Inbev Swot Analysis

InBev

http://www.ias.org.uk- Alcohol and the Law

Mission:
‘consumers come first at InBev. Our promise is to create enduring bonds with consumers so that they enjoy our brands time and time again’.
Vision:
‘to become the best beer company in a better world’.
Goal:
‘to strengthen our position in developed markets, and continue to maximise opportunities in high-growth markets.’

SWOT
Internal Factors:
Strengths
* Volume sold in 2007 in the UK – 10.8million hectolitres * 16.9% market share in UK * InBev have 3 beverage plants in the UK – Magor, Samlesbury & Wellpark * Approximately 2300 staff in the UK * Have some of the most leading brands of beer – including Boddington, Stella Artois, Heineken and Becks * Their sales of Becks Vier increased by 299% in the UK in 2007 from 2006. * Heineken is number 1 in the market with a 24.7% market share * Portfolio of more than 200 brands *
Weaknesses
*

External Factors:
Opportunities
* Scream card * Encourage brand loyalty – customers may see other well known brand with low prices (offer) and buy the substitute * Winning prizes – sending letters *

Threats * Competitors – Carling, Fosters, Grolsch and Kronenbourg 1664. * Happy hour – talks of ban * Binge drinking – reducing promotion in supermarkets to help reduce binge drinking * Smoking ban * Cannot buy alcohol after 12 * Credit crunch – less disposable income, more drinking at home – may drink less at home as it is a less social environment

PESTEL
Political
* Pressure on producers and sellers to be more socially responsible. * Talks to ban ‘Happy hour’ * Smoking ban – less people go drinking in pubs where they drink more than at home * Drink driving legislation * Duty * Binge drinking * Glass ban

Environmental * In 2005, 95.1% of UK waste was re-used or recycled, which is ahead of many companies in the food and beverage sector. * InBev have a commitment to light-weighting their packaging and to continue to innovate in this area without compromising their quality * InBev has reduced the amount of energy they need to produce a hectolitre of product by 12.4% in the UK. * Two of InBev’s sites in the UK generate their own electricity through Combined Heat and Power schemes, sometimes even exporting power to the National Grid.

Social – cultural values * Wider consumer choice – wine etc * Drinking less – better (people are more health conscious) * Responsible drinking * Other leisure opportunities *
Technological Advances * Growth of ‘extra cold’ lager * Growth of bottled beers
Economical
*

Legal * The law performs a number of functions and regulates a range different settings and forms of * behaviour. * 1. Licensing laws * 2. Drinking in public places * 3. Protection of children and young people * 4. Abnormal drinking behaviour * 5. Drinking and driving * 6. Specific occupational groups * 7. Sports events

Porter’s five forces
1/ Threat of new entrants * Cobra – 10-15 years old

2/ threat of substitutes

3/ bargaining power of suppliers

4/ bargaining power of customers

Competitor analysis – Carlsberg * Carlsberg group is the UK’s fourth largest brewer * Have breweries in Leeds and Northampton – since 1973. * Been one of the UK’s leading lager brands since it was introduced to the British beer market in 1868. * Carlsberg’s sponsorship of football in the UK and internationally have made it a famous brand. * They merged with Allied Lyons brought the famous Tetley’s brand to the Carlsberg portfolio. * Tetley’s has been the same with the brewing of high quality ales for almost two centuries and the brand is well established as the beer of rugby. * The Carlsberg Group is sponsor of the England football team, Liverpool Football Club and the FA Cup, and is a founding partner of the new Wembley stadium.

Carlsberg’s Strategy
‘We aim to create value by increasing our earnings and realising the value of hidden assets (including unused properties), and to expand by growing our business in existing markets and entering new markets. In order to achieve this strategy, we have introduced a range of targets and action plans to help shape the Carlsberg of tomorrow.’ * KEY FACTS: * Sites: 2
Capacity: More than 1 billion pints of beer per year
Employees: 2,227
Market Position: 4
Market Share: Around 13%
Annual beer consumption per person: 95.6 litres
Carlsberg Ownership: 100% * SWOT Analysis – Carlsberg * Strengths: * brand image * quality * strong financial position * distribution network

* weaknesses

* Breached CAP (Broadcast) TV Advertising Standards Code Rules 5.1 (Misleading advertising) and 5.2.2 (Implications). Advertise was misleading – pouring beer outside while having a BBQ- instructions on packaging stated the product was unsuitable for outdoor use.

Competitor Analysis - Scottish and Newcastle * UK’s largest beer and cider business * Brands include: Fosters Strongbow, John Smiths, Kronenburg 1664 & Heineken * From April 2008 – became a part of Heineken N.V. (the world’s most international brewer). * S&N UK can trace its roots back to 1777 when its first brewery was founded in Edinburgh by William Younger. Since then it has grown from being a regional brewer in Scotland and the North of England to become the UK’s largest brewer. * Around 28% market share in UK

Care for the Environment
They are committed to: * Encouraging and promoting an excellent safety and environment culture. * Establishing an overall improvement strategy with all operating companies setting objectives and targets. * Engaging in active dialogue with our employees, customers, neighbours and other stakeholders * Openly reporting on our progress and performance * Recognising that no activity is so important that it cannot be done safely.

S & N’s Strategy
"To lead the transformation of beer & cider by bringing unrivalled investment, passion and imagination to the market place."
Their intention is to create an environment where their people live and breathe the brands and the values of Scottish & Newcastle UK which are: * Responsibility * Innovation * Winning * Working Together * Consumers and Customers