International markting

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1. Complete the following tables and explain. (Be very specific!) (70 points)

Indirect External Environment

Pricing and Distribution

Political

Legal

Alcohol market segmentation and consumption is extremely low in the Middle East and Africa (less than3% globally for all SBU’s) due to government laws restricting the sale and consumption of alcohol.

In the US, internet retailing faces a possible threat in the from of taxes. Federal legislation, which already exists on a state level in some place. Maybe enacted that requires state sales taxes to be collected on every e-commerce transaction.

Amazon tries to use drones to deliver shipments.

TWO factors determine the price of a barrel of oil: the fundamental laws of supply and demand, and naked fear. Both are being tested by the violence that is tearing through Libya, the world's 13th-largest oil exporter. The price of a barrel of Brent crude now hovers around $115. On February 24th, however, it rose to almost $120, as traders realised that they might have to do for a while without some or all of Libya's exports: some 1.4m barrels a day (b/d), or about 2% of the world's needs.

Economic

Wine is consumed significantly higher by Specialist Retailers (20.3% globally). Beer and wine are have low SR and higher consumption through super/hypermarkets.

E-commerce remains virtually undeveloped in emerging markets such as Venezuela, Malayis, India, South Africa, Indonesia and the Philippines, where less than 1% of retail sales were made online.

In Europe, the manufacturer Group Lactails has been expanding, becoming the 4th largest player in the region with a market share of 3.3%

Social

Culture

The persistence of alcohol use, on a near-universal scale, throughout human evolution, suggests that drinking must have had some significant adaptive benefits, although this does not imply that the practice is invariably beneficial.

From the earliest recorded use of alcohol, drinking has been a social activity, and both consumption and behaviour have been subject to self-imposed social controls.

Attempts at prohibition have never been successful except when couched in terms of sacred rules in highly religious. Cultures.

M-commerce is particularly highly developed in Japan. Here, as much as 35% of internet sales were made with a mobile device in 2013. This channel has also made dynamic progress in the UK, where its share rose from just 4% in 2011 to 20% in 2013

Technology

Internet retailing and smartphone use are fast changing the way people approach. Consumers can now buy virtually anything anytime. And you can get it from anywhere from the world. Like liquormart.

Online media products sales are predicted to grow by 78% over the forecast period, driven by the move towards digital adoption of content via new service such as Amazon’s fire TV, which will offer streaming video for service such as Netflix, Hulu, Youtube and Amazon Prime video

As a result, new payment methods are being developed. PayPal dominates the Market for Alternative web payments, while digital wallets, such as Google’s Instant buy and Visa’s V.me, store consumers’ payment information in the cloud to reduce the steps to purchase.

Direct External Environment

Pricing and Distribution

Suppliers

Diageo, the global leader for Spirits, created three exclusive museum/clubs/retail outlets for its most premium brands in Shanghai, Beijing and Seoul, Korea called Johnnie Walker Houses. Only VIP guests get to tipple, purchase the most premium brands of Scotch, or partake in whisky-inspired dinners.

China Integrated energy purchased approximately 65.5% of our gasoline and diesel oil products from our top five suppliers in 2009. During 2009, we purchased approximately 30.8% of our gasoline and diesel oil products from Shaanxi Yanchang Group, the fourth largest oil company in China, with whom we have had a strong long-term relationship. While Shaanxi Yanchang Group supplies most of our gasoline and oil?

The Kroger Co. is one of the nation’s top grocery retailers. They focus is to be a leader in the distribution and merchandising of food, pharmacy, health and personal care items, seasonal merchandise, and related products and services. Also they place considerable importance on forging strong supplier partnerships. Our suppliers, large or small, local or global, are essential components.

Customers

In terms of global consumption by consumers, Beer leads the market with 48.4% followed by spirits at 27.6% and wine at 24%.

Internet sales have benefited from the new culture of thrift, whereby consumers aggress sively search out online bargains, whether from discount retailers such as Amazon, group buying websites such as Groupon or via daily deals or one off sales events, such as Black Friday.

Customers in emerging markets have less trust in online payment methods, slowing the growth in online retailing in these areas.

Competitors

Anheuser-Busch InBev and SABMiller, the top two Beer companies for the United States and Asia-Pacific (China) make up 32% of the global market for Beer.

In Europe, the manufacturer Group Lactalis has been expanding, becoming the 4th largest player in the region eith a market share of 3.3%

Amazon increased its global dominance during the review period, raising its market share from 8% to almost 12%. The company has expanded via both acquisitions and organic growth, focusing on both diversification and geographic expansion.

Social interest

Group

(sigs)

Alcohol and Beer Companies: Fearing competition for the dollars Americans spend on leisure, alcohol and tobacco interests have lobbied to keep marijuana out of reach. For instance, the California Beer & Beverage Distributors contributed campaign contributions to a committee set up to prevent marijuana from being legalized and taxed.

Develop training materials/session specific to the oil & gas industry.

Facilitate community food security, or equitable physical and economic access to safe, nutritious, culturally appropriate, and sustainably grown food at all times across a community, especially among vulnerable populations.

International organization

Member beer, wine, and spirits producers to make even more rapid, focused progress in promoting the responsible use of our products.

The World Food Summit defined food security as existing “when all people at all times have access to sufficient, safe, nutritious food to maintain a healthy and active life”. Commonly, the concept of food security is defined as including both physical and economic access to food that meets people's dietary needs as well as their food preferences. In many countries, health problems related to dietary excess are an ever increasing threat, In fact, malnutrion and foodborne diarrhea are become double burden.

ILO estimates that nearly 6 million people are directly employed by the petroleum industry and over ten times that number of jobs are indirectly created by the industry. Employment opportunities for women in the petroleum industry are increasing, but from a very low base. This may be because of harsh working conditions in the industry: long hours work, especially in oil production; increasing amounts of work round the clock, in difficult, remote areas ; scheduling of shifts particularly offshore when rotation patterns are constrained by transport schedules and limits on accommodation. The petroleum industry faces the shortage of skilled workers.

Regional

Groupings

Factors that may underlie or influence drinking culture include a state’s demographic make-up in terms of age, gender and race/ethnicity groups, the distribution of socio-economic characteristics such as educational attainment, income and wealth, a state’s mix of religions with differing perspectives on alcohol use.

IMA is the procurement and marketing facilitator for six strong regional broadline distributors. Unlike other groups, IMA is not a traditional buying group or a corporate distributor. Rather, it combines its members’ purchasing volumes and supports shared marketing programs to promote member growth. IMA’s members also belong to DMA. The members have 41 distribution centers and all focus on multiunit sales.

The RDC totals 282,000 square feet with expansion capabilities to 370,000 square feet. It is the latest demonstration of BMW’s continued dedication to its customers and dealer network in the U.S. and the company’s recognition of the economic importance of the Dallas/Ft. Worth Metroplex and the entire Southern Region to BMW’s success

Regulatory

Agencies

The Sale and Supply of Alcohol Act 2012 establishes the Alcohol Regulatory and Licensing Authority (ARLA), which is the national body with responsibility for ensuring that the law is fairly applied and District Licensing Committees (DLCs), which are established by each territorial authority to issue licences.

Milk Manufacturers must follow FDA regulations and guidances.

At the beginning of the twenty-first century, increased levels of terrorist activities and a higher incidence of food-borne illness made regulation and protection of the food supply a worldwide concern. The goal of food regulatory agencies is to ensure that the public food supply is safe from disease caused by infection from human handling or by contamination from chemical or other hazardous substances. Such contamination can occur during all phases of food production, including cultivation, harvesting, processing, packaging, storage, and cooking.

In the United States, the regulation and safety of the food supply has received attention since the mid-nineteenth century. Today, many of the U.S. federal agencies serve as regulators or advisors for the food supply in the United States and throughout the world. There are four major U.S. federal agencies involved in food regulation and safety.