Deutsche Brauerei
1) What accounts for Deutsche Brauerei’s rapid growth in recent years? Specifically, what policy choices account for this success?
There are several factors that lead to rapid growth of Deutsche Brauerei. To begin with, Deutsche Brauerei itself has succeed in Germany by winning quality awards consistently over the years.
Secondly, After a fire destroyed the manufacturing plant in 1994, the more efficient equipment was purchased. It was capable of increasing the brewery’s potential output. Once Deutsche Brauerei expanded into the Ukraine, the additional capacity became necessary to handle the expansion in Ukrainnian market.Therefore, Deutsche Brauerei can effectively utilize the unused capacity.
Next, Entering the Urainian market is considered to be one of the significant factor to the rapid growth. The dissolution of the U.S.S.R. brought market reforms so Deutsche Brauerei decided to enter this fragmented beer industry because Ukraine has large population and it located within Central and Eastern Europe.In 1998. Oleg Pinchuk was hired away from a competitor as the marketing manager. Pinchuk had set up the credit and inventory policy which are extending credit to distributors in Ukraine from 2% 10, net 40 to 2% 10, net 80 and implementing field warehousing in order to support the fragile distributor network. Then, Deutsche’s beer quickly became so popular that the volume sales can offset the negative currency effects due to Russian debt crisis. The next 2 years saw a dramatic increase in sales to 25,847 by the end of 2000.That is mean sales in Ukraine had greater impact on Deutsche’s total sales that account for 21% and 28% in the year of 1999 and 2000 respectively.
Change in credit and inventory policies
The new marketing strategy helped to capture the market efficiently
Serving market through a network of independent distributors
2) What is Deutsche Brauerei’s credit policy toward its distributors in Ukraine? Why is it
There are several factors that lead to rapid growth of Deutsche Brauerei. To begin with, Deutsche Brauerei itself has succeed in Germany by winning quality awards consistently over the years.
Secondly, After a fire destroyed the manufacturing plant in 1994, the more efficient equipment was purchased. It was capable of increasing the brewery’s potential output. Once Deutsche Brauerei expanded into the Ukraine, the additional capacity became necessary to handle the expansion in Ukrainnian market.Therefore, Deutsche Brauerei can effectively utilize the unused capacity.
Next, Entering the Urainian market is considered to be one of the significant factor to the rapid growth. The dissolution of the U.S.S.R. brought market reforms so Deutsche Brauerei decided to enter this fragmented beer industry because Ukraine has large population and it located within Central and Eastern Europe.In 1998. Oleg Pinchuk was hired away from a competitor as the marketing manager. Pinchuk had set up the credit and inventory policy which are extending credit to distributors in Ukraine from 2% 10, net 40 to 2% 10, net 80 and implementing field warehousing in order to support the fragile distributor network. Then, Deutsche’s beer quickly became so popular that the volume sales can offset the negative currency effects due to Russian debt crisis. The next 2 years saw a dramatic increase in sales to 25,847 by the end of 2000.That is mean sales in Ukraine had greater impact on Deutsche’s total sales that account for 21% and 28% in the year of 1999 and 2000 respectively.
Change in credit and inventory policies
The new marketing strategy helped to capture the market efficiently
Serving market through a network of independent distributors
2) What is Deutsche Brauerei’s credit policy toward its distributors in Ukraine? Why is it