Change in strategy takes brewery from loss to growth
Beer Co.* is a medium-sized German brewer of mid-range and craft beer in both traditional and novel styles operate in several markets outside of its home country.
Despite enjoying early success in Taiwan, when Beer Co. expanded into Southern China, revenues were quickly diminished in addition to rapidly losing market share in Taiwan.
Mersol & Luo was approached to identify the source of problems in each of these markets and consulting on a plan to regain profitability.
Client Problem and MERSOL & LUO’S SOLUTION
Mersol & Luo’s Solution
Beer Co. applied strategies that had worked in their native country without modifying them to fit the demands of their new target customers.
Their approaches in Taiwan and China were not differentiated, nor were efforts for local markets such as Shanghai and Changsha, leading to marketing being ineffective and impersonal to the target consumers.
Mersol & Luo has a proven strategy development process that has helped many beer and liquor companies feel confident with their decision to import to China while having the information required to be successful.
This research and strategic planning provided Beer Co with a clear understanding of where to sell, who to target and who to work with to best reach these customers.
Without the understanding of local market characteristics and how consumers differ in eachthe broad and unfocused brand position used by Beer Co failed to effectively communicate and attract target customers within each market.
Our team identified the best local markets in Taiwan and China for initial business development by analyzing key metrics, including affordability, growth outlook and other local factors that we matched with the ideal target customer profile and the type of sales partner able to support the client’s growth effort.
By focusing on these markets, we were able to redefine the ideal target customers and take into consideration their demographics and purchasing habits. With these key elements we developed a cohesive brand positioning
China has countless importers and distributors yet only a small percentage are suitable for a given brand.
Beer Co. made the common mistake of working with the wrong sales partners they had found through online searches and meetings at trade fairs, paired with improper proper planning and research led to unfavorable.
Once the best local markets and customers were identified for Beer Co. it was obvious to us what kinds of importers and distributors would be the best match in each national and local market.
This list of prospective importers and distributors was drawn largely from our existing networks. With our re-aligned strategy Beer Co was able to negotiate agreements with sales partners with our assistance in key local markets.
Our strategy experts guided them through execution, monitoring results and advising on changes as needed.
We helped Beer Co.* to:
Assess sustainability of the products in each local market
Understand their target consumers and market
Identify the most viable markets, both nationally and locally
Redefine the ideal target customer
Re-assess importers to ensure the above considerations would be achievable
Profitability within the first year
Distribution and customer targeting
Increased market share
*Names and information have been anonymized to protect the confidentiality of our clients.
About Mersol & Luo
Mersol & Luo’s expertise on the Chinese economy assist global companies in ensuring their expansion to China is appropriately prepared to maximize profits and have a strong market impact. By having local understanding, relationships and real-time trade experts Mersol & Luo guides you through the process.
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