Abstract
Desperados is a famous brand in countries such as France and Germany; the brand is now trying to grow internationally by entering the Spanish market. The beer Spanish market is a very favorable market for a product like the Desperados beer. The total beer market represents 19 billion Euros in 2008, growing at 3% per year. The beer market in Spain despite of its large total is still in the growth phase of the product lifecycle representing big opportunities for companies willing to enter it.
Moreover the size of the market is increased by the number of tourists visiting the country each year as Spain is the second most visited country in the world. With this arrival of tourist during the summer period the beer market is suffering a deep seasonality.
There are several types of beers sold in the Spanish market: classic beers, special beers, dark beers and extra beers. These types of products are aiming at all the segments of the Spanish population, but the special beers segment which includes the Desperados products is the most growing one. Desperado must target the 25 to 35 years old segment as it is the segment of the population who spends the most on socializing with a reasonable income.
In terms of environment analysis, Spain is a good country to penetrate as the political system is stable; the country is also a member of the European Union, the Euro zone and the Schengen agreement which eases commercial relations within member states.
For the legal environment, the legal age to drink alcohol beverage is 18 years old, which is quite low compared to other countries (ex: USA), and enlarges the target market. Spain also has a good technological environment with all the required infrastructure to run a business and easy connections with on the Spanish European states.
In terms of environment, the negative sides are the actual economical situation of Spain, as the country entered recession, but the purchasing power is still high with a minimum wage of 800€ per month. The other negative side is the fact that Spain is in a full demographic crisis with a dramatic decrease of the birth rate, for the moment balanced by the immigration rate.
The Spanish beer market is controlled by three main actors who are: Heineken, Mahou San Miguel and Damn. These competitors for Desperados have several competitive advantages, the strongest being: their brand image, awareness and recognition. So, Desperados has to create its own brand image who will match its target consumer's interests.
