CHAPTER 1
BACKGROUND OF THE COMPANY
1.1 History of Carlsberg
In 1847, J.C. Jacobsen, a young brewer from Copenhagen, established an industrial brewery on a hill at Valby, just outside Copenhagen. The brewery was named Carlsberg (Carl's hill) after his son Carl and the hill on which it was built. Being the first technically advanced Bavarian style brewery in Denmark, Carlsberg C arlsberg quickly quickl y became a success, making makin g an international name for its founder as a pioneer in brewing. In 1871, J.C. Jacobsen set up the Carlsberg Foundation; one of its objectives was to run the Carlsberg Laboratory, to donate funds for sciences and to maintain the museum of National History at Frederiksborg Castle.
Carl Jacobsen followed in his father's footsteps and established his own brewery and named it New Carlsberg. Subsequently Sub sequently this brewery merged with his father ’s brewery, Old Carlsberg, in 1906 and the two became the Carlsberg Breweries.
1.2 Carlsberg Worldwide
Carlsberg, which is the fourth largest brewery of the world, has been produced abroad since 1968 in Malawi. Since then a considerable number of markets have been added to the list, and today Carlsberg is brewed in countries like Barbados, Brazil, Canada, Canary Islands, China, Cyprus, France, Indonesia, Ireland, Japan, Korea, Malawi, Malaysia, Paraguay, Poland, Philippines, Spain, Sri Lanka, Thailand, United Kingdom and Vietnam. Also Carlsberg is brewed in Finland, Greenland, Iceland, Israel, Nepal, Norway, Portugal and Sweden.
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More than 88% of the Group’ Group’s beer sales are generated outside Denmark. The beer is brewed at more than 70 production sites spread over approximately 40 countries at either Carlsberg owned breweries or in breweries in which the Group holds equity stakes. In addition to local production, the Group also exports beer from Denmark to a considerable number of countries. It is estimated that over 30 million people around the world enjoy Carlsberg products every single d ay.
1.3 Carlsberg Nepal
Gorkha Brewery pvt. Ltd (GBPL) launched Carlsberg in 1995 and became leader in Nepal with 76% of the market share then after. In 2010, Carlsberg bought 90% of the shares of Gorkha Brewery and took over the management. It was the second beer brand in the portfolio of GBPL. Carlsberg was launched in the premium segment and has been successful in maintaining that status among its consumers. In the past years, Carlsberg has made determined efforts to change its profile from being not only an international brand but also a contemporary and appealing brand, which appeals to young Nepalese consumers.
A coherent, cool, synergized image has been consciously created through mass media advertising and at channels of consumption through attractive Point-of-Sale materials and promotions. In addition, association of Carlsberg with International football footba ll specially Liverpool, have underlined Carlsberg’ Carlsberg’s strong premium positioning.
1.4 Vision of Carlsberg for Asia
“To make Carlsberg a leading brewery group and the Carlsberg brand the leading international international brand in Asia and make Asia the second growth engine for the Carlsberg group.”
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Chapter 2
Brand Audit
2.1 Brand Inventory
Brand Inventory is the current comprehensive profile of how Carlsberg is sold by Gorkha Brewery in Nepal. The brand inventory for Carlsberg is constituted of brand elements, supporting marketing programs, competitors’ analysis, Point of Parity (POPs) and Point of Difference (PODs). The Brand Inventory for Carlsberg is explained as follows: 2.1.1 Brand Elements: The brand elements of Carlsberg constitute of the following attributes:
Brand Name: Carlsberg
Slogan: “That calls for a Carlsberg”
Logo:
Symbol:
URL: www.carlsberggroup.com www.gorkhabrewery.com
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2.1.2 The Marketing Mix
Product
Launched in 1998 in Nepal by Gorkha brewery, Carlsberg beer is a categorized as the premium brand among many beers offered like Tuborg, San Miguel and its local brand Gorkha. Carlsberg is considered as premium quality European style lager beer. Carlsberg is Pilsner type of beer with 5.0% of Alcohol contained with volume. It has positioned itself as super premium mild beer.
Price
As Carlsberg is considered as the premium brand, the price is also charged higher than other available beers in Nepal. The price ranges from NPR 190 to 230, the price varies in wholesales stores, retail stores and in restaurants and bars.
Place
Carlsberg is an internationally well-known brand. It is available in 140 countries across the globe.
In Nepal, Gorkha Brewery distributes Carlsberg through-out the country easily
through various distributors to retails and to customers. Gorkha Brewery has around 200 distributors which support in the uninterrupted supply of Carlsberg in the Nepalese ma rket.
Promotion
Carlsberg is involved in huge promotion internationally with Slogan “That calls for a Carlsberg”, various ads and viral videos has been created. However in Nepal, with the recent restrictions in the promotion of alcoholic beverages, Carlsberg also faces limitation in
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promotion. But it had been involved in promoting the brand “Carlsberg” very well in Nepal. It has been able to communicate the premium quality of the brand and its international appeal to the Nepali customers as well. The promotion is carried out by the parent company and it is carried forward in the host countries. Carlsberg is maintains its global heritage of sports collaborations, recently it had been associated with football as the official sponsor for UEFA Euro 2012. And as promotion activity, the customers from various countries are given opportunity to win tickets to these games. Carlsberg has also shown its presence in different social media like Facebook, Twitter, Youtube, Flickr etc.
The communication has been carried through:
Use of large hoarding boards in the prime location of Nepal.
Use of print media i.e. magazines and national dailies for mass communication.
Point of purchase promotion through retail outlets and supermarkets.
Online advertising and communication are a growing trend.
Sponsorship of various programs like concert, parties and so on.
Contest to win tickets for mega sports event campaign abroad and website.
Associating with huge event management companies
2.1.3 Packaging of Carlsberg
The packaging is one of the most important differentiating points for Carlsberg in compare to its competitors. When every other beer brands have brown color bottle, Carlsberg is served in green color bottle giving a sense of premium class to its consumers. The shape of the bottle is unique
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too. Moreover, the labeling on the package gives the customer information about the brand, the product composition and the attributes.
2.1.4 Market segmentation, targeting and positioning
In a bid to celebrate its heritage and values and at the same time, connect with the active and adventurous generation of beer drinkers, the Carlsberg Group, the Danish brewing company with its headquarters in Copenhagen, Denmark, has come up with a new brand positioning. As a part of the new positioning, Carlsberg has changed its tagline from 'Probably the best beer in the world' to 'That calls for a Carlsberg' . The new global brand positioning encourages consumers
to step up and do the right thing - reward themselves for their efforts." While the old slogan doesn’t speak to the situation or lifestyle of the target con sumer, the revised version represents an idea that consumers can connect to on a personal level. The new slogan aims to create a new voice that resonates with bold and young individuals who like to dream big and reward themselves. In its step towards new brand positioning targeted at a fresh and vibrant market, Carlsberg will have to be wary of alienating brand loyalists and ensure that the idea behind new campaign jives with brand’s core identity. The new positioning has a revised and more specific target audience. Earlier, Carlsberg had a broad and relatively mature target audience. It will continue to target this group, and also expand its focus to include the younger generation of beer drinkers - the audience in the 28+ age bracket. The target audience is the social drinker who savors like-minded company and believes in getting the most out of life - somebody with an explorer's mindset, and someone who is willing to move out of his or her comfort zone to try something new.
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As part of the new global re-branding, Carlsberg has also revamped its visual identity by changing its packaging across 140 markets. The new visual identity has been implemented using four design principles - bold, authentic, modern and approachable - keeping in mind the new positioning. The brand's logo now carries three elements: the Brewer's Star, the Hope Leaf, and the inclusion of "Copenhagen 1847," indicating where and when the beer was first brewed. These three elements are together for the first time. New packaging is currently being rolled out this year across all 140 markets. In the new packaging, the Carlsberg logo has been changed from horizontal to vertical, to create a bigger impact when placed on the shelf. The Danish Royal Crown has been made simpler. "This will allow Carlsberg to continue to tell the story of its authenticity and premium quality. The prevailing green identity of the brand has been consistent since 1904. It is now more vibrant. The antique gold has been replaced by a more sophisticated alloy of gold and silver.
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2.1.5 Competitor’s profile
The major local competitor for Carlsberg in the Nepali market as according to our survey and analysis are Tuborg, San Miguel, Everest, Nepal Ice and Gorkha. Though there are many other brands of beer in the market that are doing a good business, they however don’t compete to gain the market that Carlsberg strives to achieve. Carlsberg’s target market is generally the premium class population of the country. Hence it charges a premium price to its customers. The situation is also that the switching cost is low and other substitute products have made it difficult for Carlsberg to retain its market share. The Competitors’ analysis in terms of preference shows that
1
(Das)
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the highest preference is for Carlsberg (3.78) Tuborg (3.70) San Miguel (2.71) Everest (2.51) Gorkha (2.41) and finally Nepal Ice (2.27). Exhibit 13
2.1.6 Points of Parity (POP) and Points of Difference (POD) Points of Parity (POP)
Points of parity may not be unique to the brand rather it is shared among the similar brands. However, the customer must have a belief that the brand is good enough on a particular attribute so as to achieve a point of parity. The POPs for Carlsberg are:
Carlsberg like its international competitors have similar alcohol content and have similar products such as light beer for younger crowds.
For its marketing strategy and promotion it sponsors different sports events internationally and carry out similar promotions country wise.
In terms of Positioning, it has been positioned as the premium brand with high quality. According to the survey too, the customers perceived it as the “premium” beer.
Like its competitors, Carlsberg is made available in retail stores, super markets, bars and restaurants where we can find its competitive brand easily. Thus, points of parity in terms of channel of distribution, has been well maintained by Carlsberg.
Points of Difference (POD)
Points of difference are the attributes or the benefits that consumers strongly associate with a brand, positively evaluate and believe that they could not find in the competitive brand. The major PODs for Carlsberg are:
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In terms of brand element, Carlsberg is different bottling compared to competitors. In Nepal, the beers available are all bottled in brown color bottle but Carlsberg’s bottling is unique with logo changed from horizontal to vertical.
In compared to local competitors, Carlsberg has less alcohol con tent.
Carlsberg is deeply involved in heavy promotions, more so internationally than locally. However, the promotion is carried out according to the local laws and regulations. In Nepal, the recent restrictions has prevented from conducting marketing activities but being in align with the promotion carried out by Carlsberg group, Gorkha Brewery conducts promotional campaigns like “win tickets to Premier league football” etc. Similarly, it has also shown huge presence in social media sites and focus on personalized marketing.
Carlsberg has been portrayed as the beer for daily consumption.
2.1.7 Mental Map of Carlsberg
For Carlsberg, other informational nodes linked to the brand node in memory are presented in the figure below. The figure shows how the brand associates itself with the various attributes of beer and the differential attributes alike. Exhibit 1 2.1.8 SWOT Analysis
The analysis of internal and external environment through SWOT analysis is in Exhibit 2.
2.2 Brand Hierarchy:
Carlsberg group has 309 brands of alcoholic beverages and out of which it offers 220 in terms of types of beer. In Nepal, Gorkha Brewery distributes Carlsberg along with other beers. The 9|Page
portfolio of beer under Gorkha Brewery includes, Carlsberg, Tuborg San Miguel and Gorkha Beer. Now, following is the brand hierarchy of Gorkha Brewery.
Brand hierarchy has two dimensions: horizontal and vertical. The horizontal dimension reflects the endorsed or sub-brand that resides under the umbrella of family brand whereas vertical requires a number of brand and sub-brands for single-market entry. Thus, the brand hierarchy tree provides direction for the brand extension and resource distribution among them. The Carlsberg Beer is horizontal expansion of the Carlsberg Group parent brand. Exhibit 3
2.3 Brand Exploratory
Brand Exploratory is carried out to find out the possible sources of brand equity for a brand. The brand exploratory for Carlsberg is explained as follows:
2.3.1 Measuring brand equity: Brand resonance pyramid
Brand resonance pyramid (Exhibit 12) is an effective tool to analyze the brand equity. The different sections in the pyramid describe both the emotional and the rational aspects of the brand. In context to brand awareness 52 respondents were surveyed out of which all are well aware of Carlsberg, as 100% of the respondents have accepted the fact that they have heard about Carlsberg before. Among the 100% of the respondents, 88% of them have tried Carlsberg before and only 12% haven’t tried it till date. (Exhibit 11). In regards of performance, the highest scorer is quality. 27% of the respondents think that Carlsberg is better in terms of quality. 19% of respondent believe that the beer is stylish and attractive. 16% of them feel that it is likeable and 14% think that the beer is promoted attractively. The rest score are innovative (4%),
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trustworthy (9%), concerned about customers (4%), convenient to use (3%0 and variety (4%). Exhibit 4
Brand imagery of Carlsberg can be evaluated by the frequency of purchase by the customers. It was found that 73% of the respondents do not purchase the beer often and only 27 % of them buy it in a regular basis. It suggests that brand imagery of Carlsberg is moderately low since customers do not buy it more often. (Exhibit 5). Upon analyzing the reason behind switching to a new brand, the responses were cost (7), taste (26), availability (19), advertisement (5), reference group (10) and with other reasons (6). With this it can be predicted that most people switched brand because of dissatisfaction in taste and not availability of Carlsberg. Exhibit 14
In context to brand feeling, they judge the performance based on different features. The percentage of responses was found to be wholesome (5%), honest (7%), cheerful (31%), upper class (9%), stylish and cool (38%) outdoorsy (10%). Respondents feel that Carlsberg is more stylish and cheerful in nature as its personality. Thus, the brand feeling is somewhat satisfactory in terms of what the Carlsberg want to portray itself in the minds of customers. Exhibit 6 In context to brand judgment, the responses were more inclined towards appealing part gaining score average of 3.98. So it more than neutral and skewed towards appealing. In terms of quality, Carlsberg scores 4.12 which means of High quality. Finally, for the pleasant and unpleasant aspect of the beer, the score was 3.90 which shows that people considers Carlsberg as more pleasant beer. Exhibit 7 When asked about loyalty, only 33% of the respondents were found to be loyal to Carlsberg in contrast to 67% who were not loyal for the brand. In the satisfaction scale, 67% of the respondents were satisfied with the beer and 33% were not satisfied with it. It can be seen that 11 | P a g e
the target market of Carlsberg has less loyalty towards the brand. In overall, the resonance of the respondents towards the brand was not satisfactory at all. Exhibit 8 and Exhibit 9 Upon talking about favorable attitude of the respondents, it was somewhere near to neutral. The score is 3.47 which show that respondents have neither positive nor negative attitude towards brand. When asking respondents about whether they will refer Carlsberg to others, the answer was almost the same as favorable attitude. Even its score was a little above than neutral i.e. 3.53. For the question, Is Carlsberg worth a premium price, then the response was neither yes nor no with the average of 3.27. Another question to the respondents were if they can relate themselves to Carlsberg or not, then their answer was a gain to neutral i.e. 3.25. Exhibit 10
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Chapter 3
Brand Personality
3.1 Brand Personality Assessment of Carlsberg
Brand Personality is the human characteristics or traits that consumers can attribute to a brand. According to Aaker’s brand personality, which has five core dimensions that is measured in a 5 point rating – 1 being the less descriptive to 5 being more descriptive, we get the following result: Factors
Facets & Traits
Average Rating (5)
Sincerity
Down to earth, Honest, Wholesome and Cheerful
3.5
Excitement
Daring, Spirited, Imaginative and Up-to-date
4
Competence
Reliable, Intelligent and Successful
4.5
Sophistication
Upper Class and Charming
4
Ruggedness
Outdoorsy
3
According to our survey of 52 candidates, we found that Sincerity is lagging in this brand. The candidates fell that the brand is just above average in its features like down-to-earth, wholesome, honest and cheerful personality types. It has secured good rating in Excitement features which is daring, imaginative, spirited and up-to-date. People find this band somehow exciting and like to try it. It has got very good rating in Competence features like reliable, successful and intelligent to other beer brands. People also find it fully Sophisticated. They find it upper class and
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charming type of brand. It is just above average in its Ruggedness type of feature like tough and outdoorsy. Overall, the Carlsberg is rated high in its Sophistication and Competence but has lower rating in Ruggedness. According to the Projective technique, which involves the use of stimuli that allow participants to project their subjective or deep-seated beliefs onto other people or objects, Carlsberg is associated to following: If Carlsberg is
Name
Animal
It could be Lion, Leopard, Horse
Activity
It could be Water surfing, Horse riding
Fabric
It could be John Player, Wills, Raymond, Reid and Taylor
Cologne or Perfume
It could be Polo, Gucci
Music
It could be Rock and Slow rocks, Jazz
Car
It could be Luxurious Sedan e.g. BMW
Occupation
It could be Businessman, Bankers, Celebrities
Sport
It could be Soccer, Golf, Tennis
TV show
It could be Sports, Business talk show
People associated Carlsberg with Animals like lion, leopard and horse which are more masculine and tough animals. They even associate it with Activities like water surfing, horse riding and friends get-together which is daring, exciting, tough and sophisticated type. In Fabric, they associate it with John Player, Wills, Raymond, Reid and Taylor which is up-to-date, successful and upper class type of product. They even associate it with Cars like BMW, Ferrari,
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Volkswagen, etc. which is also upper class and successful type of product. It is also associated with Occupation of white color job and celebrity which is again associated with successful and up-to-date and upper class type of product. It is associated to Sports like soccer, golf and tennis which is again associated to successful and upper class type of product. It is associated to TV show like Sports, Business talk show which is also associated to successful and exciting type of features. Thus, Carlsberg is again associated to Sophisticated, Competent and Exciting product according to this Projective technique as well. According to the Zaltman’s ZMET technique, which suggests that the impression and feeling of any brand and products can be influenced by other’s sensory feelings, we get the following responses from the respondents as the answer to the feeling of being with Carlsberg that it is trendy and contemporary; casual, smart but confident; matter for togetherness and celebration; successful and up-to-date type of brand and so on. According to Fourier’s Typology, which suggests about the brand relationship quality, the respondents were observed all high in Commitment, Passion and Intimacy.
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Chapter 4
Recommendations
Even though the targeting of Carlsberg is male population young and mature but as per the audit it can be seen that customer perceives the beer is made for ladies. The targeting, segmenting shows a huge gap as the company wants customers to perceive and how exactly do they perceive. So, Carlsberg should either produce a lagger beer targeting male or should target female population.
Customers relate Carlsberg to football but since it is a light beer, customers do not relate themselves to it. ……………………….
Carlsberg changing from “Probably the best lager in the world” to “That calls for a Carlsberg” and changing the packaging should not be viewed a tactical adjustments to boost sales in the short term. It should establish itself as a confirmed strong and valuable brand in the mind of customers.
Exhibits
Exhibit 1: Mental Map of Carlsberg
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Party
Green
Football
Exhibit 2: SWOT Analysis
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Strengths:
Strong customer and brand loyalty Unique packaging that customer could recall
Weaknesses:
Differentiated brand available in over 140 countries
Less innovation in recent years
Global pioneer of international strategy by acquiring national breweries
Penetration in the market is low
Huge presence in Nepal, China, Hong Kong, India, Laos, Malawi, Malaysia, Singapore, Sri Lanka, and Vietnam with strong brand awareness
Intense competition in Asia Limited opportunities to grow through acquisitions due to the shareholder structure
Excellent advertising and branding with sponsorships of popular events Good at innovating new products Availability of recourses for marketing campaign
SWOT Analysis of Carlsberg Beer
Opportunities :
Threats:
Low calorie beer, which is healthier
Comparatively low prices of competitors
Increasing spending power of such premium products amongst the consumer
Strict law against drink-and-drive cases
Rapid Increase in population of beer drinkers in Asia
Misuse of brand name
Focusing more on premium segment for growth on more mature markets
Intensive competition
Streamlining business more creates room for improvement
General tendencies in health awareness Higher taxes and duties on beer lower consumption
Exhibit 3: Brand Hierarchy
Gorkha Bewery
Carlsberg
San Miguel
Exhibit 4: Word Association of Carlsberg 18 | P a g e
Tuborg
Gorkha Beer
Carlsberg is : 21 15 12
11
7 3
3
2
3
Exhibit 5: Frequency of purchase of Carlsberg
How often do you purchase Carlsberg ? Often
Not often
27%
73%
Exhibit 6: Personality of Carlsberg
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Personality of Carlsberg 22 18
4
3
Wholesome
Honest
6
5
Cheerful
Upper class
Stylish/Cool
Exhibit 7: Customer Rating of Carlsberg
Customer Rating of Carlsberg 4.15 4.1
4.12
4.05 4 3.95
3.98
3.9 3.9
3.85 3.8 3.75 Unappealing Vs Appealing
Low quality Vs High Quality
Exhibit 8: Brand Loyalty for Carlsberg
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Unpleasant Vs Pleasant
Outdoorsy
Brand Loyalty For Carlsberg Loyal
Not Loyal
33%
67%
Exhibit 9: Satisfaction/Unsatisfaction for Carlsberg
Are you satisfied or unsatified with Carlsberg? 35
17
Satisfied
Exhibit 10: Brand Resonance of Carlsberg 21 | P a g e
Unsatisfied
Brand Resonance of Carlsberg rated by customers (Out of 5)
Favorable attitude
3.47
Recommend to others
3.53
Worth Charging premium price
3.27
Relate my self
3.25
Exhibit 11: Percentage of people who tasted Carlsberg
Have you ever drank Carlsberg ? Yes
No
12%
88%
Exhibit 12: Brand Resonance P yramid of Carlsberg
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Resonance:
less Loyalty, less repeated purchase
Brand judgment: Likeable, appealing, high quality & pleasant
Brand feeling : moderate excitement, stylish
Brand performance:
Brand imagery: Less
Premium, consistent taste
innovative, cheerful, outdoorsy & upper class
Brand salience
Brand awareness depth and breadth: Green bottle, advertisement aspect is creating most of the brand awareness
Exhibit 13: Rating of Beer preference
Rating Preferences of Beer ( 5 highest and 1 lowest) 3.78
3.71 2.71
Carlsberg
Tuborg
San Miguel
2.51
Everest
Exhibit 14: Reason for switching to different brands 23 | P a g e
2.27
2.41
Nepal Ice
Gorkha
Reason for switching to different barnd 26
19
10 7
6
5
Cost
References 24 | P a g e
Taste
Availability
Advertisement
Reference Group
N/A
http://heinekensbm.tumblr.com/page/3
http://www.carlsberggroup.com/Markets/asia/Pages/Nepal.aspx
http://www.gorkhabrewery.com/port_carlsberg.php http://www.carlsberggroup.com/csr/approach/our_strategy/Pages/default.aspx http://www.ias.org.uk/resources/publications/theglobe/globe200103-04/gl200103-04_p4.html http://www.hamropalo.com/carlsberg-offers-wonderful-opportunity/ http://nepaloutdoors.com/partynepal/view-featured.php?id=10 http://fabodylous.com/2011/05/saving-mt-everest-with-carlsberg-day-1.html http://test.www.carlsberggroup.com/Investor/DownloadCentre/Documents/Other%20Presentatio ns/27.11.06%20Carlsberg%20in%20asia.pdf http://www.carlsberggroup.com/investor/downloadcentre/Documents/Annual%20Report/Carlsbe rg_2011%20Annual_report_English.pdf http://www.newbusinessage.com/Sectoral/520
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