Macro and Micro Environment Analysis: St. Peter's Brewery

LAUNCHING THE COMPANY'S PRODUCT BASED ON THE NEW INTERNATIONAL MARKET: A CASE STUDY OF CHINA, ASIA
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Introduction
St. Peter's Brewery is an independent brewery that was founded in 1996 by John Murphy. The company is located in Suffolk in England. The organization's type of business is alcoholic beverages. Recently, the company decided to have a new product under its name. The company produced a new brand of non-alcoholic Kraft beers, lagers, and ales, which surprisingly taste like real alcohol with zero percent alcoholic content. Its products are brewed exclusively using organically grown malted barley and hops. It has the taste of citric and biscuit flavors. The product was launched in 2016 specifically for those who like the taste of alcohol but cannot drink. This product may be popular in England, but to make the product dominate the world market across Asia, Europe, United States, and South America, various marketing strategies have to be considered.
Macro and Micro Environment Analysis
Macroenvironment Analysis
The macro-environment consists of variables beyond the company's control but needs analysis to realign marketing strategy to shifting business environments. The macro-environment's key factors are economic, political, social, technological, legal, ethical, demographical, regulatory, and ecological. Two frameworks are reviewed to conduct a country's market environment analysis as a new international market for its brand: SLEPT and PESTLE analysis.
SLEPT is a framework used to evaluate the external forces that might have an impact on a project. It stands for economic, social, legal, environmental, political, and technological aspects. It involves a company considering the external environment before starting a venture. Under political factors, a company must consider how a government's regulations and policies may affect the economy. Moreover, certain factors such as political stability also play a part in giving the company a stable business environment. In Asia, China is a stable state; hence its political stability is conducive for organizations to thrive, unlike countries like Iraq or Iran. Therefore, in Asia, politically stable countries are more conducive for new businesses than unstable states.
Regarding economic factors, a rise in the inflation rate of any economy would greatly influence the way companies price their products and services. Moreover, it would affect the consumers' purchasing power and change the economy's demand and supply models (NITANK & Dr. M.K, 2016, p.385). Economic factors include inflation rate, foreign exchange rate, interest rates, foreign direct investment (NITANK & Dr. M.K, 2016, p.385).
Sociological factors consider all the events that influence the market and community. These events include population dynamics, among others. China as a country has a population of over 1.35 billion people. Such a population is a lucrative market for any product that is socially acceptable for the community. However, this is easier said than done because penetrating such a market could host other problems.
Technological factors must also be considered, especially if an organization considers launching its product in another country. There are three ways technological factors affect an organization's marketing management. That includes the new ways of producing goods and services, new techniques of distributing goods and services, and eventually, new media such as social sites (for instance, Instagram, YouTube, Facebook, Twitter) for communicating and building the market share of the target market (Tomi, 2015, p.12).
For an organization to trade successfully in another state, it must comprehend the other country's legalese. Breaking the law could severely the expansion plans. In China, there are rules of engagement that must be adhered to. Before launching its products, St. Peter's Brewery will have to align its operations with Chinese laws. A parent company that plans to launch a new product into a new environment must first adhere to the policies and regulations in that new environment before it can venture. For instance, for the company such as St. Peter Brewery's non-alcoholic Kraft beer, lagers and ale are a little easier to get faster into the market because they are not alcoholic.
On environmental factors, a company must consider the challenges presented by the new environment. For example, a company can review China's recycling policies and fit its business within the applicable rules.
Table one: Overview of factors
Political Factors

Evaluation of political stability

* Stability of government

Economic Factors

Basic evaluation of the macroeconomic situations

* Inflation rates
* Interest rates

Social Factors

Demographic characteristics

* Population size

Technological Factors


* New technological activities

Legal Factors


* Business law
* Tax laws

Environmental Factors


* Bio-degradable products

Microenvironment Analysis
It refers to the environment is closely linked to the organization, and it directly affects organizational activities. It is divided into two groups, the supply environment, and the demand environment. The supplied environment includes the suppliers, competitors, and market intermediaries, whereas the demand side environment includes consumers. Therefore, the forces of the micro-environment include suppliers who provide raw materials to produce goods and services. They can influence an organization's profit by lowering the price of their materials or bringing losses to the organization by increasing its raw materials' prices. This will force the company to increase the price of their products, which will affect their customers. The organization needs to keep monitoring the supplies and at the same time establishing trust and relationship with the supplier (Elena, 2013, p.328)
Competitors help an organization to improve the quality of its products. Customers, on the other hand, purchases the product for consumption. Trade companies must anticipate and change with the market trends, and such changes should have the influence and control of the competition they are experiencing from their competitors (Elena, 2013, p.329). The utmost objective of an organization is customer satisfaction. Today, customers are aware of and care about what they buy. The way customers gather and share information is via social sites. Under the current climate, companies need to espouse creative techniques on how they can address matters of the market and at the same time acquire the ability to create and sustain customers (Elena, 2013, p.329).
Culture-Based Positioning Strategy
Alden defines consumer culture as "shared sets of consumption-related symbols (brands) that are meaningful to segment members" (Alden et al., 1999, P.75). Local consumer culture positioning (LCCP) is a strategy as...