STRATEGY ASSIGNMENT

Strategy

Strategy Management

Introduction

This report seeks to set out the way in which Whitbread plc has approached its involvement with education links. In doing so, the report describes the historical context, structure and objectives of Whitbread's programme, together with the principal business benefits which the company seeks to gain from its involvement. In addition, the report goes on to consider a number of key issues not only for Whitbread, but for all those involved in linking education and industry. Furthermore, some key barriers and challenges to the link movement are identified and discussed. Background

Whitbread plc Current Strategic Situation

For the purpose of this case study we are proposing to launch a product called Whitebread Plc which is an alcoholic

drink. The rationale for this case study has come about due to initial secondary research which shows that the alcoholic drink market, or the hard drink market (products of which are known as “alcopops”) is a high growth sector. We have chosen to concentrate our efforts on attacking alcoholic drinks with a competitive marketing strategy.

According to the most recent market research data (November/December 1995), for the total UK off-trade, the total sales in litres for the total Alcoholic market was 2.9 million. Of this, Hooch enjoys 2.1 million litres and alcoholic drinks has only 0.5 million litres. This quite clearly establishes Hooch as the market leader. From our secondary market research we have found that there are 47 different varieties of alcoholic drinks, coupled with the fact that the sterling distribution for the alcoholic Alcoholic market grew from 3 per cent in June/July 1995 to 20 per cent in August/September, compared with only a 22 per cent increase for premium packaged lager (PPL) over a period of 12 months (market research statistics). The alcopop market is currently valued at £60 million and is a growing sector. This quite clearly shows that this product category is buoyant and an ideal prospect for a new product to be launched.

The market is mainly focused on the lemon segment. The first product to be launched in to this market was alcoholic drinks, which is distributed/owned by Merrydown. This was closely followed by Hoopers Hooch, owned by Bass and launched with a great deal of promotion and publicity (for launch details see Boston matrix).

Currently the entire alcoholic lemon sector is valued at £60 million (market research statistics). In June/July 1995 the market grew by 3 per cent. Then, in August/September, by a staggering 20 per cent.

The clear market leader is Hoopers Hooch with 75 per cent of the market, followed by alcoholic drinks with only 17 per cent.

Volume sales from June 1995 to January 1996 were as shown in Table I.

Currently, the entire alcoholic lemon market accounts for 3 per cent of the total on trade packaged market. That is 7.5 million litres sold in six months. There is therefore a genuine demand for the products. We have therefore set out to identify an opportunity to exploit this market potential through the development of a new, enhanced product, ...