The paper "Advertising of Carlsberg Inc" is an outstanding example of a marketing case study. Most beer brewing companies’ excellence flourishes and exists because of success in addressing market needs. These needs are a direct reflection of consumer behavior. Therefore they are considered as a vital component of any brewery’ s endeavor. Existence of businesses primarily is geared towards sustainable and continuous identification of consumer needs then formulating response plans to resolve the needs. Such requirements have steered brewing companies to incur massive expenses in intellect and effort to analyze consumer behavior in order to initiate effective marketing strategies which are appropriate in assisting the company in facilitating production and delivery efficiency. Perner (2006), raised arguments regarding consumer studies making organizations and companies to internalize recognize consumer issues which help in strengthening their marketing strategies.
These issues include, Consumer psychology on how they feel, reflect, choose and rationalize, between various substitute services and products, consumer psychology on how social groups affects their decision making, consumer behavior in the formulation of marketing decisions, consumer information processing abilities or knowledge limitations influence marketing outcome and their decisions, how effectiveness in marketing strategies help in connecting with consumer adaptation successfully, and how consumer decision strategies and enthusiasm varies between products considering their level of interest or importance. 2.0 Background Carlsberg is a worldwide company primarily engaged in the manufacture, distribution and sale of soft drinks and beer as well as other related activities.
Carlsberg is part of Carlsberg Group consisting of Royal Scandinavia A/S, Ejendomsaktieselskabet Tuborg, Combio A/S among others. The Carlsberg group total revenue surpasses 48,603 million and has approximately 28,466 employees (Bak 2005). The company inception is traced back to 1847 by Jacob Christian Jacobsen who started a brewery.
Carlsberg merged in 1970 with Tuborg a famous Danish brewery which was founded in 1873 to form the Carlsberg group. The group sales were 20.9 million hl of soft drink and 76.6 million hl of beer per year. According to Bak (2005), the growth of the company is mostly achieved as a result of expansion into foreign markets. The group operates 67 breweries in 40 countries, Eastern and Central Europe is the hub of the company’ s development and investment policy.
In this case paper, the focus is drawn on analysis of expansion strategies based on advertising tool (Bak 2005). Financial position Carlsberg breweries revenues amounted to 35,543 million in 2005 compared to 34,419 million the previous year with 3585 million as the operating profit attributed to spirited promotional campaigns is sports and corporate social responsibility. In the UK, beer is the most popular alcoholic drink, the total spending in 2003 accounted for 48%. In 2003, the beer market in the UK represented an 18.85bn GBP growth, this is as a result of both generally favourable economic and hot summer conditions.
Consolidated profit in 2006 was 1394 million compared to 1779 in 2005. The total balance sheet value was 42491 million compared to 44 777 within the same period representing a 5.1% reduction. Return on investment posted 9.2 % compared to 7.4% in 2005. The groups’ operating activities showed cash flow improvement from 2299 to 4824 million. UK's per capita consumption of beer despite media impressions of a binge-drinking culture is not unduly high, compared to total consumption volume. 3.0.
Environmental Audit SWOT has a long history as a technique in marketing and strategic analysis. Carlsberg strives to maximise its strengths in order to capitalise on new opportunities and win over competitive advantage. The company executives identify the five competitive forces which represent market realities and customer priorities, challenging choices and competitor strategies. The undertaken marketing strategies subsequently determine the relevance of core technical skills or competencies and organizational culture. The cultural feature’ s and competencies set the pace for deployment and designing of Carlsberg levers. The cultural features identified in this case study refer to the core values which helped Carlsberg compete and win such as flexibility, speed, and risk-taking.
Executives in Carlsberg were able to identify UK barriers for market entry, difficulties for competitors to emulate its strategies, how the firm will remain ahead of the competition and future competitors.
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