UNDERSTANDING MARKETING

Understanding Marketing

Understanding Marketing

Introduction

Background Information on the Company and selected Product

Foster group is one of the largest and leading brewers group and the main business of the organization is to produce, distribute and sell beer and spirits. The organization has a strong presence in other regions of the world like North America, South and Central America and Asia Pacific region. Beside this, the organization distributes its product to 45 countries all around the world.

As per the company's website, Foster announced the demerger of Treasury Wine Estates, which was basically Foster's wine business unit. Following the demerger of the wine business unit, Foster's business in Australia comprises of CUB (Carlton United Brewers) whose main production is all about beer, spirits and cider in Australia and also export these products to the different countries like Fiji and Samoa, where as in United States, the group gone under joint venture and known as USA LLC. However, in July 2011, Foster's re-launched its CUB brands. Some of prominent brands of beer are Foster, Abbotsford and Victoria Bitter. Whereas, on the other hand, Foster's cider and spirits business unit maintained by CUB. The cider portfolio consists of most popular brands of Australia that is Bulmers, Strongbow Cider and Mercury. On the other hand, spirits portfolio consists of The Black Douglas, Bourbon and Cougar.

Beside the alcoholic brands, Foster also provides a wide range of non-alcoholic brands as well that includes health and wellness products including the flavoured water and drinks based on natural products and artificial drinks (Fosters, n.d.).

SWOT Analysis

As stated above, Foster's offer its products in almost 45 countries with a diverse portfolio including beers, spirits, cider and non-alcoholic drinks. Similarly, the product portfolio of Foster consists of strong brand names, which help them to penetrate in any new market. However, there are negative health factors associated with Foster because of beer this factor adversely affect organization's growth sale.

Strengths

The most important strength of Foster is its well reputed brands. Foster's markets and distributes a global portfolio consisting of beers, ciders, spirits and non-alcoholic drinks. On the basis of this, the group re-invest significant portion of its sales revenues in promotion of its brands and thus targeting those areas from where the growth could increase. The organization already has market leadership in both cider and beer categories. The brand Victoria Bitter is the most successful and number one brand in beer.

Foster's group major strength is its widespread and diversified product line. After the acquisition of SABMiller, it gives the access to wider and more established beer market all around the world (Data Monitor, 2011). Therefore, a diversified product line for a company like Foster not only increases its strength but also increase the revenues.

Weakness

Overdependence on the Australian market

The group's operations are excessively dependent on the Australian market. Although Foster's has been acquired by SABMiller, it will take some time for the group to realize the geographic benefits provided by SABMiller and gain a foothold in mature ...