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Saturday, May 24, 2008

Carlsberg Brewery Malaysia Berhad

3.0 Beer Industry Background

Beer is a kind of beverage which has been made favourable since the eras of B.C. Originated from Mesopotamia since 7000 B.C., ‘beers are obtained by the yeast fermentation of malted cereal grains, to which hops and water have been added’ (How Products Are Made n.d.).

Initially brewed as a family recipe beverage, beer took its wonderful industrial turning when United States of America declared its independence, in which ‘European immigrants brought their brewing skills to America and founded a thriving beer industry’ (How Products Are Made n.d.). Since then, the beer industry has blossomed into a huge market, where American breweries currently produce considerably gigantic volumes of beer barrels every year.

In the 2005 Craft Beer Industry Statistics, specifically ‘7,044,671 million barrels of craft beer was produced in the U.S. in 2005’ which is an outstanding figure which proves that the beer industry has thrived successfully among the years, particularly in Western countries in the early 1900’s (Craft Beer Industry Statistics 2005). However, alcohol consumption, particularly beer, is expanding rapidly in Asia, which particularly planted its seeds in major Asian countries such as China, Japan, Thailand and Indonesia. Surprisingly, China and Japan is rated among the top ten beer consumption countries globally in 2004, with reference to the statistics below (Beer Consumption By Country 2004).

Beer Consumption by Country (2004):






(1,000 kL)

Breakdown by


(1,000 kL)

Breakdown by


















































































Therefore, the beer industry is settling one of its wings in the Asian region, which means that apart from Japan and China, major Asian countries like Malaysia, Philippines and Thailand will be the future giants in beer consumption.

4.0Corporation & SBU Background

4.1 Carlsberg Company Background

The Carlsberg Company was founded by J.C. Jacobsen in 1947 in the city of Copenhagen, Denmark. Since then, the company had made its prestigious position in the beer industry, with breweries all over the world.

In 1883, revolution of Carlsberg took place when Emil Crhistian developed a method of propagating pure yeast, known as Saccaromyces Carlsbergensis, which allows mass production of beer possible (Carlsberg Company History 2006). Rather than holding the secret of this mass production method, Carlsberg practically gave it to the whole world, greatly expanding the market for beer in terms of consumptions and geographical market expansion.

4.1.1 Carlsberg Brewery Malaysia Berhad

Currently Carlsberg has more than 50 breweries over the world, with one of the breweries being Carlsberg Brewery Malaysia Berhad. Carlsberg Brewery Malaysia Berhad was founded in 1972 as a subsidiary of Carlsberg brewery in Copenhagen in the effect of distributing Carlsberg beer in Malaysia, thus expanding into the Malaysian Market. From 2001 to 2005, Carlsberg Brewery Malaysia Berhad can be observed to have made a good progress, with the proof a substantial increase in profit/revenue for the mentioned timeline.

REVENUE After Excise Duty (RM-Million)EARNINGS PER SHARE Pre-Tax (RM)(Source:

Currently Carlsberg Brewery Malaysia Berhad operates on several SBUs (Strategic Business Units), namely Carlsberg Green Label, Club Bottle, SKOL, Special Brew, Tetley’s, Royal Stout, Jolly Shandy and Nutrimalt. Each product unit is different from one another, and target at different market segments that satisfy different types of customers.

4.2 SBU: Carlsberg Green Label

Carlsberg Green Label has been introduced to the market since 1847 simultaneously upon the establishment of Carlsberg Brewery in Copenhagen, Denmark (Carlsberg 2006). Since then, Green Label has achieved great demand, with leading sales in virtually every nation. With its golden colour and delicate smell of hops and malt, Carlsberg Green Label is the ideal pilsner beer.

Green Label Product Specifications:

Product Description


:Pale yellow

Alcohol Content


Pack Size

:Can 320ml
Pint bottle 325ml Quart bottle 660ml
Draught 22.7 litres
Draught 30 litres


5.0 Carlsberg Green Label Situational Analysis

5.1 SBU Culture

5.1.1 Internal Environment Values

Carlsberg Green Label staffs are innovative in finding the ways, ambitious in setting targets, responsible in their actions and honest in their approach. The diverse range of race, culture, gender and age strengthens them as a company and they operate their business with responsibility for the environment and human beings. In addition, Green Label’s staffs have strong initiatives toward improving qualifications and this leads to a more stimulating and competitive workplace (Carlsberg 2006). Key Beliefs

Quality is an essential to Carlsberg’s success and this approach has always been anchored in Carlsberg since the early brewery history. With developing the art of brewery at the highest degree of perfection, Carlsberg’s beers stand to be a supreme and outstanding quality product including Carlsberg Green Label (Carlsberg 2006).

5.1.2 External Environment

Malaysia is the tenth largest alcohol consumer in the world. The consumption of alcoholic beverage including beer are majority the ethnic Chinese and Indian communities which is equivalent to 33.7% of the Malaysia’s population (Carlsberg 2006). Malaysia’s total beer sales market shows a positive inclination and possible further growth for the brewery industry. Corporate Resources: Assets

As of 31st December 2005, Carlsberg Brewery Malaysia Berhad holds about RM169 Million in non-current assets including property, plants and equipment, and also investments in associated companies. Excluding inventories and other current assets, Carlsberg Brewery holds about RM201 Million in cash and bank account balances. For shareholders funds, Carlsberg holds about RM479 million. These figures show that Carlsberg is currently able to invest substantially in developing strategies to capture more market share as well as expand the beer industry. Human Resource

The total number of staff as at 31 December 2005 was 612 compared with 622 as at 31 December 2004, quoted in F.A.Q. (Carlsberg 2006). Corporate Structure

Carlsberg Brewery Malaysia Berhad is a subsidiary of Carlsberg A/S based in Copenhagen, Denmark. The corporate structure of this major company is sourced the figure below.


5.1.3 Key Corporate Stakeholders & their respective interests

Key Corporate Stakeholders

Respective interests & expectations from Green Label

Normal Retailers (supermarket, convenient stores) & On-premise Retailers (pubs, discos, bistros, bar)

Product Price

Product quality

Market efficiency

Product continuity

Business stability & reliability

Product improvement

Product positioning

Competitors (Tiger Beer, Guinness Anchor)

Carlsberg Company actions

Product Price

Business stability & growth

Product Performance

Market Share & Market Segment

Product positioning


Taxes & Excise Duties

Implementation of activities

Security & law enforcement

Management System


Market Share

Stock price & stock exchange (KLSE)





Business Stability

Development & Advancement


Monetary rewards


Salary Hike


Reward of recognition


Product Price

Product Growth

Product stability

Product Continuity


Product Price

Product Quality

Product Reliability

Product Promotions

Product Continuity

Product Existence

5.1.4 Carlsberg Green Label’s Past Performance

1998-1999: Carlsberg Brewery Malaysia experienced a decline in the per capita consumption of 7 litres per year due to intense price competition. However, Carlsberg Green Label is leading lager brand that consist of 60% of the market share (Carlsberg 2006).

2000: According to the Malaysia brewery company market share, Carlsberg market share is approximately 50% and its leading brand is Carlsberg Green Label. Carlsberg Brewery is the leading lager brand in the year 2000.

27th Apr 2005: Carlsberg Malaysia is one of the most successful investments in the Asian region and Carlsberg has been the market leader in the lager segments for several years. This success is due to the market dominance of Carlsberg Green Label. However, the market share for the beer ‘Stout’ is also large (Carlsberg 2006).

Year 2004 – Nov 2005: Due to the increase of excise duties on beer and higher prices in the off-trade, the volumes in the Malaysian market fell (Skov & Sillemann, 2006). The sales of Carlsberg Green Label fell in line with the other market, while Skol beer earns higher sales

5.2 SBU Customers

5.2.1 Malaysian Alcohol Consumption & Prevalence

Malaysia was ranked as the tenth largest consumer of alcohol in the world with 6litres per capita consumption. Among the drinking population are the Malaysian Indians and Chinese, which consist of 33.7% of Malaysia’s population (Carlsberg 2006). In addition, Malaysians spend over US$500m on alcohol. Malaysia beer consumption consists of 11 litres per capita, which is considering high as comparable to the European countries. Despite the aggressive alcohol advertising and promotions, alcoholic drinks are easy to obtain such as coffee shops, supermarket, disco pubs, sundry shop and bistros, which drive Malaysian to drink. More teenagers are starting to take alcoholic beverages at an earlier age and 45% of Malaysian youth under 18 years old consume alcoholic beverage regularly (Global Market Share Planner: Volume 1, 2002).

5.2.2 World beer market


5.2.3 Current Market Performance

Referring to Carlsberg Annual Report 2005, Carlsberg Green Label is experiencing a decline in its sales, while Skol beer positioned itself in the value segment. Furthermore, volumes in the market declined due to the increase of 19.2% in excise duty on beer and resulting in higher prices of 32% in the off-trade.

Setting the current performance aside, the major concern for the beer market in Malaysia is the intense inclination of excise duty for alcohol beverages. The current sales tax for beer is 20%, an utterly astounding value compared to the previous years. The graph below shows the track statistic for duty on beer from the late 1900’s till 2005. The duty will be an obvious boundary for Carlsberg Green Label, which is the leading SBU in sales, to be able to progress in capturing more demand from consumers.

Beer Price per Can

RM per litre

Alcohol by volume














Sales Tax





Sales tax






5.2.4 Green Label Market Segment in Malaysia

Demographic Factors

Ethnic Group

Indians & Chinese (33.7% of Malaysia’s population)

Age Group

18 years & above

Target Group

Younger generation drinker

Natives of Sabah and Sarawak (They celebrate “Gawai”, the local rice harvest festival and getting drunk is part of their celebration)

Income Status

Low-income, middle-income, high-income


5.3 SBU Competition

5.3.1 Carlsberg Green Label’s Key Competitors

Guinness Stout (Guinness Anchor Bhd) and Tiger Beer (Asia Pacific Breweries (S) Pte Ltd) are Carlsberg Green Label’s main competitors. These two companies are ranked second and third following Carlsberg Green Label, and are considered the key competitors, as the other beer brand shares are too far different to be comparable as competition.

The following table summarizes the Malaysian beer market shares for the year 2002:

Company Share


Million litres

Leading Brand

Brand Share (%)

Carlsberg Brewery Malaysia Bhd



Carlsberg Green Label


Guinness Anchor Bhd



Guinness Stout


Asia Pacific Breweries (S) Pte Ltd





Luen Heng Agency Sdn Bhd





Spanish Cellar Sdn Bhd



San Miguel



Carlsberg Green Label Malaysia is the leading brand, and has two major competitors. The key competitors that Green Label is closely competing with are Guinness Stout (Guinness Anchor) and Tiger Beer (Asia Pacific Breweries). In 2000 in Malaysia, Guinness Stout held a market share of 20.2%, while Tiger Beer held 14.7% (Global Market Share Planner: Volume 1 2002).

Malaysians spend more than US$500million on alcohol per annum, while beer consumption is around 11 litres per capita. Guinness Stout

Guinness Stout is the leading brand of Guinness Anchor Berhad, with annual sales of 26.6 million litres and the market share of 20.2% in Malaysia (Global Market Share Planner: Volume 1 2002). Guinness Stout has also scored fourth in the ACNielsen Malaysia’s top 100 brands in 2003 (ACNielsen Reveals Malaysia’s 100 Favourite Brands for the Second Year 2003). Guinness Anchor Berhad is a joint venture between Guinness and Asia Pacific Breweries (Singapore). Guinness is a global brand, although Malaysia is currently its largest market.

Guinness marketing expenditure is reported as "less than 10%" of the company’s gross revenue. It aims to increase consumption among its existing customers, as well as expand its popularity, especially among the younger generation (Malaysia: "Marketing with a personal touch" 2003). The company’s strategies are focused on “young, exuberant, contemporary urban and semi-urban” consumers (Hong 2003). Guinness focuses on the “premium image”, instead of introducing cheaper alternatives. Its approach to growth is centred on the development of its existing brands, while upgrading or modernizing its image, rather than the introduction or acquisition of new brands. Tiger Beer

Tiger Beer is the leading brand of Asia Pacific Breweries (Singapore) Private Limited, with annual sales of 33.7 million litres and the market share of 14.7% in Malaysia (Global Market Share Planner: Volume 1 2002). Tiger Beer has also scored fifth place in the ACNielsen Malaysia’s top 100 brands in 2003 (ACNielsen Reveals Malaysia’s 100 Favourite Brands for the Second Year 2003).

Tiger Beer’s marketing strategies have been aggressive; targeting the youth market with celebrity and sports oriented promotional events. Its recent re-branding exercise has sparked interest, and the brand is now recording “double-digit” growth.

Furthermore, Tiger Beer’s recent strategic alliance with Anheuser-Busch has allowed it to gain international status. This partnership has since gained Tiger Beer distribution in the United States of America with the Anheuser-Busch distribution network (Hardy 2006).

5.3.2 Past Performance of Key Competitors

The following table summarizes the performance of Carlsberg Green Label Malaysia’s key competitors:


Market Share

Market Growth/Decline


Guinness Anchor Bhd

(Guinness Stout)


· Malaysian sales volume experienced growth of 3.2% from the year 2002 to the year 2003

· Net profit rose 9.44% to RM87.18 million from August 2005 to March 2006

Asia Pacific Breweries (S) Pte Ltd

(Tiger Beer)


· Malaysian sales volume declined by 5% from the year 2003 to the year 2004

· Profit before interest and taxation (PBIT) showed growth of 3% in 2004

5.4 Changes

5.4.1 Political Analysis

Changes in the Malaysian government policies will also affect the beer market. The rise in alcohol and tobacco taxes, namely the excise duty increase of 23.3% on the malt-liquor market (MLM), which has lead to an increase in Carlsberg Green Label’s price from RM6.00 to RM7.40 per litre (Hiew 2005). The rise in excise duty on beer and stout is also likely to lead to an increase in the volume of smuggled beer. This excise duty increase is expected to lower the volume of duty-paid beer consumption.

As at least 30% of Carlsberg’s shares are Danish-owned, the political tension in Denmark could also affect the microenvironment of the company.

5.4.2 Economic Analysis

Disposable income is predicted to be moderate at around 4.5% throughout 2006 (Yusoff 2004). This trend is expected to lead to a higher propensity to consume, which will bode well for entertainment sectors, such as alcoholic beverages.

However, there is also some speculation that the malt-liquor market (MLM) in Malaysia is expected to decrease by 10% in 2006 (Hiew 2005).

Companies with expected returns of more than RM200 billion are expected to declare higher dividends per share (DPS). As such, Carlsberg is among the companies expected to declare higher dividends to satisfy its shareholders (Yeow 2006).

5.4.3 Social Analysis

Approximately 62% of the Malaysian population is currently under the age of 30 (Yeoh 2003). This factor is expected to lead to an increase the consumption of beer, as 45% Malaysian youths under the age of 18 years are known to consume alcohol regularly (Asunta 2003).

There are also several notable changes in the female beer market. There is an increase in the number of Malaysian females who consume alcohol regularly (Asunta 2003). The female consumers’ preferences have also shifted from wine and spirits to beer.

The increasing drug consumption, especially “Ecstasy” or MDMA has greatly impacted the beer market. Is has been shown that the consumption of the drugs has an inverse relationship with the volume of beer consumed (Youth, Alcohol, and the Emergence of the Post-Modern Alcohol Order 2002). As such, the increase in the number of drug users in Malaysia, particularly Ecstasy users, has lead to a decrease the volume of beer consumed.

5.4.3 Technology Analysis

More advanced technology, or developments in the beer brewing processes in the future will lead to cheaper and more efficient production. For example, the advancement in information and communication technology has helped Carlsberg raise productivity and efficiency to cope with the demand for its products.

6.0 SWOT Analysis

6.1 Strengths

  • Investing in ICT (Information & communication on technology) to raise productivity & efficiency to cope with demand for its products.
  • More intense current brand positioning compared to other beer brands.
  • Current market shares in the Malaysian beer industry the highest (52%).

6.2 Weaknesses

  • One of Carlsberg Green Label’s key competitors, Tiger Beer, has recently launched a new advertising campaign with celebrity events and endorsements, along with its new logo.
  • Guinness Stout is slowly but steadily catching up with Carlsberg in terms of campaigns and brand image.
  • The Carlsberg Company does not efficiently place its optimum level of emphasis on its SBUs. There is wastage of resources.

6.3 Opportunities

  • Malt prices and other material costs for beer are cheaper due to the strengthening currency of the Malaysian Ringgit (RM).
  • Increasing trend of entertainment lifestyle in Malaysia, especially alcohol that induce alcohol consumption.
  • More sponsorship proposed by non-competing organizations, which induces brand-positioning opportunities.

6.4 Threats

  • Rise in alcohol and tobacco tax in Malaysia. The increase in price would lead to decrease in sales volume, especially concerning the loss legitimate sales in favour of smuggled beer.
  • Malaysian companies with the expected returns of more than RM200 billion are to declare higher dividends. Carlsberg Malaysia is among the companies anticipated to declare higher dividends.
  • The majority of the shares of Carlsberg Malaysia are Dutch owned, and the political situation in Denmark is currently tense. This will indirectly affect Carlsberg Malaysia to some extent.
  • The Malaysian government ban on advertising in media, including the internet, will affect Carlsberg.

7.0 SBU Objectives and Goals

7.1 Assumptions

  • The legal constitutions and regulations of beer licensing and permit remain the same for the next 5 years.
  • The advertisement regulations will remain the same for the next 5 years.
  • Trend of life enjoyment lifestyle in Malaysia remains for the next 5 years.
  • Excise duty will remain constant or just slight change for the next 5 years.
  • Beer smuggling activity either decreases or does not increase for the next 5 years.
  • Carlsberg Green Label free from any lawsuit on negligence of quality control.

Based on the assumptions related to the beer industry in Malaysia for the next 5 years, the team has proposed on several strategic marketing objectives to increase the sales of the Carlsberg Green Label.

7.2 Objectives

  • Maintain the Carlsberg Green Label lead in the market share for the next 5 years.
  • Capture back the largest possible volume of smuggled beer, converting the purchasing of smuggled beer to purchase of Carlsberg Green Label for the next 5 years.
  • Develop alternative advertising strategies for Carlsberg Green Label.
  • Intensify product positioning to overcome the effects of competitors’ positioning activities.
  • Enhance the reputation of Carlsberg as a global provider of enjoyment over the next 5 years.

8.0 Recommended Strategies

The following table summarizes the current strategies practiced by Carlsberg Green Label:


Currently Practiced Strategies


  • Scope
  • Commitment

  • Multi-market approach
  • Average commitment


  • Positioning

  • Sponsorship of banners and logo placements
  • Sponsorship of sporting events


  • Positioning

  • One-price strategy


  • Scope

§ Intensive distribution

Marketing Communication

§ Positioning

§ Indirect positioning and logo placement

8.1 Market Strategies

8.1.1 Current Market Strategies Market Scope: Multi Market

Carlsberg produces a wide range of beer varieties, from light to mid and full strength beers, to cater to different market segments. Besides premium beers or lagers, Carlsberg also produces lower-priced beers like Skol, to suit different target markets.

The SBU, Carlsberg Green Label, is currently employing a multi-market scope approach in its market strategies. This is because while it actively is targeting younger consumers, it is also seeking to retain its current customers, which are older. In other words, Carlsberg Green Label is currently targeting a number of the most attractive segments, as the product is not centred or focused on a specific and exclusive target market or segment. Market Commitment: Average Commitment

The SBU, Carlsberg Green Label, is observed to be currently bearing average commitment to the market. The level of commitment is judged based on the company’s or the SBU’s level of defensiveness of its current position in the market. As such, the average commitment of Carlsberg Green Label can be noted by the gains in its key competitors’ market shares in recent years.

8.1.2 Proposed Market Strategies Market Scope: Retain Multi Market Approach

The strategy for Carlsberg Green Label to maintain its multi market approach is observed to be appropriate because Green Label has appeal to a wider audience than can be catered to than by focusing on a single market segment. Furthermore, it would not be wise for Carlsberg Green Label to cater to a specific market segment, as it would negatively affect its market share drastically.

This decrease in market share for Carlsberg Green Label, would possibly lead to a great competitive advantage to its competitors. Market Commitment: Strong Commitment

The team has proposed for Carlsberg Green Label stake a more aggressive approach, instead of the average commitment currently observed. Green Label should bear a strong commitment to the market, in order to effectively defend its position against its key competitors’, which have been recently gaining increasing market share.

8.2 Product Strategies

8.2.1 Current Product Strategies

Carlsberg Green Label’s currently practised product-positioning strategies are as follows:

§ Sponsoring of neon-light banners for business outlets throughout Malaysia. Example: Neon-light banners of restaurants, pubs and coffee shops.

§ Sponsoring the promotion football campaign, which includes contests & prize redemption, running from 10th April to 31st July of 2006.

§ Sponsoring the Loh Seng Kok Cup Basketball competition at Bandar Sunway, Kuala Lumpur, on 9th April 2006.

Current Market Perception on Carlsberg (Brand Positioning to Quality)

Brand Positioning



8.2.2 Proposed Product Strategies Product Repositioning

The team has proposed Carlsberg to co-brand with major global cigarette companies, namely Dunhill and Malboro. Practically, Carlsberg is recommended to sponsor the cost of packaging of Dunhill and Malboro cigarettes, which in turn brand the Carlsberg logo on each Dunhill and Malboro packaging. Since Green Label is perceived as having great resemblance to the actual Carlsberg logo, it is justified to have a very probable effect on the positioning of Carlsberg. Product Repositioning: Justification

According to the Canadian Social Trends Backgrounder research (See Appendix), it was concluded that young smokers tend to induced more into becoming a drinker, therefore a frequent alcohol consumer, compared to non-smokers. Based on this fact, the team has grasped the opportunity to position the Carlsberg brand with cigarette packages to effectively position the Carlsberg beer brand into the minds of young smokers. More quotes from trusted sources have been provided to uphold this statistic.

"Nearly all alcoholics, recovered or otherwise, are heavy smokers." (Cain 1964, p. 4)

“In almost every case adults who have problems with alcohol are cigarette smokers." (Tennant 1981, p. 1)

"Smoking prevalence among active alcoholics approaches 90%." (Hayes et. al. 1996, p. 135)

Perceptual Map after Repositioning (Co-branding with major cigarette brands)
 Value-Marketing Strategy in Quality

The team has proposed Carlsberg to promote the quality of Carlsberg Green Label more effectively to the Malaysian market, hence improving or maintaining the current quality of the brewed beer. Research & development on the current taste preference is recommended to assess the quality expectations of beer in the Malaysian market.

8.3 Pricing Strategies

8.3.1 Current Product Strategies One-Price Strategy

Carlsberg Green label are sold at the same price to all customers who purchase them under the same conditions and in the same quantities. The benefit of this price strategy is that it makes pricing process easier and is administrative convenience. In addition, Carlsberg Green Labels customers will not feel unfairness or bias over another customer because of special pricing issue. This pricing strategy enables Carlsberg Green Label to maintain goodwill among their customers. However, there are disadvantages too. Carlsberg Green label’s competitors may undercut the price and total inflexibility in price, which may bring adverse effects on corporate growth, and profit in certain situation.

Currently, Malaysian government increase excise duties on all beers, which result price in a relatively high level compared with other imported hard liquor products. The situation was also worsened with the continued availability of low prices imported beer and the smuggled beer in Malaysia. However, Carlsberg Brewery Malaysia said, “Market competition is expected to remain at high levels in the foreseeable future. The group will continue its efforts to maintain and expand its market leadership for the beer segment and to increase its market share in the stout segment” (Carlsberg 1Q net profit surges to RM32m 2006).

8.3.2 Proposed Product Strategies Maintaining the Price

The strategy for Carlsberg Green Label to maintain its price is most appropriate because Green Label has high-elasticity demand. Any increase in price will affect the consumption for Green Label beer. Furthermore, it’s not wise for Carlsberg Green Label to increase or reduce its price because the beer price in Malaysia is relatively high due to increased excise duties and the concern for smuggled beer. Maintaining the price may also be appropriate because price change may affect the image for Carlsberg Green Label, which may lead to handing over competitive advantage to the competitors.

8.4 Distribution Strategies

8.4.1 Current Distribution Strategies

Distribution-Scope: Intensive Distribution

  • Currently Carlsberg Green Label is intensively distributed to virtually every convenient retail outlets in Malaysia. Example: All supermarkets, coffee shops, sundry shops, convenient stores like 7-11.
  • Carlsberg Green Label is also a licensed product for distribution in every single night entertainment outlets in Malaysia. Example: Pubs, discos, karaoke lounges, and clubs.

8.4.2 Proposed Distribution Strategies Channel Modification

For distribution, the team has proposed channel-modification strategy, practically integrating a new form of distribution for Carlsberg Green Label in Malaysia. Carlsberg is recommended to adopt a new channel of distribution by setting up a major sized bar capable of accommodating large volumes of consumer at the same time. Utilizing the brand name ‘Carlsberg’ itself, the bar will be a major attraction due to its fresh style of distribution in Malaysia, following the current trend of beer distribution in countries such as Thailand and Philippines. Channel Modification Justification

The aim for this channel modification strategy is to emphasize the true enjoyment of consuming the true Carlsberg Green Label in a on-premise outlet of Carlsberg itself. This is specifically target at beer consumers who frequently purchase smuggled beer. Therefore, the team is hoping to capture back the share of smuggled beer by creating awareness on consuming the original Carlsberg Green Label on-premise.

8.5 Communication Strategies

8.5.1 Current Communication Strategies

Carlsberg Green Label is currently under average promotion. Due to the ban on active advertising of alcoholic drinks in the media, Carlsberg Green Label has been relying heavily on other forms of indirect promotion. The integrated marketing communication strategies currently used by Green Label include promotion through logo placements such as by:

  • Sponsorship of events, such as local basketball competitions
  • Sponsorship promotional football campaigns, in which the Carlsberg logo is displayed prominently
  • Sponsorship of banners and signage at coffee shops

8.5.2 Proposed Communication Strategies

It is proposed that Carlsberg Green Label continue and upgrade its current indirect promotional strategies, such as logo placement and sponsorships, while maintaining a specific and consistent theme throughout the campaign. The communication strategies should be centred on the promotion of Green Label as a lifestyle choice, not as a product. This is in line with Carlsberg Malaysia’s ongoing marketing communication strategies. As stated by Carlsberg Malaysia's advertising executive, Raymond Choong, the brand was initially marketed as "a person rather than a product” (Asunta 2003). The overall marketing communications strategies should serve to reinforce inherent brand values, and bolster and gain customer loyalty to Carlsberg Green Label.

9.0 Implementation Program

9.1 Specific Activities

From all of the appropriate strategies above, the team has therefore planned an implementation schedule from July 2006 to December 2007. The objective of this implementation schedule is to effectively take action in enhancing Carlsberg’s strengths and opportunities in maintaining the market lead for Carlsberg Green Label, as well as minimizing weaknesses by running specific activities.

The activities which will be included in the implementation plan are:

  • Application of setting up a major bar under the Carlsberg name from the Malaysian government.
  • Start with the construction of the major bar.
  • Proposing the co-branding plan to two major cigarette companies, namely Dunhill and Malboro.
  • Nationwide customer survey on the most important attribute that determine brand selection. This is to be done through a lucky draw contest for contestants who complete the survey.
  • Research and Development on the quality that Carlsberg Green Label currently offers, and the quality that Carlsberg will be expected to offer in the future.
  • Anti-Smuggle campaign to discourage people from buying smuggled beer. This campaign will be promoted through the television and radio media.

9.2 Monitoring

It is vital for Carlsberg to monitor the progress of the implemented action plan from period to period. This is to ensure that the activities of the plan is progressing at the right track, and providing true effectiveness. The team has proposed Carlsberg to consult human resources department in adding manpower to monitor the implementation plan by the following methods:

  • Keep track of the media releases on Carlsberg Brewery Malaysia and the beer market. This is a very good way of monitoring the activities’ effectiveness.
  • Reviewing short-term sales revenue to determine whether the effect of the plan has implications on sales.
  • Reviewing Carlsberg index on the Kuala Lumpur Stock Exchange in performance to estimated the rise or drop in Carlsberg reputation.
  • Keeping track of the activities involving beer smuggling through governmental connections.

9.3 Timeline for year 2006/2007

  • Application of setting up a major bar under the Carlsberg name from the Malaysian government.
  • Start with the construction of the major bar.
  • Proposing the co-branding plan to two major cigarette companies, namely Dunhill and Malboro.
  • Nationwide customer survey on the most important attribute that determine brand selection. This is to be done through a lucky draw contest for contestants who complete the survey.
  • Research and Development on the quality that Carlsberg Green Label currently offers, and the quality that Carlsberg will be expected to offer in the future.
  • Anti-Smuggle campaign to discourage people from buying smuggled beer. This campaign will be promoted through the television and radio media from time to time.