Marketing Report: Victoria Bitter's Natural Flavored Beer in Australia

This report provides a comprehensive marketing analysis of Victoria Bitter (VB), an Australian beer company, focusing on the launch of its new natural flavored beer. The report begins with an executive summary and introduction, followed by a background of the company and an in-depth assessment of the marketing environment, including political, economic, sociocultural, technological, legal, and environmental forces. A SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is presented, evaluating VB's internal capabilities and external market conditions. The report identifies VB's loyal customer base and brand recognition as strengths, while acknowledging weaknesses such as outdated branding. Opportunities include targeting younger audiences and adapting to changing consumer preferences. The report concludes with recommendations for VB, including targeting specific market segments and offering a range of natural flavors, along with suggestions for advertising strategies. The report also emphasizes the importance of adapting to the competitive landscape within the Australian beer industry and the need for VB to reinvent itself to meet evolving consumer demands and environmental concerns. The analysis draws on various sources, including journals and articles, to support its findings and recommendations.

Running head: MARKETING
MARKETING
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Executive Summary
The beer industry of Australia has always been under a constant strain all through the recent
years because of the lower customer demand within the beer industry. This report has
analysed how the company, Victoria Bitter. This report has evaluated the external and
internal environment of this company and has identified its new offering on the basis of the
result of the environmental scanning. The new product is- the natural flavoured beer. It has
also made several recommendations for the introduction of this new product in the Australian
market, considering the SWOT analysis and the external market environment of Australia.

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Table of Contents
1. Introduction.........................................................................................................................3
2. Discussion..............................................................................................................................3
2.1. Background of the Company..........................................................................................3
2.2. Marketing environment analysis.....................................................................................3
2.3. SWOT Analysis..............................................................................................................5
2.4. Conclusion and Recommendations.............................................................................5
References:.................................................................................................................................8

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1. Introduction
Any new product that survives the process of screening of the new NPD (new Product
Development) requires a much detailed and sophisticated analysis of the business (Hilletofth,
Reitsman and Eriksson, 2018). This report is going to elaborate on presenting a SWOT
analysis of Victoria Beers, one of the favourite brewing companies in Australia. It is going to
launch a natural flavoured beer within the Australian region. Based on the SWOT analysis of
this company, this report shall continue on making recommendations for the future actions. It
is also toe mention that this report would be based on information from wide range of data
sources including journals, articles and newspapers. The first paragraph of the report shall
present a brief background of the company. The next point shall further assess the marketing
environment for the company in Australian region. The third point would discuss about the
strengths, weaknesses that the company possess and several other threats and opportunities
present for it to expand and flourish the business. Lastly, several recommendations shall be
made on the basis of the SWOT analysis.
2. Discussion
2.1. Background of the Company
Victoria Bitters, is one of the several old companies in Australia that was established
in the year 1903. The company is based in Abbotsford, Victoria. Since its establishment, the
company is producing many of the most successful beverages of Australia, comprising of the
highest selling beers known as the Victoria Bitter (Lanis, McClure and Zirnsak, 2017). It is
also to mention that this company is a subsidiary of the Foster’s Group of Melbourne. With
the same, it is also to note that the company has distributed its international brands like
Corona, Aguila, Beck’s, Hoegaarden, Artois and Leffe Radieuse. Also, it is under the
jurisdiction SAB-Millers, of whom is at present dominating in the Australian beer market,
comprising of about 37.8% of the total sales. SAB Miller is one among the very affluent
companies that ear a total revenue of more than 2.6 billion dollars as per the report of 2014. It
has undertaken a good range of environmentally friendly services in the field of beer
production and has remained the 2nd biggest brewer in the world till date.
2.2. Marketing environment analysis
According to Garcez, Sbragia and Kruglianskas (2014), macro environment analysis
provides a great opportunity for the product positioning of Victoria Bitter by means of
demands of the consumers, to the environmental care and societal standards. However, the
one and only limiting factor found would that be of the controversies about the advertising,
which Victoria Bitter could possibly be guilty of.
2.2.1. Political forces
a) The lockout laws in the Sydney as well as the proposed lockouts in the QLD- Less
consumption of alcohols and beer (Holmes et al., 2018).
b) The presence of Sugar tax- the beer companies that are already pushing for the sugar free
beers and preservatives (for example: lion).
c) The different advertising regulations present within the country is one of the significant
political forces. This entails to whom the advertisement is aimed towards.
2.2.2. Economic forces

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a) There is a notable decrease in the demand for beer and alcohol and on the other hand, there
is increase in the foreign labels as well (Mercurio, 2017). This attract most of the customers
towards those products.
b) There are several companies in Australia like Coles and Woolworths that have decreased
their budget from product promotion because they started facing the need for cutting down
the expenses (McDonald and Wilsom, 2016). Many of these reductions have taken place in
the budgets for the mass media advertising like the magazine or television advertising.
However, the overall budgets for the promotion of products are shrinking.
c) There is an expected increase in the coarse grains in the year 2019 to 2020 and this has
combined with the low demands for beers, which is expected to be detrimental to the overall
sales of the beer in the Australian market.
2.2.3. Sociocultural forces
a) Most of the consumers today have become highly health conscious (Pohjolainen et al.,
2016). Hence, many of the Australian consumers demand for knowing the ingredients used in
the making of the beers and alcohols. With the same, there are many who do not want sugar
or any type of preservatives in their drinks. Many of the Australians have also stated that they
agree with the Sugar tax. Hence, it can be said that Australians are become more health
conscious than ever before.
b) Today, people are more concerned about environmental care and they push the companies
for saving water and recycle the waste products. However, Victoria Bitter has already started
enforcing this agenda.
2.2.4. Technological force
a) There is a constant technological advances produced in the line of production of products.
For instance, the Coke AMITIL has been moved into the beer industry as of the advanced
equipment and optimisation.
b) Furthermore, there is a mass discussion conducted for changing the lid of the beer can of
the natural flavoured beer in order to make it more appealing to the consumers. The lids are
very much alike to the cans that are found in the supermarkets. It has been proposed that this
design would influence the taste as well as the aroma of the new product. This is indeed a
great marketing scheme.
2.2.5. Legal and regulatory forces
a) The beer industry of Australia faces a huge amount of government regulation. One of the
significant cause for the large amount of regulation is the fact that in many of the areas, the
brewers could be regulated by the federal government, the localities as well as the state
governments. There are a total of seven different areas of regulation in relation to the beer
industry. However, the area in relation to the breweries as well as the production of beer is
the one that influence the beer brewing industry.
b) The Bureau of Alcohol, Tobacco and Firearms is the government agency that is highly
responsible for regulating the beer industry in Australia. It has issues regulation in relation to
the brewing of beer in the region that “include restrictions on the location, use, construction,
and equipment of breweries, as well as laws pertaining to the qualification of breweries and
their issuance of bonds and consents of surety” (Jones, Wyatt and Daube, 2016).

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c) It is also compulsory for the beer brewers to take approval for the formula as well as the
process for the domestic flavoured beers like the lambics. However, it is to mention that the
government regulation that the beer industry face helps it in preventing the barriers to entry
for the potential companies that consider entry into the beer industry. It is an advantage for
these firms at present. This is because it is promoting an environment that is highly conducive
to the sustainable profits.
2.2.6. Environmental forces
a) The beer industry of Australia is highly competitive in nature, with the various different
private labels that are highly influencing the environment (Sammartino, 2018). In Australia,
the consumption of beers have been fluctuated because of the changing consumer preferences
for beers and with the same, there is a comparatively slow growth of population among the
important demographics as well. The brewers in Australia need to seek growth and
development where the other global middle class is rapidly emerging. Hence, the players
within the beer industry need to look for various different ways for reinventing themselves
for attracting great proportion of young generation by means of responding to the different
tastes as well as providing them a wide range of products that are environment friendly.
2.2.7. Competitive environment
Two of the potential competitors of Victoria Bitter are the XXXX Gold and the 5
Seeds. However, XXXX Gold is regarded as the highest mainstream competitor of Victoria
Bitter. It is to note that the target market of XXXX Gold is similar to that of Victoria- the
working class and male customers (Brodmerkel and Carah, 2016). Notwithstanding this fact,
the very recently launched products of the company, i.e., the Summer Bright Lager and
XXXX Island are very much appealing to a greater number of audiences. Its product range
include- Lager, Bitter, Summer Bright Lager, Origins Crip Lager, Pale Ale, Bright Lager with
Natural Lime. On the other hand, 5 Seeds offers a great range of products to allow its
customers varieties to choose from. It is one of the leading brand in the cider industry.
Furthermore, it serves a large target market with a growing industry similar to the Craft beer.
However, it poses a very genuine threat because of its predominant stance in the Australian
market. The company’s product range include- Crisp Apple Cider, Premium Cut Dry Apple
Cider, Night Orchard Apple Cider, Cloudy Apple Cider, Per Cider etc.
2.3. SWOT Analysis
Strengths Weaknesses
1. Very loyal customer market
2. One of the renowned and oldest
Australian beer manufacturing company
3. It could be classified as classic and
vintage
4. There are many potential extensions of
products because of the low range.
1. Due to various sociocultural and health
related factor, the company is becoming
forgotten
2. The logo of the company is very
uncreative and the design has not
changed from so long.
3. The advertisement of the company is
only limited to sports.
4. There is not many product variations
Opportunities Threats
1. There is a great potential for the brand
positioning
2. The company has the potential to
achieve mass attention by means of
reinventing itself as a modern beer that
1. High competition within the industry and
hence, there is a great possibility that the
other potential companies could take over
the Australian market.

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conforms to all the societal demands and
wants.
2.4. Conclusion and Recommendations
Hence, it is to state that Victoria Bitter needs to effective compete with its competitors
present within the beer industry that is rapidly declining because of the change in customer
demands and preferences. It need to develop its new product in such a way that it could easily
thrive in the current scenario and can attract more number of customers towards the
company. In order to do so, below are certain recommendations made:
2.4.1. Target Market
In order to sell its new product- the natural flavoured beer, the company should target
not only the middle class and earning males, but also the younger audiences as well. Its
advertisement should be aimed towards the younger audience by making use of humour, just
like what the 5 seeds shows through its “delivery girl ads”. It should be consolidated by
means of its increasing demand.
2.4.2. New Product Offering
The new product if the natural flavoured beer. There would be natural flavour added
in the beer. The recommended usage for the beer would be labelled on the bottle for the
young and old generation, both. There would be not added preservatives in it as well. There
would be several range flavours and they include:
a) Natural Acai flavouring
b) Natural Almond flavouring
c) Natural Apricot flavouring
d) Natural Apple flavouring
e) Natural Banana flavouring
f) Natural Blackberry flavouring
g) Natural Boysenberry flavouring
h) Natural Blood orange flavouring
i) Natural Black Currant flavouring
j) Natural Blueberry flavouring.
The company has decided to introduce only ten flavours at first. Later it would add
butterscotch, Ginger, chocolate, coconut and cherry flavouring as well. There would be very
less amount of alcohol in this product.
2.4.3. Marketing strategy (Product, Price, Place and Promotion)
Product: Unlike, its other competitors, Victoria Bitter takes pleasure in ensuring classic
experience to all its customers. Its exquisite range of natural flavoured beer would include a
total of ten different flavourings including the Natural Acai flavouring, Natural Almond
flavouring. Natural Apricot flavouring, Natural Apple flavouring, Natural Banana flavouring,
Natural Blackberry flavouring, Natural Boysenberry flavouring, Natural Blood orange
flavouring, Natural Black Currant flavouring and Natural Blueberry flavouring.
Price: A simple bottle of 0.75ltr should be available at a minimum price of 20 dollars for the
Australian market. This simple pricing would help the brans in acquiring a prestigious
reputation in the Australian beer market.

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Place: The quality and taste of its products have helped the company to become one of the
leading brands of the alcoholic spirit. It is to note that Victoria Bitter has always been very
particular about the campaigning and manufacturing units. It is now present in all the
developing countries. However, it should provide its products in the hands of its customers
via its physical stores and online sites like amazon and bigbasket. It should go online because
today’s consumers wants to get everything in their hand sitting at their home. Everyone has
mobile phones that help them move all across the globe to gain information. Hence, selling
the products online would be best for this new launch.
Promotion: It should promote its products through using different social media platforms like
Facebook, Twitter and Instagram. It can also conduct some advertisement campaigns as well
in different regions of the country, such as in malls. It should also make use to traditional
advertising method like newspaper advertising etc.

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Brodmerkel, S. and Carah, N., 2016. Interventions: Reimagining Advertising. In Brand
Machines, Sensory Media and Calculative Culture (pp. 157-187). Palgrave Macmillan,
London.
Garcez, M.P., Sbragia, R. and Kruglianskas, I., 2014. Factors for selecting partners in
innovation projects–qualitative evidences from non-equity bilateral alliances in the brazilian
petrochemical leader. RAI-Revista de Administração e Inovação, 11(2), pp.241-272.
Hilletofth, P., Reitsma, E. and Eriksson, D., 2018. Coordination of New Product
Development and Supply Chain Management. Innovation and Supply Chain Management:
Relationship, Collaboration and Strategies, pp.33-50.
Holmes, R.F., Lung, T., Fulde, G.W. and Fraser, C.L., 2018. Fewer orbital fractures treated at
St Vincent’s Hospital after lockout laws introduced in Sydney. The Medical Journal of
Australia, 208(4), p.174.
Jones, S.C., Wyatt, A. and Daube, M., 2016. Smokescreens and beer goggles: How alcohol
industry CSM protects the industry. Social Marketing Quarterly, 22(4), pp.264-279.
Lanis, R., McClure, R. and Zirnsak, M., 2017. Tax aggressiveness of alcohol and bottling
companies in Australia. Canberra: Foundation for Alcohol Research and Education.
McDonald, M. and Wilson, H., 2016. Marketing Plans: How to prepare them, how to profit
from them. John Wiley & Sons.
Mercurio, M., 2017. Safe Harbor on the Rocks: TTB Label Approval for Beer, Wine, and
Spirits, and the Uncertain Status of the Safe Harbor Defense. Notre Dame J. Int'l Comp. L., 7,
p.107.
Pohjolainen, P., Tapio, P., Vinnari, M., Jokinen, P. and Räsänen, P., 2016. Consumer
consciousness on meat and the environment—Exploring differences. Appetite, 101, pp.37-45.

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Sammartino, A., 2018. Craft Brewing in Australia: 1979–2015. In Economic Perspectives on
Craft Beer (pp. 397-423). Palgrave Macmillan, Cham.