+ All Categories
Home > Documents > Milan van Niekerk Situation Analysis MKT€¦ · (Passport, Cider/Perry in Australia, 2017). Young...

Milan van Niekerk Situation Analysis MKT€¦ · (Passport, Cider/Perry in Australia, 2017). Young...

Date post: 18-Oct-2020
Category:
Upload: others
View: 0 times
Download: 0 times
Share this document with a friend
20
Somersby Cider Situation Analysis S5099963 By: Milan van Niekerk Introduction to Marketing – 1003 MKT Tutor: Angela Bowles Trimester 1, 2018
Transcript
Page 1: Milan van Niekerk Situation Analysis MKT€¦ · (Passport, Cider/Perry in Australia, 2017). Young individuals are they key consumers of cider today (Stainkamph, 2016). Being produced

Somersby CiderSituation Analysis

S5099963

By: Milan van Niekerk

Introduction to Marketing – 1003 MKT

Tutor: Angela Bowles Trimester 1, 2018

Page 2: Milan van Niekerk Situation Analysis MKT€¦ · (Passport, Cider/Perry in Australia, 2017). Young individuals are they key consumers of cider today (Stainkamph, 2016). Being produced

Milan van Niekerk

Somersby Cider Situational Analysis Page

2

TABLE OF CONTENTS

TABLE OF CONTENTS

Table of Contents ............................................................................. 2

Introduction and Company Background .................................................. 3 Introduction ........................................................................................... 3 Company Background ............................................................................... 3

Situation Analysis ............................................................................. 4 Market Analysis ....................................................................................... 4 Macro Environment Analysis ....................................................................... 5

Political Analysis ................................................................................... 5 Economic Analysis ................................................................................. 6 Social Analysis ...................................................................................... 7 Technological Analysis ........................................................................... 8 Legal Analysis ...................................................................................... 9 Environmental Analysis ........................................................................ 10

Micro Environment Analysis ...................................................................... 11 Company Analysis ............................................................................... 11 Competitor Analysis ............................................................................. 13 Competitive Market Summary .................................................................. 14 Consumer Analysis .............................................................................. 17 SWOT Analysis .................................................................................... 18

Recommendations/conclusion ............................................................. 19

Reference List ................................................................................ 19

Page 3: Milan van Niekerk Situation Analysis MKT€¦ · (Passport, Cider/Perry in Australia, 2017). Young individuals are they key consumers of cider today (Stainkamph, 2016). Being produced

INTRODUCTION AND COMPANY BACKGROUND

INTRODUCTION

With a current growth of 7% (passport, 2016), and sales of 111 million litres (Passport, 2016), the cider industry is now worth AUD1 billion (Passport,2016). In today's competitive marketplace, cider producers are required to thoroughly analyse and develop an understanding of Australian cider consumers to take advantage of the upward trend in consumption and the shift in Australian drinking culture. Young Australians are looking to be more conscious of what they consume (Stainkamph, 2016), and being the key consumer of cider (Passport, 2016), producers must adapt to these changes in order to maintain or increase market share. The purpose of this report is to understand the current situation of Somersby Cider in the Australian marketplace. To achieve this, this report will focus on the environmental influences on the product and a swot analysis will highlight areas for improvement and opportunity the company can adopt to succeed.

COMPANY BACKGROUND

In 2008, the Carlsberg Group brewed the very first Somersby Apple Cider, which was originally developed in Denmark, but has launched in over 46 international markets today (Carlsberg, Who Are We). Somersby Cider is currently Australia’s #1 selling Cider, dominating the market with 32.1% market share and growing (Passport, 2016).

The Carlsberg Group is a Danish company and one of the world’s leading breweries. Established in 1847, it continued to demonstrated convincing growth since with currently more than 41,000 employees, expansion into over 150 international markets and a revenue of AUD13,317 million over 140 brands worldwide (Carlsberg Group, Who We Are, Para 2,3)(Carlsberg Group, Investor Relations, Financial Statement 2017). The company aims to strengthen their current market positions and expand into new geographical markets with potential lo ng term growth opportunities, while delivering sustainable top-and-bottom line growth into the future (Carlsberg Group, Sail22). Carlsberg Group have adopted a ‘Together Towards Zero’ program to promote responsible drinking and a safe work place, as well as to minimise their environmental impact for a sustainable tomorrow (Carlsberg Group, Our Ambitions). Implementation of the company’s strategic plan, which promotes a ‘strong core, ‘winning culture’ and ‘position for growth’, will allow Carlsberg Group to deliver greater value to shareholders and continue along the path of an upward trend (Carlsberg Group, Sail ’22).

Page 4: Milan van Niekerk Situation Analysis MKT€¦ · (Passport, Cider/Perry in Australia, 2017). Young individuals are they key consumers of cider today (Stainkamph, 2016). Being produced

Milan van Niekerk

Somersby Cider Situational Analysis Page

4

SITUATION ANALYSIS

MARKET ANALYSIS

The Cider Production Industry in Australia has thrived, more than doubling over the past decade, regardless of a 14% drop in the consumption of alcohol overall in Australia (Smartcompany, 2018). The monopolistic market’s three main brand competitors consist of Somersby Cider (32.1%), Strongbow (17.7%) and Five Seeds (10.4%), however many smaller brands are entering the market rapidly with new craft ciders, and exhibiting alarming growth rates (Smartcompany, 2018)(Passport, 2016). A cider boom in 2016 highlighted that the growing availability of locally produced offerings and Australian produced ciders will prove a threat to the current market share of Somersby Cider, an imported product, and will continue to do so as Australians become more conscious of authentically produced products (Passport, Cider/Perry in Australia, 2017). Young individuals are they key consumers of cider today (Stainkamph, 2016). Being produced from apples and pears, cider is perceived to be a more nutritious alcoholic alternative, appealing to a health conscious generation which is the basis of the current Australian cider market (Stainkamph, 2016). Rising health consciousness about sugar consumption and negative impacts of alcohol will lead to growth in consumer purchasing of particular cider brands, which is supported by evidence of ‘no added sugar’ promotion by the market leaders (Stainkamph,2016). “Cider is gluten free, it has no added sugar, no added preservatives, no concentrates, it’s just fruit in a bottle,” - Steve Dorman, founder of The Hills tells Smartcompany (Stainkamph, 2016). Not only is there a shift towards the Cider industry in Australia, but a shift within the industry as Australians develop more acquired tastes while the industry matures (Passport, 2016). Studies illustrate that Australians are moving away from sweet ciders, and towards ciders with a more complex taste produced by craft breweries. Brands that adopt new product developments with more varieties are expected to experience the highest growth rates within the market (Passport, 2016). Cider is currently taxed under Wine Equalisation System, which is a quarter of the tax placed on spirits and RTD’s (Passport, 2016). This is further encouragement for young consumers to shift away from RTD’s and spirits towards the cider industry as they are often more cost conscious. A reform of this policy could lead to dramatic shifts in the market.

Page 5: Milan van Niekerk Situation Analysis MKT€¦ · (Passport, Cider/Perry in Australia, 2017). Young individuals are they key consumers of cider today (Stainkamph, 2016). Being produced

MACRO ENVIRONMENT ANALYSIS

POLITICAL ANALYSIS

Political Analysis

Implementation of higher

Tax Rates on RTD’s (Ready-To-Drink)

compared to Cider

Consumers needing to spend more money on RTD’s and spirits due to the alcopops tax of 2008, has

encouraged the market to shift towards cider beverages as they are taxed under the Wine Equalisation System

which is ¼ less than that of RTD’s and spirits, increasing cider consumption growth (ABC News)(Passport,

2016).

Government increased spending on Cider Industry

The Australian Government will spend $500,000 building the Australia’s Craft Cider Industry in order to establish

a compelling brand proposition for Australian Cider producers. This could pose a threat to Somersby as the

government is encouraging local Cider producers to export their product, rather than the government having to

import international products. (Drinks Association, 2018)

The Legal Drinking Age in Australia

As highlighted in the Market Analysis, the key consumers of cider are young Australians (Passport, 2017). If laws

on the legal drinking age were to increase or decrease with a change of political party, the market size would

mirror these changes and dramatically affect cider sales.

Page 6: Milan van Niekerk Situation Analysis MKT€¦ · (Passport, Cider/Perry in Australia, 2017). Young individuals are they key consumers of cider today (Stainkamph, 2016). Being produced

Milan van Niekerk

Somersby Cider Situational Analysis Page

6

ECONOMIC ANALYSIS

Economic Analysis

Effect of Interest Rates on Consumer Spending

An increase of only 1% on the interest rate can have a major effect on consumer spending as many Cider

consumer have funds caught up in mortgages and other loans which would increase amount owing. As

mentioned before, young Australians are cider’s key consumers and often do not have the funds readily

available to tackle a rise in interest rates, resulting in lower sales of cider (Stainkamph, 2016).

Fluctuations in Danish Exchange Rates

Somersby is an imported drink from Denmark (Carlsberg Group, 2016) and Australians import the cider for

consumption. Fluctuations of the Danish Krone and Australian Dollar impacts on profits for the company.

Currently at 1 DKK = 0.21 AUD (XE Converter)

Balance of Trade

Australian Consumer’s decision to focus on locally produced cider and reduce the demand on Danish imports

(Smartcompany, 2016). The Australian government encourages locally produced products as it reduces any

potential deficit on the balance on trade and may eventually lead a focus on exporting cider (Drinks Association,

2018)

Page 7: Milan van Niekerk Situation Analysis MKT€¦ · (Passport, Cider/Perry in Australia, 2017). Young individuals are they key consumers of cider today (Stainkamph, 2016). Being produced

Milan van Niekerk

Somersby Cider Situational Analysis Page

7

SOCIAL ANALYSIS

Social Analysis

Health Minded Consumers

Cider is perceived as a more nutritious alcoholic beverage opposed to beers and RTD’s (Passport, 2016). As

awareness of the ingredients of and their effect on consumer health growths, there will be a shift in the market

towards ciders as they are brewed from apples and pears (Stainkamph, 2016).

Drinking Culture in

Australia

78% of Australians believe that Australia has a problem with alcohol abuse. (My name is Australia, 2018). Many

believe that when Australians drink, they drink too much (My name is Australia, 2018). Cider, however, has a

lower ABV level on average than most RTD’s and beers and therefor more can be consumed before being

classified as binge drinking (Smartcompany, 2018). Anti-alcohol campaigns will reduce the amount of alcohol

sales in general, but Cider could prevail.

Australia is a multicultural country

Only 29% of Australians are non-religious (Diversity of Religion, 2016). Most religions adopt negative attitudes to

the consumption of alcohol, with Muslims abstaining entirely. With Australia’s growing multiculturalism, there may

be an impact on the market size of cider drinkers.

Page 8: Milan van Niekerk Situation Analysis MKT€¦ · (Passport, Cider/Perry in Australia, 2017). Young individuals are they key consumers of cider today (Stainkamph, 2016). Being produced

Milan van Niekerk

Somersby Cider Situational Analysis Page

8

TECHNOLOGICAL ANALYSIS

Technological Analysis

Online Retailing

Industry revenue for alcohol is projected to grow at an annualised 11.1% over the next five years. Consumers

continued interest of online liquor purchases is estimated to increase industry revenue by 10.5%. online sales

account for approximately 4% of total liquor retail sales (IBISWorld, Online Beer, Wine and Liquor Sales, 2018)

Alcohol Consumption Communication

Anti-alcohol campaigns are aching a wider range of consumers through technologies such as social networking

platforms and television. And increased awareness of the effects of alcohol may deter consumers from

purchasing cider.

User Friendly Website

As technology improves, Somersby is able to create a more appealing website to market their products. An

informative and easy to navigate website could improve sales where this was not possible in the past.

Page 9: Milan van Niekerk Situation Analysis MKT€¦ · (Passport, Cider/Perry in Australia, 2017). Young individuals are they key consumers of cider today (Stainkamph, 2016). Being produced

Milan van Niekerk

Somersby Cider Situational Analysis Page

9

LEGAL ANALYSIS

Legal Analysis

Labelling

Australia has strict laws and regulations of label requirements that inform the consumer about crucial information of the

product. (Labelling of Alcoholic Beverages, 2018). This labelling laws may differ to those in Denmark and Somersby

has to comply with these laws.

Corporate Social Responsibility

Carlsberg Group, owner of Somersby Cider, has adopted a together towards Zero Campaign to reduce wastage and

carbon emissions in order to improve their CSR. CSR is essential in today’s society, although it comes at a cost to a

company. (Together Towards Zero, 2018)

Underage Drinking

Underage drinking in Australia is illegal and as Somersby’s key consumers are young Australians, the company will

need to be careful to not market their product to underage drinkers which could lead to unwanted involvement of

regulatory institutes.

Page 10: Milan van Niekerk Situation Analysis MKT€¦ · (Passport, Cider/Perry in Australia, 2017). Young individuals are they key consumers of cider today (Stainkamph, 2016). Being produced

Milan van Niekerk

Somersby Cider Situational Analysis Page

10

ENVIRONMENTAL ANALYSIS

Environmental Analysis

Reduced Carbon emission through local production

Somersby Cider is currently produced in Denmark and imported to Australia for consumption (Carlsberg group,

2018). This process emits large amounts carbon gasses into the atmosphere. Carlsberg group may opt to start

producing cider locally in order to minimise these environmental impacts, through reducing transportation and

hence carbon emission.

Droughts and Floods on apples and pears

Cider is mainly produced from apples and pears, if Somersby were to produce their cider locally, drought and

flood awareness will be essential in order to minimise the impact on production if this were to occur. As the

number of local producers, Somersby’s future competitors, increase, a drought or flood would slow down their

production rate and allow for higher import of Somersby cider (Smarcompany, 2017).

Page 11: Milan van Niekerk Situation Analysis MKT€¦ · (Passport, Cider/Perry in Australia, 2017). Young individuals are they key consumers of cider today (Stainkamph, 2016). Being produced

Milan van Niekerk

Somersby Cider Situational Analysis Page

11

MICRO ENVIRONMENT ANALYSIS

COMPANY ANALYSIS

The Carlsberg group is a successful Danish company with extensive growth throughout their history. After some social hiccups, the Carlsberg group have shifted their focus to operating sustainably and contributing to the community. Dominating the market, the company is able to deliver an affordable product to the consumer while communicating effectively the undertaking of safe consumption.

Positives

Community Support

Carlsberg group have crafted a Youth Scientist Community in Davos to create opportunities for students to further their achievements and build on their knowledge of sustainability, increasing their employability. (Nasdaq, 2018)

Leading Market Share

Carlsberg group is ahead of the market with a 32.1% market share, leading by 14.4%. (Passport, 2016). A strong lead in the market creates a safety net for innovation.

Corporate Social

Responsibility and Sustainability

The company has adopted a Together Towards Zero program which encourages responsible drinking, safe driving, and a reduction of carbon emission wasted water. (Together Towards Zero, 2018)

Page 12: Milan van Niekerk Situation Analysis MKT€¦ · (Passport, Cider/Perry in Australia, 2017). Young individuals are they key consumers of cider today (Stainkamph, 2016). Being produced

Milan van Niekerk

Somersby Cider Situational Analysis Page

12

Negatives

Not Australian

Owned/Produced

Carlsberg Group is a Danish company and has their cider imported into Australia. This affects Australian producers and influences their level of competition in the cider industry Australia. It also creates a deficit on the Balance of Trade.

Pollution Scandal

Carlsberg Group were found to be dumping large amounts of waste into a nearby river in Nepal. Communities were outraged and protested, however, due to the remote location the protests did not receive much global attention. (Christian Pedersen, 2018)

Elephant Polo

Carlsberg group use to be a supporter of Elephant Polo. It has since been discovered that the elephants are treated with cruelty and the sport is now classed as animal cruelty. Carlsberg withdrew their sponsorship, rightfully so, however they did not do so by choice, but rather due to pressures received from PETA India. (Carly Day, 2018)

Page 13: Milan van Niekerk Situation Analysis MKT€¦ · (Passport, Cider/Perry in Australia, 2017). Young individuals are they key consumers of cider today (Stainkamph, 2016). Being produced

Milan van Niekerk

Somersby Cider Situational Analysis Page

13

COMPETITOR ANALYSIS

The Carlsberg group competes in a monopolistic market with three main brand competitors and two smaller brands consisting of Somersby Cider (32.1%), Strongbow (17.7%), Five Seeds (10.4%), Rekorderlig (7.8%), Bulmers (6.0%) and Monteith’s (4.5%) respectively (Passport, 2016). These competitors may all share a similar target market, however certain attributes distinguish each brand to give them a competitive advantage. The Cider market in Australia is constantly evolving and shifting as new, smaller craft cider producers enter the market.

Competitor

Points of Similarity to

Somersby

Point of Difference to

Somersby

Strongbow

• Global brand, not owned by Australians, produced in England. (Strongbow, 2018)

• Share the same target market (Strongbow, 2018)

• Apple and Pear flavours, light and crispy (Strongbow, 2018)

• Much younger brand, found in 1962. (Strongbow, 2018)

• Have a dark fruit, sweet variety (Strongbow, 2018)

• Retail at $4.19, where Somersby retails at $5.19 (Dan Murphys, 2018)

Five Seeds

• Focus on the Apple and Pear flavours (5 Seeds, 2018)

• ‘Fresh and Crisp’ advertising (Tooheys Brewery, 2018)

• Retail at the same price (Dan Murphys, 2018)

• Five seeds place a focus on lower sugar content (5 Seeds, 2018)

• Australian owned (Tooheys Brewery, 2018)

• 5% ABV, opposed to Somersby’s 4.5% Dan Murphys, 2018)

Rekorderlig

• Global brand, not locally owned, ciders produced in Sweden (Rekordelig, About Us, 2018)

• Rekorderlig exports cider on an international scale, with a market share in 15 countries. (Rekorderlig, About Us, 2018)

• Rekorderlig also have a simplistic and minimalistic label.

• Rekorderlig focus on cider produced from berries rather than Apples and Pears. (Rekordelig, Flavours, 2018)

• Premium cider, marketing towards upper0class consumers (Rekorderlig, About Us, 2018)

• Retails at $8.19, opposed to Somersby’s $4/19 (Dan Murphys, 2018)

Page 14: Milan van Niekerk Situation Analysis MKT€¦ · (Passport, Cider/Perry in Australia, 2017). Young individuals are they key consumers of cider today (Stainkamph, 2016). Being produced

Milan van Niekerk

Somersby Cider Situational Analysis Page

14

COMPETITIVE MARKET SUMMARY

Competitor

Target Market

Product

Price

Promotional

Distribution

Strength

Weakness

Strongbow

Young consumers,

Experienced cider consumers with

varying taste

Strongbow Apple Cider – simple tasting

product

$5.19

- Promoted as light and crisp to refresh on hot days - Healthier than an Avocado campaign (Time to change my breakfast Habits, 2018)

Produced in England,

retailing mainly in stores and

online

- An inviting, minimalist label attracting young consumers - Wide range of flavours for many consumers - Appetising in Australian Climate

- High sugar intake relative to other available competitor options - Many products could lead to a loss of market focus of a particular product - Pay a low dividend to investors (Strongbow Exploration, 2018)

Five Seeds

Young consumers,

Non-experienced

consumers,

5 Seeds Apple Cider - low

sugar

$4.19

- Marketed as low sugar and a healthier alternative - New brand repositioning campaign to market as fresh and crisp. (AdNews, 2016)

Produced in Australia, retailing in

mainly stores and online

- Catering for a health conscious society - Relatively affordable -Australian owned, supporting local producers -Innovative new brand repositioning (AdNews, 2016)

- Many similarities to Somersby and therefor have to compete with the giant for market share - Lack of an informative website, website only has minimal product information

Page 15: Milan van Niekerk Situation Analysis MKT€¦ · (Passport, Cider/Perry in Australia, 2017). Young individuals are they key consumers of cider today (Stainkamph, 2016). Being produced

Milan van Niekerk

Somersby Cider Situational Analysis Page

15

Competitor

Target Market

Product

Price

Promotional

Distribution

Strength

Weakness

Rekorderlig

Upper-class consumers,

Consumers with extensive cider

taste knowledge

Premium Strawberry & Lime Cider –

premium flavouring

$8.19

- Sold in a high-end design bottle to attract wealthier consumers - Launch of a new cider cocktail range (The Sun, 2018)

Produced in Sweden, sold mostly in bars,

clubs or restaurants

- A separate target market allows for increased market share - Launching a low-sugar, low-carb exclusively to Australia (the AU Review, 2017)

- High-end consumers are not the main consumers of cider -Old packaging design, requires a repositioning to stay competitive - Expensive for young consumers

Page 16: Milan van Niekerk Situation Analysis MKT€¦ · (Passport, Cider/Perry in Australia, 2017). Young individuals are they key consumers of cider today (Stainkamph, 2016). Being produced

Milan van Niekerk

Somersby Cider Situational Analysis Page

16

Competitor

Target Market

Product

Price

Promotional

Distribution

Strength

Weakness

Bulmers

Traditional cider drinkers,

Older

demographic

Bulmers Irish Cider –

Traditional taste, patiently matured

$4.69

Bulmers place a focus on marketing

their cider as an older cider from

England for those who enjoy the

original tastes of cider

Sold mostly in Clubs, such as RSL clubs and pubs to reach

the older demographic

- Bulmers have a large variety of flavours relative to other competitors, suiting a larger market of consumers - Cater to a niche market, there are not many traditional cider competitors

- Old, dark bottle although promoting a natural refreshing taste - Complaints against Bulmers ads as they are misleading (Nikkie Sutton, 2018)

Monteith’s

Upper Class Consumers,

Older

demographic of traditional drinkers

Monteith’s Crushed Apple

Cider – Decorated bottle

$4.69

Decorate the bottle

with elegant designs and glass-blown features to attract the higher-class consumers

A shift towards

a focus on online retailing

as it is an emerging market.

- An extensive webpage that allows consumers to food match and explore brews

- The most consumers of cider are young Australians who cannot always afford a premium cider

Page 17: Milan van Niekerk Situation Analysis MKT€¦ · (Passport, Cider/Perry in Australia, 2017). Young individuals are they key consumers of cider today (Stainkamph, 2016). Being produced

Milan van Niekerk

Somersby Cider Situational Analysis Page

17

CONSUMER ANALYSIS

Australians, particularly young Australians, have a large drinking culture and often consume alcohol recreationally. These youths have a lower income as they are in early stages of their career, yet still enjoy to consume copious amounts of alcohol at social occasions creating the basis of the large cider market we know today. Cider is a more affordable alternative to RTD’s due to the alcopops tax of 2008 and offers a more nutritious option for the health conscious young Australian consumer.

Australia has a rather warm climate, with temperatures reaching around 40 degrees in summer months. Cider is regularly marketed as a light, crisp, refreshing drink to be served chilled. With Australia’s heat, an increase in consumption of cider during the summer months can be expected. Cider is currently mostly being purchased in stores and in bars and clubs (97%), however there is a slow shift towards online retailing currently at (2%) and increasing. (Passport, 2016)

Consumption of cider can also relieve some stress, and unwind after a long day at work or many young consumers may be new to the alcohol market and are searching for an option that is relatively healthy and not too high in ABV to consume out of curiosity hence encouraging the purchase of cider in Australia.

Page 18: Milan van Niekerk Situation Analysis MKT€¦ · (Passport, Cider/Perry in Australia, 2017). Young individuals are they key consumers of cider today (Stainkamph, 2016). Being produced

Milan van Niekerk

Somersby Cider Situational Analysis Page

18

SWOT ANALYSIS

- One of the lowest price competitors, allowing greater access for young Australians with low income. - Promoted at as being fresh and crisp, suitable to Australian climate with high temperatures. - Leading market share grants higher profits and room for innovation - Established company with a renowned reputation for acting sustainably e.g. ‘Together Towards Zero’ Program

-Lack of a ‘Low Sugar’ option is dangerous in a health conscious society. -The Somersby label is outdated and has not adopted minimalistic design popular today. -The company is Danish owned which could tarnish sales in Australia as consumers prefer to support locals. - Carlsberg do not shift with changes in the market, could be due to a large variety of products and loss of market focus.

- A repositioning campaign to shift towards health conscious consumers as well as a label change. - Develop a craft cider range as it is an emerging market. - Research whether products can be produced in Australia to potentially minimise costs for young Australians and support local producers. - Proactive advertising with humour and popular trends to communicate health benefits.

- Tax reform in Australia to RTD classification would increase Cider prices. An emerging market of craft cider producers act as competition to Somersby.

- A growth in local Australian producers are supported by cider drinkers.

- Natural disasters affect the production of raw materials and a contingency plan is required.

S Strengths (+)

W Weaknesses (-)

O Opportunities (+)

T Threats (-)

Page 19: Milan van Niekerk Situation Analysis MKT€¦ · (Passport, Cider/Perry in Australia, 2017). Young individuals are they key consumers of cider today (Stainkamph, 2016). Being produced

Milan van Niekerk

Somersby Cider Situational Analysis Page

19

RECOMMENDATIONS/CONCLUSION

In order to maintain their leading market share, the Carlsberg group will need to reposition their popular cider, Somersby, to adapt to a shift in the market of cider consumers. Research has highlighted that young Australians are the key consumers of cider and the new generations are more aware of the influences companies have on society and individual health. A new range of health conscious cider products and a fresh new label will allow Somersby to remain competitive against emerging craft cider producers.

Marketing this new range of healthy/craft cider’s health benefits and sustainable production through new available technologies, such as social networks, will be more efficient in reaching these key consumers. Advertising should be humorous and online to allow Australian consumers to relate to the product in an effective manner.

Research into possible Australian production adds an attribute that consumers are increasingly made aware of and could lead to higher sales. Carlsberg group’s main focus however should be to reposition their product to appeal to a younger audience.

REFERENCE LIST

AdNews. (2016). 5 Seeds Cider launches new brand campaign. Retrieved from

http://www.adnews.com.au/campaigns/5-seeds-cider-launches-new-brand-campaign

Association, D. (2018). Government invests $500,000 in Aussie Cider Industry. Retrieved from http://www.drinkscentral.com.au/4751?Article=government-invests-500000-in-australian-cider-industry

Blake, I. (2018). Time to change my breakfast habits. Retrieved from http://www.dailymail.co.uk/femail/food/article-5548717/Slimming-World-rates-avocados-unhealthier-Strongbow-Dark-Fruits.html

Carlsberg. Carlsberg Logo. Day, C. (2018). Sponsors are Dropping Out of Cruel Elephant Polo Tournament. Retrieved from

https://ladyfreethinker.org/sponsors-dropping-cruel-elephant-polo-tournament/ Economics, T. (2018a). Australia Consumer Confidence. Retrieved from

https://tradingeconomics.com/australia/consumer-confidence Economics, T. (2018b). Australia Interest Rate. Retrieved from

https://tradingeconomics.com/australia/interest-rate Exploration, S. (2018). Stock Information. Retrieved from

https://www.strongbowexploration.com/investors/stock-information/ Government, A. (2018). Labelling of Alcoholic Beverages. Retrieved from

https://www.legislation.gov.au/Details/F2011C00588

Page 20: Milan van Niekerk Situation Analysis MKT€¦ · (Passport, Cider/Perry in Australia, 2017). Young individuals are they key consumers of cider today (Stainkamph, 2016). Being produced

Milan van Niekerk

Somersby Cider Situational Analysis Page

20

Group, C. (2018a). Our Ambitions. Retrieved from https://carlsberggroup.com/sustainability/our-ambitions/

Group, C. (2018b). Together Towards Zero. Retrieved from https://carlsberggroup.com/ - sustainability

Group, C. (2018c). Who We Are. Retrieved from https://carlsberggroup.com/who-we-are/about-the-carlsberg-group/

Grup, C. (2017). Finanial Statement 2017. Retrieved from https://carlsberggroup.com/investor-relations/investor-home/fy-2017-financial-statement/

Harrison, C. (2017). Hi, my name’s Australia, and I have a drinking problem. Retrieved from https://www.huffingtonpost.com.au/chris-harrison/hi-my-names-australia-and-i-have-a-drinking-problem_a_21646036/

Nasdaq. (2018). Youth Scientist Community. Retrieved from https://globenewswire.com/news-release/2018/01/22/1298213/0/en/Carlsberg-Group-launches-Young-Scientists-Community-in-Davos.html

Passport. (2017). Cider/Perry in Australia Country Report. Retrieved from http://www.portal.euromonitor.com.libraryproxy.griffith.edu.au/portal/analysis/tab

Pedersen, C. B. (2018). Broken Bottles and Contamination Burden Carlsberg’s brewery in Nepal. Retrieved from https://www.dr.dk/nyheder/penge/knuste-flasker-og-forurening-belaster-carlsbergs-bryggeri-i-nepal

RacismNoWay. (2016). Diversity of Religion and Spiritual Beliefs. Retrieved from http://www.racismnoway.com.au/about-racism/australias-cultural-diversity/diversity-of-religion-and-spiritual-beliefs/

Review, T. A. (2017). Rekorderling Launch Exclusively to Australia. Retrieved from http://food.theaureview.com/shelf/rekorderlig-launch-low-sugar-low-carb-cider-exclusively-in-australia/

Seeds. (2018). 5 Seeds. Retrieved from https://www.5seeds.com.au/ Somersby. Somersby Can. Somersby. Somersby Logo. Stainkamph, M. (2016). Smartcompany. Retrieved from

https://www.smartcompany.com.au/growth/australian-cider-industry-to-be-worth-more-than-404-million-in-2021-research/

Strongbow. (20148). Strongbow About Us. Retrieved from https://www.strongbow.com.au/about

Sun, T. (2018). Rekorderling Cocktail Range. Retrieved from https://www.thesun.co.uk/fabulous/food/5869466/rekorderlig-cider-cocktails/

Sutton, N. (2018). Complaints Against Bulmers Ads. Retrieved from https://www.morningadvertiser.co.uk/Article/2018/03/28/Complaint-against-Bulmers-ad-rejected-by-watchdog

Tooheys. (2018). Tooheys Brewery. Retrieved from https://www.tooheys.com.au/agegate/


Recommended