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1、Section1:Q1:1a.Alba has chosen to focus exclusively on the premium spirits market rather than providing less superior brands.Alba focus on three benefits of premium spirits firstly is easier to build brand identity.Secondly gain more profits.Thirdly is helpful to achieve goals.Only focus on premium
2、people have the potential to create a brand identity and awareness.Albas products are premium products.Alba allows buyers to have cognitive differentiated products as a symbol to reflect their social class and social status,which helps product positioning.Get more profit.Albas products are high prof
3、it margins for luxury goods.The price they sell is certainly much higher than its cost.This proves that Albas earnings are huge.Alba focused on the excellence of the brand spirit is the effectiveness and implementation of the objectives.It makes staff training more concentrated,so that the goal can
4、be realized more clearly.Employees are only concerned about their contribution,give full play to their skills and enthusiasm for the work.Alba focus on two disadvantages of premium spirits are suffer high risks and dismiss some opportunities.Alba to premium products with high risk to enter the marke
5、t.Alba only a commodity rather than a different kind of goods against the spread of risk.If a policy aimed at a premium,Alba will take all the negative effects,it will not get any profit.In this case,in Russia and Turkey,there are restrictions on the advertising of high-end liquor.This policy will r
6、educe Albas personal brand awareness as well as the decline in Albas profits.Another is Alba very professional premium spirits may lose the opportunity.Some customers are more willing to buy ordinary spirits,premium spirit is a small number of peoples choice.Alba was so focused and did not consider
7、the people of all walks of life.Alba may sacrifice some opportunities in this respect.1b.Analyze potential conflicts that Alba may encounter when co-ordinating growth with its corporate social responsibility commitments.The first point is the conflict of the sense of social responsibility and busine
8、ss.Marketing and promotion way by social responsibility constraints.Not to underage propaganda,sponsor,without authorization are her sense of social responsibility commitment.In the case the company operates an operates an approved incentive and saving scheme that encouragesemployees to participate
9、in share ownership.The scheme permits employees to retain their shareholding after retirement.The second point is that the market economy system is not perfect.Consumers and enterprises need to deepen understanding.At the same time,the enterprise is still in the low end of the international manufact
10、uring industry chain,lack of innovation ability,low profit margins.Alba believes that its brand growth cannot be centred on advertising and billboards,but believes in promoting its brands through providing training and support to bars who can impact knowledge on the history and culture of its produc
11、ts.The third point is the conflict between the thinking mode of enterprise culture and the way of communication.Of different ethnic groups living in the special natural and geographical environment,forming a respective historical background and cultural environment,also formed their own mode of thin
12、king,and in turn continue to influence,to form a specific cultural connotation and elements.The language of the world is different,even the same language,different translation methods will have a very big difference,the difference between the language of international marketing enterprises to overco
13、me the primary obstacle.Alba has its headquarters in Edinburgh and employs 1,000 workers in Scotland;however due to its international operations,over 55%of its employees are based overseas.Q2:2a.Assess the strengths and weaknesses of Albas export strategy.Indirect export enterprises can obtain the f
14、ollowing benefits:First,the use of foreign exporters or agents of foreign channels and export experience,quickly open the international market;Second,do not have to add export agencies and personnel,to save the cost of direct channels;Third,reduce the financial burden and reduce the risk.For busines
15、ses,indirect exports also have disadvantages:First,the flow of products and price control is low,and even can not be controlled;Second,it is difficult to quickly grasp the international market information,which is not conducive to improving the adaptability and competitiveness of the international m
16、arket;Third,can not get the direct experience of transnational marketing;fourth,it is difficult to establish their own reputation in the international market.In the case Albas core business is in its export markets and therefore financial results are greatly impacted by prevailing currency rates.Alb
17、a manages exchange rate risk through hedging.(Hedging involves the reduction of risk that rises from future movements in an exchange rate.Management generally hedges for adverse movements only,for example higher costs and reduced income).2b.Alba utilizes severalroute to market strategies to distribu
18、te its products,including direct routes and joint ventures.Analyse the potential benefits and drawbacks of such strategies.Alba enters the market using direct export and joint venture strategy distribution products.The advantage of direct export to the enterprise is that it can grasp the trend of fo
19、reign market more quickly,so as to improve the products and improve the adaptability and competitiveness of the products to the international market.The disadvantage of the direct export to the enterprise is that it increases the burden of capital turnover and increases the risk.In the case,in the U
20、SA,the largest premium spirits market in the world,Alba now controls its sales and marketing directly.It has also broadened its coverage within the United Sates,opening regional offices in Chicago,Orange Country and Miami.South East Asia offers excellent prospects for growth as a result of increasin
21、g middle class consumers and fast growing economies.Advantages of joint venture to learn and adapt to the local objective environment,better understanding of the host countrys economic,political,social,cultural and other conditions,help investors to make the right decisions.Joint venture disadvantag
22、e due to differences between the two sides of the business objectives and ideas.In terms of market intentions and sales intentions may differ in the length of the interests of different investors may be difficult to unify.In the case,South East Asias major countries are attracting a record level of
23、foreign investment and are expected to overtake China in the next few years.One reason for this is that,as the emerging middle-class consumers travel more and become more knowledgeable about different cultures.Section2:Q1:1a.With the aid of a suitable diagram,evaluate how a banon alcohol advertising
24、 in Russia and Turkey could adversely impact on the global performance of a company like Alba.There are many elements can effect demand,such as price,customers behavior,income,government policies,advertising and so on.In Russia and Turkey,some of the restrictions on premium spirits ads lead to a dem
25、and curve to turn left,which means that the spiritual demand for excellence will be reduced.Lack of awareness of the packaging brand with the effect of advertising.If this happens,in the short term,the supply will exceed the demand,the left shift curve so that from Y to Z the balance point,the price
26、 will fall,Z as a new equilibrium point,with less price and quantity.Total income is equal to the price times the quantity.Compared with Y,the new total revenue will be reduced,because its price and quantity are less than before.In this case,the limitation on advertising both in Turkey and Russia le
27、ad to the downward on demand also the total revenue presents a similar trend international market.1b.Consumersreal incomes will have an import on the demand for Alba s products.Using the concept of income elasticity of demand,Evaluate the potential impacts that this may have on Alba.Income elasticit
28、y of demand means proportionate change in the demand for a good in response to a change in income.It is reflected in how people change their consumption habits with changes in their income levels.In a growing economy(where income levels are rising)goods whose demand is highly income-dependent will s
29、ell more than the goods whose demand is not income-dependent.Ey=%Q/%A Y(Q:Qua ntity;Y:In come).There are two main kinds of situations:the demand of the negative elasticity of income and poor quality of goods;demand is elastic and normal commodity related;in come will lead to in creased dema nd.lf th
30、e dema nd for a commodity elasticity of in come is less tha n 1,it is ordi nary good.If the elasticity of dema nd is greater tha n 1,it is luxury good.In this case,Alba ben efit from and other premium brands to promote cooperati on and jointly promote the luxury brand to adapt to consumer diversific
31、ation.As women con ti nue to grow in material wealth,dema nd will rise sharply.On the con trary,if the customers in come is reduced,the dema nd forecast will be greatly decreased.Those normal goods without brand awareness,customers are likely to continue to choose Alba products.In additi on,whe n in
32、 come rises,dema nd will rise.However,if the market is saturated,eve n if reve nue is rising,dema nd is limited,because other projects will cha nge in the market.1cf the government is successful in introducing a minimum retail sales price for alcohol in the UK in order to reduce consumption,what imp
33、act would this policy likely have on the supply of alcoholic drin ks?Minimum limit,also known as protective price.Is the minimum price limit specified by a government for a certain import,that is,when the price of the imported goods is lower tha n the specified minimum price,the gover nment shall im
34、pose import duties or import.This is a non tariff protection measures.It will make the market a long time in an un bala need state of supply and dema nd,thus in creas ing the pressure on the governments financial subsidies.When the British government to implement the policy,the British government in
35、itiative to control pricing,customers may reduce their purchases or eve n completely withdraw from the market.This policy of higher than dema nd will also reduce the sales of alcohol Alba,the decli ne in sales volume affect the supply,the supply will be reduced.As to the price elasticity in numerica
36、l form.This product is an advaneed product,it is a flexible.At the same time,Albas products are addictive.Therefore,Alba through differe nt ways to reduce the dema nd for flexibility.Alba will in crease profits through the in crease in its price.Q2:2a.Alba only operates in the premium spirits market
37、.Evaluate ways in which this may affect its marketing.Alba mainly concentrated in the premium spirit helps to establish a clear and correct brand image to identify more attention and publicity.Only premium products to narrow the scope of the customer base,its sales volume will be reduced.If Alba to
38、expand the business,will limit the steps.Premium products must have a clear marketing.For Alba to produce premium spirits,the headquarters should consider some of the necessarypromotional strategies for luxury goods.In the process of the American market promotion is usually in the busy place of sale
39、,store high-end decoration,professional sales staff.Another marketing mix of the project,product,price,promotion and coordination between the site should also be considered through Alba.Alba operational planning a certain customer base,a clear market segmentation will affect the way the promotion.Th
40、eir products are for those of the middle class.As long as the middle class customers are more willing to travel the Chinese people are more willing to accept a different culture to enjoy premium whiskey.Of course,some successful businessmen and entrepreneurs are also very willing to buy.Alba specifi
41、c customer base will affect market promotion.2b.Alba has a code of practice for the responsible marketing and promotion of its brands.Analyse ways in which this may influence its marketing activities.Alba marketing mix one day will certainly change.There may be a conflict between Alba and its partne
42、rs.For example,a number of countries on the drinking age requirements,but Albas emphasis on their clients age should be in accordance with the provisions of corporate social responsibility.Taking into account partners to achieve more revenue,they may expand drinking age and overthrow the Alba rule.A
43、lbas spirit is harmful to human body,which leads to the conflict between Albas promotion goal and practice.But in order to increase sales to gain more benefits,Alba made a lot of promotion to allow more consumers to buy.According to the Alba brand marketing and promotion,in a number of published sci
44、entific and medical research must pay attention to abuse or inappropriate drinking can lead to health problems and social problems.This result in the propaganda purposes and acts of propaganda have conflict.A restricted consumer group affected his sales.Such as Alba follow its norms will affect the
45、business development.Such as alcohol and health,pay attention to the people do not abuse and inappropriate drinking;sponsorship,does not allow legal purchase age in sponsorship,licensing,Alba commitment without licenses its brand in the purchase of childrens books,games,toys,sports equipment,toys et
46、c.These will enhance the awareness of brand awareness,Alba next trend is to get more potential opportunities and attract more partners to cooperate.Q3.3a Suggest and justify potential ways that may help Alba to achieve its values outlined in Appendix 1.One of the potential ways,that is,technical asp
47、ects of the update and improvement,to help achieve the value of Alba Technological innovation has an important impact on values,in the case,the company of a two hundred million pounds of distillation equipment invested,which is a technology update,the update to maintain a stable development of innov
48、ative products,which is its investment in technology to reach the effect.In addition,the company in terms of technology has achieved some innovative,Alba has the worlds fastest of bottled production line and a second can be installed 10 bottles of wine,and then paste the tag to complete the packagin
49、g,the efficiency is very high,these are the performance of technological innovation,innovation is to achieve the effect,because of the specific practices help Alba to achieve its value in the field of innovation.Allow employees to participate,to help achieve the value of Alba Actively promote the st
50、affs participation,help to realize the value view,in the case,Alba developed an employee share participation mechanism,let the staff participation,through equity participation to the integration between the goal of their interests and enterprises together,the unity of the two can to maximize the ent