FOREIGN MARKET ENTRY AND DIVERSIFICATION Essay Example | Topics and Well Written Essays - 1250 words

FOREIGN MARKET ENTRY AND DIVERSIFICATION - Essay Example eting strategy that was ‘local skilled distributors’ oriented and focused advertisement to promote among specific segments of consumers such as attractive women consumers of beer yielded impressive results. In the present market condition when most of western economies are under recession the best business strategy is to expand to Asian markets such as India not ridden by recession and where there is large scope of beer business. Quick entry into North 45 percent of the global beer market is controlled by North America and Europe. Both the countries are facing acute recession that dragged the beer market share to a lower level. West European market has been declining since 2006 and has no hope to lift up in 2010 also. East European market which was growth oriented till last year is on the verge of declination. The emerging markets in Asia and Latin America are the only hope to enable the beer industry to provide scope of growth in future. Asia, which has the prospect to command one third of the global market sale is likely to have 5% growth rate on account of the aggressive use of beer by Chinese people. If Latin American consumption of beer is added to that of Asia’s the growth rate in sale of beer is likely to lift up to 8.3%. Sales volumes increased 3 per cent in 2008 and likely growth of 4 per cent increase in Brazil will support this rise. This is the strongest growing market today. For last five years the beer market has been growing differently in different regions World: 5.7%, Asia: 8.3%, East Europe: 7.8%, Central & South America: 6.3%, Africa 6%. Global beer market is gradually growing and alcohol market is falling The share of beer market which was about 44% in 2002 has increased to about 55% by 2009. Over the past five years, the beer industry has made a trend towards consuming expensive beers. In markets such as North America and Western Europe, premium beer’s share of total sales is already well above the global average In emerging markets,