AUSTRALIA

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 FAMOUS BRANDS FOSTER

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Victoria Bitter
Carlton &United Beverages (Fosters Group)

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Victoria Bitter

Victoria Bitter is one of the many iconic beers manufactured in the Australian state of Victoria. VB (Victoria Bitter) currently maintains the highest market share of all beer sold in Australia

Victoria Bitter

Victoria Bitter VB is Australia's highest selling beer and has been for more than 20 years It sells twice as much as any other full strength beer and is the only Australian beer brand that is in the top 3 sellers in every state. VB is Australia's only billion dollar retail beer brand and sells the equivalent of one slab every second.

Victoria Bitter
Positioned itself as an unpretentious, working man's beer. It's advertising slogan has long been (and still is): "A hard-earned thirst needs a big, cold beer; and the best cold beer is Vic Victoria Bitter
-Run very successful VB advertising campaigns which target the heart of Australian culture. Ads for VB depict shearers, jackaroos, truck drivers and other working class.

Victoria Bitter
It is also of interest to note that VB is often a popular choice for Australian females who enjoya beer. Although no beer advertising in Australia directly targets the growing female beer market, VB appeals to women because of its not too bitter, easy to drink, lager style.

Victoria Bitter
As VB is known and positioned as the national beer for the regular aussie bloke, the best performing Australian beer regardless of segment, venue or occasion and with over 150 years heritage, the main objective would be to hold that position and reputation. In relation to VB as a brand, another objective would be to increase the value share of the brand by improving the behavioural impact of the consumer about the brand. Another issue is the creation of new sub-segments which impact the share of VB. To overcome this problem, VB must introduce line extensions to enter those sub-segments.

Victoria Bitter
 Australias younger consumers aged between 18 to 24
are less favourable to purchase a VB product as they are more inclined to experience imported beers or a competitors product. This could be due to VBs branding as the tradies beer which is more appealing for the older consumer aged 35 or older. Improvement for the brands image is necessary to attract the younger consumer.

Victoria Bitter
Identify the target market for VB The market is currently targeted at 35 to 54 year old male and females (70% males) who are typically tradies, blue collar workers and all working Australians. These consumers are usually brand loyal and are not concerned with their image status. They would generally be married with children, have mortgages, worry about their financial situations and job security, stay at home or pub on weekends and believe that hard work gets them ahead.

Victoria Bitter
Identify the target market for VB

35-55 MALE FEMALE

REGULAR USERS

WORKING CLASS

Victoria Bitter
 Improve product packaging to appeal to younger
consumers  Introducing new line extensions to fit more subsegments  Further sponsorship of sports that appeal to younger consumers

Victoria Bitter

SWOT ANALYSIS

Victoria Bitter
SWOT ANALYSIS.

Strengths  Iconic status Australian Beer  Holds a symbolic image of the hard working and

traditional aussie bloke that is unpretentious and good tasting  Highly recognisable packaging, bottle design and slogans  Double the size of nearest competitor with 28.6% market share  A large target market demographic allowing for a large number of consumers

Victoria Bitter
SWOT ANALYSIS.

Weaknesses  A limited product line  International distribution can be limited in some countries  Product packaging may be out-dated or unappealing to
some consumers  Recognised as a cheaper, mainstream beer and may not be consumed at all occasions by consumers  Unappealing to younger consumers

Victoria Bitter
SWOT ANALYSIS.

Opportunities  Further expansion into international markets  Further acquisition of venues, events or sponsorships to
increase awareness  Expanding product line to suit all sub-segments  Altering product packaging to attract more consumers

Victoria Bitter
SWOT ANALYSIS.

Threats  International competition  Discounting of premium beers  Healthier consumers drinking less beer  Fewer consumers with brand loyalty  Political restrictions limiting international distribution

Victoria Bitter

PEST ANALYSIS.

Victoria Bitter
PEST ANALYSIS.

Political Factors
 Legal Policies
Change in world wide supply and demand which will open for the firms crossing the national boarders.Government campaigning against drinking and drivingHard-hitting campaigns and stiffer penalties have helped to reduce the number of roads accidents, deaths, injuries and damage

   

Discounting of premium beers Healthier consumers drinking less beer Fewer consumers with brand loyalty Political restrictions limiting international distribution

Victoria Bitter
PEST ANALYSIS.

Economical Factors

 Reduction in beer prices do not have a differential tax

structure based on the alcohol content, strong beer

   

Discounting of premium beers Healthier consumers drinking less beer Fewer consumers with brand loyalty Political restrictions limiting international distribution

Victoria Bitter
PEST ANALYSIS.

Sociocultural Factors  Wider consumer choice  Drinking less Drinking better Healthier consumers drinking less
beer

 Responsible drinking  As the years pass, more competitors enter the market
with new imported or local products. The trend has changed from brand loyal consumers to those wanting to experience newer tastes and experiences, especially the younger market. Younger consumers are becoming less predictable and more brand loyal, always wanting to venture to newer grounds.

Victoria Bitter
PEST ANALYSIS.

Technological Factors

 Growth of extra cold larger vic Bitter is

a beer which is usually served at near-freezing temperatures.

 Flavoured alcoholic beverages  Growth of bottle beer in the on-trade

Victoria Bitter

PORTER FIVE FORCES ANALYSIS.

Victoria Bitter

Victoria Bitter
PORTER FIVE FORCES ANALYSIS.

Threat of new entrants  Economies of scale in manufacturing, distributing, and marketing to

create barriers to the national and global markets.In Australian beer industry which is "owned" by an old-fashioned duopoly between CUB and Lion Nathan, both of these two companies have established economies of scale due to their large production. As a result, it has created quite a high barrier for new entrants Lion Nathan had, they will be able to spend money on advertising, which then could lead to product differentiation, another source of barrier

 Product Differentiation With strong financial resources that CUB and  Government regulations are largest factor in this force Beer
industry itself, which is highly regulated by government, could also create a barrier of entry

Victoria Bitter
PORTER FIVE FORCES ANALYSIS.

Bargaining power of buyers  High  Buyers Volume Nowadays, premium beer industry has to face the impact of a

rapidly consolidating liquor-retailing sector that resulting, for example, Woolworths and Coles Myer, currently, already hold a combined of 45% market share. And, as a result, they will have more power to put pressure on profit margins to the premium beer industry due to their large volume

 Discounting of premium beers  Fewer consumers with brand loyalty  The quantity of alcoholic beverages that a nation
consumes tends to be unaffected through recession and prosperity while the quality of the products purchased is directly related to the disposable income.  A decline in disposable income shifts the consumer

Victoria Bitter
PORTER FIVE FORCES ANALYSIS.

Threats of substitutes  Low  Customer loyalty through brand awareness  The advertising restriction placed on alcoholic beverage
industry in recent years make it harder to achieve brand loyalty.  undoubtedly, mainstream beer. The primary reason for this is
because of the relatively higher price that premium beer has if being compared with mainstream beer. What makes this even worse is the fact that most of beer drinkers cannot really distinguish different type of beers only by taste

 Switching costs One important point about the amazing growth of

premium beer market is that it shows how beer drinkers could easily change their preference and proves that there is no cost at all to change. Therefore,

Victoria Bitter
PORTER FIVE FORCES ANALYSIS.

Bargaining power of suppliers  Products used to brew beer are inexpensive and
suppliers are numerous.  As all of the beer products are almost undifferentiated in taste, it can be said that inputs of all beer products must be just the same or undifferentiated as well. Therefore, suppliers will have no power to put pressure on price as beer companies could buy the production inputs, practically, anywhere

Victoria Bitter
PORTER FIVE FORCES ANALYSIS.

Intensity of rivalry among competitors  Moderate  Rise in legal and regulatory burdens, leads may
manufacturers to merge in order to lower competition  acting as oligopolies, they ensure high profit margins, cash flow, and investment returns.  Number of Competitors that Equal in Power Although the
competition is intense, fact shows that there are only two major brewers in Australia, CUB and Lion Nathan. Together, they now already manage to gain around 60% of the Australian premium beer market. Therefore, with this duopoly in the industry, it can be said that a very intense rivalry only occurs between these two companies

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