A related question: Would you conclude that Grolsch’s current geographic presence internationally accurately reflects global opportunities for them? Be specific. * Grolschs’ current geographic presence reflects the global opportunities and currently represent the best opportunities for the company. * Grolsch has primarily focused on developed markets such as the UK, US, Canada, Australia, New Zealand, and France. * Grolschs’ key markets mainly consist of Western Europe, which accounts for 88% of its revenues, and 94% of its contribution margins. * Grolschs’ sales in the Netherlands accounted for nearly one half of its total domestic sales. * Though Grolsch was previously sold in Russia and Poland, the Asian Financial crisis resulted in the devaluation of the ruble in Russia which led to Grolsch to focus on developed markets again. * Since then, the Russian market has recovered from the financial crisis, it can be inferred that countries such as Russia have a market for luxury goods. * Perhaps through re-introducing the Grosche brand, it can be inferred that a premium beer would be successful in such a market.
Though Amsterdam is a non- luxury brand, it could possibly be sold in areas such as Latin America as it is assumed that lighter beers are more popular in these areas as compared to brands such as Corona. * Grolsch has decided to focus on developed markets which is a novel idea considering it will bring the brand the most profit. Developing nations would not be able to maintain a premium brand as most consumers may not be able to afford the high price tag, which coincides with increased brand quality. * Despite Grolschs’ success in developed nations, I think that they may need to reconsider distribution among several countries such as Russia and Poland. * Grolsch may also seek to consider various new marketing strategies which could aid in better overall global marketability. Though the Grolsch name may be well-known and accepted by the Dutch and within Europe, the name can sound rather unpleasant to some, and way not resonate well among consumers as say Heineken or Corona. Companies often underestimate the power of a strong brand name which fosters brand loyalty and in turn increased sales.