...STRATEGY TD FALL 2012 JOÃO SILVEIRA LOBO | GUIDO MARETTO VS | Carlsberg vs. Heineken | TABLE OF CONTENTS Industry Overview1 Competitive Advantage and its Sustainability1 Cost Advantage1 Differentiation Advantage2 Sustainability3 Future Scenarios for the next ten years4 Strategic Options facing each Scenario5 Industry overview For thousands of years, beer has been sold in similar form and taste all over the world. However, it has remained a highly local product due to barriers such as local tastes, short shelf life, high transportation costs, taxes on imported alcoholic products and difficult-to-penetrate local distribution networks. In 1999, the top-four brewers were only accountable for 17% of global beer sales. Beer was, at that time, seen as one of the least consolidated, and least profitable, industries in FMCG. But nowadays, because of greater scale, the effects of reduced competition and the growing profitability of emerging markets, the top-four brewers control over 55% of global sales. In spite of this positive change, beer is still a local business, with local operations and brands. This consolidation can bring large benefits, such as operational leverage, efficiency in advertising expenses, increased reputation and distribution networks’ power. Although slowly, brand concentration is starting to occur both in developed and developing countries. The future prospects for beer brands tend towards industry and local brand consolidation, indicating...
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...to analyze in details the business environment faced by Carlsberg and Heineken in Malaysia. Detail of how Carlsberg and Heineken had done a good choice to take the risk of marketing in Malaysia is discussed below. The advantages and disadvantages of such decision are highlighted below as well. We then identify the generic strategies adapted by Carlsberg and Heineken successfully and describe the different generic strategies for different products of different segments in Malaysia. 2. Introduction of Beer Beer is one of the oldest human-produced beverages, possibly dating back to at least the 7th millennium BC (perhaps prior even to bread), and recorded in the written history of Ancient Egypt and Mesopotamia. Earliest known chemical evidence of beer dates to circa 3500-3100 BC. As almost any substance containing carbohydrates, namely sugar or starch, can naturally undergo fermentation, it is likely that beer-like beverages were independently invented among various cultures throughout the world. Today, the brewing industry is a huge global business, consisting of several multinational companies and many thousands of smaller producers ranging from brewpubs to regional breweries to increasingly popular home brewing and is selling more than 133 billion litres (35 billion gallons) per year - producing total global revenues of $331.8 billion in 2004. 1. Carlsberg Introduction 1. History of Carlsberg Carlsberg was founded in 1847 by the visionary brewer J.C. Jacobsen...
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...| Heineken: Road to the Final | | | 1. INTRODUCTION Beer is world’s number one consumed alcoholic beverage suitable for different consumption areas such as home, restaurants, night clubs, bars, beaches etc. Beer’s worldwide popularity makes brewing industry one of the largest global industries in the world. More than 140 billion liters are sold per year generating revenues of more than $490 billion by 2013. Beer consumption differs for various countries. Czech Republic is leading the consumption with the average of 132 liters per capita. Germany, Austria, Ireland and Canada are the countries following the Czech Republic with the consumption over 100 liters per capita. Considering the global popularity of beer, there are countless brewery companies all around the world. 2. COMPANY PROFILE Heineken is a Dutch brewing company which was founded in 1864 by Gerard Adriaan Heineken in Amsterdam. The company owns around 200 breweries in more than 70 countries. Heineken is the 3rd largest brewer in the world by producing almost 140 million hectoliters of beer yearly. The company holds more than 250 brands globally including Amstel, Birra Moretti, Cruzcampo, Deperados, Dos Equis, Foster’s, Newcastle Brown Ale, Ochota, Primus, Sagres, Sol, Star, Tecate, Zlaty Bazant and Zywiec. It also produces ciders under the brands Strongbow Gold and Bulmer’s. Operating all around the world, Heineken divides its operations into 5 global districts: Western Europe, Central and Eastern...
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...Background There is a long history of beer. As said by Benjamin Franklin; “Beer is proof that God loves us and wants us to be happy”. Beer is one of the world’s oldest alcoholic beverages. It has a lengthy history and can be dated back to when the main method of making beer was by way of home brewing. With no sign in beer declining, it could be presumed that beer is in the mature stage of the product life cycle. We are focusing on the beer industry in Western Europe, choosing to apply the five forces to the larger brewers who have significant operations in the industry; Heineken, Carlsberg and A-B InBev?.... Competitive Rivalry within the Industry This force is the centrepiece of Porter’s five forces and constitutes the intensity of competitiveness within the industry. It is the extent to which companies compete with each other for business and customers. A firm can develop an advantage here by having a flexible strategy that can react swiftly to industry changes, an innovative team and spending time and money on effective advertising....
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...UNIVERSITY OF BALLARAT FACULTY OF BUSINESS, ENVIRONMENT & SOCIETY MASTER IN BUSINESS ADMINSTRATION MARKETING COURSEWORK MARKETING MIX OF TIGER BEER STUDENT NAME : ARORA SAURABH STUDENT ID NUMBER : G1136238P LECTURER : THAM YUEN HOI Declaration of originality This is to certify that the work is entirely my own and not of any other person, unless explicitly acknowledged (including citation of published and unpublished sources). The work has not previously been submitted in any form to the University of Ballarat or to any other institution for assessment for any other purpose. Signed _________________________________________________ Date ___________________________________________________ Word Count - Number of Pages: 15 - Number of Words: 2361 * Exclude Cover Page * Exclude Reference list Table of Contents 1 EXECUTIVE SUMMARY 2 1.1 Introductory Sentence 2 Tiger Beer Product 2 1.2 Major Findings 2 1.3 Major Recommendation 3 1.3.1 Use its resources to increase the quality of their product 3 1.3.2 Reducing hangover percentage for consumer 3 2 Introduction 4 2.1 Background 4 2.2 Purpose 4 3 Description and the evaluation of the 4Ps 5 3.1 Description of Tiger Beer 5 3.2 Product 6 3.2.1 Tiger Beer Crystal 6 3.2.2 Tiger Super...
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...of… we see huge potential for it in our global footprint, particularly in markets like Latin America and Africa where we’ve got a strong route to market but where the premium beer business is still in its infancy.”2 Grolsch had hitherto focused on developed markets, particularly the UK, US, Canada, Australia, New Zealand and France, in pursuit of its goal of becoming one of the world’s top 10 global beer brands. Groslch was already the world’s 21st largest global brand, measured by international (nondomestic) volume (see Exhibit 1). International volume had grown to account for slightly over onehalf of total volume and, going forward, seemed to offer much more potential. Drinkers often rated Grolsch higher than larger brands, including Heineken, the top global brand as well as the leader in Grolsch’s home market (see Exhibit 2). And Grolsch had started up a state-of-the art brewery in 2004 that could be expanded at little incremental cost. The acquisition closed and in February 2008, Grolsch became an independent subsidiary of SABMiller. Rob Snel, head of Grolsch International since 1999 and an employee since 1984, was named Grolsch’s new CEO shortly thereafter. He...
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...of… we see huge potential for it in our global footprint, particularly in markets like Latin America and Africa where we’ve got a strong route to market but where the premium beer business is still in its infancy.”2 Grolsch had hitherto focused on developed markets, particularly the UK, US, Canada, Australia, New Zealand and France, in pursuit of its goal of becoming one of the world’s top 10 global beer brands. Groslch was already the world’s 21st largest global brand, measured by international (nondomestic) volume (see Exhibit 1). International volume had grown to account for slightly over onehalf of total volume and, going forward, seemed to offer much more potential. Drinkers often rated Grolsch higher than larger brands, including Heineken, the top global brand as well as the leader in Grolsch’s home market (see Exhibit 2). And Grolsch had started up a state-of-the art brewery in 2004 that could be expanded at little incremental cost. The acquisition closed and in February 2008, Grolsch became an independent subsidiary of SABMiller. Rob Snel, head of Grolsch International since 1999 and an employee since 1984, was named Grolsch’s new CEO shortly thereafter. He...
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...THE GLOBAL BRANDING OF STELLA ARTOIS Professors Paul W. Beamish and Anthony Goerzen prepared this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. This material is not covered under authorization from CanCopy or any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. One time permission to reproduce granted to Interpretive for use in CountryManager by Ivey Management Services on Aug. 1, 2007. Copyright © 2000, Ivey Management Services Version: (A) 2006-08-29 In April 2000, Paul Cooke, chief marketing officer of Interbrew, the world’s fourth largest brewer, contemplated the further development of their premium product, Stella Artois, as the company’s flagship brand in key markets around the world. Although the long-range plan for 2000-2002 had been approved, there still remained some important strategic issues to resolve. A BRIEF HISTORY OF INTERBREW Interbrew traced...
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...CONTENTS PAGE 1. Introduction 2. Survey Research 3. Customer 4. Marketing Mix 5. Conclusion and recommendations 6. Appendix 1.0 INTRODUCTION Tiger beer is a household name in Singapore and it was a favourite beverage for any occasions that cab range from celebrations to social gatherings. The group decided to choose Tiger Beer as their marketing efforts and promotions were excellent, therefore the group decided to find out what makes Tiger beer marketing efforts and promotions so successful. Launched in 1932, Tiger beer (Tiger) is Asia Pacific Brewery’s flagship brand. Over the years, Tiger Beer has seen beer drinkers globally acclaim Tiger as one of the finest in the world. It has consistently come out on top in world tastings, winning gold medals for its crisp, smooth, refreshing, well-balanced and flavorful taste. Tiger Beer's distinctive taste comes from its quality ingredients and meticulous brewing process that involves over 200 quality checks. This European-style lager is brewed using only the finest natural ingredients like malted barley from Australia and Europe and bitter hops from Germany. The former adds body and flavor to the beer which many beer fans love; while the latter gives the brew its characteristic bitter zest. What makes Tiger truly stand out is the special strain of yeast used in this bottom-fermented beer. This unique strain of yeast is specially cultured in Holland...
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...Global forces and the European brewing industry Mike Blee This case is centred on the European brewing industry and examines how the increasingly competitive pressure of operating within global markets is causing consolidation through acquisitions, alliances and closures within the industry. This has resulted in the growth of the brewers’ reliance upon super brands. In the mid 2000s the major centre for production of beer in the world was Europe; its production was twice that of the USA, which in 2003 was the world’s largest beer-producing country. In the alcoholic drinks sector beer sales are dominant: total sales across the world accounted for 74 percent of all alcoholic purchases (Euromonitor 2002). Although the European market as a whole is mature, with beer sales showing slight falls in most markets, Datamonitor 2003 reported that the alcoholic beverage sector grew at an annual rate in value terms by 2.6 per cent year between 1997 and 2002. Table 1 European beer consumption by country and year (000 hectolitres ) |Country | |1980 |1997 |1998 |1999 |2000 |2001 |2002 | | | | | | | | | | | |Austria | |7651 |9145 |8736 |8810 |8762 |8627 |8734 | |Beigium ...
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...Question 1 Part A Based on the Enjoy Winning series of advertisements for Tiger beer, the following personality traits of a typical brand loyal Tiger beer drinker are identified 1. Extroversion: A Tiger beer drinker is sociable and enjoys company of his/her friends. He/She likes to have a good time at parties and watch sports in a group with his/her friends. They enjoy the limelight in a gathering and can turn a boring party into a fun-filled event. Most of the advertisements in this series have a party or sporting events as the background. Tiger Beer is also an official sponsor of major sporting events such as telecast of European football and golfing events in Singapore. This shows that Tiger beer recognises its target customers in order to make relevant ads to push its products. 2. Competitive spirit: Tiger beer targets a youth market primarily in the age group of 24-35 years or Generation Y which is known for being go-getters and showing competitive spirit. One of the advertisements shows that two guys are competing to get a single beer by changing into superheroes. The tagline Enjoy Winning and the brand name Tiger itself are reminiscent of a competitive spirit. Playing or watching sports instil a competitive spirit in the youth and the association of Tiger beer with sporting events provides further evidence that a brand loyal Tiger drinker displays this personality trait. 3. Respect for women: Despite having an ultra-competitive spirit, Tiger beer...
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...brewery industry, in an specific company as Heineken Mexico: Cerveceria Cuauhtémoc, and it shows how makes workers to take mutual control and responsibility over themselves and their area co-workers taking the working style to another level where there are no supervisors all around just looking for someone who isn’t doing his job. This system is based on teams where each individual has a different role besides his normal job, but this roles makes them watch over the whole group in different aspects so everything work in an effective and in good work atmosphere. Keywords: Work systems, HPST, Teams, control, responsibility. High Performance System Teams: Heineken Mexico, Cerveceria Cuauhtémoc Heineken un poco de historia y como termino con Cerveceria cuahutemoc The brewing industry has been always in a constant development, and in the past ten years it has been a consolidation process where the market share has been attack by the biggest 4 brewing groups in the world, Anheuser-Busch, SAB Miller, Heineken and Carlsberg taking for the original 23% in the year 2000 to the actual 50% of the total global share. (Source: Plato Logic World Datasheets, March 2011) To get where Heineken is right now, there are thousands of strategies, systems, campaigns, etc. But each one of them has different objectives; either is buying other brewery as what happen in Mexico and FEMSA selling Cerveceria Cuahutemoc to Marketing strategies...
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...Question 1 (i): Using the data from the case (and any other source available), carry out for the European brewing industry a PESTEL analysis. What do you conclude? Beer has been a part of the social fabric of cultures around the world for thousands of years. Even today beer ranks as the third most popular beverage in the world next to water and tea. Considered one of the oldest drinks, the origin of beer dates back to 6000 B.C. With low-cost strategies and lack of marketing and product innovations all created a very stable situation guaranteeing high returns on investments for most breweries in Europe. However, this situation has been changing dramatically and the industry has witnessed different brewing styles over the last decade. The market entry of large multinational breweries resulted in shrinking demand due to changing consumer preferences, the emergence of more aggressive competitive strategies and rapid changes in important distribution channels have created growing competitive pressures for European breweries. An industry that was used to stability must now find its way in an increasingly turbulent market environment. First of all, I need to evaluate the macro environment of the industry. The most suitable tool to analyze the broad macro-environment is the PESTEL analysis. In the PESTEL analysis environmental influences are categorized into political, economical, social, technological, environmental/ecological and legal aspects. It helps to identify how future trends...
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...History Beer began to be exported to India in the early days of the British Empire, including porter and India Pale Ale, also known as IPA. Although as alcohols are not unknown to India thousands of years ago.It is mentioned in some epics of India like The Mahabharatha, called "sura paniyam", which means a liquid that can potentially make the drinker unconscious. The first brewery in India was set up in Kasauli, in the Himalaya mountains, near Shimla, in the late 1820s by the Englishman Edward Dyer. Dyer's brewery produced Asia's first beer, called Lion. The brewery was soon shifted to nearby Solan (close to the British summer capital Shimla), as there was an abundant supply of fresh spring water there. The Kasauli brewery site was converted to a distillery which Mohan Meakin Ltd. still operates. Dyer set up more breweries at Shimla, Murree,Rawalpindi and Mandalay. Another entrepreneur, H G Meakin, moved to India and bought the old Shimla and Solan Breweries from Edward Dyer and added more at Ranikhet, Dalhousie, Chakrata, Darjeeling and Kirkee. In 1937, when Burma was separated from India, the company was restructured with its Indian assets as Dyer Meakin Breweries, a public company on the London Stock Exchange. Following independence, in 1949 N.N. Mohan took over management of the company and the name was changed to Mohan Meakin Ltd. The company continues to produce beer across India to this day and Lion is still available in northern India. Lion was changed from an IPA...
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