Heavy Water Vodka: flawless purity and award winning design

Abstract

This thesis presents the findings from an explorative research study of the Chinese vodka market. The research has been conducted on behalf of Heavy Water International, a Norwegian vodka producer. Heavy Water International believes that the vodka market in China has considerable growth potential the next 5-10 years, and wants to enter the Chinese vodka market within 2008. Their first goal is to establish a good distributor-connection and create brand awareness. Heavy Water Internationals selected target cities are Shanghai, Beijing, and Hong Kong, but the author s limited resources required us to concentrate the research in the Shanghai market.Structure This thesis is divided in nine chapters. The first chapter is the introduction chapter where Heavy Water International and the research aim are presented, followed by the research methodology. This chapter, (second Chapter) explains the particular methodology that we have used, and why we have used it in this thesis. The third chapter is the theory chapter, which explains the motivation behind the theory and models used. In the fourth chapter we present all the relevant data that has already been written by other authors about this subject. The fifth chapter presents our primary data findings collected from our in depth interviews. In the sixth chapter we present our strategic analysis. In this part we use the primary and secondary data to analyze the internal and external factors of Heavy Water International and the Chinese vodka market. This is followed by the marketing mix, and a SWOTanalysis to analyze our findings and weigh them to find their importance. After the SWOT-analysis we have defined a strategic problem definition, short and long term goals as a foundation for critical success factors for Heavy Water International. In the seventh chapter we come with a conclusion and a recommendation that answers our strategic problem definition. The references are compiled in chapter eight followed by chapter nine which is the appendix. IV Findings The findings in this thesis indicate a growing Chinese vodka market in the future. According to our findings vodka based drinks will become more popular, as the younger Chinese generation (25-35) are adapting to western drinking trends faster than the older generation. The common belief that westerners are the trendsetters and, opinion leaders that the Chinese follow, is over estimated. Our findings suggest that the Chinese prefer to see themselves as opinion leaders, and feel that they are the focus. Locally respected Chinese should play a role in Heavy Water Internationals marketing strategy. Our findings told us that high price symbolize high quality for the Chinese consumer, and that they are generally eager to show off their wealth by having expensive bottles and fireworks at their tables. Heavy Water International should plan a brand launch event when entering the Shanghai market. We also recommend them to have one event party every month to keep interest for the brand peaked. By arranging event parties together with other famous luxury brands, Heavy Water Vodka may further strengthen their luxury brand status. Our research shows that the following places are particularly suited for Heavy Water Vodkas high-end profile: • The exclusive bars, clubs, hotels and restaurants in downtown Pudong, Xintiandi (French concession) and The Bund. • Exclusive clubs (gentleman clubs, golf clubs and yacht clubs) • Exclusive wine & spirit boutiques The biggest weaknesses are Heavy Water Internationals lack of market knowledge, combined with their limited resources, and the fact that the Heavy Water Vodka brand is not recognized among Chinese consumers.