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Carlsberg in Emerging Market
Transcript of Carlsberg in Emerging Market
Challenges & Recommendations
Key Success Factors
China, as a new rising power in the world presents new opportunities in firms of all industries. The beverage industry is one which is looking to explore China as a potential for growth and explore untapped market opportunities. This report provides analysis of Carlsberg in 2007, its challenges in the emerging markets and recommendations based on our analysis.
In key findings in this case shows that in order for Carlsberg to maintain its position in advanced markets and to capitalized on emerging markets which are Russia and China. The recommendations will include
how Carlsberg can sustain its position and sales in maturing European market
ways to establish a leading position in Chinese beer market.
Through our PESTEL and five forces analysis, we recommend three possible strategic moves for the three key regions and one global direction. The key global direction is to
rebrand and reposition Carlsberg
to a younger and more “hip” image to refresh the brand as a whole. For Western Europe, we recommend Carlsberg to
to address increasingly health conscious consumers. Whereas in Eastern Europe, Carlsberg should focus on the
product line extension
expand into neighboring countries
other than Russia. Finally for China, the recommendation is to
promote premium products in urban China
which includes southeastern and central China and, at the same time,
promote low cost but high quality products in rural China.
Key Success Factors
- Government policy
- Exchange rate
- Interest rate
- Cyclical swing in economy
- Changes in consumers' preference
- Supply chain improvement
- Sustainability trend
- Local regulations
GLOBAL EXPANSION STRATEGY
Industry Life Cycle
5 Forces (Russia)
5 Forces (China)
AVAILABILITY OF PRODUCTS
MAINTAINING A GOOD
BRAND IMAGE AND POSITION
- A growing demand for low-alcohol beer.
- Demand is growing for premium products (mainly in metropolitan areas).
- There is still demand for economy and domestic products throughout China.
- Brands become increasingly important to young consumers.
SWOT Analysis - Russia
SWOT Analysis - China
How can Carlsberg maintain its position in the saturated and highly competitive market?
How Carlsberg A/S could successfully continue to capitalize on its growing engagement in emerging markets?
Recommendaton - Global
Recommendation - Western Europe
Recommendation - Eastern Europe
Recommendation - China
Merger & Aquisition Time Line