Market structure Absolut vodka Nepal
Executive summary
Absolut a company opens their business from Sweden in the year of 1879 and later they planned to spread their business globally and now the status hit almost 126 countries across the globe. Presently they focus to hit the market of few developing countries as well so they have chosen Nepal as their next market to go with a fast strategy with proper plan for that the SWOT and Marketing Mix is needed as per the nation mentioned and the product. Everything is mentioned in the bottom part with briefs discussion about the total subjects. Not only that even the company background also mentioned with their orthodox strategies and in the last the recommendations also mentioned what is majorly required for growing their business in the market of Nepal.
Background to the company/product
In 1879, Absolute was founded by Lars Olsson smith. It is produced in Sweden at Ahus. Before absolute vodka was launched, the market was controlled Stockholm’s liquor. After the foundation of absolute vodka, Smith challenged Stockholm’s liquor and its marketing monopoly (Okada, 2017). Absolute vodka was sold at comparatively lower price out of the city border. Absolute vodka was sold at a lower price than the monopoly product. Smith had a good strategy for promoting his product. He offered free boat riding to distillery and rent brannvin. This changed the fortune of smith and he established himself in the business chain. After the monopolization of the country alcohol by the Swedish government, at that time the vodka was sold nationally in different name. It was named as absolute rent brannvin at that time. In 1979, absolute vodka was introduced with a higher price to the global market (Bukhari, 2016). After it was marketed globally, the sell of vodka increased and it was sold 90 million litres annually in 2008. The vodka is made of wheat rather of winter wheat. Annually, 80,000 metric tons of wheat are used to produce absolute vodka. There is a ratio of using the wheat and grain in absolute vodka. In every one litre of vodka, there is a use of 1 kilogram of grain that means one bottle of absolute vodka contains one kilogram of grain.
Situation analysis
Political analysis: According to the law of Nepal, there are several ethics that the business organization should follow. There is a total ban of advertisements for any type of alcohol products. No promotions even the sponsorships also cannot be done by the alcohol brand.
Economic analysis: Though there are various economic challenges, externally and internally, still Nepal has managed to maintain the macroeconomic stability through the monetary and the fiscal policies. This is resulting in the slow structural transformation (Wang & Spence, 2015). the fiscal performance is stable and the budget deficit is low though they are facing some challenges related to the increasing subsides, recurrent expenditure etc. The revenue mobilization is relatively strong though there is a challenging field in political environment.
Socio-cultural analysis: Beside agriculture, Nepal is fully dependent on the tourism. There are more tourism developments and destinations than the industrial business. Therefore hotel chains, restaurants, tourist markets are seen more than industries. This means there are more business on guides, hotel business, foods, and other related works.
Technological analysis: However, when discussed about the technology of Nepal, then it can be said that Nepal is a late starter or late comer in modern technology and the science (Haffner, 2015). It developed its technological prospects in limited fields such as civil engineering, architecture, agriculture, medicine, textile, water management, paper manufacturer, food technology, and dyeing.
Environmental and legal: Air and water are the most significant problems that can be seen in Nepal. The reforestation of Nepal done is minimal. Nepal mainly suffer the effects of deforestation, erosion, agricultural encroachment etc. now, talking about the legal causes, there are patent rights, some application for acquiring right over the patent, some circumstances in which the patents cannot be registered, some terms are there that will give an impact on the business establishment (Kuan, 2018). The absolute vodka has to focus on these legal rights in order to establish the business in Nepal.
Now, if the micro environmental factors are explained in details then it includes the competitors, suppliers, distributers, customers, publics, and the company. The competitors are the other business partners or houses who are competing with absolute alcohol in the same field. Then suppliers are those who are supplying the wheat and the grains and other ingredients that are mainly the raw materials that are needed to manufacture alcohol (Vannini & Williams, 2016). The distributers are those who are distributing the bottles of the absolute alcohol in the shops in the market places. Now, coming to the customers, who are buying the alcohol from the shops, consuming it and buying it. Publics are the mass who belong to the locality and the company is the manufacturer house who is the resource of the absolute alcohol.
SWOT analysis
Now, discussing about the strength, the absolute alcohol has a good review in the whole market and has a good competition field where absolute alcohol is giving a tight competition to its competitors. If talking about the weakness, though the external power of the company is strong enough to compete with the other organizations in the same field, but comparing to the internal power, absolute alcohol is relatively week in respect of the other companies. This can be a weak point of the company and can create a huge problem in future market. Opportunities of the absolute alcohol are well established as they have a good survey on political, economic, socio cultural, technological, environmental and legal fields. It is very mandatory to have a good knowledge about the market of the area where the company is trying to make a field and trying to capture it (De, 2018). Some micro environmental factors like suppliers, distributors should have a good business relation with the company. They should represent them in such a way with the price and quality that the consumer can be satisfied with its product. Lastly, coming to the threats, as it is known, all the positive impacts have a negative side. The vodka company has rivals in the same fields. They can also raise some problems in the future market of the absolute vodka.
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MARKETING COMMUNICATION PROJECT
The current study mainly focuses on the marketing communication of Glen’s Brand in United Kingdom. It has been figured out that brand awareness and products of the brand is supposed to be very poor due to many reason.
