Virksomhedsanalyse af Carlsberg

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Carlsberg.

Carlsberg A/S is a Danish brewery company, founded in 1847 by J.C. Jacobsen. Carlsberg is one of

the top brewery brands with breweries in more than 50 countries. Carlsberg is represented in more than 150 countries worldwide. In Denmark they own they subsidiary Danish Malting group, which is the biggest Danish Maltery it’s located in Ørslev near Vordingborg and was established in 1996.

Carlsberg A/S is well represented in both Scandinavia and Western Europe. Also in Russia they

have more than 38% of the share. Carlsberg is on the top 5 most selling breweries worldwide.

Their biggest competition on the international market is the Dutch brewery company Heineken. In

2008, Carlsberg bought out the English competition Scottish & Newcastle with a finale outcome of

106 billion DKK.

Carlsberg has more than 45,000 employees. Carlsberg’s is sold in more than 150 countries. In Denmark the staff is 2,000 employees.

Most people think about beers when they think about Carlsberg. They’re are mostly known for their beer it’s one the most sold products in Denmark. In Denmark the market of beers and alcohol is very large, compared to the size of the population. The Danes are known for their beer drinking.

Carlsberg were one of the first breweries in Denmark, and they are now in a leading position of beers in Denmark.

Carlsberg is a very expensive beer compared to other brands like “Dansk Pilsner”. Carlsberg is more than 3 times as expensive as one of the cheep beers. Despite of what most people say they can’t taste any difference from other beers, but people choose Carlsberg because it’s more exclusive. In some stores in Denmark you can only find Carlsberg as a Danish brand.

Carlsberg continues to conquer new markets with new products. The newest example of that is the Carlsberg Somersby alcoholic cider, with pear and apple. Somersby quickly became a big competition to the big brand Cult on the market, of Alco pops.

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The history of Carlsberg

The Carlsberg Company was founded in 1847 by J.C Jacobsen. He named the company Carlsberg after his son (Carl Jacobsen) and the Old Danish word for Hill “Berg”, its location became “Valby bakke” which is a hill in Copenhagen.

J.C. Jacobsen got inspired by the Bavarian beer, which was different from the beer type the Danes drank until the middle of the 19th century.

The reason why J.C. Jacobsen chose to place the brewery in Valby, was that it should be able to deliver beer to the citizens of Copenhagen.

Because of the bad environment and lack of space in Copenhagen, J.C Jacobsen was forced to ask the king of Denmark permission to locate the brewery in Valby and not in Copenhagen, which he was permitted.

It didn’t take Carlsberg many years to become successful, and already in 1868 Carlsberg exported their first bottle of beer. The quality of the beers was very important for J.C Jacobsen, therefore he established the Carlsberg laboratory in 1875. The scientist Emil Christian Hansen became chief of the laboratory, and he was a big part in the search to comprehend the beers chemistry.

The brewer's yeast got named Saccharomyces Carlsbergensis and the method got donated to other breweries, and it is still the Saccharomyces Carlsbergensis the breweries around the world use brewing lager beers.

J.C Jacobsen’s boy Carl Jacobsen also came into the brewery business and in 1871 he got the permission to rent his father’s newly built “Anneksbryggeriet”, which was also located on the same spot in Valby as Carlsberg brewery. Dad and son didn’t however agree on the question on the beer quality. J.C Jacobsen thought that they shouldn’t reduce on the beers storage time, while his son Carl exactly would do that, to contradict the large demand of beer. In 1880 terminated J.C Jacobsen his sons lease and could extend his own production considerable. Carl there already was become wealthy, started instead the brewery “Ny Carlsberg” beside of the two other breweries. The relationship between J.C and Carl Jacobsen wasn’t always good, and the two Carlsberg breweries was first united in 1925, 19 years after J.C Jacobsen’s death (1906).

In the start of the 20 century Carlsberg became more and more international, and particular the years after World War 2 began Carlsberg to outsource the production. In 1970 Carlsberg bought

“De Forenede Bryggerier” (better known as “Tuborg”) the second most famous brewery in

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Denmark. But already in 1903 Carlsberg and Tuborg makes an agreement on working together, and splitting the surplus every year. (Carlsberg bought out Tuborg in 1970). In 1904 Carlsberg became official royal deliver of the Danish court, and the royal Bindeboells label became part of the future brand of Carlsberg. A company becomes official royal deliver of the Danish court when it has served the court for 25 years. Company culture: The” spirit” in the big companies have in the workers own minds been special in their company. But people have been talking about a special culture and pride in the Carlsberg Company, this perception had especially two sources. 1) That the company was owned by a fund, in theory by the people and that you worked for the nation. 2) Was that the brewery workers where a proud group of people that didn’t work in a factory, but in a brewery.

The many conflicts with the management haven’t been in the way of the employees work morale, and they thought that it was a good place to work, and they felt it was better than Tuborg even though the working conditions in some areas, was better at the Tuborg brewery.

After the fusion with Tuborg in 1970 the workers from the Tuborg brewery was assigned by the Carlsberg Company, and the rumours started about much rivalry between the two groups.

In 2008 Carlsberg moved their production to Frederica, and aren’t brewing in Valby more, except

“Husbryggeriet Jacobsen of 2008” on the historical place in Valby.

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Marketing/Promotion

Focus. Way. Goal.

Carlsberg use the sale concept in their marketing, where in order to sell products you need good promotion.

The product is in focus, meaning that the quality of the products is in focus.

The way Carlsberg reaches their goal – surplus – is by aggressive promotion in form of advertising, sponsorships ect. This concept is also used by another successful company, the Coca-Cola Company.

The idea of this concept/strategy is to make the brand into a noticeable item for the costumers, so

when they see the product they know the difference between Carlsberg and X competition. In order to be different from the competitions Carlsberg have chosen to invest in big sponsorships, and a lot of advertising, but not only that they are also known as a quality brewery. You can say that Carlsberg has accomplished to be a quality product with a big target group.

Out of the 4 P´s (Product, Place, Price and Promotion) Promotion is the biggest in the Carlsberg brewery strategy.

Carlsberg are mostly known for their beer, where they own 2 major brands, Carlsberg and Tuborg.

Those two brands are divided in two different sponsor groups, where Carlsberg is the beer that does something for the sport, as they are sponsor for the big Danish soccer team FCK Copenhagen and other sport events. Tuborg are doing something for the music in form of being the official sponsor of Roskilde Festival – Europe’s biggest music festival –. Tuborg is the only beer available to buy on the festival. One year on Roskilde, Tuborg sold 1.8 million beers on the camping area, that’s about

24 beers a person.

Products Promotion Surplus

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But Carlsberg are also successful in their other products, for example the Somersby alcoholic cider that after only 1½ year on the market already are selling as much as the competition Cult Shaker. Or the Carlsberg Sport that with a commercial of a squeal playing soccer with a nut, raised the knowledge of Carlsberg Sport among the population with 80% and 95% in the target group.

The newest campaign is a penguin playing ping-pong with the Danish ping pong champion Michael Maze.

Organization

Carlsberg Denmark is divided into six divisions:

Supply chain

Logistics

Sale and marketing

Economi

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Human relations

Communication

Carlsberg DK. has 7 people in the leader group. Starting from the top is Jesper B. Jørgensen who is CEO of Carlsberg Denmark. Jørgen Andersen who is in charge of the Economy.

Thomas Kolber in charge of human resources. Bjarke Roost in charge of Logistics. Erik Juul Rasmussen in charge of The supply chain (production). Carsten L. Thomsen in sale and marketing.

Not only does Carlsberg Denmark produce their own products such as, Carlsberg beer, Carlsberg sport, Somersby cider, Tuborg beer ect. They also produce all Coca-Cola company products and distribute them in Denmark. They also distribute special beer and mineral water. They are by far the biggest company in beer and soda on the Danish market.

Carlsberg Denmark also has two daughter companies and another division. First there is Saltum- Neptun which tabs mineral water. Then they have factory of beer that import and distribute foreign special beer. Last the division Wibroe which sells and distributes their own Wibroe products.

Value Chain

1) Developing product:

Carlsberg is in competition on an almost only “taste market”, and therefore there is not many things they can improve regarding to their product, beside the look and the containment. Ex.

(No sugar)

2) Manufacturing product:

Carlsberg beer is only produced by Carlsberg in Frederica, where Carlsberg also produces Coca- Cola. All beer bottles leaving the factory are perfect; the only thing the customer must worry about is to keep it that way, in order to receive the mortgages. With Carlsberg’s new location they will always be able to produce enough as required by the shops and customers

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3) Marketing Product

Carlsberg is one of the biggest breweries in the world and are therefore competing on marketing. Carlsberg is known as a medium priced beer but high quality and great taste; witch brings value to their customers.

4) Sale and distribution product

Carlsberg is available in all kiosks, supermarkets and gas stations in the DK. This is a great service for the individually customer, since Carlsberg is available everywhere in the country.

There is not much to know regarding Carlsberg beer, and the personal does therefore not need to know more than it’s Danish and contains alcohol.

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SWOT-Analysis

Strengths:

More than 150 years of experience. Many commercials. A high quality/exclusive beer. Big selection

of goods.

Expensive beer defines Carlsberg’s target group. Number 1 in Europe.

Weaknesses:

Compared to the old location its new position isn’t as attractive. Not everybody can afford their beer.

Opportunities:

Many new markets for Carlsberg to sell to. New Somersby (pear cider). Youngsters in Denmark keep drinking more and more. And the age of children drinking, has dropped much over the last few years

Threats:

Carlsberg is affected of the world financial crises like every other company in the world, and therefore their results in the fourth quarter dropped with 1, 2 billion DKK.

You have to be over the age of 16 to buy alcohol in stores, and in clubs you have to be above 18.

Small and big breweries competing with Carlsberg within DK.

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Boston-Analysis

Market Star Question mark

Growth.

20%

10% Cash-Cow Dog

0%

10X 5X 1X 0,5X 0,1X

Relative market share.

Carlsber g Beer.

Carlsbe rg Sport

Som mer sby

Carlsbe rg Light

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From the limited information we have about Carlsbergs market growth and market share, placement of the SBU’s are estimated.

The question mark Represents the product “Carlsberg Sport”. Carlsberg sport is growing by the minute so it is soon to be a star, but there is still a very big competition on that market “Faxe Kondi”. And that is the reason that Carlsberg sport had difficulty taking over the market share.

The Star Represents the Somersby alcoholic cider, it’s the newest product Carlsberg has launched, but it’s already in tight competition with the Cult shaker. One of the reasons is also that there aren’t any other alcoholic cider products on the Danish market.

The Cash Cow Represents the oldest of Carlsberg’s products, beer. The Carlsberg/Tuborg beer is

the biggest fish on the market. It’s also what Carlsberg are mostly known for. Carlsberg beer needs almost no promotion.

The Dog Represents the Carlsberg Light. Carlsberg Light is a beer with less fat, but still the same amount of alcohol.

Carlsberg Light never really found its way into the heart of the Danes, and that’s why it’s placed in the Dog.

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General Electric-Analysis

Carlsberg Beer is well represented on the Danish brewery market. It’s a brand the normal Dane knows. The Market is very large, but with all the new micro breweries their market share is falling, just like their Business strength.

Carlsberg Sport is a very new Brand but it seems to be a very good project. Their market share is

50% more than expected, but there is still a long way to the top where “Faxe Kondi” is with their marked share on 60%. The Market is still growing, and thats good for Carlsberg with their position.

Carlsberg promotes the Carlsberg Light very much. Theres not a big market for it, but they try to sell the brand as “the new product to the real men,” but it seems “the real men” wants the original Carlsberg beer, and therefore it’s not working.

Carlsberg Somersby has been promoted very aggressive from the start, and this seems to be the new drink for the teenagers. In March 2009 they introduced their new Somersby Pear Cider. It’s a market that is still growing, and like it’s written in the Boston model it’s already a big competition to products like Cult Shaker, Smirnoff Ice Etc.

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PLC Curve

Introduction:

After having looked at Carlsberg SBU's we got to the conclusion that Carlsberg haven’t any SBU's in the Intro phase, because they haven’t recently developed new products.

Growth:

We have come to that conclusion that Carlsberg has two product groups (SBU's) in growth phase.

This applies Somersby, which is an apple and pear cider with approx. same alcohol content as a beer. We have decided that Somersby must be in the growth stage, because the SBU still is relatively new, but at the same time are there many Danes who are drinking it because of heavy promotion by Carlsberg. We believe however that Somersby quietly are moving into the maturity

phase, as it is about everyone who buys/drink it.

Besides Somersby we think that Carlsberg Sport lies in the growth stage as it due to intense marketing of Carlsberg, is sold more and more. But it is still only a minor percent of the Danes who buys it, so we believe that it is in the "beginning" of the growth phase.

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Maturity:

We believe that Carlsberg has one SBU in the maturity phase; we think that Carlsberg and Tuborg’s beer are located in the maturity stage. Carlsberg and Tuborg’s beers are clearly the most famous beer in Denmark, and have many fans around the country. And since the people in Denmark always will drink beer, we believe that it is in maturity phase.

Decline:

We believe that Carlsberg has one product in the decline phase. and that is Carlsberg Klidevæld which is water. We believe that it is located there because there are many customers who know the product. However, because of the price some customers might select another product which is cheaper, and when the stores might take Klidevæld out of the assortment.