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.
Table of Contents
1. PURPOSE AND OBJECTIVES OF THE PROJECT
2. BACKGROUND AND ISSUES
2.1. BACKGROUND
2.2. ISSUES
2.2.1. Market viability
2.2.2. Commercial viability
2.2.3. Technical feasibility
3. LITERATURE REVIEW
3.1. ENTRY STRATEGIES FOR INTERNATIONAL MARKETS BY FRANKLIN R. ROOT
3.2. GLOBAL MARKETING STRATEGY BY SUSAN P. DOUGLAS AND C. SAMUEL CRAIG.
3.3. GLOBAL MARKETING STRATEGY BY J.P. JEANNETT AND H. D. HENNESSEY
3.4. MARKETING IN THE INTERNATIONAL ENVIRONMENT BY E. CUNDIFF AND M. T. HILGER
3.5. GLOBAL MARKETING MANAGEMENT BY W. KEEGAN
3.6. GLOBAL MARKETING BY SVEND HOLLENSEN
3.7. INTERNATIONAL MARKETING’ BY L. S. WALSH
4. 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
5. 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
5.2.2.2. Criteria concerning merchants index
5.2.2.3. Criteria concerning competitors index
5.2.2.4. Criteria concerning the industry index
5.2.2.5. Criteria concerning Political index
5.2.2.6. Criteria concerning Legal index
5.2.2.7. Criteria concerning Financial index
5.2.2.8. Criteria concerning Infrastructure
5.2.2.9. Criteria concerning distribution index
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%
5.3.2.2. Consumer index – the weight of 35%
5.3.2.3. Competitor index – the weight of 35%
5.3.2.4. Merchant index – the weight of 15%
5.3.2.5. Industry index – the weight of 15%
5.3.2.6. The commercial viability – the weight of 15%
5.3.2.7. The legal index – the weight of 80%
5.3.2.8. The political index – the weight of 10%
5.3.2.9. The financial index – the weight of 10%
5.3.2.10. The external technical feasibility – the weight of 15%
5.3.2.11. The infrastructure index – the weight of 20%
5.3.2.12. The distribution index – the weight of 80%
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
Project Goals and Themes
The primary goal of this project is to perform a comprehensive market potential analysis of European countries to provide a strategic recommendation for the market entry of the fictive beer company OBUL. The research focuses on determining which European nation offers the highest unrealized market potential based on critical viability factors.
- Market viability (consumer, competitor, and industry structure analysis)
- Commercial viability (legal, political, and financial environment assessments)
- Technical feasibility (distribution and infrastructure evaluation)
- Development of a weighted screening framework to identify and rank potential target countries
- Strategic recommendations for foreign market entry modes
Excerpt from the Book
2.1. Background
Overseas Beer Union Ltd. was the result of a merger between the South African Company “Trinkmeister Brew”, founded in Cape Town, South Africa in 1905 by Klaus-Peter-Willhelm Trinkmeister and the Canadian company “Pijany Brew”, founded in Montreal, Canada in 1919 by Gregor Pijany, in 1970. Until the merger, both family owned companies signalized mediocrity. Since the merger, the company is reorganized as a public limited company, has its office in Montreal and become a big northern American and South African player in the beer industry.
Because of the latest success, OBUL wants to expand its beer’s to the European market to confirm its leading position worldwide and to find a new main pillar outside America and South Africa.
Chapter Summaries
1. Purpose and Objectives of the project: Outlines the project's goal to evaluate European beer markets for OBUL's entry.
2. Background and issues: Introduces the company history and defines the core issues: market viability, commercial viability, and technical feasibility.
3. Literature Review: Provides an academic overview and critique of existing international marketing and entry strategy frameworks.
4. The Questions: Details the research questions developed to guide the screening and evaluation of European markets.
5. Methodology: Explains the structured approach to finding the target market, including criteria, weighting systems, and the three-stage screening process.
6. Entry mode: Compares various market entry strategies to determine the most suitable option for OBUL after the target country has been selected.
Keywords
Market potential analysis, European beer market, OBUL, international market entry, market viability, commercial viability, technical feasibility, screening process, weighted criteria, international marketing, business expansion, competitor analysis, distribution channels, infrastructure, GNI per capita.
Frequently Asked Questions
What is the core purpose of this project?
The project evaluates European countries to determine which market offers the highest potential for OBUL, a beer company looking to establish a new main pillar in Europe.
Which areas are central to the analysis?
The analysis focuses on three main pillars: market viability, commercial viability, and external technical feasibility.
What is the primary objective or research question?
The primary research question is: "Which of the Europe’s Beer Markets offers the highest unrealised Market Potential?"
What scientific methodology is used?
The team uses a three-stage screening process (preliminary, secondary, and third screening) based on weighted criteria derived from literature, internet research, and expert intuition.
What topics are covered in the main section?
The main section covers literature reviews on entry strategies, the formulation of specific research questions for various business environments, and the step-by-step methodology for country selection.
Which keywords define this work?
Key terms include market potential analysis, OBUL, market entry, weighted criteria, and international marketing.
How is the market viability index determined?
The market viability index is determined through a detailed analysis of consumers, competitors, merchants, and the specific industry structure in the candidate countries.
Why was Germany selected as the recommended country?
Germany was identified as the top choice due to its high population, favorable market viability, strong commercial environment, and well-established infrastructure, which were confirmed through the three-stage screening process.
- 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
