1. Executive Summary
We would like to apply Porter’s 5 forces of competitiveness to analyze in details the business environment faced by Carlsberg and Heineken in Malaysia.
Detail of how Carlsberg and Heineken had done a good choice to take the risk of marketing in Malaysia is discussed below. The advantages and disadvantages of such decision are highlighted below as well.
We then identify the generic strategies adapted by Carlsberg and Heineken successfully and describe the different generic strategies for different products of different segments in Malaysia.
2. Introduction of Beer
Beer is one of the oldest human-produced beverages, ...view middle of the document...
2. Carlsberg Today
Carlsberg's primary focus is the production, sale and marketing of beer, with secondary activities in soft drink and water production. Carlsberg's three key markets are Western Europe, Eastern Europe and Asia.
Carlsberg's strong portfolio of global, regional and national beer brands appeals to a broad diversity of tastes, personalities and lifestyles and ensures growth in all segments of the beer market. The portfolio is constantly strengthened through a clear branding strategy; with the Carlsberg brand as the leading international premium beer, supported by regional brands such as Tuborg and national brands like Tetley's, Baltika and Ringnes.
1. Heineken Introduction
1. History of Heineken
The Heineken family entered the beer business in 1864, when Gerard Adriaan Heineken bought a brewery in the heart of Amsterdam. Over the past 140 years, three generations of the Heineken family have built and expanded the brand and the company in Europe and around the world. It is thanks to the leadership of Gerard, Henry and Alfred Heineken that Heineken is one of the world’s leading brewing groups.
2. Heineken Today
Heineken has wide international presence through a global network of distributors and breweries. Heineken owns and manages one of the world’s leading portfolios of beer brands and is one of the world’s leading brewers in terms of sales volume and profitability. Our principal international brands are Heineken and Amstel, but the group brews and sells more than 170 international premiums, regional, local and specialty beers, including Cruzcampo, Tiger, Zywiec, Birra Moretti, Ochota, Murphy’s and Star.
2. Michael Porter’s 5 forces application
The main 2 brewers in Malaysia are
1) Carlsberg Malaysia whom produce, market and distribute Carlsberg, Skol, Royal Stout, Nutrimalt and Tetley’s beer and Jolly Shandy.
2) Guinness Anchor Berhad (GAB) whom produce, market and distribute Anchor, Tiger, Guinness, Heineken, Kilkenny, Malta beer and Anglia Shandy.
Other brands are Kirin, Asahi and Sapporo from Japan, Foster from Australia and Budweiser from United States.
Beer in Malaysia is normally serve in draught, can and bottle, where draught beer can only be served in pub with special limited permit. Can and bottle beer are available thru out most of the F&B outlet with normal liquor license.
Malaysia original beer market is competing among Carlsberg, Heineken, Anchor, Tiger and Budweiser. But Heineken has less competition as Anchor and Tiger come under the same company, which target for different market segment and individual preference instead of creating competition among each other.
2. New entrant
There are new entrants such as Singha beer and Beer Chang from Thailand, Chitau from China, Bintang from Indonesia. As Malaysia beer market has been stable for many years only among the two brewers, as such, these new entrants comes into the market with much lower price and...