The report deals with the business development strategy of Carlsberg Malaysia. Carlsberg Malaysia has been known as one of the most popular beer company based in Malaysia. However, over the last few years, the company has been facing stiff competition from the brands like Tiger and Guinness Anchor. Therefore, for sustaining in the competition, the management of the company has focused on business development strategy. Major focus has been given on two aspects such as diversification of the products and expansion of the business. For this purpose, an in-depth research has been conducted to assess the feasibility of the new business strategies.
Based on the research, it has been found that Carlsberg Malaysia is required developing products compatible with all kinds of foods. For instance, it is important for the company to offer beer that can be taken with the vegetable foods. On the other hand, the company is also required to improvise its pricing strategy based on the economic condition of the people. For the expansion of business, the company is also required to improve its business processes. In addition, the company is required to adapt different cost reduction strategy for minimising the cost of goods sold and maximising the operational profits. The company is also required to strengthen its risk management framework for mitigating the probable risk factors. This report has provided a detailed marketing planning for the company for expanding its operation in the rural and semi-urban region of Malaysia, for this purpose, projected financial statements have been included in this report. However, for expanding the business into new region, Carlsberg is required to assess the preferences of the customers of the new market.
1.1 Industry background
Beer and Stout Industry are considered as one of the most important sector of Malaysia. The two most important players of this industry are Carlsberg Brewery Malaysia Berhad (CMBB) and Guinness Anchor Berhad. Out of the total population of 28.3 million, almost 3.5 million people consume alcohol (CMBB, 2015). The legal purchasing age of alcohol in this country is 18 years. However, compared to that of other Asian countries, excise taxes on beers and stouts in Malaysia are quite high (Euromonitor International, 2015). Following the three successive hikes of tariff, Malaysia has now been considered as the second highest duty providing nations for alcohol (after Norway) (Euromonitor International, 2015).
1.2 Company background
Carlsberg Brewery Malaysia Berhad (also known as Carlsberg Malaysia) has been set up in December, 1969 (Carlsberg Group, 2015a).The company has started brewing Carlsberg Green Level Beer in the local market since 1972.
Within a period of time, the company has become one of the most popular beer manufacturing brands in Malaysia. The company is mainly engaged in manufacturing and distribution of beers, stouts and other malt-based beverages (Carlsberg Group, 2015a). Lars Lehmann is the present Managing Director of Carlsberg Brewery Malaysia Berhad. The sales of the company have been managed by its subsidiaries. Apart from the flagship brand, Carlsberg Malaysia also offers a wide range of international and attractive brands like Carlsberg Smooth Draught, Carlsberg Special Brew, Carlsberg Green Label, Kronenbourg 1664 Blanc, Asahi Super Dry, Somersby Apple and Pear Cider, Corona Extra, Connor’s Stout Porter, Royal Stout, SKOL, SKOL Super, Jooly Shandy and Nutrimalt. (Carlsberg Group, 2015a).