Competitive intelligence: a study examining the profitability and strategy of the competitors of Royal Grolsch in the Dutch beer market.

Kreuzen, Judith (2010) Competitive intelligence: a study examining the profitability and strategy of the competitors of Royal Grolsch in the Dutch beer market.

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Abstract:This research is performed for Royal Grolsch, the second largest brewery in the Netherlands. The beer market in the Netherlands is becoming more competitive with only 4 large breweries and a lot of small breweries. In this research we will focus on the competitors of Grolsch which are Heineken, AB Inbev and Bavaria. Because of increasing competitiveness, it is necessary for Grolsch to know with which products (and volumes) competitors earn the most money to better understand why the competition is focusing on specific products with their marketing strategies. The main questions in this research are: On which products and consumer segments does the competition of Grolsch focus and earn most profit? How will this (the focus of competition on products and consumer segments) change in the future? How does this impact Grolsch? Revenue management is applicable in the beer industry, especially price based revenue management. Discounts are a tool for breweries to influence their prices. Discounts thus need to be taken into account in the profit and loss account and can be seen as the main instrument of breweries to influence their prices and thus profitability. For every brewery a profit and loss account (P&L) is constructed based on information of Grolsch and assumptions to adjust the information. The total brewery P&Ls are compared together and with Grolsch. Besides the total brewery P&L, product P&Ls are constructed for the four most important products per brand: returnable bottle 25/30 cl, can 33 cl, can 50 cl and the non returnable bottle 25 cl. Also the product P&Ls are compared with Grolsch. Then the marketing strategy of the competitors is examined by using a segmentation model based on the consumption moment of each brand.
Item Type:Essay (Bachelor)
Clients:
Royal Grolsch B.V.
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Industrial Engineering and Management BSc (56994)
Link to this item:http://purl.utwente.nl/essays/60804
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