6th Semester Project - Group No.5

PIVARA SKOPJE AD
6th Semester project:

Possibilities of lounchig products in North
Mitrovica
Students: Stojanovic Jovana, Aldijana Bektesevic, Danica
Trboljevac
MENTOR : Blagica Rizoska
Pivara Skopje AD
Table of content:
1.
2.
3.
4.
5.
6.
Executive Summary...............................................................................................3
Introduction............................................................................................................3
Problem Statement................................................................................................4
Methodology..........................................................................................................5
Delimitations..........................................................................................................6
Background of the company..................................................................................6
Analysis
7. Marketing Mix.........................................................................................................7
8. SWOT analysis......................................................................................................9
9. PEEST analysis...................................................................................................10
10. Survey analysis....................................................................................................11
11. Game theory........................................................................................................16
Discussion
12. Segmentation, Targeting and Positioning............................................................16
13. Brand positioning.................................................................................................23
14. Being first strategy...............................................................................................25
15. Market development............................................................................................26
16. Conclusion...........................................................................................................30
17. Bibliography.........................................................................................................31
18. Appendix .............................................................................................................31
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6th 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?
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Pivara Skopje AD
Details and further explanations in the analysis and recommendations are presented in the
remainder of this document.
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 companys 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:
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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?
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.
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Pivara Skopje AD
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).
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.
Delimitations
Considering 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..
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Pivara Skopje AD
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 companys 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
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 customers
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 companys portfolio includes two of the worlds 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.
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Pivara Skopje AD
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 4Ps, and those 4Ps 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)
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
companys portfolio includes two of the worlds 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
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.
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Pivara Skopje AD
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
worlds 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
informations 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.
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.
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Pivara Skopje AD
Pivara Skopsko is one of the ten best companies in Macedonia with an annual production of
domestic market.
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.
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 companys portfolio includes two of the worlds 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.
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.
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Pivara Skopje AD
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.
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
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Pivara Skopje AD
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 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.
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Pivara Skopje AD
Gender
a. Male
b. Female
34%
66%
Age
a. 18-30
b.30-40
c.40 and more
30%
70%
1.2.
Consumers behavior.
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Pivara Skopje AD
According to witch criteria do you chose beer?

14%
a. Quality
b. Price
86%
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.
How often do you drink beer?

a. Never
b. Monthly
34%
14%
18%
c. Every week
d. Every day
34%
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 doesnt 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.
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.
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Pivara Skopje AD
What package do you prefere?

a. Beer in botle
24%
70%
6%
b. Beer in can
c. Draft beer
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.
Witch beer do you prefere?

a. Lav
b. Jelen
18% 14%
22%
18%
c. Niksicko
d. Heineken
e. Tuborg
28%
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.
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Pivara Skopje AD
Have you ever heearde about Skopsko beer?

a. Yes
b. No
100%
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.
If yes , have you taste it?

a. Yes
28%
b. No
72%
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.
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Pivara Skopje AD
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.
Would you consume Skopsko if it was aveliable on your market?

a. Yes
b. No
36%
64%
If yes, rate on the escale how much you liked it.

15
13
10
14
9
5
0
1.4.
Survey with bars and retail stores.
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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.
Which beer is wasted more?

10
8
6
4
2
0
a. Bottle
b. Draft
What brand of the beer is consumed the most?

10
8
6
4
2
0
a. Niksicko
b. Lav
c. Tuborg
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.
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Pivara Skopje AD
What beer do you have in your bar/store?

16
14
12
10
8
6
4
2
0
a. Jelen
b. Lav
c. Niksicko
d. haineken
e. Tuborg
f. Beks
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.
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Pivara Skopje AD
Game theory
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
Company
Skoplje
Strategy
Buy
Dont buy
Expand
1,1
-10, 0
Dont 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.
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Pivara Skopje AD
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 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)
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Pivara Skopje AD
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)
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 keepup 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.
1Market segmentation and positioning; Chapter 008. (Presentation)

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Pivara Skopje AD
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:
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 companys 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
2 Market segmentation and positioning; Chapter 008. (Presentation)

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Pivara Skopje AD
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
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
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Pivara Skopje AD
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.
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 Cs
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.
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
25
Pivara Skopje AD
new generations of consumers but at the same time they still justifying trust by consumers
who consume their products for decades.
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
companys portfolio includes two of the worlds 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. 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.
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Pivara Skopje AD
Brand positioning
The straight of one brands position in the market place is built on six elements:
Brand
domain
Brand
values
Brand
heritage
Brand
positioning
Brand
assets
Brand
reflection
Brand
personality
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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.
For almost nine decades, Pivara Skopje ADs 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
28
Pivara Skopje AD
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 companys 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.
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
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Pivara Skopje AD
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.
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.
30
Pivara Skopje AD
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.
Ansoffs 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. Ansoffs 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 Ansoffs 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 Ansoffs matrix.
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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.
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.
32
Pivara Skopje AD
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
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
33
Pivara Skopje AD
have tried Skpsko and they would like to have a chance to buy this product in North
Mitrovica.
Conclusion
Throughout this project paper we analysed the potentials of Pivara skoplje in North
Mitrovica. In this paper we tried to answer on following questions:
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.
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Pivara Skopje AD
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)
4. Managing products: product growth strategies; Chapter 010. (Presentation)
http://www.quickmba.com/strategy/matrix/ansoff/
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Pivara Skopje AD
Appendix
Questionnaire 1- consumers
Basic information:
1. Age
a. 18-3C
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?
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Pivara Skopje AD
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
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
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)
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Pivara Skopje AD
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
38

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PIVARA SKOPJE AD

6th Semester project:

MENTOR : Blagica Rizoska

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

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

Background of the company

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

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

survey, another survey is done with bars and retail stores.

c.40 and more

According to witch criteria do you chose beer?

How often do you drink beer?

What package do you prefere?

In North Mitrovica Market there is a high

Witch beer do you prefere?

Have you ever heearde about Skopsko beer?

With this section of questions

About Skopsko beer.

If yes , have you taste it?

Would you consume Skopsko if it was aveliable on your market?

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

Survey with bars and retail stores.

Which beer is wasted more?

What brand of the beer is consumed the most?

What beer do you have in your bar/store?

Segmentation of Pivara Skopje AD

The process of market segmentation and target marketing:

The disaggregated market (The characteristics of individual customers are

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

Psychographic (Lifestyle, Personality)

Profile (Demographic, Socio-economic, Geographic)1

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

Psychographic segmentation refers to individuals personality, lifestyles, motives

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

Segment growth rate

Bargaining power of customers

Bargaining power of suppliers

Barriers to market entry

Barriers to market exit

Managerial capabilities and commitment

Exploitable marketing assets

There are four Target marketing strategies:

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

Differentiated marketing - Marketing Mix is streamed toward different

Customized marketing - Different Marketing Mix for different Customers2

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

Market positioning of Pivara Skopje AD

Target market-where we want to compete

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

must be credible in minds of the target consumer.

brand? Like for example symbols,

features, images and so on.

Questionnaire 2- cafe bars, and retail stores

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