MMK101 Assignment 1: Carlton & United Breweries STDP Framework Report

This report provides a detailed STDP (Segmentation, Targeting, Differentiation, and Positioning) analysis of Carlton & United Breweries (CUB). The report begins with an overview of the liquor retail industry and CUB's market position, including its current offerings and target market in Australia. It then delves into market segmentation, proposing and justifying segments based on geographic, demographic, psychographic, and behavioral factors. The report identifies a target market of high-income premium customers aged 35-65. Furthermore, it outlines a differentiation strategy focusing on premium craft beer with various flavors and a positioning statement emphasizing the use of finest and natural elements. Finally, the report includes a positioning map and references to support the analysis.

RUNNING HEAD: MARKET FUNDAMENTAL
MARKET FUNDAMENTAL
Name of the Student:
Name of the University:
Author’s Note:

1MARKET FUNDAMENTAL
Table of Contents
1. Background:.............................................................................................................................3
1.1 Industry overview:............................................................................................................3
1.2 Company Description:......................................................................................................3
1.3 Competitor’s description:..................................................................................................3
1.4 The current strategy of the company:...............................................................................3
1.4.1 Current market offerings:..........................................................................................3
1.4.2 Current target market in Australia.............................................................................3
2. Market segmentation...............................................................................................................4
2.1 Segmentation table............................................................................................................4
2.2 Justification of the segments.............................................................................................4
3. Target market...........................................................................................................................5
3.1 The proposed target market...............................................................................................5
3.2 Justification of the target market.......................................................................................5
3.3 Target market profile........................................................................................................5
4. Differentiation and positioning strategy..................................................................................5
4.1 Proposed differentiation bases..........................................................................................5
4.2 Proposed value proposition...............................................................................................6
4.3 Positioning statement........................................................................................................6
4.4 Positioning map.....................................................................................................................7

2MARKET FUNDAMENTAL
References:......................................................................................................................................8

3MARKET FUNDAMENTAL
1. Background:
1.1 Industry overview:
Liquor retail industry offers liquor which contains wine, several types of beer, and ready
to drink mixers in wrapped form. For the last five years, retailers of this industry are facing
several problems because of the competitive environment and health-consciousness
(Statedevelopment.qld.gov.au. 2018).
1.2 Company Description:
Carlton & United Breweries (CUB) is an Australian brewing business organisation,
which is headquartered in Melbourne, Australia. Peter Filipovic is the present CEO of this
company. Ab InBev is the parent company of this organisation. In 2019, the total revenue of
this company was $4.4 bn (Cub.com.au. 2020).
1.3 Competitor’s description:
Rivalry business organisation of CUB are Lion, Asahi Holdings (Australia) Pty Ltd, Coca-
Cola Amatil Limited, Coopers Brewery Limited and Gage Roads Brewing Co Ltd
(Cub.com.au. 2020).
1.4 The current strategy of the company:
1.4.1 Current market offerings:
The authority of this organisation is interested to expand its product diversity in craft beer.
1.4.2 Current target market in Australia
This organisation is interested to target the adult citizen of Australia.

4MARKET FUNDAMENTAL
2. Market segmentation
2.1 Segmentation table
Geographic segmentation
 Throughout Australia
Demographic segmentation
 The high-end customer between the
age group of 35-65 years.
Psychographic segmentation
 Customers who enjoy the taste of craft
beer
Behavioural segmentation
 Premium customer, interested to
maintain social status.
2.2 Justification of the segments
In this part, the justification for the market segmentation will be discussed. For the
geographic segmentation, the authority of this company is interested to target entire Australia.
The craft beer will be delivered throughout Australia. For the demographic segmentation, it can
be said that the authority of this company will target the high-end customer of this country. It
will help this company to increase its market share in Australia. To muscle out its competitors,
wide market segmentation will be useful for this company. For the psychographic
segmentation, it can be said that the authority of this company will target the customers who
enjoy the taste of craft beer. Core craft beer lover, who enjoys the subtleties of this specific type
of beer will be targeted. This type of customer prefers a quality product. This type of customer
discriminates craft beer based on quality. For the behavioural segmentation, it can be said that
the senior executive of this company will target the premium customers. The premium
customers prefer craft beer not only for its taste but also to maintain social status. So it can be
said that the authority of Carlton & United Breweries will target the premium customers, who

5MARKET FUNDAMENTAL
prefer craft beer with the best quality. This company will deliver its products throughout
Australia. High-end customers will be targeted to increase the level of profit (Gómez-Corona et
al. 2016)
3. Target market
3.1 The proposed target market
The suggested target market for this organisation will be high-income premium customer
group. The targeted market for this company will be the age of 35-65 years. The high-end
customer group will be targeted by this company.
3.2 Justification of the target market
In this part, the justification for targeting the market segment will be discussed. Premium
products for the high-end customer group will be provided by this company (Murray and
O'Neill 2012). It will help this company to increase its profit. This organisation will offer
premium craft beer for the customer, who prefer the best quality craft beer.
3.3 Target market profile
Carlton & United Breweries will offer craft beers for high-end customers. The product
quality of the craft beer will be high. More variation will be offered for the customer. Various
flavour options will be offered by this company.
4. Differentiation and positioning strategy
4.1 Proposed differentiation bases
This organisation will offer the best quality craft beer for the customer. This organisation
will offer Brut IPA, 4 pines, pirate life, Sour beer, Gose beer, and other premium craft beer

6MARKET FUNDAMENTAL
for the customer. A different marketing strategy will be used by this company, which will
prioritise the local culture of this country. To differentiate the product, this organisation will
offer t-shirts, hats and glasses with the craft beer. So it can be said that the authority of this
company will offer extra benefits to the customer.
4.2 Proposed value proposition
Target segment The high-end customer between the age group of 35-65
years of Australia.
Brand name Carlton & United Breweries
Point of differentiation Premium craft beer with several variations.
Emotional benefits This product will offer a sense of pride and sophistication.
Functional benefits Unique handcrafted products will be offered for the
customers.
4.3 Positioning statement
As the best brewer in this world, we will provide the best craft beer by using the finest and
natural elements.

7MARKET FUNDAMENTAL
4.4 Positioning map

8MARKET FUNDAMENTAL
References:
Cub.com.au, 2020. Brewing | Carlton & United Breweries (CUB). [online] Cub.com.au.
Available at: <https://cub.com.au/about/brewing/> [Accessed 9 April 2020].
Cub.com.au, 2020. Heritage | Carlton & United Breweries (CUB). [online] Cub.com.au.
Available at: <https://cub.com.au/about/heritage/> [Accessed 9 April 2020].
Gómez-Corona, C., Lelievre-Desmas, M., Buendía, H.B.E., Chollet, S. and Valentin, D., 2016.
Craft beer representation amongst men in two different cultures. Food quality and
preference, 53, pp.19-28.
Murray, D.W. and O'Neill, M.A., 2012. Craft beer: Penetrating a niche market. British Food
Journal.
Statedevelopment.qld.gov.au, 2018. Queensland Craft Brewing Strategy. [online]
Statedevelopment.qld.gov.au. Available at:
<https://www.statedevelopment.qld.gov.au/resources/strategy/craft-beer-strategy.pdf> [Accessed
9 April 2020].