Indian Institute of Management, Sambalpur

End Term Project Report

On
International Market Expansion Strategy of PurePint

Submitted to
Prof. Anand Hindolia
In partial fulfillment of Marketing Management - II course requirement

By
Group 10, Section B:
Abhijeet Mohan 2023MBA081
Abhishek Sanghoi 2023MBA083
Mayur Aware 2023MBA090
Darji Vraj Jitendar 2023MBA093
Atharva Langhe 2023MBA112
Mudit Shukla 2023MBA117
Riddhi Sharda 2023MBA132
Sarini Khasnavis 2023MBA139
Shubham Wakalkar 2023MBA155

On
December 24, 2023

Letter of Transmittal
 Executive Summary

Leave behind tasteless sips and overlooked opportunities - the era of the non-alcoholic beer
revolution has arrived! Consumers around the globe, ranging from fitness-oriented athletes to
socially aware individuals, are enthusiastically embracing this delicious substitute. No longer do
we need to compromise on flavor to maintain sobriety; advancements in brewing techniques now
allow us to savor the full-bodied experience of beer without the intoxicating effects.

Non-alcoholic beers are produced using the same brewing methods as regular beers. However,
they undergo specific techniques such as vacuum distillation to carefully eliminate alcohol while
preserving the enjoyable flavor and scent. The data indicates that the global market is expected to
reach a value of US$34.01 billion by 2030, with a consistent annual growth rate of 5.6%.

The United States is at the forefront of the non-alcoholic beverage industry, holding a significant
portion of the global market valued at US$3,865 million. However, it is important not to
underestimate the increasing demand in the UAE, where the market is projected to experience a
consistent growth rate of 4.67% over the next five years. Each individual is projected to consume
an average of US$5.75 worth of these low-alcohol beverages in 2023.

What is the underlying cause of this trend? The rising popularity of non-alcoholic beer can be
attributed to a convergence of factors, including shifting lifestyles, increasing health
consciousness, and a preference for mindful indulgence. If you desire a beverage that is free of
guilt, serves as a reward after exercising, or allows you to participate in social activities without
compromising your objectives, this concoction provides a favorable solution.

Table of Contents
S.No. Title Page No.

Letter of Transmittal i

Executive Summary ii

1. Introduction

2. Hofstede’s Cultural Comparison between India and UAE

3. STP Framework

4. Macro Environment Analysis

5. Micro Environment Analysis

6. SWOT Analysis

7. Market Entry Strategies

8. Market Mix

9. Pricing Strategy

10. Conclusion

11. References

1. Introduction
 Quenching the Thirst for Choice: PurePint Brewery's Non-Alcoholic Craft Beer Craze

From ancient Egyptians clinking mugs of barley brew to modern-day pub crawls, beer has held a
beloved spot in human history. But for many, indulging in this age-old tradition comes with
unwanted consequences. Enter the rising stars of the beverage world: low and non-alcoholic craft
beers.

Shubham and Abhishek founded PurePint Brewery, an Indian startup, in 2016. They are at the
forefront of this exciting movement. Fueled by a passion for great beer without the buzz, they've
carved a niche for themselves by brewing flavorful, satisfying alternatives for those who choose
not to drink alcohol, whether for health, religious reasons, or simply personal preference.

Their story began in 2017, when they opened their doors in the heart of the city, offering a haven
for those seeking a sophisticated sip without the hangover. But their ambitions stretch far beyond
the cobbled streets of their hometown. With the global non-alcoholic beer market projected to
reach a staggering US$31.92 billion by 2022, the world is their oyster. And what better oyster
than the United Arab Emirates (UAE)? Nestled at the crossroads of Europe, Asia, and Africa, the
UAE serves as a bustling trade hub, perfectly positioned for PurePint's international expansion.
Beyond its strategic location, the UAE boasts a business-friendly environment with attractive
incentives and government support, making it a fertile ground for its unique brand of craft
brewing.

PurePint's expansion to the UAE promises a win-win scenario. Beer lovers yearning for flavorful
options without alcohol can raise a glass (or perhaps a sleek can) to a new era of inclusivity.
Meanwhile, the UAE cements its position as a leader in embracing diverse tastes and fostering
innovative businesses.

Source: Statista

2. Hofstede’s Cultural Comparison between India and UAE

1. Power distance
India and UAE both rank high in power distance which means that people in both the
countries have acceptance and appreciation for hierarchical order in the society and
organizations. In such organizational culture, there is a system of a boss and subordinates
who expect to get clear directions of what they are needed to do and they are obedient most
of the time to their superiors. Since hierarchy prevails in both countries the strategy followed
for selling this non-alcoholic beer in India should also work in UAE.

2. Individualism

India scores 24 in individualism, which is a little lower than 36 for the UAE. India is a mix of
individualistic and collectivistic society despite the low score, while the UAE is considered a
collectivistic society. The collaborative side for India depicts that there is a sense of
integrating into a larger network of people where individuals are expected to perform actions
keeping in mind the benefit of the whole group. Being isolated from being a part of a group
creates a sense of emptiness in such a culture. In an organizational setup, loyalty is expected
from the employees and families like treatment is expected from employers. The
individualistic aspect in India is mainly based on religious beliefs and practices, which result
in individuals performing certain actions according to their believes and fear of
consequences. In UAE, concept of collectivistic society is similar to India loyalty is the most
important trait as compared to other rules and regulations. The society fosters strong
relationships and a space where everyone takes responsibility for fellow group
members/colleagues.

3. Motivation towards achievement and success

India score a bit higher than UAE in this factor which marks the difference between India
being a decisive country while UAE being considered as average scored having no dominant
preference in this dimension. India is highly particular in terms of display of power and
success which leads to motivation to perform more. It is an ancient country with many deities
and lessons in the value of humility and abstinence which may lead to restraining the display
of decisive nature. The focus is mainly on achievements and materialistic gains and work is
the center of life.
4. Avoidance of Uncertainty

India’s score is 40 on this factor which means there is a medium low preference for
uncertainty avoidance. Imperfections are not criticized and rules can be bypassed sometimes
to do something innovative. The culture of adjusting is prevailing in this country which is a
positive and negative thing but also makes everything possible to be done if one has this trait.
UAE scores 60 on this factor and has high preference for uncertainty avoidance. The country
with this culture does not have a tolerance for unorthodox behavior and there is an emotional
need for following rules.

5. Long term orientation

India has an intermediate score of 51 so there is no dominant preference for this factor. There
is a belief in the concept of ‘karma’ and there is acceptance about truth depending on who is
the seeker. UAE scores less i.e. 22 on this factor which means people have a strong tilt
towards knowing the absolute truth irrespective of the seeker. There is more focus on
achieving quick results.

6. Indulgence

Both India and UAE score low in indulgence which shows that there is a culture of restraint
in these countries. These societies do not focus much on leisure time and have a perception
that their actions are restricted by societal rules and being more indulged in activities is
wrong.
 Source: Hofstede’s Country Comparison Tool

3. STP Framework

Segmentation, Targeting, and Positioning (STP) for Pure Pints in the UAE Market:

Segmentation:

1. Demographic Segmentation:

- Age Group: Young adults (18-30) and working professionals (30-45).

- Income Level: Middle to high income.

- Occupation: Professionals in urban areas.

2. Psychographic Segmentation:

- Lifestyle: Health-conscious individuals, fitness enthusiasts, and those who prefer a balanced
lifestyle.
 - Values: Individuals seeking premium and natural beverage options.

3. Behavioural Segmentation:

- Occasions: Daily consumption, social gatherings, and leisure activities.

- Benefits: Health benefits, refreshing taste, and natural ingredients.

4. Geographic Segmentation:

- Location: Urban and semi-urban areas in the UAE.

- Climate: Given the warm climate, Pure Pints can target regions where refreshing beverages
are in high demand.

Targeting:

Based on the segmentation analysis, Pure Pints will target:

1. Young Urban Professionals:

- Demographics: Age group 18-45, middle to high-income level.

- Psychographics: Health-conscious, busy lifestyle, and preference for premium products.

- Geographics: Urban areas in the UAE.

2. Fitness Enthusiasts:

- Demographics: Age group 18-45, middle to high-income level.

 - Psychographics: Active lifestyle, health-conscious, and looking for natural beverage options.

- Geographics: Areas with fitness centres and health-conscious communities.

3. Social Scene Participants:

- Demographics: Age group 18-30, urban dwellers.

- Psychographics: Socially active, looking for trendy and healthy beverage options.

- Geographics: Urban areas with a vibrant social scene.

Positioning:

Pure Pints will position itself as a premium, natural, and health-conscious beverage brand that
offers a refreshing alternative in the UAE market. The key positioning elements include:

1. Natural Ingredients:

- Emphasize the use of natural and high-quality ingredients to appeal to health-conscious

consumers.

2. Refreshing and Hydrating:

- Position Pure Pints as a refreshing beverage suitable for daily consumption and ideal for
staying hydrated in the UAE's warm climate.

3. Premium Quality:

- Highlight the premium quality of Pure Pints to justify its higher price point, targeting
consumers willing to invest in a superior product.

4. Well-Established in India:

- Leverage the brand's success in India to build trust and credibility, emphasizing its popularity
and positive reception in a diverse market.
5. Distinctive Packaging:

- Use visually appealing and eco-friendly packaging to make Pure Pints stand out on the
shelves and appeal to environmentally conscious consumers.

By adopting this STP strategy, Pure Pints can effectively enter the UAE market, catering to
the preferences and lifestyles of the identified target segments while leveraging its
established brand reputation from the Indian market

4. Macroenvironment Analysis

“The macro-environment is the larger societal forces that affect the macroenvironment—political
and legal, economic, socio-cultural, technological and ecological (environmental).”

PESTEL Analysis is the model we are applying to analyze a company's macroenvironment is

Legal Factors:

Macro environment factors of UAE which are favorable for PurePint Brewery:

1. Political Environment: To decrease the economic dependency on oil and gas industry after
the oil-shock of mid 2014, UAE has started to diversify its industry portfolio.They started by
marketing their tourism industry and are extensively using tourism to fuel their economy. This
has led to an increased market in food and beverages which is supported by the fact that 9% of
imports from the EU represents liqueurs and beverages, which is the highest among EU
handbooks. Thus, increased tourism has resulted in increase in demand of alcoholic as well as
non-alcoholic beverages. Moreover, the beverage industry is also impacted by the intervention
by the government via trade barriers, tax policies.

2. Economic Environment: The favorable economic climate has eased the entry of both
domestic and international plates to enter and start their businesses and implement their ideas
which will bolster the economy as a whole. The world class infrastructure has created an
economy where foreign investments are flowing in. This has created an economic environment
where other industries with tourism need to grow. Trade tariffs Disposable income, inflation
rates, and interest rates will impact the sale of beverages.

3. Social Environment: Sociocultural influences are location-specific and dynamic. Nearly 90%
of people in the United Arab Emirates are foreign nationals, making it a very multicultural
nation. Islam has been recognized as the official religion of the UAE. Islam forbids the drinking
of alcoholic beverages. PurePint explores overlooked markets among groups of people who
renounce drinking alcohol as a result of their religious beliefs. A typical instance is the shift
toward healthier lifestyles, like the Keto Diet, which might cause spending to go from booze and
snack foods to exercise equipment and wellness clubs. Additional aspects include advertising
scenarios, consumer attitudes and opinions, trends, history, education, and ethnic/religious
influences. People of any age are permitted to drink PurePint products because they are non-
alcoholic, and people with diverse religious beliefs can also consume them.

4. Technological Factors: The rate of technical evolution and innovations like genetic
engineering and nanotechnology that could have significant effects on society are examples of
technological factors. Because membrane separation procedures consume less energy, run at
lower temperatures, and have lower operational costs than other non-alcoholic beer production
methods, they have certain competitive advantages over them. These include dialysis, osmotic
distillation, nanofiltration, reverse osmosis, and pervaporation.Advancements in technology can
also facilitate digitalization. Example: HelloAva, a startup, introduced a virtual assistant that was
combined with an online shopping platform, resulting in a digitalized shopping experience.

5. Environmental Factors: Environmental forces such as weather, climate change, and

associated ecological factors like water shortages are included in environmental factors. Due to
the hot climate and cultural preferences, the demand for refreshing and exotic non-alcoholic
beers is on the rise in the United Arab Emirates.

6. Legal Factors: The rules and laws that businesses must abide by, such as labor laws, antitrust
laws, consumer protection laws, and occupational health and safety requirements, are considered
legal and regulatory factors. According to the law, non-alcoholic beer refers to fermented
alcoholic beverages based on water, malt and hops which have an alcohol content of a maximum
of 0.5% alcohol by volume. Only beverages with 0.0% alcohol by volume are considered
alcohol-free which our product will abide by.

5. Microenvironment Analysis

The microenvironment analysis is “the actors close to the company that affect its ability to serve
its customers- suppliers, marketing intermediaries, competitors, and public” (Armstrong and
Kotler, 2016).

The most efficient model for analyzing microenvironment of a company is Porter's five forces
model.

1. Threat of new entrants:

An industry usually gets new capacity, a rush to increase market share, and significant
resources when there is entry of new players in it. They pose a risk to a well-established
company. The existence of entry barriers and the anticipated response from current rivals
determine the danger of entrance. India's first and only non-alcoholic brewing establishment
is called PurePint Brewery. In India, PurePint Brewery undoubtedly enjoys the early mover
advantage. This industry has hurdles to entry and exit, and it also has significant fixed and
variable costs, making it difficult for a business to survive. Opportunities are abundant in this
field, however in the United Arab Emirates, laws governing wine, beer, and non-alcoholic
spirits are still highly strict. The only beverages which are considered alcohol-free are those
which have 0% alcohol in them. As a result, any product with an ABV of 0.5 is subject to
additional 30% tax when bought from liquor outlets in Abu Dhabi or Dubai, along with the
50% import tax imposed on bottles of alcohol. Moreover, if the product is carbonated or has
 sugar or sweeteners, it can be subject to a 50% excise tax. Thus, there is no risk of new
competitors for PurePint Brewery.

2. Rivalry among existing firms:

According to Wheelan and Hunger (2000), most industries have mutually dependent
corporations. A competitive action taken by one firm is likely to have a noticeable effect on
its competitors and hence may cause retaliation or counter efforts. Since this is a novel
market and PurePint brewery is the only firm operational in this industry in India, it does not
face any rivalry in the domestic market. In the UAE market. Consequently, several
international brands have found place on the shelves and bars in the UAE: non-alcoholic beer
brands like Heineken 0.0, Athletic Brewing Co., Clausthaler, Erdinger Alkoholfrei, and
Barbican; Spirits such as Sea Arch, Crossip, Bax Botanics, Memento, and Vibe etc. Hence
PurePint brewery faces high rivalry among existing firms.

3. Threat of substitutes:

Products that seem distinct but can fulfill the same purpose as another one are called
substitutes. By imposing caps on the prices that companies in the industry can economically
charge, substitutes restrict the potential earnings of an industry. If substitutes have low
switching costs, they can have a significant impact on an industry. Carbonated drinks, which
include non-carbonated drinks which comprise aerated and non-aerated drinks and tailored
non-alcoholic beverages, make up the two product groups that make up the non-alcoholic
beverage market. Global giants like Pepsi and Coca-Cola are well-known. Because of the
popularity of these brands, PurePint Brewery is highly vulnerable to imitations. Also, there
are alternatives like Kombucha, a fermented tea beverage as well as club sodas.

4. Bargaining power of suppliers:

Suppliers have the power to change an industry by increasing prices or lowering the caliber
of goods and services that are purchased. The non-alcoholic beer sector has a large number of
providers; hence these suppliers are not concentrated. Additionally, each company's brewing
method highlights the unique features of each product that is offered by different businesses.
Rather than inputs, the brewing method has a significant impact on the taste. Hence,
suppliers have little negotiating power.

5. Bargaining power of customer:

 Customers in the UAE have little negotiating leverage when it comes to non-alcoholic beers
like PurePint for a number of reasons. Strict rules: As previously stated, in the UAE, only
beverages with a 0.0% ABV are regarded as alcohol-free. Because of its trace level of
alcohol, Heineken 0.0 is theoretically considered non-alcoholic in most countries, but
because of its 0.5% ABV, it is subject to the same rules as ordinary beer.

This results in:

Restricted access: Because there are limited outlets for the sale of alcoholic beverages,
PurePint and Heineken 0.0 is not commonly available in every store. It may be found in some
upscale hotels or restaurants, but not at your neighborhood grocery store.

Expensive costs: The high import tax (50%) and extra retail markups on "alcoholic" goods
drive up the cost of Heineken 0.0 relative to other nations. Thus the bargaining power of
customers for PurePint stands very low and PurePint can leverage this opportunity.

6. SWOT Analysis

The rich and diverse cuisine of Europe has consistently delighted palates worldwide, including
those in the United Arab Emirates. However, European food exporters must deeply comprehend
the UAE market's promising opportunities and potential obstacles to navigate it successfully.
Analyzing the landscape using a SWOT framework can assist in plotting a path towards
achievement.

Strengths: Dubai and Abu Dhabi are thriving commercial centers that act as pivotal
intersections, providing access to the prosperous markets of the Middle East and Asia. Due to its
prime location, European food has a natural competitive edge over distant competitors in terms
of geography. The UAE has a diverse population that is increasingly developing a taste for
global cuisines. The increasing demand for imported goods provides a favorable environment for
European delicacies to thrive. Exquisite Desires: Sophisticated tastes in the UAE yearn for
exclusive, top-tier experiences. European cuisine, celebrated for its excellence and refinement,
perfectly corresponds to this longing for culinary luxury. Acquainted Companions: The United
Arab Emirates' enduring trade connections with the European Union establish a strong basis for
additional collaboration. Established relationships can facilitate easier market entry and more
efficient trade procedures. The UAE's trade strength relies heavily on a strong logistics and
transportation infrastructure. This guarantees the prompt and effective transportation of
European food from the farm to the consumer's plate, maintaining its freshness and quality.
Benefits of Free Trade Zones in the UAE: Free trade zones in the UAE provide numerous
advantages, such as tax exemptions and simplified customs processes. These incentives enhance
the attractiveness of the market for businesses of all sizes in Europe.

Weaknesses: The import regulations in the UAE can be intricate and differ among the Emirates.
The complex and intricate regulatory framework can present a major obstacle for European
exporters who are not familiar with the specific details of each region. EU-UAE Negotiations
Temporarily Suspended: Despite enduring debates, the establishment of official trade relations
between the European Union (EU) and the United Arab Emirates (UAE) has yet to be achieved.
The absence of a comprehensive free trade agreement creates a sense of unpredictability for
European businesses.

Opportunities: The recent agreement on cooperation between the European Union (EU) and the
United Arab Emirates (UAE) sets the stage for enhanced bilateral trade relations. This creates
opportunities for increased market entry and potential decreases in tariffs, enhancing the outlook
for European food exports. Brand Recognition: The goods with European Union Geographical
Indicators (GI), which are well-known for their distinct quality and origin, are gaining growing
recognition in the United Arab Emirates (UAE). This growing awareness offers a valuable
opportunity for European exporters to leverage their well-established brand reputation. The
UAE's major urban centers, such as Dubai and Abu Dhabi, are home to a prosperous population
of affluent consumers who have a growing preference for international cuisine. This offers a
profitable market for European food exporters to serve.

Threats: Protracted negotiations: Further postponements in reaching a consensus on the EU-

UAE free trade agreement may impede the expansion of European food exports to the region.
Extended negotiations generate ambiguity and impede market entry. The threat to the global
feast is ongoing and persistent competition from other agricultural superpowers in Asia and
Africa. European exporters should maintain a competitive edge by providing exclusive value
propositions and emphasizing the distinctive attributes of their products.

7. Competitor’s Analysis

Company Type of Non- Price Focus & Ma Challenges

Alcoholic Beer (330 ML) Strength rket
Sha
re

Corona Corona Extra 10 AED Refreshment 29% Brand awareness,

0.0% and teste competition in the
non-alcoholic beer
market

Stella Artois Lager 7 AED Wellness, 11% Niche Audience and

taste and avalaibility
lifestyle
 Hoegarden 0.0 Hoegarden 0.0 6 AED Citrus and 11% Limited Distribution
flavor twist and unique flavour
with wheat
base

Budweiser Budweiser 6 AED Nostalgia 13% Appealing younger

Prohibition Brew Prohibition and Classic generation and
Brew Bear taste overcoming stigmas
of beer

Following competitors are present in the UAE market. Here, we can observe that major players
cumulatively has 64% of the market share, other smaller players still have 36% of the market
share. There is 15% market share of non-branded non-alcoholic beers which can be targeted
initially and then move deeper in the market while we are creating a brand name for us.

8. Market Entry Strategies

The non-alcoholic beer market is expected to increase at an annual rate of 8% in the next five
years due to the global rise of the "sober-curious" movement, with both independent and major
players in the industry making significant investments in this market. One-third of the world's
non-alcoholic beverage market is in the Middle East. PurePint Breweries will need to employ
marketing strategies when they enter the United Arab Emirates. PurePint Breweries must begin
exporting directly via

Market Agents: PurePint Breweries needs market agents' assistance while expanding into
foreign markets. Those with contacts for potential clients and industry knowledge are known as
market agents. Agents are paid on commission, and their contracts are only valid for a set period.
Customers are presented with products by the agent, but the seller typically seals the transaction.
Marketers play a role in promoting brand recognition and identification among consumers and
other stakeholders.

E-commerce: The business should think about selling its products straight to customers by
adding it to e-commerce websites after the PurePint brewery brand is recognized by the final
consumers. By doing this, PurePint will be able to expand its clientele and further pierce the
market.

Distributors: To mitigate risk, PurePint breweries must seek out distributors (whether they be
conventional, independent, or exclusive). Distributors sign on as customers for the company
because they purchase the products from the organization and subsequently assume complete
accountability for the sale of said products.

This would constitute PurePint Breweries' initial foray into the markets of the UAE.

PurePint Breweries must seek out strategic alliances with a variety of restaurant partners during
the second phase. Contracts governing these alliances will not be equity-based. These strategic
partnerships will ensure the distribution of PurePint breweries throughout the partner
establishments. This will contribute to PurePint Brewery's increased revenues in the UAE. The
tourism sector is experiencing significant growth and development in the United Arab Emirates.
Numerous tourists from around the world are investigating the UAE. By forming these strategic
alliances, PurePint Breweries will guarantee the availability of its products in these
establishments, thereby enhancing brand recognition and sales in both the United Arab Emirates
and international markets.

In the third phase, PurePint Breweries makes an investment in the United Arab Emirates (UAE)
through one of two methods: formation of joint venture with single or multiple partners in which
the investment is divided, or indulge in direct investment and establishment of a wholly-owned
subsidiary. Direct investment requires direct oversight of the operations of the new market.
These investments from abroad are encouraged in the UAE. Through the allocation of these
funds, businesses can reduce overall expenses, increase managerial autonomy, and, in the context
of collaborative endeavours, consolidate resources. By doing so, administrative redundancies are
diminished and the integration of new product development is enhanced.

Using technology to enter UAE market and marketing Pure Pint

Customer Data and Targeted Marketing:

Utilize consumer data to create profiles of potential customers in the UAE, categorizing them
based on their demographics, preferences, and preferences. Examining the data and
implementing culturally appropriate advertising to highlight local customer feedback stories.
Utilize widely used social networking networks in the UAE. Engage in cooperation with
influential individuals within the local community and employ focused digital marketing
strategies.

Social Media Marketing:

Create a robust presence on widely used social media sites in the UAE, including Twitter,
Facebook, and Instagram. Consistently publish content featuring Sober Sips beverages,
encompassing product visuals, events, and promotional activities. Proactively interact with
customers by addressing comments, promoting user-generated material, and overseeing
feedback.

Omni-channel Marketing:

Acknowledge the intricate path that consumers take and provide a smooth and uninterrupted
experience across multiple channels. Integrate conventional print or television media coverage
with internet visibility and physical store presence. Analyze customer habits during the entire
purchasing journey in order to customize marketing efforts accordingly.

Global Reach and Localization:

Utilize the extensive worldwide presence of platforms like as Google, Twitter, and Facebook to
effectively market Sober Sips beverages on an international scale. To improve accessibility and
attract a wider range of audiences, it is advisable to localize the website into Arabic.
Acknowledge the impact social media in developed nation, and adjust marketing techniques
accordingly.

8. Marketing Mix

While entering a new market, one of the most critical factors is to contemplate whether to choose
standardization or adaptability of the marketing mix.

Adaptation results in having a unique marketing mix for different countries or markets. The
adaptation strategy is designed to effectively address the demands of the local market by
strategically organizing all business operations to cater to those demands while also
demonstrating regard for the values of the local clientele.

1. Price

The price at which an item, service, or organization is offered is referred to as its "price"
(Baacket al. 2013). Only the price component of the marketing mix produces revenue. Price
influences sales, reputation, profitability, and other metrics. Retailers add a markup to the
wholesale price in order to determine the retail price, which is then billed to the wholesaler.

Market dynamics have a big impact on the price. Accordingly, the company must establish the
price and manage its expenses. Adherence to a standardized price is unattainable due to the
inherent variability of market conditions across markets. Therefore, PurePint Brewery must
implement an adaptive pricing strategy, i.e., set varying prices for each market, to maximize the
company's and customers' profits.

In the United Arab Emirates, PurePint products are exclusively available at the Drink Dry store
for a total of AED 179 (12 bottles, or approximately 2 GBP per bottle, or AED 15). As opposed
to this, the cost in India amounts to around 2600 RS. Since the UAE is a predominantly Muslim
nation with fierce market competition and a high demand for non-alcoholic beverages, PurePint
Breweries has implemented a penetrative pricing strategy.

2. Product

A product is a ready-to-purchase object. A product can be either an item or a service. It may

manifest in physical, virtual, or cyber form. Each product is sold at a price and is produced at a
cost. Pricing is contingent upon market conditions, product quality, marketing efforts, and the
specific target market segment.

To capitalize on market share, PurePint brewery will enter the UAE market with standardized
products, i.e., its product portfolio will be identical for both the domestic and international
markets.
3. Promotion

Promotions encompass the complete array of endeavours that aim to inform the user about the
product, brand, or service in question. The objective is to raise awareness, entice, and persuade
individuals to purchase the product over competing alternatives.

To publicize its products, PurePint Brewery must implement an adaptation strategy. It is

consistently advisable to consider the distinctions that emerge between the indigenous market
and the target market, primarily pertaining to variations in language, culture, and value systems.
Considering the present historical juncture, it is additionally critical to examine the distinctions
between the primary digital channels and the consumers of the various media types. There are
frequently so many distinctions between the domestic and international markets in terms of
promotion that it is occasionally necessary to utilize the services of a local firm.

4. Place

Distribution refers to the process by which goods reach the consumer in a foreign country.
Between 15 and 40 percent of the retail pricing of goods and services is allocated to distribution.

This is because the external factors that influence various nations differ. When it comes to
location and distribution, an adaptive strategy is compulsory.

The company must conduct market research on the country's distinctive geographical
characteristics, such as infrastructure development, prior to introducing a new product. Another
external factor to contemplate is the stage of economic development in the country. This
provides valuable information regarding the market's long-term profitability and aids in deciding
whether to enter the market immediately or to postpone it for a short period of time.

9. Pricing Strategy

The Pricing Strategy involves the 6 Key Steps -

● Defining the pricing objectives

● Determining Demand
● Estimating Cost
● Analyzing competitor’s cost, prices and offers
● Selecting a pricing method
 ● Setting up the final price

Pricing Objectives:

Short Term Profit – roll out Pure pint as an affordable canned craft beer for early sales

Market penetration – enhancing the customer base in a highly competitive market

Market Skimming – Target loyal and high value customers

Quality Leadership – Offer high quality beer at affordable price justifying Value for
Money

Determining Demand:

In the Non-Alcoholic Beer market, volume is expected to amount to 16.3m L by 2028. The Non-
Alcoholic Beer market is expected to show a volume growth of 1.4% in 2024. The average
volume per person in the Non-Alcoholic Beer market is expected to amount to 1.47L in 2023.

Estimating Cost:
Average Price of a Can = 8 AED ~ Rs. 180

Hence, For Market Penetration, Price should be competitive with the current prices prevailing in
the market.

Setting Price:

Selecting a Pricing Method:

Setting The Final Price:

Final Quoted price (330 ml) – Rs. 190 per can (8.4 Dirham) - Initial penetration price

The price will gradually change depending upon the sales and popularity with time.

10. Conclusion
A start-up brewery called PurePint aims to give its consumers handcrafted beers that have zero
percent in alcohol. It was established in India in 2016. PurePint has a long way to go given the
growing demand for non-alcoholic beers and beverages. They have grown in India, and the UAE
would be the ideal location for them to expand internationally given its favorable political and
cultural conditions, advanced infrastructure, and advantageous commercial possibilities. Since
the United Arab Emirates is a Muslim nation, PurePint views the individuals who abstain from
alcohol due to their religious convictions as a growing market and views this expansion as a
potential potential. The presence of competitors in its surroundings and the threat posed by them
to the company are both significant threats. In order to enter the UAE market, PurePint must do
so gradually. In phase 1, marketers work to increase brand awareness and identification among
consumers and other stakeholders. Phase 2 of PurePint's business plan calls for it to create more
effective channels of distribution. Phase 3 will focus on improving product development and
integration through joint ventures, technology, and expanding the footprint and market share in
the United Arab Emirates through the establishment of a wholly owned subsidiary. In the
instance that PurePint is launching a product, it is crucial that they employ a standardized
marketing mix. To optimize efficiency and benefits, adaptive marketing mix tactics should be
implemented for price, promotion, and distribution.

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