Case Study: Market Evaluation Analysis

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Section 1: Identification of Market Specific Issues, Constraints, and Opportunities

The first aspect that must be addressed by the marketer is CSR (Corporate Social Responsibility). Whilst CSR is an integral part of the developmental strategy in Europe (Yildiz & Ozerim, 2014), CSR as a concept is not well-defined in Vietnam (Tran & Jeppesen, 2016). Tran and Jeppesen (2016) highlighted that in Vietnam, the working conditions are gradually improving, however, when considered from a European perspective, a product manufactured in Vietnam and sold in Europe may bring in negative publicity. The fundamental difference is that in Vietnam, the focus is on short-term results, and long-term aspects like sustainability are not given much importance. The working conditions must be improved along two lines- First, by giving more freedom to workers (currently they cannot even have a union) and second, by reducing the emission from any manufacturing activity. 

The second aspect that must be addressed by the marketer is to understand the differences between the markets. The marketer understands that three markets need to be considered- Australia, Vietnam, and Europe. The analysis is conducted based on PESTLE framework by Rastogi and Trivedi (2016) and is presented in appendix 1. Based on the analysis, it can be inferred that whilst the business environments in Australia and Europe are similar, they are considerably different from that in Vietnam. 

The third aspect that must be addressed by the marketer is to understand the cultural difference for which Hofstede Cultural Dimension framework (Hofstede, 2020) is applied in Australia, Vietnam, England, and Italy and is presented in appendix 2.  Based on the analysis it can be considered that there are cultural similarities between England, Italy, and Australia (to a certain extent), however, the dimensions diverge when Vietnam is considered as well. 

The fourth aspect that must be addressed by the marketer is the constraints the company would have to face in the European market. According to the Brewers of Europe (2020), there are over 9500 breweries in Europe. To sell its products in the European market, the company would have to become a member of a national association that is a member of the Brewers of Europe. The Brewers of Europe has issued guidelines for its members related to the brewing process and contribution towards society, economy, and environment. The members are expected to follow the guidelines and the guidelines are presented in appendix 3. 

The fifth aspect that must be addressed by the marketer is the opportunity for the company in the market. According to a report by Allied Market Research (2019), the beer market in Europe was valued at $138,649 million and is expected to grow at a CAGR of 1.8% to have a value of $159,687 million in 2025. Amongst the countries, Germany accounts for one-sixth of total beer consumption and is expected to retain its dominance. Between England and Italy, England is expected to witness significant growth over the observation period due to the wide acceptance of beer as a refreshment beverage. Another key insight is that whilst there are local breweries, however, collaboration is on the rise between local and international partners (Allied Market Research, 2019). 

Section 2: Identification of Social, Cultural, and Consumer Behaviour in Target Market

Based on the discussion in the earlier section, it can be inferred that between Italy and England, England is a more attractive market for the company. However, there is a need to increase the familiarity with the target market by focussing on different aspects of consumer behaviour as done below.

The first aspect that is being analysed is the social implication of alcoholic consumption in the UK. According to Seaman and Ikegwuonu (2010), four key social aspects must be focussed on:

  • First, young people consider achieving drunkenness as a default choice for socialising. 
  • Second, young people consider heavy drinking as a temporary behaviour which they will not be continuing in the long run.
  • Third, the cost of alcohol has a significant influence on the amount of alcohol consumption.
  • Fourth, if alcohol is easily available it might lead to excessive consumption and impact the well-being of an individual. 

The second aspect that is being analysed is the cultural implication of alcoholic consumption in the UK. According to GB Mag (2019), alcoholic consumption plays an important role in the UK culture as it provides a medium for people to socialise with others. The obvious implication of socialising is people hanging out with friends to celebrate events or catch up on sports, news, and politics. However, socialising is not confined to personal lives as UK citizens also discuss business over drinks. Another important cultural aspect is that the families are open to drinking in front of young adults as evident from a drinking age in the country being 18 and many pubs being family-friendly.

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