Carlsberg Beer

Submitted By: Shivi Shrivastava-11020541124

T Pranay-11020541134

Introduction

• Danish company established in 1847• Main product is Carlsberg beer & later Tuborg• In 2010, Carlsberg ranked as 4th largest

brewery in the world• Carlsberg ranked as 8th best beer in the world.

Indian Beer Market

• Beer sales in India are forecast to grow at a compound annual growth rate of 17.2% to 2012.

• High increase in personal disposable income.• Number of brands is expected to increase in India

in the near future.• Biggest player is local brewery The UB group ‘s

KINGFISHER.

Carlsberg India

• Carlsberg entered India in 2006.• Entered India through joint venture with IFU

and Lion brewery Ceylon in name of South Asia breweries. Later in 2009 name it as Carlsberg India.

• Unique selling proposition is all malt beers.

Porter’s five forces analysis

Competitive Rivalry within an industry:• Presence of Foreign giants like SabMiller.• Strong Presence of Local brand United

Breweries.• Strong competition against distilled spirits as

they are more consumed than beer.• Too many local brands varying from state to

state.

Bargaining Power of suppliers:• Availability of raw materials at low cost• Problem is with the infrastructure like roads,

electricity.• Certain materials required to import to

maintain European standards involve then import tax

Threat of substitute products:• Local Brands available at more cheaper prices• Fake brands available in the name of

Carlsberg: Distorting the brand image

Bargaining Power of Buyers:• Presence of large number of options including

local and foreign brands• Mostly consumers are spirit takers• Price wars

Threat of new entrants• Ease on FDI policy may attract more foreign

giants.• Untapped potential in rural segment• Though high taxes levied make entrance

difficult

SWOT AnalysisStrengths

• Production and product quality.• They have superior production

processes and technology compared to domestic firms and should thus be able to produce with greater efficiency leading to lower costs.

• Carlsberg India to take advantage of economies of scale in production by an intense marketing effort to increase volumes.

• Involved in a substantial number of joint ventures, mergers and acquisitions in recent years.

• Their excellent capabilities within logistics.

Weakness

• They do not have an advantage with regard to economies of scale compared to United Breweries.

• The barley produced in India is not of the same standard as available abroad and therefore fails to meet Carlsberg’s strict quality standards. Therefore lots of expenses in

logistics.

Opportunities:

• Instead of importing barley, grow in India. The lower cost of labor helps a lot

• Setup a manufacturing unit in each state so as to save tax.

• More Greenfield investments.

Threats:

• Local brands providing beverages at lower prices.

• Import taxes• Variable taxes levied by

different state government• Strict government

regulations against drink

Recommendations

• Greenfield investment• Produce internally• More expenditure on marketing

Thank you….

• T