Carlsberg Background and History in Malaysia Essay

Carlsberg Background and History in Malaysia Essay.

The Carlsberg Group is a Danish brewing company founded in 1847 by J. C. Jacobsen after the name of his son Carl. The headquarters are in Copenhagen, Denmark. The company’s main brand is Carlsberg Beer, but it also brews Tuborg as well as local beers. After merging with the brewery assets of Norwegian conglomerate Orkla ASA in January 2001, Carlsberg became the 5th largest brewery group in the world. It is the leading beer seller in Russia with about 40 percent market share.

In 2009 Carlsberg is the 4th largest brewery group in the world employing around 45,000 people. Carlsberg was founded by J. C. Jacobsen. The first brew was finished on 10 November 1847. Export of Carlsberg beer began in 1868. Some of the company’s original logos include an elephant (after which some of its lagers are named) and the swastika. Jacobsen set up the Carlsberg Laboratory in 1875 which worked on scientific problems related to brewing. It featured a Department of Chemistry and a Department of Physiology.

The species of yeast used to make pale lager, Saccharomyces carlsbergensis, was isolated at the Laboratory and was named after it. The laboratory was part of the Carlsberg Foundation until 1972 when it was renamed the Carlsberg Research Center and transferred to the brewery In December 1969, Carlsberg Brewery Malaysia Berhad (Carlsberg Malaysia) began brewing Carlsberg Green Label beer locally in 1972. Since then, the brand has become part of everyday’s life and is the No. 1 beer brand with more than a 50% share of the Malaysian Beer Market.

Carlsberg Malaysia is listed on the Main Board of Bursa Malaysia Securities Berhad (Malaysia Stock Exchange) under the consumer products sector. It is an established brewery that manufactures and distribute beers, stout and other beverages mainly in the domestic Malaysian market and also has investments in Sri Lanka, Singapore and in a Malaysian alcoholic beverage company. Carlsberg Malaysia has a beer for every drinker with different palates and lifestyles for every occasion.

Its expanded brand portfolio includes Carlsberg Green Label, Carlsberg Gold, Carlsberg Special Brew, Kronenbourg 1664, Kronenbourg 1664 Blanc, Asahi Super Dry, Somersby Apple Cider, SKOL beer, SKOL Super beer, Danish Royal Stout, Corona Extra, Jolly Shandy Lemon and as well as non-alcoholic Nutrimalt drink. In addition, Carlsberg Malaysia through its subsidiaries, has also a wide range of imported international beer brands such as Hoegaarden, Stella Artois, Budweiser, Grimbergen and Beck’s. The Company now has 7 of 9 world’s top international beer brands.

Carlsberg Background and History in Malaysia Essay

Saku Brewery Essay

Saku Brewery Essay.

Saku Brewery is a beer company that has the reputation of being ran by different hands along the years of existence. The company officially started producing beers in 1820 under Count Karl Friedrich von Rehibinder. The brewery was passed along to the Baggo family, who converted it to a modern industrial steam-fired brewery. At the end of the cold war the Estonian government owned the company then in 1991, Baltic Beverages Holding group bought sixty per cent of the company, with the remaining forty per cent still being controlled by the government.

With BBH being owned by Prips Beverage Company and Hartwell Brewery, they understood that Saku needed to revamp its image and overall quality. Saku continued to struggle as they were having problems appealing their product to their market. The company had experienced a decline in this popular line, domestic beer because Estonians were choosing import beers such as Heineken. Domestic competitor such as Tarta, also challenged Saku Brewery’s market share then they introduced A Le Coq .

With these concerns Saku began to search for answers. Saku had several different varieties of domestic and imported beer to choose from.

Their line consists of Saku Original, Saku Tume, Saku Sorts, Saku Rock, Saku Dark Presidendi Pilsne, and Saku Original Light. Saku’s complete portfolio of beer brands command about 42% market share, with its most prominent beer being Saku Original. Saku also developed other alcoholic products such as long drinks and hard ciders. Saku does carry non-alcoholic lines such as, water and soda. Saku’s most successful products are the long drinks because of their rapid popularity and the domestic beer line, where Saku holds their largest market share. Saku’s water and soda lines neither have very much market share nor produce many sales.

* Saku can market and sale their product in Finland where potential customers live. * Increased tourism with E.U. would require fewer trade restrictions making it easier to get their product into the rest of Europe * Women target is growing. Products: long drinks, hard cider, light beer. * Growing young, affluent, professional class. Products: import beers, Saku Rock, and Saku Dark * Discontinue soda and mineral water lines to free up money. Threats

* E.U membership could obstruct Saku transportation regulations to Finland * With EU membership sales may decrease because may lose the price advantage they currently hold * Long drinks, although highly profitable now, may become saturated and level out * Competitors, such as Tartu may increase their quality of beer and lower their price to pull market share away from Saku.

Saku is an overall strong company that has a good name for itself, but certain products are beginning to lose attraction and sales are starting to decline. Saku needs to be aware that they have high potential, but need to focus on the lines and segments that are making them money. Some of Saku’s products aren’t driving customers to make purchases. They are acting as dead weight to the company and are costing them money. I think Saku needs to address the dead weight possible by just ending the segment outright.

This will save the company money that they can use on other more profitable lines. Saku I feel has the opportunities to expand their target market and even sales in different countries such as Finland. The BCG chart is a tool Saku can use to investigate their product lines in detail. The BCG chart compares the Market Growth Rate and the Relative Market share. The four sections in the chart are labeled: Star, Cash Cow, Question Mark, and Dog. Cash Cows are the product lines that can be relied upon, they have steady growth that bring in lots of profit. Stars have high growth rate, but need to operate with high cash investments in order to sustain their spot in the market. Question marks have high growth rate, but their success is uncertain in the market. Dogs are product lines that aren’t working out and need to be considered for termination.

I feel in order for Saku to be successful, they need to continue to push their domestic beer line. It is one of their strongest and well-known segments but advertising for Saku Original dropped four per cent from 2002-2003. I think they need to continue to strongly advertise Saku Original as well as keep advertising for the imported beers and other alcoholic drinks. As an alcohol brand Saku needs to increase their promotions in order to created buzz and hype for their products. Saku should use promotions directed towards women to influence buys of hard ciders and long drinks. As we can see from the chart above, long and cider drinks would be very good product line to focus on and to put money into. Doing this Saku may be able to sustain growth in the market and maybe develop the line into a cash cow one day. Also from the chart we can clearly see that soft drinks and mineral water are hurting product lines.

I believe that Saku should sell off or discontinue these product lines because it would free up money for other lines and also could give Saku the capital needed to expand into new markets. I think that Saku should seriously consider expansion into Finland. The Finnish people already make up a good piece of sales. They already are making the ferry ride over to stock up on the cheaper Saku beer. I think that the transition to Finland would be an somewhat easy process as the Finnish already are aware of and purchase the Saku brand name.

Saku Brewery Essay

The Reasons We Drink Beer Essay

The Reasons We Drink Beer Essay.

There are most likely hundreds of reasons, good and bad, why people drink beer. Everyone who drinks beer has their own personal reasons. Beer is a worldwide commonly known and used beverage that has become a part of our society. It’s been brewed and consumed for over several thousand years. Why is this drink so popular? Today we’ll explore a handful of reasons why people drink beer. Taste – Beer is an acquired taste. I doubt there are many people who admit that the very first beer they ever tried in life tasted very good.

But those who kept trying beer grew accustomed to how it smelled, felt in the mouth and tingled the tongue. Once your taste buds lose their training wheels a whole new world of flavors are opened up to you. Buzz – Let’s face it, alcohol is a big reason why many people drink beer. It provides mind altering capabilities that offer some people enjoyment, others a distraction, and still for others nothing more than problems.

Getting a beer buzz is an attraction for many as well as a regrettable side affect. Everyone has different limits, so get to know just how much beer is enough to get your buzz on.

Social – Sharing a beer with friends or acquaintances is one way of sparking conversation and just being, well, sociable. It becomes a common bond between partakers. Not only does it loosen the tongue a bit, but also causes some to open up a bit. Identity – It’s funny how some people find a beer they like and stick to it. For some, it becomes part of their identity. Brand loyalty is hard to break for some. The beers you started drinking when you were a young adult often become the beverage of choice later in life.

Many beer drinkers will try other beers for a new experience and find a new brand to identify themselves with. The type of beer you drink may say something about you that you didn’t realize. Variety – Beer comes in over 100 different styles and in thousands of different brands. No one beer brand is identical to the next. You could spend your entire life trying to sample all of the beers that are available in the world and still not be able to try them all. Very few beverages can claim this kind of variety. Health – This could be an entire subject in of itself.

There must be dozens of reasons why beer is healthy for you. Taken in moderation, beer: • is good for your liver. It expands the blood vessels and helps speed up metabolism. • can help lower your risk of heart attacks and stroke. • prevents cholesterol from oxidizing. Some hop compounds prevent LDL from oxidizing and clogging arteries. • boosts vitamin B5, B12, folate and other valuable mineral levels. Unfiltered beers have more of this benefit. • may help in combating cancer. The compounds in some hops are showing promise for preventing certain types of cancer.

(Bingham report 1998) • helps ensure healthy bones. Bone improving nutrients are leached from the brewing process in a form that is readily accessible to the body. • helps you relax and sleep more easily. Two vitamins, lactoflavin and nicotinic acid are present in many beers and helps to promote sleep. Beer is also a natural sedative. • Contains antioxidants that can help slow the aging process. • Contains fiber. A liter of beer can have up to 60% of your daily recommended fiber. • Helps fend off gallstones and kidney stones. Peer Pressure – One of the sad reasons why many drink beer.

The pressure to conform and fit in with others is a constant issue. Many people, especially teens, drink beer just because their friends are doing it. For others, drinking beer is a right of passage in life. Heritage – Breweries have been part of communities for generations and generations. Many communities in ancient and modern society rally around their local brewpubs and breweries throughout the world. Beer was one of the many bounties of a year long harvest. Locally made beers garner more loyalty. Colorado – we live in one of state’s that produces the most amount of beer in the nation.

With nearly 100 different breweries and brewpubs, the availability of hundreds of quality craft beers simply can’t be ignored. Colorado is a travel destination for many of the world’s beer drinkers. Even one of the biggest beer festivals in the world, the Great American Beer Festival, is held here each year in October. Food – Beer makes the perfect compliment for lots of different kinds of food. Pairing food and beer is becoming quite popular, just as it has been for wine. There are beers that go well with just about every type of food, from meats, appetizers (cheeses, breads, snacks) and desserts.

The Reasons We Drink Beer Essay

Corona Beer Essay

Corona Beer Essay.

Having a large international presence, the brewing of beer has in the past been a local industry with only a few industries. In the previous decades there has seen increasing consolidation within the industry. In 2003, sales totaled more than 1,400 million hectoliters. The major drive for growth came from higher consumption in developing countries, such as China. The better-known beer markets, volume growth was sluggish due to the rising saturation. The lifestyle trends are encouraging a big shift away from the beer consumption’s, as health consciousness boost and engage consumers to cut back or cut down on heavy drinking.

In the fashion trends upon alternative drinks, such as wine, FAB’s and bottled water, has also forced growth in beer sales. In addition, stricter drinking and driving legislation is discouraging consumers from drinking away from home. The rise in disposable income, enhancements in the quality of beer, marketing and advertising activities, and a gradually growing beer-consuming population base are predominantly driving global beer volumes.

A continuing trend obviously in emerging and growth markets is the replacement of beer in place of customary beer, local spirits.

Rising incomes and increasing awareness towards brands and marketing compels this trend. Also, the demographic changes towards increasing westernization and urbanization of tastes among younger generations have sustained the change towards beer. In a full-grown market, consumption rates differ based on product isolation, and advertising and sponsorship activities. Discuss how Modelo’s international expansion was made possible through strategic partnerships with experienced distributors in local markets.

Corona’s rise to glory could be recognized to its distinctive and radiant marketing promotion, which was a direct effect of the international approach undertaken by Grupo Modelo when it extended into the United States. Corona beer which was sold only near the neighboring states near Mexico, end up being the number one imported beer in America. When Corona initially entered the American beer global market, it chooses Chicago-based Barton Beers Limited as its distributor.

Barton Beers Limited was a simple alternative because it was the biggest beer importer in the 25 western states and was knowledgeable in the sales and advertising of imported, quality beers. It was through Barton Beers that the advertising representation of “fun in the sun” was born. Beginning in 1986, Modelo determined to opt for a second distributor, which was Gambrinus Inc. , who was headed by a previous Modelo executive. Each advertising company was accountable for their own 25 states. Modelo’s agreement with Barton Beer Ltd, and Gambrinus Inc.

distributors was that each one would be in charge of basically all activities connecting to the sale of the beer, with the exception of the production, which took place in Modelo’s factory in Mexico. Everything including shipping of the beer, assurance, custom authorization, pricing strategy, and creativeness of the advertising campaigns are the importer responsibility. On the other hand, Modelo had the ultimate say on anything relating to the brand image of its beers (Goodman 2003). Identify and discuss the next foreign market that Modelo should enter and discuss the strategy it should use to enter the market.

Australia is the next foreign market that Modelo should enter is in. Presently, Australia is positioned the fourth internationally in per capita beer consumption, which is about 110 liters per year. Australia’s beer market is amongst the most cost-effective in the world, producing earnings of $1 billion a year, which is shared, mainly between Lion Nathan and Foster’s Group. Australia produces only 2 types of beer, which are lager, and light beer. With the exception of the family-owned Coopers Brewery, also the Lion Nathan or Foster’s Group has possession of all of the big Australian breweries.

In the last 20 years, Victoria Bitter has sold the highest market share in Australia. The strategy Modelo should use to enter this market is their clever marketing values. These strategies consist of giving self-sufficient control to an experienced local distributor, with focuses on “fun in the sun”. They should collaborate with Coopers Brewery. Corona beer is a pale lager that has a smooth quality with a sharp taste added by a lime wedge, which is favorable to Australia’s climate. With a lack of selection to decide from in Australia, it makes Corona a wonderful beer to try something new (Wikipedia, 2011).

Discuss the challenges that Modelo faces from its competitor InBev, and how it might respond strategically to the industry giant. Modelo is one of the top brands in the global beer industry, and currently the fifth leading producer of beer by made by the volume. We must first determine the charisma of the beer industry, in order to decide future strategies for the company, The capacity of Modelo to contend successfully is to determine the strength of the external atmosphere against them. There are extreme aggressive forces contained by the beer industry.

This severe competition signifies the utmost threat for Modelo. There is lofty separation in products and marketing. Inside the beer industry there is opposition from both import products and domestic products, therefore companies have many varieties of competitors to be aware of. There is also a large risk coming from the likelihood of acquisitions and mergers in the business such as Anheuser-Busch and InBev. As big companies obtain others, they can become prevailing industry players as they expand cost and brand profits from economies of scale and market shares.

Anheuser-Busch is an influential market leader in the United States. They have 75% of the beer industry’s profits, and 45% of the United States market share. Anheuser-Busch has been bright to take advantage of economies of degree and manage their costs. Anheuser-Busch has also obtained over 50% of the shares that were outstanding in Modelo, but held minority-voting privileges. Anheuser-Busch manufactures its beers in the foreign markets, since it is cost effective for them to do just that. They are also the business leaders in the total amount spent on marketing promotions.

Anheuser-Busch has joined with Modelo to issue its products in Mexico. SAB Miller as well as InBev is also a huge factor in the global beer market. SAB Miller at this time has 23 percent of the United States market and InBev is world’s leading brewing company in terms of quantity. There may be a potential for a merger between Anheuser-Busch and InBev, which would produce a super-company with one-fifth of the whole world market share that may facade a risk to minor beer companies as well as Modelo.

Additionally, there are many smaller brewers in the beer industry that generate regional and differentiated beer. Modelo is also powerfully positioned against their competitors in regards to liquidity. Over the previous 3 years, Modelo’s liquidity has been declining as confirmed by decreasing existing and rapid ratios. Even with this downhill trend, Modelo remains much more liquid than any of its main opponents and compared to the industry and division as a whole. None of Modelo’s opponents are able to cover up their recent liabilities while Modelo can do so roughly three times over.

This dissimilarity may subsist due to the company’s small operating expenses and small interest expenses. In respond to InBev, Modelo has the chance to utilize its Mexican heredity to detain the large beer drinking markets in Mexico and in the population of Mexican immigrants to the United States. There is rising attractiveness of flavored beverages and alcoholic light beverages, which may be valuable to devote in the development of these alternative products. Also, Modelo may potentially profit from partnering with Anheuser-Busch as it combines with InBev.

This could permit them to continue to develop into other global markets, profit from economies of scale and distribution groups, and profit from strong brand recognition (Brown, Roath, & Pheann, 2009). Discuss whether or not Modelo should diversity its business. If so, what business should it enter and why? I think Modelo should expand its business. At this time, they are in the business of selling and the producing of beer products. On the other hand, they do sell shirts, cups, mugs, and accessories. But what if the beer market decides to go south?

There are quite a few reasons why this could happen: a decline in population, which would eventually lead to a lesser drinking population; diversification of consumers’ tastes and options; a completely saturated beer and small alcohol beverage market; and severe laws. As a result, it is necessary for Modelo to approve strategies for future sustainability, one to build up its foundation liquor business and present a array of beverages other than just beer; the other is to increase business opportunities into regions other than just the liquor industry.

These diversified businesses are essentially either founded upon the core competencies or vertically integrated, both of which are close to their key business, namely alcohol beverage business. In addition, Modelo is by now victorious in distribution so adding other options wouldn’t be expensive.

References Brown C. Roath & J. Pheann J. 20091130 Corona Beer: From a Local Mexican Player to a Global Brand Case Analysis) Brown, C. , Roath, J. , & Pheann, J. (2009, November). Corona Beer: From a Local Mexican Player to a Global Brand. In J. Portz (Ed. ), Crafting & Executing Strategy: the Quest for Competitive Advantage Concepts and Cases.

New York, New York: McGraw-Hill Learning Solutions. Corona Beer: From a Local Mexican layer to a Global Brand Case Analysis. Retrieved November 07, 2011, 2011, from www. plu. edu/~beechujs/doc/corona. doc (Management Review: Markets and Strategy 20090615 Trends in the Global Beer Markets) Management Review: Markets and Strategy. (2009, June).

Durchslag, A. (January 01, 2008). Budweiser’s last bow: Grupo Modelo, Mexico’s number one beer maker behind the Corona brand, will not give InBev, the Brazilian-Belgian brewer of Stella Artois, a clear run when it comes to buying Budweiser owner Anheuser-Busch for US$52bn in cash.

Acquisitions Monthly, 289, 16-17. Goodman, E. (2003). Corona: The inside story of America’s #1 imported beer. Hoboken, N. J: Wiley. Thompson, A. A. , Strickland, A. J. , & Gamble, J. E. (2010). Crafting and executing strategy; The quest for competitive advantage: Concepts and cases: 2009 custom edition (17th ed. ). New York, NY: McGraw-Hill-Irwin. (Wikipedia 20100802 Beer in Australia) Wikipedia. (2011, November). Beer in Australia. Retrieved November 7, 2011, from .

Corona Beer Essay

Tiger Beer Essay

Tiger Beer Essay.

Launched in 1932, Tiger Beer became Singapore’s first locally brewed beer. It is a 5% abv bottled pale lager. As APB’s exclusive flagship brand, it is available in more than 60 countries worldwide including the USA, Canada, Australia, New Zealand and various countries in the Middle East, Europe and Latin America. ] Distribution ? APB has breweries in Singapore, Malaysia, Thailand, Vietnam, Cambodia, China, New Zealand, Papua New Guinea, India, Sri Lanka, Laos and Mongolia.

The company has a strong market share in several countries within the Asia Pacific Region, primarily in Singapore, Malaysia, Vietnam, Cambodia, Papua New Guinea and New Zealand.

? In Malaysia, Tiger Beer is produced and marketed by Guinness Anchor Berhad (GAB). ? In the USA, Tiger Beer’s brand is well known in New York and San Francisco. ? In the UK, Tiger Beer can be found in more than 8,000 premium bars/clubs and distribution outlets in its major cities. ? Tiger Beer gained considerable popularity in Detroit in October 2006 due to the Detroit Tigers Baseball Team’s entrance into the 2006 World Series.

SWOT [pic] Brand position Brand Positioning as is seen from the communications of the Brand selected and their major competition Position Tiger beer as a brand and product that will allow consumers to STAND OUT with Tiger beer. The STAND OUT with Tiger beer campaign idea demonstrates how consumers can beunique, cool and contemporary. With great innovation on the product, it aims at reaching out toconsumers¶ wants and needs. The strategy was executed mainly in the digital social space withendorsements from key opinion leaders and social influencers online.

According to Synovate,perception of Tiger as ‘a beer for good times and fun’ increased by 14 per cent; an additional 12per cent of consumers described the beer as one ‘my friends approved of’; and consumption among young adults increased by six per cent. Competitive Analysis Model The competition faced by Tiger Beer versus its competitors is analyzed using Porter’ s Five Forces Model to explain Tiger Beer competitive position and strategic advantages. [pic] Competitive Rivalry.

The intensity of rivalry helps decide the extent of the value of brands and products in which will create head -to-head competition. It also determines the attractiveness of the industry. Tiger Beer is internationally renowned to be an exotic beer with high quality control. There are many other international beers such as Heineken, Carlsberg, Suntory and Tsingtao etc. With so many brands available, it will create a competitive industry. Their prices te nd to be similar and competition focuses on advertising, promotion and product development.

Tiger Beer faces strong competitors and fight for higher market share through Differentitation. The traditional approach often takes to keep in terest and increase consumption is by advertising, POS materials and other promoters. Tiger Beer stands out by appealing to consumer and generates interest in its brand. Tiger Beer targets younger consumers which associate themselves with brands that are seen as cool and trendy by organizing a µstand out with Tiger Beer¶ campaign i. e. introduction of three designer bottles based on artistic and music themes.

Tiger Beer also in touch with community of over 20,000 Tiger fans in Facebook that created more buzz and had fans share their views plus other activities in bloggers, Twitter, Flicker and YouTube. Threat of New Entrants In every industry, existing and potential competitors play a part in its profitability. The threat of new entrants is highly dependable on industry entry barriers. Newer brands such as Cheese Beer and Corn Beer have emerged. They all has managed to keep transportation cost low and hence, is able to keep beer prices at minimal.

Cheese Beer –The US Miller Beer Company develops beer which has the unique rich milk fragrance and light malt taste which is very delicious. It is made of the lacto -protein whey as main raw material, malts, and hops which ferments to produce the cheese beer. Corn Beer–Japan launched the corn beer, a corn-based materials which is pure in taste,limpid color, low alcohol, low calorie, high in protein, vitamins and effective in human nutrition. Threat of Substitutes The threat that can subst itute a product highly depends on the price allocated to the product and its performance.

This allows consumers to turn to different products to satisfy the same basic need. In the beverage industry, there are many substitutes product to Tiger Beer. Wine and hard liquor is highly available on the market. On other extreme, a substitute can be simply a Coca-Cola or a cup of coffee. Bargaining Power of Suppliers The ability to charge customers different prices with differences in the value created for those buyers usually indicates that the market is characterized by high supplier power.

Tiger Beer minimize the power of suppliers through close coop eration with the raw materials suppliers and thus minimize the cost impact. Bargaining Power of Buyers With many other brands in the market, consumers have a large variety of brands to choose from. Many bars and restaurants usually carry several brands of beers. However, through effective marketing and promotion, Tiger Beer create the demand for its products and w ith that value instilled in the name, many bars and club will want to carry the brand . Entry to new market.

The Indian beer market is in the focus of many players. The latest entry is the launch of Tiger beer, a fine beer brand Indians who have visited Singapore or Thailand might know already. The beer is also not totally new to the Indian beer market, as it was imported into India, but was only made available at exclusive premium outlets. India is the 10th country in the Asia Pacific region where the award-winning Tiger will be brewed, Asia Pacific Breweries Aurangabad Limited (APBAL), a subsidiary of Asia Pacific Breweries Limited (APB), said during the launch of Tiger beer in Mumbai.

Tiger was first brewed in 1932, and is today available in more than 60 countries. In view of India’s growing beer market, rising disposable incomes of the consumers and favourable demographics, it is timely that we now offer Tiger as a premium option to the many discerning Indian drinkers who are becoming increasingly experimental in making an informed choice. Other brands offered by APB in India are Baron’s Strong Brew and Cannon 10000 which cater to the strong beer segment of the Indian beer market, whereas Tiger is positioned for those consumers who want a lower alcohol content.

In additional,tiger beer expanding in Canada and successful entry into the United States. Molson, the largest beer importer in Canada, is set to market, distribute and sell the brew originating in Singapore, which is now available only in Ontario and British Columbia. Canadians consume the equivalent of 7 billion cans of beer annually. ‘That is 33 times the size of the Singapore beer market. Positioning itself as a premium pan-Asian beer, Tiger is aiming to carve out a niche for itself in the North American market.

Tiger Beer Essay

Corona Beer (Modelo) Essay

Corona Beer (Modelo) Essay.

Abstract This case analysis presents a synopsis of Corona Beer (Modelo) current strategy and its position within the competitive beer industry. The key question being addressed is whether Modelo would be able to maintain its status as one of the market leaders in beer production and distribution as competition in the industry increases. This paper presents an analysis of the trends within the global beer market, analysis of the foreign market of Modelo, competitor analysis, and by identifying the strategic challenges being faced and various options and recommendations to address them.

Identify and discuss the trends in the global beer markets. The trend towards premium beer consumption has slowed somewhat in the recent economic downturn. However, down-trading is limited and there are notable instances of consumers continuing to trade up, both into beer and, within the category, into premium products. The beer industry has also seen a trend towards consumers trading up to attractive, local, premium and more expensive beers. Since 1997 Corona has become the number one imported beer in the US, substituting Heineken who had held the number one spot in the beer industry since 1933.

(Thompson, Strickland, & Gamble, 2010) With Corona expanding their company internationally into the United States and Canada, Grupo Modelo has already responded to the potential threats that may come because of the unpredictable Mexican economic system and theirpolitical environments. During the past five years, on a pure alcohol-equivalent basis, beer has increased its share of total alcohol consumption by more than 200 basis points (bps) to 41. 1%. In 2008 the trend slowed somewhat and beer’s year-on-year share of total alcohol consumption remained flat.

In emerging markets, beer has generally shown higher growth than other alcohol categories as consumers gradually switch from local, generally high-alcohol, subsistence products towards attractively packaged, higher-quality, commercially produced beer. Over the past five years, the beer industry has seen a trend towards consumers trading up to more expensive beers. As a result, premium beer has gained more than 40 bps and now constitutes 17. 9% of total beer sales. For mainstream beer consumers, particularly in emerging markets, the most common trade-up proposition is to attractive, local, premium brands.

Beer has increased its share of total alcohol consumption every year but in 2008 the trend of Corona slowed down. In emerging markets beer has shown higher growth than other alcohol categories as consumers switch local to commercially produced beer. Beer drinking is on the rise and the market of beer drinkers has changed from being predominantly a male product to females now drinking socially too. Over the past five years, the beer category has maintained a compound annual growth rate of 4. 8% globally.

(Thompson, Strickland, & Gamble, 2010) Discuss how Modelo’s international expansion was made possible through strategic partnerships with experienced distributors in local markets. The global financial crisis continues to cause a considerable slowdown in most countries. Governments around the world are trying to contain the crisis but many suggest that the expansion is not over. When Corona first entered the American beer market as a distributor Modelo’s choice to align itself with Barton Beers was its largest beer importer in the 25 western states and has experience in marketing and sales of imported, premium beers.

In 1986, to continue its growth within the United States and to supply the eastern states, Modelo decided to select a second distributor Gambrinus Inc. Modelo agreement with distributors was that each importer would be responsible for essentially all activates involving sale of the beer and production. (Thompson, Strickland, & Gamble, 2010) Modelo took on the role of decision making and maintained the final say on anything involved the brand image of it beers. In order operations in the United States, Modelo set up Procermex Inc. a subsidiary whose purpose was to coordinate, support, and supervise the two distributors.

The strength of the relationship between the importer and Modelo was very strong as taxes increased in 1991. To further expand internationally, I would encourage Grupo Modelo to continue its model of contracting with a distributor in the target region. This strategy has benefited the company because the local distributors are able to brand the beers to their local market needs. I believe that China and Australia are two markets that have great potential for demand of Grupo Modelo’s beers. China recently surpassed the U. S. in total beer consumption. There is a huge population that is potential for demand.

Australia already has high per-capita consumption of beer, so it might be an easy market to enter especially considering the match of brand image of Corona to the typical image of Australian beaches. Identify and discuss the next foreign market that Modelo should enter and with what strategy. In the current environment, the biggest challenge for Grupo Modelo is to sustain its growth and maximize the return to shareholders by following business expansion strategy in order to retain market leadership position in both domestic (Mexican) and International market especially in United States.

Hence, the company could consider various options to overcome this challenge: Expand in domestic market and emerge as a stronger competitor to FEMSA. Expand in International market such as China which has overcome US as the biggest consumer and other Asia Pacific, European, Central American countries. (Thompson, Strickland, & Gamble, 2010) Discuss the challenges that Modelo faces from its competitor InBev, and how it might respond strategically to the industry giant. Modelo is a top brand in the global beer industry. The company is currently the fifth largest producer of beer by volume.

In order to determine future strategies for the company, we must first consider the attractiveness of the beer industry. The ability of Modelo to compete successfully is determined by the strength of the external environment against them. There are intense competitive forces within the beer industry. This fierce competition represents the greatest threat for Modelo. There is high differentiation in products and advertising. (Thompson, Strickland, & Gamble, 2010) Within the beer industry there is competition from both domestic products and import products, so companies have many types of competitors to be aware of.

There is also a great threat coming from the possibility of mergers and acquisitions in the industry such as InBev and Anheuser-Busch. As large companies acquire others, they can become dominant industry players as they gain cost and brand benefits from economies of scale and market share. They have 45 percent of the United States market share, and 75 percent of the beer industry profits. Corona faced challenges due to changing demographics such as the increasing young adult population, the growing Hispanic community, changing lifestyles and increasing incomes.

Also, retail consolidation, which decreased the number of wholesalers and retailers distributing the brand, compelled distributors to stock too many brands at one outlet. Consequently, Modelo’s US bound shipments of the brand, which grew in double digits through the 1990s increased by less than 2% in 2004. Furthermore, apart from the brands in the US like Heineken and Budweiser, other imported brands from Mexico like Tecate brewed by Formento Economico Mexicano (FEMSA), also gave Corona stiff competition.

Carlos Fernandez (Fernandez), the CEO of Modelo, reorganised the company’s marketing strategies in the US to overcome the challenges. Modelo introduced new television ads targeted at the growing Hispanic consumers and introduced promotional offers. Acquiring an import contract from one of its two importers in the US and establishing its own distribution network, was also being considered as a part of the reorganizing process. (Thompson, Strickland, & Gamble, 2010) Discuss whether or not Modelo should diversity its business. If so, what business should it enter and why?

I believe that Modelo should diversity its business. As other beverage companies have expanded their business models. I feel that Modelo should add lime to its ever popular Corona beer. I feel that Modelo should also start a new line of flavored beer with stronger alcoholic volume. Also merging with other alcoholic beverage companies in other countries would expand their business. This will also give Modelo a chance to introduce it’s already existing products into a new market.

References Thompson, A. , Strickland, A. , &Gamble, J. (2010). Crafting and executing strategy (17th ed.). New York:  McGraw-Hill-Irvin. http://www. corona. com/home/index. jsp Heineken to take over Mexican beer brands in U. S. “. USA Today. 2004-06-21. http://www. usatoday. com/money/companies/2004-06-21-heineken-mexico_x. htm.

Retrieved 2010-11-12. “Modelo’s Corona brand has been the top-selling import beer in the United States for years and is the seventh-best selling brand their overall. ” http://www. businessweek. com/magazine/content/05_06/b3919098_mz058. htm Grupo Modelo. (2009). Company Website. Retrieved 12 November 2010 from http:// www. gmodelo. com.

Corona Beer (Modelo) Essay

Informative Beer Speech Essay

Informative Beer Speech Essay.

A. Attention: When planning a BBQ, how many of you have beer somewhere on your shopping list? B. Relate: Beer, is the most widely consumed alcoholic beverage, and there is no doubt that it’s one of the most beloved of all man’s discoveries. C. Credibility: I enjoy drinking beer, therefore researched the topic. D. Preview: Brief history of beer, key ingredients in the brewing process, what happens to your body when you drink.

BODY OF SPEECH:

1. History: Beer is as old as civilization itself.

A. Ancient history
1. Ancient Sumerian’s; 4300 BC
2. Valued over money
3. (Ancient Encyclopedia of History) Bad batch = drowning B. FF to later history
1. 1200 AD; commercially established Germany, Austria, England 2. (Yuengling website) 1829 Yuengling founded; America’s oldest brewery 3. 1933, beer prohibition ends.
B. Today
1. (Brewers Association) 1,900 breweries in 2011
2. Revenue of $196 billion
3. (StatisticsBrain.com) 67 billion cans consumed; reach moon 20 times
So, now that you have a brief history on beer, I will discuss the key ingredients in the brewing process.

2. Key Ingredients: Malted Barley, Hops & Yeast all play a major role in the brewing process.

A. Malted Barley
1. Basic grain; cereal, bread, baked goods
2. Mashed into oatmeal-consistency
3. Sugar rich “Wort” drained off
B. Hops
1. Boiled with “Wort”
2. Varieties add flavors, aromas
3. Different times, creates different beers
C. Yeast
1. Added to mixture; cools & ferments
2. Yeast converts sugars to ethanol & CO2
3. Ethanol = drunk, CO2 = bubbles.

Now that you know the basics of brewing, we will learn what happens to your body after drinking beer.

3. Intoxication: Human body can break down approx. 1 beer per hour depending on the strength of the beer.

A. Stomach
1. Alcohol absorbed by stomach & small intestine
2. Enters bloodstream
3. Travels to the brain
B. Brain
1. Cerebral cortex; decision making & emotions
2 Cerebellum; balance & coordination
3. Medulla; involuntary = breathing, temperature
C. Hangover (HowStuffWorks.com)
1. Ethanol diuretic; pee more = dehydrated – headaches, fatigue 2. Alcohol; stomach lining = nausea
3. Impurities; byproducts of fermentation.

CONCLUSION:

A. Signal ending: To recap . . .
B. Review: Beer has a rich history, key ingredients are added in, drinking too much leads to intoxication. C. Ending: To quote Homer Simpson, “Here’s to Beer, the cause & solution to all of life’s problems.”

Works Cited
Mark, Joshua J. “Beer.” Ancient Encyclopedia of History. Web. June 12, 2012. http://www.ancient.eu.com/Beer/ Yuengling. Web. June 16, 2012. http://www.yuengling.com/our_story/ Brewer’s Association. “Number of Breweries.” Wed. June 16, 2012. http://www.brewersassociation.org/pages/business-tools/craft-brewing-statistics/number-of-breweries.

Statistics Brain. “Beer Industry Statistics.” Web. June 16, 2012. http://statisticsbrain.com/beer-industry-statistics/ Perry, Lacy. “How Hangovers Work.” Web. June 16, 2012. .

Informative Beer Speech Essay