Marketing Plan CERVEZA Club

3.0 SITUATION ANALYSIS

3.1 Company Analysis

Company Structured:

Club Beer is a product owned by Cervezería Nacional a private company that was founded in 1887. The company was first founded under the name of Guayaquil Lager Beer Brewery Association, working initially as a brewery and ice.

National Brewery is a subsidiary of SABMiller PLC from 2005. SABMiller is one of the largest brewers in the world with interests and distribution agreement in more than 60 countries throughout six continents. SABMiller operates in Latin America in Honduras, El Salvador, Colombia, Peru, Ecuador and Panama. It has 18 breweries with a production capacity of 44.8 million hectoliters of beer and juices. In Ecuador, National Brewery has two plants located in Quito and Guayaquil dedicated to the development and marketing of beer and table waters. Production capacity exceeds 4,000,000 hectoliters annually.

CN Cerveceria Nacional SA is the lead brewer company in Ecuador. A total of 1,129 people are part of the group of distinguished CN shareholders, whose main shareholder owns SABMiller since 2005.

CN's Corporate Governance is made by the directory of shareholders; by the CEO (chief executive officer), Mr. Carlos H. Fernandez and the Vice Finance, Corporate Affairs, Manufacturing, Sales, Human Resources, Distribution, Marketing and Supply Chain.

CN has a great reputation in Ecuador due to its transparent and ethical way to act, whose career has always been law-abiding and faithful in fulfilling all its obligations to the state, making it a major engine growth and employment.

The Business Model CN is based on market development to meet the needs of its customers, potentiate the capabilities of its employees, generate revenue and enhance its reputation.

Industry Analysis.

CN Cerveceria Nacional SA It offers an extensive portfolio of moderation and soft drinks, which are produced under strict international standards, in order to provide its customers with products which have a delicious taste and excellent quality.

CN belongs to the brewery industry of Ecuador, which is composed of two major competitors: CN and Ambev.

The brewery industry directly represents 2000 seats and 1800 indirect jobs. It has no union, as local practice very common in Ecuador.

Revenues in the past 3 years:

The total revenues for the company for the past three years is 1.128,00 millions of dollars.

Portfolio of Products:

Product Features

Pilsener Pilsner lager has a fine bitter taste and pronounced aroma of the best hops. Pilsener is the bestselling and preferred by Ecuadorian beer. Alcohol content of 4.2 °.

Pilsener Light Pilsner lager, soft, light, different and nice to enjoy anywhere flavor. Alcohol 3.38 °.

Club Premium Premium Club is developed through a careful process using noble hops and barley selected in order to offer distinguished taste and aroma. Alcohol 4.4 °

Club Red Premium

(Limited Edition) Adds distinction to your special moments. Its reddish color, delicate aroma and distinctive flavor, is ideal for the most demanding palates. Alcohol 4.8 °.

Black Premium Club

(Limited Edition) Notable roasted black tone. Selected fine and specialty malts and natural inputs. Denser thanks to more malt body. Elegant taste, fine aroma and exquisite in highlighting its noble hops. Alcohol 5 °.

Miller Genuine Draft It is made from the revolutionary process of quadruple cold filtration, which removes the need to heat pasteurization, maintaining the genuine, smooth and refreshing taste of draft beer. Alcohol content of 4.7 °.

Miller Lite Lager beer, made with a unique process of centrifugation, filtration and twice using three different hops in its preparation. 4.2 Alcohol.

Dorada Lager, long dwell time with a very mild and moderate bitterness. Alcohol content of 4.0 °.

Fuente: Cervezería Nacional.

Organizational Structure of the Company

Graphic 3.1. Organizational Structure of CN.

In the graphic we can see that each vice department represents a functional unit. But in the case of the Supply Chain Planning department we can notice that it is an autonomous department.

The Supply Chain Planning department is the main central of planning of the company. This planning is done at three levels: operational, tactical and strategic.

In turn the blocks in which planning is divided CN are: Demand, Supply (Primary Production and Distribution) and Materials. For all levels of planning are taken into account each of the above blocks.

Patents of CN

• In 1913 CN registers the patent brewery beer Pilsen type under the name of PILSENER.

• CCN patented in 1966 and launched the Beer Club.

• In the nineties a transformation arises in the company, after making a study of the tastes and preferences of the consumers, CN launched Club canned beer, also the CLUB brand is created and the company presented “Pony Malta” to the nutritional drink market. While these changes were made in 1995, the company invested in the creation of a modern bottling line known as Super-Line with capacity for 100,000 bottles of 578ml per hour.

Domestic Market Position.

Club is the first premium beer Ecuador, produced and distributed by Cervecería Nacional -Ecuadorians biggest companies-. Club Premium beer has remained between two leading brands along their history, and it has always been directed a top segment.

In 2007, after being already a brand of the South African company SAB Miller Beer Club renewed its image in line with its positioning of Premium Beer, keeping its promise to be a beer that takes care of the smallest detail and to be the only brand in the Ecuadorian market with export quality.

Direct and Indirect Competition.

According to information provided by the marketing department Ecuador National Brewery, the beer market is very competitive in the country, currently the company Ambev, is the company who entered the Ecuadorian market in 2004 with its products and Brama Zenda, settling in the closest competitor to the Brewery National. (CN 2013).

3.2 Organization’s Assets and Skills

3.2.1 Creation and brand strategy

CLUB PREMIUM is the first Premium beer from Ecuador, produced and distributed by Cervecería Nacional. Since its introduction, there have been changes and additions to maintain constantly renewing its image.

The history of beer CLUB PREMIUM began in 1966. After continuing studies in the Ecuadorian market, CN decided to create a beer with different and distinct flavor. To that end, CN hired Walter Schneider brewer German- Teacher development director and responsible for the creation of a formula that meets the parameters required: A European style premium beer.

Finally, Schneider CLUB PREMIUM product created as a type Lager beer.

The brand for its quality and attributes has received important international awards: Gold Medal for Quality in 1966, Superior Taste Award 2007, 2011 and 2009 Monde Selection, 2011. The brand relaunch was conducted in 2007.

3.2.2 Brand attributes

Leader in its segment: CLUB PREMIUM is the first beer "premium" produced in Ecuador in one of the largest companies in the country: Cervecería Nacional. Thanks to this support and the quality of its components has remained as one of the leading beer in its category and aimed at a top segment.

International quality: The care and passion for details has led CLUB Premium to be recognized for their quality, obtaining the Quality Award in Brussels (1966) and twice the Superior Taste Award in Brussels (2007 and 2011) and the Gold Medal the Monde Selection in Belgium (2009 and 2011). And this year it joined the Marketing Hall of Fame of Ecuador.

Trajectory: It is the first and only premium beer from Ecuador that celebrates 45 years of career, remaining among one of the first brands in the Ecuadorian market.

3.2.3 Marketing Strategies.

3.2.3.1 Image Re-Launch.

In 2007 the renovation of the visual identity was made. The new look and feel is used to highlight the intrinsic and extrinsic values of the brand. It was made in the major cities, which was attended

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