Cheers: Marketing Strategy Report for Business Expansion in India

This report provides a comprehensive marketing strategy analysis for Cheers, an Australian craft beer company, aiming to expand its business. The report begins with an executive summary and an introduction outlining the objectives of the expansion into either Brazil or India. A critical analysis follows, including PESTLE and SWOT analyses for both countries to assess risks, opportunities, and the overall suitability for Cheers' expansion. The PESTLE analysis evaluates political, economic, social, technological, legal, and environmental factors, while the SWOT analysis examines strengths, weaknesses, opportunities, and threats. Based on these analyses, India is identified as the more favorable destination. The report then discusses and justifies the proposed entry mode and suggests a detailed marketing strategy, including target market identification, product adaptation, pricing, and distribution strategies tailored for the Indian market. Finally, the report concludes by summarizing the key findings and recommendations, with a focus on human resource strategies for the chosen location.

Marketing strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
CRITICAL ANALYSIS..................................................................................................................3
(a) Analysis of risks and opportunities........................................................................................3
(b) Selection of the destination country......................................................................................7
(c) Discuss and justify the proposed entry mode........................................................................8
(d) Suggest and justify the marketing strategy that should be adopted by the company............8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

Executive summary:
This project report has covered an aspect of business expansion for Cheers, who are
looking for another location out of the Brazil or India to start their businesses. Also, it has
covered aspects over different HR strategies and its justification, while doing the business
expansion for the Cheers. Along with this, this assessment has talked about environment analysis
of two countries namely India and Brazil. Also, it has talked over the matter of SWOT analysis
to know the suitable opportunities, for most suitable location for Cheers products existence and
supportability. Finally, assessment has suggested the suitable marketing strategies along with
target market, product adaptation and price & distribution.

INTRODUCTION
Marketing strategies is the major part of detailed marketing theory to regulate or expand
the business operation into the another country. These strategies are required when business
operations are carry-forward to other location with the purpose of enhancing its market share and
profitability. In the current scenario, marketing strategies are used with purpose to suitable
business based results and outcomes (Karakadılar, 2014). This report will be carry on CHEERS,
which is the leading Australia based drinks and beverage company, which is specialized in
selling the craft beers to their customers. In the case mentioned, CHEERS are looking for
business expansion majorly in two locations which are Brazil and India. There is a requirement
of one suitable name for business expansion. Apart from this, report will be carried on analysis
of risk and opportunities for each country to identified suitable factors which would result in
selecting one location along with this discussion over proposed entry mode in the selected
location. Also, this report will make discussion for suggesting the suitable marketing strategy for
the chosen country. Lastly, this assessment report will also focus on human resource strategy for
the chosen location.
CRITICAL ANALYSIS
(a) Analysis of risks and opportunities
For business expansion, it is necessary to do complete analysis of connected risks along
with empowering opportunities for its operation. Risks, which are related to specific country's
culture & environment and opportunities, which needs to be identified. In this given case, where
CHEERS, which is the leading craft beer looking for expansion in one specific location out of
given two named as Brazil and India (Öztamur, 2017). In 2015, CHEERS has recorded slow
going of the business, because of covering excessive market of Australia. Hence, they are
looking for expansion into the another country to maintain the momentum of the growth. Here,
two major locations are considered, out of which one suitable country needs to be decided for
creating business. Selection of an appropriate country will be done on basis of complete analysis
of risk and opportunities. PESTLE will be apply here, which will cover all legal aspects,
government restriction, financial/currency risks etc. of that country. Along with this, this analysis
will also cover opportunities related market size, economic growth and trade agreement between

two countries, whether positive and negative. The clear-cut analysis for Brazil and India are as
follow:
PESTLE analysis:
Factor India Brazil
Political Political condition of this location is
suitable, but with regular fluctuation
over government existence (Wensley,
2016). It was noticed that every
government has their own regulations
which has no control. Because of
different ideology, people are less
empower to take decisions. Hence,
these ideologies would lead to
destruction of the business operation.
In Brazil, government existence is not
stable, because of frequent activities
against of government bodies such as
riots, strikes etc., many companies has
faced issues related to their survival.
For craft beer, government has put
various taxes such as import duty,
excise charges, which has effected
business either to import or export
beers to nearest location. Brazil has
huge currency fluctuation and
financial critical risk, because lack of
government improper budget and
decision making. Hence, this location
is not suitable for Cheers.
Economical In current government, economy is in
stable mode with growing opportunities
for further business (Zeithammer,
2014). But, currency is fluctuating
because international forces of market
such as conflict among Iran, Russia and
USA. For beer market, this location is
mostly suitable, this location is relevant
because of low labour cost and
affordable transportation.
Currency crisis of 2012 for Brazil has
effect their global image and created
burden of loan payment to world
bank. Still, they have small fluctuation
of currency in comparison to
Australian dollar, which would result
in increasing cost of labour along with
transportation. This location is
partially preferable, because of current
government is inviting new business
to their country.

Social In India, where beer is now preferable
by most of the age group. They using it
while doing parties, get-together with
friends, colleagues etc. The socio-
culture of India is of open nature along
with openness over the religious factor.
Also, social biasses is relatively low
and minimise (Schmidt, 2018). Income
level of people are adequate to afford
buying craft beer related products.
Brazil has social regulation because of
gender control law and continuous
conflict has led to social burden. For
beer market, this location is less
preferable. Also, income level of
people has not fixed on frequent basis.
This could be as a reason of low rate
of unemployment. CHEERS has less
opportunity here, because their
products are targeting high market
also.
Technological In India, technological regulations has
been arrived and at low cost to be paid.
Many business whether local or global
using it with right advantage of it. Also,
global companies are investing huge
into the technology sector, because it
has created huge employment along
with provided excessive market share.
For craft beer, this country is suitable,
because of its population out of which
60 percent belongs to youth category.
Brazil is still behind of technology
time. They are using old technology
for production purpose. Because of
this, labour intensive uses has been
raised. This would ultimately results
in increasing of labour cost and also
CHEERS needs to buy new
technology from another location,
which will enhance their cost of
expansion. Hence, this is not right
location.
Legal Legal regulations have partial control.
In India, where manual entry is limited
to some industry such as FMCG, firms
related to auto-mobile sector. India has
control over entry for food & beverage
industry including alcoholic products,
because of increasing impurity or any
conducting ineffective production.
Brazil has started looking at the
profile of company, before giving
approval to start business operations.
Because of less government support,
sometimes case happens company are
ordered to shut down their business on
immediate basis. Hence, this could be
heavy loss bearing for CHEERS.

These firms needs to go through certain
strict formalities to start their business
regulations. In India, some states have
restriction over the usage of alcohol.
Also, licensing of selling the alcohol is
not permissible for the seller. Cheers
would have limited business scope.
Brazil would not be suitable location
for this beer product. In Brazil, tax on
alcohol is high, because government
has limited income sources and people
spent huge on alcohol consumption or
use.
Environment
al
Climatic measures are suitable in India.
Government used to spent for facilities
for warehouse to protect raw materials.
Also, this has less impact over the
companies’ regulation and its beer
products. Hence, India will be suitable
for CHEERS business expansions
Brazil climatic support is high. Brazil
used to spend money for controlling
their climatic atmosphere. They have
improper seasonal condition, where
any damage would happened to firm
business regulation. Hence, this
location is partially not supportable.
As, nature of CHEERS business is completely alcoholic products, with minimum content
of alcohol. There are several opportunities connected to CHEERS business with location such as
Brazil and India (Brennan, 2015). This would be best analysed through SWOT analysis, which
will cover discussion with brief analysis over market size, economic growth and trade
agreements and others. The SWOT analysis is as follows:
Factors India Brazil
Strength The strength of India is its population,
out of which 60 percent are youth,
which is the major target market for
Cheers to expand their market share.
Also, low cost labour and less
transportation is also the one most
strength.
The major strength for Brazil is their
resources, which are helpful for
Cheers to produce their beers
products, which is why they have huge
chain of production of alcoholic
contents.
Weaknesses One of the weakness is its political
structure, which has lots of conflicts
The major weakness ODF Brazil is its
unstable government, which is

among political parties and because of
different ideology, this will be
weakness of this location.
responsible for decreasing scenario of
the business. Also, the conflicts and
riots is the major weakness of this
location.
Opportunities The major opportunity for Cheers is
rising trends of business into the Indian
location along with current government
assistance for free trade entry and exist
to gain the trust of the different
organisation. Through India, Cheers
have an opportunity for increasing the
market size, because of its rising
economic growth on the global level.
Huge availability of resources such as
equipment for production, trade
agreement with government of Brazil
as well as making entry of
international business more vital and
ease to enter new companies for
getting opportunities for future
business.
Threats The major threats for cheers regarding
India as its conflicts with other nations
such as China, Bangladesh which can
cause effects to culture of the country
along with new business opportunities.
For Brazil, the major threats is rising
conflicts against government
regulation has destroyed the interest of
different company to start their
business operation, in fear that they
would loss their market share, brand
image or even the profitability.
From the above analysis, India is the major opportunity for Cheers to expand their beer
business with agenda to enhance their market share (Armstrong, 2014). Free entry and exist of
Indian government for new investments and business enterprise would be a chance for Cheers to
acquire. As, the suitability for doing business is relatively higher in India, because of freedom to
trade and relationship with giants such as Russia, Japan etc.
(b) Selection of the destination country
CHEERS is looking for business expansion into other location, which must have all
factors for risk assessment and opportunity generation should be appropriate and suits desired
condition of business. After the complete analysis of risk assessment and opportunities

identification, selected country is India, because risk control measures are relatively high along
with good nature of political regulations. Also, they have common interest towards it. This host
country has strong currency support in comparison to Australian dollar. Because of low labour
cost and less transportation, India will be the preferred location to expand business of CHEERS
products. This location is also suitable, because of consumer behaviour is highly positive and
profitable. The growth expectancy and pre-decided market share of CHEERS beer is positive and
in the right direction. It was noticed that out of 100 percent population of India, 60 percent
belongs to youth category and they prefers beer mostly. Also, results shows that India population
is 70 times higher than Australia total population. As a result, this location is probably best
region for beer business.
(c) Discuss and justify the proposed entry mode
Entry mode is the stage, where any company enters to expand their business to other
countries either through acquisition, Joint venture, franchising or greenfield. Cheers can invest in
other alcoholic company to get its infrastructure support as well as convenience to reach to the
customer's. For Cheers, there are two useful entry mode such as Greenfield and Franchising, out
of which project manager needs to decide the one suitable approach through which Cheers can
enter into the India market with minimal cost and higher productivity as their agenda. Greenfield
is the method, where direct money investment is generated to build a new manufacturing,
marketing or administrative facility, a opposed to acquiring existing facilities (Baker, 2014). On
the other hand, Franchising is the mode, where an arrangement, where the firm allows another
firm the right to use their entire system, in exchange of common fees, royalty or any other type
of compensation. For Cheers, greenfield is the best mode through which they can enter into the
Indian market. For this, they needs to make fresh investment of $2000000 to building up the
infrastructure, doing marketing promotion, arrangement of resources etc. The major reason
behind taking greenfield is that other beer brands are setup with their extensive brand image and
franchising with them, would affect global image of Cheers. As, Greenfield is the investment
based entry, where money will be given to Indian authorities to get commencement of business
certificate. In response to this, Greenfield will help cheers to create their separate image and
identify in this market. Goals and objectives of the Cheers to expand their craft beer products in
other location to get customer base and market size. Greenfield is a suitable strategy, as it will
help Cheers to generate its own business identity to accelerate their products. In India, resource

requirement is huge and even low cost such as labour, transportation etc. Hence, they can afford
such investments. In addition to this, Risk is quite high, because, in some states of India, Alcohol
is completely banned and there are strict punishment or legal action, if found with alcoholic with
content more than 25 percent.
Also, greenfield mode will help Cheers to attract maximum investors to expand the
business resources, infrastructure, customer in an initial stage. This is why because, company
who takes initiatives to invest own money and efforts, that generally attracts investor on the
larger and profitable basis. This mode will help cheers to export their product to other country
and help import raw materials from Australia. India has low import fees, because of their fair and
long live relations with Australia. Also, India have wide range of resources available which will
help to cheers to counter their cost raised. The major negative response of franchising is that,
new company needs to undergo with certain rules & regulations while entering into the any host
country. Also, this reason would slow down the functioning of Cheers even after commencement
of their business. This is an independent mode through which Cheers would get business
outcomes from their craft beer products.
(d) Suggest and justify the marketing strategy that should be adopted by the company
It is necessary for Cheers to apply suitable marketing strategy to promote & accelerate
their products to the Indian market. For craft beer, they should target millennials, who are now-a-
days attracted to beer products at the larger extent, irrespective money to be paid. In India,
people uses beer, when they are engaged in parties or they are in get together with their friends.
For Cheers bear product, diversity marketing is best suitable strategy, because this will help them
to connect every individual to sell their craft beer products. Targeting the millennials through
diversity marketing will be suitable for marketing acceleration for the Cheers. Diversity
marketing has taken on the basis of nature of their product which is Alcohol and such it is to be
control with some regulation and control measures.
Target market: Cheers marketing team should target millennials, who are loyal of having beer
products. Also, they must target both low and high price ended buyers. They should segment
their potential customer's on the basis of behaviour, lifestyle, demographic etc. They must
position their customer's through usage of social media such as Facebook, twitter etc. Also, they
must position them through endorsements, celebrities interaction etc. Complete understanding
of the income level along with affordability will be beneficial for cheers to raise their business

productivity along with raising the market share. Before, deciding the target market, it is
necessary for Cheers to do brief analysis of their customer's profile. It was noticed that
millennials is the major customer base for beer product, because they are one highest consumer
of it. Lifestyle is also common factors, where alcoholic drinks have become style statement and
connected to person ego. The buying behaviour is also the common factor, which basically test
buying pattern of the consumer whether daily basis, weekly or monthly basis.
Cheers has decided to go with product adaptation, which is majorly focused on modifying
the existing products to bring new changes such as tasty flavour, liquid potential, control over
fat/calories etc. This decision has been taken to protect funds to be utilise in the early stage. In
future, Cheer will comes up with new taste and separate product for India as their location.
Pricing and distribution: Cheers management has decided to use extensive pricing to set
preferable pricing to their products. In an initial stage, Cheers will charge premium pricing for
their products and then later, they will cut down the price of their craft beer. For distribution,
Cheers will supply craft beer to nearest bars, clubs, restaurant, where they are higher customer
movement and engagement.
(e) Suggest and justify the human resource strategy that should be adopted by the company
For every organisation which is dealing in international business, they are required to
build effective workforce either through recruitment process. For Cheers, effective workforce
can be built through creating recruitment & selection process. That process can be built by
overlooking at the existing process to make relevant changes and amendment. Recruitment
process needs to be enables with an agenda to creating team group with skilled manpower and
person into it. In this condition, where Cheers is looking for business expansion into India, they
first need to understand human behaviour. For collective workforce, Cheers should enrich their
hiring process to enables effective staffing of an employee to generate bigger market share for
Cheers. Performance management is an effective human resource to build effective workforce by
evaluating their performance and also paying in accordance to performance to build confidence
level. Cheers should give training & development after hiring of an employee to know their
skills/knowledge for performance acceptance. As, Cheer is in new business stage in India, as
they need most cultivate and highly adaptive workforce to grow business at the higher rate into
their initial and early stages. Overarching will be suitable HR strategy for Cheers which will

enables their employee's to manage their business operation and function effectively. This
strategy basically focuses on continuous learning & development to enhance the skills, exposure
of their employee, irrespective of culture, caste or religion.