The document summarizes marketing strategies for foreign companies entering China's beer market in the 1990s. It notes that foreign brewers like Heineken and Carlsberg entered China but suffered major losses as Chinese consumers preferred cheaper local brands. The document then analyzes reasons for the foreign brewers' failure, including misunderstanding market dynamics, overestimating premium market size, and not accounting for local brand loyalty. It concludes that recent successful reentries involve foreign brewers acquiring Chinese brands for mass distribution while maintaining international premium brands.
Anheuser-Busch and Harbin Case Study - Part 1 Industry AnalysisRomain Corraze
The document provides an overview of the Chinese beer industry including:
1) It is the largest beer market in the world but consumption per capita is low and there is potential for growth.
2) Porter's Five Forces analysis shows the market has low barriers to entry and no dominant brewers despite regional powers.
3) Success requires understanding price-conscious customers, political risks, and targeting regions like east and south China with higher incomes.
This document provides an analysis of the beer industry and a case study of Adolph Coors and the Coors brewing company. It begins with an introduction and overview of the brewing market evolution since World War II and the history of Coors. It then analyzes the political, economic, social and technological environment. Following this, it discusses market segmentation, targeting and positioning for Coors. It also analyzes Porter's Five Forces and provides a SWOT analysis for both Coors and Anheuser-Busch. The document concludes with a recommended strategy section.
The Porter 5 Forces model summarizes the beer manufacturing industry as having:
1) Low threats of new entrants due to high capital costs required and government regulations.
2) High bargaining power of buyers as disposable income affects preferences for premium vs. lower priced brands.
3) Low threat of substitutes due to customer loyalty, though advertising restrictions make loyalty harder to achieve.
4) Low bargaining power of suppliers as products are inexpensive and numerous alternatives exist.
5) High intensity of rivalry among competitors despite Kingfisher being a large supplier.
This document provides an introduction and background for a dissertation study comparing television advertising for beer brands in Europe, North America, and the UK. It acknowledges those who supported the author's dissertation work. It then presents an abstract that overviews the study's goals of understanding how global beer companies communicate brand images across different cultural markets through television commercials. The introduction discusses the debate around standardized vs customized advertising approaches for global brands and the need to understand successful themes used in key markets to build global beer brands.
Budweiser, Heineken, and Corona Extra employ different brand strategies despite operating in the same US beer market. Anheuser-Busch InBev owns Budweiser and uses a house of brands architecture with Budweiser as its flagship brand. Heineken operates Heineken USA to import and market Heineken brand beer. Grupo Modelo owns Corona Extra and uses a branded house architecture with Corona at the center. While the beers are similar products, their brands have distinct positions - Budweiser targets the mass market, Heineken targets social drinkers, and Corona targets a relaxed, beach lifestyle. Through positioning and communication, the brands differentiate
The document provides a strategic growth executive summary for a beer company operating in China. It analyzes the industry, formulates a strategy, and recommends a Phase I strategy. Key points include: conducting an industry and environmental analysis; drawing scenarios around the industry life cycle; focusing on the premium and economy segments in eastern and southern China; pursuing alliances and acquisitions; and managing risks from competitors, authorities, and cultural differences. The recommended Phase I strategy is to leverage resources and competitive advantages to dominate the eastern and southern markets through a dual brand approach and cost leadership in the economy segment.
Benjamin Franklin's quote about beer suggests it makes people happy. The document discusses the beer industry and its history. It provides an agenda covering topics like the history of beer, emerging and developed markets, production margins, growth opportunities, and M&A activity in the industry. The beer market is large and consolidated, with the top four brewers dominating 50% of global beer sales.
Heineken is one of the world's leading beer brands with over 130 years of history. It aims to grow sustainably through innovation, efficiency, and focus on markets it can win. It faces challenges from industry maturation and consolidation. Heineken can grow in the US by increasing advertising of brands like Tecate and Dos Equis to Hispanics and young drinkers. Developing lower calorie beers also taps an expanding market segment. Global expansion through acquisitions maintains competitiveness.
Anheuser-Busch and Harbin Case Study - Part 1 Industry AnalysisRomain Corraze
The document provides an overview of the Chinese beer industry including:
1) It is the largest beer market in the world but consumption per capita is low and there is potential for growth.
2) Porter's Five Forces analysis shows the market has low barriers to entry and no dominant brewers despite regional powers.
3) Success requires understanding price-conscious customers, political risks, and targeting regions like east and south China with higher incomes.
This document provides an analysis of the beer industry and a case study of Adolph Coors and the Coors brewing company. It begins with an introduction and overview of the brewing market evolution since World War II and the history of Coors. It then analyzes the political, economic, social and technological environment. Following this, it discusses market segmentation, targeting and positioning for Coors. It also analyzes Porter's Five Forces and provides a SWOT analysis for both Coors and Anheuser-Busch. The document concludes with a recommended strategy section.
The Porter 5 Forces model summarizes the beer manufacturing industry as having:
1) Low threats of new entrants due to high capital costs required and government regulations.
2) High bargaining power of buyers as disposable income affects preferences for premium vs. lower priced brands.
3) Low threat of substitutes due to customer loyalty, though advertising restrictions make loyalty harder to achieve.
4) Low bargaining power of suppliers as products are inexpensive and numerous alternatives exist.
5) High intensity of rivalry among competitors despite Kingfisher being a large supplier.
This document provides an introduction and background for a dissertation study comparing television advertising for beer brands in Europe, North America, and the UK. It acknowledges those who supported the author's dissertation work. It then presents an abstract that overviews the study's goals of understanding how global beer companies communicate brand images across different cultural markets through television commercials. The introduction discusses the debate around standardized vs customized advertising approaches for global brands and the need to understand successful themes used in key markets to build global beer brands.
Budweiser, Heineken, and Corona Extra employ different brand strategies despite operating in the same US beer market. Anheuser-Busch InBev owns Budweiser and uses a house of brands architecture with Budweiser as its flagship brand. Heineken operates Heineken USA to import and market Heineken brand beer. Grupo Modelo owns Corona Extra and uses a branded house architecture with Corona at the center. While the beers are similar products, their brands have distinct positions - Budweiser targets the mass market, Heineken targets social drinkers, and Corona targets a relaxed, beach lifestyle. Through positioning and communication, the brands differentiate
The document provides a strategic growth executive summary for a beer company operating in China. It analyzes the industry, formulates a strategy, and recommends a Phase I strategy. Key points include: conducting an industry and environmental analysis; drawing scenarios around the industry life cycle; focusing on the premium and economy segments in eastern and southern China; pursuing alliances and acquisitions; and managing risks from competitors, authorities, and cultural differences. The recommended Phase I strategy is to leverage resources and competitive advantages to dominate the eastern and southern markets through a dual brand approach and cost leadership in the economy segment.
Benjamin Franklin's quote about beer suggests it makes people happy. The document discusses the beer industry and its history. It provides an agenda covering topics like the history of beer, emerging and developed markets, production margins, growth opportunities, and M&A activity in the industry. The beer market is large and consolidated, with the top four brewers dominating 50% of global beer sales.
Heineken is one of the world's leading beer brands with over 130 years of history. It aims to grow sustainably through innovation, efficiency, and focus on markets it can win. It faces challenges from industry maturation and consolidation. Heineken can grow in the US by increasing advertising of brands like Tecate and Dos Equis to Hispanics and young drinkers. Developing lower calorie beers also taps an expanding market segment. Global expansion through acquisitions maintains competitiveness.
The document provides an overview of Anheuser-Busch InBev's history, financial performance, industry analysis, marketing strategies, and recommendations for global expansion. It traces AB InBev's origins to 1852 and highlights its growth into the largest brewery through acquisitions and innovative marketing. The analysis finds opportunities in expanding experiential marketing and leveraging rising beer consumption in Asia-Pacific markets through premium brands and production expansion in high-growth countries.
- Anheuser-Busch began in 1860 as a small brewery in Missouri and introduced America's first national beer brand, Budweiser, in 1876. It grew to become the largest brewer in the US by 1957.
- In 2004, it merged with Belgian brewer InBev to form Anheuser-Busch InBev, which is now the leading global brewer and produces over 200 beer brands worldwide.
- Anheuser-Busch InBev has a strong presence across North America, Latin America, Western Europe, Eastern Europe, and Asia Pacific, with its most popular brands including Budweiser, Stella Artois, and Beck's.
This document provides an overview of Grupo Modelo's international marketing strategies for Corona beer. It includes an analysis of the company's current situation, vision, mission, industry, key performance indicators, competitors, financial statements, PESTEL analysis, Porter's 5 forces model, SWOT analysis, 7P's of marketing, market segmentation, strategies, positioning, and recommendations. Grupo Modelo is Mexico's largest beer producer and Corona is the top imported beer in the US. The document outlines Corona's "fun in the sun" marketing campaigns and beach-themed positioning as an escape from everyday life.
Winning Shelf Space: Private Labels or FMCG Brands?Aranca
Higher margins provided by the Private Labels in comparison to established FMCG brands have augured well for the growth of Private Labels. This Aranca whitepaper is an effort to delineate the emergence of Private Labels and its impact on branded products in the FMCG sector.
The global wine market faces challenges of oversupply, fragmentation, and changing consumer behavior. Global wine production has increased from 25 billion liters in 2000 to the same level in 2012, coming from more sources. The wine industry is fragmented with no concentration in production or offerings. Consumer behavior is also fragmented, with more people drinking less alcohol. Opportunities exist in emerging markets, online sales, and on-premise consumption. The wine industry must adapt to growing diversity in global consumption trends.
Anheuser-Busch uses three main strategies for global expansion: 1) Cooperative exports with local distributors in markets like Mexico and Central America. 2) Licensing agreements with major brewers in large markets like Japan, South Korea, and Ireland. 3) Equity partnerships where it takes stakes in leading brewers, such as its 37% stake in Mexico's Grupo Modelo. While achieving success, A-B faces challenges of high prices in low-income countries, increasing beer consumption, and streamlining fragmented marketing across Latin America.
This document discusses strategies that global spirits brands use to localize their marketing campaigns in emerging markets like China. It provides examples of how Diageo created ads for the Chinese market that depicted extreme golf shots to appeal to local consumers. The document also examines how consumption habits vary between countries, with Chinese consumers having different segments and Latin American consumption being lower on average than Europe and the US. Globalization of some spirits depends on market demand and skills to expand successfully. Scotch whisky is seen as premium due to its strict regulations and maturation process only occurring in Scotland. Western brands pursue localized strategies in China, like custom ads that fill in cultural gaps, to succeed globally.
Wrigley has been successful in China through various marketing channels. It examines Wrigley's history since 1891 and how it has expanded globally. It discusses the confectionery market and Wrigley's strengths as the largest gum company. Opportunities exist in China and Russia for double-digit growth, while competition from Cadbury and tax threats present challenges. Marketing strategies include promoting dental benefits, new flavors, and integrating with agencies.
Coors Beer Case study on Corporate CommunicationNinitha Rao
The document presents a case study about Coors Beer's media relations problem with the AFL-CIO in 1982. The AFL-CIO had conducted a 10-year boycott against Coors due to labor disputes. Coors believed the boycott was based on untrue information. When CBS's 60 Minutes planned an investigation of Coors, it presented an opportunity for Coors to address the negative publicity. Coors developed a strategy to prepare for media interviews, conduct research, and handle negative news effectively. The goal was to use the 60 Minutes segment to set the record straight about labor issues and counter the AFL-CIO campaign. The boycott ultimately ended in 1987 with an agreement allowing union organization at Coors plants.
This document provides an analysis of Procter & Gamble (P&G) and Coca-Cola's entry into the Russian market following the collapse of the Soviet Union in the early 1990s. It discusses the benefits and risks of the Russian market at that time. Both P&G and Coca-Cola recognized the large potential of the Russian market but also faced significant political and economic risks and a lack of infrastructure. P&G established a joint venture and distribution network to overcome risks, while Coca-Cola used foreign direct investment and alliances with local companies to gain government support and negotiate tax exemptions as it worked to establish production and distribution. The document examines the strategies and structures used by each company to successfully enter
Billabong - International Business Case StudyOlivia Duncan
Billabong is an Australia-based wholesaler and retailer of surf brands like Billabong, Element, and RVCA. It operates 562 retail stores globally and generates most of its revenue from the Americas. While the Australian apparel retail industry saw declines in 2011, low-moderate growth is projected through 2018. As most of Billabong's sales occur outside of Australia, fluctuations in the exchange rate between the Australian and US dollars significantly impact its profits.
This document provides an overview of international trade and the dynamic global environment. It discusses several topics:
1) The establishment of world trade following WWII and the importance of balance of payments and protectionism.
2) The various types of trade barriers such as tariffs and nontariff barriers used by countries.
3) International organizations that shaped global trade such as GATT and the World Trade Organization, as well as the IMF and World Bank.
The CSD (carbonated soft drink) industry is dominated by two major players, Coca-Cola and Pepsi, which have high brand identity and reputation. The industry has high barriers to entry due to large capital requirements and faces strong competition between the major brands. Threats of substitution are moderate as customers have many beverage options but low inclination to switch brands. Supplier power is weak due to many ingredient providers, while some large buyers have bargaining power over the brands. The bottling industry serving CSD brands also has high concentration among a few players and high costs of entry.
This document provides an overview of international trade barriers and the dynamic global environment. It discusses different types of trade barriers countries employ like tariffs, quotas, embargoes and standards. While trade barriers aim to protect domestic industries and jobs, they can also decrease total world output and limit variety. The document also outlines benefits of free trade like increased specialization and access to larger markets, though free trade may negatively impact some domestic producers and jobs. Overall, it presents perspectives on both free trade and barriers to international trade.
Luxury goods sector and Consumer goods sectorMidhun Abraham
The document compares the luxury goods sector and consumer goods sector. It defines luxury goods as products with a high price premium, rare materials, and craftsmanship. The luxury goods market is characterized by globalization, consolidation, and diversification. Consumer goods are end products for average consumers like food and clothing. The consumer goods industry depends on advertising, retail outlets, and brand differentiation. Both sectors face challenges like changing consumer preferences, economic conditions, and supply chain issues. Opportunities exist in tapping new markets, digital channels, and meeting needs of various demographic groups.
The document discusses several key aspects of global marketing:
1) It identifies various ways for firms to enter global markets, from low-risk options like exporting to higher-risk/reward options like direct foreign investment.
2) It describes the external environment facing global marketers, including factors like culture, economic conditions, political structures, and natural resources in foreign countries.
3) It explains the importance of adapting the global marketing mix of product, price, place, and promotion to different country conditions in order to succeed internationally.
This document provides an overview of the global beer market and Porter's Five Forces analysis of the beer brewing industry. It notes that the beer market generates over $688 billion annually and discusses the major players. A Porter's Five Forces analysis is then presented, analyzing the threat of new entrants (medium risk due to barriers), rivalry among existing competitors (neutral level except intense among top 4-5 brewers), bargaining power of buyers (distributors have most power, consumers have least), bargaining power of suppliers (low due to many options and low switching costs), and threat of substitutes (wine, liquor, and malt beverages posing a serious threat).
3 Export Secrets the Fortune 500 Doesn't Want You To KnowShipwire
Three Export Secrets the Fortune 500 Doesn’t Want You to Know.
A special report on successful international product sales.
Applying these three export secrets to your business can jump start your entry into the international marketplace with less risk and more success.
Export Secret No. 1: Globalize Your Supply Chain
Export Secret No. 2: Flex the Power of Local Connections
Export Secret No. 3: Try Before You Buy
Heineken aims to accelerate sustainable growth while improving profitability. It faces challenges from industry consolidation and losing US market share. A SWOT analysis found strengths in global brands but weaknesses in appealing to younger drinkers. Solutions include increasing advertising toward Hispanics and promoting lower-calorie beers. Recommendations are to boost advertising, vertically integrate, diversify, and develop low-carb beers and new dispensers.
Anheuserbusch And Harbin Case Study 1205884199971242 4darrin_mcardle
The document provides an overview of the Chinese beer industry including:
1) It is the largest beer market in the world but consumption per capita is low and there is potential for growth.
2) Porter's Five Forces analysis shows the market has low barriers to entry and no dominant brewers despite regional powers.
3) Success requires understanding price-conscious customers, political risks, and targeting regions like east and south China with higher incomes.
Market Research Report : Beer Market in China 2010Netscribes, Inc.
For the complete report, get in touch with us at : info@netscribes.com
The beer market in China is witnessing a steady rise. Growth in this sector is being propelled by increasing income in the hands of the Chinese consumers coupled with a strong distribution network.
The report begins with discussion on the global beer market. This is followed by the market overview section which discusses the market size and growth of the beer market in China, consumer preferences, price segmentation and volume of beer consumption. The market overview section also includes data about foreign trade covering the beer export and import figures. An analysis of the drivers influencing the industry growth includes rising income levels, strong distribution network, beer festivals, growing pub culture. The key challenges identified are volatility in barley prices and dependence on foreign stake holders.
An analysis of the trends includes collaboration amongst players, Chinese breweries focusing on premium beer categories, development of craft beer market, signing of low-carbon brewing agreement in China and change in packaging of beer products.
The competition section discusses the business overview, financial overview and future plans of the players.
The document provides an overview of Anheuser-Busch InBev's history, financial performance, industry analysis, marketing strategies, and recommendations for global expansion. It traces AB InBev's origins to 1852 and highlights its growth into the largest brewery through acquisitions and innovative marketing. The analysis finds opportunities in expanding experiential marketing and leveraging rising beer consumption in Asia-Pacific markets through premium brands and production expansion in high-growth countries.
- Anheuser-Busch began in 1860 as a small brewery in Missouri and introduced America's first national beer brand, Budweiser, in 1876. It grew to become the largest brewer in the US by 1957.
- In 2004, it merged with Belgian brewer InBev to form Anheuser-Busch InBev, which is now the leading global brewer and produces over 200 beer brands worldwide.
- Anheuser-Busch InBev has a strong presence across North America, Latin America, Western Europe, Eastern Europe, and Asia Pacific, with its most popular brands including Budweiser, Stella Artois, and Beck's.
This document provides an overview of Grupo Modelo's international marketing strategies for Corona beer. It includes an analysis of the company's current situation, vision, mission, industry, key performance indicators, competitors, financial statements, PESTEL analysis, Porter's 5 forces model, SWOT analysis, 7P's of marketing, market segmentation, strategies, positioning, and recommendations. Grupo Modelo is Mexico's largest beer producer and Corona is the top imported beer in the US. The document outlines Corona's "fun in the sun" marketing campaigns and beach-themed positioning as an escape from everyday life.
Winning Shelf Space: Private Labels or FMCG Brands?Aranca
Higher margins provided by the Private Labels in comparison to established FMCG brands have augured well for the growth of Private Labels. This Aranca whitepaper is an effort to delineate the emergence of Private Labels and its impact on branded products in the FMCG sector.
The global wine market faces challenges of oversupply, fragmentation, and changing consumer behavior. Global wine production has increased from 25 billion liters in 2000 to the same level in 2012, coming from more sources. The wine industry is fragmented with no concentration in production or offerings. Consumer behavior is also fragmented, with more people drinking less alcohol. Opportunities exist in emerging markets, online sales, and on-premise consumption. The wine industry must adapt to growing diversity in global consumption trends.
Anheuser-Busch uses three main strategies for global expansion: 1) Cooperative exports with local distributors in markets like Mexico and Central America. 2) Licensing agreements with major brewers in large markets like Japan, South Korea, and Ireland. 3) Equity partnerships where it takes stakes in leading brewers, such as its 37% stake in Mexico's Grupo Modelo. While achieving success, A-B faces challenges of high prices in low-income countries, increasing beer consumption, and streamlining fragmented marketing across Latin America.
This document discusses strategies that global spirits brands use to localize their marketing campaigns in emerging markets like China. It provides examples of how Diageo created ads for the Chinese market that depicted extreme golf shots to appeal to local consumers. The document also examines how consumption habits vary between countries, with Chinese consumers having different segments and Latin American consumption being lower on average than Europe and the US. Globalization of some spirits depends on market demand and skills to expand successfully. Scotch whisky is seen as premium due to its strict regulations and maturation process only occurring in Scotland. Western brands pursue localized strategies in China, like custom ads that fill in cultural gaps, to succeed globally.
Wrigley has been successful in China through various marketing channels. It examines Wrigley's history since 1891 and how it has expanded globally. It discusses the confectionery market and Wrigley's strengths as the largest gum company. Opportunities exist in China and Russia for double-digit growth, while competition from Cadbury and tax threats present challenges. Marketing strategies include promoting dental benefits, new flavors, and integrating with agencies.
Coors Beer Case study on Corporate CommunicationNinitha Rao
The document presents a case study about Coors Beer's media relations problem with the AFL-CIO in 1982. The AFL-CIO had conducted a 10-year boycott against Coors due to labor disputes. Coors believed the boycott was based on untrue information. When CBS's 60 Minutes planned an investigation of Coors, it presented an opportunity for Coors to address the negative publicity. Coors developed a strategy to prepare for media interviews, conduct research, and handle negative news effectively. The goal was to use the 60 Minutes segment to set the record straight about labor issues and counter the AFL-CIO campaign. The boycott ultimately ended in 1987 with an agreement allowing union organization at Coors plants.
This document provides an analysis of Procter & Gamble (P&G) and Coca-Cola's entry into the Russian market following the collapse of the Soviet Union in the early 1990s. It discusses the benefits and risks of the Russian market at that time. Both P&G and Coca-Cola recognized the large potential of the Russian market but also faced significant political and economic risks and a lack of infrastructure. P&G established a joint venture and distribution network to overcome risks, while Coca-Cola used foreign direct investment and alliances with local companies to gain government support and negotiate tax exemptions as it worked to establish production and distribution. The document examines the strategies and structures used by each company to successfully enter
Billabong - International Business Case StudyOlivia Duncan
Billabong is an Australia-based wholesaler and retailer of surf brands like Billabong, Element, and RVCA. It operates 562 retail stores globally and generates most of its revenue from the Americas. While the Australian apparel retail industry saw declines in 2011, low-moderate growth is projected through 2018. As most of Billabong's sales occur outside of Australia, fluctuations in the exchange rate between the Australian and US dollars significantly impact its profits.
This document provides an overview of international trade and the dynamic global environment. It discusses several topics:
1) The establishment of world trade following WWII and the importance of balance of payments and protectionism.
2) The various types of trade barriers such as tariffs and nontariff barriers used by countries.
3) International organizations that shaped global trade such as GATT and the World Trade Organization, as well as the IMF and World Bank.
The CSD (carbonated soft drink) industry is dominated by two major players, Coca-Cola and Pepsi, which have high brand identity and reputation. The industry has high barriers to entry due to large capital requirements and faces strong competition between the major brands. Threats of substitution are moderate as customers have many beverage options but low inclination to switch brands. Supplier power is weak due to many ingredient providers, while some large buyers have bargaining power over the brands. The bottling industry serving CSD brands also has high concentration among a few players and high costs of entry.
This document provides an overview of international trade barriers and the dynamic global environment. It discusses different types of trade barriers countries employ like tariffs, quotas, embargoes and standards. While trade barriers aim to protect domestic industries and jobs, they can also decrease total world output and limit variety. The document also outlines benefits of free trade like increased specialization and access to larger markets, though free trade may negatively impact some domestic producers and jobs. Overall, it presents perspectives on both free trade and barriers to international trade.
Luxury goods sector and Consumer goods sectorMidhun Abraham
The document compares the luxury goods sector and consumer goods sector. It defines luxury goods as products with a high price premium, rare materials, and craftsmanship. The luxury goods market is characterized by globalization, consolidation, and diversification. Consumer goods are end products for average consumers like food and clothing. The consumer goods industry depends on advertising, retail outlets, and brand differentiation. Both sectors face challenges like changing consumer preferences, economic conditions, and supply chain issues. Opportunities exist in tapping new markets, digital channels, and meeting needs of various demographic groups.
The document discusses several key aspects of global marketing:
1) It identifies various ways for firms to enter global markets, from low-risk options like exporting to higher-risk/reward options like direct foreign investment.
2) It describes the external environment facing global marketers, including factors like culture, economic conditions, political structures, and natural resources in foreign countries.
3) It explains the importance of adapting the global marketing mix of product, price, place, and promotion to different country conditions in order to succeed internationally.
This document provides an overview of the global beer market and Porter's Five Forces analysis of the beer brewing industry. It notes that the beer market generates over $688 billion annually and discusses the major players. A Porter's Five Forces analysis is then presented, analyzing the threat of new entrants (medium risk due to barriers), rivalry among existing competitors (neutral level except intense among top 4-5 brewers), bargaining power of buyers (distributors have most power, consumers have least), bargaining power of suppliers (low due to many options and low switching costs), and threat of substitutes (wine, liquor, and malt beverages posing a serious threat).
3 Export Secrets the Fortune 500 Doesn't Want You To KnowShipwire
Three Export Secrets the Fortune 500 Doesn’t Want You to Know.
A special report on successful international product sales.
Applying these three export secrets to your business can jump start your entry into the international marketplace with less risk and more success.
Export Secret No. 1: Globalize Your Supply Chain
Export Secret No. 2: Flex the Power of Local Connections
Export Secret No. 3: Try Before You Buy
Heineken aims to accelerate sustainable growth while improving profitability. It faces challenges from industry consolidation and losing US market share. A SWOT analysis found strengths in global brands but weaknesses in appealing to younger drinkers. Solutions include increasing advertising toward Hispanics and promoting lower-calorie beers. Recommendations are to boost advertising, vertically integrate, diversify, and develop low-carb beers and new dispensers.
Anheuserbusch And Harbin Case Study 1205884199971242 4darrin_mcardle
The document provides an overview of the Chinese beer industry including:
1) It is the largest beer market in the world but consumption per capita is low and there is potential for growth.
2) Porter's Five Forces analysis shows the market has low barriers to entry and no dominant brewers despite regional powers.
3) Success requires understanding price-conscious customers, political risks, and targeting regions like east and south China with higher incomes.
Market Research Report : Beer Market in China 2010Netscribes, Inc.
For the complete report, get in touch with us at : info@netscribes.com
The beer market in China is witnessing a steady rise. Growth in this sector is being propelled by increasing income in the hands of the Chinese consumers coupled with a strong distribution network.
The report begins with discussion on the global beer market. This is followed by the market overview section which discusses the market size and growth of the beer market in China, consumer preferences, price segmentation and volume of beer consumption. The market overview section also includes data about foreign trade covering the beer export and import figures. An analysis of the drivers influencing the industry growth includes rising income levels, strong distribution network, beer festivals, growing pub culture. The key challenges identified are volatility in barley prices and dependence on foreign stake holders.
An analysis of the trends includes collaboration amongst players, Chinese breweries focusing on premium beer categories, development of craft beer market, signing of low-carbon brewing agreement in China and change in packaging of beer products.
The competition section discusses the business overview, financial overview and future plans of the players.
Introduction to international business - Manu Melwin Joymanumelwin
“ All institutions have to make global competitiveness a strategic goal. No institution, whether a business, a university or a hospital, can hope to survive, let alone to succeed unless it measures up to the standards set by the leaders in its fields, any place in the world.” -Management challenges of 21st century by Peter drucker.
The document discusses the global brewery industry and strategies used by major brewery companies to balance local responsiveness and standardization. It notes that beer is produced and sold locally due to its bulkiness and high export costs. Major brewers use licensing, acquisitions and joint ventures to gain local market presence while maintaining their brands. The document then analyzes the external factors driving consolidation in the industry and the strategies adopted by ABInbev, SABMiller, and Carlsberg to address the twin issues of localization and standardization.
LO, Kalvin - Sample Case Analysis - Chinese Beer Industrylokal8428
Lion Nathan should not pursue expanding its operations in China beyond the regional level due to significant competitive challenges. The Chinese beer market has intense competition among large domestic brewers receiving government support and aggressive expansion by major foreign brewers. Rising costs, the threat of overcapacity, infrastructure issues, and government policies limiting foreign market share make national expansion infeasible. Lion Nathan's recent expansion of its Suzhou joint venture was a mistake and it should attempt to sell its stake, as it lacks an "import brand" advantage and faces difficulties competing beyond its existing regional operations in the Yangtze Delta.
China's consumer market a huge opportunity to failtusharikhar
This document discusses developing new markets in China's consumer goods sector. It notes that while China represents a huge market opportunity, winning in China will not be easy due to intense competition, poor infrastructure, and underdeveloped distribution channels. The document outlines three common approaches companies take - waiting for payback, focusing on a few strong brands, and trying to build volume fast - but notes that none fully address the challenges, and companies following these approaches often get trapped in cycles of early success turning to drain on resources. To truly succeed, the document argues companies will need a much broader geographic presence, deeper outlet coverage, larger organizational capabilities, and to dramatically increase the scale of their operations.
Heineken is one of the world's leading beer brands with over 130 years of history. It aims to grow sustainably through innovation, efficiency, and focus on markets it can win. It faces challenges from industry maturation and consolidation. Heineken can grow in the US by increasing advertising of brands like Tecate and Dos Equis to young and Hispanic drinkers. Developing lower calorie beers also taps into growing consumer interests. Global expansion through acquisitions maintains competitiveness.
The document provides an overview of the global wine industry, distinguishing between "Old World" European producers and "New World" producers like those in North America. It then analyzes Robert Mondavi's company specifically. Mondavi focused on differentiation through quality, relationships, and innovation. He owned vineyards globally and developed strong relationships with independent grape growers. Mondavi entered many market segments through his 16 brands in order to leverage economies of scale, though some entries like a declining segment were mistakes. Distribution and marketing presented challenges that Mondavi did not always handle optimally.
This document provides an overview of premiumization trends in the global spirits market. It discusses how consumption of "branded" spirits is rising while "local" spirits decline. Vodka, gin, tequila, and rum are analyzed in terms of premiumization trends, with vodka experiencing the most growth. The case study of Svedka vodka highlights how it positioned itself as a premium, value-priced vodka through strategic production, pricing, distribution, and marketing decisions.
Heineken is a leading global beer brand with over 130 years of history. It aims to achieve sustainable growth through expanding its product portfolio and innovating in production, marketing, and packaging. However, it is facing challenges of losing US market share to competitors and operating in a mature beer industry. To address these issues, Heineken plans to accelerate growth, efficiency, and speed of implementation by focusing on priority markets and strengthening its brands globally through advertising, acquisitions, and developing new products like low-calorie beers.
SABMiller is the second largest beer company globally behind AB InBev. It faces intense competition from InBev as well as Heineken and Carlsberg. The beer industry is also impacted by consumer preferences, excise taxes, regulations, and health organizations. SABMiller has a history of acquisitions that has led to operations in 80 countries. Porter's Five Forces analysis identifies high competition and bargaining power of buyers as major issues. Recommendations include launching a new premium beer, offering local craft beers globally, and partnering with governments in developing markets to support infrastructure. These aim to attract customers with distinctive brands, expand margins, and ensure sustainable growth.
The document discusses the horizontal expansion strategy of Advance Sales & Service Pvt. Ltd., a franchise of Brindavan Bottlers Pvt. Ltd. It provides background on the company and analyzes the beverage industry environment using Porter's Five Forces model. Key challenges discussed are declining carbonated drink sales, health and wellness trends, and increased competition from PepsiCo. The document recommends focusing on non-carbonated drinks, providing healthier options, and expanding related businesses to maintain competitive advantage.
A study of the beer market leader (thailand)Nasir Wangde
1) The document analyzes the beer market in Thailand, focusing on the strategies of the market leader, challengers, and niche players.
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050615_US Conference Board Global Marketing and Communications Conference 2005_Cracking the China Market Successful Marketing Strategies
1. Cracking the China Market:
Successful Marketing
Strategies
Prepared for: US Conference Board
Global Marketing and Communications Conference 2005
Prepared by: Spire Research & Consulting
Date: 15 June 2005
Prepared for: Global Marketing and Communications Conference 2005 Date: 15 June 2005 Page 1
2. China’s Beer Industry: A Case study
Foreign brewers like Interbrew, Heineken and Carlsberg entered the China market in
a major way in the 1990s, only to suffer major losses and sell off their operations.
Chinese consumers did not take well to, and could not afford, premium foreign brands,
opting to stick with Chinese provincial or regional favorites which were priced much more
cheaply (sometimes 20-25% of premium beer prices) and had lower alcohol content.
The premium market was estimated at 5% of total volume and did not grow
substantially in spite of the foreign presence
Prepared for: Global Marketing and Communications Conference 2005 Date: 15 June 2005 Page 2
3. China’s Beer Industry: A Case study
The beer industry structure in China in the early 1990s was complex
In most provinces and regions, beer production had created national oligopolies controlled
by local companies – resulting in severe distribution barriers to entry
In China there were over 800 local beer producers in the late 1990s
Global foreign brewers started to enter China:
4 foreign brewers entered China in 1992: San Miguel, Asia Pacific Breweries, Pabst, and
Becks.
There were 16 in 1995.
By 2001, most major foreign brewers were in China, including: Annheuser-Busch, Heineken,
South African Breweries, Carlsberg, Kirin, Interbrew, San Miguel, Lion Nathan, and Foster’s.
Most of the companies built state-of-the-art breweries and promoted their global brands.
Their global brands were positioned as premium beer.
Prepared for: Global Marketing and Communications Conference 2005 Date: 15 June 2005 Page 3
4. China’s Beer Industry: A Case study
The outcome of the foreign breweries’ market entry:
Most plants ran at a loss due to low capacity utilization.
Low selling prices depressed margins.
Foster’s had to sell two of its three Chinese breweries in August 1998, following heavy losses.
Carlsberg and Lion Nathan also sold off their operations eventually.
By the end of 1990s, the foreign brewers had made little impact. The market remained
fragmented - all top ten brewers in China, representing around 21% of the market share,
were local companies.
Prepared for: Global Marketing and Communications Conference 2005 Date: 15 June 2005 Page 4
5. China’s Beer Industry: A Case study
Explaining the failure of foreign breweries in the early 1990s
The demand pyramid meant a small market size for premium beer.
Hyper-competition and over-capacity took a toll There were 800+ breweries.
Foreign brands were priced at 400 – 500 % the price of local brands.
The market for premium beer was only 5 % at the most (of total beer consumption market),
compared to roughly 15% in Australia, for example – foreign brands failed to stimulate
radical growth in this category.
Consumer sentiment towards local brands
As in the rest of the world, beer drinking followed an intensely local pattern, with “patriotic”
associations.
“Chinese have a very strong sense of “home place”… If I live in a place, I want to drink my
local brand… I don’t go into a place and say, ‘My Tsingtao beer is better than your beer.
My quality is better than yours. So why don’t you drink mine?’” (a comment by a local beer
industry executive in the 1990s)
Prepared for: Global Marketing and Communications Conference 2005 Date: 15 June 2005 Page 5
6. China’s Beer Industry: A Case study
A Failure of Consumer Advertising and Promotions
Foreign brewers employed competitive weapons that worked well in the West.
They tried to build global brands through expensive advertising campaigns aimed at
differentiating premium beer in the eyes of consumers.
These campaigns merely created awareness, but not the desire for, nor the ability to pay for
the premium price of the beer. Consumer sentiment towards local brands
Prepared for: Global Marketing and Communications Conference 2005 Date: 15 June 2005 Page 6
7. China’s Beer Industry: A Case study
In short: the 1990s saw a failure to understand the size and dynamics of the demand
pyramid for beer in China.
In the past 3 years, many of the foreign companies who failed in the 1990s are
re-entering the market by buying stakes in large Chinese breweries.
Most are pursuing a strategy of buying over successful Chinese brewers which have
a dominant position in one or more provincial/regional markets.
They would then use that brewers distribution network, production capacity and
expertise to gradually build the market for their premium international brands while
maintaining the local brands they now own.
Anheuser Busch is pursing this strategy with its acquisition of Harbin Brewery (China’s
4th largest), as is Heineken with Guangdong Brewery Holdings and Scottish &
Newcastle with Chongqing Brewery.
Prepared for: Global Marketing and Communications Conference 2005 Date: 15 June 2005 Page 7
8. Why a China challenge?
China’s position in some product markets out-ranks its 6th place in global GDP
China is among the world’s biggest markets for industrial products
and intermediates, like concrete, steel & coal…
…but is also among the world’s biggest volume markets for consumer products, outpacing
its 6th position in world GDP:
Beer (No. 1 – 30m barrels)
Mobile phones (No. 1)
Cigarettes (No. 1 – 35% of global demand)
Cars (No. 3 – 5m units in 04)
Platinum (No. 1)
Advertising (No. 3 – est. USD10b)
Gold (No. 4 – 235 tons)
Real GDP has grown 700% since 1978. Growth in consumer spending has been
stunning, even if there are signs of slowdown from the government’s credit tightening
measures in 2004
Prepared for: Global Marketing and Communications Conference 2005 Date: 15 June 2005 Page 8
9. Hyper-competition
Chinese customers are exposed to a dazzling array of brands and (falling) prices
Hyper-competition in China is all about:
Presence of huge number of brands, both foreign and local
Over-capacity and intense price competition in the mass market
Prepared for: Global Marketing and Communications Conference 2005 Date: 15 June 2005 Page 9
10. Hyper-competition
Brands are especially important in China given the array of choices
Hyper-competition means that customers are faced with a huge range of products,
brands and prices, both local and foreign - more so than in other emerging
countries:
Example: in low to mid-range diesel power generators, Spire found at least 28
brands in just three of the four major regions of China, including all the ten or so
leading international brands, compared with just 13 brands in all of Malaysia
This helps explain the great importance of brands as differentiators. In most cases,
brands are more important in China than other emerging markets.
Foreign brands like Nike, Adidas & Sony score highly in brand preference surveys…
….but local brands are still strong in some sectors, leveraging price and local brand
familiarity:
Examples: PCs (Lenovo, Founder), TVs (Changhong, Konka), beer (numerous local brands
peculiar to provinces or counties)
A recent study published in Harvard Business Review advised that foreign brands will find it
hard to command premiums of over 30% in China.
Prepared for: Global Marketing and Communications Conference 2005 Date: 15 June 2005 Page 10
11. Hyper-competition and Over capacity
In the mass market, price competition is intense
The traditional SOE and bank loan system has led to over-capacity in markets like
TVs, cement, steel and motorcycles – sparking vicious price competition that
sometimes prompts Government intervention (as with the TV industry in 1999).
Motorcycles: 300 manufacturers; Cement: >1,000 plants; Breweries: >400
Car prices have been falling by 7%-10% per year since 2002
In the consumer electronics and office products sector, our research has shown
steeper price drops at the low-end of the market compared to other countries in
Asia, but a roughly similar price trend in the high-end of the market.
Over-capacity and price sensitivity are a major threat at the low-end, while absolute
market size is the issue for high-end products
Marketers need accurate competitor analysis to keep price premiums at an acceptable
level
Enter at the early stage of the PLC curve wherever possible – launch new products and be a
pioneer in new categories; intense competition will arrive very fast.
Prepared for: Global Marketing and Communications Conference 2005 Date: 15 June 2005 Page 11
12. Consumer demand growth potential
Penetration of consumer products lags behind the West & Japan, BUT…
China’s per capita consumption is:
22 litres of beer a year, compared to over 80 for the USA
8 cars per 1,000 people compared to over 600 in the USA
0.5 litres of wine a year, compared to over 7 litres for developed economies
Products per 100 urban households 2002 2004
Colour Television 126.4 -
Mobile phone 63 -
Air-Conditioner 51.1 -
Camera 44
Oven 30.9 -
Personal Computer 20 -
Video Recorder 18.4 -
Credit card* 18 (2003)* 22*
Internet users** 6.1 (2003)** 9.2**
Automobile 0.9 -
* Per hundred of urban population
** Per hundred of total population
Source: China Statistical Yearbook 2004 and Spire analysis of published data
from various Government and private sources
Prepared for: Global Marketing and Communications Conference 2005 Date: 15 June 2005 Page 12
13. China still has an emerging market income profile
…China still has emerging economy income profile
China’s national income differs widely between the PPP figure and hard currency
market exchange rates
The shows the limits to the market size for (consumer) products which are expensive
in international currency terms – markets in China are often much bigger in global
volume (unit) than global value (hard currency) share
GDP (at market exchange rates; US$ Bn)
US
Japan
Germany
China
India
Taiwan
Indonesia
0 3000 6000 9000 12000
2003 2004
GDP (PPP; US$ Bn)
GDP per capita (at market exchange rates; US$)
US
US China
Japan Japan
Germany India
Taiwan Germany
Italy
China
Indonesia
Indonesia
Taiwan
India
0 3000 6000 9000 12000
0 5000 10000 15000 20000 25000 30000 35000 40000
2003 2004
2003 2004
Prepared for: Global Marketing and Communications Conference 2005 Date: 15 June 2005 Page 13
14. The Demand Pyramid in China
Realistic sizing of the premium and mass market spaces is vital…
For short-term results, marketers need to be realistic about the size of the premium
market and the costs of competing in the mass market
Most consumers cannot (yet) afford to buy large quantities of high-end products,
even if product penetration shows huge room for growth
Premium
market
(OECD prices)
Mass market
(local prices, price-sensitive, high
distribution cost)
Prepared for: Global Marketing and Communications Conference 2005 Date: 15 June 2005 Page 14
15. The Demand Pyramid in China
Realistic sizing of the premium and mass market spaces is vital…
MasterCard International estimated China's middle class (those earning US$5,000
per year and above) to 160 million by 2010.
Increasing access to credit may expand purchasing power – but this may lead to
phenomena like heavy default rates for car loans in 2004
Marketers need accurate & timely market sizing research based on current sales
measurement and not only projections based on “per capita consumption gaps.”
Premium
market
(OECD prices)
Mass market
(local prices, price-sensitive, high
distribution cost)
Prepared for: Global Marketing and Communications Conference 2005 Date: 15 June 2005 Page 15
16. Regional disparities
…and grasping regional disparities is crucial to any market sizing
A recent paper reviewing data from 200 cities for a 10-year period, reveals that the
richest city had a per capita income 50 times greater than the poorest. Many
regions may not have the critical mass for a premium market, but have the
population to drive a sizeable mass market
Region Population (millions) GDP per capita in RMB*, top provinces
ranked in descending order
Shanghai Yangtze delta 16. 25 40,646
Beijing North 14. 23 28,449
Tianjin North 10. 07 22,380
Zhejiang Yangtze delta 46. 47 16,838
Guangdong South 78. 59 15,030
Jiangsu Yangtze delta 73. 81 14,391
Fujian South 34. 66 13,497
Liaoning North-east 42. 03 12,986
Shandong North 90. 82 11,646
Heilongjiang North-east 38. 13 10,184
Hebei North 67. 35 9,115
* RMB 8.28 = USD 1
Source: National Bureau of Statistics of China, 2003
Prepared for: Global Marketing and Communications Conference 2005 Date: 15 June 2005 Page 16
17. Regional disparities & Southern Affluence
It is a common mistake to under-invest in Southern marketing
China has 16 cities with per capita income of over USD 3,000 (RMB 25,000)
Shanghai (RMB 37,380) ranked 6th in terms of GDP per
GDP (RMB billion) Capita by city.
GDP per capita (RMB)
4,951 50,000
5,000
43,926 43,355
41,111
4,000 37,777 38,007 37,380 40,000
31,330
3,000 2,846 30,000
25,520
2,000 1,760 20,000
1,492 14,680
1,000 10,000
558
N.A.
N.A.
N.A.
168
0 0
Beijing Chengdu Doungguan Guangzhou Karamai Shanghai Shenzen Suzhou Xiamen
Southern cities
Total GDP GDP per capita RMB 8.28 = 1 US dollar
Source: China Statistical Almanac, 2003, TDC
Prepared for: Global Marketing and Communications Conference 2005 Date: 15 June 2005 Page 17
18. A Marketing strategy to fit the Pyramid model
The mass market & premium market present different marketing challenges
The China market requires a marketing strategy to address the premium and mass
market
Dell’s cheap, fixed configuration Smart PC is a response to the mass market challenge
Two tier branding is a solution that some firms have tried:-
In the beer industry, many major international brewers have acquired local Chinese brands
for the mass market, while introducing their international brands for the much smaller
premium market
Automotive and engineering firms like Honda, Caterpillar and Yamaha Motor have
developed second brands for aftermarket parts in some emerging markets, offering
mid-range quality and prices, while positioning their original brand products as premium
Marketers need a clear strategy that addresses both premium and mass market
opportunities – where either one cannot be ignored.
Prepared for: Global Marketing and Communications Conference 2005 Date: 15 June 2005 Page 18
19. Go-to-market challenges
Invest in winning access to channels
The battle for distribution access will be critical in the next few years, as the channel
environment changes
The retail sector is “modernizing” and becoming more organized – which will
increase competition by manufacturers for access
Big chains in the future are likely to include foreign players like Carrefour, Walmart, Tesco
and Metro, as well as local chains like Shanghai Bailian Group, Lianhua Supermarket,
Wumart, GOME, YOLO and Lenovo 1+1 franchise
Where channels are not accessible to foreign firms, they can be “acquired” –
foreign brewers have acquired competing local brewers, gaining access to their
captive distribution channels
Outstanding processes in distribution channel management can win the loyalty of
existing channels. Example: rules to police price competition among channels
Prepared for: Global Marketing and Communications Conference 2005 Date: 15 June 2005 Page 19
20. Trends to watch going forward
Travel and tourism is changing China – creating more “high-end” and “international”
tastes
20 million Chinese traveled abroad in 2003 – placing China among the world’s top 10
outbound tourist nations
In 2004, the average Chinese tourist who visited Europe – China’s favorite overseas
destination – spent between US$2,000 and US$3,000.
Many middle-class Chinese buy luxury products abroad
Expatriate numbers are on the rise: a survey conducted in 2003 by HRBS reflected
that 35% of managers at foreign-owned companies in China were expatriates, a
very high percentage compared to 10% in Thailand, 19% in Singapore and 7% in
South Korea
Some 500,000 Taiwanese are estimated to be living in and around Shanghai
Weak information infrastructure for marketers – quality of data locally available from
Government, think tanks and academia is uneven
Huge IPR issues remain – high penetration of counterfeits, export of counterfeits
Strongly patriotic and anti-Japanese feelings are pervasive:
Less than 2% of Chinese surveyed use positive adjectives to describe Japan;
33% place Japanese at the bottom of their hiring list: Anholt-GMI Nations Brands
Index Q105
Prepared for: Global Marketing and Communications Conference 2005 Date: 15 June 2005 Page 20
21. Trends to watch going forward (cont’d)
Huge IPR issues remain – high penetration of counterfeits, export of counterfeits
Strongly patriotic and anti-Japanese feelings are pervasive:
Less than 2% of Chinese surveyed use positive adjectives to describe Japan;
33% place Japanese at the bottom of their hiring list: Anholt-GMI Nations Brands Index Q105
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22. Trends to watch going forward (cont’d)
China’s population is aging faster than any major economy in modern history – and
unlike many other emerging market economies
The World Bank forecasts that by the year 2030, 22% of China’s population will be over 65
years of age
Country Population Size Population Age Structure (%) Median
Growth rate Age (yrs)
0-14 yrs 15-64 65 yrs
(%)
yrs and
above
Australia (AU) 19,913,144 0.90 20.1 67.2 12.8 36.3
China (CN) 1,298,847,624 0.57 22.3 70.3 7.5 31.8
Hong Kong (HK) 6,855,125 0.65 14.2 73.3 12.5 39.4
India (IN) 1,065,070,607 1.44 31.7 63.5 4.8 24.4
Indonesia (ID) 238,452,952 1.49 29.4 65.5 5.1 26.1
Japan (JP) 127,333,002 0.08 14.3 66.7 19.0 42.3
South Korea (KR) 48,598,175 0.62 20.4 71.4 8.2 33.7
New Zealand (NZ) 3,993,817 1.05 21.7 66.7 11.6 33.4
Taiwan (TW) 22,749,838 0.64 19.9 70.7 9.4 33.7
Thailand (TH) 64,865,523 0.91 24.1 68.7 7.3 30.5
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23. Conclusion: Why is China different from other emerging markets?
In some ways China presents the same challenges as other emerging
markets – the pyramid structure of demand is not unique to China.
Challenges & opportunities that may be unique to China include:
Hyper-competition creates unique branding challenges &
intense price competition in the mass market
Consumer tastes are fairly dynamic, creating many new opportunities for “international
products” which very quickly become hyper-competitive…
…while an aging society creates challenges and opportunities
There is a greater need to protect intellectual property
The distribution channel environment is in flux
World-class levels of export-oriented manufacturing create huge opportunities for B2B sales
of materials, components and services like logistics & construction
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24. Tel: (65) 6838 5355
Fax: (65) 6838 5855
78 Shenton Way #20-01
Singapore 079120
sg.info@spireresearch.com
www.spireresearch.com
Prepared for: Global Marketing and Communications Conference 2005 Date: 15 June 2005 Page 24