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Posted: November 29th, 2013

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Introduction

Krombacher is one of the most successful breweries in Germany. It was founded as a family business by Johannes Haas in 1803 and is currently run by the Schadeberg family (Krombacher). Krombacher Pilsner, commonly known as Krombacher Pils was introduced into the market. This marked the beginning of success for the privately owned brewery. Krombacher brewery offers employment to almost half the population in Krombach suburbs, Kreuztal. The Krombacher Pils is considered the most consumed beer in Germany. Krombacher exports most of its products to European countries.

Brazilian Impact

The introduction of Krombacher Pils in the Brazilian market is meant to increase sales. The marketing strategies have to be in line with the target market of Brazil and its environment. The Brazilian environment could have some impact on Krombacher’s marketing strategy.

Economic environment

Brazil is the fourth biggest market for beer in the world. It is reported that more than 95 percent of the Brazilian population consumes pilsner beers (Eakin, 1997). The introduction of Krombacher Pils in Brazil would be a significant boost for the company’s profits since there is a ready market in Brazil. The economic growth in Brazil is largely contributed by the annual sales in alcohol especially beer. There exists stiff competition for beer market in Brazil therefore Krombacher would have to play among the top beer companies in Brazil. The target market for Krombacher Pils is anyone who is above the legal drinking age in Brazil. The Brazilian economy is open to new market products especially if these products appeal to the people. Therefore, Krombacher Pils will be largely accepted by the Brazilian people.

Technological environment

One of the marketing strategies for Krombacher Pils is through the application of technology. Technological advancements in Brazil have been on the rise over the last few years as it is currently ranked 56^th among the most technologically advanced countries in the world (Eakin, 1997). Online marketing for Krombacher Pils will be an outstanding success as many of the young people in Brazil are technologically forward therefore through the internet, they will be able to see the websites and blogs about Krombacher Pils. In addition, some of the marketing will have to be done through the other digital forms like televisions and radios and during carnival. The technological environment in Brazil is ready for the Krombacher Pils given by the fact that both the government and the business sector are promoting information communication and technology.

Socio-cultural environment

Brazilians are extremely passionate about soccer, family relations, music and their national language Portuguese (Eakin, 1997). During soccer matches, family events, music concerts, etc, beer is consumed in large quantities. Carnival is also a cultural event in Brazil that takes place once every year. During carnival, the amount of beer that is consumed in Brazil is three times the annual consumption of the whole country. This is because the whole country celebrates carnival and the number of tourists that visit the country during this festival is massive. Given by the strong socio-cultural environment, marketing Krombacher Pils will be done during soccer matches and annual events like carnival. Brazilians also love their music, and during music concerts, beer sales are said to improve. This means that with the right marketing strategies for Krombacher Pils, purchase will be high and, in turn, increase sales for the beer.

It is also pertinent to note that there is a difference in alcohol consumers in Brazil. Those who belong to the middle and upper class are said to drink more often than those who are in the lower class. The middle and upper classes, also sometimes known as the ‘elite’, drink often but in small quantities while those in the lower class do not drink as often, but their intake is five times that of the middle and upper classes. This means that the marketing strategies have to target both the middle and upper class and the lower class so that Krombacher Pils is made affordable to consumers in all classes.

Political-legal environment

Marketing for Krombacher Pils in Brazil will not see any political interference because it is not a Brazilian drink. Besides, the beer will help boost the economy of their country. The political uproar in Brazil will not deter the marketing strategies for Krombacher Pils. Every country has its share of political wrangles, and Brazil is one of them (Eakin, 1997). However, this will not be an obstacle to the marketing strategies, as they will focus only on selling the beer. Krombacher will not affiliate itself with any political activities. Laws are used to govern any country. The civil code in Brazil regulates businesses and Krombacher will have to abide by this law as it plans to introduce Krombacher Pils in Brazil. All the marketing strategies must follow the rules and regulations of the Brazilian law system. For example, it has to be made clear that the sale of Krombacher Pils is strictly to those who are above the legal drinking age in brazil, which 18 years.

Product policy  

Krombacher maintains a strict product policy and integrity to cater for the needs of their consumers in more than 48 countries around the world.

Standardization

Krombacher’s standardization levels are high in that their products have minimal differences. Their primary goal for doing this is to increase the quality of their products and their sales in the local and international market. This standardization policy is necessary as it reduces the cycle of production, production cost and it increases the quality of products. This, in turn, helps the corporation to lessen the cost of raw materials. All the products of Krombacher breweries have similar features they only possess different ingredients. This similarity in the products is what provides for their increased sales and constant popularity in Germany. The German population world over appreciates the brand that is Krombacher.

Branding

Branding is the art and cornerstone of marketing (Temporal, 2010). Under trademark laws, businesses are granted exclusive rights to use their brand names in perpetuity. Krombacher ensures that all their products are well branded before distribution to consumers. Krombacher is considered a brand name on its own. The brand is known for its pure alcoholic and non-alcoholic drinks around the world. The Krombacher logo is also recognized by all their consumers making it easily identifiable when buying Krombacher products. The Krombacher brand is extremely common in German households since that is the homeland of the company. Branding is essential to Krombacher because its products should be easily differentiated from those of their competitors in Germany. Germans identify with the Krombacher brand as it provides a sense of value, culture, personality and satisfaction to them. This has guaranteed Krombacher loyalty in their consumers.

Packaging/labeling

A product’s package is what defines it to their consumers and influences their decision to buy it (Temporal, 2010). Krombacher has been improving their packaging styles to increase the purchase of their products. They have improved the looks of their crates to more manageable crates that are easier to hold and carry. Because they deliver their products to a wide variety of consumers throughout Germany, it was essential for them to improve these crates to give transporters an easy time. This new, modern crate has increased their sales since the crates are said to hold their products for longer periods.

Krombacher has also improved the labeling of their bottles. This is the reason why they have been experiencing an increase in sales for their products in Germany. For example, the Steinie bottles are preferred by consumers to other brands because they are comfortable to the hand. The Krombacher Pils long neck bottles are also loved by their consumers because they are lean, elegant and sophisticated. They also provide a firm grip in the hand. In general, Krombacher products are attractive hence the reason why they have a stable consumer base especially in Germany. Krombacher realize that packaging is important in influencing the consumer’s decision to purchase their products. This makes the company constantly improve their packaging but maintain the same quality in their products.

After sales service

Customer value is the combination of benefits received by targeted consumers that includes quality, price, convenience, on-time delivery and both before-sale and after-sale services (Temporal, 2010). Creating customer value through after sales services in an integral part of Krombacher’s marketing and sales strategy. Krombacher believe in satisfying their consumers therefore they make a point to listen to their customer complain and try to address the raised issues. There are Krombacher agents everywhere they have their products and these agents ensure that their consumers are offered with the best quality of their products.

For example in supermarkets, there are Krombacher agents whoa re always willing to listen to their customers during purchase. Through their website and blogs, they are able to keep in constant communication with their consumers. In Germany, there re Krombacher stalls in almost every corner therefore the connection between Krombacher and their customers is not lost. They have discounts offers to their most loyal customers especially during festive seasons. Their continued after sales services has guaranteed them excellent consumer retention levels in Germany and increased their market share.

Conclusion

Krombacher has been in the German beer market for many years. It is rated one of the best beer brewers in the world with a consumer base in more than 48 countries. Their continued improvement in consumer satisfaction has placed them ahead of their competition. They are constant advocates for “quality surveys and market research” to improve the relationship between them and their consumers (Krombacher). Their alcoholic and non-alcoholic drinks continue to impress and attract their consumers in Germany and throughout the world. As Krombacher continues to expand its consumer base in new countries, it promises to be the number one beer producer and distributor in the world.

Reference

Eakin, M. C. (1997). Brazil: The once and future country. New York: St. Martin’s Press. Print.

n.a (n.d). “Krombacher”. Retrieved from http://www.krombacher.com/Braukunst/Menschen/

Temporal, P. (2010). Advanced brand management: Managing brands in a changing world. Singapore: John Wiley & Sons (Asia). Print.