Swot Analyse for Grolsch

SWOT analysis of Latvia and its market potential for Grolsch

Strengths

 Relative high budget for advertisement
 The brand is known in many countries in the world.
 Can be sold in groceries
 Market leader in some countries like “the Netherlands”

Weaknesses

 Price can be too high through export costs in comparison to Latvian beer
 Different languages
 Different currencies

Opportunities

 The taste of Grolsch – different from domestic beer
 Can be a market nicher because of higher price and different taste (“luxury “ brand”)
 More and more people drink beer
 Demographic changes

Threats

 Consumer drink the beer they are used too
 A lot of Latvian competitors
 There has to be a health warning on every advertisement
 Latvian people still get beer from Russia which is very cheap
 Government (e.g. import quotas)

Objectives and issues

 Increasing sales in Latvia
 How big should our market share be? At the beginning 5 %.

 How do we want to achieve this goal?

• Promotion  on billboards, advertising at bus stations, free gifts, Commercials, discounts, radio (creating a song e.g.)  “We want to give the people a special feeling”

• Price: high in comparison to Latvian beer but we can give discounts

• Place:  support of shops who sell Grolsch, supermarkets, bar, gas station, Restaurants

• Product:  services (e.g. give money back if beer doesn’t taste well) Variety of product

 First advertising “Grolsch coming soon” then export
 Market segments: Middle class (working people)

Based on the analysis we would advice the company to enter the market through export because it hast the lowest risk in comparison to a joint venture or direct