James Boag Marketing Report

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James Boag Premium
“What would you like to drink today?”

Strategic Marketing Planning
MBA 9006 Marketing
Semester 1, 2008

Table Of Contents Page

Executive Summary:3

The beer market:4

Market share:5

Financial overview:5

Strategic Gap:7

Strategic Positioning:8

Product Life cycle:8
Boston Consulting Group and GE/McKinsey Matrix:9
Competitive Advantage:10
Ansoff Product – Market Mix:11

Marketing Strategy:12

Target Market:12

Brand Positioning:13

Product Strategy:15

Pricing Strategy:15

Distribution Strategy:16

Integrated Marketing Communication Strategy:17

Point of Purchase and Packaging17
Public Relations18

Marketing Budget:18


Evaluation and control:19



Executive Summary:

Beer sales in Australia have been showing a downward trend, with the exception of the premium beer segment which has shown a strong growth of 9% annually. The James Boag premium beer has established itself as the #2 brand of premium beer in Australia. Building on our strategic acquisition of James Boag we hope to continue increasing our market share of this growing premium beer segment by exploiting and building further on James Boag brand equity.

In 2007, 78% of our sales revenue was generated from beer, thus protecting this segment becomes crucially important for us to maintain our financial profits. Beer sales revenue has been growing at 5% pa for the previous years. With the increased drive on marketing for the James Boag brand we hope to capture a healthy share of the growing premium beer segment and also enhance this growth to 6% pa for the forecasted periods of 2008-2010.

As the premium beer segment is in a growth phase, James Boag premium beer is strategically placed as a “Star”. Increased investments towards building the brand and increasing market penetration would help generate greater financial profits. However this strategy would require an increase in marketing expenditures to the tuneA$54 million in 2008, a rise of 10% pa compared to the previous average of 2%pa.This increase in expenditure would allow us increase our total market share of James Boag premium beer to 18% from its present 9%.

This Strategic marketing plan proposes a strategy to not only meet financial objectives, but also to reinforce, and increase brand awareness. Capturing market share by highlighting differentiated value, as against devaluing our price, would be the main focus of our growth strategy. The new product development of the James Boag premium light would help capture the growing female beer patron segment. Introduction of Casks and Draught beers at pubs and restaurants would further strengthen the availability, market share and brand image of our range.

For our James Boag range we would introduce specially embossed serving glasses, distinctive packaging, associating the range with other premium luxury bands, targeting corporate events and membership boxes at premium sport events, would be some of the key strategies.

In terms of pricing, we would like to maintain our present price of A$50 per case, in order to communicate the premium status, and also indicate the price –value relationship of our brand. This plan also exhibits a staggered implementation, evaluation and control plan for our organization over the periods 2008-2010. Success of the implementation would be closed monitored by clearly defined performance indicators.

The beer market:

The beer market has lost some its share to wines and other healthier alternatives. However, though the beer market in general is declining in share, the premium beer market has shown an increase in its share value since 2002 till present. Data monitor 2006 (Appendix A: Exhibit 1) Beer in Australia gives the total value of the beer market segment in Australia at $3,939...
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