Inbev Swot Analysis

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InBev

http://www.ias.org.uk- Alcohol and the Law

Mission:
‘consumers come first at InBev. Our promise is to create enduring bonds with consumers so that they enjoy our brands time and time again’. Vision:
‘to become the best beer company in a better world’.
Goal:
‘to strengthen our position in developed markets, and continue to maximise opportunities in high-growth markets.’

SWOT
Internal Factors:
Strengths
* Volume sold in 2007 in the UK – 10.8million hectolitres * 16.9% market share in UK
* InBev have 3 beverage plants in the UK – Magor, Samlesbury & Wellpark * Approximately 2300 staff in the UK
* Have some of the most leading brands of beer – including Boddington, Stella Artois, Heineken and Becks * Their sales of Becks Vier increased by 299% in the UK in 2007 from 2006. * Heineken is number 1 in the market with a 24.7% market share * Portfolio of more than 200 brands

*
Weaknesses
*

External Factors:
Opportunities
* Scream card
* Encourage brand loyalty – customers may see other well known brand with low prices (offer) and buy the substitute * Winning prizes – sending letters
*

Threats
* Competitors – Carling, Fosters, Grolsch and Kronenbourg 1664. * Happy hour – talks of ban
* Binge drinking – reducing promotion in supermarkets to help reduce binge drinking * Smoking ban
* Cannot buy alcohol after 12
* Credit crunch – less disposable income, more drinking at home – may drink less at home as it is a less social environment

PESTEL
Political
* Pressure on producers and sellers to be more socially responsible. * Talks to ban ‘Happy hour’
* Smoking ban – less people go drinking in pubs where they drink more than at home * Drink driving legislation
* Duty
* Binge drinking
* Glass ban

Environmental
* In 2005, 95.1% of UK waste was re-used or recycled, which is ahead of many companies in the food and beverage sector. * InBev have a commitment to light-weighting their packaging and to continue to innovate in this area without compromising their quality * InBev has reduced the amount of energy they need to produce a hectolitre of product by 12.4% in the UK. * Two of InBev’s sites in the UK generate their own electricity through Combined Heat and Power schemes, sometimes even exporting power to the National Grid.

Social – cultural values
* Wider consumer choice – wine etc
* Drinking less – better (people are more health conscious) * Responsible drinking
* Other leisure opportunities
*
Technological Advances
* Growth of ‘extra cold’ lager
* Growth of bottled beers
Economical
*

Legal
* The law performs a number of functions and regulates a range different settings and forms of * behaviour.
* 1. Licensing laws
* 2. Drinking in public places
* 3. Protection of children and young people
* 4. Abnormal drinking behaviour
* 5. Drinking and driving
* 6. Specific occupational groups
* 7. Sports events

Porter’s five forces
1/ Threat of new entrants
* Cobra – 10-15 years old

2/ threat of substitutes

3/ bargaining power of suppliers

4/ bargaining power of customers

Competitor analysis – Carlsberg
* Carlsberg group is the UK’s fourth largest brewer
* Have breweries in Leeds and Northampton – since 1973. * Been one of the UK’s leading lager brands since it was introduced to the British beer market in 1868. * Carlsberg’s sponsorship of football in the UK and internationally have made it a famous brand. * They merged with Allied Lyons brought the famous Tetley’s brand to the Carlsberg portfolio. * Tetley’s has been the same with the brewing of high quality ales for almost two centuries and the brand is well established as the beer of rugby.  * The Carlsberg Group is sponsor of the England football team, Liverpool Football Club and the FA Cup, and is a founding partner of...
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