Challenges Related to Marketing and Branding in the...

Challenges related to marketing and branding in the Chinese beer industry: Source: Loizos Heracleous (2001)When Local Beat Global: The Chinese Beer Industry. Business Strategy Review, 2001, Volume 12 Issue 3, pp 37-45. Available at: http://onlinelibrary.wiley.com/doi/10.1111/1467-8616.00182/pdf. In spite of the fact that the level of taxation on the beer retail price in China was one of the lowest in the world at 19% (as compared with South Korea at 53.5%, Australia at 52.8% or the UK at 44.6%, for example), beer producers in China found it hard to make a profit, generally operating at capacity utilization levels of just 50-65%. The problems faced by foreign entrants can be summarized under four heads: _ The high†¦show more content†¦* Most of the beer sold through retail (‘‘take-home’’ or ‘‘off-premise’’) outlets is standard beer. People bring reusable glass bottles and fill them up. Most of the international brands are only available through ‘‘on-premise’’ channels like hotels, restaurants, bars, and karaoke bars. On-premise prices are considerably higher than off-premise retail, and indeed considerably higher than many Chinese consumers can afford. Among status-conscious buyers purchasing beer in hotels, bars, discotheques, and restaurants, however, demand is relatively price inelastic. Some customers are prepared to pay very high prices even by Western standards for the right brand, as a sign of status. Most foreign brewers had imported their brands to China before producing them domestically. Multinational brewers had spent large sums on advertising, especially in the bigger hotels and restaurants where prices were already high. In order to secure access to higher-paying customers who were frequenting these restaurants and hotels, larger beer companies paid an extra concession fee to sell on these premises, thus furthering raising the final price of the beer. As a result, many local Chinese beers were being pushed out with foreign beers often sold at twice the price of local ones. Overseas brewers then began to import brands rather than products by finding cooperative partners in China: the world’s top 10 brewers had all entered the market in this way.Show MoreRelatedHeineken N.V.: Global Branding and Advertising2172 Words   |  9 PagesWith sales throughout Europe, America, Asia, Australia and Africa, Heineken was second in volume of beer brewed behind only Anheuser-Busch in 1993. While Europe, particularly the Netherlands, provided the majority of its sales revenue, international expansion provided the majority of sales growth from 1992 to 1993. As the trend toward international expansion and the globalization of the brewing industry increased, the importance of effective advertising strategies and projecting an appropriate brandRead MoreGlobal Marketing : a Decision-Oriented Approach 4th Ed. Svend Hollensen.2310 Words   |  10 Pages Search Results Full Title Display - Global marketing : a decision-oriented approach 4th ed. Svend Hollensen. Pages: 753 Publisher: Pearson Education Publication date: 26 Apr 2007 Search score: 36.20 eISBN-13: 9781408212011 eISBN-10: 1408212013 Print ISBNs: PB: 9780273706786, 0273706780 Description: Drawing on an incomparable breadth of international examples, Svend Hollensen not only demonstrates how global marketing works, but also how it relates to real decisions aroundRead MoreMarket Penetration and Acquisition Strategies for Emerging Economies11039 Words   |  45 Pagescontact persons at Carlsberg A/S and our research partners in Poland, Lithuania and Vietnam for many stimulating discussions, and Bent Pedersen (Copenhagen Business School) and Zeng YuPing (Peking University) for sharing their insights in the Chinese brewing industry. Comments by Arnold Schuh, Mike Peng, Sheila Puffer, Tina Pedersen and Peter Krag as well as conference participants at the 2nd EIASM workshop on ’International Strategy and Cross-Cultural Management’ in Edinburgh University, and seminarRead MoreMarketing Strategy of Bud Light3687 Words   |  15 PagesMarketing Strategy Anheuser-Busch’s [pic] Table of Content 1. Summary 1 2. Introduction 1 3. SWOT Analysis 1 3.1 The SWOT analysis of Anheuser-Busch 2 4. PETSLE analysis 3 5. Competitors 5 6. Unique Selling Proposition (USP) 5 7. Segmentation Targeting and Positioning 6 8. Company’s objectives - SMART 7 9. Marketing Mix 4P’s 7 10. Possible Strategies for Anheuser-Busch in General 9 11. Conclusion 9 I. Appendices II. References III. Internet resources Summary The authorRead MoreWalt Disney Parks and Resorts1956 Words   |  8 Pagesthe challenge of building a theme park in Europe. Disney s mode of entry in Japan had been licensing. However, the firm chose direct investment in its European theme park, owning 49% with the remaining 51% held publicly. Besides the mode of entry, another important element in Disney s decision was exactly where in Europe to locate. There are many factors in the site selection decision, and a company carefully must define and evaluate the criteria for choosing a location. Global marketing strategistRead MoreTiger Beer Market Plan7717 Words   |  31 PagesSummary Asia Pacific Breweries (APB) is the leading beer brewery in the Asia Pacific region. The company’s most iconic product, Tiger Beer, is notably one of Singapore’s most successful brands in the world and is valued at S$820 million. The lucrative beer industry has attracted numerous foreign beers to vie for the market share in Singapore which is valued at S$562.7 million. As the beer industry in Singapore is reaching maturity, beer companies have to find innovative means to remain competitiveRead MoreEssay on Heineken Marketing Report 20094988 Words   |  20 Pages[pic] Marketing 100 Andrei Catrinici Term paper Prof. J.Goldstein I - Intro on company History of the company II - Environmental Analysis   Ã‚   1 - Economic forces   Ã‚   2 - Political Legal forces   Ã‚   3 - Demand   Ã‚         a)Total size of market   Ã‚         b)Market share   Ã‚         c)Characteristics of demand   Ã‚               1-When   Ã‚               2-where   Ã‚               3-how often costumers buy   Ã‚  Read MoreCoca-Cola: International Business Strategy for Globalization10128 Words   |  41 PagesMichael Ba Banutu-Gomez William G. Rohrer College of Business, Rowan University, USA Key Words International Differentiation Strategy, Global Strategy, International Marketing Strategy, Culture in International Marketing Strategy, Coca-Cola Strategy, International Distribution Strategy, Choosing Distributors and Channels, The Challenge of Distribution, Hidden Costs And Gains In Distribution, International Collaborative Strategy, International Labor Relations and Management Strategy, and InternationalRead MoreAnalysis of Marketing Strategy of Coca Cola and Pepsico12414 Words   |  50 PagesANALYSIS OF MARKETING STRATEGY OF COCA COLA AND PEPSICO PROJECT REPORT ON â€Å"ANALYSIS OF MARKETING STRATEGY OF COCA COLA AND PEPSICO† UNDER GUIDANCE OF: MR. ASHISH SAIHJPAL (FACULTY, MARKETING) SUBMITTED BY: AKHILESH MITTAL ARVIND JAIN BIPIN SINGH KARAMJEET SINGH PAWAN KUMAR (MBA II SEMESTER, 2008-2010) UNIVERSITY BUSINESS SCHOOL, LUDHIANA 1 ANALYSIS OF MARKETING STRATEGY OF COCA COLA AND PEPSICO CHAPTER 1 INTRODUCTION TO BEVERAGE INDUSTRY 1.1 BEVERAGE Any type of liquid specificallyRead MoreIndian Beverage Industry Report15071 Words   |  61 PagesREPORT ON INDIAN BEVERAGE INDUSTRY 1. Beverage Overview------------------------------------------------------ 3 2. Indian Beverage Industry----------------------------------------------- 4 3. Share of Volume by Beverage Category of India---------------------- 7 4. Per Capita Consumption In India--------------------------------------- 8 5. Key Figures on Indian Beverage Industry------------------------------ 9 6. Factors driving developments