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Business GAC022 AE2


GAC022 Assessment Event 2: Written Report

Marketing a Local Brand Overseas

Student’s Name: Phoebe. Han Student ID: 26 Teacher: Helen Due Date: 2014/5/19 Word Count:

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Table of Contents

Executive Summary

1.0 Introduction

2.0 Methods

3.0 Findings

4.0 Discussion

5.0 Conclusions and Recommendation

Executive Summary
The purpose of the research was to determine whether to market wine in Russia or Brazil. All the information and data was collected online and by interviews. The wine should be promoted in Russia and Brazil since it has more advantages there.

1.0 Introduction
The brand I will market in foreign countries is Chang Yu. The wine company was set up by Bishi Zhang on 1892 in Yantai, Shandong province. Nowadays, Chang Yu has become the most famous local wine brand in China. I choose this brand since I think the development of Russia and Brazil in spirit industry and services industry are very high while the wine industry were weak, so the Russia and Brazil would like to have more chooses of wine. And the transportation between China Russia and Brazil is very convenience, which makes it easy to sell the brand and do market researches there. Two business concepts will be applied in the research process and evaluation of results: foreign market entry modes and PEST analysis. Market entry modes are approaches companies use to enter a new international market, including exporting, licensing, joint venture, foreign direct investment and the Internet. PEST analysis is a tool to examine four aspects of international market, including political,

economic, social-cultural, and technological factors.

2.0Methods
All data can be collected by searching information on appropriate websites. Relevant data about political, economical, social-cultural and

technological factors in Russia and Brazil will be downloaded from the Internet. These data is helpful in comparing two countries ’ external environment. The manager can provide most updated information about diverse market. In addition, the data offered is accurate, and it will increase the validity of the conclusion. Then data can be evaluated to determine the better market for Chang Yu.

3.0Findings
Recent years, the government of Russia sets many restrictions importing in order to prevent negative effects foreign companies have on local economics. Russian’s economic growth is positive in all areas. Although high, inflation rate continued to decline these years. The only problem in Russian economics is high taxation. Many local corporations seek illegal ways to avoid the tax. Russian information technology is advanced in the world.
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Since 1993 Brazil and China establish strategic cooperative relations, with the support of political, bilateral trade has become increasingly frequent.

So far China has become the second import country of Brazil, it is beneficial to Changyu to sell wine in there. But Brazil is one of the countries which have heaviest taxation in South America, a certain extent, it can affect the return. As the economical, Brazilian GDP share composed of three aspects, the largest share is that the services industrial, it take 52% of the GDP share, the large-scale industry takes 40% and the agriculture just takes 8%, from here we can see that there is a wide market for Changyu to develop the wine industry. In Russia, Unilever uses foreign direct investment in Russian market. It has acquired 82% of the stock in leading Russian beauty company Kalina. Unilevel plans to invest up to 50 millions in agriculture in Russia’s Tula region by 2014 since it can agricultural production is related to company’s profits. It can also contribute to economic development and employment rate of the region. Russian Unilevel is considered the best employer among students of some Russian universities. It not only promotes its brand, but also holds social responsibility in Russia. also uses foreign direct investment Unilever in Brazil. Brazilian Unilever abides labor laws and accepts labor unions. On 1997, Unilever purchased the ice cream company named Kibon in Brazil, and sell its chemical industry related industries.

4.0Discussion

The common disadvantage of both Russian and Brazil are the high taxation and the restriction of foreign companies and staff. Also compare with the taxation in both Russia and Brazil, the taxation in Brazil is heavier than Russia, but in Russia, the wine from France is more famous, it is a big competitor. On the other hand, because of the environment people in Russia prefer to drink spirit. PEST analysis of Russia and Brazil can provide comprehensive analysis of whole markets in these two countries, but the sources are limited sometimes, so some detail information may not able to find in the websites.

5.0Conclusions and Recommendation
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According to my research, I think that Brazil will be the chosen place to market wine. First of all, with the development of the relationship between China and Brazil, the trade cooperates will be support by the governments.

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Next, because of the climate, Brazil is not suitable to grow grape, it limited the wine industry’s developing; therefore they need to imported wine.

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Last, the wine-making in Brazil is not developed, it is a opportunity for Chang Yu, if it success in the Brazil Market, the country with the second largest territory in the word, it will take a place in International Wine Industry.

If Chang Yu wants to open the Brazilian market, they need to pay attention to adjust the taste of wine, make it suitable for Brazilian.

References
Brazil http://www.austrade. gov.au/Brazil-profile/defanlt.aspx. Country Economic Data http://www.econmist.com/countries/ Unilever
http://zhidao.baidu.com


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