The thesis on hand is dealing with the rather specific issue of the export business of the German brewery Herforder, which considers to market its product branch “beer-mixtures” in Sweden. Within the thesis, there are presented three possible distribution channel designs, consisting for example of the manufacturer, can-supplier, contract-bottlers, importers and transportation companies.
Each channel opportunity is described and the reasons that influence the decision for or against one particular channel are explained. Furthermore, the theoretical background is given, which exemplifies why companies start to consider internationalisation and how they can cope with the related challenges. The exporting issue is observed from a theoretical point of view and supplemented with much information concerning relationships within distribution channels. Two aspects which are very important for international trade are also investigated theoretically. Firstly there is the production aspects of beverages respectively beer and beermixtures including requirements for packaging and the production process itself. And secondly there is the transportation aspect including some information about IT systems. With respect to the target market Herforder aims at, there is one special chapter about the Swedish market, its constraints and its peculiarities in connection with alcohol import. Moreover, the high-sophisticated return system for beverage repositories in Sweden is discussed in this context.
In the empiricism potential companies that are suitable to make up the export distribution channel Herforder desires are presented in detail. The empirical part finalises with the setting up of three distribution channels which are determined through the location of bottling facilities.
Table of Contents
1. Introduction
1.1. Background - Change Is The Only Constant
1.2. Problem Discussion - At the Crossroads
1.3. Purpose - The Thesis’ Intention
1.4. Limitations - Flagging the Claim
1.5. Theoretical and Practical Relevance
1.5.1. Theoretical Relevance
1.5.2. Practical Relevance
1.6. Definitions
2. Methodology
2.1. Preunderstanding
2.1.1. General Knowledge
2.1.2. Specific Knowledge
2.1.3. Personal Attributes
2.2. Research Journey
2.3. Scientific Perspectives (Positivistic / Hermeneutics)
2.4. Research Approach (Quantitative / Qualitative)
2.5. Research Approach (Deductive / Inductive / Abductive)
2.6. Research Strategy (Survey / Archival Analysis / Case Study)
2.7. Data Collection
2.7.1. Theoretical Data Collection
2.7.2. Empirical Data Collection
2.8. Value of the Study
2.8.1. Construct Validity
2.8.2. Internal Validity
2.8.3. External Validity
2.8.4. Reliability
3. Theory
A - International Trade
3.1. Going Global
3.2. Triggers for Internationalisation
3.3. International Distribution Channel Strategies
3.4. Distribution Channel Design
B - Exporting
3.5. Market Entry Forms
3.6. Partnerships and Alliances in the Exporting Business
3.6.1. Strategic Partnerships
3.6.2. Alliances in Fast Moving Consumer Goods Industry
3.6.3. Retailer – Supplier Partnerships (RSP)
3.7. International versus Regional Products
3.8. Location Selection
C - Requirements for Beverage Export
3.9. Production Aspects
3.9.1. Packaging
3.9.2. Postponement
3.9.3. Intermediaries in a Grocery Distribution Channel
3.10. Transportation Aspects
3.10.1. International Transportation
3.10.2. Importance of Inexpensive Transportation
3.10.3. Company Controlled Transportation
3.10.4. The Influence of New Technologies on Export
4. The Swedish Market
4.1. The Procurement Side
4.1.1. Population in Southern Sweden
4.1.2. Beer Consumption Statistics
4.1.3. Swedish Government Monopoly
4.1.4. Alcohol Tax
4.1.5. Import Ordinances
4.1.6. Value Added Tax (VAT)
4.2. The Return Side
5. Empirical Data
5.1. Herforder Brewery – Company Description
5.2. The Bottling as a Major Business in the Export Channel
5.2.1. Ball Packaging Europe GmbH
5.2.2. DIS (Dranken Industry Sittard)
5.2.3. Fuglsang Brewery
5.2.4. Åbro Brewery
5.3. Coordination in Sweden
5.3.1. Galatea Spirits AB
5.3.2. ICA Sverige AB
5.4. Transportation Issues
5.4.1. DHL
5.4.2. Hoyer Transportation Company
5.5. Distribution Channel Overview
5.5.1. Bottling at DIS
5.5.1. Bottling at DIS
5.5.2. Bottling at Fuglsang
5.5.3. Bottling at Åbro
6. Analysis
6.1. Market Analysis
6.2. Location Analysis
6.3. Cost Analysis
6.4. Channel Analysis
6.4.1. First Channel: Herford - Sittard – Sweden
6.4.2. Second Channel: Herford - Denmark - Sweden
6.4.3. Third Channel: Herford – Åbro - Sweden
6.5. Product Analysis
6.6. Technology Analysis
6.7. Analysis about Relationships in the Beverage Industry
7. Conclusion
7.1. Results and Possible Use
7.2. Generalisations
7.3. Reflections and Critics
7.4. Suggestions for Further Research
Research Objectives & Topics
The primary objective of this thesis is to identify and design an appropriate distribution channel for exporting beer-mixtures from the German brewery Herforder to the Swedish market. The research investigates how a medium-sized brewery can overcome logistical challenges and supply constraints to enter a foreign market, specifically addressing the bottleneck of independent contract-filling for canned beverages.
- Distribution channel design and strategies for international export.
- Analysis of specific requirements for the Swedish beverage market, including the government monopoly and recycling systems.
- Strategic bottling and production alternatives for canned beer-mixtures.
- Logistical optimization and transportation cost analysis for international beverage distribution.
Book Excerpt
3.6. Partnerships and Alliances in the Exporting Business
Decisions concerning the selection of channel intermediaries, and then subsequently working with them, are effectively forming a strategic partnership. The essence of successful partnerships is the extent of interdependence between the partners. The purpose of entering into a strategic partnership is to achieve objectives that otherwise could not be realised and to reduce the overall risk of a project while increasing the return on investment. At the same time the partnership will aim to maximise the utilisation of scarce resources.
In strategic partnerships or alliances the emphasis is on cooperation and partnership between the parties, not competition and conflict, as the basis upon which a joint competitive advantage is developed. This approach stresses the development of trust, the sharing of information and the common interest between channel members.
In academic research it has been discovered, that the above mentioned relation between channel members is not reached in most distribution channels. The result is that it takes long time to develop close partnership relationships. Differences in perceptions, practice, or philosophy are the main differences why alliances or partnerships fail. The most challenging task concerning this development is that internal teamwork between all the disciplines is required for co-operations within a distribution channel.
But only if this development is successfully managed a complete distribution channel can be effectively designed. Clearly, the objective of the channel, be it transaction, physical distribution or a combination of both, is to develop an optimal situation whereby the value delivered to the customer or end user meets precisely their requirements, neither more nor less than that required to obtain a target volume of business. Consequently, it is important to analyse the whole distribution channel when aiming on export.
Summary of Chapters
1. Introduction: This chapter establishes the background of declining domestic market growth for German breweries and defines the research goal of developing an export distribution channel to Sweden.
2. Methodology: The authors describe their qualitative and inductive research approach, emphasizing the use of case studies and empirical data collected from industry partners.
3. Theory: This section covers foundational concepts of international trade, market entry strategies, distribution channel design, and specific requirements for the beverage industry.
4. The Swedish Market: An overview of the specific regulatory environment in Sweden, focusing on the alcohol monopoly (Systembolaget), tax regulations, and the sophisticated deposit return system.
5. Empirical Data: Presents findings from interviews with stakeholders like Herforder Brewery, can producers, bottlers, and transport companies to evaluate potential distribution configurations.
6. Analysis: Evaluates the proposed distribution channels using cost and sensitivity analyses, concluding with recommendations for managing channel relationships.
7. Conclusion: Summarizes the thesis results through a decision factor overview and provides final strategic recommendations regarding the most effective bottling and distribution path.
Keywords
distribution channel, export, Sweden, beverages, grocery, Herforder Brewery, beer-mixtures, logistics, contract-filling, transportation, strategic partnership, packaging, retail, Systembolaget, Supply Chain Management
Frequently Asked Questions
What is the core subject of this thesis?
The thesis addresses the specific export challenges faced by the German brewery Herforder, which aims to enter the Swedish market with its "beer-mixture" product line.
What are the central themes discussed?
The work focuses on international distribution channel design, beverage production logistics, market entry strategies, and overcoming industry-specific constraints like the Swedish alcohol monopoly.
What is the primary research goal?
The goal is to determine the most viable distribution channel for Herforder's beer-mixtures by analyzing various bottling and transportation alternatives.
Which research methodology is employed?
The authors utilize a qualitative case study approach, combining theoretical analysis with empirical data gathered through direct interviews with industry professionals.
What topics are covered in the main body?
The main body examines the theoretical background of international trade, the specific regulatory landscape of the Swedish market, and a comparative analysis of three distribution channels involving different bottling partners.
Which keywords best describe this study?
Key terms include distribution channel, export, Sweden, beer-mixtures, logistics, contract-filling, and strategic partnerships.
Why is the "can-deposit" law in Germany significant to the research?
The German deposit law caused a downswing in the domestic can market, forcing the authors to investigate alternative bottling solutions abroad to fulfill the specific packaging requirements of the Swedish market.
What is the role of the "Swedish Government Monopoly" in the export strategy?
The monopoly (Systembolaget) significantly restricts how alcohol can be sold in Sweden, serving as a critical environmental constraint that impacts the choice of distribution partners and marketing strategies.
- Quote paper
- M.Sc., Dipl.Oec. Susanne Wemken (Author), Andreas Eckert (Author), 2004, Channel Design for the European Trade with Beverages - A Case Study about Beer-Mixtures, Munich, GRIN Verlag, https://www.grin.com/document/45844
