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Guinness

Por: Daniela Gil Álvarez y Daniela Lopera López
by

on 13 November 2013

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Transcript of Guinness

Nigeria Beer Market
About Guinness
PESTLE Analysis
5 Forces Analysis
Guinness Position

Agenda
Beer in Nigeria
Porter’s Industry analysis
Technology
The technology for the industry, spare parts and expert technicians are not available in country and therefore highly dependent on foreign exchange.
Guinness for example has Diego of Ireland as its foreign partner

Nigeria has 45 million internet users.

An estimated 30% of the Nigerian population has access to the internet.
Guinness position in Nigeria
Gracias!!
Drinking alcohol is a social activity.
Beer is
the most popular
alcoholic drink.
Beer makes up about 96% of all alcohol sales.
* (Corporate Nigeria, 2011)
40%
of Guinness is consumed in Africa
Nigeria is the world’s second-largest market for Guinness consumption
. Great Britain is first.
(Food republic, 2013)
In 1963, Nigeria was the first location outside British islands to brew the iconic dark beer.
Economic
making it worth
The beer market in Nigeria
21.8%
value growth in 2009
$ 2.7 billion
(Corporate Nigeria, 2011)
The industry is at the maturity stage of its life cycle
had increased to in 2013.
Inflation Rate
9.1 %
(National Bureau of Statistics)
* Maintain single-digit inflation
* Expand investment in other non-oil industry, particularly in agriculture & infrastructure development.
(AllAfrica, 2013)
Government plans to:
(Financial Times, 2013)
" Nigeria’s short term macroeconomic outlook looks generally strong,
with the likelihood of higher growth, lower inflation, and reserve accumulation”  
Nigeria is the Africa’s second-largest economy
6.39%
annual growth of GDP
Political
Tax policy
Non-oil sector companies are required to pay income and education tax. The rate is 30% of total profit for income tax and 2% of assessable profit for education tax.

Importation Ban
The basic raw materials Maize, Sorghum are sourced locally following the Government ban on importation of malted barley in the late 1980's

Social
Population in Nigeria
About 168.8 million (2012)
(World bank,2013)
2.8%
Annual growth rate
annual beer consumption per capita.
Drinking beer as being part of the normal and ceremonial lifestyle of Nigerian.

*(SABMiller, 2013)
* 11 litres
Guinness Nigeria recently expanded its production facilities to create more than 200 new jobs .
23.9% unemployment rate in 2012
Environment
Water issues
Water Availability
Water Quality
42% of Nigeria population was used unclean
water (2011).

because of the climate change, the volume of water in streams and river are reduced more than before

In 2010, Guinness created the project to help in solving these issues

Nigeria is the largest oil producer in Africa, it is the largest natural gas too
30% tax concession for five years to industries that attain minimum local raw materials utilisation as follows: agriculture, agriculture allied, engineering, petro chemical
About Guinness
(Punch, 2013)
Group F
Yasmin Alghalayini
Thonchanut Chodverawong
Emmanuel Adepoju
Haonan Liu
Xiaofan Geng
Sonal
Group Members:
55%
Age Group (15- 64)
Age (0-14)
41%
Now 22 water projects across several states in Nigeria.
Bargaining Power of Suppliers
Plenty of raw materials suppliers (ex bottles, crown corks,…)

Commodity purchase: no hi-tech

Influence: Low
Bargaining Power of Customers
High number of customers.

Influence: Medium
Porter’s Industry analysis
Threat of New Entrance
High barrier to entry, include capital requirements, legal costs, low infrastructure.
Influence: Low
Threat of Substitute Products
Alcoholic drinks such as wine, brandy, vodka; consumed by a higher segment of the society
Non alcoholic drinks such as malt, juice, soft and energy drinks; target the non-beer consuming religious groups.
Potential substitutes:
Influence: Low

Two major competitors, no price wars as the products are differentiated.
Nigerian Breweries Plc (NB Plc) &
Consolidated Breweries.
Competitive Rivalry within an Industry
Influences: Medium

SABMiller entered the market in 2009
Guinness dominates the stout segment

(Corporate Nigeria, 2011).
(VETIVA, 2010)
Vetiva (2010) Nigerian Brewery Sector Brewing growth; malting value. Available at: http://www.naijalowa.com/wp-content/uploads/downloads/2010/11/Vetiva-Research-Brewery-Sector-2010.pdf [Accessed 7 November 2013].
SABMiller (2013) Nigeria. Available at: http://www.sabmiller.com/index.asp?pageid=2458 [Accessed 28 October 2013].
AllAfrica (2013) Nigeria: The Good News about Economic Growth and Competitiveness. Available at: http://allafrica.com/stories/201309131531.html [Accessed 27 October 2013].
Bangudu, O. (2013) Nigeria’s beer industry growth declines in 2013. Available at: http://premiumtimesng.com/business/145372-nigerias-beer-industry-growth-declines-2013.html [accessed 29 October 2013].
An AMCOW Country Status Overview (2011) Water Supply and Sanitation in Nigeria. [pdf] Available at: http://www.wsp.org/sites/wsp.org/files/publications/CSO-Nigeria-En.pdf [Accessed 1 November 2013].
BUSINESS NEWS (2011) Nigeria set to become largest market growth for Guinness. Available at: http://businessnews.com.ng/2011/08/24/nigeria-set-to-become-largest-market-for-guinness [Accessed 28 October 2013].

(Guinness-Nigeria, 2013)
Clarke engine (2012) Guinness, Ogba Combined Heat & Power Plant. Available at: http://www.clarke-energy.com/2012/guinness-ogba-combined-heat-power-plant/ [Accessed 1 November 2013].
Corporate Nigeria (2011) The business, trade and investment guide 2010/2011. [pdf] Available at: http://www.corporate-nigeria.com/assets/pdf/2010/cn-2010-industry.pdf [Accessed 28 October 2013].
Financial Times (2013) Nigeria’s economic growth slows slightly. Available at: http://www.ft.com/cms/s/0/fba95e4e-be3d-11e2-bb35-00144feab7de.html?siteedition=uk#axzz2jRTFerDa [Accessed 27 October 2013].
Food republic (2013) 11Things You Probably Didn't Know About Guinness. Available at: http://www.foodrepublic.com/2013/03/12/11-things-you-probably-didnt-know-about-guinness [Accessed 27 October 2013].
PKF (2012) Nigeria Tax Guide. [PDF] Available at: http://www.claytonmckervey.com/... [Accessed 31 October 2013].
ONLINE NIGERIA (2013) Population. Available at: http://onlinenigeria.com/population/?blurb=132. [Accessed 26 October 2013].
TRADING ECONOMICS (2013) NIGERIA INTEREST RATE. Available at: http://www.tradingeconomics.com/nigeria/interest-rate [ Accessed 27 October 2013].
World bank (2013) Population. Available at: https://www.google.co.uk/publicdata/explore?ds=d5bncppjof8f9_&met_y=sp_pop_totl&hl=en&dl=en&idim=country:NGA:ZAF [Accessed 28 October 2013].
References
References
(PKF., 2012)
(AMCOW, 2011)
(Trading Economics, 2013)
Nigeria Beer Market
About Guinness
PESTLE Analysis
5 Forces Analysis
Guinness Position

Agenda
Well-established brands
Thank You
A decrease in the disposable income may have a small impact on demand.
The cost of switching other brands
Full transcript