Posted at 12.15.2018
International investors eager to fully capture the growing work at home opportunities in Africa and especially in Kenya have to make that decision to enter a specific country based on complete research and research. The merchandise and services must be customized to the needs of the market if necessary must be designed to the local culture (Jonah, 2006). Many companies have failed in their accessibility into emerging market segments without the knowing that their home markets won't be the same as the destination markets. Those who have been successful understand that uniformity and the functionality of their products, low margins and adjustable products and brands will be the ones that flourish in the neighborhood market (Chattopadhyay and Dawar, 2004). This paper looks at strategies to introduce stag ale into the Kenyan maket.
This paper looks recommends a marketing combine for stag beer into the Kenyan market. The newspaper justifies the modified marketing mix by examining and considering the differences on the market and recommends strategies to introduce stag beverage into Kenya. For Stag Beverage to be successfully introduced in to the Kenyan market, an analysis of the Kenyan market, the neighborhood company, the marketing combination and a pestel research will be needed. This newspaper is an evaluation of the above mentioned.
Carib Brewery (St Kitts & Nevis) Small, is St Kitts - Nevis' leading alcoholic beverages Manufacturer. The business companies and distributes the following products: Carib Lager, Stag Lager, Skol Lager, Guinness Stout, Mackeson Stout, Royal Extra Stout, Vita Malt, Giant Malt, Smalta, Ting Grapefruit drink, Peardrella, Cidrella, Ginseng Up and Juicy Drinks. The business has been successful in the neighborhood market and is among the most leading brewery in the Caribbean islands using over 2000 people. Leveraging on its strengths in marketing and circulation; research and development; brands and financial management; as well as acquisition experience, the company is providing key resources and possessions strategic directions for its foot its commitment to grow and strengthen its core businesses in order to provide sustainable earnings to shareholders through geographical expansions.
In this part of the paper we will need each one of the marketing mixture elements separately and discuss how Carib Brewery can use them to introduce stag beer in to the Kenyan.
Stag ale is one of the world's finest beers, It was launched in 1892 and is also relished in more than 60 countries across the globe including European countries, USA, Latin America, Australia and the center East. The distinctive tastes of stag Beer is favoured by the modern man of today. Stag Beverage is synonymous with self-progression, manliness and interpersonal engagement.
Price is the amount of money charged for the product or service, the total of ideals that consumer exchange for the benefits associated with having or using the product or service. The prices of Stag beer is definitely kept on a bit higher side as compared to the existing domestic beers. The company cashes in on its international image and with its higher pricing insurance policy it is focusing on niche portion of the marketplace.
The company has breweries in all the continents that it operates in and also offers a existence in 60 countries. The business also has an online marketing system. Any consumer can go with their online store and get their ale home delivered. It also has some tie-ups with large department stores like for retailing its Beers.
The company does indeed aggressive advertising in every of its associated outlet stores and pubs, the business also has brand clothing and accessories that it uses to promote itself.
Hofstede (1984) affirms that contemporary society in collectivism countries such as Kenya expects organizations to look after them like a family member. Therefor the business must look for ways to allow them to go through the Kenyan population within the organisation. Kenya, a higher feminine country is given a low masculinity rating. In festivities like marriages, baptisms and funerals are given a lot worth focusing on (Blunt, 1983), which means company must employ its marketing mix to emphasise on this facet of stag ale.
The scenario of Kenya is very different from remaining world. Any business venturing into the Kenyan market must study the political environment here. The guidelines and polices for selling beverage are different so the company should be very specific when targeting its consumer.
As the ad of liquor is forbidden in Kenya, stag beer must cash on its international image to boost its sales in the local market.
The overall economy of Kenya is changing. There's a climb in per capita income and because of this the throw-away income of individuals specially residing in urban locations is also increasing speedily. The company must realize this potential and thus aim for only the urban cities of Kenya in their early on stage to penetrate the marketplace.
Kenyan is mainly Christians with 27% of the population Protestant while 26% are Roman Catholic. Around 19% of the population follow local local tribal values and 6% are Muslims. It is a country of diverse and wealthy cultural traditions, seeks to cultivate and develop those traditions to ensure that its valuable social assets are not irretrievably lost and that sociable cohesion is not undermined in the process of change to newer ways mind-set and lifestyle of men and women where Kenyans love their ale almost around their dancing and there are a thriving local making industry
Per capita income is growing, but at the same time the gap between your haves and have-nots is also widening. Though we hope that this distance will be narrowing soon, but the situation is a bit bitter right now.
Importing beer draws in heavy taxes from the federal government resulting in higher prices of the same. Therefore to boost the bottom part in the Kenyan market, it is highly recommended to create a vegetable in Kenya itself.
Environmental factors are the weather and local climate change. As the climate here's generally warm, the company must increase its offers during summer months.
The company should be very careful about the steps it requires because of the political environment which could land it in big trouble.
Currently East African Breweries Ltd (EABL) control buttons about 95% of bottled beverage market in Kenya, about 30% show in Tanzania and around 60% market show in Uganda. The other major player in the bottled beer market in your community (Uganda and Tanzania) is SAB Miller of South Africa, which manages over 60% of the Tanzanian market and about 30% of the Ugandan market (EPZ, 2007).
The market prospects within East Africa region are expected to go up as the sector targets innovation in the firms and dealing with the respective governments in trying to reduce excise work that is currently considered high. Kenya is self-sufficient in ale and barley and has remarkably invested in all the East African countries commanding the highest market show within the spot. High excise duties charged on beer makes the sub-sector one of the main income earners for the government. EABL is currently one of the best corporate taxpayers with total annual turnover of Kshs. 28. 9 billion and uses more than 1600 people over the region (EPZ, 2007).
The sub-sector has been through huge changes and presently Kenya is one of the world's leading providers of quality beer having gained various international award tournaments on various brands of locally produced beverage. Really the only major market player in the sector has been EABL though Castle Breweries Ltd of South Africa acquired ventured into the Kenyan market but opted out after sometime, citing problems in sourcing barley locally and the transfer duty incurred by the federal government (EPZ, 2007).
Beer market growth is flat in every the three claims due to economic hardships that have continued to have an effect on beer industry, in conjunction with high fees, stiff competition from other beverage sub sectors and low consumer spending.
EABL currently looks forward to trade monopoly in formal sector beer. Currently, branded beer makes up about 40% of alcoholic beverages market though it faces stiff competition from cheap spirits and illicit / traditional brews. There's been a reduction in beer sales volumes by several million hectolitres before decade. Corresponding to EABL half-year results, ale sales volumes went down by 4% while heart sales volumes exhibited some gains during 2003, which indicates beer market switch to spirit or other cheap alcoholic beverages principally because of sales price concerns.
Among key brands of ale available in the Kenyan market are Tusker Lager, Pilsner Lager, Tusker Export, Tusker Malt, Pilsner Snow, Pilsner Snow Light, Allsopps, White Cover, Resident, and Guinness Stout.
In the procedure of internationalization, one of the most complicated conditions that marketers have to manage is to explore the answer for the question whether the group should apply home ways of international markets (standardization procedure), or whether marketing strategies should be made to suit each individual market (adaptation approach) (Hollensen 2008). Some of the advantages of standardisation include: commercial products for which technical specifications are essential, lower costs as a result of economies of range in creation, marketing and R&D, similarity of customer preferences and consumption patterns across different market segments which may have analogous income levels and financial growth, centralization of specialist for establishing plans and allocating resources, standardization strategy accompanied by competitors and overseas and domestic market segments for something are in same levels of development (Czinkota & Ronkainen, 2000).
On the other hand the advantages of the version of the marketing mixture include: Services and consumer products which are more vunerable to be affected by individual preferences, favors adaptation, more expensive of implementation, variations in consumer purchasing, variations in government legislation, e. g. products' technical benchmarks, local content regulations and tax regulations, self-reliance and autonomy of countrywide subsidiaries, which might develop their own products, adaptation strategy followed by rivals and polycentric orientation.
Originally developed by Japanese business circles in the 1980s (Ohmae, 1990, Robertson, 1995), "glocalization" refers to the process whereby global organizations tailor products and marketing to particular local circumstances to meet variations in consumer demand. Glocalization has been referred to as a process: "the creation of products or services intended for the global market, but custom-made to suit the local culture" (THE TERM Spy, 2002). Regarding to John Stanley, IBM-Europe's director of marketing and services, as quoted in Top (1991), "glocalization" is not where you do business, but the way you do business. As well as the "how" is often regarded as a meshing between your guest multinational firm and the coordinator local company. Glocalization is sometimes reported to be areaction to globalization, or a encouragement of cultural id at the local community level. In terms of what the term means in the marketing sense, glocalization means that companies have to offer not only with worldwide factors, but also, very expressly, with the specific guidelines and conditions of each country in which they operate. Glocalization represents the need for multinationals to be global and local at exactly the same time. Put simply, whereas globalization is a move toward centralization, glocalization is a move toward decentralization.