Table of contents

Introduction
This paper has three chapters

1. Background of study
 Background of the study and the organization
 Research questions and objective of the study
 Methods of data collection
2. Literature review

 Meaning of value chain, value delivery processes

 Holistic marketing
 Meaning international marketing and entry modes
3. Data analysis, conclusion and recommendation
Executive summary

The value chain is consists of all value-generating activities, sequential or otherwise,

required to produce, deliver and dispose of a commodity. it is the full range of activities
which are required to bring a product or service from conception, through the different
phases of production , to delivery to the final consumer and final disposal after use.and also it
is a typical chain includes all of a product’s stage of development, from its design to its sourced raw
materials and intermediate inputs, its distribution, and its support to the final consumer. The value
chain concept has several dimensions. The first is its flow, also called its input-output structure.The
second dimension of a value chain has to do with its geographic spread .The third dimension of the
value chain is the control that different actors can exert over the activities making up the chain.

. Most organizations has different activities in the process of converting inputs to outputs.
activities can be classified generally as either primary or support activities. The primary
activities are
 Inbound logistics.
 Operations
 Outbound logistics: 
 Marketing and sales and Service: 
 The support activities are
 Procurement
 Technology development
 Human resource management
 firm infrastructure 

The various departmental activities are coordinated to conduct core business processes. These
core business processes include:

1. The market sensing process

2. The new offering realization process

3. The customer acquisition process:

4. The customer relationship management process

5. The fulfilment management process

The Holistic marketing recognizes that "everything matters" with marketing and that a broad,
integrated perspective is often necessary. Four components of holistic marketing are relationship
marketing(custemers,channel and parteners) integrated marketing(communication,products and
service, and channals), internal marketing(marketing department,senior management and ather
departements), and social responsibility marketing(ethics,inveroment, legal and community).
At the end of this lesson the student should be able to

1. Define value chain and international marketing

2. Express value delivery process and meaning of international marketing

3. Discusses a holistic marketing orientation and customer value

4. Describe the objective or reason of international marketing

5. Brief the firm’s orientation to international marketing

6. Express the techniques international marketing

CHAPTER ONE

BACKGROUND OF THE STUDY

Harvard business school's Michael e. porter was the first to introduce the concept of a value
chain. porter, who also developed the five forces model that many businesses and companies use
to figure out how well they can compete in the current marketplace, first discussed the value
chain concept in his book "competitive advantage: creating and sustaining superior performance"
.

porter suggests that activities within an organization add value to the service and products that
the company produces, and that all of these activities should be run at optimum level if the
organization is to gain any real competitive advantage. in his book, porter said a business's
activities could be split into two categories those are primary and secondary.

( doole and lowe (2001). "International marketing is the performance of business activities that
direct the flow of a company’s goods and services to consumers or users in more than one nation
for a profit.

“(cateora and ghauri (1999)). "The international market goes beyond the export marketer and
becomes more involved in the marketing environment in the countries in which it is doing
business.

The aim of the study is to assess the value chain processes and the application of international
marketing and the modes of entry of dbsc.

2. BACKGROUND OF THE CASE COMPANY (Dashen Brewery Background)

Dashen Breweries Share Company was established by TIRET corporate & Duet Vasari
Beverages African limited company. Dashen Breweries Share Company is a major player in the
rapidly developing Ethiopian beer market. Its first brewery plant is located in the historical town
of Gondar Ethiopia 738 km of Addis Ababa with an initial capital investment of over 340 million
Birr its second and new plant is located in the other historical town of Debre Birhan North shoa
zone of Amara Regine, 124 km northeast of Addis Ababa Dashen beer is named after mount
Dashen, Ethiopia’s highest mountain elevated 4523 meters and a home to rare endemic fauna
and flora and renowned for its breath taking scenery.
Dashen first plant started to supply its Dashen Bottled Beer and Draught Beer since June 2000.
At the startup period the first plant had a production capacity of 300,000 hl per annum now
950,000 HL per annum recently and the new plant also started to supply its production on Nov
15, 2015 with the total construction outlay including the building and machinery, was completed
for 2.5 billion ETB have a capacity of production two million hectoliters in its first year and
three million hectoliters after that.

Dashen’s vision is to ‘to be number one brewing company in Ethiopia’ and works to
achieve a mission to delight consumers, Enrich communities & Enhance Ethiopia’s progresses’.
Dashen benefits from having both Ethiopian and international shareholders that brings both
foreign investment and professional expertise. Its flagship brand, Dashen Beer, is renowned for
its great taste & quality.

For the past consecutive years, the sales performance of the company has remarkably shown an
increasing trend. Considering its sales performance, customers demand analysis and the entire
beer market growth; initiate Dashen to build a new leading edge brewery at Debre Birhan, which
is the first of its kind in Africa with a total production capacity of 3 million HL per annum. Since
its establishment, Dashen breweries has already been a beer tycoon and a pioneer in customer
satisfaction, which is confirmed by being awarded two internationally recognized certifications,
ISO 9001 & ISO 14001 & national quality awards and recently Debre Birhan plant awarded ISO
9001-2015.

Currently, the brewery has created direct job opportunity for more than 2000 employees, out of
which 1200 are permanent employees and the rest 900 are outsource staffs.

This figure is anticipated to consistent within the next years as the company aggressively
fulfilled the headcounts on the past few years. In line with this modern technology diffusion and
vigorous human resource capacity development have even under taken at all levels. Moreover,
the Brewery is has undertook projects of malt factory to supply the brewery & other brewery’s
with a sustainable supply of quality malt produced in the unique two-raw barely grown in the
high lands of the region.

The Vision, Mission and Value Statement of the company

VISION

To Be Ethiopia’s number one Brewing Company

Best in Quality, Community, Capability & Performance

PURPOSE

Delighting Consumers,
Enriching Communities,
Enhancing Ethiopian Progress

VALUE
1. Ownership
We accept personal accountability to meet business needs and work as one Team
We think and act like owners, doing the best for Dashen, serving customer and community needs
2. Trust
We respect and value one another and have confidence in each other’s capabilities and intentions
We share ideas openly and can challenge the status quo

3. Integrity, Being our Word

Our word is our bond-we keep our promises and our actions, are always true to our commitments
We always act with integrity
4. Leadership Development
We are all transformational leaders of Dashen delivering results, developing ourselves and our
people
We perform at our best, to high standards and we always align

5. Passion for Edge & Winning

We are driven to execute brilliantly, at pace and to a high standard
We strive to be the best and to win in the market
 Research questions

We attempt to examine the following questions.

1. What look likes value chain process in dashen Brewery Company?
2. What are the primary and supportive activities in the company?
3. What are the short term market opportunities, the major factors detect to utilize those
opportunities and your strategies?
4. How a company implement holistic marketing and its response to each face?
5. Is the company enters and applies international marketing? And what are the barriers
influences the company to enter in to the international market?

Objectives of the study

 To examine the implementation of the value chain process and the
international marketing

Method of data collection and interpretation

To success the objective of the study, we used both primary and secondary data that gather
through different tools. Interview as the primary source of data and different documents as
a secondary source of data. Interview, observation and annual newsletter are used to obtain
primary and secondary data’s and data analysis/interpretation method of the study was
organized and analysed through descriptive method by using qualitative methods or
narrations.
 Chapter Two

2. Literature review

The term value chain is defined by different authors for instance according to (schmitz,
2005) a value chain consists of all value-generating activities, sequential or otherwise,
required to produce, deliver and dispose of a commodity. more specifically (kaplinsky and
morris, 2000) defined the term as, it “describes the full range of activities which are required
to bring a product or service from conception, through the different phases of production
(involving a combination of physical transformations and the input of various producer
services), to delivery to the final consumer and final disposal after use ”.

in addition according to (mccormick and schmitz, 2002) a typical chain includes all
of a product’s stage of development, from its design to its sourced raw materials and
intermediate inputs, its distribution, and its support to the final consumer. to understand
how to conduct a value chain analysis, a business must first know what its value chain is.
a value chain is the full range of activities — including design, production, marketing
and distribution — businesses go through to bring a product or service from conception
to delivery. For companies that produce goods, the value chain starts with the raw
materials used to make their products, and consists of everything that is added to it before
it is sold to consumers.
“The concept of the global value chain recognises that the design, production and
marketing of many products now involve a chain of activities divided among enterprises
located in different places. The value chain describes the activities required to bring a
product from its conception to the final consumer. The below diagram offers a stylised
view of a typical chain. The chain includes all of a product’s stages of development, from
its design, to its sourced raw materials and intermediate inputs, its marketing, its
distribution, and its support to the final consumer.
Chain of value adding activities diagram
Source: http://www.ifm.eng.cam.ac.uk/research/dstools/value-chain-/ drawing on Porter,
Michael E., "Competitive Advantage". 1985, pp 11-15. The Free Press, New York.
(Accessed 19/01/15)
The value chain concept has several dimensions. The first is its flow, also called its input-
output structure. In this sense, a chain is a set of products and services linked together in
a sequence of value-adding economic activities. A value chain has another, less visible
structure. This is made up of the flow of knowledge and expertise necessary for the
physical input-output structure to function. The flow of knowledge generally parallels the
material flows, but its intensity may differ. The second dimension of a value chain has to
do with its geographic spread. Some chains are truly global, with activities taking place in
many countries on different continents. Others are more limited, involving only a few
locations in different parts of the world. The third dimension of the value chain is the
control that different actors can exert over the activities making up the chain. The actors
in a chain directly control their own activities and are directly or indirectly controlled by
other actors. Since value chains are basically constellations of human interaction, the
possible varieties ( McCormick, D and Schmitz, H (2001),p.17-19)

“The idea of the value chain is based on the process view of organizations, the
idea of seeing a manufacturing (or service) organization as a system, made up of
subsystems each with inputs, transformation processes and outputs. Inputs,
transformation processes, and outputs involve the acquisition and consumption of
resources - money, labor, materials, equipment, buildings, land, administration and
management. How value chain activities are carried out determines costs and affects
profits. Most organizations engage in hundreds, even thousands, of activities in the
process of converting inputs to outputs. [According to Porter (1985) these] activities can
 be classified generally as either primary or support activities that all businesses must
undertake in some form.” The primary activities includes the following
 Inbound logistics: this refers to everything involved in receiving, storing and distributing
the raw materials used in the production process.
 Operations: this is the stage where raw products are turned into the final product.
 Outbound logistics: this is the distribution of the final product to consumers.
 Marketing and sales: this stage involves activities like advertising, promotions, sales-
force organization, selecting distribution channels, pricing, and managing customer
relationships of the final product to ensure it is targeted to the correct consumer groups.
 Service: this refers to the activities that are needed to maintain the product's performance
after it has been produced. this stage includes things like installation, training,
maintenance, repair, warranty and after-sales services.
 the support activities help the primary functions and comprise the following:
 Procurement: this is how the raw materials for the product are obtained.
 Technology development: technology can be used across the board in the development
of a product, including in the research and development stage, in how new products are
developed and designed, and process automation.
 Human resource management: these are the activities involved in hiring and retaining
the proper employees to help design, build and market the product.
 firm infrastructure: this refers to an organization's s structure and its management,
planning, accounting, finance and quality-control mechanism
 Porters valuee chain

Source: http://www.ifm.eng.cam.ac.uk/research/dstools/value-chain-/ drawing on Porter,

Michael E., "Competitive Advantage". 1985, pp 11-15. The Free Press, New York.
(Accessed 19/01/15

The value deli very process

The traditional view of marketing is that the firm makes something and then sells it. In this
view, marketing takes place in the second half of the process. The company knows what to
make and the market will buy enough units to produce profits. Companies that subscribe to
this view have the best chance of succeeding in economies marked by goods shortages where
consumers are not fussy about quality, features, or style. The traditional view of the business
process, however, will not work in economies where people face abundant choices. There,
the "mass market" is actually splintering into numerous micro markets, each with its own
wants, perceptions, preferences, and buying criteria. The smart competitor must design and
deliver offerings for well-defined target markets. This belief is at the core of the new view of
business processes, which places marketing at the beginning of planning.

Goals and outcomes of value chain analysis

ruth campbell, senior vice president of technical learning and application at economic
development said that the best result of a value chain analysis should be the identification of
the following components:

1. Key short- and medium-term end-market opportunities in the target value chains.
2. Factors constraining the maximization of these opportunities (for small-scale
producers, women, youth, etc.).
3. Upgrading strategies to address these constraints and maximize opportunities.
4. Private-sector, public-sector and civil society entities to partner with to achieve these
upgrading strategies.
5. recommendations of how to support these value chain upgrading strategies in a way
that is gender equitable, promotes improved nutrition (where relevant), and is
inclusive of the poor and other marginalized group

One common misconception is that every constraint identified in a value chain analysis must
be addressed," campbell said. "value chain analysis should be used to prioritize the most
binding constraints — the ones that, if addressed, will produce the most beneficial impact
and those constraints that can be addressed relatively quickly and easily to produce
momentum for change among value chain actors."

Benchmarks
 The firm's success depends not only on how well each department Performs its work, but
also on how well the various departmental activities are coordinated to conduct core
business processes. These core business processes include:

1. The market sensing process: all the activities involved in gathering market intelligence,
disseminating it within the organization, and acting on the information.

2. The new offering realization process: all the activities involved in researching, developing,
and launching new high-quality offerings quickly and within budget.

3. The customer acquisition process: all the activities involved in defining target markets and
prospecting for new customers.

4. The customer relationship management process: all the activities involved in building
deeper understanding, relationships, and offerings to individual customers.

5. The fulfilment management process: all the activities involved in receiving and approving
orders, shipping the goods on time, and collecting payment.

Orientation holistic marketing and customer value

The holistic marketing concept is based on the development, design, and
implementation of marketing programs, processes, and activities that recognizes their
breadth and inter-dependencies. Holistic marketing recognizes that "everything
matters" with marketing and that a broad, integrated perspective is often necessary.
Four components of holistic marketing are relationship marketing, integrated
marketing, internal marketing, and social responsibility marketing. (philip kotler&
kkevin lane) the process of holistic marketing takes into account the considerations
of stakeholders, customers, employees, suppliers and the community as a whole when
creating and implementing marketing strategies. These are:

1. Relationship marketing
  The objective of relationship marketing is to build strong, long-lasting relationships with
various stakeholders and other important parties connected to the business.
 Customers, employees, financing entities, suppliers, regulatory agencies and competitive
firms are all necessary partners for a business to have and sustain, and each has a
significant impact on the success or failure of the company.
 Relationship marketing focuses on establishing relationships with a stakeholder, and it
also requires retention and growth of each relationship over time.

2 Integrated Marketing
Within the integrated marketing component of a holistic strategy, businesses work toward
making marketing decisions focused on creating value for stakeholders through a clear,
concise marketing message. All activities within integrated marketing including advertising,
public relations, direct marketing, online communications and social media marketing work-

… in sync with one another to ensure the customers and business partners have the same
experience with and perception of the company. The main focus is on integration of
promotion mixes to deliver clear message.

An effective marketing programme blends the marketing mix elements into a coordinated
programed designed to achieve the company’s marketing objectives. The marketing mix
constitutes the company’s tactical toolkit for establishing strong positioning in target markets.
However, note that the four Ps represent the sellers’ view of the marketing tools available for
influencing buyers. From a consumer
viewpoint, each marketing tool must deliver
a customer benefit. One marketing expert
(Haig Simonian ) suggests that
companies should view the four Ps as the
customer’s four Cs
Winning companies are those that meet customer needs economically and conveniently and with
effective communication

. 3. Internal Marketing

 Internal marketing is aimed at catering to the specific needs of the business's own
employees
 Internal marketing ensures that employees are satisfied with the work they perform each
day as well as the philosophy and direction of the organization as a whole.
 Greater satisfaction among employees leads to increased customer satisfaction over time,
making internal marketing a key aspect of the holistic approach.
 In addition to working toward employee satisfaction through internal marketing,
businesses use this component of holistic marketing to achieve coordination among
internal departments.
 The objective is to reduce departmental conflicts among the various business arms within
a single organization which leads to greater synergy in marketing activities presented to
the consuming public
4. Societal Marketing

Effective internal marketing must be matched by a strong sense of social responsibility.

Companies need to evaluate whether they are truly practicing ethical and socially responsible
marketing. Several forces are driving companies to practice a higher level of corporate social
responsibility: rising customer expectations, changing employee expectations, government
legislation and pressure, investor interest in social criteria, and changing business procurement
practices.

The issues are complicated: It is not easy to draw a clear line between normal marketing practice
and unethical behaviour. At the same time, certain business practices are clearly unethical or
illegal. These include bribery or stealing trade secrets; false and deceptive advertising; exclusive
dealing and tying agreements; quality or safety defects; false warranties; inaccurate labelling;
price-fixing or undue discrimination; and barriers to entry and predatory competition. (Philip
Kotler& Kkevin Lane Kelle)
Diagram of holistic market

Holistic marketing must meet all the challenges of 21th century which are
  Globalization
 Changing technology
 Customization
 Customer empowerment
 Customer relationship marketing
 customer life time value
 target marketing
 integrated marketing communication
 channels as partners
 every employer are marketer

Definition and Meanings of international marketing

The American marketing Assocation(AMA) define the term international marketing as

follows :
“International marketing is the multinational process of planning and excusing the
conception ,pricing, promotion, and distribution of ideas, good ,and services to create an
exchange that satisfy individual and organizational objectives. “Or international
marketing is the performance of business activities design to plane, price, promote and
direct the flow of companies’ goods and service to consumers or users in more than one
nation for profit

International marketing is simply the application of marketing principles to more than one
country. However, there is a crossover between what is commonly expressed as international
marketing and global marketing, which is a similar term. For the purposes of this lesson on
international marketing and those that follow it, international marketing and global marketing are
interchangeable. International marketing is simply the application of marketing principles to
more than one country. At its simplest level, international marketing involves the firm in making
one or more marketing mix decisions across national boundaries. At its most complex level, it
involves the firm in establishing manufacturing facilities overseas and coordinating marketing
strategies across the globe. Domestic marketing is concerned with the marketing practice with in
a marketers home country .from the perspective of domestic marketing, marketing method used
outside the home market are Foreign marketing

The distinction between domestic verses international markets

Same basic distinctions between domestic and international markets are as enumerated below

1) Domestic market
 one language, one nation ,one culture
 market is much ,more homogenies
 single currency
 no problem of exchange controls, tariffs
 relative stable business
 minimum government interference in business decision
 Data in marketing research available, easily collected and accurate etc.
2) International markets
 Many language, many nation, many culture
 Market are diverse and fragmented
 Multiple currencies
 Exchange control and tariffs normal obstacle
 Multiple and unstable business environment
 Due to national economic plans government influence usually in business
decision
 Marketing research very difficult, costly and cannot give desire accuracy
etc.
 Domestic and international enterprises ;characteristic and practice
environment
Objectives or reason of international marketing

Among the objective of international marketing

 to enhance free trade in international level,

 to increase globalization by integrating the economies of different countries,
  to ensure sustainable resources management globally, To achieve world peace by
building trade relation among different countries.
 To maintain free and fair trade.
 to minimize the gap between developed and developing countries and to distribute
the profit among the participant countries.

There are many reasons that attract the organization to entre in international or
global market.
 To get extremely large market share
 To increase economic of scale
 To make the life of the product
 To get High-profit opportunities in the international market than the domestic market

Deciding Whether to Go Abroad

Most companies would prefer to remain domestic if their domestic market were large
enough. Managers would not need to learn other languages and laws, deal with
volatile currencies, face political and legal uncertainties, or redesign their products to
suit different customer needs and expectations. Business would be easier and safer.
Yet several factors are drawing more and more companies into the international
arena:

 The company discovers that some foreign markets present higher profit
opportunities than the domestic market.
 The company needs a larger customer base to achieve economies of scale.
 The company wants to reduce its dependence on any one market.
  Global firms offering better products or lower prices can attack the company's
domestic market. The company might want to counterattack these competitors in
their home markets.
 The company's customers are going abroad and require international servicing.

Before making a decision to go abroad, the company must weigh several risks:

 The company might not understand foreign customer preferences and fail to offer a
competitively attractive product.
 The company might not understand the foreign country's business culture or know
how to deal effectively with foreign nationals.
 The company might underestimate foreign regulations and incur unexpected costs. &
The Company might realize that it lacks managers with international experience.
 The foreign country might change its commercial laws, devalue its currency, or
undergo a political revolution and expropriate foreign property.
Because of the conflicting advantages and risks, companies often do not act until some
event thrusts them into the international arena. Someone—a domestic exporter, an
international importer, a foreign government—solicits the company to sell abroad, or the
company is saddled with overcapacity and must find additional markets for its goods.
Most countries lament that too few of their companies participate in international trade.
This keeps the country from earning foreign exchange to pay for needed imports. It also
raises the specter of domestic companies eventually being hurt or taken over by foreign
multinationals. These countries are trying to encourage their domestic companies to
grow domestically and expand globally. Many countries sponsor aggressive export-
promotion programs to get their companies to export. These programs require a deep
understanding of
how companies become internationalized.

The internationalization process has four stages:

1. No regular export activities.

2. Export via independent representatives (agents).
 3. Establishment of one or more sales subsidiaries.
4. Establishment of production facilities abroad.

The first task is to get companies to move from stage 1 to stage 2. This move is helped by
studying how firms make their first export decisions.9 Most firms work with an independent
agent and enter a nearby or similar country. A company then engages further agents to
enter additional countries. Later, it establishes an export department to manage its agent
relationships. Still later, the company replaces its agents with its own sales subsidiaries in its
larger export markets. This increases the company's investment and risk, but also
its earning potential. To manage these subsidiaries, the company replaces the export
department with an international department. If certain markets continue to be large and
stable, or if the host country insists on local production, the company takes the next step of
locating production facilities in those markets. This means a still larger commitment and still
larger potential earnings. By this time, the company is operating as a multinational and is
engaged in optimizing its global sourcing, financing, manufacturing, and marketing.
According to some researchers, top management begins to pay more attention to global
opportunities when they find that over 15 percent of revenues come from foreign markets.

Deciding Which Markets to Enter

In deciding to go abroad, the company needs to define its marketing objectives and policies.
What proportion of foreign to total sales will it seek? Most companies start small when they
venture abroad. Some plan to stay small; others have bigger plans. Ayal and Zif have argued
that a company should enter fewer countries when:

1. Market entry and market control costs are high.

2. Product and communication adaptation costs are high.
3. Population and income size and growth are high in the initial countries chosen
4. Dominant foreign firms can establish high barriers to entry.
How Many Markets to Enter
 The company must decide how many countries to enter and how fast to expand. Consider
Amway's experience: A company's entry strategy typically follows one of two possible
approaches: a waterfall approach, in which countries are gradually entered sequentially; or a
sprinkler approach, in which many countries are entered simultaneously within a limited
period of time. Increasingly, especially with technology-intensive firms, they are born global
and market to the entire world right from the outset. Generally speaking, companies such as
Matsushita, BMW, and General Electric, or even newer companies such as Dell, Benetton,
and The Body Shop, follows the waterfall approach. Expansion can be carefully planned and
is less likely to strain human and financial resources. When first-mover advantage is crucial
and a high degree of competitive intensity prevails, the sprinkler approach is preferred, as
when Microsoft introduces a new form of Windows software. The main risk is the substantial
resources involved and the difficulty of planning entry strategies in so many potentially
diverse markets. The company must also decide on the types of countries to consider.
Attractiveness is influenced by the product, geography, income and population, political
climate, and other factors. Kenichi Ohmae recommends that companies concentrate on
selling in the "triad markets"—the United States, Western Europe, and the Far East—because
these markets account for a large percentage of all international trade.

Technique of international marketing/mode of entry

Deciding How to Enter the Market

Once a company decides to target a particular country, it has to determine the best mode of
entry. Its broad choices are indirect exporting, direct exporting, licensing, joint ventures, and
direct investment. These five market-entry strategies are shown in Figure Each succeeding
strategy involves more commitment, risk, control, and profit potential
Indirect and Direct Export

The normal way to get involved in an international market is through export. Occasional
exporting is a passive level of involvement in which the company exports from time to time,
either on its own initiative or in response to unsolicited orders from abroad. Active exporting
takes place when the company makes a commitment to expand into a particular market. In
either case, the company produces its goods in the home country and might or might not
adapt them to the international market. Companies typically start with indirect exporting—
that is, they work through independent intermediaries. Domestic-based export merchants buy
the manufacturer's products and then sell them abroad. Domestic-based
export agents seek and negotiate foreign purchases and are paid a
commission. Included in this group are trading companies.
Cooperative organizations carry on exporting activities on behalf of
several producers and are partly under their administrative control.
They are often used by producers of primary products such as fruits or
nuts. Export-management companies agree to manage a company's
export activities for a fee.

1. Indirect export

Indirect export has two advantages. First, it involves less investment:

The firm does not have to develop an export department, an overseas
sales force, or a set of international contacts. Second, it involves less
risk: Because international-marketing intermediaries bring know-how
and services to the relationship, the seller will normally make fewer
mistakes.
Companies eventually may decide to handle their own exports. The
investment and risk sare somewhat greater, but so is the potential return.

2. Direct export

A company can carry on direct exporting in several ways:

  Domestic-based export department or division. Might evolve into a self-contained
export department operating as a profit center.
 Overseas sales branch or subsidiary. The sales branch handles sales and distribution
and might handle warehousing and promotion as well. It often serves as a display and
customer service center
 Traveling export sales representatives. Home-based sales representatives are sent
abroad to find business.
 Foreign-based distributors or agents. These distributors and agents might be given
exclusive rights to represent the company in that country, or only limited rights.

3.Licensing
Licensing is a simple way to become involved in international marketing. The licensor issues
a license to a foreign company to use a manufacturing process, trademark, patent, trade
secret, or other item of value for a fee or royalty. The licensor gains entry at little risk; the
licensee gains production expertise or a well-known product or brand name.
Licensing has potential disadvantages. The licensor has less control over the licensee
than it does over its own production and sales facilities. Furthermore, if the licensee is very
successful, the firm has given up profits; and if and when the contract ends, the company
might find that it has created a competitor. To avoid this, the licensor usually supplies some
proprietary ingredients or components needed in the product (as Coca-Cola does). But the
best strategy is for the licensor to lead in innovation so that the licensee will continue to
depend on the licensor.

There are several variations on a licensing arrangement.

Management contracts

Companies such as Hyatt and Marriott sell management contracts to owners of foreign hotels
to manage these businesses for a fee. The management firm may even be given the option to
purchase some share in the managed company within a stated period.
 Contract manufacturing

In contract manufacturing, the firm hires local manufacturers to produce the product. When
Sears opened department stores in Mexico and Spain, it found qualified local manufacturers
to produce many of its products. Contract manufacturing gives the company less control over
the manufacturing process and the loss of potential profits on manufacturing. However, it
offers a chance to start faster, with less risk and with the opportunity to form a partnership or
buy out the local manufacturer later.

Franchising

Finally, a company can enter a foreign market through franchising, which is a more
complete form of licensing. The franchiser offers a complete brand concept and operating
system. In return, the franchisee invests in and pays certain fees to the franchiser.
McDonald's, KFC, and Avis have entered scores of countries by franchising their retail
concepts and making sure their marketing is culturally relevant.

4.Joint Ventures

Foreign investors may join with local investors to create a joint venture company in which
they share ownership and control. For instance:

 Coca-Cola and Nestle joined forces to develop the international market for "ready-
todrink" tea and coffee, which currently they sell in significant amounts in Japan.
 Procter & Gamble formed a joint venture with its Italian archrival Fater to cover
babies' bottoms in the United Kingdom and Italy.
 Whirlpool took a 53 percent stake in the Dutch electronics group Philips's white-
goods business to leapfrog into the European market.

A joint venture may be necessary or desirable for economic or political reasons. The
foreign firm might lack the financial, physical, or managerial resources to undertake
the venture alone; or the foreign government might require joint ownership as a
condition for entry. Even corporate giants need joint ventures to crack the toughest
markets.
Joint ownership has certain drawbacks. The partners might disagree over investment,
marketing, or other policies. One partner might want to reinvest earnings
for growth, and the other partner might want to declare more dividends (withdraw
these earnings). Joint ownership can also prevent a multinational company from
carrying out specific manufacturing and marketing policies on a worldwide basis.

5.DIRECT INVESTMENT

The ultimate form of foreign involvement is direct ownership of foreign-based

assembly or manufacturing facilities. The foreign company can buy part or full
interest in a local company or build its own facilities.
If the market appears large enough, foreign production facilities offer distinct
advantages. First, the firm secures cost economies in the form of cheaper labor or
raw materials, foreign government investment incentives, and freight savings.
Second, the firm strengthens its image in the host country because it creates jobs.
Third, the firm develops a deeper relationship with government, customers, local
suppliers, and distributors, enabling it to adapt its products
better to the local environment. Fourth, the firm retains full control over its
investment and therefore can develop manufacturing and marketing policies that
serve its long-term international objectives. Fifth, the firm assures itself access to the
market in case the host country starts insisting that locally purchased goods have
domestic content. The main disadvantage of direct investment is that the firm
exposes a large investment to risks such as blocked or devalued currencies,
worsening markets, or expropriation. The firm
will find it expensive to reduce or close down its operations, because the host country
might require substantial severance pay to the employees
 Deciding on the Marketing Program

International companies must decide how much to adapt their marketing strategy to local
conditions.33 At one extreme are companies that use a globally standardized marketing mix
worldwide. Standardization of the product, communication, and distribution channels
promises the lowest costs. Table 21.1 summarizes some of the pros and cons of standardizing
the marketing program. At the other extreme is an adapted marketing mix, where the
producer adjusts the marketing program to each target market. For a discussion of the main
issues, see "Marketing Insight: Global Standardization or Adaptation?"
Between the two extremes, many possibilities exist. Most brands are adapted to some extent
to reflect significant differences in consumer behavior, brand development, competitive
forces, and the legal or political environment. Satisfying different consumer needs and wants
can require different marketing programs. Cultural differences can often be pronounced
across countries. Hofstede identifies four cultural dimensions that can differentiate
countries:34

 Individualism vs. collectivism. In collectivist societies, such as Japan, the self-worth

of an individual is rooted more in the social system than in individual achievement.
 High vs. low power distance. HigJi power distance cultures tend to be less egalitarian.
 Masculine vs. feminine. How much the culture is dominated by assertive males
versus nurturing females?
 Weak vs. strong uncertainty avoidance. How risk tolerant or aversive people are

Advantages

 Economies of scale in production and distribution

 Lower marketing costs
 Power and scope
 Consistency in brand image
  Ability to leverage good ideas quickly and efficiently
 Uniformity of marketing practices

Disadvantages

 Differences in consumer needs, wants, and usage patterns for products

 Differences in consumer response to marketing-mix elements
 Differences in brand and product development and the competitive environment
 Differences in the legal environment
 Differences in marketing institutions
 Differences in administra

Approach international marketing

Rachel Miller explains how to approach international marketing and why it is worth doing
1. Find out if your product will travel. Many UK firms get occasional orders from
overseas - thanks to the reach of the internet. However, should you actively market your
products abroad? Not every product travels well so if you plan to expand into new
territories, find out if your product can be sold widely without having to be adapted.
2. Research new territories. Your experience and the resources you have built up in the
UK means that you're not starting from scratch. But you need to know how to leverage
them appropriately - and that means researching new markets and thinking about issues
such as logistics, order fulfilment and customer service.
3. Assess the size of the market. How big is the market for your product in other
countries? You'll have to see how established it is, find out how many players there are in
that sector and how big the customer base could be. Are there any potential trade barriers
or restrictions?

4. Adapt your marketing strategy. You may have a product that can easily cross borders
but your marketing strategy will have to be adapted. Local values, customs, language and
 currencies will all impact on your marketing plan. Look at your unique selling points and
your branding. Are they right for the new markets you are targeting?
5. Work with local partners. Working with affiliates, partners, distributors, licensees or
agents can help you get established in a new market. Close consultation with business
partners on the ground will ensure that your marketing materials have local appeal and
don't include any mistakes.
6. Check your prices. Pricing is not just about understanding currency differences - you
need to research price levels in each new territory. Your overheads may also be higher so
ensure that your prices take into account the cost of freight and transport, packaging and
agent's commission.
7. Adjust your media mix. The marketing channels you use will vary in each territory. In
some countries, you may rely mostly on social media or online advertising. In other
places, it could be local newspapers, outdoor advertising or radio.
8. Learn local customs. When it comes to customer service, what works in one country
may not work in another due to cultural differences, language and health and safety
regulations. Levels of formality, business etiquette, the way you address them - all these
are issues that could make or break your expansion plans.
9. Get the timing right. Timing is everything. In some places, what you sell may be ahead
of its time, in others it could be seen as out-dated. Is demand for your type of product
already peaking? Or is it just starting to grow?
10. Exhibit overseas. Taking a stand at trade shows abroad is a good way of dipping your toe
in the water, meeting contacts and making your first sales in a new market. It's also a
chance to see what your competitors are doing.
Chapter Three

3. Data analysis, Conclusion and Recommendation

3.1 analysis of the interview related with value chain.

Fitst of all , we express about dashen brewery company departments .it has eight
departments they are 1)production 2) engineering 3) packaging 4) quality assurance 5)
 human resource 6) finance 7) sales and 8 logistic .from these departments, production ,
engineering ,packaging and quality assurance are core or primary
activities(departments). The rest are supportive activities. Based on thes departments to
express in detail as follows as.

As the production and sales department managers said Primary activities are the activities
from the reception of raw materials up to delivery of finished goods and the secondary
activities are supportive for the primary activities. As they said the primary activities
especially inbound and operations add the value to the company as well as the customers.
Generally the values are added when we move from one process to another and the company
primary activities are those below:

1. Inbound logistics
1. Purchasing of raw material(barley, malt and hop)
2. Loading, transportation and unloading automation
3. Warehousing and Material handling

2. Operational activities/production related activities

 Grinding
 Mixing raw materials with water and making ready for Fermentation
 Bottling and branding
 Labeling and packaging
 Pasteurizing

3. Marketing related activities

 Distributing the products: the Company does not sell directly to bars, liquor stores, or
grocery stores. It is the responsibility of the distributor to establish the retail relationship.
Ashen brewery use different agents found in different places to distribute its quality beer
to the ultimate customers and it sets different criteria to select the qualified agents. In
addition to the agents, the company has three main warehouses found in three different
locations. This includes Gondar warehouse, Addis Ababa warehouse and Woldia
warehouse.
  Promotional activities are activities used to introduce the product or services and our case
company uses almost all types of promotion mixes those are advertisement, promotion
and public relation. In the international market they did not applied a good promotion
because their potential market is local countries.
 As they said the company does not engage in after sales service because it produces
consumption goods.

Secondary activities are those of supportive activities

1. Procurement: about the selection of suppliers and the acquisition of raw materials. In
this step the purchasing department selects the potential and capable suppliers. the
company purchases their raw materials from the external market and from the local
farmers.
2. Technology development: currently the factory uses the latest brewery plants and
machines. DBSC uses advanced technologies while designing and manufacturing new
products. The factory has latest equipment that makes its production modern. Among
these equipment: CIP plant-the brewing equipment is cleaned by 4CIP plants using
recovered water, caustic soda, and acid; EBI: removes products that do not fulfill the
standards water treatment plant, C02 recovery plant, Air compressor plant, Cooling plant,
Boiler plant, Conveyor; Casing and uncasing, Crate washer, Bottle washer, Filler,
Pasteurizer, Labeler, Keg plant and others
3. Human resource management:  those are activities related with staffing. They have two
types of employees i.e. temporary/wage based/employees and permanent employees.
Human resource related activities are in light with Ethiopian civil service rules and
regulations. It also uses different motivational methods to maintain and retain employees.
The company has a number of employees from illiterate to highly trend and educated
personnel.
4. Firm infrastructure: they have well-constructed organizational structure having almost
all basic functions. And they used different automations in each activity.

3.2. Interviews related with short term opportunities and threats

As the sales manager said the opportunities, threats and strategies as follows:
1. The key medium and short term opportunities of DBSC are holidays
 2. There is one major factors detect the utilization of this opportunities that is the existence
of competitors
3. DBSC upgrades its strategies in holidays to exploit short term opportunities for example
discount
4. It also makes integration with different private and public organizations so as to
announce the short term discounts in the name of the holiday

3.3. Interviews related with holistic marketing

As the sales manager said, the company practices holistic marketing by integrating all
stakeholders.
1. Relationship marketing: DBSC used relationship based marketing with suppliers and
customers so as to minimize the cost of customer acquisition and supplier selection. The
acquisition of both customers and suppliers requires resources those are personnel
(experts in the selection of suppliers and attraction of buyers), time (most of business
buying process needs time from0.5-1year), money to run the activities and other
overheads.
2. Internal marketing: it also uses different motivational method to satisfy and keep the
safety of employees for example: holiday bonuses, holiday based gift, different
allowances…
3. Social marketing: as the manager said DBSC executes the social responsibility of itself
by sponsoring different public programs and producing environmentally friendly
products.
4. Integrated marketing: it also works with different stakeholders by providing important
in formations to them and receiving from them by using different research and survey for
example about the tests and the alcoholic contents of its product, price, advertisements in
relation to cultures and norms.

3.4. Interviews related with international marketing

The sales manager said that, the entry mode of DBSC is exporting (indirect exporting or through
agents). As we have written in our literatures exporting through agents is an indirect
exporting because they do not take the ownership of the product.

There are two forces that push DBSC to inter in the international market:
1. Government influence: it is mandatory to the manufacturing co. to participate/ involve in
the international market and at least 25% of its products must be exported to the
international market.
2. To compete with its competitors our competitors are not only domestic brewery factors
but also international brewery factories

Conclusion of the project

 As Michael porter value chain processes, DBSC`s Primary activities are the activities
from the reception of raw materials up to delivery of finished goods and the secondary
activities are supportive to the primary activities.
 The key medium and short term opportunities of DBSC are holidays. There is one major
factors detect the utilization of this opportunities that is the existence of competitors.
DBSC amends its strategies in holidays to exploit short term opportunities for example
price discount. It also makes integration with different private and public organizations so
as to announce the short term discounts in the name of the holiday.
 The company practices some of the holistic marketing dimensions by integrating
stakeholders and it does not fully practice societal marketing.
 The entry mode of DBSC is exporting (indirect exporting or through the agents of the
company).

The gaps in the organization

 As we observe the factory, there are many gaps that they should observe so as to compete
in the current international market.
 The company selects indirect export method as the only means to inter in the international
market
 The company does not execute all the social responsibilities for example: wastage
disposal system affects the community around it and affects the environment and results
the pollution of air, subterranean water and soil.
 As the sales power of the company and the customer’s response in the last few years
shows the company does not exercise relationship marketing on customers’ side because
of many factors. As we know their participation in social activities, the company
overlooks that their neighbors, the community around the town and all Ethiopians are their
potential customers.
Recommendation

In the analysis of the company’s entry mode, its mode of entry is indirect export but
there are other types of entry modes that will make the company beneficial for
example oversea manufacture: this type of entry mode is the best entry mode for the
companies having strong financial position like DBSC, to exploit local resources, to
standardize their product and to compete with their competitors and in total to exploit
the advantage of international marketing.

 The company did not conduct any powerful advertisement in external markets that it
trades. So if it provides powerful adverts in the external market it will increase its sales
volume.
 As the communities around the factory said and as we observe the companies waste
disposal system it is not environmentally friendly so it is better to treat its wastes before
disposal or use other method like reusing of wastes in the form of lees. These will create
a good relationship with the communities around it.
 For business organizations participation of the companies in charity organizations and
social activities is more power full than any types of advertisements within the local
market. We recommend the company to highly involve in social activities to improve
their sales and their good will.
Reference:

 Philip kotler and Kevin lane keller, marketing management,12E prentice

Hall,----,p669-86