shall take considerable effort to establish ourselves in the new international market. The key driving factor is our technological growth and quality products that our competitors cannot beat. 3.0. SWOT analysis The market we are in is lucrative though the economy is growing rapidly. We therefore can foresee abilities and strengths that will enable us to respond quickly to whatever the market shall require us to as well as provide a very quality brew in this growing market. Additionally, by using quality management and aggressive marketing strategies, we intend to become well established, respected and a known entity in the industry. Our leading major employees have a very thorough and wide knowledge and expertise of manufacturing local beer. This will enable us to penetrate the market significantly. However we also appreciate our weaknesses of being medium in size and having very no experience at all in our new market. As a result, the threat of the industry having a new competitor will definitely not be welcomed by our competitors. In summary, the following are our strengths, weaknesses, opportunities and threats. 3.1. Strengths Aggressive and well focused complain of marketing with clear strategies and goals Establishment and ability to maintain ourselves with strong capital base Strategic market segmentation with the ability to maintain the strategies. We have a diversified market for our products. We have variety of products which ensures we do not depend on one particular product or market. Our skilled personnel use combination of skills and dictatorship. The directors always strive to jointly develop the business strategies and the long term plans. They have a wide experience in the business products and also know how to make the ends meet. 3.2. Weaknesses Compared to our competitors, we lack reputation Introducing new practices and personnel in the organizational practices especially the people who have never worked together shall present a challenge to the company. We have limited amount of resources compared to the major industry competitors Lack of distribution channel that is clear With the internet in place, we shall experience technological challenges. 3.3. Opportunities The current new generation consists of families and individuals that greatly appreciate packaging of products in attractive ways. The current drive by special institutions and the government in Australia to export locally manufactured products. We are in a special niche: The appreciation of brew that is of high quality, refreshment and enjoyment are all integrated in our products. Sales and marketing through the internet. Foreign firm are increasing that are looking for a market to penetrate. 3.4. Threats The current market growth is likely to result in saturation of the market through completion. Among the factors that shall contribute to the increase in competitions are 1. There is already an existence of competition 2. The existing and already established companies would come up with new marketing tactics and strategies. 3. An established mass market for companies which integrated across all exports and imports. This market totally controls the supplies and the products that are being sold on the market. 4. Price increases by the foreign suppliers that cannot be tolerated may occur. 5. There is possibility of other companies starting up as a result of the health economic growth being experienced nationwide. 3.5. Implications of SWOT analysis The international market we have targeted is promising. Though there are challenges that we shall encounter in the process of establishing ourselves, the combinations of our strengths and opportunities so much exceeds the threats and our weaknesses. We however need to develop strong organizational approach as we explore this new market so that we achieve the desired results satisfactorily. 4.0 Objectives Putting customer first in all our activities Promoting good relationships between the company, customers and the stakeholders 4.1 Mission statements To give super quality brews in all our levels of production that are prepared with detailed hygiene. To satisfy our stakeholders and customers 4.2 Generic Business Strategy Mika brewers intend to establish a brewing plant in Angers. We shall order the raw products both locally and as well as from our existing suppliers in Austrilia. The major raw material shall be barley. We shall then engage our high technological plant to produce quality beer. We shall then distribute it to different parts of the country using our marketing team. 5.0 Marketing strategies 5.1. Market selected Our target international market is French. The market has fewer competitors compared to other international markets. With our highly technological beer producing plants and systems, it shall be easy for us to penetrate this market. 5.2. Market entry mode Since we are relatively a new company, we shall start by focusing on specific products to our customers. Initially, Mikah breweries will focus on the remote and markets that have been considered inaccessible by the large market products. As a result, the kind of growth that shall be pursued initially shall be that of organic growth mostly due to the limited resources and the need for us to instill confidence in our products. The target customers shall include the decision-makers in the supermarket and the retail chains who often recommend or order on behalf of whole organization. The aim of doing this is to obtain the initial order that shall pave way for us to fully satisfy customers from that moment onward. 5.3. Consumer behavior We shall need to get the feedback from our customers on areas that we are doing well and those areas that we need to improve concerning satisfying them.Our intention shall be to use our employees who shall carry out the satisfaction surveys that shall enable us to shape the business. The initial plan is to make sure that every employee understands the goal of our company in focusing on the customer and also to make them proud of the work and be able to work in a team. This shall encourage and enable the employee to become entrepreneurial and responsible with our customers. In addition they shall unify the staff as they focus to fulfill the values of the company. Importance developments and notices shall be continuously communicated to the management so that they are kept updated on the developments and also promoting the sense of oneness and belonging within the organization. We shall also encourage our employees to put forward their suggestions on what they think might be of importance in matters regarding the improving any part or function of the company. As a result we shall operate on an open door philosophy. This culture shall promote creativity and innovativeness and as a result this shall lead to job enrichment and satisfaction (Langhe, etal. 2010). 5.4. Market positioning Our strategy of marketing shall be based mainly on ensuring that the right product is available to the target customer. We shall also ensure that the price of our products takes the consideration of the budget of the people and that the people shall appreciate our products and know that they exists and exactly where to find them. Our market position shall bring a sense of quality to the mind of the customers. Every promotion, publication and picture shall be geared to fulfilling this objective. 5.5. Marketing mix As experienced beer brewers, the market mix that we have created shall address the opportunities and the problems that Mikah brewery is to face in the new market. The mix is intended to face the current problems as well as those that might arise in future. 5.6. Product The general products of Mikah breweries are already the best quality in Australia and for this we have no intention of changing their basic products. However, we are suggesting that due to the ever changing technology which is at our disposal, we shall imprint a new logo for the foreign market that shall enable us to be viewed with an eye glass. 5.7. Pricing We shall not intend to be changing the price of our products since Mikah products are subject to the condition of the market and contracts that we cannot be able to alter. 5.8. Distribution Our distribution system shall go hand in hand with the production process. Our production process shall strive to get excellent services alongside manufacturing of quality, safe products. The production process shall be undertaken through the engagement of the modern techniques of production that uses up to date technology of assembly. This shall also result to low cost of production that shall be attained by the company. We are also intending to ensure the suppliers that we shall engage are reliable and have commitment so that we do not let down the final consumer in terms of time of delivery and the quality of the product. So that we can improve the production, in our plan we ate intending to reduce the wastes and the duplication in our breweries through streamlining the administrative functions and installing and promoting a culture of business that shall focus on teamwork rather than the individual production. Through this understanding, we shall be able to optimize the production process still using few resources. The supplier of the raw materials shall be obtained in Australia. However as the market grows we intend to engage French suppliers so that hopefully if we shall get them in fair prices. Our major raw material is barley which we hope to source from the local community and the commercial farmers. We shall avoid the middle men and other intermediates so as to reduce the high cost. This shall in turn benefit the customer who is the end user of our product. The major advantage of this is the fast payments and low risk of payment default. We shall use the economies of scale to enable us to maintain production and low input cost. As we progress, we intend to hire our own farms so that we glow the raw materials ourselves. Again this shall significantly reduce the cost of the raw material. As a result, we are intending to establish a good structure with our suppliers which shall in the long end benefit our business relationships. We intend to work very closely with our suppliers so that we maintain uninterrupted deliveries. 5.9. Promotion The base of our promotion strategy shall be to inform the potential customers that we are in existence as well as making the right information availed to our target customers. We are targeting different people, therefore, our targets involves different segments. The message and promotion tools may slightly vary to match those of the intended market; however we intend to make sure the message is delivered home. In all cases the marketing shall convey the sense of being refreshed, quality and health in every publication, every picture and every promotion. Promotion campaigns shall be geared towards promoting the aspect of sharing beer and customers drinking our beers in groups. Our activities of promotional shall be focusing on driving the overall company strategy persistently, developing the internal structure consistently and be able to prepare it to confront any changes that may arise. In this kind of market we do not want to be seen or produce products that are second rated or make our products look less than those of others. We shall also leverage our presence using high quality brochures. We also intend to use other literatures of sale that includes pens, stickers and complementary slips. Since our products are in the introductory phase in the market, the promotional expenses shall be high so as to generate the customer attention and knowledge of our products. We are intending to make ourselves known through the following methods Advertisement How advertisement is done determines how well it shall sell (Melewar, T & Vemmervik 2010). With regard to the fact that are intending to enter in a market that is dominated by Kronenbourg breweries that has an approximately 90 % of the total market share, we are intending to undertake a very extensive form of advertisement on our products alongside our brand name or the company name. The reason for doing this is to make it known and bring awareness of our presence in the market place, which we hope shall be converted into market shares. There is therefore the need of ensuring that our products shall be constantly available in the market and shall be consistently be of high quality. Since we are committed to giving products that are of unquestionable quality and at the same time is able to meet the needs and the expectations of the customers. The company believes in advertising and promoting its products in an ethical and honest manner in a way that respects the society and customers’ values. We shall the French business and telephone directories to place our contacts where everyone in the country can be able to know where to find us. We shall also use the local newspapers whereby we shall be placing special editions concerning our company. Events Since there are many firms cropping up in the country, we need to establish ourselves in a way that we shall be known. The company aims to be participation in local trade shows and the quality taste tests. This shall enable us to increase the awareness of our products and also help our specific products to gain recognition. An example is when our products is chosen to be the best at a particular taste test. The company shall be able to take advantage of this in the promotions and campaigns which will be an added advantage of image and reputation to our products. Moreover, this would add pride and confidence to our employees since the products they market shall be given recognition of high level. Such communications involving achievements gives customers the feeling of relying on our products which will in turn build strong customer loyalty. We also intend to participate on exhibitions which shall be a chance for us to display our products. Through this we shall also be able to exchange ideas, technologies and contacts which shall serve as a good ground for creating a healthy relationship and partnerships of trade. Public relationship Since we are new on the market, we shall organize events with the aims of introducing ourselves to the market. We shall invite senior officials for example members of the top government officials, potential customers, and other stakeholders who will help us to penetrate in the market. More to this, we shall place features and stories in newspapers and magazines to enable us to keep the stakeholders updated on our latest developments and also to increase awareness. We shall also engage ourselves in major festivals which shall enable us to gain appreciation and recognition of our company in the surrounding communities. Our efforts towards assisting the community services shall show that our company has the community at heart which shall contribute significantly towards us establishing a reputable image and good relationship. We shall engage in projects like building home for the under privileged in our effort to plough a long term relationship within the society in which we shall be operating in. We also intend to offer educational scholarships for the disadvantaged people in the society so that we offer a more promising life to the young people in the community. We are also intending to use road shows in various parts of the remote areas through giving out bags, caps and other prizes to those individuals who shall be answering questions concerning our products correctly. More to this, this shall enhance the name of the business and its products to be better known by the communities in these areas. We are very confident that for these road shows to be successful, they must be well planned and also encourage the participation of the community. The tours shall also be arranged with the inclusion of interested stakeholders such as college students. The major reason for this is to increase the awareness of our products and facilities as well as showing confident in our standards and the production process. We hope that visitors shall be able to leave confident and positive impression of our products. We shall also include prospective order-takers and order takers in our tours. Conclusion With Mikah breweries dominating most of the local market, marketing its products internationally in France would give it a good ground to start exporting its products in other international countries. To major challenge in this new international market is its major competitor Kronenbourg which have dominated the market for a very long period of time. However due to the quality of the products produced by Mikah industry and the aggressive marketing strategy that we shall implement our products shall definitely find its way and bring a significant impact in the French market. This report has looks on the way how Mikah breweries have been able to develop in the past years. It then looks on to various strategies that it needs to implement in order to penetrate into an international market in French. It also looks into various challenges it might encounter and proposes the means through which the company shall react to these challenges. References Adams, J 2006, ‘Beer markets in Germany and the United States’, Journal of Economic Perspective. Vol. 20, no. 1, pp. 189-205. 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