Business Strategy for Carlsberg Group: Marketing Mix, SWOT Analysis and International Business

This paper discusses the business strategy of Carlsberg Group, including its marketing mix, SWOT analysis, and international business. It analyzes the company's product, price, place, and promotion strategies, as well as its strengths, weaknesses, opportunities, and threats. The paper also examines the external factors affecting the company's international strategy, such as political, economic, social, technical, and environmental factors.

Running Head: BUSINESS STRATEGY
BUSINESS STRATEGY
Name of the Student
Name of the University
Author Note

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Executive Summary
The aim of this paper is study the various business strategies to increase the market share of
the selected company. Further it will focus on the international strategy which it uses to
penetrate and execute its functions in more than one country. This will help the readers to
achieve an insight of the business process and its executions.

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Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Company Background............................................................................................................3
Marketing Mix of Carlsberg...................................................................................................3
SWOT Analysis.....................................................................................................................6
International Business............................................................................................................9
References................................................................................................................................12

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Introduction
Business strategy is the set of instruments used by most of the successful companies
in the world. These includes a set of non-prescribed strategies, plans and tactics to sustain in
the market. This helps the business for long run market existence.
International business strategy are the set of instruments used by the multinational
companies to penetrate, succeed and capitalize foreign markets. It mainly requires analysis of
the foreign markets focusing on the available resources. The strategy must be able to define
and identify the goals, understanding the complexity and the dynamics of the market and
finally developing long term goals.
Discussion
Company Background
Founded by J.C. Jacobsen in 1847, Carlsberg group is a renowned global brewer with
its headquarters in Copenhagen, Denmark. The Carlsberg foundation has been the majority
owner of the company since the death of Jacobsen. The flagship brand of the company,
Carlsberg was named after the Carl, the founder’s son (Carlsberggroup.com 2019). The main
products of the company include beers, ciders, bottled water, soft drinks, with the prominent
brands being Carlsberg, Kronenbourg 1664, Tuborg, Grimbergen, Baltika, Somersby and
Gorkha beer. One of the most recognized and largest brewers in Europe, the Carlsberg beer
portfolio incorporates several brands, which are significantly influenced by the price, volume,
target audience as well as geographic penetration.
Marketing Mix of Carlsberg
The Marketing Mix, also recognized as the 4Ps of marketing, contributes as a
foundation model for analyzing business organizations. The 4Ps of marketing mix constitutes

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of marketing tools, which are utilized by firms in order to determine the marketing objectives
of a company in a targeted market (Khan 2014). The four broad areas of marketing decisions,
such as, Product, Price, Place and Promotion are included within the scope of the 4Ps of
marketing mix. Consequently, these tools are utilized in the following section for analyzing
the Carlsberg Company.
Product
The product segment of the 4Ps of the marketing mix focuses on describing the
attributes of the chosen product and the position it secures in the market (Haider et al. 2019).
The product portfolio of the Carlsberg group incorporates a wide variety of brands including
several local brands as well. The chosen product for this marketing mix is the flagship beer
brand, Carlsberg, popularly recognized as Carlsberg Pilsner, Carlsberg Beer and Carlsberg
Lager. Carlsberg was first procured in 1904; the Special Brew, another variant of the product,
was made in Denmark and the United Kingdom, which is a strong lager, enhanced with the
cognac flavor, and was brewed for the purpose of commemorating the visit of Winston
Churchill in Denmark, in 1950.
Titled as Special Brew in the British market and Easter Brew or Passerby in the
market of Denmark, the product has alcohol content of 7%. A 500ml can of the Special Brew
consists of three and a half units of alcohol. In 1955, an Elephant label was created as a
strong beer, which is still exported globally under the production of the Carlsberg breweries
(Hatch and Schultz 2017). Another strong beer variant from Poland with an alcohol content
of more than 5.6% is Okocim Palone. Carlsberg is not only recognized around the globe but
is also renowned as one of the most preferred beverage choices in several countries.
Price

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In this section, the pricing strategies implemented by varied businesses are identified
along with the impacts of such strategies on the customers and the competitors of the
company. The product range of the Carlsberg Company is mostly affordable in the global
market, as it exists in diverse sections of the global market segments. Although being a
premium mild beer, the pricing policy of Carlsberg does not necessarily follow premium
pricing (Singh 2013). This is done with the motive of remaining ahead of the other premium
brands of beers, which pose as competitors of Carlsberg in the global market. In order to
penetrate the local markets, the Carlsberg Company utilizes the Tuborg brand, which is often
preferred more by the economically conscious consumers since its price is more affordable.
The several variants of the product comes with varied pricing in order to lure a wide range of
consumers. Carlsberg is also investing on the company’s international brand image with the
purpose of acquiring a market segment in the upper section of the society. The brand has
ventured in varied territories and has consequently maintained the penetration pricing
strategy so as to strengthen the customer base for the company.
Place
The place segment of the marketing mix is utilized for analyzing the distribution
channel followed by the concerned company. Herein, the existing markets along with the
emerging markets are analyzed, as well as the hindrances in the channel are also stated. The
international beer market is expanding at a higher rate due to the greater volumes of
consumption among the consumers. The market of the company is primarily concentrated in
the European market, spread across the Eastern, Western and Northern markets. Carlsberg
has numerous outlets across the globe with the aim of reaching out to the wide customer base.
It must also be noted that the distribution system of Carlsberg is highly efficient and provides
rapid results, which enhances the production process of the company immensely. The
emerging market for the company is the Asian market with the prime focus being the Indian

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market (Hoenen and Hansen 2013). Hence, the distribution channels of the company are
focused in the northern, eastern and western regions of Europe along with the potential Asian
market. The hindrances in the global distribution chain of the company is encountered in the
Islamic countries wherein alcohol is prohibited as they follow the Sharia Law (Johnson and
Vriens 2014).
Promotion
This category of the marketing mix describes the various mediums through which the
firms can advertise and promote their products in order to lure consumers to purchase their
products. The Carlsberg Company utilizes brilliant advertising and branding strategies to
maintain its vast global presence. The company follows the aggressive promotional strategies
in order to retain the long term image of the products among the consumers. Carlsberg has
always utilized the new and recent mediums of promotional strategies to penetrate into new
markets (Ghose, Heiman and Lowengart 2017). In order to make the consumers relate to the
product, Carlsberg utilizes multi-domestic and local mediums of promotional strategies. The
target market of such strategies are usually the youth and primarily the sports enthusiasts as
the company is known for sponsoring sports events as well as live music events (Club 2013).
For instance, Carlsberg had sponsored the Liverpool team in the English Premier League for
twenty-five years. The Company constantly re-innovates its marketing strategies and has
utilized the social medium platforms for advertising purposes. With such other methods as
distributing free samples and organizing customer oriented promotional and interactive
events, the company has attained its position as a widely recognized international brand.

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SWOT Analysis
SWOT Analysis helps the company to understand the external and internal possibilities of the
concerned company and enables them to analyze positives and negatives of the company. The
components of SWOT are Strength, Weakness, Opportunity and Threat.
Strength
1. Product Portfolio: The main strength of the company is the large portfolio of alcoholic
and non alcoholic beverages. It has acutely studied the taste and preferences of the
beer consuming population and has introduced the products according. For instance,
the people who prefer a little harder drink has an option of the elephant beer. A softer
version of the beer is available Kronenbourg 1664. It has almost more than 500
brands under its portfolio.
2. Loyal Customers: Carlsberg beer has been around for more than 100 years now. It has
perfected the taste of the iconic beer which has an unique taste. This has resulted in
the formation of loyal followers of the brand. On the other hand, the flagship product
of the company is standard but is priced below the premium price. This helps the
company in two ways. Firstly, the new consumers will easily purchase the product
and secondly, the premium customers will prefer the product due to great taste.
3. Recall Value: The recall value of the Brand is very high and more than other
competitors globally. The marketing and advertisement team of the company is very
strong and has used transformational promotional techniques to capture the minds of
the people. It has always positioned itself as a drink for the people who are sports
enthusiast.
4. Global Coverage: As the company has been in the industry for a long time, it has
successfully covered and is present in more than 150 markets of the world. This has

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helped them to achieve the market proportion. In addition, they are not dependent on a
particular market and the sales are evenly distributed globally.
5. Marketing Campaigns: One of the biggest strength of the company is its strategies
used in marketing and advertisement. It has always used aggressive strategy in its
marketing and advertisements and has been present in all types of media over the
years so that the consumers do not forget the presence of the brand from their list of
options. It has also used the social media very precisely to target the customers who
are technologically advanced. On the other hands, it has also sponsored sports events
and has been the brand ambassador of Liverpool football Club of the English
Premiere League.
Weakness
1. Heavy Dependency: The company and its revenue are hugely dependent on two of its
products, Carlsberg and Tuborg. Other than these two brands the other brands are present
only to increase the product portfolio of the company.
2. New Market Penetration: In the developing countries, the company is facing huge
competition from the local brewers.
3. Increased Global Competition: With the emergence of other beer manufacturing
companies such as Budweiser and Heiniken. On the other hand, huge proportion of the
people are preferring whiskey and rum over beer.
4. Health Awareness: With the advent of the social media and its authority the people are
getting more health conscious. This has hugely affected the sales refvenue of the
company.

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Opportunity
1. New Emerging Markets: The new markets of Asia and Africa are emerging exponentially
and has to be next target market of the company.
2. Merger and Acquisition: The Company to expand in the new markets can merge with the
local brewers to manufacture the beer and distributors to expand the market reach for
selling the products. On the other hand, the companies can also acquire companies
through foreign direct investment and foreign portfolio investment in the new countries.
3. Increase in Income: The second world and the third world countries are exponentially
developing over the years. As a result the per capita income of the people are also
increasing which is a huge opportunity for the company to target the new customer
segment.
Threat
1. Competition: The Company is facing a stiff competition from the local brewers as well as
the global competitors such as Budweiser and Heineken.
2. Laws and Regulations: Over the years, the laws and regulations of the countries are
becoming more stringent which is causing a huge problem for the company. On one hand,
the lower limit of age for consumption of beer has increased and on the other hand, the
tax proportion have risen exponentially affecting the price of the products. This will
restrict the total target market and reduce the sales revenue of the company.

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International Business
International Strategy is a process in which multinational corporations of the world
use various tools and tactics to become a dominant player in the market. There are various
external factors, which determine what international strategies will be adopted by an
organization. Such external factors can be evaluated with the help of PESTEL Model that is
described as follows:
1. Political Factors
a) Legal drinking age in different countries: Across various countries, the legal
drinking age has been increased which has affected the sales revenue drastically
and
b) Rules for selling hours in Alcohol Shops: The selling house of the shops also
determines the sales as the duration determines the number of footfalls of the
customers daily.
c) Smoking and Drinking Ban: In many countries and especially in the Middle East
countries, which follows the Sharia Law, drinking is illegal. Even though the per
capita income of the citizens are high, these countries cannot be accessed due to
the prevalence of such laws.
d) Pricing Regulations: The pricing regulations also plays an important role for
entering and selling in foreign countries. In the same country the product is sold at
different prices across various states depending on the income levels of the
country.
2. Economic Factors

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a) Exchange Rate Fluctuations: The exchange rates of the different countries undergo
severe fluctuations, which may affect the transactional process during ploughing back
of profits.
b) Disposable Income: Another important factor is the disposable income of the people.
This means that the levels of income of the people of the nation is directly
proportional to the sales revenue of the company.
c) Economies of Scale: Economies of scale is a phenomenon where the company shall
increase the production to such an extent that the price of the products is reduced.
d) Prices of Raw Materials: The cost of the raw materials also determines the price of the
products as the ingredients required to manufacture the beer maybe found in
abundance or scarce.
3. Social Factors
a) Consumer awareness about the products: The level of awareness about the adverse
effects also affects the sales and revenue of the company.
b) Changes in Demography: The demographic changes also has a huge effect on the
sales of the company. The countries in which the age group of the youth are
maximum, the sales are high and vice versa.
4. Technical Factors
a) Innovations and improvement of Products: Constant innovation according to the
taste and preferences of the consumer are of huge importance. The market for
flavored beer is rising so must be taken into account.

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b) Localization of Company Website: The internet has taken the front seat in the
market. Therefore, website must be used effectively to provide information to the
customers with the help of locations
5. Environmental Factors
a) Increasing Trend of Organic Products: The organic trend has been increasing over
the years and the organic products is becoming a hugely preferred product of the
customers. Therefore, the future is ready for organic beer.
b) Recycling Technology: The recycling of the beer cans and bottles is widely
accepted and reduced the amount of wastage.
Conclusion
From the above discussion, we can conclude that the company Carlsberg is a
strong player in the beer market. On the other hand, from the business strategies
and international strategies it can be said though the market has become tougher
due to high levels of competition but the tactics mentioned will help Carlsberg to
sustain in the long run.

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References
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[Accessed 11 Sep. 2019].
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Club, M.C.F., 2013. Sport marketing in the modern age. Sport Management in the Middle
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Johnson, T. and Vriens, L., 2014. Islam: governing under Sharia. Council on Foreign
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