Fosters Group- A New Product Portfolio

Group Members: Shubham Singh Neha mishra Gaurav Sawlani Chetan Joshi Naina Rishi

Introduction

William & Ralph Foster: 1887 Headquarters: Melbourne, Australia. Largest selling Australian beer. Also deliver: Wine, Spirits & Ciders. Brewed in 9 countries at over 20 plants. Worlds 3rd most widely distributed brand. Available in more than 150 countries.

Fosters Multi beverage business model

Fosters huge brand portfolio enabled it to have significant presence in every product category and market segment. Premium categories Value for money category Wine categories Brand Equity and Distribution network. Specific Managers catering to its specific requirements. Also offers hotel chain, restaurants, pubs and small bottle shop owners a multi-beverage solution. Classified its various brands depending on their brand power.

Fosters In India
Fosters is the first foreign brewery to establish operations in India located at Fosters India Ltd M-99, MIDC, Waluj, Aurangabad. Invested a $ 20 million into an 18 million brewery located in Aurangabad. Production commenced in June 1998. Fosters has the second largest share in the Mumbai City.

The Product
Its a light beer category. It is by definition extremely light in colour & body & mild in flavour. Developed using innovative process of ultra high gravity brewing. In 1972 all brand importers started importing Fosters to the U.S. In 1976 the CUB sent one million cans to New York. New touch to the Fosters in 1993.

 Goal of Fosters stated by Pradeep Gidwani, Managing Director, Fosters India Ltd. We want to establish Fosters as an international premium lager beer. 70% of the Fosters sales come from pint size market. In 2000 notched up sales of Rs. 25 crore with around 1.58 million cases sold.

TARGET AUDIENCE
First time drinkers Younger crowd College /Office going youths Maharashtra is the highest consumer of beer In world wide spirits to beer ratio is 1:7. In India it is 7:1

Litres Per Person Beer in comparison with other Liquids

60 50 40 30 20 10 0 2000 2002 2004 Beer Bottled Water CSDs Coffee Distilled Spirits Fruit Beverages Milk Tea Wine

USP OF FOSTERS BEER

The Indian pallet and food is more associated with beer. This beer combines nicely with Indian food. Has 38 calories per 100 ml which is very less compared to other like red wine 75 cal./100 ml, Champagne 70 cal/100 ml.

IMAGE OF THE BRAND

Beer as a product has been confined to form 5 categories of dominant appeals.
Friendship Sex Sport Tradition Relaxation UK 55% 22% 22% India 50% 1030% 10%

Fosters product gels well with the friendship image Ideal for image as sports person. It sponsors to formula I grant prix from 1986.

Growth strategy
Diversified into wines in 1997. Rejuvenated its beer brand. In 2001 launched HOW TO SPEAK AUSTRALIAN advertising campaign. Increased the length of TV campaign and launched a national radio campaign. Restructured the operation of Carlton and United Breweries(CUB). Acquired Australian brand Mildara Blass wines which was quite success in export market. Also forged a partnership with another major US wine manufacturer to increase its presence in international wine market. In 2000 Bought a Californian winery, Beringer for $1.5 billion. In 2004 introduced their product in low priced $US 8-9 per bottle to have presence in non premium wines also. Merger with Southcorp in 2005 benefited both the companies and created the worlds largest producer of wine generating $113 million in synergy benefits. Fosters net profit increased by 10.5% in 2006, Revenue growth of 7% and earning growth of almost 18%.

GEOGRAPHICAL NET SALES REVENUE FROM BRANDS

Turnover and Profit

Promotions
Ad: STOP USING YOUR TEETH buy a Fosters lager 12-pack & get a free bottle opener. They also sponsors: AFL(Australian Football League) NRL(National Rugby League) Horse Racing Australian cricket Financial support to non-profit organizations.

A conversation with Fosters wine

We Who Brand Generation Regional Landmark Accessible Innovative Interesting Aspirational Fantastic Extending Geographic Quiet Full New Association arebuild range styles achievers Champions memories Heroes value Australia of tastes & Next between signatures enjoyment varieties wine & place

Sub Brands

Competitors

others 21%

kingfisher 33%

kings 11%

haywards 18%

royal challenge 17%

FOSTER'S GROUP LTD SWOT ANALYSIS

Strengths:
Diversified brand and product portfolio

Large Portfolio of Agricultural Assets Strong Brand Equity

Weakness
Geographical concentration
The company is not well spread in terms of geographical location. This would make it vulnerable to risk that is specific to a particular region. However its produce is sold via retail medium to in America, Europe, the middle East, Africa and Africa.

Opportunit y Lines New product

Innovations on new product has improved its product portfolio and allowed it to have an edge over other competitors in the industry. In 2008 the Company launched new products; Cascade Green, Carbon offset beer, re- launched Carton Premium Dry in the lower carbohydrate category. Other innovations of the company include Zero sugar

Threat
Regulations restricting commercial advertising of alcoholic Products And intense competition. Foster's and its Subsidiary are subject to legal restrictions on advertising and marketing of alcoholic product, which could be a serious setback to the value of existing product and reduce its revenue.

Thank You