bulgaria beer business

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The Project of International Marketing Turkey to Bulgaria Beer

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  • 1. Turkey to Bulgaria Beer

2. Introduction Beer is a type of alcoholic drink. Ingredients in the beer: Cereal, especially the method of fermenting the barley malt is produced, water and usually contains hops. Beer is the most consumed alcoholic beverage and the third most consumed beverage after water and tea.Bulgaria is the country in the Balkans. A surface area of 994 square kilometers, it is the 16th largest in Europe 110 thousand country. Balkan, Rila and Rhodope mountains, such as the surface determines the way. Rila is the highest point on the Musala peak in the Balkans. 3. Important indicators from Bulgaria State Name: Republic of Bulgaria Capital: Sofia Government: Parliamentary Republic Official Language: Bulgarian Religion: Christian (majority Orthodox) Currency: BGNIs a member of international organizations: the EU, NATO, UN, IMF, WTO, World Bank Annual Average Exchange Rate: Leva/Dolar-1, 37145, Leva / - 1.95583 Area: 110 993 km2 Population: 7,351,234 Woman: 3770897 Male: 3,580,337 Annual population growth (%): - 0.46 Population density (people / km ): 66.23 After-Hours and Days: 9:00 to 17:30 - Monday to Friday Big Cities, (if Ports): Sofia, Plovdiv, Varna (port), Bourgas (port), Ruse (port), Stara Zagora, Pleven Turkey and Time Difference: None Weekly Work Hours (Average): 40 Public Holidays: 1 January - New Year's Eve March 3 - National Day (Bulgaria, the departure of the sovereignty of the Ottoman Empire) 4. Important indicators from Bulgaria Average Life Expectancy: 73.43 School of Higher Education: 53 Number of students in higher education: 281,170 Hospital: 312 Number of People per doctor: 268 Number of Tourist Arrivals: 4227519 Outgoing Tourist Number: 841007 Educational Expenditures / GDP (%): 3.3 Health Expenditures / GDP (%): 3.9 Road Length (km): 19298.6 Motorway Length (km): 347.2 Rail Length (km): 7349 Annual Per Capita Electricity Consumption (kWh / person): 4117 Minimum Wage: 123 EUR (240 Leva) 5. Investment Incentives and Support Organizations Investments in large-scale investments in Bulgaria provide by Bulgaria Agency, medium-and small-scale investments are in support of the Bulgarian SME Development Agency in certain ways. Agricultural producers support by the Ministry of Agriculture and Food. Bulgarian SME Promotion Agency employing up to 250 people, an annual turnover of 49.85 million Euros (97.5 million leva) and non-current assets do not exceed a maximum of 42.95 million Euros (84 million leva), which supports companies. The basic functions of the agency, is information (legislation, economic indicators, trade claims, statistics and so on.) And consulting (tax, project development, customization, requirements, etc.). 6. Incentives The unemployment rate in Bulgaria for investments in regions with an average unemployment rate of over 35%, or social insurance payments deposited into capital, provided that there are 5-year corporate income tax exemption; Collaborative with research centers and universities, R & D expenditure the reducedtax base; Depreciation methods, computers, software and equipment for the new production will be canceled out in the second year; 5 million Euro investment projects to be imported on the machine / equipment is provided for the exemption from VAT; Capital transfers are free. 7. The following is the Special Consumption Tax in various proportions goods: Alcohol and alcoholic beverages, Tobacco products, Energy products and electrical energy. 8. Free Trade Zone Bulgaria has 6 free trade zones. All the zones arelocated at strategic transport hubs to facilitate speedy transportation to international trade routes to neighboring countries. Free trade zones are located at the ports of Vidin andRuse. Another FTZ is located on the Bulgarian Serbian border and one on the Turkish - Bulgarian border and another in the Plovdiv region. Plovdic is the second largest city in Bulgaria and has an independent airport. The sixth FTZ is situated at Burgas beside the largest Bulgarian Black Sea port. 9. Beer has an important effect on Bulgaria economy. We can divide 3 main titles. These are: Direct contributions, the indirect impact supply and retail, tourism / entertainment sector. Direct contributions, beer manufacturers provide direct economic contributions of Bulgaria. When we look Indicators these are production inputs. Water, agricultural products (hops, malt and malting barley) and bottles, cans, and so on. Packing materials are included. In addition, breweries engineers, marketers, and so on. Staffing, communications agencies and is a wide range of different services. 10. Economic Environment Bulgaria's GDP in 2012 reached 39.7 billion euros, 20.9 billion exports, 25.6 billion euros of imports. Bulgaria's economy grew by 1.7% in 2011, real growth of 0.8% recorded in 2012. In 2012, per capita income is 5.436 Euro in Bulgaria and inflation rate is 3% the unemployment rate is 12.4%. The income of 3.78 billion euros from privatization in 1993-2012 are described. 11. First 10 import countries in Bulgaria Russian Federation Germany Italy Romania Greece Spain Turkey Ukraine Austria France 12. First 10 export countries in Bulgaria Germany Romania Turkey Italy Greece Belgium France Gibraltar Spain Russian Federation 13. Shipping ChargesTurkey to Bulgaria high way is the cheap and easy way. 7 Road Distance: 562 km = 349.3 miles. We will send from stanbul, Turkey to Varna, Bulgaria. Our factory and ware house in Beylikdz. It is good location for transportation factory to destination. We use truck we have an agreement with Unkar Logistics. Beylikdz to Varna trucks pass from customs. We use outsourcing and Unkar logistics helps us factory to destination. Our distribution policy is intensive distribution. Because our products are convenience. 14. Demographic Environment The population of Bulgaria: 7 327 224 .(1 January 2012) Age structure: *0-14 years: 13.2%*15-64 years: 68.3% *65-over: 18.5% Education: Over 98% of the population is literate, the males being more literate than the females. Religion 2011 Orthodox Christian 59.4% Muslim 7.8% catholic 0.7% Protestant 0.9% other 0.15% none9.3% No Response21.8% Ethnic Groups: Bulgarias, Turks, Romani, Russians, Armenians, Vlachs, Sarakatsani, Ukrainians, Macedonians, Greeks, Jews, Romanians, Tatars, Gagauzes. 15. Products Specific Research 16. In Bulgaria, consumption of alcoholic beverage is very high especially in beer. The table is below shows that; recorded adult (15+) alcohol consumption by type of alcoholic beverage in Bulgaria in 2011. The beer have 32% consumption rate in Bulgaria. 17. Market Segmentation, Target Market and Positioning Demographic segmentation: Between the ages of 18-45, Man and woman ( especially man), The people who graduatedfrom high school and university, The people who have normal or above the level of income. 18. Psychographic Segmentation Urban and modern mass, The people who likes to be different, The people who like to try different flavors, The people who love to drink beer outside pubs and bars, The people who believe that beer is different from other alcoholic beverages. Positioning: Our products cater to all customer taste. But we are different from different from other beer companies. Because our products are not classics beer. We produce beer with fruit flavored. 19. Marketing Mix Strategies Products Characteristics: Peach flavored beer: This beer includes; barley, hop, water, yeast and peach flavored. Alcoholic strength is %5. (or non-alcohol) Ginger flavored beer: This beer includes: barley, hop, water, yeast, and ginger flavored. Alcoholic strength is %6.1. (or non-alcohol) 20. Product life cycle stage Our product in maturity stage. Because of that we use low price strategy and market penetration strategy when entering the market which we choose. 21. Pricing Strategies: We use the penetration strategy when entering the market of Bulgaria. Because our products are not innovative. Also, we want to penetrate the market and there are thirteen breweries in Bulgaria, four of which are owned by InBev, two by Carlsberg and two by Heineken. Local breweries include Bolyarka, which makes a range of lagers, and distributes the Warsteiner brand in Bulgaria. Due to the fact that; we will implement low price strategy in order to able to compete the competitors. 22. - Beer consumes a lot in Bulgaria. So we can sell and earn money. - Turkey and Bulgaria close geographically so it means easy logistics networks - Diversified in terms of production. Our beer with fruits. - Using of good grade and high quality raw materials - Giving emphasis to marketing and after-sale service which was a principal policy of its parental company. - Our beer fit for Bulgarians and also different culture and taste 23. - It is new brand. - We have so many competitors - We produce only beer no other alcohol beverages 24. - Entertainment sectors has been developing and newbars opening - The rate of economic growth was increased in compliance with the economic boom - Capitalize on the rising popularity of soft drinks and flavored alcoholic beverages. - Focus only beer sector and new market for fruits beer. - Changing consumer preferences. 25. - Increase in drunk and drivers age - Economic conditions, exchange rates, tax increases, tax etc high degree of dependence on imports and exports. - Health conscious consumers increased. - Bootlegging. - Fake drink manufacturers