SABMILLER

SABMiller's Launch in India

Table of Contents

Introduction3

Background of SABMiller3

SWOT Analysis5

Strengths5

Weaknesses5

Opportunities5

Threats6

Market Research Overview6

SABMiller's Rank in Global Competition6

SABMiller's Target Market in India6

SABMiller's Current Market Share in India7

SABMiller: Analysis of Five Forces Model8

Threat of New Competitors8

Barriers to Entry9

The Bargaining Power of Customers9

The Bargaining Power of Suppliers10

The Threat of Substitutes10

Competitive Rivalry11

Marketing Strategy Recommendations11

SABMiller's Strategic Approach in India11

SABMiller's Strategy for Mature Markets in India12

SABMiller's Strategy for Premium Markets in India12

Competitive Positioning of SABMiller in India13

Global Marketing Strategy of SABMiller14

SABMiller's Venture with China14

Conclusion15

References17

SABMiller's Launch in India

Introduction

The current target market identified by SABMiller is situated in India. SABMiller finds great potential in the market targeted in India. Hence, there must be effective strategies formulated in order to achieve large market share in the target market. The premium segment is expected to outperform the overall beer market in India, which accounted for more than half of premium volumes in the region. According to diverse sources, SABMiller is expected to grasp substantial market share in India; in addition, the launch of SABMiller was successful as its premium volumes grew by 8% in 2010, although less than the market average (13%), thus the company lost market share.

SABMiller India is expected to focus on regaining its lost volume share by reducing its reliance on specific market segments in India. It will establish its newly-launched brand, Indus Pride, as a strong competitor to Kingfisher (Basu, 2010, 78). SABMiller aims to attain the market share of the target population in the alcoholic beverage industry in India that is occupied by other premium brands, such as Carlsberg and Budweiser. The company is expected to expand its manufacturing capacity by adding bottling plants in Orissa, Goa, New Delhi and Chennai over the early part of the forecast period.

Background of SABMiller

SABMiller is the world's second largest brewer with a 9.5% global market share in 2010, behind market leader Anheuser-Busch InBev. The company has a broad geographic spread; in terms of volumes, Middle East and Africa is its largest market, closely followed by North America, Latin America and Eastern Europe. SABMiller has relatively small volumes in Western Europe, Australasia and Asia Pacific, however in Asia; it is present through its large equity stake in China Resources, which is the leader in the Chinese beer market. In 2010, the company saw flat volumes (0.5% decline), as declining volumes in Eastern Europe and North America offset growth coming from the Middle East and Africa, Latin America and Asia Pacific. According to diverse sources, SABMiller's revenues grew by 7% compared to the previous period. EBITA (operating profit before exceptional items and amortisation, including associates' and joint ventures' operating profit) was up by 13% to US$2,466 million, thanks to better pricing and cost efficiencies.

SABMiller is well placed in the United Kingdom and other countries around the globe; in addition, the company is celebrating the success of its new entry in India; however, there are certain factors that will affect the organization's performance. As import volumes are very limited in the country, the fastest way to enter would be through acquisition of a ...