Marketing Plan Rtd Cocktail In A Bottle (No Financials Or Break Even)

4507 words - 18 pages

Situational analysisCompany ProfileFosters Group Limited (Group), a global brewing company which supplies premium branded beer, wine, spirits and hospitality products across 150 countries, is an Australian public company run by a Board of six Directors on behalf of shareholders. It employs more than 14,000 people and generates around $5 billion in total annual sales. The Group emphasises excellence in manufacturing, technological innovation, and development of superior brands and its products include: Foster's Larger, Victoria Bitter, Crown Larger, Carlton Draught and Cascade Premium Larger as well as Wolf Blass, Saltram, Beringer, Matua and Chateau St Jean.The Group comprises four main operating arms:·Carlton and United Breweries (CUB) (which is the Australian beer and leisure arm of the Group)·Beringer Blass Wine Estate (which is the international wine company of the Group)·Foster's Brewing International (which manages Foster's Larger worldwide)·The Lensworth Group (which concentrates on development of real estate).CUB, Australia's largest brewer, is the biggest profit contributor to the Group. It employs more than 10,000 people and produces around a billion litres of beer a year. Its head office is located at 77 Southbank Boulevard, Southbank, Victoria. The Continental Spirits Company (CSC), a subsidiary of CUB, is responsible for the production and distribution of leading local spirits and ready-to-drink pre-mixed spirit drinks (RTDs). A division (established in 1995) of CUB, Australian Leisure and Hospitality (ALH) owns and operates more than 130 hotels and bottle shops throughout Australia, however, a decision to divest these outlets has recently been taken.The CSC markets a wide range of bottled spirits and RTDs throughout Australia. Products include The Black Douglas Scotch Whisky, Cougar Bourbon, Coyote Tequila, Karloff Vodka, Wilson's Whisky, Akropolis Oyzo and Continental Liqueurs. CSC is transforming its business into a low-cost producer and has repackaged Black Douglas and Cougar RTDs and launched Capri cocktails through its distributor Carlton Special Beverages.The Industry and MarketThe alcohol beverage market in Australia can be divided into six main segments: full strength beer (42% market share); wine (33% market share); spirits (12% market share); RTDs (6% market share); low alcohol beer (5% market share) and mid-strength beer (2% market share). Refer to Figure 1.0 for a pie chart depiction of the Australian alcohol beverage market divided into segments.The RTD segment is the fastest growing segment of the Australian alcohol beverage market with an annual growth rate of 18% during the past three years. This is significantly more than the 0.3% annual growth rate for beer. During the period from 1996 to 2002 annual sales of RTDs grew from 100,000 cases to almost 21 million cases. Currently, annual sales of RTDs generate approximately $500 million.RegulationWhilst the Group has a global market, Capri...

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