woensdag 12 oktober 2016

Marketing in international markets and globalization

The brand Amstel is a international brand. The manufacturer of the brand Amstel is Heineken and the level of international involvement of Heineken is Global marketing. This means that they are totally global orientated. Global marketing occurs when marketing strategies are developed for the entire world to enable competition globally. Heineken is one of the biggest beer manufacturers in the world, and is sold in almost every country. The product Amstel is available in over 80 countries, with markets in Greece, The Netherlands, South Africa, Spain, Hungary, the UK, Switzerland Portugal and many more. (Kochan, 2016)

Here are some market shares of Amstel in Greece and Spain:



Beer shares in Greece:
In this table you can see that Amstel has the biggest brand share in Greece. But you can also see that the brand share of Amstel has decreased by 11% from 2011 to 2014. 





                                                                                                                                                                                                                                                    (Euromonitor, 2016)                                                                                                       




Beer shares in Spain:
In this table you can see that Amstel has around 7% of the brand shares in Spain. The brand with the biggest brand share, which is Cruzcampo, is from the same manufacturer as Amstel, Heineken NV.
                                                                                     (Euromonitor, 2016)
          
Heineken uses different market entry strategies to penetrate foreign market. To enter the market of the US, Heineken used the market strategy exporting because it had a low risk and cost. To enter the market of Asia, Heineken used the market strategy joint venture. They had a partnership with Frasere & Neave and became Malayan Breweries. (The Finance Director, 2012)

There can be found evidence of impact of the recent international turmoil on the company of my product, Heineken. The Brexit has impact on the company Heineken, because of the Brexit large beer brewers like Heineken will have to shift its business models from imported to licensed beer depending on the positioning and consumer perception of the brand (Mortimer, 2016). Also the Ebola virus in Africa had an impact on Heineken. The unit of Heineken in Sierra Leone had to fire staff and stop the expansion plans worth about 12 million dollars. A spokes said that sales had dropped 70 per cent in October, which is risky for the supply chain. (OECD iLibrary, 2015)

At last I found some legal forces that have an impact on the marketing position of your product. The following three have an impact on the marketing position:

The beer industry players have to follow the advertising norms. These show the content and hours when beer advertisements may be broadcasted to minimize instances of underage drinking. America also has a control system that separates players into manufacturers, wholesalers and retailers, and they are not allowed to sell beer directly to the public. The tax code divides brewers according to their size, with small brewers that produce up to two million barrels per year and the large brewers any amount above it, although taxes are paid on every barrel that is produced. (Lowrie, 2016)
                                                                                               

Bibliography

Euromonitor. (2016). Beer in Greece. Retrieved October 12, 2016, from Euromonitor: http://www.portal.euromonitor.com.saxion.idm.oclc.org/portal/analysis/tab
Euromonitor. (2016). Beer in Spain. Retrieved October 12, 2016, from Euromonitor: http://www.portal.euromonitor.com.saxion.idm.oclc.org/portal/analysis/tab
Kochan, N. (2016). The World's Greatest Brands. Retrieved October 12, 2016, from Google Books: https://books.google.nl/books?id=LDqvCwAAQBAJ&pg=PT8&lpg=PT8&dq=international+brand+amstel&source=bl&ots=dc4fG1fdDM&sig=3RIDrHHhq4M5STDAY9O2T0g6tqw&hl=nl&sa=X&ved=0ahUKEwjg8enfx9XPAhXCDcAKHUJxC5QQ6AEIVTAJ#v=onepage&q=international%20brand%20amstel&f=false
Lowrie, L. (2016). Beer Industry Legal & Political Factors. Retrieved October 12, 2016, from Small Business: http://smallbusiness.chron.com/beer-industry-legal-political-factors-75952.html
Mortimer, N. (2016, July 25). Why Brexit could boost craft beer but hurt big beer businesses. Retrieved October 12, 2016, from The Drum: http://www.thedrum.com/news/2016/07/25/why-brexit-could-boost-craft-beer-hurt-big-beer-businesses
OECD iLibrary. (2015). The Ebola Crisis in West Africa: Implications for Trade and Regional Integration. Retrieved October 12, 2016, from OECD iLibrary: http://www.oecd-ilibrary.org/docserver/download/5js4t73pl5mt.pdf?expires=1476307755&id=id&accname=guest&checksum=DA483E97D2AC68AA254F288C5A1F2AD0
The Finance Director. (2012, May 18). Heineken: An acquired taste. Retrieved October 12, 2016, from The Finance Director: http://www.the-financedirector.com/features/featureheineken-rene-hooft-graafland-high-growth-markets-acquisitions-expansion







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