Saku Hbs Case Analysis
Case Analysis
Saku
Problem
Synopsis of the Situation
Saku offers products in six different product categories. Some of their products are doing well while sales of some products are declining. Certain segments are experiencing market growth while some others are close to stagnation. The company wants to determine a product portfolio for the next few years that will take advantage of opportunities for expansion without negatively impacting the current sales of its products.
Key Issues
Sales of Saku Originaal, the company’s trademark product, has been declining. Saku want to determine if the profit from exporting the product to neighboring countries such as Finland and Sweden will outweigh potential loss of domestic sales of this product to tourists from these countries. Since the growth of cider and long drinks markets is reaching saturation point, the company has to decide if it should reposition or discontinue these product lines. The company also has to take steps to increase its market share in the growing bottled water, soft drinks and imported beer segments.
Solutions
To increase sales of Saku Originaal, the company’s trademark product, Saku can export it to other countries. With 43% market share, Saku is the market leader in the domestic beer segment. With increased marketing and promotion of its premium beer brands in domestic market, especially to tourists, Saku should be able to make sure that its domestic sales is not impacted by the exports. Saku can consider discontinuing its beer products whose sales have been consistently poor. Saku can also consider introducing new beer brands catering to specific consumer age groups.
With 24% market share, Saku is leading the Cider market, with Tartu at 20% being the only significant competitor. Since the cider market is expected to stagnate after a couple of years, Saku can continue to offer these products but should not spend much money on this product.
Even though the soft drinks market is
Saku
Problem
Synopsis of the Situation
Saku offers products in six different product categories. Some of their products are doing well while sales of some products are declining. Certain segments are experiencing market growth while some others are close to stagnation. The company wants to determine a product portfolio for the next few years that will take advantage of opportunities for expansion without negatively impacting the current sales of its products.
Key Issues
Sales of Saku Originaal, the company’s trademark product, has been declining. Saku want to determine if the profit from exporting the product to neighboring countries such as Finland and Sweden will outweigh potential loss of domestic sales of this product to tourists from these countries. Since the growth of cider and long drinks markets is reaching saturation point, the company has to decide if it should reposition or discontinue these product lines. The company also has to take steps to increase its market share in the growing bottled water, soft drinks and imported beer segments.
Solutions
To increase sales of Saku Originaal, the company’s trademark product, Saku can export it to other countries. With 43% market share, Saku is the market leader in the domestic beer segment. With increased marketing and promotion of its premium beer brands in domestic market, especially to tourists, Saku should be able to make sure that its domestic sales is not impacted by the exports. Saku can consider discontinuing its beer products whose sales have been consistently poor. Saku can also consider introducing new beer brands catering to specific consumer age groups.
With 24% market share, Saku is leading the Cider market, with Tartu at 20% being the only significant competitor. Since the cider market is expected to stagnate after a couple of years, Saku can continue to offer these products but should not spend much money on this product.
Even though the soft drinks market is