The paper “ France’ s Market Analysis – Financial Consideration, Cultural Competition, Demographics, Legal, Economic, and Market Trends” is a thoughtful example of a case study on marketing. Foreign country market entrance is a difficult and challenging task because of the risks faced by a new company as well as obstacles that are encountered. The obstacles include political, financial and even legal requirements that should be met before successful market penetrations. A foreign company has a number of options in terms of modes that it can implement to make a successful market penetration.
The major market entry strategies include joint venture, licensing, exporting and direct venture among others. A foreign company has to perform a thorough trade-off in order to choose the strategy that best suits the company with regard to its current business conditions. This paper presents a country and market analysis framework that seeks to propose France as a suitable country for the venture as a result of a number of issues that are identified in the report. Market mix options, as well as market segmentation, market target, and market position, are identified in order to strengthen the rationale for the country’ s choice.
Different market entry options are also analyzed in order to give an informed recommendation regarding the best option for the company to take. This also considers the company’ s financial position as an imperative factor for the choice made. Country and market analysis Country Chosen and relevant market The country was chosen as the potential market place for Sydney Breweries Limited (hypothetical name) in France. The rationale for this market choice is because of its potentiality in terms of future growth in terms of market growth.
An analysis of its trends and consumer behavior will form the fundamental basis of market entry strategy and the appropriate market mix to be applied in order to ensure successful market penetration and sustainability. Facts about France Explanation Financial consideration < 0.5 % alc. vol. per hl 0.5% - 2.8% alc. vol. Per hl / % alc. > 2.8% alc. vol. Per hl / % alc. Tax on soft drinks VAT 20.6 % 20.6 % Other taxes on alcoholic drinks. Excise duties. Watch Duty Rate. Standard clearance procedure for alcoholic drinks. Demographic Trends. As one of the focus that helps anticipate market growth. The population growth in France is moderate and therefore the market growth will proportionally grow. Legal Trend Underage drinking is prohibited. Compensation to a complainant due to effects that may arise from alcoholic contents. Cultural A modernized country with less attachment to ancient beliefs and also vague religious beliefs. Competition France is ranked 5th in the European Union in terms of beer making.
It produces about 15 million hectolitres per year. Economic Over 64.4 Million people GDP of 19, 339.52 per head Food and drink import 20 Billion Market trends In 2008, alcohol consumption dropped by 8.2 % as a result of the ban on smoking in areas considered public. Fear of changing consumption habits, only 18 million hectoliters of alcohol were consumed in 2008. Fifth largest In European union in terms of beer making. Technological Internet and gaining popularity of online transactions. Legal considerationFrance prohibits underage drinking of alcohol, it also provides for the beer companies to compensate people affected by alcoholic drinks that they offer.
One of the major legal restrictions that have seen a decline in alcohol consumption is the restrictive legislation called Loi Evin. Competition considerationOne of the major challenges in France market is competitive with other beers.
There are other beers made in the country including Meteor Beer, Desperados Beer, Kronenbourg Beer, and Fischer Beer. Consumers in the country are becoming more sensitive in terms of their choices, amber and Abbaye and others like high and quality beers. This has seen its rise in sales by 5-6 %. Other classic beers such as lagers lost about 18 % (Parsons 191). Cultural considerations The cultural trend in terms of beer consumption has undergone some notable changes for the past 5 to 6 years. This was especially after the enactment of regulations meant to check beer consumption in the country (de Mooij 270).
Consumers are also increasingly becoming more sensitive in terms of selection of beers and especially specialized beers like Abbaye and amber. Financial considerationClearance of imported beers in the country is usually by means of Standard clearance procedure, other forms of taxations experienced by importers of beer to the country includes Excise duties and Watch Duty Rate.