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 Analysis
Strengths
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

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