This thesis represents an in-depth market insight on the German beverage market for the American company Zevia. Considering the theoretical background particularly focusing on the issue of standardization or adaptation of an international marketing strategy, the author suggests in the event of entering the German market to especially adapt 3 out of the 4 marketing mix elements, namely price, promotion and place. Special attention should be drawn to an alteration of Zevia’s promotion and price policies.
However, the German beverage market constitutes a tough external environment for the realization of a market penetration and awareness creation for Zevia’s soft drink. Overall the German market can be described as saturated, diversified and one conferring high bargaining power to supermarkets. All these factors represent an obstacle for Zevia to enter this market, despite the German food and beverage industry being highly receptive to new and innovative products.
This openness derives from the trend detected in Germany (and globally) towards the increased request for health and wellness products. However apparently despite this trend the German market for low calorie lemonades is declining and the perception of stevia as a sweetener is rather negative. These facts have also been proven in a thesis intern online survey.
Zevia is recommended to only penetrate the German beverage market under specific circumstances named in this thesis while considering the author’s proposals in reference to its marketing mix elements.
Table of Contents
1. Introduction
2. Theoretical Framework
2.1 International Marketing
2.2 Influential voices in the academic field of international marketing
2.3 Entering a Foreign Market
2.4 Relevance for Zevia
3. Description of the problem/task
4. Company Profile
4.1 Company Overview
4.2 The Brand and the Product
4.3 Core Consumer
4.4 Competitive Advantage
4.5 Price
4.6 Placement
4.7 Promotion
5. Macro Environment (PESTLE Analysis)
5.1 Political Factors
5.1.1 Government Type and Stability
5.1.2 Corruption
5.2 Economic Factors
5.2.1 Trade
5.2.2 Import and Sales Regulations
5.2.3 Corporate Taxation
5.2.4 Business cycle and economic growth
5.2.5 Currency
5.2.6 Minimum working wage
5.2.7 Unemployment
5.3 Socio-economic Factors
5.3.1 Population demographics
5.3.2 Cultural diversity/homogeneity
5.3.3 Definition of Culture
5.3.4 Hofstede’s Modell – an attempt to compare cultures
5.3.5 Household Income Distribution
5.4 Technological Factors
5.4.1 Online retailing
5.4.2 Stevia extraction
5.5 Legal Factor
5.5.1 Intellectual Property Law in Europe
5.5.2 Registration Process of new food and beverage products
5.6 Environmental Factor
6. Micro Environment
6.1 Stevia as an alternative sweetener
6.2 Stevia as a possible solution to obesity
6.3 Global growth for stevia products due to its functionality in weight management
6.4 Global Market growth for Stevia as a sweetener in Soft Drinks
6.5 Soft Drink Market Development in Germany
6.6 Increasing Demand of health and wellness products in Germany
6.7 Trends on the German soft drink market
6.8 Market specifications of the German soft drink market
6.9 Recent Beverage Market Developments in Germany
7. Competition
7.1 Competitors in category “natural soft drinks” on German market
7.2 Competitors in category “stevia sweetened soft drinks” on German market
7.3 International competition for Zevia with focus on US
8. SWOT Analysis – Examining the market and company features
9. Exploratory Research
9.1 Instruments
9.2 Piloting
9.3 Sample and participants
9.4 Ethics
10. Overall Results
10.1 General Impressions | Overview
10.2 Impact
10.3 Healthy Lifestyle
10.4 Foodstuff Ingredients
10.5 Drinking Habits
10.6 Buying Behavior
10.7 Packaging
10.8 Sweeteners (focus on stevia)
10.9 Pricing
10.10 Taste Preferences
11. Conclusion
11.1 Market implications
11.2 Suggestions for Marketing Mix elements
11.2.1 Product
11.2.2 Price
11.2.3 Place
11.2.3.1 “Opinion leaders”
11.2.3.2 Gastronomy industry
11.2.3.3 Convenience Stores
11.2.3.4 Online (with physical presence)
11.2.3.5 Supermarkets/Discounters and Vending Machines
11.2.4 Promotion
11.2.4.1 Website and other online channels
11.2.4.1.1 Website
11.2.4.1.2 Social Media
11.2.4.1.3 Newsletter
11.2.4.2 Physical Presence as a sponsor
11.2.4.3 Collaboration with magazines and bloggers
11.3 Limitations and Final Recommendations
11.3.1 Research Limitations
11.3.2 Overall implications and further studies
Research Objective and Core Themes
The primary objective of this thesis is to provide a comprehensive market analysis of the German soft drink industry to determine if Zevia, an American zero-calorie soda producer, should implement a market penetration and awareness strategy to enter the German market. The study evaluates the external and internal business environments to assess potential risks, competitive conditions, and consumer receptivity toward stevia-sweetened beverages in Germany.
- Strategic analysis of international marketing, focusing on standardization versus adaptation.
- Comprehensive PESTLE analysis of the German market, including legal and economic barriers.
- Micro-environment analysis, including competitive landscape and growth trends for healthy beverages.
- Exploratory research via online survey to understand German consumer habits and perceptions of stevia.
- Strategic recommendations for the marketing mix (product, price, place, and promotion) tailored for a potential German market entry.
Excerpt from the Book
International Marketing
International marketing can be defined as traditional marketing, but has to be implemented on a larger scale, with an increased amount of uncontrollable elements and a higher uncertainty and therefore more potential risks.
A company aspiring to enter a foreign market has to formulate a new strategy in regards to the marketing mix elements after the conduct of in-depth research on the market it is about to enter (Kotler & Armstrong, 2010, p. 578f). Root defines entering a foreign market as: “an institutional arrangement that makes possible the entry of a company’s products, technology, human skills, management or other resources into a foreign country” (1987, p.5).
An international marketing strategy primarily consist of decisions on how to maintain or change the current elements of the marketing mix consisting of (a) brand name, (b) advertising and promotion, (c) product, (d) packaging, (e) pricing, (f) sales and distribution channels, (g) customer service and (h) the online channels (Birnik & Bowman, 2007, p.307).
Summary of Chapters
Introduction: This chapter outlines the thesis objective, which is to provide Zevia with an in-depth market analysis of the German beverage sector to determine the viability of a market entry strategy.
Theoretical Framework: This section explores the academic literature surrounding international marketing, specifically focusing on the debate between standardization and adaptation of marketing strategies when entering foreign markets.
Description of the problem/task: This chapter defines the core challenge for Zevia, which is to establish brand awareness and market share in the highly saturated and competitive German soft drink market.
Company Profile: This section details Zevia’s origins, its zero-calorie product portfolio, and its established competitive advantages within the American market.
Macro Environment (PESTLE Analysis): This chapter provides an extensive analysis of the external factors in Germany, including political stability, economic indicators, socio-economic trends, and strict EU-wide food regulations.
Micro Environment: This section examines the specific market conditions for low-calorie and stevia-sweetened products in Germany, analyzing consumer health trends and the overall development of the German beverage industry.
Competition: This chapter identifies the 45 main competitors in the German "natural soft drink" and "stevia-sweetened" categories, highlighting the difficulty smaller brands face in securing distribution.
SWOT Analysis – Examining the market and company features: This section synthesizes the internal strengths and weaknesses of Zevia with the external opportunities and threats presented by the German market.
Exploratory Research: This chapter describes the methodology of an online survey conducted to gather primary data on German consumer drinking patterns and attitudes toward stevia.
Overall Results: This chapter presents the findings of the survey, revealing key insights into German beverage preferences, the negative perception of stevia, and current buying behaviors.
Conclusion: This final chapter summarizes the findings, advising a cautious approach to market entry while suggesting specific strategic adaptations for the marketing mix if Zevia decides to proceed in the future.
Keywords
International Marketing, Zevia, Germany, Soft Drink Market, Market Penetration, Stevia, Consumer Behavior, PESTLE Analysis, Standardization, Adaptation, Healthy Lifestyle, Beverage Industry, Marketing Mix, Market Entry, SWOT Analysis
Frequently Asked Questions
What is the primary goal of this thesis?
The thesis aims to assess whether Zevia should enter the German market, providing an in-depth analysis of the external market conditions and internal requirements to develop a successful penetration strategy.
What are the central themes discussed in the work?
The work covers international marketing strategy, the German regulatory and competitive environment, and the analysis of consumer behavior regarding healthy, low-calorie beverages.
What is the core research question?
The core research centers on determining if Zevia can successfully adapt its marketing mix to the saturated German market, considering the prevailing negative image of stevia and strong competition from local brands.
Which scientific methods were used in the research?
The author utilized a PESTLE analysis, a SWOT analysis, a competition analysis, and conducted an exploratory online survey of 131 participants living in Germany.
What is covered in the main section of the document?
The main section covers the theoretical foundations of global marketing, a comprehensive PESTLE and SWOT analysis of Germany, a detailed look at the German soft drink landscape, and primary research on consumer perceptions.
Which keywords best characterize the research?
Key terms include International Marketing, Market Penetration, Germany, Soft Drink Industry, Stevia, Consumer Behavior, and Marketing Mix Strategy.
Why is the German market considered difficult for Zevia?
The market is highly saturated, retailers have significant bargaining power, and there is a documented cultural skepticism toward stevia and artificial sweeteners among the German population.
What recommendation does the author give for the marketing mix?
The author recommends adapting the price, promotion, and place (distribution) strategies to better align with local German cultural and competitive realities, while maintaining a consistent product identity.
- Citar trabajo
- Viktoria Arnold (Autor), 2016, The development of an international marketing strategy for ZEVIA on the Soft-Drink market in Germany, Múnich, GRIN Verlag, https://www.grin.com/document/342094
