In this short paper the internationalization strategy of a small German brewery towards the Chinese market is presented. First, the brewery and its products are introduced shortly. Afterwards, the target market is described. The discussion about the market entry mode follows and the marketing mix ends this report.
The chosen brewery is Glaabsbräu, founded in 1744 and located since in a small town in Hessen, Germany. Glaabsbräu recently went through a modernization process regarding its production, marketing, and products, which makes it a traditional but also a competitive and innovative brewery.
China as a target market was chosen because the task claimed not to thematizes a European country as European beer markets were discussed very detailed in the intensive prominence Erasmus+ program. Moreover, the European beer market is already saturated and aggressively competitive. Whilst the Chinese market, especially the alcohol-free beer and craft beer market is increasing. German products are highly valued in China and to drink foreign beers is considered as a status symbol and represents great taste.
Table of Contents
1. Introduction
2. Glaabsbräu Brewery
3. Chinese Market
3.1 PESTEL Analysis
3.2 Culture Map
3.3 Business Environment
4. Market Entry Strategy
4.1 Entry Mode
4.2 Four Ps
Research Objectives and Focus
This paper examines the internationalization strategy of the traditional German brewery Glaabsbräu for its expansion into the Chinese market. It analyzes the specific market conditions, cultural nuances, and competitive landscape to propose a viable entry strategy and marketing mix.
- Analysis of the Chinese business environment and PESTEL factors.
- Evaluation of cultural differences using the Culture Map framework.
- Determination of the optimal market entry mode (Franchising).
- Development of a strategic marketing plan (4Ps: Product, Price, Place, Promotion).
Excerpt from the Book
3.1 PESTEL Analysis
In this paragraph the political, economic, social, technological, environmental, and legal particularities of China are analysed. Due to the limited scope of this paper the PESTEL analysis focuses only on main objectives and is not elaborated in detail.
Political
Chinas is a Communist state. The country’s largest party, the CCP (Chinese Communist Party) controls all smaller parties. The current president XI Jinping is in office since 2013. He is also general secretary and central military commission chairman. In 2020 the government reinforced its political control internally and in terms of foreign policy. The biggest challenge today is the economic, social and public health impacts of the global COVID-19 pandemic. On the ranking of press freedom 2020 China ranks among the worst at rank 177 out of 180 nations. On the Freedom House index for political freedom, China is considered as “not free” and scores only 10 out of 100 points. The index evaluates factors like the electoral process, participation, freedom of expression and believe or functioning of government among others.
Summary of Chapters
1. Introduction: Presents the scope of the paper, introducing the brewery and the rationale for targeting the Chinese market.
2. Glaabsbräu Brewery: Provides a detailed company profile, focusing on its history, modernization efforts, and product portfolio.
3. Chinese Market: Offers a comprehensive analysis of China's business environment, including PESTEL factors, cultural dimensions, and specific industry trends.
4. Market Entry Strategy: Develops a strategic approach for entry, recommending franchising and detailing the adaptation of the marketing mix.
Keywords
Glaabsbräu, China, Internationalization, Market Entry Strategy, Franchising, Craft Beer, PESTEL Analysis, Culture Map, Marketing Mix, 4Ps, Business Environment, Consumer Preferences, Foreign Market Expansion, Brand Identity, Export.
Frequently Asked Questions
What is the primary focus of this paper?
This paper evaluates the internationalization strategy for the German brewery Glaabsbräu as it enters the Chinese market.
Which specific areas of the Chinese market are analyzed?
The study analyzes political, economic, social, technological, environmental, and legal factors (PESTEL) as well as cultural differences and current beer market trends.
What is the recommended market entry strategy?
The author recommends franchising as the most suitable entry mode to balance risk, cost, and brand control.
Which marketing methodology is applied?
The paper utilizes the 4Ps marketing mix framework, covering Product, Promotion, Place, and Price.
How is the German brand identity maintained in China?
The paper suggests leveraging the "Country of Origin Effect" through branding that highlights the German heritage while adapting to local social media platforms.
What are the key themes of the research?
The key themes include strategic management, cross-cultural business, international marketing, and craft beer market dynamics in China.
How does cultural distance impact the entry?
Significant cultural differences in communication, feedback, and hierarchy require careful adaptation of the brand's business approach to maintain "face" and local relationships.
Why is the Chinese market considered attractive for this brewery?
The Chinese market, particularly the craft beer segment, is growing and values foreign products as status symbols, offering potential for premium positioning.
What is the role of the "Culture Map" in the analysis?
Erin Meyer’s Culture Map is used to visualize and explain the significant cultural gaps between Germany and China regarding communication, leadership, and trust-building.
How is the pricing strategy for the Chinese market derived?
A value-based pricing strategy is proposed, benchmarking against the high average cost of craft beer in Chinese bars and adjusting for local purchasing power.
- Arbeit zitieren
- Valentina Weiß (Autor:in), 2021, International Expansion Strategy of Glaabsbraeu towards the Chinese Market, München, GRIN Verlag, https://www.grin.com/document/1003872
