1. Introduction
“International marketing is the multinational process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational objectives.”
(Onkvisit and Shaw, 1997)
This report analyses the Black Sheep Brewery and gives recommendations on international expansion. It will analyse four pre-selected possible new markets, (Canada, Japan, South Africa and Spain) recommend one of them for future expansion and outline a market entry strategy and a marketing mix for this new market. The author is a consultant employed by New Paradigms Research Organisation.
According to McCarthy and Perreault (1994) a 5 step approach has to be implemented to find a new potential market:
1. Defining the problem
2. Analysing the situation
3. getting problem-specific data
4. Interpreting the data
5. Solving the problem
In order to find the best potential market for the brewery the author has to examine the different potential countries in consideration of their accessibility, market size and profitability. Furthermore recommendations due to the market choice, the market entry strategy and the marketing mix will be given.
Table of Content
1. Introduction
1.1 Company Profile
1.2 The Beer Industry
1.3 Goals and Objectives
2. Environmental Analysis
2.1Analysis of the Internal Environment
2.1.1 Swot-Analysis
2.2. Analysis of the External Environment
3. Market Choice- Recommendation
3.1 Market Entry Strategy
3.2 Market Entry Methods
3.3 Implementation
3.3.1 The Marketing Mix
3.3.1.1 Product
3.3.1.2 Place
3.3.1.3 Price
3.3.1.4 Promotion
3.3.1.5 People
3.3.1.6 Process
3.3.1.7 Physical Evidence
4. Conclusion
Research Objectives and Focus Areas
This report evaluates potential international markets for the Black Sheep Brewery to facilitate its global expansion. The research aims to select the most suitable target country—comparing South Africa, Spain, Canada, and Japan—and provides a comprehensive market entry strategy alongside a tailored marketing mix.
- International expansion strategy for a traditional British brewery.
- Comparative environmental analysis of four potential foreign markets.
- Application of strategic frameworks including SWOT, SLEPT, and the 12C-Framework.
- Recommendation of an indirect export entry method to minimize risks and costs.
- Design of a marketing mix focusing on product, place, price, and promotion.
Excerpt from the Book
3.3.1.1 Product
An important factor when exporting a product is to transfer the image of the brand. The product range of Black Sheep beers chosen for the Japanese market should be easily recognisable for the customer. The USP of Black Sheep products can be characterized like this:
- high quality of English beer
- easily recognisable logo and brand name
- traditional way of brewing
- typical English ingredients
In the beginning, Black Sheep should concentrate on marketing two or three types of bottled beers and cask ales. After analysing the demand and selling behaviour of these beers Black Sheep can evaluate if certain beers need to be modified or if other beer types have to be launched to suit the market and customer needs and wants. However, Black Sheep should stick to its existing core business and core products to maintain its uniqueness and credibility among its competitors. Therefore changes concerning the product design are not recommended.
Summary of Chapters
1. Introduction: Outlines the scope of the assignment and provides a company profile of Black Sheep Brewery, highlighting its tradition and current market reach.
2. Environmental Analysis: Details the internal strengths and weaknesses of the firm through a SWOT analysis and assesses external global market factors using the SLEPT and 12C-Frameworks.
3. Market Choice- Recommendation: Provides a comparative evaluation of four potential markets, ultimately recommending Japan as the best destination, and details the implementation of a low-risk, indirect export strategy.
4. Conclusion: Summarizes the strategic recommendation for the Japanese market and emphasizes the need for continuous monitoring and further research regarding specific local regulations.
Key Terms
International Marketing, Black Sheep Brewery, Market Entry Strategy, Exporting, Japan, SWOT Analysis, Marketing Mix, Differentiation Strategy, Global Expansion, Beer Industry, SLEPT Analysis, Competitive Advantage, Consumer Behaviour, Distribution Channels, Market Development
Frequently Asked Questions
What is the primary focus of this assignment?
The report focuses on developing an international marketing strategy for the Black Sheep Brewery, specifically evaluating and recommending a new foreign market for the company’s expansion.
Which countries were evaluated for the expansion?
The analysis compares four pre-selected countries: Canada, Japan, South Africa, and Spain.
What is the recommended market entry strategy?
The consultant recommends an indirect export approach, utilizing a domestic-based export merchant to minimize financial investment and risk while leveraging existing distribution networks.
Which theoretical frameworks are used in the analysis?
The study utilizes several key business frameworks, including the SWOT analysis for internal evaluation, the SLEPT analysis for external environmental scanning, and the 12C-Framework.
What are the core components of the proposed marketing mix?
The plan addresses the 4 P's—Product, Price, Place, and Promotion—while incorporating People, Process, and Physical Evidence as added elements for service-oriented marketing.
What is the ultimate recommendation for Black Sheep Brewery?
The report identifies Japan as the optimal market due to its high beer consumption, economic growth, and the compatibility of its standard lager market with Black Sheep’s product offerings.
Why was Japan chosen over the other three countries?
Japan was selected because it offers the best growth potential and market conditions, whereas South Africa, Spain, and Canada presented significant hurdles like high competition or inadequate infrastructure.
How does the author propose managing the brand image in Japan?
The author advises keeping the product range focused on traditional British beer styles and high-quality ingredients to maintain the brand’s uniqueness and credibility rather than altering product designs.
- Quote paper
- Stefanie Aulenbach (Author), 2007, An international marketing strategy for Black Sheep Brewery in Australia, Munich, GRIN Verlag, https://www.grin.com/document/79855
