Saku Case Solution

KAPIL SHARMA
DEEPAK SHARMA
MALKHAN SINGH
SUBHASH CHAND
JATINDER VIRK
G RAJA
Product Portfolio on BCG Martix
BCG Matrix - Saku Brewery Product Portfolio

Stars Question Marks

Energy Drink
High
Ciders & Long Drink Imported Bears
Market Growth

Cash Cows Dogs

Domestic Bears Tume
Low
Soft Drinks Hele
Imported Mineral Water Domestic Mineral Water

High Low

Market Share
Product Life Cycle Estimates
Long Soft
Drinks Drinks
Ciders Bears
Water
Domestic
Energy
Drink

Imported
Bears
Product To be Added in Portfolio
 Build More Saku Rock Hotels ( Free Advertising , as Budget was not in Saku Account)

 Add New Product in to the portfolio “Energy Drink” to complete the portfolio 2004
Onwards and It could be a good market to enter at this time to capture market
share
Product To be Removed from Portfolio
 Domestic Mineral Water can be dropped from the Portfolio
 it is spending almost 66000 Euros in advertisement and giving a loss of 58000 Euro in net
 with overall market for Domestic mineral water is declining @ rate of 12% / year
 Least margin product with overall margin of 7~8 % .
this clearly is a “Dog” category product which must be removed from market.

 Saku Bear Tume and Hele can be discontinued , despite having a large marketing
budget of 2 % and 1 % respectively these product are in – ve growth YOY . This
budget can be utilized somewhere else or can be retained for other purpose.
Product To be Kept in Portfolio
 All Domestic and Imported Saku Bears ( Excluding Tume & Hele) Explanation for retaining
the Imported bear is attached in next slides as well as calculation in Excel Sheet.
 Imported Mineral Waters
 Long Drink and Ciders
 All Imported Soft drinks to complete the portfolio .

Estonia Drink product Market Projections

200.0
182.8
177.0
180.0 169.0 0.8 1.1
162.2 0.7 6.4 8.1
156.4 5.1 5.7 6.8
160.0 0.5 5.6 11.8 11.8
4.0 0.4 4.5 4.7 9.1
4.0 7.0
5.4
Volume in Million Ltr.s

140.0 27.6 28.9

25.0 26.3
23.8
120.0
27.8 30.0 32.4 35.0 37.8
100.0

80.0

60.0
91.0 90.5 89.9 89.3 88.6
40.0

20.0

0.0
YR 2002 YR 2003 YR 2004 YR 2005 YR 2006

Beer local Bottle Water Soft Drink Long Drinks Cider Beer Imported Energy Drink Total
Imported Bear Trend For Next 3 Years
@ growth of Organization Imported Bear Volume to Capture 42 %
market Shree in 3 Years (Excel Calculation As Attached )

Saku Imported Bear Financials Extrapolation

4000 In Three Years this Product is Going
3559
3500
to be A cash Generator Even at
Current Adv Expenditure , Which
3000
can be later on Removed slowly ,
2500
2057
No Need to Up Prices as it is in
2000 Competition with Hinekens @ 30Kr
1500 1189
1000 817 805 805 805 FY 2003
472
500 273 FY 2004
12 FY 2005
0

-500 -333
-532
-1000
Revenue (000s Euros) GM (000s Euros) Advertising (000s Euros) Contbn. (000s Euros)
Thanks