Brand Extension and Marketing Strategy for Bennet Distributors in China

Bennet Distributors is an alcoholic beverage selling company whose primary focus is on improving the brand image and convincing the consumer perception considering the quality of its products. The company serves over 7100 clients in the country and sells a massive amount of 41 million bottles of beverages annually to the crowd. It is a member of Amber Beverage Group and has been in operation since its creation in 1991. Bennet Distributors has majorly focused on maintaining a reputable brand image and aims to extend its operations in international markets. Currently, in the stages of global marketing, the company is at an international level where it supplies from Lithuania its products to several countries globally. The report below is a market expansion strategy that will help Bennet Distributors to extend its operations in the Chinese market to meet the growing demand for quality alcoholic beverages.

Strategic Orientation of Bennet Distributors

Identifying the mission statement is essential for every company before planning and executing an extension into new markets. Acknowledging the course of purpose will help the business know what strategies to apply to penetrate the intended market. In addition, the company will identify essential aspects it needs to focus on to ensure that its brand image remains relevant and attractive in the target market. Bennet Distributors’ objectives include maintaining a good relationship with its stakeholders, encouraging innovation, promoting corporate social responsibilities, and providing quality products (Ahmed et al., 2020). These objectives help the business create a continuously sustainable market operations strategy and allow it to formulate activities and programs to run its operations. Businesses with straightforward goals encounter swift market control since they know what they require to control their authority and overcome competition from other existing firms.

The mission statement for Bennet Distributors emphasizes the importance of the company to alcoholic product consumers. It states that Bennet Distributors seeks profitable growth by offering the highest quality products to the Lithuania beer drinker. The mission statement is clear about the company’s direction and main focus. It narrates how the company may achieve its high profits (Ahmed et al., 2020). The company has to satisfy its local customers to grow sales and increase the profitability margin. A clear mission statement provides satisfying information about Bennet Distributors’ intentions for its future and empowers employees with a positive attitude that affects the company’s growth positively. The mission statement is a critical aspect of the business since it creates a sense of direction and impacts the decision-making processes for all the stakeholders to ascertain the company’s growth.

Selection of Foreign Market for Operation: Brand Improvement Using Competition and Customers as the main components of the 5 C’s Model

Various critical components determine a business’ beginning process. These factors affect decisions concerning the business’ operations strategies and influence how businesses decide their production area. When starting or extending operations in a new country, a company’s main reasons may be the 5 C’s: customers, companies, competitors, collaboration, and climate (Dorsey, 2020). Every corporation must contemplate these factors to ensure an effective transition into the market. The 5 C’s helps the company determine its methods to penetrate the targeted market and make the most profitable sales. The 5 C’s are critical since they help the business set standards and objectives for its operations. The decisions that the management settles on greatly rely on how it utilizes the importance of the 5 C’s. The research below analyzes the importance of competitors and customers and how they impact business prosperity.


Bennet Distributors should understand China’s market structure before entering the gap. Gleckes, Harbin, Reels, and Snow beer are some companies that Bennet Distributors will face in the new market. These companies compete in the market and create an enabling environment to understand consumer demands. Snow beer is the most competitive brand in the Chinese market; hence Bennet Distributors should understand what strategies to incorporate into its production process (Dorsey, 2020). An immense understanding of the competitor’s strengths and weaknesses aids the new company in incorporating new ideas into its operations to obtain a competitive advantage over its rivals (Minkoy & Kaasa, 2021). An aggressive competitive advantage, in addition, will equip the firm with new ideas that may improve the brand image and attract new customers. High competition between the firms creates a name for the new brand and convinces people to consume their products. Competition is essential for the company since it pushes the demand for better quality products and affects the price determination. Therefore, it is crucial for the business to critically evaluate competition in the target market.


Customers consume the products supplied in the market, hence analyzing their demand and preference levels. Bennet Distributors must utilize the current statistics about the consumption of alcohol in the Chinese markets. Thus, the business should understand the importance of consumer preference on their brand’s growth. The current information about consumer demand indicates why most customers prefer the existing rands in the market. Therefore, Bennet Distributors’ management will make important decisions that will affect its sales. The market penetration level will be determined by the company’s understanding of its market structure. A better experience for the customers creates an effective marketing strategy and incorporates the company’s decision-making processes into market control (Dorsey, 2020). Bennet Distributors must conduct market research to evaluate actions that it may use to convince customers to try its products. Meeting the consumer demands helps the business identify gaps that the current companies in the market do not consider in their sales. In addition, the company will create a reliable relationship with their customers and meet their needs.

China as the New Target Market for Bennet Distributors

The best international market in which Bennet Distributors may extend its operations is China. China has a youthful generation that creates a suitable demand for alcoholic beverages. Bennet Distributors mainly targets men between 21 and 40 years. The company targets the population because they are the most ideal for consuming alcoholic products. First, the beverages have a reduced medical impact on their health since the group is strong (Dorsey et all., 2020). The danger that the group faces from the products is an addiction which may be handled through civil education and strong advertisement to controllably use the product. The business enjoys a considerable market base since China’s demography supports a youthful male generation that may use the products as self-realization strategies after work (Pauceanu et al., 2018). Bennet Distributors hence stands a great chance to expand its operations in China. Men are the primary market for Bennet Distributors’ products since social-cultural beliefs in China allow the group to use the items.

Political Factors

Another factor to consider while joining a new market is the political structure of the constituent country. China has excellent economic policies that facilitate the expansion of new businesses in the region (Marquis & Quiao, 2020). The Chinese government provides a sustainable business environment for commercial and entrepreneurial investments. Tax breaks, grants, low-cost government loans, and subsidies are some of the formats that the government uses to establish a favorable environment for the operations of new businesses (Memon, 2021). The political stability in China has fabricated conditions that facilitate effective entrance into the market. Hence, Bennet Distributors is readily favored by the current government and thus may penetrate the market quickly.

Legal Factors

Legal factors are other factors that the business should consider while joining the new market. In China, the regulatory laws are clear, and companies have to get licenses from authorities before initiating the production processes (Pauceanu et al., 2018). They identify with the local laws and use them to their advantage to ensure that they excel in their operations and protect all stakeholders from occurrences of losses. In that case, the Bennet Distributors must work in line with local legal advisers to ascertain that they meet the required legalities to continue operations in the markets and establish their position.

Economic Stability

Besides, the company must consider the economic stability of the country. Economic activities determine the strength of the currency hence making the market reliable. Additionally, financial stability affirms that the business is not likely to face severe economic issues that may result in bankruptcy and other losses. China has experienced economic growth in recent years, making it the most significant financial hub (Krizanova et al., 2019). The expansion of technology within China has accelerated economic development by providing companies with enough production cost-saving strategies. The incorporation of updated technology by companies declined the amount of human labor required to create a substantial unit of products in a single period. Continued expansion of the economies will promote the identification of new products that meet consumer demand (Marquis & Quiao, 2020). Hence, the new firm in the market will experience a transformed economy that will boost its product quality.

Lifestyles of International Customers

There are different strategies that Bennet Distributors may use to meet its objective of penetrating the market with full force. The business may rely on three essential aspects to determine the most effective marketing strategies. The plan of action determines how the company conducts its operations and market positioning (Pelau and Pop, 2018). Marketing aids the company in evaluating different strategies it may incorporate based on consumer demands. In its activities, the business’s system is based on netnography, trend hunting, and trends and technology analyses. Netnography defines the different ways that a company uses to spread information about its products and opportunities through online media platforms (Whalen, 2020). It is essential to use the method since it attracts a broad audience of the targeted group. A vast population of middle-aged Chinese men is registered on online platforms where they access information. Netnography aids the business in reaching the people at the appropriate time and helps select the most proper methods to sell the products to the desired buyers.

One of the netnography patterns that the Bennet Distributors may use to promote its product to its recipients is social media platforms to advertise its entrance into the market. The use of social media platforms such as Facebook, Twitter, and Instagram, among others, is cheap and reaches a broad audience of potential customers within a short timeline (Whalen, 2020). The business will thus enjoy cost-effective brand awareness strategies to increase its identification with the market (Memon, 2021). Bennet Distributors should offer extensive information about its penetration into the market using its website. Furthermore, the use of social media platforms and the website by the company promotes fast communication and response with customers hence identifying the strengths in brand promotion.

Trend Hunting

On the other hand, trend hunting helps businesses acknowledge the most recent technological innovation to facilitate their effective production technology. Identifying new technological advancements eliminates old and costly production means by enabling easy management of the production processes. Bennet Distributors should use trend hunting to track its competitors and locate new market gaps (Lim and Maglio, 2018). Trend hunting uses innovation, creativity, and prediction to solve the market’s possible threats and identify new opportunities. Some of the dangers that the business needs to track using trend hunting are competition from other pioneer brands in China. Identifying the market appearance using the process helps the company know the possible opportunities to enhance the brand image and positioning.

Trends and Technology Timeline

Conversely, the business may identify the trends and technological advancements in the industry of the Chinese market. Trends and technology timelines include using artificial intelligence to run most of the business and production activities. Artificial intelligence is appropriate for use by Bennet Distributors because it eliminates inefficient activities like a failure in resource management. Artificial intelligence also eliminates some inappropriate costs that arise from human knowledge (Minkov & Kaasa, 2020). The accuracy in the production process increases, whereas minimal issues of concern like accidents decline during operations. Another method of technological upgrade that Bennet Distributors should use is the application of machine learning to control brand information and facilitate invention and creativity. Thus, the business should better use trends and technological timeline changes to increase efficiency, innovation, and the brand quality of their different products.

Lifestyles of International Customers

Hofstede’s model betters the company’s understanding of the different cultural activities across the various countries and discerns ways that the management within different cultures runs businesses. The model programs the management’s thinking to distinguish other groups of consumers, effectively persuading them to shift to the new products in the market (Minkov & Kaasa, 2020). Power, identity, and gender are the primary basis that Bennet Distributors should utilize to understand the nature and culture of Chinese beer consumers. The company must consider how the people identify and relate to the idea of introducing their products into the international market. The interaction between the consumers and the products determines whether the business impacts the distribution market. Bennet Distributors must surrender truthful information to their customers and pay attention to their suggestions. Understanding the consumer demands

Gender Selection

Gender-based market segmentation is critical for the business since it helps the management to discern different strategies it may use to promote the brand structure to suit the identified gender market. The target market for the Boston Beer Company products is primarily male-based. Determining the gender that the company targets enact the use of favorable elements that do not affect the genetic composure of the customer (Ahmed, 2020). The company knows what proportion of nutritional elements to use in their products to avoid interfering with the hormonal balance in the company. Gender selection is essential for many businesses since it determines the composition of its products.

Power Control

Power in the Chinese market affects the structure of the business and how it runs its operations. Power distribution affects the company’s confidence in running its operations. The closer the relationship between the firm and different government institutions determines how many government incentives the business acquires. The poser distance index, furthermore, determines the structure of the company and whether its acts as a monopoly or not. Hofstede’s model is critical for business penetration and success in the desired market.

Brand Extension and Foreign Market Strategies

A line extension is a brand growth strategy that businesses use to enlarge the consumption of their products in the market by increasing their variety of them to the consumers. Expanding the product line attracts customers who are tired of consuming the current types by enticing them with new ones (Ahn et al., 2018). In addition, the process attracts potential customers that love the brand but do not consume the current line of products for unique reasons. Brand line extension programs engage more users of alcoholic products hence increasing the sales that Bennet Distributors make. The business should undertake solid market research to understand consumer preferences and identify new ideas it may incorporate into its production line to widen the variety it provides to the buyers. The product line is essential for a brand to identify with a specific market.

Brand Extension Strategy

Brand extension is another market extension that a business may employ to possess external markets. It involves creating more supplier sites like wholesale stores to create an extensive outreach to the potential customers. The brand extension consists of using the currently grown name and image to advertise a new product they introduce to the market. The strategy is essential for businesses with previous products to build a new product image and control the advertisement costs (Ahn et al., 2018). Brand extension minimizes the amount of capital that a business requires to pay for awareness creation from scratch hence the strategy is critical for all businesses.

New Brand Strategy

A new brand strategy is when a firm creates a unique marketing brand to join the retail with a new item simultaneously. The format is costly for most companies since it requires separation from other products, requiring a unique investment in the advertisement, sales personnel, and manufacturing (del Barrio-García, S., & Prados-Peña, 2019). However, despite the enormous costs that the business incurs in the process, the results may be most influential since the higher the risk, the more the benefits.

Flanker/Fight Brand Strategy

The final market extension strategy that Bennet may use is the flanker or fight brand strategy. It is where the company previously in control of an existing product in the market introduces an item of a similar category for the buyers to consume. Flanker brand strategy is the most appropriate strategy that Bennet Distributors should use to join the Chines market (del Barrio-García, S., & Prados-Peña, 2019). The method is suitable for use since it dissociates the current with the risks that may arise from the new products. The flanker method separates the performance of one product from the other, creating effectiveness in creating a new audience that will surrender reliable feedback regarding the products. Hence, Bennet must use the strategy to introduce their latest items to the target market.

The Most Recommended Strategy

The most effective market entry strategy that Bennet Distributors should use in its operations to penetrate the Chinese market is the flight or fight brand strategy. Bennet Distributors should use the strategy to become the best seller of alcoholic beverages in China. using joint ventures with other companies in the country. Joint ventures are easy to manage and fund since different companies contribute unique capital to support the production processes. A joint venture approach allows accessible market take over since the local company identifies most of the regulations, they have to stick to avoid trouble in the market. The strategy eliminates shipping costs that may arise from the direct importation of the products into the new market. Moreover, a joint venture creates a brand owning and improves the business status in the market. The most appropriate strategy that Bennet Distributors must employ is using joint ventures to propagate its intentions.


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