Foster’s Group Ltd has experienced a significant decrease in profits in recent years. However, its portfolio of ciders is increasingly becoming a significant point of revenue for the company. This report will focus on Strongbow Cider and detail the new marketing strategies for the organisation, which focus on improving brand awareness and introducing a new product into Strongbow’s cider range. Ultimately, this will create competitive advantage and improve the financial performance of the company.
Currently Strongbow cider is positioned in the growth stage of the product life cycle. Although pre-existing in the maturity stage, it was not performing to its utmost potential and achieving ideal revenue. Therefore, Strongbow has regressed to the growth stage of its lifecycle, which allows for decisions to be made to develop and market the product more successfully to improve financial growth and stability.
The predominant consumers of this product can be defined as ‘young adults’, aged between 18 to 25 years. They are generally university students who have low but dispensable income and, because they are recreationally orientated and prioritise drinking as a social activity, they are keen to spend their money on this product. However, interest and excitement needs to be rejuvenated around Strongbow cider to maintain the attention of the young demographic.
Consequently, the most noteworthy strategy to be discussed is the proposal to introduce a ‘Peach Flavoured Cider’ to the already well-established cider range. The product benefit advantage is that none of Strongbow’s main competitors have introduced a peach flavour to their cider range. Therefore, this will create interest in our current and potential consumers, and allow this company to gain first-mover advantage. Introducing an entirely new product to the Strongbow range will rejuvenate the brand and spark interest in our target market.
Introducing a new product can consequently lead to significant financial loss. If creating awareness amongst consumers of the product is not successful then the product will fail. However, product bundling, maintaining a competitive price suitable to our target market, making the physical distribution more cost effective, and promotion through public advertising campaigns, are the strategies to be discussed in this report and will ensure the product achieves monetary success.
5.0 Situational Analysis7
5.1 SWOT Analysis Matrix7
5.2Customer Analysis Table8
5.3Competitor Analysis Table9
10.0 Implementation and Control Table16
5.1 Company Overview
Foster’s Group Ltd (“Foster’s”) is one of the largest brewing organisations in the world, mainly manufacturing beer products. Thus, the large part of Foster’s revenue derives from the separate business, Carlton United Brewers, which joined with Foster’s in 1907. Along with its beer commodities, Foster’s also produces spirits (e.g. Black Jack Bourbon Whisky and Karloff Vodka) and non-alcoholic drinks (e.g. Cascade products and Torquay Mineral Water). Furthermore, cider and RTD’s are notable additions to their business portfolio. Although their cider products are considered a small part of the Foster’s business portfolio, they hold three of the most popular cider brands in Australia including Bulmer’s, Mercury and Strongbow, which are rising to become significant products of the company.
It is known that Foster’s employs 2000 people, predominantly in Australia, with its Senior Management Team made up of 11 figures responsible for the day-to-day running of the company. Furthermore, Foster’s Board of Director’s is accountable for...