Saku Brewery Essay

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Saku Brewery Problem Saku’s flagship product, domestically produced beer, has seen declining sales. The cause for this decrease is the consumer shift towards imported beer and other beverage products, including both alcoholic and non-alcoholic drinks. Saku’s current portfolio of products and the shifting market towards other beverages will lead to a decreasing market share of the total beverage market and will result in an overall decrease in revenue for Saku. Therefore the main problem for Saku is developing an appropriate marketing plan and product portfolio to capitalize on this current consumer trend. Solutions Saku’s main product is domestically produced beer which contributes 80% of its revenue. Results from 2003 show Saku owns 43% of the domestic beer market with its Saku beer products and 18% market share of the imported beer market with the licensed Carlsberg, Guinness and Kilkenny beer products. Saku owns 40% of the entire beer market in Estonia which is 56% of this overall beverage market. Saku owns 10% market share of the remaining (non-beer) beverage market. Saku markets other alcoholic drinks: a cider line called Kiss and long drinks. Saku’s water products are Vichy Classique and Montavit. Saku has the distribution license for Pepsi, 7Up and Zingo soft drinks. This indicates that while Saku has a lead position in the beer market, they also have also started to market products in the overall beverage market. Saku has two main customer groups for their beer products, domestic (Estonian) consumers and tourist (mostly Finnish) consumers. Domestic consumers comprise a much larger group (96%) and break down along lines of male/female and age. All of Saku’s products are predominantly purchased at public establishments and supermarkets, and predominately consumed at these public establishments or at home. These distribution points are

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