International American University Kings College architecting architecting future Kathmandu, Nepal
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Marketing plan on: TUBORG CLASSIC Coordinator: Mr. Sanat Neupane
Date Dat e of Submi ssion : July 12, 2013 Su bmi tted by:
Bikram Prajapati ID. No.: 13-S-3043
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Table of content 1.0 Executive summary ................................................................................................................................. 1 2.0 Situational Analysis ................................................................................................................................. 2
Strength ....................................................................................................................................... 3 Weakness.............................................. ...................................................... ....................................................................................... ................................. 4 Opportunity ................................................................................................................................. 4 Threat .......................................................................................................................................... 5 Analysis of marketing strategy ...................................................................................................................... 5
Objective ..................................................................................................................................... 5 Target market .............................................................................................................................. 6 Product offering........................................................................................................................... 6 Distribution.................................................................................................................................. 6 Pricing ......................................................................................................................................... 6 Market communication ............................................................................................................... 7 3.0 Recommended marketing strategy ........................................................................................................ 7
Objective ..................................................................................................................................... 7 Target market/ segmentation: ................................................... ................................................... 7 Product offering: Brief description of the new product ................................................ .............. 8 Positioning..................................................... ........................................................................................................... .............................................................................. ........................ 8
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Distribution Strategy: ............................................. ..................................................... ..................................................................... ................ 9 Pricing: ........................................................................................................................................ 9 Marketing communication .......................................................................................................... 9 3.1 Marketing research ............................................................................................................................... 10 3.2 Measuring marketing result .................................................................................................................. 10 Conclusion: .................................................................................................................................................. 11 References .................................................................................................................................................. 12
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1.0 Executive summary The following marketing plan forms the basis for the introduction o f an innovative new product p roduct 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 classic beer will be advertised as with the slogans “tuborg classis, heal th th conscious”. 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 m arket, to administrative personnel appreciative of good quality traditional beer. The corporate o r managerial segment will constitute those managers, who though aware of o f 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 an y 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 o f 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. 1 Prepared under MKT500 IAU Course Project Rubric Final
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 will be Rs 200000. Start-up assets required 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 craz y 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 bee r 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 alco hol it will takes market aggressively. The corporate and high class customer are increasing towards the beer.
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They are highly sensitivity to their image and reputation they will not like to have hav e 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. alcoho l. Society is also pushing towards having a h ealthy beer that is low in alcohol and tasty Thus, the company expects that when the product 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 an d 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. Strength 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. 3 Prepared under MKT500 IAU Course Project Rubric Final
Brand awareness: Tuborg is truly a cosmopolitan brand and present in more than 70 countries
around the world. It is the number one o ne beer brand in Asia. Tuborg T uborg is committed to music and fun, and therefore can be found at the biggest and best b est 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 h as growing in more Asia. There is not n ot 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 organiz e 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. Weakness Premium price: The tuborg beer is p remium 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 t he penetration rate is very low. There are many competitor comp etitor in the market, it takes certain time to penetrate p enetrate 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. Opportunity 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. 4 Prepared under MKT500 IAU Course Project Rubric Final
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 Ev en 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. Threat 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 weak nesses 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 ex isting foot print.
Analysis of marketing strategy Objective
Company‟s main objective is to provide the beer drinker with the highest quality product. Th ey 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 5 Prepared under MKT500 IAU Course Project Rubric Final
of the company worldwide. The first year obje ctive of the tuborg classic beer is too sold worth of Rs 70 lakh which is achievable objective for the company. Target market
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. Distribution
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. Pricing
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.
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Market communication
The marketing communication channel for beer market is relatively low because the government restrict to advertise through printed media and in t he TV. The beer company compan y 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 Objective
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 exp and all around the Nepal b y 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 a re 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 be er market in the china is very high. h igh. If the customer increase as our analysis anal ysis it is very equally chance to expand abroad also. The market of the beer is slowly increasing in this case aggressively marketing is needed. Target market/ segmentation:
The tuborg classic contain small amount of o f the alcohol so it market segment include the Beer for light drink lovers. The target market of tuborg cla ssic can be categorize as:
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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 Product offering: Brief description of the new product
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 p roduct is relate as with fun and happiness with friend. Positioning
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 be er try to make impact on consumer mind as” tuborg classic health he alth 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 8 Prepared under MKT500 IAU Course Project Rubric Final
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 offtrade). 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 d istribution 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 Pricing:
The price of the beer is premium p remium 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 a chievable 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 1015 %, The price of beer will be same around the Nepal. Marketing communication
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 9 Prepared under MKT500 IAU Course Project Rubric Final
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 kn ow 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 aw areness 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, 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 b ecoming brand loyal to the tuborg classic more ever they are influence to other to use this product due to t o the unique feature and great taste of the product.
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Conclusion: The keys to gorkha brewery brewer y 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 anal ysis as described above will provide insights on ways to adjust the overall plan for maximum effectiveness, brand popularity and p rogress 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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References
(2013, 7 9). Retrieved from www.alcoholcontents.com: h ttp://www.alcoholcontents.com/beer/ (2013, 7 8). Retrieved from www.khetan.com.np: http://www.khetan.com.np/gorkha.html (2013, 7 8). Retrieved from www.carlsberggroup.com: http://www.carlsberggroup.com/Markets/asia/Pages/Nepal.aspx (2013, 7 9). Retrieved from news.menshealth.com: h ttp://news.menshealth.com/the-best-hearthealthy-beverage/2011/11/18/ (2013, 7 9). Retrieved from www.sidel.com: http://www.sidel.com/about-sidel/inlinemagazine/beer-is-on-the-rise (2013, 7 9). Retrieved from www.theraven.com: http://www.theraven.com/beer.html (2013, 7 10). Retrieved from www.dobney.com: http://www.dobney.com/Research/market_metrics.htm (2013, 7 9). Retrieved from www.newbusinessage.com: http://www.newbusinessage.com/Sectoral/520 360, y. (2013, 7 9). Retrieved from marketing.hibu.com: http://marketing.hibu.com/Content/pdf/Marketing_360_Part_2_whitepaper-final.pdf Bhandhari, B. (2010, 8 20). The beer culture. Nepal: Nepal Republica media Pvt.Ltd. Kotler, P., & Keller, L. K. (13th edi). e di). Marketing Marketing Management. Prentice Hall. yellowbook, 3. (n.d.). marketing_360_part 2_white paper final.pdf , 4-7.
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