Essay
Part A. Select entry strategy for each of the 3 new country markets. EXPLAIN
Part B. Identify and explain one specific marketing and one specific HR management adaption of your choice for each of the three new country markets. EXPLAIN.
Use 2 citations APA format
Orders of Essay
Target Market Entry Strategy
Marketing Adaptations
Human Resources Management
Essay Part A. Select entry strategy for each of the 3 new country markets. EXPLAIN Part B. Identify and explain one specific marketing and one specific HR management adaption of your choice for each of the three new country markets. EXPLAIN. Use 2 citations APA format Orders of Essay Target Market Entry Strategy Marketing Adaptations Human Resources Management Corona Intro to International Business Introduction New market development is an essential part of every major global brand’s growth strategy. There is great potential for growth in new markets, particularly in developing countries, but these opportunities come with risks. Therefore, anytime a brand considers entering a new market it should first seek to understand the market conditions and what consequences these conditions will have for the brand. Then, a multi-attribute market evaluation should be performed based on the opportunities and risks inherent to the potential new markets and the value which are important to the brand. The result of the multi-attribute market evaluation will indicate which of the potential new markets is most likely to result in a successful product entry and add value to the brand. Market specific entrance strategies can then be developed and tailored to each product. Country Scorecard Corona is one of the world’s most popular beer brands and is sold in over 120 countries worldwide (AB-InBev.com). As a result of Corona’s widespread popularity, the brand should carefully evaluate the remaining markets for entrance opportunities while considering risks present in the remaining markets. Corona’s Multi-Attribute Market Evaluation scorecard reflects the most promising markets for Corona in 2020, including Nicaragua, Costa Rica, Belize, Morocco, Algeria and Angola. These markets were evaluated based on six critical economic and social factors ranked 1-9 based on their relative importance, including Market Size, Median Age, Indulgence / Alcohol Consumption, Geographic Location, Economic Freedom and Human Development Index. Morocco, Algeria and Costa Rica received the highest weighted score based on the desired market attributes chosen. Market Evaluation To evaluate opportunities for Corona, we focused on the current presence of AB inBev’s operations and where we could afford to explore more growth with minimal risk. Currently, Corona is one of the leading imported beers around the world and their presence outside of their base in Mexico has grown exponentially. As we move forward towards another year of volume growth for the company, we acknowledge that the COVID-19 pandemic will be a factor to consider when exploring potential new markets. This will be crucial as this will tie heavily into the effectiveness of our choice in target market and market entry strategies. When considering manufacturing and exporting as a factor in potential growth opportunities, we think about proximity. Brazil, in conjunction with the US, are one of the largest markets for AB inBev, bringing in an increase of 6.5% growth in FY19 (AB InBev, 2020, Slide 6). This led us to explore opportunities in the South American region. With the Corona brand in mind, we looked into Nicaragua, Belize and Costa Rica. Not only would exporting into these countries be relatively easy, but the South American market can be known for their nightlife and drinking culture, leading us to believe in the potential success in their market and demographic. When looking into opportunities in the European markets, we acknowledged that our competitive advantage would be weak, as there is a highly prominent presence of other beer brands in many European countries, including the presence of other brands within AB inBev. Ultimately, we decided that Corona was not fit for growth within the European market. We turned to the African and Asian countries, looking into their economic stability, demographic and drinking culture. Asia’s demographic was not ideal for the market we wanted to serve. Additionally, adding in the alcohol regulations, it would be difficult to penetrate into this market without substantial risk. This left us with the African market - a relatively stable market that did not have as many regulations against alcohol as the Asian countries we explored. Selection Criteria Our selection criteria, along with their individual relative importance, are key factors that we believe to be attributed to the success of our brand entrance into potential new markets. Our selection criteria are as follows: Market Size, Median Age / Age Demographic, Indulgence / Alcohol Consumption, Geographic Location, Economic Freedom, and the Human Development Index (HDI). Our decision to use these specific criteria to assist in the selection of our proposed new markets were heavily reliant on Corona’s brand over the years. We considered what the brand has established so far in its current markets as far as presence, what marketing strategies/current markets have assisted in revenue growth, and how the brand expects to expand in the coming years. Below we will go into details of each criteria proposed and how each plays an important role in narrowing down our proposed new markets. Geographic Location: With consistency of the brand’s image in mind, we made note of the importance of the current marketing strategies in place for Corona. When we see a Corona commercial ad whether on television or billboard, you can not help but notice the tropical setting with an emphasis on a beach. Most of their campaigns have stayed consistent, encouraging a “beach state of mind” or using catchy slogans such as, “Find Your Beach”. With that, we opted to explore countries with warmer climates and were of tropical nature. We believe the stress on geographic location will influence the buying behavior of our market, given the brand as a whole has fixated on “where” the product is most enjoyable. Median Age / Age Demographic: Using data from the World Population Prospects report by the United Nations, we analyzed age demographics in our prospective countries. Ideally, we focused on the age demographic ranging from 18 - 50. We correlated this age range as the prominent ages in which alcohol consumption was high. Market Size: Market size is a great determining factor on the market’s post-entry profit potential (add source). Additionally, the larger the potential market size, the better opportunities for economies of scale and cost advantages. Economic Freedom: Establishing in what way we intend to penetrate the market and the resources needed to be successful, we have to consider the market’s economic freedom. Ideally, an unrestricted free market would be an area to thrive however, we understand that all countries have their own restrictions against things such as trade barriers, import/exporting, and Human Development Index (HDI) Using the Human Development Index as a selection criteria allows us to evaluate the country’s economic development and progress. Analyzing economic development is crucial and garners attention to the proposed entry markets we are considering and their favorable growth. Two of our three markets chosen were the two highest rated in this category. Indulgence/Alcohol Consumption: Lastly, we focused on drinking culture/indulgence in the countries we chose. It’s important for the success of the company to choose countries that have a prominent drinking culture. Many brands have used targeted marketing, using the cultural habits of countries and amplify on that to ensure successful marketing strategies for the product. Target Markets After careful consideration using our selection criteria and calculating the overall weighted scores for our proposed markets, we made a determination on the target markets we wanted to pursue - Costa Rica, Morocco, and Algeria. Ultimately, the combination of age demographic, market size, and age demographic made these three markets the most attractive for our brand. Works Cited AB InBev (2020). AB InBev: Annual Shareholders Meeting [PowerPoint slides]. Retrieved from https://www.ab-inbev.com/content/dam/universaltemplate/ab-inbev/investors/corporate-gov-pdf-archive/shareholder-meetings/june-3-2020/annual-shareholders%E2%80%99-meeting-2020-ceo-presentation/AB%20InBev%20AGM%20Presentation%20FINAL%20ENG.pdf The Heritage Foundation. (2020). 2020 Index of Economic Freedom, Country Rankings. https://www.heritage.org/index/ranking?version=669 Hofstede Insights. (2020). 1 BRAND RESEARCH · pale lager produced by Mexican brewery Cervecería Modelo and owned by Belgian company AB InBev · Corona Extra has been the top-selling imported drink in the U.S. since 1998. · Sponsor of numerous sports including boxing, lpga, nascar, soccer, fantasy football · · · · · · · https://cbrands.gcs-web.com/static-files/329223c1-87e9-4b48-88a5-0678f44b7137 · · https://edition.cnn.com/2020/02/28/business/corona-beer-marketing/index.html · https://www.politifact.com/factchecks/2020/mar/02/facebook-posts/no-poll-does-not-say-38-americans-wont-drink-coron/ · · · · · · · · · · · · · · · · https://www.ab-inbev.com/content/dam/abinbev/news-media/press-releases/2020/02/final-full-ab-inbev-annual-report/Updated_FYReport2019_EN.pdf · · https://www-statista-com.remote.baruch.cuny.edu/study/31157/constellation-brands-statista-dossier/ · https://www.ab-inbev.com/content/dam/abinbev/news-media/press-releases/2020/05/ABI_1Q20%20Press%20Release_FINAL%20(EN).pdf · · · https://www.ab-inbev.com/content/dam/universaltemplate/ab-inbev/investors/corporate-gov-pdf-archive/shareholder-meetings/june-3-2020/annual-shareholders%E2%80%99-meeting-2020-ceo-presentation/AB%20InBev%20AGM%20Presentation%20FINAL%20ENG.pdf · Countries AB inBev (corona’s export company) does not have operations in: · Nicaragua · Costa Rica · Belize · Morocco · Algeria · Angola · https://www.heritage.org/index/ · https://www.hofstede-insights.com/product/compare-countries/ · https://www-statista-com.remote.baruch.cuny.edu/statistics/408007/average-age-of-the-population-in-algeria/ · https://www-statista-com.remote.baruch.cuny.edu/statistics/1121264/median-age-in-africa-by-county/ · https://www-statista-com.remote.baruch.cuny.edu/study/48465/morocco/ · https://www-statista-com.remote.baruch.cuny.edu/statistics/443165/average-age-of-the-population-in-costa-rica/ · https://www-statista-com.remote.baruch.cuny.edu/statistics/727304/average-age-of-the-population-in-belize/ · https://www-statista-com.remote.baruch.cuny.edu/statistics/457869/average-age-of-the-population-in-nicaragua/ · https://www.alcohol.org/guides/global-drinking-demographics/ · https://worldpopulationreview.com/country-rankings/alcohol-consumption-by-country · https://govdata360.worldbank.org/indicators/mkt.size?country=NIC&indicator=3292&countries=CRI,BLZ,MAR,DZA,AGO&viz=line_chart&years=2014,2017&indicators=944 · https://www.ab-inbev.com/content/dam/universaltemplate/ab-inbev/News/Press%20kit/ABI_FS16_Brand_Corona.pdf ·