Key issues in the case
Discuss About The Molson Coors To Brew Cobra Beer In India.
The main motive of the task is to outline and discuss the business activities and functions of Cobra Beer. The company provides various beer products to the customers across the world. The paper discusses about the key issues and challenges that have been faced by Cobra Beer. Along with this, it also explains that how the company uses unique and effective marketing mix strategy to flourish the business and reduce the marketing issues widely. Here is the discussion about the threats and opportunities of the market. For this purpose, SWOT analysis is done by the company. The report also outlines the various segments for the organization and it also discusses the types of the segments that can be used by the firm. SMART goals for Cobra Beer have been explained in the task. More detail of the task has been discussed below.
Cobra beer is a beer brand manufactured in India and United Kingdom. Premium beer is a main and primary product of the company. The firm is incorporated by Karan Bilimoria. It serves its operations and functions in India, Europe, Middle East, East Asia and United Kingdom. There are ample of issues faced by the company while initiating and operating the business activities and operations globally (Quora, 2018). The issue and challenge may also affect the long term mission and vision of the firm. The concern or issue also affects the brand image of the company negatively. The issues which are being faced by the company include lack of manpower, production constraints, and poor distribution networks. Due to lack of manpower, the company has been unable to focus on the activities and operations of the business. As a result, it could also affect the long term goals and targets of the firm. On the other hand, Cobra is failed to provide sufficient products to the customers due to lack of adequate distribution network. It also affects the goodwill of the firm adversely. If Cobra wants to overcome the competitors then it needs focus on these issues and challenges to stay in the competitive market. Due to lack of manpower, various production and efficiency issues also are faced by Cobra Beer Company internationally. The operating income and revenue is failing down due to various marketing issues that are rising in the workplace. Cobra Beer company needs to make attractive and significant strategies to handle and resolve all the marketing issues and challenges. In this way, the company can maximize the profitability and further, it can also increase its operating income in the market. These issues also affect the core values and core competencies of the firm. Effective and dynamic strategies and plans shall be implemented by the firm to eliminate and reduce the marketing issues.
Analyzing the main marketing environment
UK beer market is facing many kinds of challenges. This has forced the Cobra to concentrate on different markets. It is essential for the companies to understand the marketing environment that exist in any business (Haberberg and Rieple, 2008). There are many variables that are changing in the global and domestic market of beverages industry. India is an emerging nation having a large number of populations under the age of 35 years hence it acts an excellent market for the expansion of their business. There are several strengths and weaknesses that are associated with the company that needs to be studied. For understanding the external market following points needs to be considered.
- Political and Legal: The political constraints have changed considerably in the past few decades. The taxes on the beverages have also increased in both Indian and UK market. The legal boundaries for their operations have also affected the business of the Beer Industry (Patterson and Hoalst-Pullen, 2014). The political decisions like Brexit created the danger on the free trade in the European region. In many of the Indian states there is ban on alcohol which is affecting the business of this industry.
- Economic: The economic challenges have increased for both U.K. and Indian market. The slowdown of the European market has also affected the trade of beverage products. This has increased the economic challenges for Cobra which was already hit hard by the economic challenges. In the coming years the challenges aims to get larger. There are large numbers of companies that are coming in beer industry and hence the chances of increasing profits are also lowering down (Vu, 2018).
- Social factors: India and UK both are culturally diverse markets. The tradition related to the beer usage changes incredibly. In the India the use of beer are not very much promoted in several communities. But the modern day is changing which is great opportunity for the company. The case is different in UK market as use of beer is very high and approach of people toward the business is also positive (D’Souza, 2012). In India there is easy availability of each of the resources including the human resource that too at the cheapest of levels.
Apart from this it is also essential that company understands its internal position in the market and check the challenges that are coming to them. For this the use of SWOT matrix can be useful.
- This company has the support of the nations like the UK and India which is having a higher GDP hence the chances of their business failure diminishes.
- Cobra’s human resource is considered to be as the best in the Industry especially their sales team.
- It offers variety of beverage items for its consumers from different age groups. Highly innovative products have been their key strength.
- In India it is served in around 96% of the licensed restaurants as well as stocked in around 5000 super markets in the country. In UK it is the 12thlargest beer brand (Babor, 2009).
- This brand earned the highest number of gold in 2006.
- In the past few years its economic performance has been poor and is evident from the reduction the sales of beer.
- Poor in terms of marketing communication which results in negative publicity.
- Poor distribution network in the European region (Swinnen, 2011).
- This company has immense opportunity to expand in the other parts of the Indian sub-continent as they are also highly dense markets.
- It is having larger number of opportunities in the niche market of both India and U.K.
- Increased competition in the industry with so many new companies coming up in the past decade.
- Poor control over distribution channels can help other competitors to gain the market share.
- Many states becoming alcohol free is decreasing the market share for the company.
For any company irrespective of the industry must be aware of the target segment for which they are making their products (Successive, et. al., 2014). Since cobra relies heavily on niche market hence they will have to do through market research so as to understand the demands of the market. As their nature of business is innovation based hence they need to think heavily about the demands of their consumers.Strategies must be based on these strategies only.
The major target market that they have is the people in the age group 18-65 years. To be specific they have concentrated on people in the age group 25-35 year men and women. It is essential that company concentrates on following types to research:
- Satisfaction analysis: It is essential to understand the loyalty of their base consumers which is very rare in the beer industry (Jernigan, 2009). Before launching the product company must understand the preferences of the people that are able to satisfy their needs.
- Brand awareness: It is crucial that Cobra checks their brand awareness in the minds of targeted consumers. This cannot be possible without effective marketing (Wells, 2016).
- Physiological research: It is crucial for the company to understand the psychology of their target consumers which differs from social background to background. India and UK have such highly diverse society hence their demands are also varying (Arora, et. al. 2011).
- Pricing Research: It is crucial that company understands the pricing margins that could attract the people they have attracted. This is crucial for their retention too. Selection of pricing must be based on the competitor’s analysis.
SMART objectives: SMART objectives play a vital and significant role to accomplish the desired targets and goals effectively and efficiently. SMART goals stand for specific, measurable, achievable, realistic and time specific. SMART goals also help in handling and managing the challenges and risks of the market. It is mandatory for Cobra Beer Company to identify and analyze the SMART goals for enhancing and encouraging the business operations widely. SMART criteria help the company to establish the suitable goals or objectives that can be easily achieved.
Specific: It has been found that specific objectives or goals are needed to set by the company to explore the business actions across the globe. The goals and objectives are established by the firm after considering the wants, expectations and requirements of the business. It is noted that goals and objectives are needed to be specific as per the available resources and effectiveness of the firm. The main objective of the company is to become a $1bn brand with the current valuation standing at $400m. In the given case study, it is stated that the company wants to increase or maximize revenue by 35% per annum. Ultimately, Cobra beer wants to be a leader in the global market.
Market research
Measurable: The term measurable has apparent that goals that have been set by the company should be measured, evaluated and analyzed. In regards of marketing objectives, Cobra Beer needs to measure and identify the objectives and goals after considering the various standards, rules, policies and standards that have been established by the top management, higher authorities and board of directors. Establish objectives or goals are needed to be compared with the management standards and policies (Osman et al, 2014).
Attainable: The set goals and objectives need to be achieved by the company in a specific time period. Idealistic and impractical goals must not be developed because such type of goals or objectives could affect the goodwill and effectiveness of the firm adversely. Along with this, Cobra Beer Company needs to identifies and measure the weaknesses and strengths for setting the suitable and appropriate goals and objectives.
Realistic: It is an effective and dynamic attribute for the company to accomplish the desired mission and vision. On the basis of performance and effectiveness of the company, suitable and pragmatic goals and objectives are built so that performance and efficiency can be improved and encouraged. Realistic goals or objectives also help in improving and building the financial position in the international market. Apart from this, these goals also help in attaining the rivalries benefits in a large extent.
Time specific: It is significant attributes that goals and objectives should be achieved in the given time period. It also helps in accomplishing the long term targets and objectives. If the company does not set the time framework then it cannot achieve the desired objectives and goals. Thus, Cobra Beer should set the time period to attain its objectives and targets smoothly and successfully.
The marketing strategy plays a significant and empirical role in standing out against the competitors in the international market. The marketing mix for Cobra beer Company has been detailed below.
Product: It is one of the vital and fundamental factors of the marketing mix that can help the company to produce or introduce innovative products in the international market. Product is a service or good rendered to the customers by the firm. It must integrate values and aspects that are significant to the key target audience. It has been noted that Cobra Beer Company analyzes and identifies the needs, tastes and preferences of the customers to increase the market share and sale in the global market (Curran, 2009). It is stated that the company started with premium beer product then launched Cobra zero and King Cobra to attract the maximum number of the customers widely. Cobra beer as a product is interconnected with rich Indian heritage, values and culture. It also explains the premium and high quality of larger produced and served keeping in mind the needs and wants of the customers. The reason behind this growth and success is that, it was launched to feel the void between a complimentary drink that every customer want to be delightful (Burke et al, 2008). It is stated that Cobra beer Company uses new product development strategy to introduce new products in the market. With the help of this strategy, the firm has been able to introduce Cobra lower calories lower carb beer products in the marketplace to strive with competitors worldwide. It also developed Kind Cobra product with excellent quality and taste. It produces beer products in various flavors to maximize the customers in a global extent. It is noted that Cobra bite was launched by the company on 14th May 2007.
SMART objectives and marketing mix
Place: This is an effective and unique factor for the good to do well. Cobra beer is Indian beer which was first introduced in Indian restaurant all over the United Kingdom. Effective and unique distribution channels are used by the company to beat the competitors globally. Distribution channel of the company is now taken care by UK’s 3rd biggest brewery molson coors who have experience, reputation and presence of distributing well known brands. Place strategy is one of the unique and dynamic strategies to capture the entire market in the marketplace (Somasekhar, 2018).
Price: It is stated that Cobra beer is becoming a premium brand in the market. To attract and retain the customers, the company has introduced smaller bottles in the pack of 4 bottles. The organization also provides various types of discounts to the customers in the competitive market. After the various studies, it is analyzed that Cobra Beer Company uses lower price strategy to sustain the customers globally. Further, it is recommended that the company should set the suitable prices after considering the wants and demands of the customers (Neves, e Castro and Cônsoli, 2010).
Promotion: It is analyzed that Cobra Beer Company uses various promotional and advertisement strategies to stay in the competitive market. It is noted that various public relation campaign and sessions are done by the company to promote the beer products globally (Muntinga, Smit and Moorman, 2012). Furthermore, advertising through press, TV, cinema and radio started when beer products was made available in pubs. The advertisement and promotion are done by Cobra Beer Company to increase awareness among the customers in the international market. Social media and online marketing strategy are also used by the firm to increase the selling of the products (Kincl et al, 2014).
People: The team of the company is limited but the front office executive of all the restaurant in India and UK are talented and skilled. Their faith and support in the brand generates its image of the most effective and unique Indian beer in UK.
Process: One of the vital elements that is used by the company is process. It is noted that effective and dynamic process is initiated by Cobra Beer Company to meet the long term requirements of the business. Along with this, Cobra beer is also available in off and on trade markets making key target audience easy to get one (Saravanakumar and SuganthaLakshmi, 2012).
Physical evidence: Physical evidence is most successful and effective factor in marketing mix. Physical evidence is taken by the customers while buying the beer products in the marketplace. Furthermore, physical evidence refers to all tangible and visible touch points that customers will encounter before they buy from any point of sale. Cobra beer’s appearance and bottles is significant physical evidence for the brand. In this way, marketing mix plays a vital role in overcoming the competitors globally. This strategy also focuses on the labeling and branding to hit the rivalries globally. The labeling and branding strategy is contributing to determine the success and growth of the products.
It is stated that marketing mix helps in resolving the various issues such as poor constraint network, poor manpower and ineffective process. This strategy helps in producing innovative and unique products at appropriate prices in the global market. By using this strategy, the organization has been able to expand and flourish the business activities across the globe. Apart from this, the company can also use diversification strategy that helps in differentiating the beer products from the competitors globally (Burns, 2017). The company also should focus their efforts on driving growth the United States, India and South Africa. It also manufactures its beer products in China. The founders of the company realized that people did not enjoy their beers with food just because of the high levels of bitterness and gas. The marketing mix theory will provide a valuable and effective guidance for producing the beer products in Indian and United Kingdom. Apart from this, it also helps in allocating or distributing the responsibilities among the people. The company can identify and analyze the plans, policies, prices and products of the competitors (Tønnessen, 2014). Aside this, unique and effective communication can be maintained by the company with the help of marketing mix strategy globally. Beside this, product development strategy is also used by the company to make attractive and unique the products widely. No company can survive and grow its business functions and activities without using marketing mix strategy. By using this strategy, the organization has been able to capture the entire market and along with this, it can also increase its market share and sales volume (Chen, 2014).
The proposed strategy could help the company to take care of the problems that are confronting their business. New Product development strategy could help the company to capture larger part of the market. In the competitive business this helps in attracting new set of consumers. Apart from this low pricing strategy is used in their products. This would help them in winning the price war which is very essential in the beer market. Apart from this promotion strategy like the online and social media strategies could help in reaching to larger number of consumers with the least possible time. Investment in the CSR activities could also help in image building of the organisations. The implication of all these strategies will be that it will help in the development of their business. It will not only help in gaining new consumers but will also help in retaining the old ones. These strategies will help in regaining the lost position of the company in the market as well as will improve their declining sales. It will also help the company in staying ahead of the competitors in terms of quality and value they are offer to their consumers.
Conclusion
The above mentioned limelight event it is concluded that Cobra Beer is a biggest leader in the market. The analysis shows that how the firm is setting SMART objectives to stay in the competitive market. It is analyzed that how the organization is facing marketing issues while operating the functions and activities widely. Furthermore, segments for the organization and SWOT analysis also have been discussed in the task. At the end, effective strategy is implemented to accomplish the long term mission and vision in the competitive market.
References
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