Analysis of present environments Essay

Other factors that may be included in the analysis would be the presence of other alcoholic beverages in each market that may affect the sales of the possible expansion. We have to take into account that Scotch and wines do not comprise the whole market for alcoholic beverages. If the consumer preference would be as volatile as it poses to be, then the other beverage drinkers may switch from their present beverage to another. The scary part of the situation is, we could not determine as of now, if the possible expansion would gain or spell disaster for the company. Another factor to be considered is the indices in the market. This indices are the indicators whether the public would be able to squeeze the purchase of a whisky in their budget. This simply draws out the in demand products that would be dubbed â€Å"necessities† and the lesser needed products, known as the â€Å"luxuries. † The movement of the product from a luxury to a necessity spells success, but the other way around would be a bad sign for the expansion. Couple this factor with the volatility and the result would be a very risky market with high gains and disaster on the other end. The analysis of the present environments is important for a marketing strategy as this would help us understand the environments under the influence of, and that influences the countries in question. However, the factor of bias takes in, which usually has to be negated. The negation process would take place by as the objective part of judging by criteria, comprising half of the decision and the other half, the subjective decisions. First, before any analysis would be made, certain criteria would have to be in order for the comparisons. Considerable weights should be given to the consumer expectations and preferences (30 points), labeled A. This would help us determine the choices of the consumers that we are trying to serve. This weighs heavily since the consumers are directly related to the profits that the company would generate. Next in line would be the rate of acceptance of the market (30 points), labeled B. This is another heavy criterion since this would determine if the country is really suitable for the operations of the company in question. If the results would be heavily low, then we can conclude already that the company would not thrive in that specific country. This greatly helps in the subjective side of the judgment. Another criterion to be judged is the taxation in their country (20 points), labeled C. Taxation may not weigh as much but it weighs significantly at 20 points out of the 100 point total. This is because taxation affects the rate of the profit that a company generates. A higher taxation rate would then lower the chance that a company should invest in the specified country. And the last criteria to be considered would be the performance of the substitute (20 points), labeled D. These criterions would not only let us see the objective part of the problem by looking at the figures that the criteria would present. However, we have to bear in mind that the decision-making of this marketing strategy would depend not only in its objective part, but should also be considering the subjective part of the problem. Some problems cannot be explained by figures and leaves this part to the analytical and subjective mind of the decision-maker. Further statements from the analysis of the criteria would bear the interpretations of the scores. After which would be the ranking of the scores to determine which country scored the most points in achieving the goal of successful expansion for the company at hand. However, the final decision would lie after the subjective part of the theory. Country A B C D TOTAL RANK Denmark 30 25 20 15 90 1 N. Ireland 30 20 20 10 80 3 Austria 25 25 20 15 85 2 Spain 25 25 10 15 75 4 Points to Ponder:? Denmark’s score was due to the (1) good age distribution as the median of the age of males in the 15-64 bracket is just 38, stating a more diverse markets for the old and young drinkers. (Anonymous 2006f) (2) The market would suit the product just fine. In fact, the market in Denmark, in terms of the raw materials seem to give a very positive sign for Denmark as this could lead to further expansions (Anonymous 2006f)(3) The taxation does not bother this country as shown in here. Denmark seems to be comfortable not to be accommodated by the top four of the Union’s Top Four of Taxes. (Anonymous 2002) (4) Substitutes seem to be performing well, but not enough as the growing demand for Scotch whisky is trying to speed up the development of the local supplier of the product. These ratings have put Denmark in the No. 1 spot. ? Northern Ireland bags the second spot easily for a variety of reasons: (1) the lowest median mark was achieved by this country; with just a median of 33 years old, it generally means most of the male population are below the 40 year old mark, a good sign for the company. The company generally caters more to the male crowd, and the flavors of the Scotch whisky have a specific audience. More drinkers are also available for judgment since the younger drinkers are the ones who prefer the other flavors, unlike the older crowd. An example of this would be, many young drinker’s can be the target for the release of the Monreith Malt. Simultaneously, the market for The Torhousemuir Tawny, would also penetrate the older market, such of the 40 years and above since they still have a part of the market, although they may play the minor role in the profit margins. (2) Generally, this is neither good nor bad since the company can be seen as â€Å"one of the others† or â€Å"a new breed†. Either way, the public would remain in the middle of things, making it hard for the determination of the acceptance of the public The product originated in the same country, Another brand’s addition to the market may be viewed as a mediocre thing for the public. This people would really try your brand, just make a good offer in the initial release, sort of a bargain. (3) Tax problems have never plagued the country after the tax involved issues of before where Kings and Queens reign this land. Nowadays, it seemed like the people of Ireland have learned their lessons from the past events. (4)Market substitutes are on the loose, since this is the origin of Scotch whisky. Generally, substitutes would be of great numbers, which definitely pose a bad sign since your product can be swallowed by the market. ? Austria’s rates were affected by (a) since the people of Austria are known to be of good taste, then the consumer expectations would be high; knowing that The Olde Distillerie is from the country of United Kingdom, the country where the brewers of Scotland have originated (b) acceptance was marked as such since the country is sail to have taste in things that are not really rich in its flavor, but also in history. (c) Demography of the country shows a 40 year old median for the men in an evenly distributed country. This result shows an inclination in the stronger brew of the whisky since it says that the composition of men are said to have evenly distributed age, with older men winning the battle of numbers. Other products would have problems in their sales since the market would only focus on the older men market, since the median age was 40. Added costs for extra marketing strategies would be needed to gain the necessary profits needed by the company for the other products. (Anonymous 2006j) (d) Good taxation brings the country on the top four of the European Union (Anonymous 2002) This is a good sign for Austria as this is viewed as a country with less taxes, therefore, more profits. And this could also open doors to the export market, as this has been a very good opportunity for the company. ? The least attractive of the choices given, Spain does not provide any chance to defend itself due to the factors affecting its market. Some problems to the expansion there include: (1) The demographic distribution of the male population is not as diverse as that of Northern Ireland. (Anonymous 2006i) Although this may prove to be a positive sign, let us not forget the male’s sense of pride that they would not readily exchange the wine for a foreign drink, especially of a new brand in the market. (2) Market acceptance is not a problem as Spain is known to be one of the world’s top consumers of alcohol. However, acceptance may just remain to be accepted and not commended. (Anonymous 2006k)(3) Another issue: tax. Spain has been known to be a country brutal on its taxes in order for them to challenge the substitute market for their wine. As they increase the tax, they tend to lower the market consumption of the substitutes for wine, like scotch whisky (4) Lastly, scotch whisky’s only substitute here would be that of the gin, tequila, and beer. Wines are the primary products, making it look like Scotch whisky is really a substitute for the main product, wine.