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Aire Valley Breweries
Aire Valley Breweries was established in England. It is a medium sized company with all its operations in England. It manufactures premium bottled beers,lagers and stouts. Beer is supplied in enormous amounts to supermarkets and upmarket city-centre bars to sell it to ultimate consumers. The company maintains high quality of the beer and ensures customer satisfaction. It is required to think creatively in order to fight increasing competition and demand in the market. The company also needs to bear in mind the finanacial and economic consequences.
Here are its products:
Market Analysis
Today china?s beer market is growing at a very rapid rate it holds aposition of being one of the best markets for beer,upholding major market share for last four years.
The beer market in China is not a national ? but an aggregate of local markets where each group has specific tastes, preferences and typical spending pattern. To prove this lets pick up a beer that people buy regularly ? such as Corona, Carlsberg, Tiger, Heinkein, Budwiser, Stroes. Now analyse why people buy such a product. Try to identify the factors whichinfluenced them such as product features, mood and other psychological state, their physical state or income bracket. The Foreign breweries like SABMiller, Inbev and Anheuser-Busch have entered the chinese market with different strategies like joint ventures and partnerships with domestic breweries.
Since 1947, the beer consumption has increased by 40 percent in China whereas it was static and slow in other markets. Like in U.S.A and Europe it increased at the rate of 1 to 2 percent.
Pest
China being a communist economy was giving enough leverage to set industires to the budding entrepreneurs. Paved a way for major mergers and acquitions. As a result, in october 2002, the chinese beer market met its fate when Anheuser-Busch , the US beer giant raised its shares in Tsingtao from 4.5 percent to 27 percent. Due to price competition the small chinese regional breweris had to merge with bigger giants of foreign origins.In Chinese social circle many great poets, writers are said to have been inspired by the consumption of alcholic beverages. Also people show their joy and happiness through consumption of beverages of light alcoholic content. The technological factors are low level technology and low labour cost which provoke company like ours to establish its saturated UK market to a highly volatile chinese market.
Swot
STRENGTHS WEAKNESS
Product is very effective Lack of efficency and high cost structure Use of both cans and bottles Per unit cost high Effective brand name Ready for innovation
OPPORTUNITIES THREATS
Easy to tap market Competition Variety available Companies with low cost Planing for drought and wheat beer Highly establishes beer market
Competitive Landscape
The manufacturers of beer are the key performers in the beer market. The basic buyers consist of retail and on-trade companies and the important suppliers include producers of malted grain. The Chinese Beer Market is taken over mostly by the top three players holding 53.6% of the total market by volume. The establishment of company enhances the production capacity which leads the market leaders to own a wide range of brands. The capacity of a buyer and supplier depends on various factors such as buyers? reliance and the availability of the raw materials for the end product.
Leading companies
Anheuser-Busch InBev (ABInBev) is the largest brewing company and sells its products across the world and renders services in over 30 countries. The company offers over 300 brands and also markets local brands as well. The company?s business is divided into two areas, first one being beer production and the second one being non-beer production. This company functions 10 beer plants and 13 mixed beverages plants in Brazil. In April 2009, the company announced its plans to spend $40 million to complete the first phase of a new brewery project in the Hebei Province of China. In June 2009, Anheuse-Busch sold its minority stake in Tsingtao Brewery to Chen Fashu for $235 million. In China, the company has 33 beverage plants and offers Beck?s, Budweiser, Harbin, Sedrin, Double Deer, KK, Zhujiang and Brahma beer brands. In 2008, 63.6 million hectoliters of beverages (including beer), have been sold in China. Anheuser-Busch InBev generated revenues of $23.6 billion in the financial year ended December 2008 (FY2008), an increase of 11.6% over 2007. The company's net income in total was $1.9 billion in FY2008, a decrease of 41.4% compared with 2007. During the FY2008, the beer division recorded revenues of $21.6 billion, an increase of 11.6% over 2007.
SABMiller is the second largest leading company in beer business. Similar to the first company mentioned above this company also offers brands worldwide and also deals in local brands. The company?s production is divided in the manufacturing of beer and soft drinks. The company has 17 breweries and 16 bottling plants in this segment. The sales volume of this segment was recorded 37 million hectoliters of lager in 2008. SABMiller generated revenues of $18,703 million in the financial year ended March 2009, a decrease of 12.6% compared to the previous year. The company's net income totaled $1,881 million in fiscal 2009, a decrease of 7% compared with 2008.
Tsingtao Brewery Company is responsible for the brewing and sale of beer. It is marketed and distributed to more than 60 countries and regions throughout the world. The company operates 53 breweries and 1 malting plant in 18 provinces, cities and regions all over China. Tsingtao Brewery generated revenues of $2.3 billion in the financial year (FY) ended December 2008, an increase of 16.9% over 2007. The company's net income totaled $100.5 million in FY2008, an increase of 25.3% over 2007.
Objectives
As the purpose of our business is to create and keep customers, it has only two key functions i.e. marketing and innovation. Our basic function is to attract new customers and retain old customers at profit. We concentrate on activities oriented with market and the consumer as we are ?consumer centred? or ?consumer driven?.Our mission is creation of demand, vision is creation of goodwill and aim is to capture larger market share. Our moto is to innovate,explore and expand.
Marketing Mix
?The marketing mix is the mix of decisions about product features, prices, communications and distribution of products used by the marketing manager to position products competitively within the minds of consumers.?
Product
Price
Use of different pricing strategies for both off- trade and on- trade
Use of price skimming ( China has no middle class. It has either rich or poor. We target the rich .)
Dynamic as per market trend and orientation.
Place
Target market will be restaurants,golf course,supermarkets.
Ideology will be demographic distribution to the upper,middle lower rich class.
Promotion
Use of all the tools of communication like advertising,personal selling,sales promotion will be used to capture market share
Billboards.television,radios,magazines all will be used to launch the product so that new customers can be created.
Plan Budget
Distribution
Risks
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