Identify at least five products or brands you are familiar with that could use the same three-step

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Identify at least five products or brands you are familiar with that could use the same three-step approach perfected by Heineken for entering foreign markets. Develop a clear rationale to support each example.

Heineken is the second-largest brewer in the world, with sales of €21.9 billion. Sixty-four percent of these sales occur outside Europe, the regional home of the Amsterdam-headquartered firm. When Heineken enters a new market, it follows a basic set of steps designed to maximize its potential profits in that market:
It often begins to export its beer into that market as a way to boost brand familiarity and image.
If sales look promising, it then licenses its brands to a local brewer.
Doing this allows Heineken to build its sales further while simultaneously becoming more familiar with local distribution networks.
If this relationship also yields promising results, Heineken then either buys partial ownership of the local brewer or forms a new joint venture with that brewer.
The result is a two-tier arrangement with the more expensive Heineken label at the top end of the market and the lower-priced local brands at the bottom, all sharing a common brewery, sales force, and distribution network.

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International Business

ISBN: 272390

9th Edition

Authors: Ricky W. Griffin, Michael W. Pustay

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