Carlsberg Case Study

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INMA Case 2 – Carlsberg 1. 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 product life cycle (PLC) has four stages: 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. Carlsberg battles for market share by introducing product improvements, using advertising and sales promotional offers, dealer discounting and price cutting. Similarly, the need for effective brand building is felt most acutely during maturity and brand leaders are in the strongest position to resist pressure on profit margins. Strategic marketing objective Hold Strategic focus Protect share Brand objective Brand loyalty Products Differentiated Promotion Maintaining awareness / repeat purchase Price Lowest Distribution Intensive Chapter 6, page 158, table 6.5 – Marketing objectives and strategies over the product life cycle 2. The Boston Consulting Group’s (BCG’s) growth-share matrix is a technique borrowed from strategic management that has proved useful in helping companies to make product mix and/ or product line decisions. 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

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