Carlsberg Case

Synopsis
The report deals with the analysis of strength, weakness, opportunities and threat of the Carlsberg 330 ml beer. It has a brief market segmentation the beer factory uses for choosing its target customers. It also contains the targeting strategy the company chooses. It shows how Gorkha Brewery is responsible socially and environment friendly. Strength, Weakness, Opportunities and Threat Analysis

Carlsberg, which is perceived to be the premium product of Gorkha Brewery has several strengths, weaknesses, opportunities and threats.

Strengths
Carlsberg 330 ml can build on various strengths among people. Vertical integration: Carlsberg uses its own raw materials and performs in-house manufacturing of the final product in Nawalparasi. Experienced top management: The top management has a group of excellent expertise who “KNOW” the beer industry. Current Asset Management: Carlsberg uses a good automated perpetual inventory control system which is widely practiced for the inventory tracking as well as analyzing the sales pattern among the consumers. Distribution network: It has a strong on-trade and off-trade distribution capabilities. International Orientation: It is a Global Brand itself.

Brand awareness: Carlsberg has an established brand and image already, and since Carlsberg is considered to be a premium product, it is chosen more than any other beers in the market. This is the biggest strength for the 330 ml bottle too. Image differentiation: The image of Carlsberg is distinctive and is recognized by almost all of us. The embossed design, the green color, the label at the top makes it attractive and distinctive from other beer bottles. Pricing: The 330 ml bottle of Carlsberg becomes a perfect choice for those people who are price conscious and even those who are not because it is cheaper than 650 ml bottle and other beers. Innovative: No other beers of the 330 ml or similar size are found in market which is easier to carry, is handy and is preferred at all situations. Weakness

It is expensive when compared to per ml basis.
Competition among the own family beers such as Carlsberg 650 ml, Tuborg, Sam
Miguel, Gorkha beer might hamper its sales. Opportunities:
No time constraints: Normally people consume beer in the evening, but with the availability of 330 ml, people can drink it any feasible time. Association with Tournaments: Carlsberg’s association is already highest with international football tournaments, now it uses its brand value to leverage further to associate with EPL, FIFA Outlets expansion: Since much of the outlets of Carlsberg 330 ml was limited only within the valley and other popular cities, the embracement of people of this premium outlets growing outside ktm valley Economic Growth: With the constant growth in various business sectors in the Nepalese economy, rise in remittance and increase in disposable income of Nepalese people, there has been a growing trend of indulgence of people in luxury, and above all drinking, Carlsberg.

Changing family system: The changing family system of Nepal, where youths, modern families, working parents, young couples who are free spirited, are independent and are modernized are seen to be calling for celebrations, parties, get together who prefer easy consumption of beers consume Carlsberg 330 ml. Cultural shift: ‘Drinking is prohibited’ which existed in a lot of families is slowly changing and people are accepting drinking beer as a way of life. Threats

Increased Competition: There is a wide availability of imported beers, especially in Kathmandu, such as Heniken, Ashahi etc. Unstable political and social scenario: A lot of social and political intervention causes threat to Carlsberg Beer market such as instant change in existing rules, creating new rules, restriction to promote liquor’s print and electronic ads, anti drink and drive rules etc. Market Segmentation:

For our 330 ml Carlsberg beer, we have segmented the market as follows: Geographic segmentation:
World region or country: Nepal Country region: Eastern region, Central region, western region, Mid western and Far western

Demographic segmentation:
Age: Under 6, 6-11, 12-19, 20-34, 35-49, 50-64, 65+
Gender: Male and female
Family size: 1-2, 3-4, 5+
Family life cycle: Young, single, married, no children, married with children, single parents, older married Income: Deprived, Aspirers, Seekers, Strivers and Global Indians Occupation: Professional and technical, managers, officials, proprietors and clerical, sales, craftspeople, supervisors, farmers, retired, students and unemployed Education: Illiterate, literate but no formal schooling, Schooling upto 4th standard, upto 8th standard or 9th or SLC, graduates, post graduate and professionals. Religion: Hindus, Muslims, Buddhists and Sikhs.

Nationality: Nepalese, Indians and others

Psychographic segmentation:
Social class: Lower lowers, upper lowers, working class, middle class, upper middle class, upper class, upper uppers class Lifestyle: Achievers, strivers and survivors
Personality: Compulsive, Ambitious, Gregarious

Behavioral segmentation:
Occasion: Regular occasion, Special Occasion, Holidays, Seasonal Benefits: Quality, service, economy, convenience and speed
User status: Non-user, potential user, first time user, regular user User rates: Light user, medium user, heavy user
Loyalty status: None, Medium, strong, absolute
Readiness stage: Unaware, aware, informed, interested, desirous, intending to buy. Attitude towards the product: Enthusiastic
Targeting:
For our Carlsberg 330 ml, we have targeted niche market where instead of going after a small share of large market we have chosen a large share of smaller segments. Our targeting is as follows: Geographic:

World region or country: Nepal
Country region: Central region and western region
Density: Kathmandu agglomerate and the Sub urban areas and Pokhara We have
targeted people residing in the Central and Western region of Nepal including the Kathmandu agglomerate such as Kathmandu metropolis, Bhaktapur, Lalitpur, Kirtipur and Sub urban areas such as Banepa, Dhulikhel etc and Pokhara which has a population over 1 million.

Demographic:
Age: 20-49
Income: Rs. 20,000 and above
Occupation: Officials, proprietors and clerical
We have targeted the youths and adults of age of 20 to 49, regardless of gender where they earn Rs. 20,000 and above working as officials, proprietors and clerical.

Psychographic:
Lifestyle: Achievers
Personality: Ambitious and Gregarious
We have targeted people who are achievers and ambitious and gregarious (sociable) at the same time.

Behavioral segmentation:
Occasion: Regular occasion
Benefits: Quality, economic and convenient
Attitude towards the product: Enthusiastic
We have targeted people who consume beer on a regular basis, are enthusiastic towards the product and seek for a premium quality. Carlsberg is economic and is convenient as it is smaller in size and can be carried easily and consumed at any situation. Objectives and Issues:

Objectives
Short term Objectives:
To introduce of the new product i.e. 330ml to consumers.
To increase the sales volume.
Long term Objectives:
To increase the brand loyalty of Carlsberg.
To time and again remind people that Carlsberg is a premium product. To
uplift the brand image of Carlsberg.
Issues
With the launch of 330 ml, people might compare the volume of beer and the price to that of the competitor beer products and even with the 650 ml Carlsberg itself. This might reduce the number of beer sales. Corporate Social Responsibility:

Carlsberg is engaged with the society and has worked hand in hand to ensure the wellbeing of all who are directly and indirectly attached to it. It took a step towards CSR through campaigns relating to environment, education, loans and sports. It has taken an initiative to support a local village school, Shree Durga Primary School, in Mukundapur, Nawalparasi which is locates very close to the factory premises, where most the factory workers’ children attend the school. Gorkha Brewery ensures clean drinking water, proper fencing, electricity and ceiling fans at eh school and provides Rs. 75,000 each month. It provides micro loans to the locals around the Nawalparasi area.

It has established a water treatment plant in order to reduce the adulteration of water by industrial wastages, in its brewery at Mukundapur. It maintains the lush greenery in and around the Brewery sprawled over an area of 11 Bighas and building of several dams to protect the adjoining village and to fulfill its commitment towards the environment towards the environment and the Green Movement. With all these responsible acts, Gorkha Brewery has been able to prove itself as a socially responsible corporation.