Scotch Whiskey Marketing in China-Free-Samples-Myassignmenthelp

Question: Discuss about the Scotch Whiskey Marketing in China. Answer: Introduction: The Scotch Whiskey is one of the most iconic and the well-received alcohol-based drinks in the European liquor market. The Scotch Whiskey which has its roots in Scotland where it is made from brewing a single choice of grain or different grains. The different strategies need to be taken into account to market the product globally (Sinha, 2014). The oriental and the Asian countries have one of the Largest population densities around the world and it is extremely important for the success of the scotch marketing strategy for it to be accepted in the Asian markets. The different strategies to be employed by the different Scotch manufacturers in Scotland to market its products in the Guangdong province of China needs to understand the market and the different aspects that help in the acceptability of the scotch whiskey as the preferred liquor in the Chinese market. The marketing strategy needs to focus on the different marketing strategies in the different markets and make sure that the needs of the market are understood. The Scotch Whiskey marketers need to focus on a number of factors to make sure that the products that are being marketed appeal to the audience and are widely accepted among the Chinese market (Ahmad, 2013). Moreover, the products also need to focus on the different products for its value and how they are received in the various markets. The various strategies can also focus on the multiple target audience and the different fortes of the product that might appeal to them. Macro environmental analysis: The macroenvironmental analysis of the Guangdong province in extremely important to understand the different aspects of the various factors affecting the sales and the consumption of liquor in the province. The different aspects of the marketing strategy relating to the different aspects of understanding and application of the sales and utilization dynamics of the liquor sales in the selected province (Lau, Ng Guerrero, 2014). The different parts of the different macro environmental analysis help in understanding the markets and formulate the strategies for its proper functioning and operations of the marketing strategies in the province. PESTLE: The PESTLE analysis takes into account and evaluates a number of socio economic and environmental factors of the market of certain product in accordance to the norm and the behavioral patterns of the area they are marketed to. The different factors help in understanding the viability of the strategy implemented to market the product in an environment. Political: The political environment is very important factor to take into account for the assessment of the market as the liquor sales are very much government regulated in the different parts of the city. The political factors of the country have greatly affected the sales of scotch whisky in the current market in the country. The relaxation of the different import policies has made it easy for the scotch to be easily marketed across the different parts of the country. Moreover, the recent policy of industrialization has attracted a large number of foreign expatriates in the country who tend to keep to their taste while choosing alcohol in the country. Economic: The Guangdong province of China is one the most developed, highly populated and economically developed province in the country. The province is a hub to a number of global business and industrial operations running in China. The Guangzhou city and port are one of the main reasons of the growth of the area and the cause of the city attracting a large number of business tourists. The business magnates tend to serve their guests with the different things they prefer to have and scotch is one of the preferred liquors among entrepreneurs helping it amass a great business in the city. Social: Due to heavy industrialization and the acceptance of a number of different industries in the province along with its proximity to the South China Sea, the city has a large number of people from various cultural and ethnic backgrounds from around the world and due to the improving GDP of the area the society is affluent in general (Herrera, 2015). This overall helps in the acceptance of the Scotch as a preferred liquor as it has a universal appeal due to its taste and quality. The society of China is now actively trying to incorporate the different products of the western society which will help in the marketing of the product here. Technological: The province of the Guangdong is one of the most important industrial and information technological hubs in the country hence the technology is very developed. In this case the technology can be used for the proper storage and marketing of the product so that the taste is not affected by the different weather and climatic changes (Russell Stewart, 2014). The technology also helps in the overall marketing of the product and helps in the understanding of the market needs of the product in the market. Legal: The scotch whiskey is protected from being pushed out by their local competitors as the Scotch Whisky association has made sure that the product is a trademarked product for 10 years which will help in the overall increase of the sales of the scotch and will also help the Scottish whisky in maintaining a firm stronghold by establishing their brand value in the market. the different legal approaches also help in the establishment of the scotch market by relaxing the norms of the import making the product more easily accessible at a competitive price. Environmental: The different environmental factors have a strong influence on the different factors affecting the sales of the scotch in the Guangdong province in China. The different aspects of the analysis of the factors show that the scotch whiskey consumption does not have much impact on the environment as the products used are recyclable. Porter's Five Forces The analysis of the Porter's Five Forces helps in the understanding of the market and devising a number of strategies for the proper marketing of the product so that they are widely accepted in the market (Bower, 2016). The different aspects of the Porters Five Forces are: Bargaining Power of Supplier: The input power of the product is the overall implementation of the different strategies that affect the overall production process. The availability of the different channels of marketing and the implementation of the different strategies to increase the reach of the product in the market. the Differentiation of raw materials is low as the product is produced in Scotland and exported to the province for sale. Threat of forward integration by supplier is low as the product is supplied to the different distributers in the province and retailed from there. Bargaining Power of Consumer: The bargaining power of the consumer depends on the different factors that helps the consumers in buying the different products in the market and the number of choices available in the market. The Bargaining power of the consumers in low in this context as the scotch whisky is an exclusive product which may have competition among its different makers but the product is marketed from the same country. Intensity of Rivalry: The intensity of rivalry in the scotch market is relatively low in this province of China as the Scotch is one of the products whose production procedure is very elaborate and a number of different producers cannot produce it. The rivalry in this context is very low and if it exists it is between the different scotch brands that are marketed from Scotland itself. The low intensity of rivalry helps in the establishment of the scotch as a bran in the province. Threat from Substitute Products: The threat from the substitute products in the case of different alcohols is high as in the segment of the exclusive alcoholic liquors the cognac is one of the major substitute of the scotch being marketed in the area. The scotch whiskey has a low threat from other substitute products such as vodka and whiskey as the people preferring high end and aged liquors go for aged drinks which are equally tough to produce and market and are therefore available at relatively similar prices. Threat from Potential Competition: The thereat from the potential competition is high as China has relaxed the alcohol import policies and there are a number of different high end premium whiskies and alcoholic beverages available in the market. the proximity to the port in the province also helps in the increment of the competition as it makes it easy for the different producers to ship their products to this part of the country. The different macro environmental analysis helps in the better understanding of the target market of Guangdong and help in devising strategies to have an upper hand in the different environment. Targeted Market Plan for Future Expansion: The target market plan for the future expansion of the different scotch whisky in the market of Guangdong needs to emphasize on a number of different factors before focusing on a full-scale expansion in the province (Bryson Atwal, 2014). To achieve a complete reach in the market the various factors to be focused are: The needs of the consumers as it is one of the most important factors affected the sales of the different products in China. Due to the current decrease in the import duties of the various western products people are gradually becoming open towards trying the western products in the country. the company needs to target the various working professionals in the city along with the western expatriates who chose to have scotch. Marketing Strategy of the different scotch whiskies in the market needs to focus on the different parts of the province other than the Guangzhou city which already a number of consumers of the product amongst them. this is very important to market the product based on the quality of their taste and exclusiveness to have a proper market penetration in the province. Market analysis will help in understanding how the product is perceived among the clientele and how the perception can be changed or cashed on for maximum benefit. Segmentation: The market segmentation helps in dividing the different determinants affecting the sales based on a number of influencing factors: Behavioral: The behavioral factors have an important role to play in determining the sales of the product as the consumer behaviors and their own perception has an important role to play in acceptance of the product in the market. Mostly the people tend to have scotch for the luxurious taste. Psychological: The psychological perspectives of the sales have an important role to play as the product is often use as a sign of affluence and is widely used in the meeting which are there for official purposes. Moreover, some people tend to prefer the aged taste of the product. Demographic: It is one of the most important factors to take into account for the understanding of the consumer usage patterns and to whom it should be marketed to. In this province the product should mainly be marketed to the male entrepreneurs and high earners who wish to have a luxurious drink. Geographic: The availability of the product in the different areas is an important factor in understanding the reach of the product across different markets. The availability of the product should be more far reaching for its better consumer reach. Targeting The targeting of the market is an important factor to pay heed to for the success of the different marketing strategies for the overall evaluation of the market strategies to make sure of the maximum reach of the different Scotch Whiskey products in Guangdong market. the target of the companies should be set on marketing the product among the different markets of Guangdong. The target consumers of the product should be based on the geographical and the psychological factors which will help in influencing the consumers and increasing sales (Rambourg, 2014). The consumers who work in the different global operations and have a taste for fine and authentic quality products in the different markets should be targeted by the different scotch brands for maximizing their sales. The geographical approach will help in the proper marketing of the product. The USP of the product will be that it is one of a kind and will not be available in the country in any other form will greatly help the caus e. The target market in this case has to go beyond the expatriates and the tourists coming to China and it is extremely important for the overall success of the scotch as a preferred drink in Guangdong. Figure 1: The change in Scotch Whisky sales in different countries in till June 2017 (Source: scotch-whisky.org.uk) Future strategy The future strategy of the company should include the different market segments and the different promotional strategies for the proper marketing of the products among its consumers. The different strategies of the company should include to ensure the availability of the products to the different consumers at a viable price (West, Ford Ibrahim, 2015). The pricing strategy of the different scotch whiskeys in the markets should depend on the market needs of the product. In the recent times the single malt scotch had gained a much more prominent market in the Province than the double malt or the blended scotches, which also shows that the Chinese market is developing a taste for the scotch whiskies in time. It is therefore the best opportunity to cash in on the different marketing strategies that have shown itself in the recent time. The scotch whiskey sales in china increased by 25% in the first half of 2017 which show the emerging market that china poses to be in the business of Scot ch (Scotch Whisky Association - Media Press, 2018). The consumption is also increased after the decrease of the trade embargo laws in the country which makes the import and retail of whisky easy. In the year of 2017 the sale of single malt scotch grew by .5% in China which shows the viability of the market. Conclusion The scotch whiskey marketing in Chinas Guangdong province is based on a number of factors that affect the liquor consumption and the overall acceptance of the western products in the Chinese society. nevertheless, the globalization and the shifting of a number of western expatriates in China has created the market for the spirit. It is also being accepted by the local Chinese people. The different taste of the product along with the exclusiveness attached to it has the product. It is seen that the sales of the scotch whiskey are on the constant rise in the country and the Guangdong province being tone of the most industrially advanced and the hub of the global business operations in china has shown a considerable rise in the overall sales of the scotch in the province. Much of the increase in sales and the rise in the sales of scotch can be attributed to the business and the market of Guangdong. Thus, it can be seen that the considerable rise in the sale of the scotch whisky products in Guangdong, China is due to the change in the policies and the market can be further exploited. References Ahmad, A. (2013). Globalization of Culture (or Cultural Globalization). InNew Age Globalization(pp. 169-177). Palgrave Macmillan, New York. Bower, J. (2016). Scotch Whisky: History, Heritage and the Stock Cycle.Beverages,2(2), 11. Bryson, D., Atwal, G. (2014). Going beyond misconceptions: Avoiding pitfalls on the route to sustainable growth. InLuxury Brands in Emerging Markets(pp. 201-210). Palgrave Macmillan, London. Herrera, M. E. B. (2015). Creating competitive advantage by institutionalizing corporate social innovation.Journal of Business Research,68(7), 1468-1474. Lau, Y. Y., Ng, A. K., Guerrero, D. (2014, May). Becoming a major hub in the distribution of wine: Hong Kong as a gate to Asian markets. InIFSPA-International Forum on Shipping, Ports and Airports(p. 22p). Rambourg, E. 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