Market Entry Strategy Black Sheep Brewery

Inhaltsverzeichnis

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

5 Appendix
5.1 PESTL India
5.2 PESTL France
5.3 PESTL USA
5.4 PESTL Australia
5.5 12 c Framework
5.6 Bibliography

1 Introduction

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.

2 Environmental analysis of potential markets

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.

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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.

2.2 PESTL excluded countries

“A technic for analysing the general external environment of an organisation in terms of the political, economic, socio-cultural, technological, environmental and legal aspects” (Mullins 2004, 521)

India

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(for a detailed PESTL and the 12c framework see appendix)

Without a doubt India is one of the rising beer markets for the future. But right now, it will be difficult for SME like Black Sheep to enter the Indian market. Although there is a close relationship to the UK (due to Indian being a former colony of the UK) there do still exist a lot of trade barriers for exporting goods to India. For example Black Sheep could right now not bare the extra tax for imported alcohol which is 150 % for spirits added on the federal customs duties. Another difficulty will be the language differences. English is recognised as the Business language. Despite of that the labels have to be translated. The question would be in which of the 15 official languages. Although India has a lot of inhabitants, the density of the population varies. The cities are often over crowed while the rural areas are nearly unpopulated.

Last but not least there is the most difficult barrier to overcome: the religion. Hindis and Moslems are both not allowed to drink alcohol. As religion is significant in India society alcohol is even prohibited in 5 states.

But there is a change of the values among the young people. Therefore the beer consumption will rise in the next few years. That is why it is important that the Black Sheep Brewery should observe the Indian market.

France

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(for a detailed PESTL and the 12c framework see appendix)

As France is a neighbour state of the UK and also member of the EU, it would be an easy market to entry. There are no trade barriers except the different currency. One small problem would be that everything has to be translated into French, even the names of the beer (there is a law in France that only a small percentage is allowed to be in a foreign language). They main reason why France is not a suitable market for Black Sheep is that most of French prefer drinking wine. In average they drink 33.4 l beer per capita but 72.9 l wine per capita. Most of the beer is only sold in tourist regions.

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