Saku Estonian
Product Portfolio Planning at
Estonia's Saku Brewery
PT1 Objective of the Case Study -> Application of marketing planning tools
-> Discuss the case using these tools Saku's Situation Saku is Estonia's biggest brewery.
It has been rated best-known beer brand.
Its complete beer portfolio makes 42.5% of the market. Ansoff Matrix Application of Tools The Analysis BCG Matrix The Answer in Brief 1. Cider and long drinks are clearly stars.
-> Invest to tranform into cash cows! 5. Water is poor dog with little potential.
-> Divest! 2. Domestic beer is already cash cow.
-> Keep investment (increase ads expenditure)! 3. Import beer segment is question mark.
-> Divest Guinness/Kilkenny 4. Soft drinks are clear poor dogs.
-> Divest! Detailed Recommendations Current Markets Segments Domestic Beer: 43% (leader)
Import beer: 18%
With Carlsberg (4th)
Tiny share with Guinness/Kilkenny
Cider: 24% (leader)
Long Drinks: 13% (leader)
Water: 15% (3rd)
Soft drinks: 4% (3rd) The Problem Sales of domestic flagship beer brand were falling from 48% (2002) to 42.5% (2003). The Question How should the product porfolio be transformed to address these changes and allow sustainable market success ? Product Lifecycle Too many different product types.
Beer is the main driver of their business. Reason for Originaal’s decrease may lie in internal product cannibalisation. Saku’s total beer sales increased while Originaal decreased. Recommendation is to focus on selected segments and divest from others.
Get rid of some of the smaller domestic beers (Tume, Hele, Presidenti).
Invest more in Cider and Long drinks. Especially long drinks because more small brands, hence may be easier to increase dominant position. Comment on Ads Expenditure Product Lifecycle Domestic beer is Saku's biggest market.
Decrease in sales may be related to decrease in advertisement expenditure:
4% reduction for Originaal
3% reduction total domestic beer brands Divesting from Kilkenny, Guinness,
Estonia's Saku Brewery
PT1 Objective of the Case Study -> Application of marketing planning tools
-> Discuss the case using these tools Saku's Situation Saku is Estonia's biggest brewery.
It has been rated best-known beer brand.
Its complete beer portfolio makes 42.5% of the market. Ansoff Matrix Application of Tools The Analysis BCG Matrix The Answer in Brief 1. Cider and long drinks are clearly stars.
-> Invest to tranform into cash cows! 5. Water is poor dog with little potential.
-> Divest! 2. Domestic beer is already cash cow.
-> Keep investment (increase ads expenditure)! 3. Import beer segment is question mark.
-> Divest Guinness/Kilkenny 4. Soft drinks are clear poor dogs.
-> Divest! Detailed Recommendations Current Markets Segments Domestic Beer: 43% (leader)
Import beer: 18%
With Carlsberg (4th)
Tiny share with Guinness/Kilkenny
Cider: 24% (leader)
Long Drinks: 13% (leader)
Water: 15% (3rd)
Soft drinks: 4% (3rd) The Problem Sales of domestic flagship beer brand were falling from 48% (2002) to 42.5% (2003). The Question How should the product porfolio be transformed to address these changes and allow sustainable market success ? Product Lifecycle Too many different product types.
Beer is the main driver of their business. Reason for Originaal’s decrease may lie in internal product cannibalisation. Saku’s total beer sales increased while Originaal decreased. Recommendation is to focus on selected segments and divest from others.
Get rid of some of the smaller domestic beers (Tume, Hele, Presidenti).
Invest more in Cider and Long drinks. Especially long drinks because more small brands, hence may be easier to increase dominant position. Comment on Ads Expenditure Product Lifecycle Domestic beer is Saku's biggest market.
Decrease in sales may be related to decrease in advertisement expenditure:
4% reduction for Originaal
3% reduction total domestic beer brands Divesting from Kilkenny, Guinness,