Whisky's Entry Into The International Market example essay topic

1 INTRODUCTION This report attempts to help the Inverallen Whisky, which desires to grow its export market, to analyze and evaluate the marketing research methods, market entry strategies, and international brand building. There are four main parts in this report, context analysis, market research methods, market entry strategies, and international brand building. In the first part, the environment of the Inverallen Whisky will be examined at industry level and company level. Several different efficient market research methods will be arisen and evaluated in the second part. Then, suitable market entry strategies will be presented to help Inverallen Whisky Company entry whisky market of other countries. In the last part, how to make Inverallen Pure Malt Scotch Whisky become an internationally recognized premium brand will be explored in detail.

The purpose of the report is to present a! yen best! | plan to help the Inverallen Whiskey to grow its export market. The conclusion will highlight the key findings of the report. 2 CONTEXT ANALYSIS 2.1 External Analysis At the industry level, according to the information given in the case, we would like to believe that there is a great overseas market in the whisky industry; the companies in this industry have a quantity of opportunities. We also have noticed that the tariff and local competitors are two main barriers for the export market.

2.2 Internal Analysis Inverallen Whisky Company, as a small Scotch whisky distiller, operates in the UK domestic market, and has a small quantity export to Japan and States. Its considerable spare capacity in manufacturing and storage facilities means the fixed cost has not been totally utilized. The two facts, the willingness of customers to pay premium prices for unusual brands and the rise in demand for whisky, stimulate Inverallen Whisky to play in the international market. 3 INTERNATIONAL MARKETING RESEARCH 3.1 Problem Specification Inverallen Whisky should make the following questions clear from the research.

First, which country / countries has / have a huge (potential) whisky market (s), and the market size; Second, the Political, Economic, Social environment of the country / counties ; Then, what do the people there think about the premium brand of whisky. 3.2 Available Methods To achieve the aim of this market research, there are several methods to go. First, only use secondary data research method. Second, only use primary research method.

Third, use research methods mix. Finally, hire a research agency. 3.3 Methods Evaluation Secondary research is a good way of saving money to small companies like Inverallen Whisky. Collecting and analyzing information, for example, the quantity of whisky import and export, from publications of various governments and international organizations could help us save a lot of time and also could get relatively authoritative and objective information. To choose several countries as our options after our analysis, we are to collect further information on the main competitors and the political, economic, social environment of the counties.

However, this method is far away from the reality. Some information is old fashioned and cannot reflect the real situation. Conclusion drawn from this will lead to failure. Primary research is controllable but expensive. As to a small company, carrying out primary research in a large scale is not a wise choice.

Hiring a research agency is much more expensive and uncontrollable than the first two methods but the results and conclusions from agencies will be more accurate. Using research methods mix, i.e. mixing various tools of primary research and secondary research, could avoid the shortcomings of each methods. 3.4 Recommendation As to Inverallen Whisky, carrying out primary research in a large scale is not a wise choice, only conducting the secondary information is not enough, and hiring an agency is expensive. Considering the cost, effectiveness, efficiency, we recommend Inverallen Whisky adopt the research methods mix i.e. use tools of secondary method mainly and use primary method in a limited scale. 4 ENTRY STRATEGY 4.1 Problem Specification With a long family tradition, and exporting small quantities overseas, the company is planning to expand its international market. However, there are lots of international well-known Whisky brands in the industry.

As a small company, we face huge challenge to compete with the famous brands and enter foreign markets. We have to find a wise way to enter. 4.2 Entry Methods First of all, the brand will be positioned as a premium one which provides high quality product and targets at high income people. In theory, market entry strategy options are as follows: exporting strategy; foreign production strategies including licensing, franchising, contract manufacturing, assemble and fully integrated production; and ownership strategies including Joint Ventures, Alliances and Acquisitions. However, according to the present situation of Inverallen Whisky, the feasible alternatives are indirect exporting, cooperative exporting and direct exporting. 4.3 Methods Evaluation The advantage of carrying on indirect exporting is reducing risks.

In this case, for this company's limited financial fund, it should be considered to reduce risks of abroad investment. Meanwhile, it also needs less knowledge on company's target markets. Piggybacking exporting can offer the opportunity of lowering unit distribution costs. This is a useful form of cooperative exporting. It would save Inverallen resources on international distribution. A good quality of the distribution network can also play an important role on it.

Through cooperation, manufacturers can learn experiences of distributions. Direct exporting is suitable to the company that has enough financial capability to set up its international distribution organizations. More depending on resources might be a challenge to Inverallen. Whereas, it will have more control on its distribution channels.

Some specific promotion strategies could be carried on in this stage. According to Root's study on entry mode decision making (See Appendix 1 and 2), exporting strategy is the most feasible one for Inverallen and some factors should be considered like company resources and target country environment. 4.4 Recommendation In fact, as to the Inverallen Whisky's entry into the international market, the method we recommend is a three-step plan. The indirect exporting strategy should be used in the first year.

During this period, the company needs to collect information on its international target markets for the coming years. Next, cooperative exporting strategy could be carried on to expand the market share in their market place. This approach is available in the countries like China and India after the indirect exporting period. Then, in the fourth or fifth year, direct exporting strategy could be used as the main strategy and information system of the company will supply enough information resources and export organization will get more control on sales.

5 INTERNATIONAL BRAND BUILDING Brand Architecture (brand's five pillars, See Appendix 3) and 4 Ps models will be used to explore how to develop into an internationally recognized premium brand in the next five years. 5.1 Brand Pillars Analysis ".