6th semester project_group no.5

PIVARA SKOPJE AD6th Semester project:

Possibilities of lounchig products in North Mitrovica

Students: Stojanovic Jovana, Aldijana Bektesevic, Danica Trboljevac7/11/2014

MENTOR : Blagica Rizoska

Pivara Skopje AD

Table of content:

1. Executive Summary...............................................................................................32. Introduction............................................................................................................33. Problem Statement................................................................................................44. Methodology..........................................................................................................55. Delimitations..........................................................................................................66. Background of the company..................................................................................6

Analysis7. Marketing Mix.........................................................................................................78. SWOT analysis......................................................................................................99. PEEST analysis...................................................................................................1010.Survey analysis....................................................................................................1111.Game theory........................................................................................................16

Discussion12.Segmentation, Targeting and Positioning............................................................1613.Brand positioning.................................................................................................2314.Being first strategy...............................................................................................2515.Market development............................................................................................2616.Conclusion...........................................................................................................3017.Bibliography.........................................................................................................3118.Appendix .............................................................................................................31

26th semester project, International Business College Mitrovica

Pivara Skopje AD

Executive Summary

This report provides an analysis and evaluation of the current situation and the possibility for expansion of the Company Skopje Ad company in the North Kosovo market. The analysis includes evaluation on business organization, branding, competition, relation with business partners; Part of the analysis in this paper are also results from market research about the company and their preferences regarding the respective products!

The research draws attention to the fact that the Company Pivara Skopje is one of the ten best companies in Macedonia with an annual production of over million hectoliters beer and alcohol free beverage. This company is leader on the market for almost a century. They are recognizable by high quality products and the best service for their customers. Pivara Skopje AD is considered as the best company on domestic market. But, there is a question, why they do not sell their products in north of Kosovo ( Mitrovica)?

All the research and analysis conducted revealed is there a possibility to expand the market in Kosovo territory. It has been investigated are consumer of beer interested to buy these kinds of products. What influenced on them?

Details and further explanations in the analysis and recommendations are presented in the remainder of this document.


Pivara Skopje AD

Introduction

Throughout the project paper, the obtained analyses of beverages industry will be presented. The specific attention in this project paper is on beer company “Pivara Skopje AD” Pivara Skopje AD, despite the fact that they are very popular and famous brand, still is researching for the innovative solution for completing consumer satisfaction and expansion of the market.

In order to identify the solutions for the company’s problem statements, conducted external analysis will be presented through this paper. The main aim is to provide the opportunity for the company to expand the business area and a business market in North of Mitrovica using valuable researches from this project paper. In the further text will be closely introduced the company and their historical background and the analysis and recommendations for expansion.

Problem Statement

The main idea for this paper work is to check the potential of Skopsko beer in North Mitrovica. The sub questions are this:

1. What are the potentials of launching Skopsko beer in North Kosovo (or North Mitrovica) ?

2. What can help them in gaining trust of costumers in North? ( is it bran, promotion, price)

3. What are steps in launching products into new market?


Pivara Skopje AD

Methodology

Methodology is the second part of this assignment and this part of the report contains information about the methods that have been used in order to get all information that were needed for this report.

Having in mind that the most productive way for getting of needed information is by conducting a surveys, through the project paper are presented the data obtained in this way.

With the intention to have insight of external business processes of the beverages company “Pivara Skopje AD”, primary and secondary research data were used to provide applicable information needed for the following investigation.

In primary research data, are used information that are obtained directly from the first hand sources by means of surveys, observation and conversation. All information that derived from a new and original research study are obtained by conducting of surveys among citizens of North Mitrovica. In this way, the external analysis was conducted. The sample of the survey will be attached.

In order to make a realistic and true insight of the business for the internal analyses of the company were used the principle of observation.

For primary source of information were used quantitative model, interview. Therefore by interview in-depth the main information were obtained. It this way the most important and applicable data were found and used for the following project paper.

Having in mind that the project should corresponds to gained theory from the lecturing , in this paper were used all needed literature and information acquired from the books and articles, a varies internet sites suitable for this area and other documents in regards of the topic. This secondary data sources were used to amendment the methods of investigation.

The most important theory that was used in the paper is from Marketing area. In order to investigate external functioning of the company, many marketing analyses were conducted. For instance: SWOT Analyses, 4p analyses, PEEST analysis and so on. Besides the company, correspondingly, behavior of the costumer ( through surveys) were analyzed. With intention to position current success and level of business and to expant and get new market , as well to improve the business with possible innovation were analyzed all factors that influence the process of business of this company ( business partners, associates, retail partners, supply chain partners, employees, consumers and cetera).


Pivara Skopje AD

The results from these questionnaires will bring to light information on the market conditions, the preferences of the potential customers and future possible business partners. These sources and especially the contact with the companies will serve as valuable reference on our recommendations.

DelimitationsConsidering that the company and the country chosen for this project paper: this report is going to be focused Pivara Skopje AD, its market opportunities and challenges in the North Mitrovica market.

Due to the focus of this report topic and other obstacles such as time and restricted information on certain issues this report is not going to cover information on internal analyses only external.

Parts of this paper are based on information collected from primary research; the individual questionnaire was done with a limited age range and location of participants considering our limited capacities on time and resources; due to these limitations, our primary research with businesses was also limited in a small number of key major retailers in North of Mitrovica and not in whole North Kosovo..

Background of the company

In subsequent exposition we will go through Macedonian well known brewery “Pivara Skopje AD” and analyze it from different aspects.

Pivara Skopje AD exists almost 90 years. The fundamental bases of this company are experience, highly motivated and loyal teams and their successful visions of common and successful future. This company is one of ten best companies in Macedonia and it produces more than million hectoliters beer and alcohol free beverages per year.

This company is very loyal to its employees first of all and then to its customers, consumers as well as its business partners. This can be defined as the key of company’s success.

Pivara Skopje AD produces high quality products well known, not only in the country but also in world markets.

They produce 4 beer brands:

• Skopsko

• Gorsko


Pivara Skopje AD

• Amstel

• Heiniken

Pivara Skopje is one of the ten best companies in Macedonia with an annual production of over million hectoliters beer and alcohol free beverage. This company is leader on the market for almost a century. They are recognizable by high quality products and the best service for their customers. Pivara Skopje AD is considered as the best company on domestic market.

Consumers are in the center of their attention, they always try to recognize customer’s needs. The reason why they are still leaders on the market is that the have the highest level of quality, they keep-up with the challenges of modern times and address demands of new generations of consumers but at the same time they still justifying trust by consumers who consume their products for decades.

On the other side customers are aware of the quality of products that Pivara Skopje offers to them for years and they know what to expect from this company. It is very hard to find one single citizen of Macedonia who does not know what Skopsko is and you cannot find one adult citizen who has not tasted it. ‘’ Taste of Macedonia’’ is recognizable slogan through whole Macedonia. They produce products which have very high quality and which are famous not just in Macedonia than in the world, like for example: Skopsko, Gorsko,Skopsko Radler but besides their products company’s portfolio includes two of the world’s most famous beer brands Heineken, Amstel. Skopsko is their most famous product, this company managed to get so deep in the minds of their consumers that in Macedonia Skopsko became synonym for beer, that when people in Macedonia say beer they actually mean Skopsko.

Besides all of this they are always innovative. They were first in Macedonian market who introduced natural refreshment drink that is combination of beer and lemon juice. This beer represents a unique mix of the most famous Macedonian beer Skopsko and lemon juice. This company operates ony with other companies, they do not have their retail store, this tipe of operation is called Business to Business (B2B). This term means that one company sell its products to another company instead of selling goods directly to the customers which is called Business to Customers (B2C).

Analysis

Marketing Mix

One of the most famous tactical or operational parts of marketing plan is marketing mix. Marketing mix is most commonly called 4P’s, and those 4P’s represent: product, price, place (distribution) and promotion.

Quote:

Marketing mix is the set of controllable tactical marketing tools: product, price, place, promotion that the firm blends to produce response in wants in the target market. (Koller and Armstrong 2010)


Pivara Skopje AD

Product is what one company offers on the market and that product needs to be able to meet a specific, existing market demand.

‘’ Taste of Macedonia’’ is recognizable slogan through whole Macedonia. They produce products which have very high quality and which are famous not just in Macedonia than in the world, like for example: Skopsko, Gorsko,Skopsko Radler but besides their products company’s portfolio includes two of the world’s most famous beer brands Heineken, Amstel. Skopsko is their most famous product, this company managed to get so deep in the minds of their consumers that in Macedonia Skopsko became synonym for beer, that when people in Macedonia say beer they actually mean Skopsko.

Price has very important role. Very often price is factor that determines will potential customers buy the product or not.

Pivara Skopje is one of the ten best companies in Macedonia with an annual production of over million hectoliters beer and alcohol free beverage. This company is leader on the market for almost a century. They are recognizable by high quality products and the best service for their customers. Pivara Skopje AD is considered as the best company on domestic market. Since, they are offering high quality product, the prices for it are very affordable.

Place this term refers to way that the customers can obtain a product. Provision of a product can occur via any number of distribution channels such an in a retail store, through the mail and all other options through which we can make our product available to customers and will have an effect on our sales volume.

This company and its product are very well known on the domestic market and beyond. They are selling in many countries in surrounding ( Albania, Serbia)

This is just confirmation that this beverage is well known brand and it is present on the world’s market. In order to expand the production, at any case they have to expand new market, because there are also very near countries who do not sell this kind of products ( Kosovo,North of Kosovo)

Promotion is also very important and it is the most important part of marketing mix. We use promotion to build awareness for existing of our products. We can do this through advertising, public relations and publicity, sales promotions or any other way that can give information’s to customers about our product or service.

The quality of its products is witnessed by many international awards received: “From 1978, SKOPSKO was awarded golden medals by “Monde Selection”, one of the most prestigious organizations for testing the quality of beverages and food products from around the globe. In 2010, at the 49th World Quality Selection for beverages and food products, SKOPSKO in glass bottles of 0.5 l and 0.33 l was awarded the High Quality Trophy and thereby confirmed that “The Taste of Macedonia" is also among the best in the world. Competing against a record-breaking 2000 products from 83 countries world-wide, SKOPSKO was the only beer from the broader region that was honored with this recognition for quality.”


Pivara Skopje AD

It is very important to promote the products, because it is the best possible way to build awareness of the products quality. Promotion is especially important, it company want to expand the market.

SWOT analyses

In order to do the SWOT analyses of up mentioned company it is needed to explain what SWOT analyzes actually means?

“A SWOT analysis is a structured approach to evaluating the strategic position of a business by identifying its strength, weakness, opportunities and threats. It provides a simple method of synthesizing the results of the marketing audit. Internal strengths and weakness are summarized as they relate to external opportunities and threats.”

Strength as it is the first phase of SWOT analyzes. It

Important to mention that strength is the internal factor of the company.Weakness is also internal factor, and for one company is very important to be aware for the weaknesses in order to improve it and be better businessman.

Pivara Skopsko is one of the ten best companies in Macedonia with an annual production of over million hectoliters beer and alcohol free beverage. This company is leader on the market for almost a century. They are recognizable by high quality products and the best service for their customers. Pivara Skopje AD is considered as the best company on domestic market.

Consumers are in the center of their attention, they always try to recognize customer’s needs. The reason why they are still leaders on the market is that the have the highest level of quality, they keep-up with the challenges of modern times and address demands of new generations of consumers but at the same time they still justifying trust by consumers who consume their products for decades.

On the other side customers are aware of the quality of products that Pivara Skopje offers to them for years and they know what to expect from this company. It is very hard to find one single citizen of Macedonia who does not know what Skopsko is and you cannot find one adult citizen who has not tasted it. ‘’ Taste of Macedonia’’ is recognizable slogan through whole Macedonia. They produce products which have very high quality and which are famous not just in Macedonia than in the world, like for example: Skopsko, Gorsko,Skopsko Radler but besides their products company’s portfolio includes two of the world’s most famous beer brands Heineken, Amstel. Skopsko is their most famous product, this company


Pivara Skopje AD

managed to get so deep in the minds of their consumers that in Macedonia Skopsko became synonym for beer, that when people in Macedonia say beer they actually mean Skopsko.

But they do not sale in European market. Actually, they have to use opportunity to expand the market by selling in the neibourghood country, as Kosovo is.

They were first in Macedonian market who introduced natural refreshment drink that is combination of beer and lemon juice. This beer represents a unique mix of the most famous Macedonian beer Skopsko and lemon juice. But nowadays a lot of different producers of beer have the same taste, so Pivara Skopsko AD has to be more innovative to be competitive.

PEEST analysis

PEST analysis is an acronym (political, economic, environmental, social and technological) method of analysis of the business environment and is the base for strategic planning.


Pivara Skopje AD

PEST analysis environment provides an overview of the external situation, which may have an impact on the industry in general or the company within the monitored network. It is used to create a future strategy for the business and strategic planning, product development, research, marketing planning,. It includes political, economic, social and technological factors.

Political factors are related primarily to the regulations that are in power at a given moment in the domestic market as well on the rules of trade, and on the legislation and monetary policy. If the state would provide some tax incentives, prices could be lower. It is very important to have stable political influence on one company. If there is no political stability, there is no possibility for development of one company, especially, if this company is striving to get new market. Skopsko Company needs support of the country in order to get needed legislation

Economic factors are related to the situation in which the domestic economy is, to the stability of the national currency, which can affect the price of beer and beer prices automatically affect supply and demand. If there is no suitable situation for spending the money of the customers there is no profit for the company.

Social factors are related to lifestyle of the users of the product, then to the image and visibility of the brand, its advertisement but also on the availability of products and information of buyers. Skopsko is well-know company, and they do not have now so much promotion and advertising.

Technological factors relate to the technological development of competition that affects our market-research and investment in business automation.

Survey analysis

The research is done in North Mitrovica . 50 questionnaires were distributed in the center of

the city, close to coffee bars, to the citizens and by using simple sampling method

respondents were chosen randomly. Research period was done during the period of 2 days.

Results are divided in section, in the first section you can see basic information and profile of

respondents, like age and gender. The second section referees to consumers behavior, the

third part shows how much are citizens of North Mitrovica familiar with Skopsko beer, and

this section shows the willingness of consumers to buy this beer.

Parallel with this survey, another survey is done with bars and retail stores. Fifteen

questionnaires were divided in Mitrovica, 9 to bars and 6 to retail stores. This is done in

order to see how high the waste of beer in this market is, and to see what the most favorite

brand according to them are.

1.1. Basic information.

Respondents were asked about their age and gender, but our target group were persons

under 4O years. So 70% of respondents are age between 1 and 30 and 30% are between 30


Pivara Skopje AD

and 40. The gender of respondents was also important, and our target was to have more

male respondents then female. So we had 66% male and 34% of female respondents.

66%

34%

Gender a. Male b. Female

1.2. Consumers behavior.

In order to know if there is potential for Skopsko beer on this market respondents were

asked about their behavior, how often they drink beer, according to witch criteria do they

chose beer, and they were also asked about their favorite brand of beer that is currently

available on their market.

Most of the respondents drink beer very often, 34% every day and 34% every week, this

shows that there is good potential for beer companies in general on this market. And there

is 69% of potential consumers of Skopsko beer. Very little present of respondents doesn’t

drink beer at all 14%, the rest may drink beer monthly. This information is very convenient

for a beer company if they want do launch their products on this market.


70%

30%

Agea. 18-30 b.30-40 c.40 and more

14%

18%

34%

34%

How often do you drink beer?

a. Neverb. Monthlyc. Every weekd. Every day

86%

14%

According to witch criteria do you chose beer?

a. Qualityb. Price

Pivara Skopje AD

Respondents were asked according to witch

criteria do they chose beer, and the majority

said according to quality, only 14% said

according to price. Having in mind that

Skopsko stand for a very good quality beer

with a bit higher price, this higher price will

not be a problem on this market.

In North Mitrovica Market there is a high

number of beer brands that are available to costumers. There are domestic beers like Jelen

and Lav, regional Niksicko, and European

Tuborg and Heineken.

When respondants were asked witch beer

brand do they preffer their taste was very

diffrent but the majority of them like the

Montnegrian brend Niksicko , and on the last

place of respondants preeference is domestic

beer Lav.

When asking respondants what package of beer do they prefere, big majority 70% of

respondants said that they prefere draft beer, 24% prefere beer in bottle and only 6% beer

in can.

With this section of questions we wanted to see if Skopsko has what consumers on this

market are searching.

1.3. About Skopsko beer.

In this part we wanted to see how familiar

are consumers with company Skopsko AD,

we wanted to see would they consume this

beer if it was available on the market.

On the question if they have ever heard

about Skopsko beer, all the respondents

said yes, this shows that their brand name

is very strong even on this market were the beer if not available.


14%

18%

28%

22%

18%

Witch beer do you prefere?

a. Lavb. Jelenc. Niksicko d. Heineken e. Tuborg

100%

Have you ever heearde about Skopsko beer?

a. Yesb. No

24%

6%70%

What package do you prefere?

a. Beer in botleb. Beer in canc. Draft beer

Pivara Skopje AD

Respondents were also asked if they

tasted this beer, and majority 72% said

that they did taste it. this we asked to

check the level of satisfaction among the

ones that tasted this beer, so we asked

them to rate Skopsko beer on the five –

point Lekert rating scale where one represents, very bad, 2 is bad, 3 is good, 4 very good,

and 5 excellent beer taste. None of the respondents rates this beer as very bad or bad, on

the picture you can see that consumers were quite satisfied with the taste of this beer.

At the end we asked them if they would consume Skopsko beer if it was available on their

market, and the majority 64% said they would, while other 36% will stay loyal to their

brands.

1.4. Survey with bars and retail stores.


72%

28%

If yes , have you taste it?

a. Yesb. No

1 2 3 4 502468

10121416

0 0

13 14

9

If yes, rate on the escale how much you liked it.

Series1Series2

64%

36%

Would you consume Skopsko if it was aveliable on your

market?a. Yesb. No

Pivara Skopje AD

As a part of this research , another survey is

done in North Mitrovica, this one is done

with bars and retail stores.

First we asked them what brands of beer do

they have in their bar/store, and on the

chart below you can see what brands are

available on this market.

These businesses were also asked how

much is the average waste of beer per

month, and the average out of these 15

bars and stores is 750l per month.

On the question witch beer is wasted the

most, they said that is Niksicko beer in bars

and in stores it is Lav. Also they were

asked what beer is wasted more bottle or

draft, in the bars it is draft beer, Niksicko

draft, and in stors it is bottle beer and can

beer.

Game theory


a. Jelen b. Lav c. Niksicko d. haineken

e. Tuborg f. Beks05

101520

What beer do you have in your bar/store?

Series1

a. Niksicko b. Lav c. Tuborg 02468

10

What brand of the beer is consumed the most?

Series1

a. Bottle b. Draft 0

2

4

6

8

10

Which beer is wasted more?

Series1

Pivara Skopje AD

Managers use different tools in decision making process, one of the tools can be game theory. This is a game of two players that make a decision independently from the other. Each player has its own strategy, and the result of their decision making depends a lot on the strategy of the other playere. In our example we have company “Skoplje” that wants to expand the market in North Kosovo, and we have costumers from this market. Effectively, a game occurs between company and costumers. Company desires to enter into new market in order to increase profit. As the small research in this market is done, we see that citizens in North are familiar with this brand, and that some of them already tryed it and they like it. On the other hand costumers want the best value for their money, so they are searching for a good quality beer. The game theory will be showen in the figure.

Consumer

Strategy Buy Don’t buy

Company” Skoplje”

Expand 1,1 -10, 0

Don’t expand 0, -10 0, 0

As shown in the figure, the company has two strategies to expand the market or not to expand and the consumer has two strategies to buy or not to buy the product. After the small market research, where the opinion of costumers was asked, company Skoplje assumes that costumers will buy its products. And costumers are searching for the best quality for their money, and since this company can meet their needs, the dominant strategy for costumers will be to buy this product and for company to expand on this market.Because of the customers’ dominant strategy the company will choose to expand on this market because as we see in the figure company will gain more (1>0).

Discussion

Segmentation, targeting and positioning

As it has already been mentioned Pivara Skopje AD is well known company both on domestic

and International market. Anyway, according to the results of the research this company is

confronted by aggressive competition in all fields of its production.

In order to describe the segmentation, targeting and positioning that Pivara Skopje has

done, we need to give a brief explanation what segmentation, targeting and positioning

means.

The main goal of a marketing strategy of every company is to recognize a target market and

build up a marketing mix that will demand new potential customers. Nevertheless, the aim is


Pivara Skopje AD

not just to build up a particular strategy but to focus and strive towards providing certain

value to existing key market segments.

Segmenting markets, targeting specific customers and at the end running towards effective

positioning will provide a good place for the company in the world market and shade the

competitors. This tool is very supportive when starting marketing planning process.

SEGMENTATION is a way of determination which kind of customers are out there. Then

we target the ones we are best on serving by offering a product – TARGETING and the last

one is a stage of implementing of by categorizing services or products for that particular

segment– POSITIONING.

Segmentation of Pivara Skopje AD

Segmentation can also be defined as dividing whole group of customers into smaller group

consisted of individuals that have something in common (such as needs, wants, demands…).

These customers might have comparable needs or common characteristics presenting

similar response to market proceedings.

There are two different types of segmentation:

Market segmentation

Customers segmentation

The process of market segmentation and target marketing:

The disaggregated market (The characteristics of individual customers are

understood)

The segmented market (Customers are grouped into segments on the basis of having

similar characteristics)

The target market (Segment 3 is judged to be most attractive and a marketing mix

strategy is designed for that target market)

Consumer segmentation:

Behavioral (Benefits sought, Purchase occasion, Purchase behavior, Usage,

Perceptions and Benefits)

Psychographic (Lifestyle, Personality)


Pivara Skopje AD

Profile (Demographic, Socio-economic, Geographic)1

Following the Customers segmentation process we can say that Skopsko is a brand targeting

certain population. Beer is a product that is not intended for whole population.

There are several variables that can be used in a process of segmentation:

• Demographic variables appeals to: Customers Age, Personal Monthly Income,

Gender, Marital and social status, Profession…

• Psychographic segmentation refers to individuals personality, lifestyles, motives…

and so on.

• Behavioral variables refer to: Loyalty to one fashion brand, Purchase History, Different stores preferences…

• Environmental: Payment Methods, Currency, and Country of Residence…

When we speak about Pivara Skopje AD, this is the company with a very long tradition and this company is a leader on the market place for a very long period of time. During all this years of their existence on the market place customers and consumers were always in the center of their attention and this company was always trying to make a step further to recognize the desires and needs of their consumers. They were also always trying to keep-up with the challenges of modern times and to address demands of new generations of consumers but at the same time to justify trust by the consumers who consume their products for decades, and this is probably the answer for the question How it is possible that they are still so successful?

When it comes to segmentation this company is interested in a group of people who likes to drink beer and has similar needs when it is about quality and taste. Through the years of existence of this company they are trying to be in line with constant changes in desires of their customers but in the same time to remain consistent to the traditional taste of the beer that they produce. Like for example when they launched new product Skopsko Radler, this beer represents a unique mix of the most famous Macedonian beer Skopsko and lemon juice. They were first in Macedonian market who introduced natural refreshment drink that is combination of beer and lemon juice.

Targeting of Pivara Skopje AD

Second step is targeting. While targeting there are a few things that companies has to bear

in mind. When we chose segments it is important to define is there any other company/firm

that offers product or service that might meet needs of potential customers? If that

company exists, the question is how rapidly can it grow?

Targeting - The choice of which market segment(s) to serve with a tailored marketing mix.

Market attractiveness:

1Market segmentation and positioning; Chapter 008. (Presentation)


Pivara Skopje AD

Segment Size

Segment growth rate

Segment Profitability

Price sensitivity

Bargaining power of customers

Bargaining power of suppliers

Barriers to market entry

Barriers to market exit

There are certain factors that can be used in order to assess the company’s capability to

compete and they are:

Managerial capabilities and commitment

Technological edge

Cost advantages

Exploitable marketing assets

There are four Target marketing strategies:

• Undifferentiated marketing - Marketing Mix is applicable for whole Market. In this

case everybody can be potential customers so they are not selected or targeted

• Differentiated marketing - Marketing Mix is streamed toward different

groups/segments

• Focused marketing- In this case one marketing Mix is applicable for different

segments

• Customized marketing - Different Marketing Mix for different Customers2

How good service or a product we are offering to customers is and if it is good enough to

beat the competition?

Having in mind, the specific type of the products of this company this company targets a

specific type of the people. Those are people who have 18 + because for people that are

under 18 it is forbidden by law to consume alcohol baverages. Their target group are mainly

men but also women because today a lot of women like to drink beer, people who like that

specific taste of the beer, who like to party, who enjoy, people who when they come home

from work like to relax with a bottle of cold beer, students and so on. It is not important are

they rich or poor , are thy young (18+) or old it is only important that they enjoy in this

drink. The only thing that

2 Market segmentation and positioning; Chapter 008. (Presentation)


Pivara Skopje AD

Market positioning of Pivara Skopje AD

If one company wants to have unique position on the market place, it needs to make

a very careful choice of target market and to have clear differential advantage in the minds

of its customers.

Many factors can influence on differential advantage like for example: strong brand

names and image, service, design, guarantees, packaging and delivery. But if we take into

consideration that today we have a lot of companies on the market place and for successful

positioning we need to make combination of these factors.

Positioning is a process where companies’ product or service fits into the

marketplace. Positioning is a powerful tool that allows manufacturers to create an image or

the idea of where they are? Effective positioning enables companies to be first in line in the

minds of potential customers.

The most important questions on which we need to give answer before we offer some

product on the marketplace are WHERE and HOW?

Positioning is the choice of:

Target market-where we want to compete

Differentiental advantage- how we wish to compete

The main goal of positioning is to create and maintain very good position in the market for a

company or its product. After we decide where we want to compete, we need to provide to

our customers differential advantage. And this means that we need to offer our customers

something new or something better than the competition has. To create differential

advantage we use marketing mix. Differentiation of product means that we can add some

features which competition do not have and which can give some benefits to customers.

Price differentiation, we can reduce prices and to have lower prices than competition.

Through distribution differentiation we can make buying more convenient for customers. For

promotion differentiation we can improve advertising.


Pivara Skopje AD

Successful positioning means that we are always in mind of our customers and that our

product always associates them on something good.

Company Pivara Skopje produces brands of high quality and this company is

considered for one of ten best companies on the domestic and world market. Literarily there

is no citizen in Macedonia or better say in this whole region who have not heraed for

Skopsko beer. Even, when people in Macedonia say Skopsko thay actually mean beer. As the

results of the survey show that all respondents have heard for Skopsko even those who do

not drink beer and who have never tried it.

To achieve success like this is not easy at all, but positioning should be founded on the 4 C’s

and these are clarity, consistency, credibility and competitiveness.

Clarity- our positioning idea must be clear in both terms target market and

differential advantage. Eg. If we have high quality, prices will be high

Consistency- it is important that we send a message to our customers about our

product or service, through advertising or in some other way, but we need to repeat

that message constantly, we cannot change our message it needs to stay the same.

Credibility- is very important aspect; the differential advantage that we choose

must be credible in minds of the target consumer.

Competitiveness- we need to offer something better than our competition,

something that customers will appreciate and what competitors do not have.

Consumers are in the center of their attention, they always try to recognize customer’s

needs. The reason why they are still leaders on the market is that they have the highest

level of quality, they keep-up with the challenges of modern times and address demands of

new generations of consumers but at the same time they still justifying trust by consumers

who consume their products for decades.

On the other side customers are aware of the quality of products that Pivara Skopje offers to

them for years and they know what to expect from this company.

. ‘’ Taste of Macedonia’’ is recognizable slogan through whole Macedonia. They produce

products which have very high quality and which are famous not just in Macedonia than in

the world, like for example: Skopsko, Gorsko,Skopsko Radler but besides their products

company’s portfolio includes two of the world’s most famous beer brands Heineken, Amstel.

Skopsko is their most famous product, this company managed to get so deep in the minds of

their consumers that in Macedonia Skopsko became synonym for beer, that when people in


Pivara Skopje AD

Macedonia say beer they actually mean Skopsko. Skopsko is a synonym for quality,

consistency, tradition, trust and uniqueness.

So, if we take all of these facts into consideration it is obvious that this Company is very

good positioned in Macedonia, but also if we take a look in the results of the survey that is

done in North Mitrovica we can see that this company has potential to have the very good or

the same position on this market place. On this market place exists around 69% of the

potential consumers. To 86% of respondents said that they choose beer according to the

quality and that price is not so important. Also what is really important 100% of respondents

said that they heard for Skopsko. 72% of the respondents said that they tasted this beer and

according to their answers they were very satisfied with a taste and 64% would like to have

a chance to buy this beer in retail stores and bars in North Mitrovica.

Brand positioning

The straight of one brand’s position in the market place is built on six elements:


Pivara Skopje AD

-Brand domain- corresponds to the question where the brand competes. Which group of

people is the target market of one company?

- Brand heritage- Is about brand background. It tells us how company achieved success.

This can be very useful platform to build on.

-Brand values- represent the core values and characteristics of the brand.

- Brand assets- It shows us what is typical for that particular brand. What makes this brand

recognizable if we compare it with some other brand? Like for example symbols, features,

images and so on.

-Brand personality- Customers make a choice which brand to use according to their

personality. They always use a brand which is related to their own traits.

-Brand reflection- It shows us how the brand relates to self-identity. What this brand

means to the person who buys it. How they reflect their self identity through this brand.


Brand domain

Brandpositioning

Brand values

Brandreflection

Brand personality

Brand assets

Brand heritage

Pivara Skopje AD

For almost nine decades, Pivara Skopje AD’s story is being created with immense efforts,

knowledge, experience and vision of the team of highly motivated, loyal and capable

individuals, exceptionally well-trained, respected and rewarded. On the account of its

outstanding performance, for years now Pivara Skopje AD is ranked among the ten best

companies in the country with an annual production of over million hectolitres beer

and alcohol free beverages.

During the all of this years of their existence on the market place this company has been

awarded for quality several times. From 1978, Skopsko was awarded golden medals by

“Monde Selection”, one of the most prestigious organizations for testing the quality of

beverages and food products from around the globe. In 2010, at the 49th World Quality

Selection for beverages and food products, Skopsko in glass bottles of 0.5 l and 0.33 l was

awarded the High Quality Trophy and thereby confirmed that “The Taste of Macedonia" is

also among the best in the world.

For Pivara Skopje customers are always on the first place and they always make a step

further to recognize their desires and needs. Characterized by dedication, responsibility,

quality and integrity in its operation, Pivara Skopje AD team justifies consumers trust and

loyalty on daily basis. Their main goal is to offer the best service and the best quality of

their products to their customers. They always take care to adjust frequent changes in

needs of their customers. Through all this years they are trying to create added value for

their customers.

When we speak about their brands, Pivara Skopje AD takes pride in producing brands of

high quality and is considered the best on the domestic and world markets. This company

implemented the high international quality standards in production and many other

segments of company’s operation. This makes them a true leader.

Their most famous brand Skopsko beer represents a combination of high-quality ingredients,

loads of love and almost 90 years tradition. “The taste of Macedonia” is the well known

slogan through whole Macedonija. It is one of the strongest Macedonian brands, and

definitely the strongest beer brand in the country. Skopsko is also synonym is a synonym for

quality, consistency, tradition, trust and uniqueness. Skopsko, with its golden-yellow colour

and stable foam, has grown into a genuine synonym for beer. In Macedonija when people

say beer they actually mean Skopsko.


Pivara Skopje AD

It is a result of painstaking work put in by generations of employees at Pivara Skopje AD and

their persistence in brand-building which is epitomized in the attribute “The Taste of

Macedonia”.

According to some researches that this company made in Macedonia, literally there is no

citizen in Macedonia who do not know what Skopsko is and there is no on single adult

citizen who have not tasted it.

For Pivara Skopje AD, value does not pertain solely to its business environment, but also to

the society as a whole. Pivara Skopje AD is a company that builds strong and positive

relations with the community and invests time and resources in supporting a broad

spectrum of societal values.

On the other side, according to the research that is made for the purpose of this report it is

obvious that this brand is also very famous on the market place in North Mitrovica. As we

could see 100% of respondents knows what Skopsko is, also 72% of respondents said that

they tasted Skopsko and they were pretty much satisfied with the taste.

Having in mind all of these facts the brand of this company has very good position on both

domestic and international market.

Being first strategy

Being first on the market presents the opportunity to build a clear awareness for the product

in the minds of consumers. Being first strategy is opportunity for distributor loyalty and

gaining of costumers.

. If some company wants to be first on the market it always needs to struggle with

competition, and always needs to be better than them. As we could see, the results of the

survey show that on marketplace in Nort Mitrovica they have competitors and they are

companies that produce following beers: Lav, Jelen, Beks, Tuborg and Niksicko . But even in

that case according to the survey customers from Nort Mitrovica would like to have Skopsko

beer on their market place because most of them have tried it in foreign countries and they

liked the taste.

If a company wants to be successful for the long period it requires a marketing effort and

having strength in order to survive competitor attacks. Those attacks refer to the newest

products with a good quality or acceptable price for the target group. Also, using new

technology is competitive advantage. Companies therefore speed up their new product

development processes, even if it means being over budget.


Pivara Skopje AD

Being first also means, taking care about costumers needs. Despite the fact, that some

product is first on the market if demand for it does not exist, it is useless. It always needs to

be adjusted to the costumers.

As it was already mentioned before for this company customers are always on the first

place and they always make a step further to recognize their desires and needs.

Characterized by dedication, responsibility, quality and integrity in its operation, Pivara

Skopje AD team justifies consumers trust and loyalty on daily basis. Their main goal is to

offer the best service and the best quality of their products to their customers. They always

take care to adjust frequent changes in needs of their customers. Through all this years they

are trying to create added value for their customers.

Market development

So, if we take all of these information into consideration it can be said that this company has

high potential for launching products in North Mitrovica. In the further it will be explained

which strategy they should use in order to achieve this.

First, it will be explained which strategy they should use if they want to achieve this goal,

but before that it will be presented other strategies for growth. One of the very useful ways

of looking at growth opportunities is the Ansoff Martrix. Ansoff Matrix is one of the most

commonly used strategies in marketing.

Ansoff’s matrix can be used as a guide for marketing products, no matter if they are old and

already exist on the market or it is some new product. Ansoff’s matrix can give us very

positive focus for different options for growth. According to this matrix we can see is it better

for our company to find new customers for existing product, to offer more products to the

existing customers or to stay on the market with existing products and try to achieve larger

share of the market.

Each section of Ansoff’s matrix shows us a strategy which we can use to achieve a goal that

we want. In table below you can see four main strategies of Ansoff’s matrix.


Pivara Skopje AD

Market penetration - is strategy which companies can use if they want to expend its

market share in an existing market, with an existing product. This is strategy of the low risk

because on the market already exist companies and products are already in the market.

What we can do is that we can win competitors with lower prices or better quality, we can by

competitors or we can discourage competitive entry.

Market expansion – . Increasing sales in an existing market can be one of the ways for this

company to increase sales. Because they already established business and they have

customers. They know exactly who buys their products. Of course the goal of every

company is to have more customers or to get their existing customers to buy more. So we

can either convert non users or to increase usage rate.


Pivara Skopje AD

Product development – This strategy includes that that company needs to develop new

product on existing market. We can develop our product in several ways like: product line

extensions, product replacement or innovation. This strategy may be appropriate if the

companies’ strengths customers and not to the specific product itself. This strategy carries

more risks then penetration and market development but on the other side company

already exists on the market and had its customers who are devoted to this company and

company can use its trust.

Market development – with this strategy company strive growth by targeting its existing

products to a new market. This strategy is more risky than penetration strategy because

company is expending into a new market, but on the other side it is good strategy and all

depends of the competitive advantage that company has. When we say new market we

mean that we can export in new geographical region using different product dimensions,

distributing the products through new channels and so on. The main goal of this strategy is

to attract new customers with a few differences strategies into consuming existing products.

Diversification – is one of the most risky growth strategies because it requires both

product and market development but on the other side if this high risk is compensated by

the chance of a high rate of return.

As it was already said the main purpose of this report is researching opportunities that

Compani Skoplje AD has for launching its products in North Mitrovica. So, after explaining

each strategy of Ansofft Matrix it is obvious that strategy that they need to use in order to

achieve their goal is market development. This strategy means that Company will present

their existing products on a new market. This strategy is quite risky and all depends on

competitive advantage that company has.

As it was already mentioned Company Pivara Skpje exists for almost nine decades and that

is ranked among the ten best companies in the Macedonia, with an annual production over

a million hectoliters of beer and alcohol free beverages. For this company partners and

consumers are the most important and addressing of consumers needs is the challenge of

this company and that is the reason why they are, during all of this years always one step

further to recognize their desires. Their main goal is to offer the best service and the best

quality of their products to their customers. They always take care to adjust frequent


Pivara Skopje AD

changes in needs of their customers. Through all this years they are trying to create added

value for their customers.

According to the survey, that is made in North Mitrovica. 34% of respondents drink beer

every day and 34% drink beer every week which means that on this market place exists

around 69% of the potential consumers. This indicates that Company Skopje AD would have

very good potential on this market. When we speak about quality 86% of respondents said

that they choose beer according to the quality and that price is not so important. All

respondents are familiar with the products that this Company offers, especially with

Skopsko, 100% of respondents said that they heard for Skopsko. 72% of the respondents

said that they tasted this beer and according to their answers they were very satisfied with a

taste and 64% would like to have a chance to buy this beer in retail stores and bars in North

Mitrovica.

So, if we take into considerations all these results we can see that Company Skoplje AD with

their product Skopsko beer has a high potential on this market place. Consumers are

familiar with their product and with a quality that they offer. Large number of consumers

have tried Skpsko and they would like to have a chance to buy this product in North

Mitrovica.

ConclusionThroughout this project paper we analysed the potentials of Pivara skoplje in North Mitrovica. In this paper we tried to answer on following questions:


Pivara Skopje AD

1. What are the potentials of launching Skopsko beer in North Kosovo (or North Mitrovica) ?

2. What can help them in gaining trust of costumers in North? ( is it bran, promotion, price)

3. What are steps in launching products into new market?

The first question is answered throw the survey conducted in North Mitrovica. And according to the survey Pivara Skoplje AD has very good potentials on this market. It showed that there is demand for this beer on this market, and one company should use this opportunity to gain a bigger market and to get more costumers.

The second question is answered using the relevant theory on thee example of Pivara Skoplje. The importance of market positioning is described and the importance of the brand name. As we said their brand name is familiar here, so they pass one phase, product introduction.

Now it is important for Pivara Skoplje to find channels for distribution on this market and launch the products here.

Of course there are always threats, like political situation, competition and economics. But on the other had there is a big opportunity to gain new costumers and expand the market, so the company should risk in order to gain something.

Bibliography

1. Market segmentation and positioning; Chapter 008. (Presentation)2. http://www.pivaraskopje.com.mk/AboutUs.aspx?

q=wRpnykoeu1Su4dfkjY36b2jnzO3RCL5YTb0L5woB9TI=3. Jobber D. (2010 ) Principles and Practice of Marketing; Mc Graw- Hill Education (UK)


http://www.pivaraskopje.com.mk/AboutUs.aspx?q=wRpnykoeu1Su4dfkjY36b2jnzO3RCL5YTb0L5woB9TI

http://www.pivaraskopje.com.mk/AboutUs.aspx?q=wRpnykoeu1Su4dfkjY36b2jnzO3RCL5YTb0L5woB9TI

Pivara Skopje AD

4. Managing products: product growth strategies; Chapter 010. (Presentation)

http://www.quickmba.com/strategy/matrix/ansoff/

AppendixQuestionnaire 1- consumers

Basic information:

1. Age

a. 18-3C


http://www.quickmba.com/strategy/matrix/ansoff/

Pivara Skopje AD

b. 30-40

c. 40+

2. Gender

a. Male

b. Female

Consumers behavior

3. How often do you drink beer?

a. Never

b. Monthly

c. Once in a week

d. Every day

4. Do you chose beer according to quality or price?

a. Quality

b. Price

5. Which beer do you prefer?

a. Jelen

b. Lav

c. Tuborg

d. Niksicko

e. Heaineken

6. What package do you prefer?

a. In bottles

b. Beer in can

c. Draft beer

About skopsko

7. Have you ever heard about Skopsko beer?

a. Yes


Pivara Skopje AD

b. No

8. If yes, have you ever taste it?

a. Yes

b. No

9. If yes, rate on the scale how much you liked it?

1 2 3 4 5

10. Would you consume Skopsko beer if it was available on your market?

a. Yes

b. No

Questionnaire 2- cafe bars, and retail stores

1. What beers do you have in your bar/store? (they will list the beers)

2. What is the average waste of beer on a monthly base?

3. Whitch brand of beer is consumed the most?

4. Witch is wasted more , draft or bottle?

5. What package is used mostly?

a. Beer in can

b. Bottle

c. 2l beer


6th semester project_group no.5

Documents

company skopje ad company

company pivara skopje

swot analysis

peest analysis

survey analysis

market research

market development

north kosovo market