Situation Analysis Report on Carlsberg, 7708MKT, Griffith University

This report presents a comprehensive situation analysis of Carlsberg, a leading global brewing company. It begins with an introduction to Carlsberg, its background, and the purpose of the analysis. The report then delves into a market analysis, examining both the macro and micro environments, including political, economic, sociocultural, technological, legal, and environmental factors. A competitor analysis is conducted to assess Carlsberg's position within the competitive landscape. The target market is identified and a mood board is provided. A SWOT analysis highlights the company's strengths, weaknesses, opportunities, and threats. Based on the analysis, the report offers recommendations for the company, focusing on product diversification, pricing strategies, and market expansion. The report concludes by summarizing the key findings and recommendations, providing valuable insights into Carlsberg's market position and future strategies.

STUDENT NAME AND NUMBER:
TUTOR NAME: ANGELA BOWLES
SITUATION ANALYSIS
COMPANY, BRAND / PRODUCT
NAME / IMAGE

Table of Contents
Introduction and Company Background................................................................................................. 3
Introduction........................................................................................................................................ 3
Company Background........................................................................................................................ 3
Situation Analysis.................................................................................................................................. 4
Market Analysis.................................................................................................................................. 4
Macro Environment Analysis.............................................................................................................. 5
Political Analysis............................................................................................................................. 5
Economic Analysis......................................................................................................................... 5
Sociocultural Analysis..................................................................................................................... 5
Technological Analysis................................................................................................................... 6
Legal Analysis................................................................................................................................ 6
Environmental Analysis.................................................................................................................. 6
Micro Environment Analysis............................................................................................................... 7
Competitor Analysis........................................................................................................................ 7
Competitive market Summary........................................................................................................ 8
Target market............................................................................................................................... 10
Moodboard................................................................................................................................... 10
Overview of Target Market........................................................................................................... 10
Positioning.................................................................................................................................... 11
Perceptual map............................................................................................................................ 11
SWOT Analysis............................................................................................................................ 12
Recommendations............................................................................................................................... 14
Overview of Recommendations Summarised from Analysis............................................................14
Recommendation 1 -Label each Heading with Key Idea..............................................................14
Recommendation 2 -Label each Heading with Key idea..............................................................14
Recommendation 3 - Label each Heading with Key Idea.............................................................14
Conclusions......................................................................................................................................... 15
Reference List...................................................................................................................................... 16
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Introduction and Company Background
I N T R O D U C T I O N
Carlsberg is the most familiar brewing company. It was established in the year 1847
by J.C Jacobson. It is one of the leading brewing industries of the entire globe. The large
portfolio of the company exhibit the richness of their brands (Hatch & Schultz, 2017).
Context - The utter desire for progress lead the company towards the position they are
situated recently. The Carlsberg group is acknowledged as global brewer with various local
brands. They produce more than forty brands as mentioned in their portfolio.
Link to Company, Brand / Product– Therefore the company seeks to analyse their market
position considering the condition of Australian market place.
Purpose/ Aim – Hence, the paper aims to conduct a situational analysis on Carlsberg
group.
Argument – This paper seeks to analyse the market position of the company and its
competitive strategies.
Outline –The analysis is achieved in several key sections. Firstly, the situational analysis will
be mentioned with the components of market analysis. The market analysis will be made by
dividing it into two parts, microenvironment and macro environment respectively. Finally, the
paper will provide some recommendations before concluding.
C O M P A N Y B A C K G R O U N D
Carlsberg is one of the leading brands acknowledged globally. They assure providing
the taste of world’s first quality of beer. A group of scientists with their excellence made this
happen for their customers (Gammelgaard & Hobdari, 2013).
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Situation Analysis
M A R K E T A N A L Y S I S
Denmark is the parent company for Carlsberg and Denmark has the largest market
share in comparison to the entire world. According to the domestic beer market, Carlsberg is
the holder of 54% share (Hatch, Schultz & Skov, 2015). For Carlsberg, generally the Eastern
European market is the main business region. Study also states that the Asian countries
also possess very high market share of the company.
M A C R O E N V I R O N M E N T A N A L Y S I S
P O L I T I C A L A N A L Y S I S
 As a beer company, Carlsberg victimises the excessive tax by the government.
 The company needs to abide by both the federal and state level regulations by the
government (Vashishth & Tripathi, 2016).
 Mainly the federal level regulation affects the growth of Carlsberg.
E C O N O M I C A N A L Y S I S
 Beer Company is becoming saturated.
 Companies like Carlsberg have a huge competency.
 However, the company is branching into the international market to gain huge market
reach (Kjartansson & Sigurthorsson, 2016).
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S O C I O C U L T U R A L A N A L Y S I S
 Carlsberg use the social media platforms to advertise their brand.
 It often poised in a fashion environment.
 It often victimise opposition of sales due to the odd public opinion. The society is becoming
health conscious hence it is often victimising opposition of sales.
T E C H N O L O G I C A L A N A L Y S I S
 Carlsberg is using the technologies to define the distribution channels.
 It also infuses technology to reduce the production cost.
 Inclusion of technology also done for international marketing of their products.
L E G A L A N A L Y S I S
 As a brewing company, Carlsberg also face some legal issues.
 Legal issues are also observed in the maintenance of the facilities and technical
innovations.
E N V I R O N M E N T A L A N A L Y S I S
 Carlsberg is often termed as having water related issues for the production of brewing
beverages.
 Along with this, the packaging leads to waste production and various other issues.
M I C R O E N V I R O N M E N T A N A L Y S I S
C O M P E T I T O R A N A L Y S I S
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Competitor Points of similarity Points of difference
 Brewery company
 Multinational
premium
business selling
alcohol drinks
 Food and Beverages
 Manufactures wines and
spirits also.
 Brewery
company
 Alcohol
percentage same
 Private company
 Does not manufacture
consumer goods
 Brewery company
 Manufacturing
and industrial
company
 Private company.
 Headquarter is located
at Brooklyn U.S.A
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C O M P E T I T I V E M A R K E T S U M M A R Y
Target
Market
More female consumers than
male consumers
Both the male and female
consumers are belongs to the
target market.
Young adults
are the target
markets of the
company.
Product
Scotch Whisky Beer Beer
Price
Depends on the products and
generally reasonable price.
Depends on the products and
generally reasonable price.
Comparatively
high in price
Promotional
Use both online and offline
promotional methods
Use both online and offline
promotional methods
Conventional
approach for
marketing and
promoting.
Distribution
Channels comprised of 21
markets. Products are
delivered to the customer
through distribution and sales.
The distribution channels of Bells
brewery comprised of 48 states.
It has a joint
venture with
Carlsberg group
and London
Fields Brewery.
Strengths
One of its strengths is the
huge geographical reach.
High demand in Brewing industry. The leading
recruitment field
for the brands of
consumer.
Weaknesse
s
Poor delivery in wine
production.
Facing prohibition for brewery
production.
High price
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T A R G E T M A R K E T
M O O D B O A R D
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O V E R V I E W O F T A R G E T M A R K E T
Demographic
Gender: Male and Female
Age: Young adults to older people
Income: Medium to high
Occupation: Service, business and students
Social Class: Comprising every spheres of the society
Education: Medium to highly educated people
Life Stage: Includes all the stages of life
Family Size: Does not affect the target market
Race: Does not affect the target market
Religion: Does not affect the target market
Geographic
Urban/Suburban: Urban
City Size: Medium to large
State Size: Large
Market Density: Highly dense market
Climate: Comparatively colder
Psychographic
Beliefs: Modern beliefs
Motives: To lead a comfortable life
Personality: Varies from person to person
Values: Varies
Lifestyle: Modern lifestyle
Interests: In various aspects related to the comfort zone
Behavioural
Volume of Usage: High
Benefit Expectations: High
Brand Loyalty: High
Price Sensitivity: Medium
Occasion: Depends on the person
End Use: Depends on the consumer
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P O S I T I O N I N G
Positioning Attributes 1
Young adults or
students
 Through social media marketing
Service persons
 Sponsoring concerts or conferences
Women
 Through social media marketing
P E R C E P T U A L M A P
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S W O T A N A L Y S I S
Strengths
 High portfolio – The product portfolio of Carlsberg is rich and it has
more than five hundred local brands.
 Loyalty – Consumers possess high loyalty for the products and
company (Roberts, 2014).
 Finance – The annual revenue of Carlsberg is 62.6 DKK billion.
Weaknesses
 Market penetration – The Company needs to increase the total number
of share in the market (Hatch, Schultz & Skov, 2015).
 Finance – In spite of high revenue the company is facing difficulty to
manage the financial condition throughout the year.
Opportunities
 Emerging markets – There are various scope for the company to invest
in the emerging market.
 Beer with low carb – With the increasing consciousness about health
the company can focus on producing low carb beer.
Threats
 Competition – The market is becoming highly competitive for the brewing
industry (Hansen & Nygren, 2016).
 Law and regulation – Government is providing strict law and regulation for the
brewing industry.
Recommendations
O V E R V I E W O F R E C O M M E N D A T I O N S S U M M A R I S E D F R O M
A N A L Y S I S
R E C O M M E N D A T I O N 1 – P R O D U C T I O N O F H E A L T H Y B E V E R A G E S
 The consumer world is getting health conscious day by day. Hence, the company can focus
on producing health drink or low carb beer to stay in position.
R E C O M M E N D A T I O N 2 – R E A S O N A B L E P R I C E
 According to the perception map, the company provides high quality product with high price.
Hence, the company should decrease the price to expand the market reach.
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