Business Plan For Entering Chinese Beer Market Marketing Essay

Business Plan For Entering Chinese Beer Market Marketing Essay The Chinese beer market has grown at a strong rate between 2004 and 2008. It has generated total revenues of $ 42.8 billion in 2008, representing a compound annual growth rate (CAGR) of 12% for the period spanning 2004-2008. Market consumption volumes increased with a CAGR of 9.2% for the period 2004- 2008, to reach a total of 38.8 billion liters in 2008. The markets volume is expected to rise to 53.6 billion liters by the end of 2013, representing a CAGR of 6.7% for the 2008-2013 period. Standard lager sales proved the most lucrative for the Chinese beer market in 2008, generating total revenues of $34.7 billion, equivalent to 81.2% of the markets overall value. In comparison, sales of premium lager generated revenues of $7.7 billion in 2008, equating to 18% of the markets aggregate revenues. The performance of the market is forecast to decelerate, with an anticipated CAGR of 9.4% for the five-year period 2008-2013, which is expected to lead the market to a value of $67 billion by the end of 2013.  [1]   Market Value The Chinese beer market grew by 14.9% in 2008 to reach a value of $42.8 billion. Market Value Forecast In 2013, the Chinese beer market is forecast to have a value of $67 billion, an increase of 56.7% since 2008. Market Volume The Chinese beer market grew by 12.5% in 2008 to reach a volume of 38.8 billion liters. Market Volume Forecast In 2013, the Chinese beer market is forecast to have a volume of 53.6 billion liters, an increase of 38.4% since 2008. Market Segmentation I Standard lager sales dominated the Chinese beer market, generating 81.2% of the markets overall revenues. Market Segmentation II China accounts for 42.9% of the Asia-Pacific beer markets value. Market Share Anheuser-Busch InBev accounts for 24% share of the Chinese beer markets volume. ( www.euromonitor.com) Distribution Supermarkets and hypermarkets distribute 35.7% of the Chinese beer markets volume. 1.2 Situation of Chinese beer industry The Chinese beer market has grown at an astounding pace in recent years, spurred on by the massive levels of foreign investment in the market, along with the rise in the average levels of consumer spending in China, thanks to the economic reform policies of the government. China has now overtaken the US to become the largest national beer market in the world. However, per capita beer consumption in China remains very low relatively meaning that there remains great scope for development.  [2]   In 2013, the Chinese beer market is forecast to have a volume of 53.6 billion liters, an increase of 38.4% since 2008. The compound annual growth rate of the market volume in the period 2008-2013 is predicted to be 6.7%.  [3]   Table 1 Source: Datamonitor 2. The strategic triangle ( the 3Cs ) 2.1 The Corporation Aire Valley Breweries is a medium-scale brewery that is located in UK, it is an effective company with high cost structure but it sells its premium bottled product at premium prices so it is not a real problem. Its current production includes: Hostenbeck. European style lager beer, 5% abv, in 260 ml glass bottles San Bernardo. European style lager beer, 5.5% abv, in 240 ml glass bottles Camelot. British style dark bitter beer, 4.5% abv, in 500 ml glass bottles Ark Royal. British style dark bitter beer, 5.6% abv, in 500 ml glass bottles Pot of Gold. Irish style dark stout beer, 5.2% ABV, IN 500 ml glass bottles 2.2 The Customer Aire Valley Breweries plc intends to provide the customer with more than just a traditional brew. We intend to distribuite a high quality brew that will not only be refreshing and pleasurable, but also encourage gatherings and sharing of fun. Our customers can be feel safe about the highest quality standards of all our products. Looking at the consumer, there are some differences between the ways different alcoholic beverages are used in different occasions, but many product choice are a matter of personal taste this makes beer vulnerable to the threat of other alcoholic beverages and many people are about the idea that wine can be more healthy. Overall, there is a moderate threat from other type of alchoolic beverages. Our target customer will be people of any ages and gender but our products are more suitable for over 20 years men and women. 2.3 The Competitors We should identify competition in terms of companies already operating in the Chinese market that product similar type of beers. Hence there will be a need to strongly differentiate ouselves from other already well-settled businesses. However after an accurate market analysis, our competition comes in several forms: 1. The biggest competitors are Anheuser-Busch InBev NV/SA, Tsingtao Brewery, Company Ltd., SABMiller Plc. Been present on the market for a long period, they have a wide and established distribution network that they utilize to their advantage. In order to compete with these leading companies we intend to strongly undertake new channel and distribution development in addition to adopting aggressive marketing strategies. 2. Other manufacturers of traditional brews including homes and local bars will also constitute our competitors. They often have access to the local and remote areas and knowledge of these areas. However their products are not of high standard, which we shall fully exploit. Anheuser-Busch InBev accounts for 24% share of the Chinese beer markets volume. In comparison, SABMiller accounts for 15.9% of the total markets volume.  [4]   Table 2 Source: Datamonitor 3. The market segmentation of the Chinese beer industry The Chinese beer market is fragmented, with top three players holding 53.6% of the total market by volume. The market leaders are companies that own a strong well-known brand-image and operate within various segments of the market, which is possible due to the ease of increase in production capacity once a company is established and has already gained customers loyalty. There is a waste differentiation of products in the market, as there are many varieties within the beer category, including: ales, stouts, low/no alcohol, standard and premium lager, and specialty beer. Entry into this market would be highly dependent on the growth prospects and also on the size of the existing players. Furthermore, beer can be vulnerable to the threat from substitutes such as spirits and wine, due to low switching costs and consumption patterns in different geographies. 3.1 Geographic There are difference between Northerners and Southerners. There are large numbers of beer consumers chose to drink at dinning and banquet in the 6 selected metropolitan consumer markets; namely Beijing, Shanghai, Shenyang, Chengdu, Wuhan and Guangzhou. A comparably distinct preference for drink-places was identified as frequenting at bar counters in Guangzhou (15.7%).  [5]   Table 3 Source: IMI Consumer Behavioural Lifestyle Yearbook 2002-2003 3.2 Demographic In China, women population consume more beer beverage than men, almost 40% of consumers in Beijing are women. Table 4 Source: IMI Consumer Behavioural Lifestyle Yearbook 2002-2003 3.3 Psychographic Supermarket chains are often able to negotiate very strongly on price with beer producers, which fact boosts buyer power significantly. Switching costs for buyers are not particularly high, which increases buyer power in all markets. Beer producers can differentiate their products quite strongly, not only by the overall segment (lager or bitter, for example) but also by brand, ingredients, style, and so on.  [6]   3.4 Behavioural The IMI survey classifies beer beverage consumers into heavy and non-heavy drinkers. Heavy consumers drink habit ranges from daily drinking to a minimum of once or twice a week. Beijing beer beverage consumers are mostly heavy drinkers (67%). In Guangzhou, the heavy and non-heavy consumers are equally distributed in numbers. Table 5 Source: IMI Consumer Behavioural Lifestyle Yearbook 2002-2003 About 30% of the Beijing heavy drinkers are women, as compared to the other two metropolitan consumer markets in less than 20%. All the women consumer in the three selected metropolitan markets behave differently, ranging from frequency in drinking, preference for drinking-places, brand images, and personal lifestyles.  [7]   Table 6 Source: IMI Consumer Behavioural Lifestyle Yearbook 2002-2003 4. The 4Ps Marketing Mix 4.1 Product Aire Valley Brewwerie plc should produces products of high quality and impeccable taste. Our products will be positioned very carefully. They will be of extremely high quality to ensure customer satisfaction, supported by impeccable service to our customers. As high quality beers can be sold at premium prices, it is now possible to enter the market on a small scale as a microbrewery. Investment in production equipment can be recouped by adding a good margin to the price of the end-product. Standard lager sales dominated the Chinese beer market, generating 81.2% of the markets overall revenues. Sales of premium lager generated 18% of the markets aggregate revenues.(Datamonitor)  [8]   Table 7 Source: Datamonitor 4.2 Pricing We will ensure that our products prices take into consideration peoples budgets. However these prices will also take into consideration the cost of production and distribution 4.3 Distribution These products will be extensively distributed to remote,  yet extremely viable areas where the market is appreciative of readily available, good quality brew. We intend to establish an brilliant network that will enable us to rapidly respond to customers orders, and be available in remote areas our competitor has not yet exploited. 4.4 Promotion The marketing strategy we will adopt will convey the sense of quality and satisfaction in every picture, every promotion, and every publication. The promotion will involve integrating advertising, events, personal selling, public relations and direct marketing. In the long term Internet marketing will also be undertaken, which will help to increase the knowledge of our products to the various market target segments. Web presence is a natural objective in reaching the appropriate potential customers. Well-done brochures, company profiles and business cards often has an attraction effect on clients contemplating on ordering our products. Hence this will undoubtedly generate increased sales of our products. 5. SWOT Analysis In a rapidly growing economy market as the Chinese one we should focus on our strenghts to respond quickly to what the market dictates and to provide quality brew in such a highly lucrative market. We should also acknowledge our weakness of a medium-sized company without any international experience. 5.1 Strenghts Market segmentation strategies Focused marketing campaign Established company in UK with strong capital base Different type of products for different tastes 5.2 Weaknesses Lack of reputation in the Chinese market No knowledge about Chinese culture and behaviour Chinese distribution channel different from UK one Introduction of Chinese empà ²yees who have not previously worked in the company present a challenge to the company. 5.3 Opportunities The new generation are more interested in foreign brand and attractive packaging Internet marketing and sales Chinese beer market had a huge demand in the last years followed by population growth 5.4 Threats Existing competition in Chinese beer market Marketing strategies and tactics by other established European companies 6. Conclusion The brewing industry has been one of those quickest to modernise in China. Despite its huge market size, there remains great scope for development, and many new opportunities are still available in China. Per capita beer consumption in China has grown to near parity with other regional market, and so development in the market will in future rely much more on raising the average value of purchases, and persuading Chinese consumers to trade-up to premium products and brands.

Assess the usefulness of functionalist theories in understanding religion today Essay

Functionalists have put forward their perspective on religion and how it benefits both society and the individual starting with how religion brings people together harmoniously, creating social cohesion and a sense of belonging as people believe in the same thing and all abide by the same rules. Religion creates and maintains a value consensus whilst giving society social order. By conforming to religious beliefs this allows us to gain morals and therefore Functionalists see religion as a positive aspect to society. Durkheim defines religion as â€Å"a unified system of beliefs and practices relative to sacred things†. He says all societies divide the world into the sacred and the profane. Sacred are things set apart and forbidden, inspiring feelings of awe, fear and wonder. Profane are ordinary things that have no significance. His view on sacred symbols represents society’s collective consciousness which is the shared norms, values beliefs and knowledge that make social life possible; without such consciousness it would crumble. Participating in shared rituals binds individuals together reminding them that they are a part of a community. Religion defines values as sacred giving the people great power compared to non-believers. Through collective worship society understands the moral bonds that unite them. Durkheim argues that religion functions to reinforce the collective unity or social solidarity of a group. The individual sees religion performing a significant function allowing them to feel a part of society and strengthens us to face life’s trials and motivates us to overcome obstacles that would otherwise overpower us. Durkheim used the religion of Aborigines to develop his argument. He calls their religion ‘totemism’, as each clan of aborigines had a sacred symbol called a totem which was a symbol of their gods and of their society which reinforces their sense of belonging. Therefore, he argues the people are really worshipping society. Like Durkheim Malinowski sees religion as reinforcing social norms and promoting social solidarity. In his view it serves psychological functions for individuals helping them cope with emotional stress that would undermine social solidarity. He argues that death is the main reason for religious beliefs and identifies two types of situations: where the outcome is important but uncontrollable and thus uncertain and at times of life crises events such as birth, death etc. religion helps to minimise disruption. Bellah said civil religions integrates society in ways that individual can’t as it’s able to unite a nation. For example in USA American civil religion involves loyalty to the nation state and belief in God. It is expressed in many ways such as the national anthem and allegiance to the flag. Parsons says that religion helps people to deal with things that are unforeseen and have outcomes that cannot be changed. There are essential functions of religion in society it creates and legitimates society’s values. It achieves this by sacralising core values such as individualism, meritocracy and self-discipline which promotes value consensus. Religion also provides a primary source of meaning answering ultimate questions about life which helps people to adjust to adverse events and maintain stability. However, Durkheim’s analysis has been criticised as he only looked at small pre-industrial societies so his views do not apply to complex modern societies. Also he fails to account for the development of new religions some of which reject the norms and values current at the time, for example the Amish. His analysis was based on flawed evidence as he misunderstood both Totemism and the behaviour of the Aborigines. As a result of Durkheim’s research it could be argued that the Functionalist views of religion are not useful. This is because there may be cultural differences which prevent him from understanding the behaviours displayed in non-western society. Therefore it could lead to results that may be misrepresentative of all viewpoints on religion. His data may not be applicable to today’s society because of the diverse nature of different cultures. Some critics may argue that the Functionalist perspective is outdated and therefore not representative of modern society. They suggest that society needs religion to function and keep social order thus without it society would break down. Although secularisation of religion appears to be occurring society is still functioning. It could also be argued that religion can create conflict and division amongst society, for example there have been several world conflicts due to religious beliefs which highlights that religion does not create social solidarity as the functionalists suggest. Marxists however criticise the functionalist view as they argue religion is a unifying source that strengthens the value consensus and is a feature of all society. They see religion as a feature only of class-divided society. In such a society, there is always the potential for class conflict, and Marx predicted that the working class would ultimately become conscious of their exploitation and unite to overthrow capitalism. This would then mean society being classless in which there would no longer be exploitation, and Marxists see religion as a feature only of a class-divided society. As such, there will be no need for religion in classless society and it will eventually disappear entirely. In the Marxist view, religion operates as an ideological weapon. Religion misleads the poor into believing that their suffering is virtuous and that they will be favoured in the afterlife. Such ideas therefore create a false consciousness. Marx however ignored the positive functions of religion such as psychological adjustment to misfortune. Neo-Marxists see certain forms of religion as assisting not hindering the development of class consciousness.

Kotler Principles of Marketing Essay

Objective 1: Define marketing and outline the steps in the marketing process. Objective 2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. Objective 3: Identify the key elements of a customer-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. Objective 4: Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return. Objective 5: Describe the major trends and forces that are changing the marketing landscape in this age of relationships. Objective 1: Define marketing and outline the steps in the marketing process. Marketing is managing profitable customer relationships. Or: Marketing is the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. Steps in the marketing process: 1. Understanding customer needs 2. Designing customer-driven marketing strategies 3. Designing integrated marketing programs 4. Building customer relationships 5. Capturing value for the firm Figure 1.1 from page 27Create value for customers and build ‘’relationships final step Objective 2: Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. Five core customer and marketplace concepts: 1. Needs, wants, and demands Needs: Physical need like food, clothing, warmth and safety Wants: Human needs shaped by culture: Americans need food (Big Mac) Demands: When wants are backed by buying power they become demands 2. Market offerings (products, services, and experiences) Consumers’ needs and wants are fulfilled through market offerings; Think of products, services or experiences (such as information) Marketing myopia is focusing too much on the specific products a company offers than to the benefits and experiences produced by these products. Example: Railroads assumed themselves to be in the railroad business rather than in the transportation business. Passengers and freight transportation in general grew, but they choose for cars, trucks, airplanes, etc. making railroad transportation declining. The reason they defined their industry incorrectly was that they were railroad oriented instead of transportation oriented; they were product oriented instead of customer oriented. 3. Value and satisfaction Customer value and satisfaction are key blocks for developing and managing customer relationships. The customer is looking for value and satisfaction and will buy accordingly to the company that offers the best. Expectations shouldn’t be too high or too low. 4. Exchanges and relationships Exchange is the act of OBTAINING a desired object from someone by OFFERING something IN RETURN. Examples are [Political candidate: votes] [Church: members] [orchestra: audience]. 5. Market A market is the set of all ACTUAL and POTENTIAL buyers of a product or service. All below are influenced by major environmental forces. Objective 3: Identify the key elements of a customer-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. –

The Effect Of Using Narrative On Teaching Vocabulary

The Effect of Using Story in Teaching Vocabulary Introduction The effect of using story when teaching vocabulary incorporates as the best-approved evidence-based instructional strategy targeted at improving children ability to read and write. Vocabulary taught at kindergarten assists in improving the children ability to communicate effectively with peers and learn effectively. The strategy was developed to assist children in finding the necessary skills required for improving language ability as well as develop effective communication among children in the kindergarten. Additionally, word level skills such as word recognition and coding become possible because vocabulary taught allows the children to learn language abilities and attain high-level performance in equal measures across all the subjects(Graves, August, Mancilla, 2012). The language ability of children improves especially for native speakers because vocabularies learnt assist the children in establishing comprehension and well-writing abilities across all subjects. Comp rehension of various vocabularies becomes easy because the strategy establishes necessary skills among the children that give them the ability to analyze complex words and implement the same words in the relevant context. 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