Foster’s Group- A New Product Portfolio

Group Members:Shubham SinghNeha mishraGaurav SawlaniChetan JoshiNaina Rishi

Introduction

William & Ralph Foster: 1887Headquarters: Melbourne, Australia.Largest selling Australian beer.Also deliver: Wine, Spirits & Ciders.Brewed in 9 countries at over 20 plants.World’s 3rd most widely distributed brand.Available in more than 150 countries.

Foster’s Multi beverage business model

Foster’s huge brand portfolio enabled it to have significant presence in every product category and market segment.•Premium categories•Value for money category•Wine categoriesBrand Equity and Distribution network.Specific Managers catering to its specific requirements.Also offers hotel chain, restaurants, pubs and small bottle shop owners a multi-beverage solution.Classified its various brands depending on their brand power.

Foster’s In India• Fosters is the first foreign brewery to establish operations in India located at

“Foster’s India Ltd M-99, MIDC, Waluj, Aurangabad.”• Invested a $ 20 million into an 18 million brewery located in Aurangabad.• Production commenced in June 1998.• Fosters has the second largest share in the Mumbai City.

The Product• It’s a light beer category. It is by definition extremely light in colour & body

& mild in flavour.• Developed using innovative process of ultra high gravity brewing.• In 1972 all brand importers started importing Fosters to the U.S.• In 1976 the CUB sent one million cans to New York. • New touch to the Fosters in 1993.• Now it is the third largest selling International beer brand.

• Goal of Fosters stated by Pradeep Gidwani, Managing Director, Foster’s India Ltd. “We want to establish Foster’s as an international premium lager beer”.

• 70% of the Fosters sales come from pint size market.• In 2000 notched up sales of Rs. 25 crore with around 1.58

million cases sold.

TARGET AUDIENCE• First time drinkers• Younger crowd• College /Office going youths • Maharashtra is the highest consumer of beer • In world wide spirits to beer ratio is 1:7. In India it is 7:1

0

10

20

30

40

50

60

2000 2002 2004

BeerBottled WaterCSDsCoffeeDistilled SpiritsFruit BeveragesMilkTeaWine

Litres Per Person – Beer in comparison with other Liquids

USP OF FOSTERS BEER

•The Indian pallet and food is more associated with beer. This beer combines nicely with Indian food.

•Has 38 calories per 100 ml which is very less compared to other like red wine 75 cal./100 ml, Champagne 70 cal/100 ml.

IMAGE OF THE BRAND

• Beer as a product has been confined to form 5 categories of dominant appeals.

• Fosters product gels well with the friendship image• Ideal for image as sports person.• It sponsors to formula I grant prix from 1986.

  UK India

Friendship - 50%

Sex 55% -

Sport 22% 10-

Tradition - 30%

Relaxation 22% 10%

Growth strategy•Diversified into wines in 1997.•Rejuvenated its beer brand.•In 2001 launched HOW TO SPEAK AUSTRALIAN advertising campaign.•Increased the length of TV campaign and launched a national radio campaign.•Restructured the operation of Carlton and United Breweries(CUB).•Acquired Australian brand Mildara Blass wines which was quite success in export market.•Also forged a partnership with another major US wine manufacturer to increase its presence in international wine market.•In 2000 Bought a Californian winery, Beringer for $1.5 billion.•In 2004 introduced their product in low priced $US 8-9 per bottle to have presence in non premium wines also.•Merger with Southcorp in 2005 benefited both the companies and created the worlds largest producer of wine generating $113 million in synergy benefits.•Fosters net profit increased by 10.5% in 2006, Revenue growth of 7% and earning growth of almost 18%.

GEOGRAPHICAL NET SALES REVENUE FROMBRANDS

Turnover and Profit

Promotions

•Ad: “STOP USING YOUR TEETH” buy a Fosters lager 12-pack & get a free bottle opener.•They also sponsors:• AFL(Australian Football League)• NRL(National Rugby League)• Horse Racing• Australian cricket•Financial support to non-profit organizations.

A conversation with Fosters wine

Who are we?

Brand Champions

Generation Next

Regional Heroes

Landmark Australia

Sub Brands

Competitors

kingfisher33%

royal challenge17%

haywards18%

kings11%

others21%

FOSTER'S GROUP LTD SWOT ANALYSIS

Strengths:

•Diversified brand and product portfolio

•Large Portfolio of Agricultural Assets

•Strong Brand Equity

Weakness

The company is not well spread in terms of geographical location. This would make it vulnerable to risk that is specific to a particular region. However its produce is sold via retail medium to in America, Europe, the middle East, Africa and Africa.

Opportunity

Innovations on new product has improved its product portfolio and allowed it to have an edge over other competitors in the industry.In 2008 the Company launched new products;Cascade Green, Carbon offset beer, re- launched Carton Premium Dry in the lower carbohydrate category. Other innovations of the company include Zero sugar ready to drink product in the Australia Market and Carlton Dry Fusion.

Geographical concentration

New product Lines

Threat

Foster's and its Subsidiary are subject to legal restrictions on advertising and marketing of alcoholic product, which could be a serious setback to the value of existing product and reduce its revenue.

Regulations restricting commercial advertising of alcoholic Products And intense competition.

Thank You…