Company Market Strategy

ac trammel marketplace Strategy condescension Strategies in Global EnvironmentTopic You have been called upon by a classify of company directors to advise them on the future strategic direction of the company. In particular they aim to participate more actively in the universe(a) merchandise.RequiredIdentify their current strategic focussing style or approach drawing on the schools of strategyUsing relevant tools of psychoanalysis conduct an environmental audit of what you perceive to be suitable securities industrys for the wag to consider.Identify and discuss possible strategic directions that the board could consider in order to develop a greater presence in the valet(prenominal) market.Assess the managerial challenges of implementing your chosen strategy.GroupRohitZakiFuadNiharShahidSatyanarayanLalidaAmornratParitaNithAsadThe conquest of any constitution lies in their goals and the mission. But establishing the goal is not enough to gain the success in this dynam ic environment. Thus every company needs a strategy to achieve their goals. The classical meaning of the word strategy is the intent for victory in a struggle. Similarly in business war field strategy gives the strength required for winning. Selection and implementation of usurp strategy overhauls to the great triumph scarcely otherwise it could be a great fiasco and grand business failure. This report on the COBRA Beer guild will make an attempt to analyse the current strategies which argon roaringly apply by the company, carry out an environmental audit of the company using the suitable environmental s sack upning tool, would suggest alternative strategies to be used in the future and finally will comment on most probable challenges the company may face while implementing those strategies. active COMPANYI felt very demoralised, but never formerly thought of giving up- Mr. Karan Bilimoria (Clark Emma, 21 August 2003)BACKGROUNDThe Cobra Beer was the shaver of thought of a Cambridge law graduate Mr. Karan Bilimoria which won 12 metallic medals from the prestigious Monde Selection, Brussels, in 2006. The company was established in 1989 by Mr. Karan Bilimoria when he realised the requirement of smoother and less fizzy beer especially in UK market. (The CBI Directory) immediately it is world exported in more than 50 countries and total sell turnover is 126 million. (The Economic multiplication, 16 September 2007)MISSIONPRODUCTSIn the begin Cobra wanted to set up breweries in Mysore, India at the cost of beers quality, the finish was changed and they shifted to Charles wells brewer, UK. Now cobra is having breweries in UK, European countries such as Poland and India as well. (Clark Emma, 21 August 2003) Along with the Classic Cobra beer, it has a very unequalled product range as Cobra 0.0%, which is beer with no alcohol, Cobra Lower Cal with calorie satiate lower than 100 cal. and King Cobra, the worlds first icon fermented, bottle-conditioned be er, which is so successful that it change magnitude the sells by ten folds in India. It similarly produces nine types of wines. (The CBI Directory) marketMr. Bilimoria was well aware of the importance of brandmarking, as his first product brand name Panther was declined, he chose cobra very carefully. Bottle was put up with sandy gold label and with cobra written in green. At least(prenominal) nobody can miss its presence in supermarkets. His tar submited niche market was Indian restaurants in UK. Though beer remains dearer it was selling half of its take in 5600 Indian Restaurants. He gain popularity as the Indian beer maker. (Clark E, 21 August 2003) Along with creating first trade marketing team, Cobra is soon expiration to launch new designs for King Cobra and Cobra Bite. According to Will Ghali, marketing director of Cobra beer The aim was to give our beers a more contemporary, stylish appearance, and to increase the standout on shelf. Were delighted with the new design s and, more seriously, feel that theyll have a truly strong appeal with our core consumers. The company would be spending 14 million on marketing in 2008. ( minister of religion R, 22 April 2008) Cobra beer in course 2005 announced a Cobra Vision short film competition for be after filmmakers which gave them an opportunity to appear national television. (The CBI Directory) Now it is sponsoring all prime sentence programs on UKTVs Dave to make heavy weight presence (Parsons R, 22 April 2008) magnification IN GLOBAL MARKETCobra has made its presence noticeable in UK, USA, South Africa, India and other European countries. As import duties in India are very high Cobra decided to produce beer in India. Cobra beer is now being produced in Rajasthan, Goa, UP and Som Breweries, MP, Iceberg Breweries, Bihar. (The Economic Times, 16 September 2007) keep mum the market packet and per capita consumption in India is very low as compared to UK, being the major competitor The Kingfisher Be er of India. (Clark E, 21 August 2003) Cobra is now provision to acquire three more breweries in India as they are targeting to double their capacity to 20 million cases by 2012. Company also aspires to get listed in UK and India. (The Financial Express, 6 may 2008,) The company started with 20000 of student debt in 1989 has already raised 25 million through unsecured loans from OZ sculpturer Finance Ireland investment funds and 2.5 million by issuing run-of-the-mill shares to private and institutional investors for its future plans. (Mood Food clipping Food news, Restaurant intelligence service, Recipes, Nutrition, 17 July 2006) Cobra beer is now being exported to Dubai, Abu Dhabi, Bahrain and Oman. As the Middle East market is not well developed yet, cobra has introduced non-alcoholic Cobra beer in the region. For expanding in South Africa cobra is essay to acquire local breweries, so that company can get storage area on the niche market. (Nolan L, 26 October 2006) CURRENT STRATEGIES EXPLOITEDThe company is soon using divers(prenominal) strategies such as, differentiation, launching innovative products, identifying niche market, branding, merchandise and expanding by acquisitions etc. which can be explained with the help of various gets. specialism Low price, Segment specificity, Differentiation or Hybrid etc.can be used as the combative strategy. Johnson et. al. (2006) gives the strategy clock which differentiates between winning and weakness competitive strategies. The Strategy Clock rivalrous Strategy Options(Source Johnson et. al., 2006, p.243)The Company has gained the competitive advantage using the differentiationstrategy. The differentiation as competitive strategy was first explained by Michael Porter in 1980 using a model known as Generic business level strategy.Source of rivalrous Advantage address UniquenessBreadthBroad Target Market CostDifferentiation Of LeadershipCompetitiveScope Focused FocusedNarrow Target Market LowDifferen tiationCostPorters Generic Business Level Strategies(Source Porter M, 1980, p. 39)Product development Ansoffs Market Expansion Grid BrandingAcquisitionENVIRONMENTAL AUDIT debonePorters Five ForcesRIVAL FROM INDIAThe SWOT analysis suggests that United Breweries from India is one the important competitor for COBRA not only in Indian Market but also in the Global Market. The credit for the success of UB goes to its Chairman Dr. Vijay Mallya.journey of UB from Kingfisher Beer to Kingfisher AirlinesINTRODCTIONUnited Breweries ltd. (UB) was formed by a Scotsman Mr. Thomas Leishman in 1915 when he united five breweries owned by him in Madras (Chennai), India. The company was accordingly bought by Mr. Vittal Mallya in 1947. (www.kingfisherworld.com, cited on May 28, 2008) The company got the real wring when Mr. Vijay Mallya, son of late Mr. Vittal Mallya became the chairman and took the charge in 1983 and the UB became Indias first multinational. Today UB group is recognised as the sevent h largest spirit makers in the world and the beer is sold in more than 32 countries worldwide. But UB group lead by Dr. Vijay Mallya did not want to confine themselves only to beer production. Versatility was the key strategy used very tactically by Mr. Mallya. UB group own a software company established in USA in 1993 which is also listed on NASDAQ, Kingfisher Airlines launched on May 9, 2005, which is Indias second largest domestic airliner, Indias first life style channel NDTV Good Time launched on 7 September 2007 and Indias startle Formula One team Spykar F1 team bought with Mr. Micheil Mol in October 2007. (The Times of India, 2 April 2008) PRODUCTSThe UB group, which acquired McDowell Co. Ltd is well known for its innovative product range. The UB products ranges from kingfisher beer to 17 different types of whisky such as, Black Dog Whisky, Single Malt Whisky, hint Whisky, No. 1 McDowells Whisky, McDowells Vintage Whisky, McDowells Premium Whisky etc., 3 types of Brandy, 2 types of Rum, 3 types of Gin, 4 types of Vodka such as Romanov, Alcazar, White Mschief, Red riband Vodka. (www.clubmcdowell, cited on May 28, 2008) GROWTHUB acquired Triumph Distillers Vintners (TDV) in December 2002 and Shaw Wallace and Company Ltd (SWC), the second largest Indian Spirits company in June 2005. it has also increased its investment in Herbertsons Ltd (HL) which in total has increased the market share of UB from 24% to 52%. (www.clubmcdowell, cited on May 28, 2008) Apart from that UBL is having strategic alliance with Scottish NewCastle Plc (SN), which generates the revenue of $6 billion. Because of the joint venture SN can launch International brands like Kronenbourg in India, while UBL got SNs global vane to further globalization. (www.kingfisherworld.com, cited on May 28, 2008) Along with the export of Alcoholic Beverages UB exports mens casuals, dress shoes, ladies foot-wares, processed food items, pharmaceutical products and incense sticks to various parts of the world. (www.clubmcdowell, cited on May 28, 2008) ADVICED STRATEGYDiversification Ansoffs Market Expansion GridPortfolio management poses directional policy matrix Prospects for Sector ProfitabilityC unseductive modal(a) Attractive OM Disinvest PhasedDouble orP Weak WithdrawalQuitE CustodialTI Phased CustodialTry HarderV Average WithdrawalE GrowthNE Cash GrowthLeaderS Strong GenerationLeaderThe Shell Directional Policy intercellular substance(Source Shell Chemicals UK (1975) Acquired from Lancaster (2002))ANALYSE STRATEGYCONCLUSIONREFERENCEThe CBI Directory, Company visibleness Cobra Beer Ltd., cited on May 23, 2008, available from http//www.cbidirectory.co.uk/cobrabeerltd/The Economic Times, 16 September 2007, Beer to press major expansion in India, cited on May 25, 2008, Available from http//economictimes.indiatimes.com/News/News_By_Industry/Cons_Products/Cobra_Beer_to_undertake_major_expansion_in_India/articleshow/2373521.cmsClark E, 21 August 2003, The less gassy rise of Cobra Beer BBC News Online Business Reporter, Cited on May 25, 2008, Available from http//news.bbc.co.uk/1/hi/business/3052349.stmParson R, 22 April 2008, Cobra Beer prepares new-look packaging, mad.co.uk, cited on May 25, 2008, Available from http//www.mad.co.uk/BreakingNews/BreakingNews/Articles/52abaffb2fa743c3bc1bfba5494696dd/Cobra-Beer-prepares-new-look-packaging.htmlThe Financial Express, 6 May 2008, Cobra targets 20 mn beer cases in India, http//www.financialexpress.com/news/Cobra-targets-20-mn-beer-cases-in-India/306079/Mood Food Magazine Food news, Restaurant News, Recipes, Nutrition, 17 July 2006, cited on May 25, 2008, available from Cobra Beer Secures investiture For Growth http//www.menumagazine.co.uk/archive/july06/weekly/cobra_investment.htmlNolan L, 26 October 2006, Snakes and Ladder, Caterer Middle East position Edition, http//www.itp.net/news/494102Johnson G, Scholes K and Whitting R (2006), Exploring Corporate Strategy, 7th Enhanced media edition, England Pe arson program line ltd. Chapter 5, pp. 242-243 Porter M (1980), Competitive Strategy Techniques for Analyzing Industries and Competitors, New York Free Press. Chapter 1, 2, pp. 3-46Kingfisher world (online) cited on May 28, 2008, available from http//www.kingfisherworld.com/corporate/corporate-history.htm and http//www.kingfisherworld.com/corporate/corporate-index.htmThe Times of India, (2 April 2008), (online) cited on May 28, 2008, Available from http//ipl.timesofindia.indiatimes.com/articleshow/2919442.cmsClub McDowell, (online) cited on May 28, 2008, Available from http//www.clubmcdowell.com/org/product_main.htm, http//www.clubmcdowell.com/org/global_main.htm and http//www.clubmcdowell.com/org/corporate_main.htm Shell Chemicals UK, The Directional Policy Matrix, A New aid to Corporate Planning, November 1975. Cited from Lancaster G et al. (2002) Essentials of Marketing, 4th Edition, UK McGraw-Hill Publishing Company Limited, Appendix one, p528.