Whisky and market entry Essay

Published: 2020-02-24 11:41:58
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Category: Denmark

Type of paper: Essay

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Although a good opportunity for the firm is to exploit the growing demand of the scotch whisky in export, this cannot be adopted at present since the problem calls for the marketing strategy of the firm in establishing a distillery abroad and its entry of products at the present market of the countries to be established upon. The export market is out of the question.

The main parts of the paper would include the environmental analysis of the countries to be analyzed, the Strength-Weakness-Opportunities-Threats (SWOT) analysis, the possible entries to market that can be undertaken by the company to accomplish its goal of market penetration, and lastly, the recommendation that would be the final choice of the company for entry. If the recommendation would not fit the taste of the company, or if in some way would not fit the situation, a contingency plan would be available for the companys disposal.

I. Environmental Analysis The primary candidate for expansion of The Olde Distillery is the land known for the savage sailors called Vikings: Denmark. The country that boasts of rich fields cultivated and fertilized for the production of cereal grains, the raw materials used for the production of whisky. It is also one of the countries that lay dependent to other European countries for the importation of raw materials. (Anonymous 2006c) The countries referred to include Sweden and United Kingdom, the home country of The Olde Distillery.

Denmark recently appears as a nation on the brink of economic and technical progress. A sudden rise in the economical aspects, the development in technology, and the countrys high standards of living makes Denmark one of the country to be on the sights of the company for its expansion plans. Denmarks demographic breakdown comprises 33% of the population to be of the males in the age range of 15-64 years of age. This is a very important characteristic of the country as this would be lead to the inference of sales by the age group and demographic data.

The women comprises a small part of the study as they are less inclined to the drinking of whisky than the probability of men drinking the beverage. The pegging of the krone, the monetary unit of Denmark, may prove to be a problem for the market strategy. Future sales and marketing factors may not be shown in the positive areas such as positive indices, although these are also important for the company before engaging in any market move that may be for the good of the products to be released.

Another factor to be considered is whether the general public would accept the new products to be inserted in the market. The economic laws of supply and demand however, are in Denmarks side. This laws generally say that the change in the income, on Denmarks side is growth, would change the supply and demanded graphs. A rise in income would generally give a rise in the demand for a normal good, forcing the supply curve to move towards the growth. In other words, more money means more demand, and more demand means more supply.

The problem, however, lies in the decision of large distilleries that may decide to expand to accommodate the needs of their market. The company should be on the lookout for these kind of activities. The top ten of the markets for scotch indicates that Denmark is present among its ranks (Anonymous 2002) This can be seen, however, as both an opportunity and a threat. Opportunity, in a way that, the company may see this as a positive market index of the expansion of the company in Denmark in the future.

But a threat, in a way that, the distilleries that have established itself in the market may have the expansion processes underway without the company knowing of their plans. Tax may also be a concern for the people of Denmark, as the krone is pegged to the Euro. On the brighter side, Denmark is not among the high-tax charging countries, but the people may see other products with as much taxes as that of the alcoholic drinks.

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