Saku Case Study

Saku

Beer Market

Estonia

Beer

Obviously we keep SakuOriginaal and use it to pull in as much money as is possible. We may need to spend some money to ensure we remain dominant in this market.

None of the other beers stand up on their own, but it may be necessary to keep some of the minority beers (e.g. Rock) in order to keep the Saku beer brand relevant.

Cider

We are already the market leader, and the market is growing rapidly; we should be investing here to make more money in the future.

Long Drinks

We are already the market leader, and the market is growing very rapidly. There are lots of companies with a relatively small market share, so we should be able to grow here quite easily. Invest here.

Water

We are the joint second largest player along with Tarfu (at 15%), behind the market leader Coca-Colas with 23%. The market is growing at 8% a year. This might be a candidate to divest in order to concentrate on more important markets.

Soft Drinks

We have 4% of the market behind Coca-Cola with 66% and Tarfu with 16%. The market is only growing 5% a year. We should get out of this market.

Foreign Beers

This is a tricky call as our owners are probably keen for us to keep selling their beer. The market is growing just over 10% per year. Carlsberg has 18% of the market, behind Koff with 40% and Olvi with 20%. Guiness and Kilkenny have an almost undetectable portion of the market.

We should definitely get rid of Guiness and Kilkenny, but Carlsberg is a candidate for keeping and trying to grow market share.

Advertising

Divesting Kilkenny, Carlsberg, Soft Drinks and Water will save 12% of the advertising budget. This should all go into advertising for Cider and Long Drinks, which is currently low given their strategic importance. The advertising on Carlsberg is already fairly high, so does not need to be increased. The advertising on beer (especially the minority brands) seems high; there may be some scope to move some of the beer advertising intoCider and Long Drinks.