Sabmiller in China
SABMiller in China
A Case Study on Global Market Entry Strategies
BA 175 | Global Marketing
THX
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INTRODUCTION
SABMiller, the company formed when South African Breweries (SAB) PLC bought the Miller Brewery unit of Philip Morris in 2002, is the world’s third largest brewer. Before the acquisition, SAB is already operating more than 100 breweries in 24 countries, most of them in the developing countries of Central and Eastern Europe; and Miller, on the other hand, has 9 breweries in the United States. The new company is seeking to establish some of its brands in the markets where it has no presence before the acquisition: Miller brands in Europe, and SAB brands in the United States.
The company is facing tough competition with Anheuser-Busch InBev, the world’s largest brewer. This company has globally established brands like Heineken, Amstel, and Guinness; and SABMiller aims for its brands to achieve the same global status. The two companies are making strategic investments in China, the largest beer market in the world with annual sales of $6 billion.
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ISSUE IDENTIFICATION
What foreign entry strategies should SABMiller employ in order to (1) Introduce Pilsner Urquell and Tyskie in the United States, and Miller Genuine Draft in Eastern Europe; and (2) Penetrate the Chinese beer market?
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ANALYSIS
In deciding what strategy to utilize in introducing the SABMiller brands into new markets, these points should be taken into consideration: 1. Brand Positioning
SABMiller wishes to build Pilsner Urquell into a national brand in the United States, eventually leading to the status of a premium global brand that will rival Heineken. The company also hopes to successfully launch Miller Genuine Draft as a premium global brand in Eastern Europe. With these in mind, one can expect that there will be a massive launch
A Case Study on Global Market Entry Strategies
BA 175 | Global Marketing
THX
-------------------------------------------------
INTRODUCTION
SABMiller, the company formed when South African Breweries (SAB) PLC bought the Miller Brewery unit of Philip Morris in 2002, is the world’s third largest brewer. Before the acquisition, SAB is already operating more than 100 breweries in 24 countries, most of them in the developing countries of Central and Eastern Europe; and Miller, on the other hand, has 9 breweries in the United States. The new company is seeking to establish some of its brands in the markets where it has no presence before the acquisition: Miller brands in Europe, and SAB brands in the United States.
The company is facing tough competition with Anheuser-Busch InBev, the world’s largest brewer. This company has globally established brands like Heineken, Amstel, and Guinness; and SABMiller aims for its brands to achieve the same global status. The two companies are making strategic investments in China, the largest beer market in the world with annual sales of $6 billion.
-------------------------------------------------
ISSUE IDENTIFICATION
What foreign entry strategies should SABMiller employ in order to (1) Introduce Pilsner Urquell and Tyskie in the United States, and Miller Genuine Draft in Eastern Europe; and (2) Penetrate the Chinese beer market?
-------------------------------------------------
ANALYSIS
In deciding what strategy to utilize in introducing the SABMiller brands into new markets, these points should be taken into consideration: 1. Brand Positioning
SABMiller wishes to build Pilsner Urquell into a national brand in the United States, eventually leading to the status of a premium global brand that will rival Heineken. The company also hopes to successfully launch Miller Genuine Draft as a premium global brand in Eastern Europe. With these in mind, one can expect that there will be a massive launch