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For inquiries, please contact:
Jonathan Tang
Tel: +8610 8518 8552
Fax: +8610 8518 6800
jonathantang@ckgsb.edu.cn
Cheung Kong GSB
Oriental Plaza
1 East Chang An Avenue
Beijing, 100738
China

At present, Tsingtao Beer's US market share is less than a tenth of a percent. Despite having a presence in the American beer market for over 30 years, Tsingtao Beer's major consumers remain customers who eat at Chinese restaurants or shop at Chinese supermarkets. Additionally, many US beer consumers believe the taste is too light, and are attached to another beer brand. Finally, given the latest rash of product safety scandals in China, many US consumers link Tsingtao Beer to 'low-quality' Chinese Commodities- an unsurprising connection, given past marketing activities that have emphasized Tsingtao Beer's connection to Chinese-made products like chopsticks, and Chinese traditional culture. Additionally, Tsingtao Beer faces new competition from other Chinese beers like Yanjing that are trying to build their US market share, and have already established themselves in the Chinese restaurants and supermarkets where Tsingtao Beer was previously the dominant brand. Finally, Tsingtao Beer has no production base in North America, and so export tariffs and transport expenses make the cost of its beer higher than most of the competition.

Significant opportunities exist, however. In connection with the rapid economic development of Asia in past decades, Asian brands and commodities are becoming more and more popular for American consumers. Tsingtao Beer's relatively weak sales and distribution network in North America has much potential for improvement; its North American agent, Barton Beers, has significant experience in performing agent services for important beer. Finally, Tsingtao Beer might be able to somehow leverage its current strategic partnership with Anheuser-Busch, the dominant company in the North American beer market.

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