Sales Growth’ Strategies in a Modern and Competitive Environment: A Case Study of Irish Beverage SME in Doing Business in China

Abstract

“There is nothing so useless as doing efficiently that which should not be done at all” (Peter Drucker). China had been demonstrating huge growth potential in the beverage sector, which had influenced many Irish beverage SME’s to do business there. However, due to the highly competitive market, several challenges were faced. Therefore, the objective of this dissertation was to analyse the efficacy of sales growth strategies utilized by Irish beverage SME’s, and Chinese distributors’ critical success factors that can assist growth in sales in China. In particular, key elements such as influences to growth, strategies related to how choose Chinese markets, growth in sales, and working with Chinese distributors were encountered in this study. This study involved a sample of twelve participants through semi-structured interviews, with nine used for a deep analyse on the finding. It had resulted that partnering with a Chinese distributor was the main growth strategy chosen by Irish SME’s, as well as the tiered market strategy approach. These are two of the most common strategies, and are seen as easiest to implement due to the lack of deep market knowledge, being highly dependent on Chinese distributor. Although motivation and growth expectative can contribute to sales growth, it was shown that they do not have value if not linked. Critical success factors from distributors that can help Irish beverage SME’s on their sales growth consisted not only product relationship tied, but in close relationships, commitment, high profit margins, product innovation, and taste. This had resulted in noticeably different findings from what the literature proposes, and draws a slightly different picture of more efficient sales growth strategies that Irish beverage SME’s could adapt to in order succeed.