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August, Toasting Brewery (600600) was also listed on the Shanghai Stock Exchange, becoming the first Chinese dual-listed company. It was the official sponsor of the Beijing Olympic Games in 2008. As of the end of 2012, Toasting Brewery has 59 breweries in 20 provinces and clues In China. In 2012 the company completed a total of 790 million liters of beer for sales; company achieved operating income of 25. 782 billion ARM; attributable to shareholders of listed companies’ net profit of 1. 759 billion ARM, which is the most profitable company in the China’s beer brewing industry.
The current brand value is 0. 585 billion ARM, is ranking the first in China’s beer brewing industry and awarded as the world’s top 500 brands. Birth Report, the most authority report of the global beer Industry ranking according to the production amount, Toasting Brewery Is the sixth largest beer manufacturer In the world. Toasting Brewery’s beer products are exported to the united States, Canada, United Kingdom, France, Germany, Italy, Australia, South Korea, Japan, Hong Kong, Macro and other 80 countries and regions.
Toasting Brewery’s vision Is to become an International dominant company and It mission Is “with our passion to renewing the consumers’ favorite beer to create happiness for the Toasting Brewery is one of the first brand enter the international market in China which producing various types of beer products, there marketing strategy is combined with brand communication, consumers’ experience and products sales(S it generated revenue by selling products that is Business-to-customer (BBC) that a transaction occurs between a company and a consumer, it may describe a company that provides goods or services to the end-user consumers.
Its business model is Click-and-Mortar that includes both online and offline operations, which typically Include a website ND a physical store. A click-and-mortar company can offer customers the benefits of Competitors Analysis Yanking Beer (China) is domestic competitor. Market Analysis PESTLE Analysts PESTLE analysis (Political, Economic, Social, Technological, Legal and Environment analysis) describes a framework of macro-environmental factors used in the environmental scanning component of strategic management.
It is a part of the external analysis when conducting a strategic analysis or doing market research, and gives an overview of the different macro-environmental factors that the company has to take into consideration. It is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations. (A) Political Factors From now and the next few years, China and the world political situation is basically stable. Peace and Development” are the two main themes of the contemporary world; it is also a common belief of people around the world. China follows these contemporary themes and develops the trade relations with other countries, according to the World Trade Organization (WTFO) was established in 1990. China’s tariff barriers are faded, therefore, different foreign brands enter into China, there are approximately 40 foreign brands of beer are enter and manufacture in China, which production are 4. % of the domestic beer production. Facing the challenges of foreign brands of beer is a great impact to China’s beer brewing industry, however, it also have some benefits that the reduction of import tariffs has expand the choices of foreign high quality raw materials and foreign high technology equipments, e. G. Purchase the high technology equipments can improve the level of brewing, in addition, it also can lead China’s beer products into international market. (B) Economic Factors
Economic cycle is the refection of the economic from the process of expansion>recession>recovery>boom; its upward and downward movements along with the levels of Gross Domestic Product (GAP) and refers to the period of expansions and contractions in the level of economic activities (business fluctuations) around its long-term growth trend. [2] According to the related statistics show that China is currently in the “expansion” stage of the economic cycle, and from the Prediction Results of the Economic Growth in 2001-2020 conducted the State Council Development Research Center, the China’s
GAP growth rate between 2001 and 2010 is 7. 9%, therefore, it can predict that China has continuously stable and sustainable economic development in the upcoming the beer brewing industry will also has a strong development power. (C) Social Factors (1) Lifestyle change Beer first appeared in ancient Egypt and Mesopotamia (Iraq), it is innovated by Egypt and through North Africa, Ebb, Lea peninsula, France enter into south of Germany, and the German technician export around the world.
After the Chinese society had reform, from the influence of Western culture, the food culture had mixed towards esters, that beer had import into China, people from totally not recognize beer, and now become an beverage that is indispensable. (2) Effect of Growing Population According to the trend of China growing population, since early ass, China had enforced a “One-child-policy’, the birth rate has decreased significantly, however, the great historical heritage population size is still considerable. According to the statistics, in 2000, China had 8. 6 million people aged 18-60, is 2. 15 times compare with 1964, since 18-60 years old people are the beer consumer groups that means the prospect of China’s beer brewing industry is very well. D) Technological Factors Technology is the most powerful element that can changing human destiny. The company’s development is inseparable from technology, if there are no technology and product innovation, there is no business growth and progress, and no business future. Toasting Brewery can enter into the international market, because they have technology and product innovation.
However, base on the overall performance of China’s domestic brewery, the technology level is relatively low, model is relatively small, material consumption is relatively high, efficiency is relatively low, use 8-40 pubic meters of water to produce 1 tons of beer, however, other developed countries just use 5-10 cubic meters to produce 1 tons of beer, that means China’s brewery technology level is not mature, therefore, technological innovation, save limited resources, strengthening environmental protection is the beer brewing industry development trends. E) Legal Factors Law is playing a guiding and development of protection, supervision and limitation roles in beer brewing industry, according to the economy development of the society, the commercial transactions is more frequent and the market environment is more implicated, subsequently faced various potential legal issues. If the business process exists in the legal issues can not be solved immediately, it will accumulated; once the issues is discovered, the enterprise will suffer a significant losses.
The “Law of Food Safety” will release by The State Administration of Quality Supervision at the fourth season of 2013, which encourage the enterprises to use of Quality Supervision has found the beer has exceeded formaldehyde at 2012. It reflects the beer brewing industry is neglect on the relevant laws and regulations; there will have a negative effect to the domestic beer brewing industry.
F) Environmental Factors The majority of industrial activities may destroy the natural environment inevitably, however, from now on, United Nations (UN) and the Governments around the world have given attention to the environment pollution, and release related law to cease the environment pollution. This is both an objective to protect the Earth’s environment, and also a way that harmonious coexistence between man and nature.
By brewing beer, it must have to discharge wastewater; currently, assessment of beer brewing industrial wastewater quality is using national discharge standard 88978-1996 “Integrated Wastewater Discharge Standard”, not specified separately for the beer brewing industry discharge standards, however, from 1 January 2006 on, “Beer Brewing Industry Emission Standards” had enforced as mandatory standard.
To summarize the PESTLE analysis to Toasting Beer, political stability and political views and conduct are directly influent the entire economic environment to have positive or negative effect, and at different stages of economic cycle and the level of economic development will affect the social culture and lifestyle. Economy provided errant of the quality to technology development, at the same time, technological innovation can improve the economy. To add some laws and regulations also put more effort on environment protection to achieve sustainable development. Http://www. Toasting. Com. CNN/index. SHTML 2) A Mandarin, P. M. (2010). Refinancing Fixed and Variable Pay in a Sales Organization: A Business Cycle Perspective. Compensation & Benefits Review 42(3), up. 179-189 SOOT Analysts SOOT analysis is the structure planning method that used to evaluate the Strengths, Weaknesses, Opportunities and Threats; which is basic marketing analysis method, seed in the formulation of a business development strategy of the enterprise prior to depth and comprehensive analysis and competitive positioning.
Strengths It is internal factors of an organization, including a favorable competitive situation, adequate financial resources, good corporate image, high-end technology, economies of scale, product quality and cost advantages. 1 . Toasting Brewery is the world-renowned brand of China’s brand of beer which won many domestic and international competitions, is recognized as the famous beer by domestic and foreign consumers. 2. It has decades of international experience, since 947 Toasting Brewery began sales in Southeast Asia market; Toasting Brewery increased substantially; Toasting Brewery began exporting the American market in 1978,.
Toasting Brewery has formed Southeast Asia, Europe and the Americas three pillars of the international market. 3. The product quality is relatively stable and can produce at very low cost. 4. Toasting Brewery Company Limited was established and access to international capital markets in 1993, the company shares were listed in Hong Kong and Shanghai at the same year, becoming the first in the dual-listed company limited. 5. Toasting Brewery packaging designed to highlight fashion, younger, in line with the pursuit of fashion is always the theme of the international market.
Every brand of beer can seize consumer preferences; firmly grasp the consumer market trends. To mastered the concept of consumer spending and consumer psychology, and the perfect resort to the brand, Toasting Brewery enhance the brand image, mastered the consumer market. 6. As the 2008 Beijing Olympic Games sponsor, Toasting Brewery is leveraging the Olympics, to enhance international influence of this century-old brand. Olympic marketing enhanced Toasting Brewery brand awareness and reputation in the international market and accumulated potential. . It have initial international corporate image, there have good management processes and business ideas in Toasting Brewery, which can improve production efficiency, reduce costs, improve human resource management, and other aspects of brand building. Its corporate culture and business philosophy began to transform to the international business. 8. Toasting Brewery uses oracle E- Business Suite to provide an integrated, complete and scalable management platform and solutions that enable the company to grow up continuously in the true.
By adopt Timely Expansion System which provides protection for future development, but also contains a global enterprise operations management ideas and methods to fulfill the requirements of the group of companies, international management application. Weaknesses It is also internal factors of an organization, including aging equipment; lack of key technologies; outdated research and development; shortage of funds; mismanagement; poor competitiveness. 1 . Many foreign consumers is not recognized the quality of Chinese food, and with export tariffs, China’s beer do not have such advantage. . The resources are restricted in the internationalization process, thee channel was control and the cost of overseas expansion is extremely high. 3. Toasting Brewery overseas agents are not very matures that limiting its development. 4. Toasting Brewery still subject to the international constraints, high brand awareness in the country, however, the brand influence in foreign countries is still relatively small, so the opportunity of globally massive expansion is not yet mature.
The marketing costs are relatively high when mergers and build a new branch in other countries. 5. It is difficult to build up brand loyalty and cultural connotation in the international market. 6. How to build the core competence continuously and the ability of expanding overseas market are the considerations of Toasting Brewery internationalization process. Opportunities It is external factors of an organization, including new products, new markets, new economic globalization. 2.
In the international market, especially the American and European markets, consumers have big purchasing power, and the competitive environment is great profitable than China’s market. 3. Toasting Brewery is innovative, it launch new rodents continuously and it good at analyze market’s trends and consumer behaviors; which have opportunity in expanding the market demand and increase the market share. 4. Toasting Brewery has trying to transform from export via trade agents in the past to they do the export activities themselves now.
Threats It is also external factors of an organization, including new competitors, increased in substitute, decrease in market demand, changes in trade policy, economic recession and any sudden events. 1. There have great market competition in global beer market and domestic beer market, such as Budweiser (America), Beck (Germany) is lobar competitors, and Yanking Beer (China) is domestic competitor. 2. The population of the beer tastes in different countries is different. 3.
There have differences characteristics of consumers among different countries and the country’s market environment is also quite different. Toasting Brewery existing marketing strategy is outbound (traditional) marketing, that mixed with brand communication, consumers’ experience and products sales using which is only give information to mass amount of people, but no target audiences, it is one-way communication that no customer engagement involved, this marketing treated is not effective for our contemporaries.
Inbound marketing is becoming a new trend, which is pull customer when they discover a need or interest, they will try to find out more information themselves, that is two-way communication; digital marketing is one of the effective method in inbound marketing, that make use of electronic devices such as tablets, smartness and computers to engage with stakeholders. Website development, trade show & events attendance, branding, search engine optimization, customer relationship management, public relations, social networking and video production.
Integration Website, message structure, CRM system, Sales process – unregulated, department, people responsibilities Tactics/ tools Social Media: Referral traffic, encourage engagement, professional forum posts, additional BIB networking, apply RACE model Online PR: strengthen existing/ new image, deliver new value Offline Online Branding: Old message vs.. New message CRM Email plus Mobile marketing A prize draws to win a holiday Customer who read online video or product demonstration Find an answer to the question Text the answer with their name and email address What you get as a marketer from above