1.0 Executive
summary
The following marketing
plan forms the basis for the introduction of an innovative new product
called “TUBORG CLASSIC” by the GORKHA BREWERY which is a part of Carlsberg
group in Nepal. Tuborg classic is a soft beer providing great taste and quality
beer to consumers. It has alcohol percentage of 3.5%, with maintaining taste of
beer. Another feature of the beer is odorless. The Tuborg classic will be
available in 500 ml bottle and in the 200 ml can. The product will be unique
from other because it contains less alcohol percentage and no odor. The brand
is targeting at the consumers who prefer the soft taste of beer. Tuborg classic
beer will be advertised as with the slogans “tuborg classis, health
conscious”.
Our target markets will
primarily constitute the corporate and working class who appreciate good
quality traditional beer. Another target segment is women. The working class
will range from the miners, who constitute a large portion of the market, to
administrative personnel appreciative of good quality traditional beer. The
corporate or managerial segment will constitute those managers, who though
aware of their image and reputation, want to put aside their ties and jackets
after hours and/or on weekends to drink good healthy beer.
There are number of the company which produces and distribute the beer in all around the country. But there is no any beer at the market which contain less alcohol (3.5%) with a great taste in Nepal. So it will have a huge market.
There are number of the company which produces and distribute the beer in all around the country. But there is no any beer at the market which contain less alcohol (3.5%) with a great taste in Nepal. So it will have a huge market.
The distribution
channel for the product will be same as for another product of company.
Initially it will widely distribute in the restaurant and party, different
ceremony and the event. The classic beer will available in around the Nepal.
Direct marketing is essential and will be very much effective for tuborg
classic.
Based on the size of
the market and our define area the first year projection sales are around Rs 70
lakh. Among that the 500 ml bottle per 300 will sell around the 18000 pieces of
total amount Rs 5400000 and can of 200 ml of per price 180 will sell around
9000 is Rs 1620000. The annual operating cost will be around the Rs 5000000 and
after paying the vat, salary and other services the approximately profit will
be Rs 200000. Start-up assets required
and utilized included brewing plant and machinery, pick-ups, office furniture
and other required additional industry equipment.
2.0 Situational
Analysis
In recent years, the
total beer market has reduced in volume terms due to an array of negative press
surrounding health fears and government rule and regulation. In spite that Tuborg
enjoys a market share of approximately 50 per cent of the total beer market.
The Annual beer consumption per person is 2 liters in Nepal. This will shows
how much people are crazy about beer. The uses of the beer are increasing day
to day. People are shifting their loyals from hard wine to soft one and the new
product “tuborg classic” is a soft beer containing less percentage of the
alcohol. There are variety of beer in the market. Gorkha beverage produces Tuborg, Carlsberg, Royal
Danish Tuborg Strong, San Miguel, Gorkha, Invenio wine, and Red Bull in the
market. There are a lot of the company which produce a lot of beer with different
flavor. The current situation of Nepal beer market is little bit down. Most of
the beer contain odor and high percentage of alcohol and the government made a
rule and regulation to fine and punish the consumer if they found drunk during
driving and travelling through public transportation. In this case the beer
which has no odor and less amount of alcohol it will takes market aggressively.
The corporate and high class customer are increasing towards the beer. They are
highly sensitivity to their image and reputation they will not like to have
high alcohol contain beer. They like to have cool and best beer for them and
the tuborg classic is made for them.
Market summary
Traditionally, most
beer was consumed by males with only a small percentage consumed by women in
Nepal. Some women viewed beer as unhealthy or unsophisticated because it
contains the high amount of alcohol. Society is also pushing towards having a
healthy beer that is low in alcohol and tasty Thus, the company expects that
when the product ‘tuborg classic’ is launch into Nepal it would encourage women
to have a beer. Another aspect of marketing beer in Nepal is the Nepal culture
value and belief. Most of the people take beer as the part of their culture.
People like to have in every festival. This is will hugely increase the
consumption of the beer in Nepali market. Due to the unique feature and characteristics,
new style of bottling of classic beer it will attract the professional
people to consume the beer.
Strength, Weakness, Opportunity, Threat.
Analysis
Tubrog classic offer
several strength on which it is build, the most important strength of the
product is health awareness and diversified market segment. But the major
weakness is penetration in the market is very low.
Innovative product:
The tuborg classic beer is different from other beer that is available in the
market. It contains only less percentage of the alcohol and it is odorless. It
is manufacture for satisfied the need of the soft beer lover. It is categorize as
soft drink that can be consume by everyone at any time at everywhere.
Brand awareness:
Tuborg is truly a cosmopolitan brand and present in more than 70 countries
around the world. It is the number one beer brand in Asia. Tuborg is committed
to music and fun, and therefore can be found at the biggest and best music
festivals and concerts in Nepal.
Diversified market:
The international beer market has been on a consistently upward swing over the
past few years. Beer market has growing in more Asia. There is not only single
market for the beer it has international market, it is not targeted to any
particular geographic area.
Environment awareness:
The tuborg green fist is one festival that is organize by the tuborg to share
the information about environment. The most of the bottling and packaging use
the green color and its bottle can be reuse again and again.
Premium price:
The tuborg beer is premium in the price. It is costly than other beer available
in the market. It is possible that other beer will lower their price more than
it will affect the distribution of the product
Penetration in the
market may be low no easy availability: The tuborg is
distribute around the 70 country all around the world. It has strong presence
in certain area but the penetration rate is very low. There are many competitor
in the market, it takes certain time to penetrate the market. Flavor: Even the
tuborg manufacture many types of the beer. There are variety of the beer
available in the market. But the tuborg classic is available only in one
flavor.
Increasing demand for
low calorie beer: The people are demanding the low
calorie beer that is healthy for their health. The tuborg classic has the
alcohol percentage of 3.5 and it contain less percentage of the alcohol. In
this situation it will have a great chance to capture the market.
Asia- Beer-drinking
population increasing dramatically: The research shows
that the consumption of the beer are dramatically increase in the Asia than
other place. Even the market penetration is low it market is increasing in
china and Nepal. The premium customer in this place are increasing and their
craze about the beer are increasing. Most of the people are taking the beer as
their daily meal.
Rule and regulation of
the country: The main threat of the beer company is
the rule and regulation of the country. Increase in drink-driving laws or
increase in the age limit of alcohol. We cannot allow to advertise about the
beer through TV and printed media newspaper.
Competitor price:
there are number of the competitor in the market. The price of the beer of
competitor are low and they are advertising aggressively. The tuborg classic
beer cost Rs 300 for 500 ml
Company must analyze their strengths and
weaknesses in relation to the macro environmental factors that they face. Once
the demand is great enough diversion would benefit by moving to a large scale
mass production however to get to that point it need to get focused on their
target market and market to them successfully to create the demand, this can be
done by rotating different varieties, targeting higher end customers, expanding
the existing foot print.
Analysis of
marketing strategy
Company’s main
objective is to provide the beer drinker with the highest quality product. They
are trying to provide the best possible beer in all around the world. So that
people will continue to buy their beer after the original purchase, which will
turn their profits into long-term growth of the company worldwide. The first
year objective of the tuborg classic beer is too sold worth of Rs 70 lakh which
is achievable objective for the company.
Tuborg classic defines
its primilary market as young professional age of 21 to 30 because they prefer
premium beer. Secondary target market is business man who like to sit at the
corner of restaurant and want couple of beer after work with friend.
Product
offering:
Super high quality,
great testing light beer forever, the less percentage of alcohol than other
competitor beer. Tuborg classic is different in bottling compared to
competitors, Tuborg classic has been portrayed as the beer for daily
consumption.
The gorkha brewery distributed
all the product through the retail channel. They have dealer and retailer all
around the Nepal. The company uses different channel to communicate with the
consumer. They promote the various event and participate in the social work.
Their product are distribute in the restaurant, retail shop, departmental
store, tourist targeted area.
Tuborg is Premium
Quality Lager Beer of Volume 650ml, alc. 5.5% vol available in the market as a
price of Rs 215 .The tuborg classic is high premium beer which main objective
of pricing is to provide high quality beer contain less alcohol in the price RS
300 for 500 ml for bottle and for the can of 250 ml for RS 180.
Market
communication
The marketing
communication channel for beer market is relatively low because the government
restrict to advertise through printed media and in the TV. The beer company
advertising their product through organizing the various event. Tuborg organize
most of the festival in the Nepal. It is relating with the sport. To promote
themselves they use various concert. They use direct marketing channel to
promote their product.
3.0
Recommended marketing strategy
The objective of the
tubrog classic beer is to establish and maintain the 5% of market share in the
context of Nepal. It try to expand all around the Nepal by using brand
awareness of parent brand tuborg beer. The objective should be maintain the
premium price with maintaining the high quality of the beer. The first year
projection sales are Rs 70 lakh. Among that the 500 ml bottle per 300 will sell
around the 18000 piece of total amount Rs 5400000 and can of 200 ml of per
price 180 will sell around 9000 is 1620000. The second year objective is to
expand the business in the china. The beer market in the china is very high. If
the customer increase as our analysis it is very equally chance to expand
abroad also. The market of the beer is slowly increasing in this case
aggressively marketing is needed.
The tuborg classic
contain small amount of the alcohol so it market segment include the Beer for
light drink lovers. The target market of tuborg classic can be categorize as:
Demographics:
Age range: primarily targeted to 21 to 40, Gender: male and female, Income
level: Rs 30000 per month, Education: college and above, professional people,
manager Social class: middle to high level
Geographical:
all around the Nepal. Widely distribute in the central development region, Upper
middle class urban area, in the border of the India. The second year targeted
place is china.
Purchase behavior: Drinks
beer regularly, Take beer as daily meal, occasionally purchasing customer who
will become brand loyal, Purchase beer in the team
Psychographics:
Socially conscious and health conscious Family oriented Extroverted Brand
personality with sincerity
Tuborg classic will be
available in the 500 ml bottle and in the 200 ml in can in the market. The beer
will have same taste and color as tuborg beer its parent brand. It will have
unique characteristics as it contains less alcohol percentage (3.5%) and no
odor in beer. The product is relate as with fun and happiness with friend.
The position of the
beer is ultra-premium beer in the market. The parent brand is world best
selling beer, it has high reputation and it is beer market leader in the Nepal
It has high popularity in the market. It is best brand that contain less
alcohol percentage. This beer try to make impact on consumer mind as” tuborg
classic health conscious” The final position of tuborg beer in market can
categorize as:
Target audience: middle
class to upper class, educated people, Frame of reference: premium beer lover,
soft beer lover, Price range: premium price
Point of difference:
less amount of the alcohol, high quality beer, and focus on personalized
marketing, bottling is unique, involve in social activities and promote
different event.
Distribution
Strategy:
We will be
concentrating on two Distribution channels; Wholesale and Retail. (On-trade and
off-trade). The distribution plan is to increase the sell volume by expanding
distribution channel in the country. Merging with parent brands tuborg beer can
be advantageous as it is strong international brands with good image and
distribution networks. We can target Top hotels to small restaurants in an
on-trade scale with various retail stores in off-trade scale. Various aspects
like transportation, location near markets, availability are kept in mind when
forming a breweries distribution center
The price of the beer
is premium price and it is same all around the Nepal. The first year sales
forecast of the tuborg classic beer is 18000 unit of bottle and 9000 unit of
can beer. Analyzing the potential market of the beer it is achievable in the
following year. The total cost of production for one case (12 bottle) is around
Rs 3300. Then we set the price of per bottle is Rs 300.
Pricing strategy: The
price is Rs 300 per bottle and Rs 180 per can of beer., The whole sale price is
around 250 per bottle and 120 per can., The distributor and retail has
commission around 10- 15 %, The price of beer will be same around the Nepal.
To achieve the desire
objective the company have to communicate regularly with the customer.
According to Nepal law we cannot use printed media and TV broadcast. So the
best way to market the product is direct marketing. The tuborg beer organize different
event to promote the product. To interact with customer we can promote the
sport. We can market our product through official website, YouTube, organizing
various sport, musical event and also being visible in festival by giving some
discount to customer.
3.1 Marketing research
We need to measure the
result of marketing plan because it is necessary to know whether the
communication are reaching towards the targeted market segment. Observational
research on a particular two or three retail store, to identify how many people
consume tuborg classic beer, we can also use focus group research, to identify
how the taste of the beer is and their reaction about whether they will buy
next time or not, we can use survey research on various dealer, we can extract
data about how many beer are sold per month. We can run survey by asking people
about their view on tuborg classic beer. Brand awareness research help us to
determine the effectiveness of the plan. Finally we use customer satisfaction
studies to gauge market reaction.
3.2 Measuring
marketing result
Marketing activities can be measured using a variety of
benchmarks that have various applications within an integrated marketing plan.
It helps to analyze the progress on marketing. In this course project I did
marketing research situation analysis, market penetration analysis, brand
awareness analysis, customer satisfaction analysis, SWOT analysis and so on. I
found that the market penetration is low but the product establish strong brand
image among the targeted customer. Customer are satisfied by its taste and
quality. They are becoming brand loyal to the tuborg classic more ever they are
influence to other to use this product due to the unique feature and great
taste of the product.
Conclusion:
The
keys to gorkha brewery success will undoubtedly be effective market
segmentation through identification of several niche markets and implementation
strategies. Along these lines the company intends to implement advertising,
personal selling and direct marketing strategies aimed at the target markets.
The tuborg classic beer contain alcohol percentage 3.5 and it is odorless. The number
of the people using beer is increasing day to day. They are searching for light
soft beer and odorless and tuborg classic beer is for them. The consumption of
beer specially increase in the festival people are taking beer in every
festival. The woman are increasing in the beer market and they are taking beer
as daily meal. It suggest that the beer market is increasing in slow pace.
The evaluation and
analysis as described above will provide insights on ways to adjust the overall
plan for maximum effectiveness, brand popularity and progress on the marketing
plan. Tuborg classic has to evaluate their market annually whether they meet
targeted objective or not. They have to market aggressively and have to
maintain regular communication with customer. They have to use different survey
to analyze the brand awareness between consumers. Hence the above describe
marketing plan for tuborg classic is very much effective and that plan should
be evaluate time to time.
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