The overview of the whole process that enabled us to suggest the final
candidate country for the future business expansion in Europe presents steps that
our consulting team had to take in order to present the best possible option.
According to our consulting team, Germany presents the strongest
advantages for OBUL and should be chosen as the ideal for the business operation
and also the base for the further European expansion. Thanks to the highest size of
population in Europe and its overall wealthy condition from the very beginning of
our analysis Germany became one of the possible final candidates.
However, during the whole process of defining attractiveness of individual
markets, several other countries also presented strong advantages for the future
investment. The strongest advantages were shown by Spain and Italy which
presented nearly the same result in the evaluating process than Germany did.
In the final stage of the analysis Germany was selected form the group of
four strongest European candidates. These were also Ireland, Italy and Spain. All of
the candidate countries presented very strong and attractive beer markets in terms
of beer and alcohol consumption as well as the GNI PPP income per capita.
Moreover, the analysis of the infrastructure, legal and political environment also
proved that these countries were the top four; amongst all of the candidate countries
that were analyzed at the beginning of the selection process (42 countries took part
in the first step of the selection, 27 in the second).
Germany proved to be the best possible choice for the future business
expansion in Europe. The analysis showed that the German market was more
attractive for OBUL in three main areas of operation: market viability, commercial
viability and technical feasibility.
The analysis of the market viability as the most important area for a market
entry showed, that the German beer market was very attractive in terms of its size
and trends that appeared in it. Moreover, the overall financial situation of the
customers was also considered to be strongly attractive.
In terms of the commercial viabilities, Germany also presented its strong
position. Even though, the corporate tax was defined as a very high, the market size
and its potential should compensate loses that company will have to face in terms of
the taxation.
Finally, Germany’s infrastructure also confirmed to be well established and
will definitely be able to cope with needs of OBUL.
Inhaltsverzeichnis (Table of Contents)
- TABLE OF CONTENTS.
- DECLARATION ON PLAGIARISM
- LIST OF TABLES
- EXECUTIVE SUMMARY.
- PURPOSE AND OBJECTIVES OF THE PROJECT
- BACKGROUND AND ISSUES.
- BACKGROUND.
- 1.
- 2.
- 2.1.
- 2.2.
- ISSUES..
- 2.2.1. Market viability.
- 2.2.2. Commercial viability.
- 2.2.3. Technical feasibility.
- LITERATURE REVIEW
- 3.1. ENTRY STRATEGIES FOR INTERNATIONAL MARKETS BY FRANKLIN R. ROOT....12
- 3.2. GLOBAL MARKETING MANAGEMENT BY W. KEEGAN
- 3.3. GLOBAL MARKETING STRATEGY BY SUSAN P. DOUGLAS AND C. SAMUEL CRAIG. 13
- 3.4. GLOBAL MARKETING STRATEGY BY J.P. JEANNETT AND H. D. HENNESSEY ....14
- 3.5. MARKETING IN THE INTERNATIONAL ENVIRONMENT BY E. CUNDIFF AND M. T. HILGER 15
- 3.6. GLOBAL MARKETING BY SVEND HOLLENSEN
- 3.7. INTERNATIONAL MARKETING' BY L. S. WALSH
- THE QUESTIONS
- 4.1. CONSUMER
- 4.2. COMPETITORS.
- 4.3. MERCHANTS
- 4.4. INDUSTRY
- 4.5. LEGAL..
- 4.6. POLITICAL
- 4.7. FINANCIAL
- 4.8. INFRASTRUCTURE
- 4.9. DISTRIBUTION.
- METHODOLOGY
- 5.1. THE INDEXES
- 5.1.1. The indexes for the screening.
- 5.1.1.1. Market viability
- 5.1.1.2. Commercial Viabilities.
- 5.1.1.3. External Technical feasibilities
- 5.1.2. The sub indexes for the screening
- 5.1.2.1. Sub index consumers:.
- 5.1.2.2. Sub index merchants:.
- 5.1.2.3. Sub index competitors:
- 5.1.2.4. Sub index industry
- 5.1.2.5. Sub index Political.
- 5.1.2.6. Sub index Legal.
- 5.1.2.7. Sub index Financial
- 5.1.2.8. Sub index Infrastructure.
- 5.1.2.9. Sub index Distribution
- 5.2. THE CRITERIA
- 5.2.1. The criteria for the preliminary and secondary screenings
- 5.2.1.1. Population size.
- 5.2.1.2. Market size
- 5.2.1.3. Market growth
- 5.2.1.4. GNI per capita
- 5.2.1.5. GNI growth rate.
- 5.2.1.6. Alcohol consumption.
- 5.2.1.7. Political stability.
- 5.2.1.8. Corruption level.
- 5.2.2. The Criteria for the third screening.
- 5.2.2.1. Criteria concerning consumers index.
- Market Size..
- Market growth
- GNI PPP per capita...
- GNI PPP growth per capita..
- Alcohol consumption...
- Percentage of habitants employed in agriculture
- 5.2.2.2. Criteria concerning merchants index
- 5.2.2.3. Criteria concerning competitors index.
- Proportion between beer sales in retail and gastronomy.
- Market share of the market leader
- Market share of the top three market leaders.
- Number of competitors...
- Market share of local breweries.
- Market share of foreign breweries.
- Market growth of foreign breweries.
- 5.2.2.4. Criteria concerning the industry index.
- Average price in the retail channel.
- Average price in the gastronomy channel.
- 5.2.2.5. Criteria concerning Political index
- Taxes
- Political stability.
- 5.2.2.6. Criteria concerning Legal index.
- FDI index.
- Inflation.
- Corruption
- 5.2.2.7. Criteria concerning Financial index
- 5.2.2.8. Criteria concerning Infrastructure.
- Motorway/inhabitant
- Railway/inhabitant.
- Harbour and airport/inhabitant
- 5.2.2.9. Criteria concerning distribution index
- Number of retailers....
- Number of wholesalers.
- Number of gastronomies
- 5.3. WEIGHTS
- 5.3.1. Weights for the preliminary and secondary screening.
- 5.3.1.1. Market size and market growth – the weight of 0.25.
- 5.3.1.2. GNI per capita in PPP basis –the weight of 0.13
- 5.3.1.3. GNI growth rate - the weight of 0.12.
- 5.3.1.4. Alcohol consumption – the weight of 0.10
- 5.3.1.5. Political stability - the weight of 0.1
- 5.3.1.6. Corruption level -0.08.
- 5.3.2. Weights for the third screening
- 5.3.2.1. Market Viability - the weight of 70%.
- Consumer index - the weight of 35%.
- Market size - the weight of 25%.
- Market Growth - the weight of 25%
- GNI PPP per capita - the weight of 13%.
- GNI PPP per capita growth rate – the weight of 12%.
- Alcohol consumption - the weight of 10%..
- % of habitants employed in agriculture - the weight of 15%
- Competitor index - the weight of 35%.
- Market share of number 1 competitor - the weight of 25%.
- Market share of the top 3 competitors - the weight of 25%
- Number of competitors - the weight of 25%.
- Market share of local breweries – the weight of 5%.
- Market share of foreign breweries - the weight of 5%.
- Industry index - the weight of 15%..
- Market share growth rate of foreign breweries - the weight of 15%.
- Merchant index – the weight of 15%.
- Average beer price by gastronomy - the weight of 50%.
- Average beer price by retailers - the weight of 50%
- The commercial viability – the weight of 15%
- The legal index - the weight of 80%.
- Taxes - the weight of 80%.
- Corruption the weight 10%.
- FDI - the weight of 10%.
- The political index - the weight of 10%.
- The financial index - the weight of 10%
- The external technical feasibility – the weight of 15%
- The infrastructure index - the weight of 20%.
- Airports per habitant - the weight of 25%.
- Ports per habitant - the weight of 25%.
- Railway per habitant - the weight of 25%.
- Km highway per habitant – the weight of 25%.
- The distribution index - the weight of 80%.
- No of retailers - the weight of 50%.
- No of wholesalers – the weight of 50%.
- 5.4. HOW TO CLASS?
- 5.5. HOW TO GET THE DATA..
- 5.6. THE COUNTRIES
- 5.7. PRELIMINARY SCREENING
- 5.7.1. Selecting 47 countries
- 5.7.2. Access to the relevant data.
- 5.7.3. Countries distinction
- 5.8. SECONDARY SCREENING.
- 5.8.1. Describing and defining all criteria..
- 5.8.2. Which criteria for the Secondary Screening?.
- 5.8.3. Why these Criteria for Secondary Screening?.
- 5.8.4. Results of the Secondary Screening..
- 5.9. THIRD SCREENING
- 5.9.1. Describing and defining the third screening process.
- 5.9.2. Which criteria for the screening..
- 5.9.3. Result of the screening process.
- 5.10. OVERVIEW OF THE SCREENING STEPS..
- 6. ENTRY MODE.
- 6.1. EXPORTING
- 6.2. LICENSING/FRANCHISING
- 6.3. JOINT VENTURE
- 6.4. CREATION OF THE SUBSIDIARY
- 7. APPENDIX
- 7.1. APPENDIX I: ABOUT THE PRELIMINARY SCREENING
- 7.2. APPENDIX II: ABOUT THE SECONDARY SCREENING.
- 7.2.1. The countries and Criteria
- 7.2.1.1. Market Size...
- 7.2.1.2. Forecast of the beer consumption 2003
- 7.2.1.3. Market Growth
- 7.2.1.4. GNI Growth Rate in %
- 7.2.2. The weighted points.
- 7.2.2.1. Market size
- 7.2.2.2. Market Growth
- 7.2.2.3. GNI per Capita..
- 7.2.2.4. GNI growth rate.
- 7.2.2.5. Alcohol Consumption.
- 7.2.2.6. Political Stability
- 7.2.2.7. Corruption......
- 7.2.3. Evaluation of the countries..
- 7.3. APPENDIX III: ABOUT THE THIRD SCREENING
- 7.3.1. The calculation of the sub indexes and indexes..
- 7.3.1.1. The result..
- 7.3.1.2. Overview of the calculation.
- 7.3.2. Calculation of the weighted points per criteria.
- 7.3.2.1. Consumer Index..
- 7.3.2.2. The merchant Index
- 7.3.2.3. Competitor index
- 7.3.2.4. The industry index.
- 7.3.2.5. The legal index
- 7.3.2.6. The political index
- 7.3.2.7. The financial index
- 7.3.2.8. The infrastructure index.
- 7.3.2.9. The distribution index.
- 7.4. APPENDIX IV: THE DIARY
- 7.4.1. Diary of the Proposal Phase.
- 7.4.2. Diary of the interim report phase..
- 7.4.3. Diary of the final report phase.
- 8. REFERENCE LIST
- 8.1. REFERENCES FROM THE INTERNET
- 8.2. REFERENCES FROM BOOKS...
- Analyzing the European beer market potential
- Identifying the country with the highest unrealised market potential
- Developing a market entry strategy for OBUL
- Applying a multi-dimensional screening approach to assess market viability, commercial viability, and technical feasibility
- Exploring various entry modes such as exporting, licensing/franchising, joint ventures, and subsidiary creation
- Purpose and Objectives of the Project: This chapter defines the project's objective, which is to analyze the European beer market and identify the country with the highest unrealised market potential for OBUL.
- Background and Issues: This chapter introduces the background of the project, including a general overview of the beer industry, and outlines the main issues related to market entry, including market viability, commercial viability, and technical feasibility.
- Literature Review: This chapter reviews relevant literature on international marketing, specifically focusing on entry strategies for international markets. This review provides a theoretical foundation for the analysis.
- The Questions: This chapter outlines key questions related to various factors that need to be considered for a successful market entry strategy, such as consumer behavior, competition, merchant dynamics, industry structure, legal regulations, political environment, financial considerations, infrastructure, and distribution channels.
- Methodology: This chapter details the methodology used in the project, including the indexes and criteria employed to screen potential markets. This chapter covers the preliminary, secondary, and third screening stages and explains the weighting system applied to various factors.
- Entry Mode: This chapter presents the various entry modes considered for OBUL, such as exporting, licensing/franchising, joint ventures, and subsidiary creation, outlining the advantages and disadvantages of each option.
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This project aims to analyze the market potential of the European beer market, specifically identifying the country with the highest unrealised market potential for a fictional company, OBUL. The project will then use these findings to recommend a foreign market entry strategy for the company.
Zusammenfassung der Kapitel (Chapter Summaries)
Schlüsselwörter (Keywords)
The key concepts and focus areas of this study include European beer market, market potential analysis, foreign market entry strategy, market viability, commercial viability, technical feasibility, screening process, entry modes, and international marketing.
- Quote paper
- Endrik Hasemann (Author), Andreas Spors (Author), 2004, Which of the Europe's Beer Markets offers the highest unrealised Market Potential? , Munich, GRIN Verlag, https://www.grin.com/document/44204