Carlsberg - Changing an iconic slogan

Report
Carlsberg
- Changing an iconic slogan
Positionering och en framgångsrik sådan
Hur främja ett varumärkes framgång
Hur diversifiera en produktportfölj (BCG)
Produktens prestanda under sin livslängd (PLC)
Identify Carlsberg’s current stage in terms of its Product Life Cycle
• A useful tool for conceptualizing the changes that may take place during the
time that a product is on the market is called the product life cycle.
• The four stages of the product life cycle are introduction, growth, maturity
and decline.
• Carlsberg is at the late stage of maturity. In this stage sales will eventually
peak and stabilize as saturation occurs, hastening competitive shake-out as
can be seen in the global beer market. Similarly, the need for effective
brand building is felt most acutely during maturity
Strategic Objectives and the Boston Box
The Boston Consulting Group’s (BCG’s) growth-share matrix is a simple technique borrowed from
strategic management that has proved useful in helping companies to make product mix and/or
product line decisions. The matrix allows portfolios of products to be depicted in a 2 × 2 box, the
axes of which are based on market growth rate and relative market share.
Problem children
Market growth
Stars
• Build sales and/or market share
• Invest to maintain/increase
leadership position
• Repel competitive challenges
Cash cows
• Hold sales and/or market
share
• Defend position
• Use excess cash to support
stars, selected problem
children and new product
development
•
•
•
Build selectively
Focus on defendable niche where
dominance can be achieved
Harvest or divest the rest
Dogs
• Harvest or
• Divest or
• Focus on defendable niche
Relative market share
3
Carlsberg Group has a portfolio of over 500 brands varying
significantly in volume, price, target audience and geographic
penetration. Outline the benefits of using the Boston Consulting
Group growth-share matrix to manage this portfolio to the
Carlsberg Group. In what quadrant of the matrix would you
place the Carlsberg brand?
•
Carlsberg can use the matrix to assess market attractiveness and competitive strength of
their brands. Having plotted the position of each product on the matrix, Carlsberg will be
able to develop the appropriate strategic objective for each. The BCG matrix has four
quadrants; stars, cash cows, problem children and dogs.
•
Problem children are cash drains because they have low profitability and require
investment to enable them to keep up with market growth. Carlsberg can be classified as
a problem child because the brand has low profitability and requires investment to
enable them to keep up with market growth.
•
The Carlsberg group has made the choice to increase investment (build) to attempt to
turn the problem child into a star. If the rebranding is unsuccessful then Carlsberg could
move into the Dog quadrant.
The Anatomy of Brand Positioning
The anatomy of brand positioning is an analytical framework that can be used to
dissect the current position of a brand in the marketplace, and to form the basis
of a new brand positioning strategy. The strength of a brand’s position in the
marketplace is built on six elements: brand domain, brand heritage, brand values,
brand assets, brand personality and brand reflection.
Brand
Heritage
Brand
Domination
Brand
Values
Brand
Positioning
Brand
Assets
Brand
Personality
Brand
Reflection
5
Discuss using Figure 6.3 (the anatomy of brand
positioning) the effect of Carlsberg’s new tagline on
the positioning of the Carlsberg brand.
•
•
•
•
•
•
Brand domain: the brand’s target market, i.e. where it competes in the marketplace. The
rebranding has seen Carlsberg actively target the younger generation of drinkers
Brand heritage: the background to the brand and its culture. Carlsberg has a rich
heritage of innovation in the brewing industry by introducing a number of important
scientific developments. This has been reinforced by Carlsberg in the new campaign e.g.
new barley
Brand value: the core values and characteristics of the brand. Carlsberg’s new tagline
asks a new younger generation of drinkers to stand up and do the right thing and
consequently, reward themselves with a Carlsberg.
Brand assets: what makes the brand distinctive from other competing brands Carlsberg’s
new modernised packaging and visual identity (Crown) will be important assets as part
of this campaign. Features such as the Null-lox barley and relationships with sponsorship
partners such as UEFA will be important factors in determining success.
Brand personality: the character of the brand described in terms of other entities, such
as people, animals or objects. The product design appeals to younger costumers.
Brand reflection: how the brand relates to self-identity; how the customer perceives
him/herself as a result of buying/using the brand. Carlsberg have targeted the younger
generation of drinkers and have positioned Carlsberg as a reward for achieving something
in their daily lives.
Critically evaluate the advantages and risks associated
with utilising a single global branding strategy for
Carlsberg. Explain what is meant by a ‘glocal’ approach
Arguments for introducing a single branding strategy for Carlsberg include:
•
Carlsberg need to have a global positioning strategy in order to achieve the
groups objective of becoming a global beer icon
•
New slogan more contemporary and translates well across markets. This
overcomes the difficulties in translation of the word probably which is important
for growing market such as Asia. Sales of the Carlsberg brand only account for
10% of the overall Carlsberg group sales
•
The new approach has a greater appeal to younger consumers. This is important
as Carlsberg have clearly identified the market for which they are targeting
with the campaign
•
A new single global positioning strategy would allow Carlsberg to gain significant
economies of scale
Arguments against introducing a single
branding strategy for Carlsberg include:
• Campaign change is very risky. Carlsberg risk
alienating some of their primary markets
including the UK.
• Large investment required with no guarantee of
success
• By changing a long held and very successful
slogan, Carlsberg risk confusing customers by
changing their marketing communication
messages as well as introducing new brand
values

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