Global business management- Semester

GBM 301- Feasibility of international trade

Assignment – Case Study Analysis 2 –

Canadian Whisky: Capitalizing on World Recognition

Submitted by – Deeksha Mehta (21065712)

Submitted to- Prof: Nidal kotob

February 16,2023
A. Comox Valley Distillers identified two significant flaws when they examined the results of

their organizational readiness research. First, there was a lack of knowledge of effective, selling

strategies for other countries, followed by an absence of a strong global marketing strategy. It is

suggested that Comox Valley Distiller look into and make arrangements with third-party vendors

like customs brokers. These contracts will enable CVD to plan for adjustments in response to

such gaps, the factors that attempt to stop the company from adequately widening to another

province, or the initial problem attempting to address the need for a reliable import/export

partner that helps facilitate a peaceful flow into the new market. Rick should really organize

training to enhance his employee’s proficiency in communicating with people from different

countries. The whole CV staff must possess the knowledge and skills necessary for a

successful commercial relationship with the potential country. Rick just might consider

appointing a spokesman to speak on behalf of the business. Knowing this subject well will

ensure that the organization has a positive first impression of the business.

The second need that Comox Valley Distiller should meet is the requirement to create a strong

international marketing strategy and demonstrate that it can be accomplished efficiently. The

company seemed to have the choice of utilizing either a personal or a worldwide marketing

strategy. Exhibitions, inbound and outbound advertising, price reductions, and advertising are

just a few of CV's many efficient marketing strategies. Rick is in charge of making sure CV's

personnel are informed about the state of the market and any recent events. This is a good

technique for them to advertise their product.

B. Risk factors in the target market:

Indian market- Whisky is the most popular imported alcoholic beverage in the Indian market.

Since whisky is the most popular imported alcoholic beverage in India, there is a danger of
competitiveness. Several large corporations, including Diageo, AB InBev, Pernod Ricard, and

Carlsberg, currently sell whisky in India. Whisky has become the most widely consumed foreign

beverage in India. Additionally, due to the lack of a trade agreement between Canada and India,

liquor exports from Canada are subject to duties and tariffs totaling over 150 percent.

Furthermore, all advertising for the sale of alcoholic beverages is outlawed, with only a few

signs subject to severe regulations.

Japanese market- There are many risk issues in Japan, including weak consumer confidence,

competitive rates, and a decline in consumers. As Japanese consumers are becoming more

affluent and choosier about where they invest their money, people have already been shifting to

less expensive products to stretch their budgets. There are a number of risks associated with

the expansion of whisky in the Japanese market due to lower consumption and price pressure.

South Korean market- Due to a change in South Korea’s drinking habits, which favors higher-

quality products, consumption in a few major categories is on the rise, including

expensive whiskies, there is a possibility that the economy will have an impact on the whisky

availability in the Korean market. A 2018 analysis of many whisky producers found that single

malt whisky sales rose generally. Additionally, malt whisky now only accounts for less than 4%

of the South Korean market.

C. For a successful study company would evaluate the data below for the growth of the product

in the market:

 Competition: The team should examine the competitive situation in each target market,

including the advantages and disadvantages of the main rivals and any unmet needs.
  The requirement in the market: The company should evaluate the prospective need for

its goods in each target market, considering any trends or modifications in consumer

behavior that might have an impact on sales.

 Facilities and supply chain: The team should investigate the transport and

infrastructure alternatives available in each market segment, as well as the price and

dependability of shipping and any other logistical issues that can affect their capacity to

efficiently reach clients.

 Culture preferences: To ensure they are well enough to negotiate any cultural barriers,

the team must recognize cultural variations between their home market and each target

area, including native business practices and customer preference.

 Regulatory environment: The team should investigate the import/export policies,

tariffs, and local labor laws that are relevant to their business in each target market.

 Regional sources: The group should investigate the existence of nearby suppliers,

dealers, and associates along with the price and standard of these re-sources in

comparison to the domestic economy.

 Finances: The group should make a detailed economic statement for every target area,

considering the cost structure, potential sales, and any other financial factors that might

affect their choice to grow in each market.

D. using mobile phones as a method of survey is an effective way to collect information, but it

has some limitations also such as:

 Target audience using mobile phones: If the target population is tech-savvy and at

ease using cell devices to engage in questionnaires, mobile phone surveys may be a

useful way of primary research. Other approaches might be more effective, though, if the

target demographic is not as tech-savvy.

  Research goals: If the goal is to gather quantitative data from a large sample size, then

mobile phone surveys might be a good fit. Nevertheless, other techniques like focus

groups or in-person interviews may be more suitable if the objectives of the research call

for more detail or effectiveness.

 Availability of resources: Mobile phone surveys can be a cost-effective and efficient

method of primary research if the resources are available to design, implement, and

analyze the results of the survey. However, if resources are limited, other methods may

be more practical.

 Response rate: Mobile phone surveys may have a lower response rate compared to

other methods, as some people may not be comfortable participating in surveys or

perhaps not have access to a phone. This can affect the validity and precision of the

information that was gathered.

E. The information at hand indicates that Rick should concentrate on growing his business in

South Korea. As this developed nation transitions into an era of economic progress, the use of

high-end alcoholic beverages is growing. This area has the potential to be a market for high-end

liquor due to its considerable wealth and extremely high alcohol consumption rates. Their

drinking and wealthy people make an increase in alcohol consumption inevitable. As a result of

the 2015 Canada-Korea Free Trade Agreement, Canadian companies can sell products with

lower import taxes. There are 48.5 thousand people living in South Korea, the fourth-largest

country in Asia, among whom 38.6 million are people of drinking age. South Korea is seeing

sustained increases in employment, a decline in inflation, and stable rising prices However, it is

also going through a general economic recession, as evidenced by declining retail, industrial,

and mine sales, according to South Korea's Economic Information Learning Center.
The market for alcohol is growing everywhere due to South Koreans' status for having the

highest per capita alcohol consumption in the world. The South Korean pub culture is evolving

in favor of higher-quality products, which is enhancing sales in a few different classifications,

such as luxury whiskies. The latest poll of different liquor producers revealed that scotch whisky

sales rose significantly. Additionally, whisky still commands less than 4% of the South Korean

market.
 References:

GBM 301 (Case study) Canadian Whisky: Capitalizing on World Recognition

https://trioscollege.brightspace.com/d2l/le/content/43113/viewContent/1974699/View

Prasana (March 12, 2022)

https://www.aplustopper.com/advantages-and-disadvantages-of-primary-data/

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5438460/

Margaret James (July 31, 2022)

https://www.investopedia.com/terms/t/target-market.asp