Cervecería Nacional Marketing Analysis

Cervecería Nacional Marketing Analysis

COMPANY DESCRIPTION

First of all, the Cerveceria Nacional is a subsidiary of the multinational SABMiller (South African Breweries) PLC from 2005. . It has agreements and distributes among over 60 countries. In Latin America it operates in Ecuador, El Salvador, Colombia, Peru, Ecuador and Panama, with 18 breweries with a production capacity of 4 million of hectoliters annually. It has product mix by producing and selling beers (Pilsener, Miller and Club), root beers (Pony Malta) and drinking water (Agua Manantial). Also, their major product line is beers.

HISTORY

In 1887, in Guayaquil, “Cervecería Nacional” (CN), began to offer their products to the Ecuadorian market. They saw an opportunity in the brewery industry since people were only consuming imported beer at that time. They had their first industrial plant in 1910 in Guayaquil. In 1913 they got the patent of the well-known beer “Pilsener”. In 1924 they had the first luxury ad using colors, not just black and white. In 1966 Miss Universe came to Ecuador to try a new beer, introduced by CN “Club”, they had a really successful campaign. Some years later they had a new massive campaign to introduce the first canned Club beer. In 1995, they changed all their machines, innovating their process with a new system of bottleneck that had the capacity for 100.000 bottles per hour. Three years later their launched the new brand “Dorada”. In 2000 there were two important events. First they launched a new product nutritive and intended for young people “Pony Malta”. Second, they obtained the ISO 9001. One year later they saw the new market tendency to be healthy and fitness so they launched a new beer, “Pilsener Light”. In 2002 they obtained the ISO 14001 for environmental quality, then in 2003 they enter in the market of bottled water with “Manantial”. In 2003 they launch a huge marketing campaign, giving the name of “Copa Pilsener” to the Ecuadorian Football League, also they got the BASC Certificate. In 2004 they got de HACCP that allow them to assure the safety of all their products. Finally, in 2005 Miller bought the company.

ACTUAL PRODUCT BRANDS AND CATEGORIES

Beers

BRAND CHARACTERISTICS PRESENTATIONS PACKAGING

Pilsener It is a beer of 4.2º G.L of alcohol. It is lager. This product has been in the market for about 100 years and it is the top selling beer. Returnable

600 cc (12 units)

330 cc (24 units)

225 cc (24 units)

Non-Returnable

330 cc (6,12 and 24)

330 cc can (24 units)

Barrels (30 and 50 Lts)

Pilsener Light It is the unique beer with a low alcoholic concentration, just 3.3º. It is perfect for everyday of the week because it allows you to continue you normal activities. Returnable

330 cc (6 units)

550 cc (12 units)

Non-Returnable

330 cc twist off

Club Premium This is larger Pilsen type. It is extra fine and longer period of maturity. It alcohol concentration is of 4.4º. Returnable

330 cc (24 units)

550 cc (12 units)

Non-Returnable

330 cc (6 and 24 units)

Club Roja Ideal for special moments of joy, a longer period of maturity gives as result the red color, 4.8° Non-Returnable

330 cc (6 and 24 units)

Club Negra Made with selected malt, it has a more dense body it has stronger hops, 5° Returnable

330 cc (24 units)

Non-Returnable

330 cc (6 units)

Dorada It is a lager type beer. It has a long standby time. Its flavor is mild and a quite bitterness. It has an alcoholic concentration of 4º. Returnable

600 cc

Refreshments

BRAND CHARACTERISTICS PRESENTATIONS PACKAGING

Agua Manantial Still water made with a modern and demanding process that ensures its purity, freshness and transparency. PET Bottle 2500 cc.

PET Bottle de 500 cc.

Agua Manantial con gas Sparkling water made with a modern and demanding process that ensures its purity, freshness and transparency. PET Bottle 2500 cc.

PET Bottle de 500 cc.

Pony Malta Non-alcoholic beverage. It is special for kids. Pony Malta is like an energy drink that contains a lot of minerals and vitamins. Returnable

311 cc (24 units)

225 cc (24 units)

Non-Returnable

330 cc can (12 and 24 units)

330 cc PET (24 units)

PERFORMANCE

CN had a great performance trough the years. We can see that they have many kinds of certification: ISO 9001, ISO 14001, OHSAS 18001, ISO 22000 and BASC.

Also they have changed their operations process making it more effective. They innovated their plant making the process smoother, faster and more capable. This is a reason why they have managed to increase their offer in a very little time. This new technology is known as the “Súper Línea”. It fills 100 000 bottles of 578 ml per hour.

Also CN has a lot of success with their marketing campaigns, as an example let’s analyze how they manage to beat “Brahma” the beer introduced by AmBev in 2004. Brahma came to the market with the campaign “Tu primera vez” they also remarks that the product is refreshing, they got the slogan “Refresca hasta el pensamiento”. Pilsener had the slogan “Orgullosamente Ecuatoriano” at the moment Brahma entered in the market, they launched a new beer called “Clausen” with the marketing campaign “Refresca tu vida”. CN enhance the relation with their distributors, this trade strategy became really effective for the company. Brahma lost a significant portion of the market due to the trade campaign that Pilsener used, then they decided to change their slogan to “Renuévate”. Later on, CN was acquired by the multinational Sab Miller and they started making one of the most clever and successful campaigns. The campaign was called “Ecuatorianamente Refrescante” Also they redesigned the tag, they proposed the idea “Disfruta tu día con una Pilsener en la mano” this motivated the consumers to purchase more. Then Finally Brahma changes their campaign Ambev propose “Vamos por más” more quantity for less price, leaving apart the original marketing plan, they used against Pilsener. So as we can see CN had and has a really good performance reinventing itself and changing successfully trough time. Adapting to their consumers.

FUTURE PLANS

First, let’s take a look mission and vision statements of the company.

Mission: “To possess and develop new brands in the chosen drinks segments to be the number one choice for the consumer and client in Ecuador”

Vision: “Be the most admirable company in Ecuador”

- The chosen brands.

- The chosen investment.

- The chosen employer.

- The chosen business partner.

Once we have mention the mission and vision of the company we can continue and present what CN calls “Diez Prioridades. Un futuro” it´s a plan that includes 10 priorities for the future. This priorities include campaigns, environmental issues and local economic growth.

First the fomentation of responsible consumption of alcohol, their objective is to make their publicity encourage the consumption of alcohol in a responsible way, also stop the illicit sale of beer to minors.

Then as second more important is energy, reduce the consumption of energy in their plants, implement more sustainable practices of production.

As third we have water, they intend to reduce the consumption of water in the plant, the objective is to make more beer and consume less of these resource.

Then human rights as a fourth priority , the idea is to develop their business focused in the respect to people, no matter the ethnicity, sex, religion, idiom or political opinion. They intend to do so by including all kind of people in their company, foment the integration of people from all Ecuador into their plants and all of the work places they offer.

Packaging, the fifth priority. Increase the efficiency of the already successful program of recollection and recycling for non-returnable glass and plastic bottles as well as the cans.

VIH & SIDA is the sixth priority, this refer to the prevention of AIDS. They intend to launch a campaign for prevention of this illness. They offer free medical exams and conferences about the prevention of HIV. They are actually doing it for their employees but they want to make it for the community.

As a seventh priority they got wastes, they want to promote the recollection and classification of wastes between their collaborators and in their own company, this makes easy to recycle and keeps works spaces clear and adequate to work.

Communities is their eighth priority, CN wants to be known as a company compromised with the development of the country, to do so they have their program “Siembra futuro” which consist in helping in the creation and growth of micro enterprises, by lending them micro credits at a very low interests also by giving them basic courses of administration.

Business development, the ninth priority. It consist in develop strategic partners in the value chain. This one is one of the main objectives of their business as they say. They intend to replace some of the imports by producing them locally, they already doing it with rice, that is one of the ingredients for producing beer, but they also want to do it with malt and the tags. They way to do it is to capacitate local people to be suppliers.

The transparency, is their other main priority, this includes reporting all the information related with

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