...SABMiller case study 2009. SIAMAK MOULAEIFAR 20207133 Introduction: SABMiller (SAB) plc is the second largest brewers in the world with brewing interests or distribution agreements in over 75 countries across six continents. The group’s brands include premium international beers such as Miller Genuine Draft, Peroni Nastro Azzurro and Pilsner Urquell, as well as an exceptional range of market leading local brands also SABMiller is one of the world’s largest bottlers of Coca-Cola products. (The SAB Miller, 2009) Exhibit below provides a summary scope of SABMiller operation today. (Below figures refer to year ended 31 March 2009) Source: www.sabmiller.com The purpose of this report is to discuss the strategic position of SABMiller in 2009 (SWOT analysis), the SABMiller acquisition strategy in particular the acquisition of Miller in 2002 along with issues rose in acquisition. It will also set out to recommend a strategic development plan for future. The strategic position of SABMiller in 2009 Understanding the strategic position is concerned with identifying the impact on strategy of the external environment, an organisation’s strategic capability (resource and competent) and the expectations and influence of stakeholders. (Johnson & schools & Whittington, 2008) The strategic position that SABMiller has chosen to follow is to continue to protect and further develop its operations, whilst investing for growth in its international beer business, several...
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...developing markets, first in Africa and then in other parts of the world. Following pressure from investors to acquire a brewery in a developed market it acquired Miller in 2002 to become SABMiller and the second largest brewer by volume in the world. This case study explains the business's development. It shows how the strategy has changed with time and circumstances and provides the opportunity to consider its future at both the corporate and competitive strategy levels. ••• Introduction In 2007 SABMiller, the renamed South African Breweries following its acquisition of the American brewer Miller in 2002, had become the second largest brewer by volume in the world. It still vied with Anheuser- Busch. its principal competitor; having dropped back to third place in 2005 it reclaimed the number two position following its conclusion of a US$7.8bn (~6.2bn) deal to take over Grupo Empresarial Bavaira, South America's second largest brewer. In the 2006 annual report SABMiller outlined four strategic priorities upon which its success depended: 'Creating a balanced and attractive global spread of businesses .... Developing strong relevant brand portfolios in the relevant market .... Constantly raising the performance of the local businesses . . . . Leveraging our global scale.' This statement of strategy may be seen as a synthesis of the learning the company has developed over its history, first weathering the political crises of twentieth-century South African...
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...Table of Content Question 1 3 PEST analysis 3 Porter’s 5 forces 5 Question 2 6 Michael Porter's Generic Competitive Strategies 6 Threshold Resources 7 Core Resources 7 Question 3 8 Ansoff Matrix 8 Market penetration 9 Product development and Market development 9 Organic development 10 Question 4 10 Johnson and Scholes framework of Suitability, Feasibility and Acceptability 11 SABMiller’s strategic priorities: 11 Constraint of acquisitions 13 Reference 14 Question 1 Using information exclusively from the European Brewing Industry and SABMiller cases as supplied and appropriate models from the course analyse the external environment in which SABMiller operated in 2010. After conducted a series of cross broader mergers and acquisitions SABMiller successfully become the second largest brewer by volume in the world. SABMiller is now operating worldwide: Latin America, Europe, North America, Africa, Asia, and South Africa. Nevertheless, the environmental condition and potential of growth vary between each region (Blee and Whittington, 2010). European brewing industry was one of the world’s major beer consumption regions. Recent years, the market has come into mature stage of the industry life cycle and demand is now decreasing (Euromonitor, 2010). PEST analysis and Porter five forces model are the appropriate methods to evaluate external environment on European Brewing Industry (Johnson...
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...ukessays.com http://www.ukessays.com/essays/business-strategy/business-external-analysis.php Business external analysis Need help? ☎ 0115 966 7955 Identify SABMiller's Strategic position: In order to Identify the company's position; it is important to carry out its Business external analysis; it is also essential to identify its core competences and capabilities as well as stakeholder expectations in order to successfully identify the company's strategic position. SABMiller's External Analysis: In order to asses SABMiller's external analysis; I have constructed a PESTEL analysis (appendix 1); Porters 5 forces (appendix 2); THE BCG matrix (appendix 3) and its competition Analysis (appendix 4). After conducting Porter's five forces of the Brewing Industry; I have found many interesting outcomes relating to SABMiller as the overall markets of the brewing industry aren't clearly attractive; its performance depends on the ability to expand its market share and exploit opportunities in the emerging markets. However, the brewing industry in growing markets, which SABMiller operates, is highly attractive but not for new entrants; it's especially attractive for the dominant players in the Industry; which in this case SABMiller is one of them. After analysing my Porter's 5 forces; it is conclusive that it would be extremely hard for new entrants to compete in these emerging markets due to the high dominance of the main competitors. I have also observed other good points...
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...Grolsch Analysis In November of 2007, SAB Miller purchased Royal Grolsch N.V. to develop their premium beer product line. Grolsch has two main brand families: Grolsch premium Lager and Amsterdam. The takeover gives SAB Miller the ability to attack the premium beer market with an established and standardized brand that has grown globally (21st largest global brand in 2007) with a differentiated taste and packaging strategy. In this analysis, I will evaluate the reasons for Grolsch’s global expansion, their ability to adapt their pricing, distribution, advertising, and distribution to global demand and their strategy to evaluate the potential of entering new markets with MABA (Market Attractiveness, Business Assessment framework). I will also suggest a strategy moving forward under SAB Miller’s command. Reasons for Global Expansion One reason Grolsch went global was to reduce the company's reliance on local and national markets. In the 1960s-70s, the domestic market in the Netherlands began to shrink as Heineken and Amstel merged and took ownership of 50% of the Dutch market and 70% of exports. In addition, according to Exhibit 13, total consumption in the Netherlands decreased from 2000 (13.23 Million Hls) to 2005 (12.75 million Hls). In 2007, Grolsch’s home market of the Netherlands accounted for only half of its total volume and 65% of its revenue. Grolsch only owned 13% of the volume in the Netherlands alongside Bavaria (17%), Heineken/Amstel (46%), and Interbrew (14%)...
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...brands. In 1990, Eastern Europe started opening up which resulted an investment in Poland & Russia. Although Gorlsch acquired aforesaid brands Wickuler was sold to to another German brand while Bass bought Ruddles for its distribution in UK. In Poland Gorlsch took over one brewery which had to be sold due to less profitability. Asian financial crisis & devaluation of Ruble in Russia forced Gorlsch to focus on developed markets. Gorlsch entered France by setting up its own distributorship. Around 51% of the total volume of Gorlsch was from international market. Overall Gorlsch did better internationally although not best. Q.2 What are the Key Elements and Limitations on its emphasis on Adaptation? The key elements of the Grolsch adaptation strategy were in: Pricing Promotion Operations Distribution channels Grolsch wanted to position their brand as a premium lager and charged a higher price in comparison to the Netherland standard lager cost. However, Grolsch priced its products at a discount in 3 of its 6 largest foreign markets (US, Canada, and Australia) in comparison to competing imports in order to build market share. In France and Russia, Grolsch premium Lager was priced significantly higher because the Amsterdam was the key volume producer in these areas. Grolsch also adapted their advertising and...
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...position in the market. However, by 1990 SAB began investing in European markets.1 With growing recognition, SAB joined the London Stock Exchange in 1999 where it was able to raise money for acquisitions. Their first major acquisition was that of the Miller Brewing Company in North America in 2002. They bought Miller from the Altria Group for $3.4 Billion and changed their name from SAB to SABMiller.2 In 2003, SABMiller decided to further their expansion by acquiring the Italian brewer Birra Peroni. SABMiller bought 60% of the Italian brewer, which cost $280 million. At the time of the transaction, Graham Mackey, SABMiller’s CEO, explained to the press that they decided to buy Peroni because, “Italy is the only Western European country besides Spain where beer consumption is increasing” 3. He said SABMiller expected sales of Peroni, which had 25.2% of the Italian beer market, to increase. However, many analysts believed the price paid for Peroni was too high, which was 12.6 times Peroni’s operating cash flow. The deal also put SABMiller into another competitive market with their rival, Anheuser-Busch. This deal was the company’s first significant investment in Western Europe and allowed them to gain a necessary foundation in those markets. SABMiller’s spokesman Nick Chaloner explained “Birra Peroni will give SABMiller a large foothold in a growing market and provide a way to export SABMiller brands such as Pilsner Urquell and Miller Genuine Draft to Italy” 3. This not only...
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...BEER FOR ALL: SABMiller in Mozambique MGMT 205: International Business Discuss the local conditions that make SAB Miller’s traditional model unsuitable for Mozambique. SABMiller’s traditional model was based on repeating well-known processes worldwide and was heavily reliant on global supply chains. This approach proved to be the most suitable option for entering and operating in rich countries, where SAB Miller could benefit from short and cost-efficient supply chains. Furthermore, the high demand of commercially brewed beer, which was globally based on malted barley and hops, allowed them to pursue a mass-production strategy. In Mozambique on the other hand, the demand for commercially brewed beer was, with an average per capita consumption of 8 liters per year, very slim. Yet, there was a huge market that wanted to drink beer but could not afford to because many people in Mozambique were living in poverty. That is why the price was their major decision criterion when it came to buying alcoholic beverages. As a result SABMiller´s potential low-income customers would rather satisfy their needs with considerably less costly homebrewed beer or even dangerous alcohol from the unregulated and untaxed illicit alcohol market, than with SABMiller´s relatively expensive commercial beer. In order to offer a legal alternative, the brewery had to cut costs even more. Therefore the brewery had to start using locally grown cassava as a new raw material, as it was very costly to...
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...Addis Ababa University Collage of Business & Economics School of Commerce Bmmusiness Policy & Strategy Strategic Management & Business Policy Home Take Exam Instruction: Attempt All Questions (Each 10 Points) Case I: Rupbani Beverage Limited Rupbani Beverage Limited entered the Indian wine industry in 1975 by acquiring the Mastana Wine Company of Shimla and two other smaller wine companies at Kalka for Rs. 50 lakh. Despite hostility expressed by other wine makers and predictions that Rupbani would very soon fail as other outsiders such as Parminder Wine Company had, the entry succeeded. Rupbani Limited performed the unheard of feat of establishing a volume of 30 lakh cases within two years and taking the market share away from premium brands such as the National Wine Company of Bombay, Pearl Drink Limited of Pune and Syndicate Cola Limited of Madras. Rupbani advertised heavily and incurred Rs. 10 lakh in one year and standardised the taste of its wines with considerable success. It also invested Rs. 48 lakh in a large, new winery at Ahmedabad. A Rupbani Executive said, "By 1995, consumption of wine in India will be a liter per capita, compared with half a liter today." The industry reacted to Rupbani's presence by doubling and tripling advertising expenditure. ABC and Company began a costly campaign to market premium and varied wines while reducing marketing emphasis on its cheap wines such as Nahan Drinks and the Gola Beverage. ABC maintained its 25 percent market...
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...Shahzeb Quadiri L-56 1st floor Old Double Storey Building Lajpat Nagar- 4 New Delhi-110024 Email: shahzebquadiri@live.com Mobile: 9999228204; Date of Birth: 22/10/1989 ACADEMIC QUALIFICATIONS * PGDM (M) Marketing, Jaipuria Institute of Management, Noida, 2016 * B. Com (Honours), Bundelkhand University Jhansi, 2012, 58% * Higher Secondary Schooling, Milton Public school, Agra, 2007, 57% * Secondary Schooling, Cathedral College, Jhansi, 2005, 56% Professional Experience * Organization: Bajaj Electricals Ltd, Lucknow Apr’16-Present Designation: CP Territory Sales Head Responsibilities: Achieve sales and collection targets * To achieve sales targets directly, through distributors, dealers, institutions and long arm sales Personnel. * To introduce new products and monitor sales of products regularly. * To ensure timely collection of payments. * To execute the distribution plan of the territory. * To accompany the Distribution sales officer for order booking and Pre determined cycle. 2. Manage channel Partner - Network Expansion- Appointment of new dealers and distributors. - To maintain and nurture good business relations with distributors and retail trade partners and negotiate as per BEL terms. - Establish stock norms with distributors per market and ensure stocking levels and replenishment. - Monitor second sales of distributor and dealers. - Ensure Product merchandising...
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...Miller Brewing Co. In 2003, the Miller Brewing Company was in trouble. At the root of the company’s issues was a stagnant organizational culture. Organizational Culture is defined as “the set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments (Kreitner 62)”. Miller was not a priority to its former owner Philip Morris, and a number of marketing failures made matters worse. In 1994, the company accounted for 23% of the industry share and by the time Mr. Adami arrived, the share was down to 17% (Carter). The company was in decline and the focus was to manage the decline. Norman Adami was hired and immediately changed the culture of the company, bringing about a new sense of urgency as well as a more aggressive campaign mentality. Along with his style of leadership, Mr. Adami was persistent in recruiting experienced executives to surround him with an elite team. In result, the company has a higher level of morale and sales growth since 2004. Norman Adami recognized that the complacent nature of Miller was in a state of terminal decline and identified the need for a cultural overhaul. He led the cultural change with an incentive-based approach, removing the apathetic leaders and replacing them with self-motivated and competent leaders. Mr. Adami’s aggressive and innovative character encouraged his employees to achieve higher results, which improved the marketing...
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...Project International Marketing Submitted by: M2 Group 2 173 Varun Raj 047 Devdutt Bhatt 165 Swati Rakesh Choudhary 114 Poulomi Chatterjee 042 Barkha Dubey 170 Twinkle Wadhwa 028 Anupam Narayan Sharma Celebrating over 150 Years of Brewing Excellence! UBL has an association with brewing dating back over nine decades, starting with 5 breweries in South India in 1915. The popularity of their beers soon spread and within a short time, bullock carts carrying huge 'hogsheads' of Kingfisher became a familiar sight in Madras, the Nilgiris and Bangalore, the headquarters of United Breweries Ltd. Almost immediately, the brew from UB became a favourite, especially with the British troops. So began the history of Beer in India... From bullock cart-loaded barrels or 'hogheads' of frothing ale, the beer business has gone on to become the undisputed 'king' in the Indian beer market. UBL today boasts an impressive spread of own and contract manufacturing facilities throughout the country. Here, innovative, creative and aggressive marketing is complemented by a strong distribution network. A management focused on building brand equity on one hand and exploiting it to the hilt on the other. Kingfisher, the flagship brand of United Breweries and the best-selling Indian Lager worldwide, is now available in over 55 countries and is exported from the UK to 19 Continental European Markets and Canada and from...
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...North Carolina at Chapel Hill, been a visiting professor at Duke University and the Australian Graduate School of Management, and has two years of industry experience as Marketing Consultant for Bank of America. Professor Keller's general area of expertise lies in marketing strategy and planning. His specific research interest is in how understanding theories and concepts related to consumer behavior can improve marketing strategies. His research has been published in three of the major marketing journals -- the Journal of Marketing, the Journal of Marketing Research, and the Journal of Consumer Research. He also has served on the Editorial Review Boards of those journals. With over sixty published papers, his research has been widely cited and has received numerous awards. Professor Keller is acknowledged as one of the international leaders in the study of brands, branding, and strategic brand management. Actively involved with industry, he has worked on a variety of different types of marketing projects. He has served as a consultant and advisor to marketers for some of the world's most successful brands, including Accenture, American Express, Disney, Ford, Intel, Levi Strauss, Procter & Gamble, and SAB Miller. Additional...
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...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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...Year of establishment and very brief history Heineken International is a Dutch brewing company, founded in 1864 by Gerard Adriaan Heineken in Amsterdam. It owns over 190 breweries in more than 70 countries and employs approximately 85,000 people. Cruzcampo, Tiger Beer, Żywiec, Starobrno, Zagorka, Birra Moretti, Ochota, Murphy’s, Star and Heineken Pilsener are some of it’s well known brews all over the world. Milestones of Heineken history; 1864 Gerard Adriaan Heineken buys the Haystack brewery on February 15th 1873 On January 11, HEINEKEN’s Bierbrouwerij Maatschappij N.V (HBM) is established. 1889 HEINEKEN is honored with the "Diplome de Grand Prix" at the World’s Fair in Paris 1900 HEINEKEN imports first beer into Africa. 1932 HEINEKEN co-founds Malayan Breweries and starts to brew Tiger for the first time 1933 After 13 years of prohibition, Heineken® sets foot on American soil 1937 HEINEKEN’s Nederlandsch-Indische Bierbrouwerij Maatschappij, Multi Bintang, begins operation 1939 HEINEKEN is listed on the Dutch stock exchange 1946 HEINEKEN enters Nigeria 1968 HEINEKEN acquires Amstel, its major rival in The Netherlands 1974 HEINEKEN acquires a majority stake in the Dreher Group 1975 A new Dutch brewery opens in Zoeterwoude, the largest modern brewery in all Europe at the time. 1991 The former Amsterdam brewery on the Stadhouderskade is converted to a Heineken museum which was renamed Heineken Experience in 2001. 2003-20010 HEINEKEN acquires Brau Union...
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