Steam Whistle Pilser Executive Summary

Executive Summary

The purpose of this proposal is to feature Steam Whistle Pilsner and discuss its potential to enter a new market in China. The product is described in detail along with its production and regulations in the domestic market. Furthermore, the proposal analyzes why China is the optimal market to enter. It highlights the key demographic as well as the competitive advantage of the product to this target audience. Lastly, It outlines the logistics of exporting as well as risks and mitigation of the risk of entering this new market.

Business Overview

Steam Whistle is owned by Steam Whistle Brewing, located in Toronto, Ontario, Canada. It is also a relatively young brand of beer as the company was founded in the late 1990s and the

The highest number of sales occurs during the summer months because the hot weather drives consumer to want to purchase more beers (IBISWorld, 2014). Having more publicity events and activities that incentivizes their audience during the slower seasons could help Steam Whistle to have more consistent sales throughout the different seasons of the year.

Consumer preference of the taste may not be as favourable as expected. Steam Whistle is attempting to break into a new market with a very different culture. It is hard to tell if the people are willing to change their taste from something they are used to. To mitigate this, Steam Whistle is rolling out their product in a few select cities to test the waters before expanding to all regions of China.

There are several legal obstacles since this is an industry with a high degree of regulation. As there is an increase of breweries in the emerging markets, there is also an increase in the regulations. In particular to China, there is a Beer State Standard for requirements about the product quality, density, taste and packaging (IBISWorld, 2014). Moreover, the market is affected by government rules that concern the legal drinking age and availability of sale of alcohol products. In recent years, government agencies have increased public awareness on the risks of overconsumption of alcohol and the consequences of excessive consumption such as drunk driving (IBISWorld, 2014). The best

Therefore, the success of the product is also dependant on the marketing budget spent by the manufacturer (IBISWorld, 2014). Evidently, there will be more product awareness in the market if more advertising and other marketing activities are done. Steam Whistle should recognize that a marketing budget will be a significant expense and crucial to entering the Chinese market successfully. Steam Whistle may need to adjust their current logo to make an impression in this new market. Entering a new market would give Steam Whistle another opportunity to place itself in a position of its choice given it is properly branded. In the Chinese market, Steam Whistle will heavily advertise the fact that it is a foreign product to increase its attractiveness to consumers (IBISWorld, 2014). This would also create the perception that it is a high quality product because it is