The beer industry in China is undoubtedly a very successful industry in the country and this is due to the high sales that the industry registers. Thus has led to the growth and development of the companies that deal in the alcohol products proving the need to develop the industry and engage in the development of the products and services in the wines, spirits and beer industry (Herault et al., 2006, p129). It is in this manner that proves the need to ensure that need to analyze the players in the beer industry and identify the challenges that they experience and formulate solutions to the challenges that affects the industry. The plan of the Agricultural Produce Market Committee (APMC) to establish a long-term business presence in the drink industry proves to be a matter of great concern and this is because of the large number of customers in the industry that requires analysis in order to ensure that the business commitment becomes successful and that the objectives of the business are met (Duflot et al., 2005, p195). This requires the formulation of an extensive business plan that takes into consideration all of the issues that relate to the drink market and takes analysis of the dynamics of the industry.
Business Markets and Customer Relationship Management
Planning For the Types of Customers in the B2B Market
In the analysis of the drink industry, there are various markets such as beer market, the wine, spirit, Cider and the high-strength premixes market. Analysis of the customers in the various types of markets in the drink industry reveals that the biggest consumers of beer are the aged individual above the age of 45 and thus is because of the tag given to beer in that it is used for socializing. The young generations on the other hand take a bigger percentage in the drinking of spirits while wines and the Cider are mostly used by the affluent in China (Zeng,et al., 2013, p674). This is because of the high price of the wines and the Cider that a bigger proportion of the society finds to be expensive and a reserve for the rich. The interest that APMC has in the acquisition of the beer market requires proper engagement with the relevant age groups that would help in the maximization of profits and revenue. APMC needs to venture into the promotion activities that would attract the aged to increase beer consumption, the youth for the spirits and the rich for the wines and the Cider.
There are various implications of having different types of customers in the different target markets and one of them is that there is the challenge of deciding on the promotion strategies that help in promoting the products to the designate customers (Lau et al., 2016, p123). Secondly, there is the challenge of deciding on the ingredients that are used for the production of each brand and this affects production mechanism.
Planning the Nature of Buyer-Seller Relationships in the Target Markets
The different types of buyer-seller relationships are due to the various factors that affect different types of buyers. The buyer-seller relationship in the beer market is due to the interest in the development of socialization while the buyer-seller relationship in the spirit industry is casual and this is due to the focus that the customers in the market give to the personal interest and the much focus on the drunkenness (Duflot et al., 2005, p196). The buyer-seller relationship in the wine industry proves to be the strongest and that which is built on trust and this is due to the confidence that the customers and the buyers must build in order to ensure that the clients get products of high quality and which meet their demands.
The effects of the different types of the buyer-seller relationships in the various target markets help the organizations to expand the business opportunities because it helps in the building of the confidence of the customers in the various products for the different customers in the target markets.
Organizational Buying Behavior
In order to match APMC strategies with the purchasing function of the market, there is need to analyze the prices of the products and ensure that there fairness in the products that are offered to the customers. This is because the products that the organization offers to the customers need to conform to the recommended prices and that there should not be any form of exploitation of the customers. The purchasing function needs to streamline the effect duties of the intermediaries in the process of selling of the products. In this manner, there is need to ensure that the prices at the manufacturing extremely low (Herault et al., 2006, p131). The implication of matching APMCs strategy with the different types of customer purchasing in the targets markets is that there is need to reduce the profits of the producers and the dealers of the products to ensure that the customer get the products at the recommended prices.
Planning for APMC selling with the decision processes of organizational buyers in different buying situations
The selling that are required for the different types of the buying situation requires that all the products be assembled at a market yard and then distributed to the wholesalers and finally to the retail stores. This is the case, the geographical states and the markets provide the avenues through which the customers engage in the purchase of the products at different places in the state. The traders are required to produce a license in order to trade and this means that there is no avenue that allows for the wholesale and retail trader s to purchase directly from the junior producers (Zeng,et al., 2013, p676). There are challenges that are imposed by the APMC and one of them is the delayed payments of the traders and this discourages the traders in the course of the business. Additionally, traders might deduct some amount and put the excuse that they have not received any payments. This leads to lack of confidence in the business operations.
The APMC strategic perspective is to empower the society by engaging helping the traders and the manufactures to have a strong financial background that helps in the promoting the processes and the business activities. This fosters development of companies and helps in the fulfillment of organizational goals in the modern dynamic markets. By lending to the traders, APMC helps in controlling cartels which then helps to improve the quality of services and products offered in the society (Duflot et al., 2005, p197). APMCs engagement in the drink industry in China would help to streamline the operations in the sector promote fair business practice among the major players in the industry. This seeks to protect the rights of the customers and prevent any form of exploitation in the setting.
Herault, T., Lassaigne, R. and Peyronnet, S., 2006, September. APMC 3.0: Approximate verification of discrete and continuous time Markov chains. In Quantitative Evaluation of Systems, 2006. QEST 2006. Third International Conference on (pp. 129-130). IEEE.
Duflot, M., Fribourg, L., Herault, T., Lassaigne, R., Magniette, F., Messika, S., Peyronnet, S. and Picaronny, C., 2005. Probabilistic model checking of the CSMA/CD protocol using PRISM and APMC. Electronic Notes in Theoretical Computer Science, 128(6), pp.195-214.
Zeng, Y., Douglas, T.J. and Wu, C., 2013. The seller's perspective on determinants of acquisition likelihood: Insights from China's beer industry. Journal of Management Studies, 50(4), pp.673-698.
Lau, C.K.M., Lin, Z., Boansi, D. and Ma, J.K., 2016. The Lack of Market Integration in the Chinese Beer and Wine Markets: Evidence from Stationarity Test. In Brewing, Beer and Pubs (pp. 123-144). Palgrave Macmillan UK.
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