The Black Sheep Brewery Plc is a traditional English brewery based in Masham, North Yorkshire. Masham is an ancient trading place for sheeps. That is reflected in the name of the brewery. The founder is Paul Theakston (today managing director), the fifth generation of a famous Masham brewer family. The brewery is divided into 4 departments: Production, Sales and Distribution, Administration and Visitor Centre with a total of 116 employees. Last year turnover added up to₤14,310,900 that result in a total gross profit of₤4,815,451. In 2006 the brewery also gets a national accolade: the Brewery of the Year title by the Good Pub Guide.
Black Sheep is a relatively young brewery; first pints of beer were sold in pubs in and around the Yorkshire Dales in October 1992. Today six ales are brewed: Black Sheep Ale, Best Bitter, Emmerdale, Riggwelter, Holy Grale and Golden Sheep. All these ales are special in their taste. The reasons are:
Crystal clear dales water from their own well
Maris Otter malted barley for extra flavour Some wheat to fortify our beers’ natural head A little roasted malt for colour and flavour
Generous amounts of whole English hops to make the beer really refreshing. (www.blacksheep.co.uk)
The ales can be bought either in bottles or cask of different size and they can be drunken in many pubs all around the world. Despite of that, Black Sheep is always open-minded about capturing new markets.
Table of Contents
1 INTRODUCTION
2 ENVIRONMENTAL ANALYSIS OF POTENTIAL MARKETS
2.1 SWOT BLACK SHEEP
2.2 PESTL EXCLUDED COUNTRIES
India
2.2.1 France
2.2.2 USA
2.3 AUSTRALIA
3 MARKET ENTRY STRATEGIES
3.1 INDIRECT EXPORT
3.2 DIRECT EXPORT
3.2.1 Agents
3.2.2 Distributors
4 INTERNATIONAL MARKETING STRATEGIES
4.1 EXPORT MARKETING MIX & THE 7 Ps
4.1.1 Product
4.1.2 Pricing
4.1.3 Promotion
4.1.4 Distribution (Place)
4.1.5 Services
4.1.6 Finance and Administration
4.1.7 Technical
Objectives and Key Themes
This assignment aims to evaluate international market expansion opportunities for The Black Sheep Brewery Plc. It conducts an environmental analysis of potential target markets and develops a suitable international marketing strategy, determining the most effective market entry method while considering the company's constraints as a small-to-medium-sized enterprise.
- SWOT analysis of Black Sheep Brewery
- PESTL environmental assessment of India, France, USA, and Australia
- Evaluation of market entry strategies (indirect vs. direct export)
- Application of the 7 Ps marketing mix for international expansion
- Financial and operational considerations for SMEs
Excerpt from the Book
2.1 SWOT Black Sheep
The SWOT Analyse focused on the internal (Strength and Weaknesses) and external (Opportunities and Threats) factors facing the organisation. External factors can not be influenced by the company. But it is important, that the management always takes potential opportunities and threats into consideration, in order that they are able to react on environmental changes as quick as possible. In contrast the weaknesses are only dependent on internal decisions. Therefore they must know about their weaknesses and strengths to operate in the most effective way.
Black Sheep has a lot of benefits from its size as a SME. Although the brewery is a very young brewery and only one of thousands it is able to continue in times when lots of breweries are crashing. With their special ales are already attracting a wide clientele in the UK and therefore and even won several prices. Although the size causes also a lot of weaknesses, Black Sheeps opportunities for expanding further on the global market can be seen as very good. When using the right strategy and considering the potential threats on the world beer market, these threats can be minimised as much as possible.
Summary of Chapters
1 INTRODUCTION: This chapter introduces The Black Sheep Brewery, its history, organizational structure, and its range of distinctive ales.
2 ENVIRONMENTAL ANALYSIS OF POTENTIAL MARKETS: This section provides a detailed SWOT analysis of the brewery and a PESTL assessment of four potential international markets.
3 MARKET ENTRY STRATEGIES: This chapter analyzes different entry methods, specifically evaluating indirect versus direct export options for an SME.
4 INTERNATIONAL MARKETING STRATEGIES: This section outlines the export marketing mix and applies the 7 Ps framework to guide the brewery's international strategy.
Keywords
Black Sheep Brewery, International Marketing, SWOT Analysis, PESTL Framework, Market Entry Strategies, Indirect Export, Direct Export, Export Marketing Mix, 7 Ps, SME, Global Expansion, Beer Market, Trade Barriers, Distribution, International Strategy
Frequently Asked Questions
What is the primary focus of this assignment?
The assignment focuses on developing an international marketing and market entry strategy for The Black Sheep Brewery Plc, a traditional English brewery.
Which countries are analyzed as potential markets?
The document evaluates India, France, the USA, and Australia using the PESTL framework.
What is the main objective of the brewery's expansion?
The objective is to explore international growth opportunities while effectively leveraging the brand's unique selling points and managing its SME limitations.
Which scientific model is used for the market analysis?
The document utilizes the SWOT analysis for the company and the PESTL framework for environmental scanning of potential countries.
What does the main body cover?
It covers the environmental analysis, evaluation of various market entry strategies, and a comprehensive application of the 7 Ps marketing mix.
What are the primary characteristics of the brewery?
Black Sheep is defined by its traditional brewing methods, distinctive ale flavors, and its status as a small-to-medium-sized enterprise.
Why is Australia considered an attractive market compared to the others?
Australia is deemed more attractive due to English being the official language, the similarity of the drinking culture, and the absence of complicated trade laws.
What role do Export Management Companies (EMCs) play in the proposed strategy?
EMCs are recommended as an initial entry step to minimize risks and costs while testing the product's acceptance in the foreign market.
What is the significance of the "12 c Framework"?
The 12c framework is used in the appendix to synthesize and compare data points like country, concentration, culture, and consumption across the four target markets.
- Quote paper
- Sabine Schulz (Author), 2007, Market Entry Strategy Black Sheep Brewery, Munich, GRIN Verlag, https://www.grin.com/document/71803
