Business Plan For Entering Chinese Beer Market Marketing Essay

Business Plan For incoming Chinese Beer foodstuff tradeing EssayThe Chinese beer marketplace has bountiful at a strong score between 2004 and 2008.It has generated jibe revenues of $ 42.8 one and only(a) thousand million in 2008, representing a compound annual harvesting rate (CAGR) of 12% for the period spanning 2004-2008.Market consumption volumes increased with a CAGR of 9.2% for the period 2004-2008, to distri notwithstandinge a total of 38.8 billion liters in 2008.The markets volume is expected to better workforcet to 53.6 billion liters by the end of 2013, representing a CAGR of 6.7% for the 2008-2013 period.Standard lager beer gross sales proved the most lucrative for the Chinese beer market in 2008, generating total revenues of $34.7 billion, equivalent to 81.2% of the markets boilersuit prise. In comparison, sales of premium lager generated revenues of $7.7 billion in 2008, equating to 18% of the markets aggregate revenues.The performance of the market is h arbinger to decelerate, with an anticipated CAGR of9.4% for the five-year period 2008-2013, which is expected to lead the market to avalue of $67 billion by the end of 2013.1Market ValueThe Chinese beer market grew by 14.9% in 2008 to reach a value of $42.8 billion.Market Value ForecastIn 2013, the Chinese beer market is omen to pack a value of $67 billion, anincrease of 56.7% since 2008.Market VolumeThe Chinese beer market grew by 12.5% in 2008 to reach a volume of 38.8 billionliters.Market Volume ForecastIn 2013, the Chinese beer market is forecast to have a volume of 53.6 billion liters, anincrease of 38.4% since 2008.Market variance IStandard lager sales dominated the Chinese beer market, generating 81.2% of themarkets overall(a) revenues.Market Segmentation IIChina accounts for 42.9% of the Asia-Pacific beer markets value.Market Sh arAnheuser-Busch InBev accounts for 24% shargon of the Chinese beer markets volume.( www.euromonitor.com)Distri exclusivelyionSupermarkets and hy permarkets distri scarcee 35.7% of the Chinese beer marketsvolume.1.2 Situation of Chinese beer diligenceThe Chinese beer market has big(p) at an astounding measure in recent years, spurred on by the massive levels of foreign investment in the market, a hanker with the rise in the average levels of consumer spending in China, thanks to the economic reform policies of the government. China has now over exitn the US to hold up the largest national beer market in the world. However, per capita beer consumption in China form very low relatively meaning that in that respect remains bang-up scope for development.2In 2013, the Chinese beer market is forecast to have a volume of 53.6 billion liters, anincrease of 38.4% since 2008.The compound annual harvesting rate of the market volume in the period 2008-2013 ispredicted to be 6.7%.3T open 1 bloodline Datamonitor2. The strategic triangle ( the 3Cs )2.1 The CorporationAire Valley Breweries is a medium- collection plate brewery tha t is situated in UK, it is an effective company with blue cost structure but it sells its premium bottled product at premium prices so it is not a real problem.Its current labor includesHostenbeck. European ardour lager beer, 5% abv, in 260 ml glass bottlesSan Bernardo. European style lager beer, 5.5% abv, in 240 ml glass bottlesCamelot. British style dark stifling beer, 4.5% abv, in 500 ml glass bottlesArk Royal. British style dark bitter beer, 5.6% abv, in 500 ml glass bottlesPot of Gold. Irish style dark stout beer, 5.2% ABV, IN 500 ml glass bottles2.2 The guestAire Valley Breweries plc intends to provide the customer with much than than just a traditionalistic brew. We intend to distribuite a high gauge brew that leave behind not only be refreshing and pleasurable, but as well encourage gatherings and sharing of fun.Our customers can be feel safe just about the highest quality standards of all our products.Looking at the consumer, there argon some differences betwe en the slipway unlike alcoholic beverages be used in different occasions, but many product choice are a matter of personalized taste this makes beer threatened to the threat of former(a) alcoholic beverages and many population are about the idea that wine can be more healthy.Overall, there is a moderate threat from other type of alchoolic beverages.Our luff customer entrust be people of any ages and gender but our products are more suitable for over 20 years men and women.2.3 The CompetitorsWe should identify competition in terms of companies already operating in the Chinese market that product similar type of beers.Hence there get out be a need to powerfully differentiate ouselves from other already well-settled businesses. However after an accurate market analysis, our competition comes in several forms1. The biggest competitors are Anheuser-Busch InBev NV/SA, Tsingtao Brewery, Company Ltd., SABMiller Plc.Been present on the market for a long period, they have a wide and established distribution entanglement that they utilize to their advantage.In order to compete with these leading companies we intend to strongly undertake new channel and distribution development in growth to adopting aggressive marketing strategies.2. Other manufacturers of traditional brews including homes and local cast outs provide to a fault constitute our competitors. They often have access to the local and outback(a) areas and knowledge of these areas. However their products are not of high standard, which we shall fully exploit.Anheuser-Busch InBev accounts for 24% share of the Chinese beer markets volume.In comparison, SABMiller accounts for 15.9% of the total markets volume.4 disconcert 2 root system Datamonitor3. The market segmentation of the Chinese beer industryThe Chinese beer market is fragmented, with outgo three players holding 53.6% of the total market by volume.The market leading are companies that own a strong well-known brand-image and operate deep do wn various segments of the market, which is possible due to the ease of increase in production capacity at once a company is established and has already gained customers loyalty. in that location is a waste differentiation of products in the market, as there are many varieties within the beer category, including ales, stouts, low/no alcohol, standard and premium lager, and oddment beer.Entry into this market would be highly dependent on the growth prospects and also on the size of the existing players.Furthermore, beer can be vulnerable to the threat from substitutes such as spirits and wine, due to low exchange costs and consumption patterns in different geographies.3.1 GeographicThere are difference between Northerners and Southerners.There are large numbers of beer consumers chose to take in at dinning and banquet in the 6 selected metropolitan consumer markets namely Beijing, Shanghai, Shenyang, Chengdu, Wuhan and Guangzhou. A comparably distinct preference for drink-places was identified as frequenting at bar counters in Guangzhou (15.7%).5 sidestep 3 Source IMI Consumer Behavioural Lifestyle yearbook 2002-20033.2 DemographicIn China, women population consume more beer beverage than men, close to 40% of consumers in Beijing are women.Table 4 Source IMI Consumer Behavioural Lifestyle Yearbook 2002-20033.3 PsychographicSupermarket chains are often able to negotiate very strongly on price with beer producers, which fact boosts vendee power significantly. Switching costs for buyers are not particularly high, which increases buyer power in all markets. Beer producers can differentiate their products quite strongly, not only by the overall segment (lager or bitter, for example) but also by brand, ingredients, style, and so on.63.4 BehaviouralThe IMI survey classifies beer beverage consumers into heavy and non-heavy drinkers. toilsome consumers drink habit ranges from daily drinking to a minimum of once or twice a week. Beijing beer beverage consumers are broadly heavy drinkers (67%). In Guangzhou, the heavy and non-heavy consumers are equally distributed in numbers.Table 5 Source IMI Consumer Behavioural Lifestyle Yearbook 2002-2003About 30% of the Beijing heavy drinkers are women, as compared to the other two metropolitan consumer markets in less than 20%. All the women consumer in the three selected metropolitan markets behave differently, ranging from frequency in drinking, preference for drinking-places, brand images, and personal lifestyles.7Table 6 Source IMI Consumer Behavioural Lifestyle Yearbook 2002-20034. The 4Ps Marketing aggregate4.1 ProductAire Valley Brewwerie plc should produces products of high quality and impeccable taste.Our products will be positioned very carefully. They will be of extremely high quality to stop customer felicity, supported by impeccable service to our customers.As high quality beers can be sold at premium prices, it is now possible to enter themarket on a small scale as a microbrewery . Investment in production equipment canbe recouped by adding a good margin to the price of the end-product.Standard lager sales dominated the Chinese beer market, generating 81.2% of themarkets overall revenues.Sales of premium lager generated 18% of the markets aggregate revenues.(Datamonitor)8Table 7 Source Datamonitor4.2 PricingWe will ensure that our products prices take into consideration peoples budgets.However these prices will also take into consideration the cost of production and distribution4.3 DistributionThese products will be extensively distributed to remote,yet extremely viable areas where the market is appreciative of right away available, good quality brew.We intend to establish an brilliant network that will enable us to rapidly respond to customers orders, and be available in remote areas our competitor has not yet exploited.4.4 PromotionThe marketing dodging we will adopt will convey the sense of quality and satisfaction in every picture, every promotion, and every publication. The promotion will contract integrating advertising, events, personal selling, public relations and direct marketing.In the long term Internet marketing will also be undertaken, which will help to increase the knowledge of our products to the various market target segments. meshing presence is a natural objective in reaching the captivate potential customers.Well-done brochures, company profiles and business cards often has an hook effect on clients contemplating on ordering our products. Hence this will undoubtedly generate increased sales of our products.5. SWOT AnalysisIn a rapidly growing economy market as the Chinese one we should focus on our strenghts to respond quickly to what the market dictates and to provide quality brew in such a highly lucrative market. We should also acknowledge our weakness of a medium-sized company without any international experience.5.1 StrenghtsMarket segmentation strategiesFocused marketing campaignEstablished company in U K with strong capital baseDifferent type of products for different tastes5.2 Weaknesses overleap of reputation in the Chinese marketNo knowledge about Chinese culture and behaviourChinese distribution channel different from UK oneIntroduction of Chinese empyees who have not previously worked in the company present a challenge to the company.5.3 OpportunitiesThe new generation are more interested in foreign brand and attractive advancementInternet marketing and salesChinese beer market had a considerable demand in the last years followed by population growth5.4 ThreatsExisting competition in Chinese beer marketMarketing strategies and manoeuvre by other established European companies6. ConclusionThe brewing industry has been one of those quickest to modernise in China.Despite its huge market size, there remains great scope for development, and many new opportunities are still available in China.Per capita beer consumption in China has grown to near parity with other regional marke t, and so development in the market will in future rely much more on raising the average value of purchases, and persuading Chinese consumers to trade-up to premium products and brands.