Research Paper on Market Entry for Whiskey into Brazil

Introduction

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 milestones 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.

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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 this 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 is foreign to an organization.

Target Market Segmentation

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 is 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 segmentation is easy for the 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.

Demographic Segmentation

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 the 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 demands for products and differences in preferences which in most cases are distinct.

Age as a factor is mainly considered by marketers and advertisers because different ages have different demands. These demands are also very distinct due to 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 middle-aged. This category of people also tends to be more product-consuming due to demands that arise as they enter into careers and establish their future life.

What Is the Best Way to Market to Middle Age People?

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 groups 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 to making their life better or easier. The worst thing as a marketer to do is to try to lure these classes 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 the sound print market as being applied through the creation of a good target mailing list, the 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 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 social media, print media, flyers, etc. the key to the success of whichever strategy you chose to be a success is through repetition. In this middle age, 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

South America Market Research

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 compares factors that might be effective for the new market.

There are several aspects that 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 to using the term Latin America. These characteristics are based and presented on recent research on 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 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 the 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 a lack of adequate skilled personnel. This, therefore, means whichever country chooses 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 given 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 culturally 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.

Spanish Market Analysis

On the other hand, the Spanish culture and market are 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 direct contact for negotiations without scaring away potential customers. Thus for the 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 events tied 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 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 the 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 industrial plant to the target consumer market within the region and the 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 the possibility of marketing participation.

Brazil Market Analysis

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's market and the 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 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 during this period are still experiencing a good market command. For instance, the limited edition of flavored whiskey was meant to cater to 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 at the moment the Brazilian alcohol market is dominated by beer consumption. It is estimated to...