TSINGTAO CASE STUDY

Tsingtao Case Study

Tsingtao Case Study

Introduction

The purpose of this paper is to construct and effective plan for the launch of Tsingtao beer in the market of United Kingdom. According to the analysis of the case, it can be interpreted that in the scenario Tsingtao aims to expand its market by targeting the untapped market segment of the United States. Halewood International has provided this opportunity to Tsingtao beer. However, in order to grasp a substantial market share in the markets of the United Kingdom, Tsingtao must develop effective plan. According to the analysis of the global market trend of beer, the market demand is enhancing with the passage of time. Therefore, Tsingtao will face severe competition from the existing market players in the market of United Kingdom. Moreover, the increasing opportunities of growth in the beer market can enhance the competition for Tsingtao in the U.K market from Chinese and other global brands.

Strategic Marketing Objectives Tsingtao

Sticking with expanding Tsingtao's market share and consolidating its leadership in the Chinese beer market, Tsingtao Brewery Co Ltd continues its strategy of focusing on its major brand Tsingtao and developing the other three regional brands Laoshan, Shanshui and Hans at the same time. Meanwhile, with the premiumisation trend going in the Chinese beer market and to increase profit margins, Tsingtao is placing the greatest emphasis on premium product lines. In addition to the Chinese beer market, Tsingtao is also expanding its business in the U.K markets to consolidate its image as the most famous Chinese beer brand abroad (Johansson, Leigh, 2011, 96).

Analysis of Beer Market in U.K

The U.K is the largest beer importer globally, however imports declined drastically by 10% in 2009 as the recession impacted imported beer in the country. Nevertheless, the sales forecast of Tsingtao generally limits to its existing target markets, where per capita beer consumption has increased from 18 litres in 2001 to more than 35 litres in 2011. As this is still half the rate of current per capita consumption in more developed markets like the U.K (69 litres); hence, there remains room for further development (Basu, 2010, 78). U.K, with its rapidly growing consumption, has been the centre of attention for many years now, and the country's key role in the global beer market appears to remain strong.

With nearly 13 billion liters of additional beer volumes over 2006-2011, U.K has provided a strong base for Tsingtao to establish their presence and claim a place among the top 10 global brewers (Danylchuk, MacIntosh, 2009, 58). In 2011, three of the top 10 beer companies by volume are Chinese players - market leader China Resources is the fifth largest global brewer, while the country's second ranked player Tsingtao Brewery holds sixth spot and Beijing Yanjing Brewery sits eighth in the global rankings. Moreover, international players are also trying to tap into the fast growing market of U.K.

Tsingtao's Segmentation

Tsingtao aims to penetrate the untapped beer market of U.K with the opportunity provided by Halewood International, in order to ...