Harboe : implant a Danish brewery in the French market

Résumé du document

To export beers in the French market is quite different than selling it in Denmark. The concept of the company is selling a very wide range of products. Due to the success achieved in other Nordic Countries we thought it would be interesting to see if Harboe would succeeds in the French market assuming that there are certain similarities between the countries in North and can lead to the same enthusiasm for beer that is seen in Denmark and Sweden. How attractive could the range of Harboe's drink be in the French market and what could be the best entry mode for this market? - How is the customers demand (for beers) on the market? - What is the degree of competition within the industry? - What is the estimation of a potential turnover for Harboe on the French market? - Which strategy should Harboe use to enter the French market? We will describe, analyze and evaluate Harboe's export experience and the attractiveness of the French market with an illustration of the demand and competition. In the light of this study, we will find the most advantageous strategy to enter the market. The definition of an attractive market is a market where Harboe is able to achieve a reasonable demand, a degree of competition and a positive estimation of the market. To enter the market, we mean the theory and the strategy Harboe should follow to obtain a profitable business with the best possible terms.

Extraits

[...] For the young people who love partying, the beer is a Thrifty motive; the price is primary for them. For older people, we could say that is a Snob motive, they want just good beer even if the price is high. Organization BtC: The end user participates in the buying, and therefore he/she could be the initiator. Other initiators could be friends or family. The influencer could be for young people their friends, family or commercials and for older people their life partners, co-workers or commercials. The decider, the purchaser and the final user is the consumer. [...]

[...] It has to be a distributor who is locally known, established and who knows the French beer market. The distributor has to be positioned in France, because it is our potential market. Objects BtC + BtB: In the year of 2008 there were sold 1,9 billion litres of beer on the French market, which is about 7.35 billion euro[1]. And one of the biggest players on this market is the French Brasseries Kronenbourg SA, which owns approximately of the beer market. [...]

[...] GDP per capita is determined by productivity per hour worked, which in France is the highest of the G8 countries in 2005, according to the OECD Income distribution: The mean disposable income for a single French person reached €18,235 annually; this rose to €46,420 for a family with two children. On average, the monthly mean income reached in 2006. Harboe will have a large potential target group with high purchasing power. Disposable income rose at a brisk rate throughout much of this decade but too much of the additional demand spilled over into imports. Inflation: The inflation in France can be described as low but increasing. In 2003, the inflation rate was rising to 2.8 in 2008. [...]

[...] So if Harboe wants to integrate the market, it will have to follow these companies for the price predicated. One of the forces of Harboe is its wide beer's range. So it could touch a lot of customers with different products. Bargaining power of buyers The power of buyers is the impact that customers have on a producing industry. When the buyer power is strong, the relationship to the producing industry is near to a market in which there are many suppliers and one buyer. [...]

[...] Generally speaking in French business culture, deadlines are open to negotiation but this is fast changing as French businesses incorporate more Anglo-Saxon business practices and stricter attitudes to time. Business organisations in France are highly organised and well structured. Rules and administrative practices tend to be favoured over flexibility, particularly in the public sector. French business behaviour emphasizes courtesy and a degree of formality. Mutual trust and respect is required to get things done. Trust is earned through proper behaviour. [...]