Anime Beer is Slow to Win Over the Ladies - Assignment Example

Executive Summary The marketing plan focused on the best approach to ensure success of the newly introduced ladies beer brand known as Animee Beer. This came about after the failure of the brand to command a significant market share within four month of its inception in the United Kingdom market. The analysis in this plan provides the opportunity to allow best strategic approaches that the company can implements to facilitate achievements of the key strategic goals. The Animee Beer will be marketed as a special and unique lager for ladies market and at the same time reinforces the status of the company as a global leader in the industry through innovation and successful product launching. The set marketing strategies will be critical in acquiring the significant market size of which, 17 percent comprise of female drinkers. This can be translated into £396m. For the first two year, the strategy will enabled the brand obtain at least 2 percent of this market share which is an estimated £4m. This will be achieved through an aggressive competition with already existing brands, as well as, focus on capturing the unserved beer market share. Basically, the success of the strategies will be realized through capturing of a sizeable market share and boosting the company’s image as the leader in global beer market. Table of Contents Executive Summary 1 1.0 U.K. Take Home and Out Of Home Markets for Alcoholic Beverages 3 3.0 Company Description 5 3.1 A Brief Company Description 5 3.2. A Brief Brand Description: Animee Beer 5 3.3 The strategic position of Animee Beer Brand 6 4.0 The United Kingdom Beer Industry 7 5.0 Market Analysis 7 5.1 Competition 8 5.1.1 Carlsberg Breweries A/S: 8 5.1.2 Heineken N.V. 9 5.1.3 Anheuser-Busch InBev SA/NV 10 6.0 Product Offering 10 6.1 Signature Brands 11 6.2 Portfolio and Partner Brands 12 7.0 Key to success 14 8.0 Critical Issues 15 8.1 SWOT Analysis of Molson Coors Breweries 15 8.2 SWOT Analysis for Animee Beer Brand 17 9.0 Financials, Budget and Forecasts 17 9.1 Break even analysis. 18 9.2 Sales Forecast 18 9.3 Expense Forecast 19 9.4 Controls 20 1.0 U.K. Take Home and Out Of Home Markets for Alcoholic Beverages The audit focused on alcoholic drinks that are purchased with the specific goal of consuming it at home or out of the premise where it was bought. This implies that on trade establishments such as restaurants and public houses are not part of the audit scope. Another name for take home trade is off trade- a practices that impose direct competition with the so called on trade business. Looking the prevailing situation in the United Kingdom, the market has in the recent years registered an exuberant performance. This was based on the report by the Office for National Statistic (ONS) for the 2008 and 2009 performance. The 2011 year on year growth estimate was 5.4 percent which was a clear indication of strength to strength growth in the U.K beer industry, particularly, in period of difficult economic situation. In fact, consumers had to restrict their rate of spending on non basic goods because the high rates of inflation forced up item cost on daily basis. Report further suggest that most consumers are not willing to forsake alcohol consumption, however, there are looking for a low cost way of maintaining their consumption rate through bulk purchasing of drinks from supermarket instead of spending hours in pubs and bars drinking (Chris and Angela, 2001). The past few decades have shown that people are shifting into take home trade market. This has made a number of off license chains in the U.K. to be rendered bankrupt such as THE Unwins and Threshers. This came about as most consumers resort to purchase of cheep alcoholic drinks on weekly basis from the supermarket shelves. Similarly, high streets have also witnessed growth as large retail supermarkets such as Sainsbury and Tesco opens up convenience stores in the bid to expand and dominate the United Kingdom take home trade market. Other retail stores such as Co-operatives and Marks & Spencer have, as well managed to acquire significant market share. Though the industry has showed a positive growth, it was projected that it could face serious challenges in future. For instance, in the year 2012, the Prime Minister, David Cameron, stated that the minimum price per unit of alcohol in Wales and England will be 40 pounds and this was to take effects in the late 2012. These regulations imposed serious effects on cheaper off trade retailers and industry because it would affects the sale of 12% by volume alcohol which was offered at a price of £3.60. In return, it was up to the manufacturers and retailers to adjust their quality and prices to meet the requirements of the new law (Smith, Berry and Vrontis, 2001). The report shows that take home trade market has a promising future, but it is up to the manufacturers and retailers to put more energy and maintain steady growth in the market (Vrontis, 2003). In the current situation, approximately 40 percent of the total alcohol purchase in the United Kingdom comprise of take home market. The figure is on continuous rise because of the struggle being experienced in the on trade industry (Kotler, 2000). It was projected that the growth in the take home trade between 2007 and the year 2016 will be approximately 28.4 percents. The strong growth reported in 2011 was quite significant in boosting performance in the subsequent five years. This is a promising scenario for the case of Animee beer therefore; the management must put up strategies to increase their market share. 3.0 Company Description 3.1 A Brief Company Description Molson Coors has a heritage of 350 years brewing period. The lasting ties to drinkers as well as, modern business operations have made the company to be recognized as a global leader in the brewing industry. Molson Coors Brewing Company is a holding corporation operating in about five regions namely the United States, the United Kingdom, Canada, Central Europe, as well as, MCI. As a renowned brewer, the company has diverse portfolio of products which are either signature brands, partnered brands or owned brand. Signature brands include Molson Canadian, Coors Light, Staropramen and Carling. Craft specialty brands are Creemore Springs, Blue Moon, DoOM Bar and Cobra. Molson Coors Brewing Company (UK) operates in both Ireland and the United Kingdom. The Molson Coors International (MCI) operates in other parts of the world alongside subsidiaries that are non-operating. Molson Coors acquired StarBev and Irelands Franciscan Well brewery in June 2012 and January 2013 respectively. The company has several successful ladies brands but suffered a setback after the Animee beer brand failed acquire significant market share within four months of its launch. This marketing plan is aimed at devising best strategies to boost the performance of Animee beer within the ladies market segment. 3.2. A Brief Brand Description: Animee Beer This is a lagers beer which was developed by Molson Coors to specifically serve the ladies market segment. After its introduction, the sales volume on supermarket shelves within a period of four months was very low at approximately £300,000. The brand has three flours one of which has ABV range of 4 percent and contributed to £67,746 of the sales volume, Crisp Rose flavor contributed to £106,000 of sales and finally, the Zesty Lemon flavor whose sale volume within the four months was £117,000. The total sale revenue on the brand was quite low compared to Molson Coors stablemate Carling Chrome brand which managed to hit a total sales volume of £1.9m within five months period after inception. Currently, Animee brand is stocked by large supermarket chains such as Ocado, Morrisons and Tesco (The Grocer, 2012). Basically the main objective for the development of Animee brand was to bridge the gap of £396m which comprised of 17 percents of women who drink beer in the U.K market. There are marketing plans that have been put in place to support the product entry into the market such as the £2m investments on sampling and outdoor advertising. Sampling was mainly done in Morrisons, Tesco, Tony & Guy hair dressing among other locations where women could easily access the product. The Company also established a Facebook fun page for the Animee brand. In fact, there is need for much activity to ensure success of the brand in the market. 3.3 The strategic position of Animee Beer Brand There are three main goals that positions Animee Beer Brand for the Molson Coors Company. These include: To remain the market leader in terms of innovative product introduction, as well as, successful launching of the product. To satisfy and strengthens ladies market in take home alcoholic beverage market To increase sales volume of Animee brand by more than 20 percent To position the brand and acquire the largest market share (5%) of women who are beer drinkers. 4.0 The United Kingdom Beer Industry The United Kingdom has more than 25 million drinkers and it is approximated that 17 percent are ladies. The industry has contributed more than 700,000 employment opportunities with over £18 billion annual retail value. With this massive sales volume, it implies that beers are the most favorite alcoholic drink in the United Kingdom. There are over 3000 domestic and international brands sold in the U.K market. United Kingdom has 200,000 licensed premise, 600 micro breweries and 650 operating breweries. Beer is a major export in the country and there are over 2.5million points of beer drunk daily in the overseas market. In fact, the Brewing industry contributes approximately £6 billion annually to the British economy in inform of duty and Value added taxes. 5.0 Market Analysis Molson Coors Breweries compete by offering wide range of alcoholic drinks. The alcoholic beverage types include spirits, liquors, wines and beers. In all these categories, they exhibit specific target market and demography. In the recent past, a shift occurred where the border between audiences in the alcohol market was burred. As discussed earlier in the plan, there are three main components of beer market namely specialty brand, imports and domestic brands. For many years, Molson Coors has been a serious competitor in both domestic and international brands. As a boost to the existing market, the company launched one of the most pragmatic brands known as Animee beer which was designed as a feminine brand for the domestic market. The competition in the beer market is extensive and intensive within the domestic and overseas market (Cateora and Ghauri, 2000). In fact, a regression trend is being experienced in the U.K beer market as opposed to other alcohol brands. 5.1 Competition The three main competitors as discussed below: 5.1.1 Carlsberg Breweries A/S: It is ranked fourth in terms of brewery size worldwide. They have over 80 Breweries worldwide. They manufacture over 500 brands and sell big brand names such as Baltika, Tuborg and Calsberg. Carlsberg beer Copenhagen was introduced with the main aim of targeting women market. It has pink stuff and condescending flowers, however marketed as a gender neutral brand. This strategy contributed significantly in clinching significant market share. As shown above, they command larger market share, high quality brands accepted by large customer base and have been registering remarkable growth in terms of profitability and sales volume. The company has wealth of resources and capital for expansion and massive sales strategy. They have a strong brand image and company name. They brands target a wider market segments both men and women. 5.1.1.1 Strength and Weakness Strength: Analysis suggests that Carlsberg group has better profitability and sales than its competitors in the market. They have a strong brand image, distribution network and good product quality. They also have a strong financial position to support they innovation and expansion strategy. Weaknesses: Carlsberg is exposed to problems of regulatory changes and foreign exchange fluctuations. However, they have new opportunities for expansion such as Indo China and Thailand market. 5.1.2 Heineken N.V. This is another giant brewing company globally. Its beer is sold in a signature green bottle all over the world. They have over 140 breweries spread in more than 70 countries across the world. Kingfisher and Amstel are its famous brands. They also have 170 specialties, regional and international brands. 5.1.2.1 Strengths and Weakness Strength: Heineken is branded as a superior quality beer with premium pricing. They have traditional roots dating back in 1863 as a superior quality beer. In terms of global market share, they are ranked the second world largest with 5.6 billion liters and Anheuser-Busch being the leading at 10 billion liters. They also have 90 percent of its advertisements done through commercials and television. Weaknesses: They do not influence the way licensees’ market their local brands. Foreign market has a different perception of Heineken brands. Their marketing system with the foreign markets is inconsistent. Currently, they are registering declining sales volume and insignificant market share within the Germany market. 5.1.3 Anheuser-Busch InBev SA/NV This is the world leading beer manufacturer in terms of volume with a production volume of 10.5 billion gallons. Their brewing and industry output was widened after purchasing US’s Anheuser – Busch (A-B) at a cost of $52 billion. They have over 200 brands- global (Beck’s), regional (Leffe) and local (skol). They operate in over 20 countries around the world. 5.1.3.1 Strength and Weaknesses Strength: The company has strong brand image and company name. They also have a diversified product portfolio, large production capacity and command large market share. They are very profitable with exceptional sales performance. Weaknesses: Inconsistent marketing strategies and the recent unfolding issues with regards to the post retirement benefits which were not funded. They have suffered setback from imposed regulations, particularly, on the advertising strategies. 6.0 Product Offering Molson Coors offers several products. There is the Coors Light which is the largest growing beer brands globally. This is a brand which is consumed in over 25 countries around the world. There is also the Carling brand which for the last 30 years has been the best selling larger brand and is manufactured using 100% British Barley. Alternatively, the Molson Canadian brand provides the best offer because it is made out of prairie barley, pure water with no preservative added. There is also the Staropramen which is the Central Europe’s Flag ship brand is also sold in approximately 30 countries around the world. 6.1 Signature Brands Blue Moon: This is medium bodied, refreshing and unfiltered ale beer. It has uniquely complex tastes of orange peels and fresh coriander. Blue Moon brand was established in 1995. Carling: This is the bestselling brand in Britain. It has a perfect balance of bitterness and sweetness taste. Made from 100 percent British Barley and a perfect hop inclusion to balance the bitterness. Water used in the production is Burton Upon Trent water Cobra Brand: This is another brand offered in 4.8 % ABV packaged and 4.3 percent Draught. It is browed using Indian recipe and has a modern twist, as well as, extra smooth taste. It exhibits refreshment of lager and smoothness of ale beer. Coors Light: This is another beer brand with 4.0 to 4.2 percent ABV. It is meant for ice cold refreshment and ranked as the rapidly growing light beer globally. Keystone Light: This is a brand introduced back in 1989 and has ABV of 4.2 percent. It is crisp, drinkable and light bodied beer with a smooth taste. MGD 64: This has 2.8 percent ABV. It has crisps flavors, fresh and helps in maintaining sense of balance Miller High Life: This has 4.7 percent by volume. It has rich heritage since its establishment in 1903 Miller Lite: This has 4.2 percent by ABV. It is characterized by great tasting and less filling. Molson Canadian: This has ABV of 5 percent made in Canada. Molson Dry: Has 5.5 percent ABV. Other signature brands include Doom Bar, Staropramen, Rickard’s Red, Molson M and Molson Export 6.2 Portfolio and Partner Brands Portfolio Brand Aguila Carling Zest Winter Chalky's Bark Amstel light Caeling Zest Summer Chalky's Bite Apatinsko Burgasko Cobra Astika Branik Light King Cobra Astika Dark Branik Lager Cobra Zero Bergenbier Branik 11 Coors Banquet Bergenbier Fresh Borsodi Polo Coors Light Iced T Caffrey's Borsodi Fris Lemon Coors Light Carling Borsodi Friss Apple Coors Non Alcoholic Bergenbier Non Alcoholic Borsodi Buza Corona Extra Bergenbier Unfiltered Borsodi Borostyan Cremore Springs Blue Moon Borsod Bivaly Cristal Bohemian Borsodi Cusquena Doom Bar Extra Gold Lager Fostres George Killian's Irish Red Granville Island Lager Hamm's Grolsch Heineken Worthington's White Shield Worthingtone's Creamflow Winterfest Vratisfest Tomuslav Steel Reserve High Gravity Staropramen Unfiltered Staropraneb Nealko Staropramen Decko Staropramen Lezack Staropraneb Granat Staropramen Dia Staropramen Cool Lemon Staropramen Grep Staropramen 11 Staropramen Sparks Sharp's Rickard's white Rickard's Red Rickard's Oakhouse Rickard's Dark Richard Blonde Fred Dog Peroni Nastro Azzurro Pilsner Pilsner Urquell Ozujsko Psenicno Ozujsko Lemon Ozujsko Grapefruit Ostravah Lager Ostravar Light Ozujsko Noroc Strong Norok Niksicko Tamno Niksicko Nik Gold Nik Cool Molson M Molson Ice Molson Golden Molson Export Molson Dry Molson Canadian Light Molson Canadian Molson Canadian 67 Molson Canadian 67 Sublime Milwaukee's Best Miller Light Miller High Life MGD 64 Mickey's Miller Chill Leinenkeugel's Fireside Nut Brown Keystone Premium Keystone Light Kamenitza Fresh Grapefruit Kamenitza Fresh Lemon Kamenitza Unfiltered Kamenitza Jelen Strong Jelen fresh lemon Jelen Jelen Cool Jelen Fresh Grapefruit Henry Weinhard's Private Reserve     Partner Brands Aguila     Amstel Light     Cristal     Corona Extra     Cusquena     Heineken     Mickey's     Peroni Nastro Azzurro     Pilsner Urquell     Tyskie     Grolsch     Singha     7.0 Key to success There are several factors that will be keys to success in devising the best strategies to support Animee Beer brand in the market. The plan is focused on an effective campaign that would enable the information to reach the ideal audience (Ladies), offer them adequate time to react to the information and all these should be achieved with the lowest cost possible. One of the important issues to be put in place is to create target audience for the marketing campaign which has already been done successfully (Peter and DonnellyJr, 2007). The goal is to accumulate significant number of ideal customer- women beer drinkers. The second stage in enhancing key to success is by making sure that the identified marketing source best fit the core or target audience. In order to make an effective campaign, the message to the audience will be relayed frequently at an interval. This is because a consistent message keeps the brand image at the top of the customer’s mind (Doyle, 2000). Another important aspect to ensure success is having the right campaign team, as well as, sending the right information to the general public. Such messages will elaborate on basic company information and the unique aspects of its business operations. Similarly, coupons and fliers will be distributed among customers to act as reminders besides newspaper, and radio adverts. A captivating campaign will be launched that surpass those of competitors 8.0 Critical Issues 8.1 SWOT Analysis of Molson Coors Breweries Strength: The Company is innovative and was able to survive the U.S prohibition by shifting to water bottling, before officially embarking to alcohol bottling business. They are the first company to develop the renowned aluminum cans. They have licensing agreement with leading brands in Canada such as Miller Genuine Draft. They reported an increase in revenue by 17.5 percent between 2008 and 2009. Profit increased by 90.2 percent in the year 2009 to $720.4 million. In 2007, they rolled out multicultural marketing, new advertising campaigns and introduction of new packaging designs. This was aimed at positioning Coors Light brand. The Coors Light Beer was launched in 2008 in Sweden. In 2009, 8, 10, 12 and 16 ounce Coors Banquet Cold Activated Cans and Coors Lights were launched in the United States. In addition, Carling beer brand established 99 calorie bottle beer. In the year 2009, overseas revenue besides United Kingdom and Canada was $118.8 million an increase of 28.2 percent compared to the previous year. Weaknesses: The Company relies on some few popular brands. This subjects them to vulnerable state particularly during hard economic times and low sales volumes. In 2009, the UK revenue declined by 8.6 percent, the U.S revenue also went down by 97 percent, Canada registered 9.8 percent slump whereas the overall company revenue was 36.5 percent low in 2009 compared to 2008. The company relies heavily on hops, barley, wheat and aluminum as the main raw materials however, in 2008; there was a dramatic increase in the price of raw materials. The United States beer market has the belief that beer belongs to lower and middle class society thus difficult to sell among high end consumers. Opportunities: There is Asian and Middle East Market as possible expansion regions. They can put up strategic alliance with foreign companies to spread risks. Other lines of products can be introduced such as gluten free beer, premium brands and organic beers. They can expand their range of products to diversify risks. Threats: They suffer from Stiff competition from Carlsberg, Ashai, Heineken and Anheuser-Busch InBev SA/NV. Increase in price of raw materials affected the company’s margin. There is a significant decline in the company’s ability to acquire raw materials. This will in turn affect the average margin. Other problems include economic recession and the perception that beer is unhealthy drink. 8.2 SWOT Analysis for Animee Beer Brand Strength: The brand is brewed in the U.K thus a perfect match for the domestic consumers. It is also economically friendly to women because of price due to local production. Its flavor and color is appealing to women. The brand has captures a significant portion of the market share. Weakness: Is a new brand competing against well established brands in the market. People are hesitant in testing new brands thus would make it difficult to achieve brand loyalty. Opportunities: The number of women drinkers in the U.K is large and not yet exhausted. The brand can also fit in eco-friendly environment. A fresh marketing approach can be initiated to establish brand loyalty among ladies. Threats: There is seasoned domestic beer in the market with well established connections. Animee Beer is competing against well developed brands with strong customer base. 8.3 Target Audience The target audience is women aged 19 years and above (Marital status not significant). Emphasis is placed on those residing in the United Kingdom both in the high end and downtown areas. They should be able to appreciate good quality alcoholic beverage and as well tour the brewery and buy products when made available to them. 9.0 Financials, Budget and Forecasts In this section, the plan will provide financial overview of Animee Beer brand with regards to the proposed marketing strategies. The main areas under this section include break even analysis, expense forecasts and sales forecast and their relationship with the marketing strategy (Cannon, 2008). We expect to grow sales from £300,000 in fourth months to approximately £ 500,000 on monthly basis. Expense will be held at less than 10 percent of total sales. 9.1 Break even analysis. In this analysis, the break even requires monthly sales revenue of £ 350,000 The monthly Break even revenue: £ 160,000 Main assumptions Percentage variable costs: 6percent Monthly fixed costs: £140,000 9.2 Sales Forecast In the first month of activity, team work will apply in ensuring successful execution of duties. Sampling will be organized in the major retail stores such as Tesco and Mark & Spencer Plc. We expect to receive some few contracts from potential clients in the second month. After four months of engagement, we will be in a position to identify weakness points in the marketing strategy and perform a comprehensive review. This sales forecast is drawn based on the assumption that demand for Animee beer will increase steadily over a period of time. This is so because after acquisition of the first portion of clients, more referrals will follow through word of mouth. This is projected to occur incrementally and steadily. Below is the Sales forecast for 2013 and 2014. Sales Forecast for 2013 and 2014   Year 2013 Year 2014 Sales Value (£) £3,200,000 £4,370,000 Others £0 £0 Total Sales (£) £3,200,000 £4,370,000   Year 2013 Year 2014 Cost of sales (£) £2,100,000 £2,890,000 It is projected that the company will maintain steady profitability between the year 2013 and the year 2014. All these are possible through the use of a well programmed marketing campaign. 9.3 Expense Forecast A budget for marketing expense will be adequate to boost the visibility of Animee Beer brand in the market. In the first quarter of activity, the budget will be slightly high so that vibrant performance can be registered however; the amount will be lowered over a period of time before a steady budget is created. The budget is projected to account for less than 10 percent of sales revenue. Marketing Expenses   Year 2013 Year 2014 Referral incentives £20,000 £40,000 Printed Materials £15,000 £18,000 Advertisements £200,000 £150,000 General Expenses £50,000 £70,000 Total Expenses £285,000 £278,000 % of sales 8.9% 6.4% 9.4 Controls The ultimate goal for the establishment of Animee Beer marketing plan is to provide guidance to the company on how to make the brand a successful one in the U.K market. In order to gauge the performance, the following key aspects will be closely monitored (Woods, 2003): Monthly and annual revenue; monthly and annual expenses; customer satisfaction and possible repeat businesses. Reference Cannon, J., P., 2008. Basic Marketing: A Global Managerial Approach. New York: McGraw-Hill. Cateora, P., R. and Ghauri, P., N., 2000. International Marketing- European Edition. London: McGraw-Hill Chris, L., and Angela, V., 2001. Beer branding in British and Czech companies: A comparative study. Marketing Intelligence & Planning, 19(5), pp.341 – 350 Doyle, P., 2000. Marketing Management and Strategy. New Jersey: Harlow Prentice Hall John, S., and Fu, G., 1997. Dual Branding: How Corporate Names Add Value. Journal of Product and Branding Management, 6(1), pp 40-48 Kotler, P., 2000. Marketing Management. The Millennium Edition. New Jersey: Prentice-Hall Peter, J., P. and Donnelly Jr., J., H., 2007. Marketing Management. New York: McGraw Hill. Smith, P., Berry, C. and Vrontis, D., 2001. STRATICS: Strategy and Tactics in Marketing. The Grocer., 2012. Animée Beer is Slow to win over the Ladies. Available at: http://www.thegrocer.co.uk/fmcg/drinks/beer-wine-and-spirits/anime-beer-is-slow-to-win-over-the-ladies/226850.article. [Accessed 18 April, 2013] Vrontis, D., 2003. McDonald’s. The Impact of the External Environment on its International Marketing Operations. Standardization, Adaptation or AdaptStandation?. International Journal of Management Cases, 6 (2), pp. 30-40. Woods, M., B., 2003. The Marketing Plan. A Handbook. New Jersey: Prentice-Hall. Read More