For any company the main challenge can be seen in the course of entry into a new market. Being in a position to identify the forces that operate within the new market and how to overcome or embrace them. This is one of the great milestone in setting up the business within the new environment with prospects to attain maximum benefits in terms of profits and customer loyalty. In order to understand these forces that operate within any market we must analyze the business environment risk index.
If there is a high ranking or a low numerical rank it then means that there will be regulatory efficiency in running the business in the new environment. However if the ranking within the risk index is very high there is a likelihood that the business might not perform well in the new environment.
These rankings on the indicators of potential risk are obtained from the world development indicators that part of these analysis is from other collections such as education statistics and gender statistics. When effectively analyzed these indicators might provide an overview for a potential investor to enter a given market or avoid it.
The index tends to assess risks and forecast the financial, political and economic situation of a given country. It is mainly meant for lenders but the managers of companies too can use it; having in mind the fact that the investment in a given country can be considered to be a form of lending your resources to a country that foreign to an organization.
During the process of identifying a market also referred to as the target consumers. They always tend to cluster with certain similar needs. This is what referred to as market segmentation. It is very important to focus on the segmentation patterns and the needs within the segmentation patterns are classified along the following lines: demographic, geographic, psychographic and behavioral segments. It is only after segmentation of the target market that a company can be able to understand the consumer demands within the market. This is then important for the company to determine their own service or goods and products that meet the market preference.
Being able to focus on these small target segmentations is easy for formulation of easy market entry strategies. This is because it is easy to obtain feedback and understand changes that are likely to occur within the market. It is also possible to follow up and investigate issues like changes in purchase potentials, degree of satisfaction, and flexibility among other market issues.
One of the most important factors to consider among the segments is the demographic segment. This segment is characterized by distinct and particular characteristics such as age, income levels, occupation, race, gender and family size. The most important determinant factors that are linked to market and can be assessed with ease are age and gender. Gender is easily and commonly used due to the fact that naturally both genders have very different demand of products and differences in the preferences which in most cases are distinct.
Age as a factor is mainly considered by marketers and advertisers because at different ages have different demands. These demands are also very distinct due to the cognitive development as age progresses. However the majority of companies target the middle age market for several reasons. First people in most populations the majority are the middle aged. These category of people also tend to be more product consuming due to demands that arise as they enter into careers and establish their future life.
Middle Age Market
For any company trying to establish itself in any country then identification of the middle age market is the most effective way to start off. There are a couple of reasons why this is the case. The people who fall within this age bracket spend a lot. The purchasing power of these target group coupled with good employment levels is the most advantageous way and position a given market can establish itself.
The most effective way to convince or rather attract this class of consumers is by being honest with the content and feature benefits within the brand you are offering. Then being in a position to illustrate the product as a problem solver and how it can contribute in making their life better or easier. The worst thing as a marketer to do is trying to lure these class with impressive hype. They only choose to look at this aspect as the last when in the market, this is unlike the young children.
The best way to present your product in this kind of market is being able to identify the basics of sound print market as being applicable through creation of a good target mailing list, development of a powerful and relevant offer, being able to write a compelling call to action and finally having a design that engages with the market.
Within this class of consumers then as a marketer identify the sub-segments within the population in terms of interests. This will determine the medium of advertising the product whether to use the social media, print media, flyers etc. the key to the success of whichever strategy you chose being a success is through repetition. In this middle age the marketing must be considered as an investment, you have to create an incredibly broad and targeted marketing campaign that will ensure a high return across whichever medium you choose.
South America and Spain Markets
Before we can identify the trends and features of the market where we would like to establish a new product, it is important to look at features of the market where the product has been effectively established. In our case we can choose to focus on the Spanish whisky market and factors that allow the product to establish its ground in terms of demand amidst the population. This provides an avenue to contrast and compare factors that might be effective to the new market.
There are several aspects which have been identified concerning the South American market which are characteristic to the market and offer an outlook of the features that identify these markets. The South American counties can generally be referred using the term Latin America. These characteristics are based and presented on recent research companies interested in the market.
The Latin American economic potential cannot be overlooked. Geographically and demographically the region is rich in terms of human and natural resources. This was evident during the global economic recession. The dynamism displayed by the markets in this region was a unique feature, this is because the region did not suffer or get affected by this crisis.
The rehabilitations that are still ongoing socially and economically are the key features that strategically place this region competitively. This has seen the markets within the region experience a continuous growth unlike many other regions globally.For any marketer it is therefore effective to try and look at the feature within this market that make it stand out.
The overall improvement in stability of these countries can be explained by the strong trade ties with the U.S due to its strong economic structure. Countries like Brazil, Peru and Chile enjoy good security and the government policies there are good. Politicians in Brazil and Argentina are now appearing to embrace populist political positions which they find appealing to the citizens. This is a good thing in terms of favoring investments however there are weaknesses too within these markets.Latin America suffers from lack of adequate skilled personnel. This therefore means whichever country choses to invest its brand in the market has to also take into account some training costs too.
Culture in marketing is not all about the language people or target market uses to converse but rather everything that will tend to establish a long term relationship with the customers. The South American consumers are very diverse in terms of their choice and preference of goods and in order to gain appeal for a given product. They pay attention to particular aspects of a give product.
A vast majority of consumers of new brands are generally within suburbs as opposed to other regions. One aspect of their consuming culture is that they prefer cultural sensitive brands. These brands ought to be culturally sensitive to their particular needs. Thus effective communication in marketing is key here. For a company to survive in the long term here there has to be consistency in terms of a strong enough narrative to the consumers. These consumers want to be connected to the products.
On the other hand the Spanish culture and market is quite unique compared to what most people are conversant with. The Spanish portray a culture that is unique generally even from their general dress code, their unique accent to other peculiar aspects which are out of general routine and conformity.
In terms of marketing prices of products are not in most cases posted. The reason for this might be to establish a direct contact for negotiations without scaring away potential customers. Thus for survival of a business entity like the whiskey industry the social aspect in marketing here has been able to grow over years.
The Spanish enjoy life to the full compared to SouthAmericans, this is maybe caused by the value they attach to traditional celebrations and social eventstied to their habits. They enjoy good food and drinks which are associated with this lifestyle particularly whisky. Many of the norms which are unaccepted in South America are allowed here for instance heavy drinking and smoking.
Brazil Alcohol Industry
In Brazil the alcohol industry generally has a great importance in the market and national economy precisely. This is due to the production value, but also because of the rejuvenation that the sector has over the recent past experienced. The production of the various alcohol brands involves bottling, distribution, supply of raw material and packaging.
In entry of a new whiskey product into the Brazilian market then you cannot ignore the existing industry in the country. In order to succeed in the launch of the whiskey the spatial location of the industry plant to the target consumer market within the region and creation of networks of distribution act as the most important aspects in the industry.
Due to these aspects it has been observed that most of the companies getting into the country to survive, are resulting in merger programs. This is in a bid to increase their market participation. However even small business companies have a possibility of surviving, this is due to the level of complexity in the manufacturing and possibility in marketing participation.
In order to come up with cues on whether the entry of any whiskey company is an easy task it is important to first have a look at Brazil market and forces that operate within the market. One interesting aspect that comes up within the realms of the Brazilian market is that it is highly determined and impacted positively by seasons. These factors include the late carnival season, seasons where temperatures are above average, those with less rainfall along with football festivities.
During these festivities the alcohol market reaps great levels of benefits in terms of sales, for instance the 2014 FIFA world cup and many interesting alcohol brands launched at this period are still experiencing a good market command. For instance the limited edition of flavored whiskey that were meant to cater consumers attention. Even though at the time the Brazilian economy was struggling this was an effective strategy that played out to benefit the companies.
It is with no doubt that as per the moment the Brazilian alcohol market is dominated by beer consumption. It is estimated to...
If you are the original author of this essay and no longer wish to have it published on the SuperbGrade website, please click below to request its removal:
- Mastercard: Current Situation and Genesis of Legal Problems
- The Privacy of the Computer Data
- Research: Benefits and Demerits of a Family Business
- Local Waste Tyre Conversion for Standarding Hydrocarbon Fuels
- Articulation of Underlying Philosophy of Leadership and Values
- Elderly With Heart Failure and How To Prevent Rehospitalization
- Case Study about the Indian Act-Bill C-31
- Paper Example on Historical Interference with Racial and Ethnic Groups
- My Culture, My Identity: Ecuador
- Party Policy Differences
- Materials Used in the Construction of Heat Exchangers
- Discuss the Mintzberg Model for police executive officers.