Analyze the Changes in the Chinese Beer Market up to 1995, Bearing in Mind Changes in Beer Demand

Day 1, Preparation Assignment

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Exercise 1: Analyze the changes in the Chinese beer market up to 1995, bearing in mind changes in beer demand.

External Factors through PEST analysis:

3Cs to analyze Beer Market in China in 1995:

[pic 1]

Exercise 2: Consider the segment of the Shanghai beer market that Shanghai Suntory sought to enter and the reasons for the company’s choice.

[pic 2]1996: Market segment and its market share looked like this:

Segments: Premium Beer, Regular and Low Priced beer. The consumption of these beer types were directly related to People’s monthly earnings.

Competition in Shanghai beer market: 

• At one time, (1988) Reeb Beer had the biggest market share in Shanghai.
• After 1999 Tsingtao Beer took leadership in beer production and remained as leader for several years. It was perceived as Premium Beer but priced at Regular Beer pricing.

Exercise 3: Evaluate the marketing mix that Shanghai Suntory adapted from 1996 to 1997, and analyze the reasons for its success.

Product:

Suntory White – Low priced targeting young people

Suntory Gold – High priced targeting Young People

Heavier and Stronger Bottle to avoid forfeits

Unique sized Plastic box containing 20 bottles for transporting to also create barriers for forfeit.

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