MARKETING STRATEGY

Distribution (Place)

 Place stands for the various activities a firm undertakes to make the product or service easily accessible and available. It includes distribution channels. According to Hoffman et al (2005) a well organized distribution channel would lower the inventory level, delivery cost and make the products and services available to consumers as required.

The brewing Group, which comprises plants in Trinidad, Grenada and St.Kitts, is now posed to produce and market a wide range of brewed and none brewed products regionally and internationally. It is clear that the Carib Brewery co-operate with suppliers to form effective distribution channel to deliver its product speedily and economically. The Brewery also employs wide distribution channels and many retailers can sell their products. Any purchases are made directly with the Brewery or its selected retailer’s available island wide. However the company still has direct control over its products and prices.

In keeping with Carib vision of becoming the most sought after and widely available brand in the Caribbean the company normally host supervisors and sales supervisors of Carib’s export distributors. Carib Brewery also holds regular seminar to communicate it vision, brand initiatives, sales and merchandising techniques to sales mangers or brand managers of distributor organisation within the region. In the past Carib concentrated on communicating brand and merchandising techniques to only sales manager of distributors. However from 1998 management realise that that the trade management workshop should include export distributor staff that would have a more direct relationship with trade customers.      

Price

Pricing naturally represents the cost or amount of money to be paid for the product or service. Davis et al (1985) suggest        that all medium size firms like Carib Brewery                                                                                                                                                                                                                  are more likely to be more successful in their pricing strategies when flexible pricing strategy is used, and when pricing strategy encompasses small firms monitoring prices of competitors and engage in price competition. This pricing strategy is evident at Carib Brewery. The firm’s major pricing strategy is Mark up pricing and competitive pricing. The Carib Brewery is a market leader in Trinidad and Tobago so they set their prices. Carib Brewery beers are always cheaper than international products. The company is aware of threat from Heineken products widely available throughout the region thus this company heavily concentrates price discounts to promote its products. Management of Carib Brewery indicated that before setting process for the export market the following factors are taken into considerations: 1. Full manufacturing cost to produce products 2. Marketing cost o achieve projected sales volume 3. Shipping cost- management indicated that this accounts for about 15% of total cost 4. Mark-up in relation to profit 5. Competitor’s prices. Management also indicates that prices are always lower than major competitors in the international market place and that prices established provides the highest possible contribution for a firm of it size and capacity. This establishment focuses on numerous selling campaigns based on price reduction to gain brand loyalty from customers.

Promotion: 

Promotion represents the various activities the firm engages in to communicate or inform customers or potential customers on the benefits and merit of the product. This includes sales promotion, advertising, personal selling, public relations and direct marketing.

 Evidently all these forms of promotion are used by this firm. Although research by Tom cannon (1985) indicates small and medium size firms like Carib Brewery employs a limited amount of promotional activities. We see that this small medium size organization has embarked on a number of promotional activities, and this is one of the major tools this firm employs to gain market share and to increase sales.

In order to capture the profitable and loyalty of target market for 18 –30 years male female group, management has indicated large amounts of money has been devoted to promotion to secure market share.  Keegan (1995) proposed communication adaptation for promotion in international markets but Carib Brewery consistently uses the similar promotion activities for all foreign markets.  The Carib Girls and heavy selling campaign is consistently used. Over the years Carib has used local and international celebrities to induce sales. In 1999 Carib Brewery used the then heavy weight champion Evander Holyfield, and Dwight Yorke a Trinidadian premiership league footballer to promote its products. The main emphasis of his promotion was geared to improve sales of Carib Brewery brands.  Many promotional activities are organised in bars and restaurant in the international market place. Carib beer specials can be found through out pubs in the Caribbean.  For instance in Miami Bootleggers Bar is often one bar used to promote Carib beer at special prices. Promotional campaign of Carib Brewery products includes a variety of gifts including Carib beach chairs, umbrellas, beach towels, coolers, etc. Over the years Carib Brewery used cash bonanzas extensively to boost sales for all of its products.

Carib Brewery management promotes it products by tapping into the cultural lifestyle of the Caribbean region. Street parties and soca fetes are a way of life through out this region and Carib has aligned its promotion with those events. There is hardly one carnival or Caribbean party, or cultural event in the region where Carib Brewery products are not promoted. It is the most promoted brewery in the region and it main product Carib beer is always promoted massively throughout the Caribbean. Each product has it own girls to promote the product. These girls who promote the product are seen at launching, and all promotion events of the company. They promote Carib at international tournaments as well as during West Indies cricket. If one ever visited any of Trinidad bars you would have met the Carib girls promoting Carib products and encouraging limers to drink Carib products. Major emphasis is placed on these girls to get target market to drink the brewery products.  

Carib Brewery also is known for using sponsorship of regional and international event as a main promotional tool. For instance Carib Brewery is known for hosting the below regional and international events to seal it efforts as being known as the Caribbean brewery such as:

 1. Caribbean / Calypso /Kaiso/Soca: An artform indigenous to the Caribbean region

2. Major Sponsors of Carnivals, Sporting activities, Cultural activities within the region like

• Carnival in Trinidad and the Eastern Caribbean
• Sponsors of the West Indies cricket Team in regional games and international games. Cricket is the only sport that binds this region together and Carib Brewery is always sponsoring cricket and their promotions are highly evident at games shown through out the region. Carib Brewery over the years have highlighted the importance of being associated with west Indian cricket, a tool which can be used to get this establishment to be the brewery of the region, and it flagship brand Carib beer to be known as the beer of the Caribbean. Grand prizes are always available to get cricket lovers to see international and regional matches.
• Carib Brewery normally sponsors the Trinidad Football Team and other regional football tournaments.

The Tourism Industry used a as a promotional vehicle

The Caribbean region is currently receiving a huge bulk of foreign exchange form the tourism industry. Management’s highlights that since its products are widely available throughout the region they have fostered ties with the tourism sector to promote their flagship brand Carib Beer to the international market. The tourist when returning to their countries would have sampled this beer while in the region and would continue demanding for this product.  

Advertising

Over the years Carib Brewery has placed major emphasis on advertising thus there are always new ads promoting Carib Brewery products in the press and on the airwaves. Driving around the islands you can see Carib advertising at many bars, restaurants and different events as well as at all the carnival villages.

 Many marketing pundits would agree that advertising messages should appeal to the target group.  To a certain extent we see that Carib Brewery is using and advertising strategy to meet preferences of target group.  The adverts for Carib products are differentiated from each other by having distinct jingle for instance for Carib Beer is “a beer is a Carib”, for Stag product “Stag it is a man beer etc.”  Most of the firm’s advertisement indicates where the brewery products are available and they do create high visibility by placement on banners etc.

For many decades many successful businessmen and mangers like Nicholas Kaldor and others have claimed that massive advertising campaigns have enable them to achieve and maintain monopoly over their markets. Carib Brewery management have claimed that through advertising, along with other promotional strategies has created customer loyalty to its products.  Management indicated that more advertising is done for regional market than international market. Management claims that they cannot afford to have extensive advertising for international markets via the electronic media like they do for local and regional market. However they do advertise in a few foods and drink magazines, brochures and travel magazines of airline companies.

Public Relation/ Corporate Responsibility

This firm set ups news releases on the big opening days for new product offerings which management deem is essential for effective product launching. They work with distributors on getting word out to media houses about new product offerings and new acquired establishment. Activities of the brewery demonstrate that the brewery desires that adults consume alcoholic beverages as intended, and responsibly. This brewery is a strong advocate of moderation in drinking and have sponsored a number of ads in the region stating when drinking do not drive and has contributed significantly to programs encouraging responsible driving.

Carib Brewery is committed to conservation and protecting the environment and is a major supporter of conservation organization, and recycling.  Since Carib Brewery early days this firm has shown it is deeply concerned with human needs and the quality of life in Trinidad and the region. The contribution program is design to benefit and support those islands through donations to educational institutions, health care, cultural groups and sporting group. As a model of excellent corporate responsibility in the region it has earned the support of consumers locally and regionally, thus giving this establishment a distinct competitive advantage over their competitors from the region.

Personal Selling: In its local market personnel selling is used as a marketing tool to maintain market share and to create an atmosphere that makes the locals see Carib Brewery as theirs. Personnel selling is geared at distributors to build long term relationship with distributors and assist them in selling the firms products.

Characterising the Strategic Orientation Employed at Carib Brewery

Is Carib Brewery Utilising a Product, Production, Selling or Marketing Concept to sell it products?

A company’s orientation is believed to have the potential to increase performance substantially.    

There are a number of different philosophies that guide a marketing effort. Typical definition will follow Phillip Kotler (1997) definitions:

Production concept:  The production concept holds that consumers will favour those products that are available and highly affordable, and therefore management should concentrate on improving production and distribution efficiency. 

There is evidence to show that this firm has adopted a part of this concept it its strategy. This brewery has upgraded or overhauled major components of it plant and equipment, expanded refrigeration capacity, introduce a new process to recover carbon dioxide and improved water treatment facilities. These initiatives have been designed to reduce the operating cost base, to present offerings, which are highly affordable, and improving the firm’s competitive advantage.  

Product concept: The product concept holds that consumers will favour those products that offer the most quality performance and features, therefore the organization should devote its energy to making continuous products improvements. Firms who used this concept convince its customers that its products have superior qualities. There is evidence from the analysis of the marketing mix that suggests that Carib Brewery has undertaking some activities that is focused on the product. For instance in Dec 2003, the company received a certificate of good manufacturing practices and Hazard Analysis Critical Control (HACCP). This certification is for the production of fermented alcoholic and non-alcoholic beverages and is a strong testament to the high quality products the brewery intends to produce in the future and currently.  This firm has also embarked on some product modification and made changes to labelling and packaging over the years which suggest some elements of the product concept is also at work.

Selling Concept:  Kotler (1977) contends that many people think that selling and marketing are the same but they are not. Selling and delivering the product in the hand of the customer is only one aspect of the entire marketing process. Marketing activities support the sales effort, and marketing activities like packaging and pricing must be established before a sale can be made.  At the heart of the sales concept is the desire to sell a product that a company has made or introduced to fulfil sales volume and objective. The selling concept also holds that customers do not always no what they want unless it is offered to them and customers will be committed to buying products after it is heavily promoted via aggressive selling.  Based on Kotler (1977) arguments and Kohli, Jaworski, Kumar (1993) research findings we see the selling concept highly evident at Carib Brewery. The following activities is evidence that this firm is highly selling oriented such as:

1. Management of this firm continues to device strategies and employed methods to sell the products to increase profits with a major focus on advertising.
2. Concentration of their resources on marketing activities linked to relative short term benefits. This feature existing in Carib Brewery strategy is consistent with Longnecker and Moore (1980), Chell (1985) and Paliwoda (1986) who all carried out research showing that small firms predominantly uses short term marketing activities to get quick sales.  
3. Most of it marketing effort to internationalize revolves around selling its offering via sales promotion in restaurants and bars, as well as a pricing strategy that includes massive price discount during introduction phase to get customers attracted to their offerings.
4. Price competition a feature of the selling concept is widely used by this firm. This firm using a lot of price discount during sales promotion and competitive pricing to generate high sales volume to maintain profit level.
5. Aggressive personnel selling of products another facet of the selling concept is evident at this firm.
6.  At most of Carib Brewery trade workshop the topics covered sought to concentrate on the sales functions and to promote feed back of problems associated with selling the product and problems of trade. Customer input has little to do with products sold.  
7. We see that the promotion aspect of the mix is heavily utilised and all advertising and promotions are geared towards increasing sales volume.
8. Management of this firm view that if products are not doing well distributors are not pushing the product sufficiently and would organize sales promotion, not much emphasis is placed on marketing research to explain decline in sales. The firm continues to organise selling activities to rejuvenate products that are in the decline stage of the product life cycle. For instance Royal Lion Stout continues to be rejuvenated and relaunch with emphasis on sales promotion to boost sales.

Marketing Orientation/Concept: This concept holds that the company first determines the consumer preferences, then produces what the consumer’s wants, and sells what the customer wants. LL BEAN (1912) founded on the marketing concept in his first circular emphasised the importance of implementing such strategy in his first circular: “I do not consider a sale complete until goods are worn out and the customer still satisfied. We will thank anybody to return goods that are not perfectly satisfactory… Above all things we wish to avoid having dissatisfied customers.”

Peter Drucker in (1954) also emphasised the importance of what the customer value as being the decisive factor in determining what is produced and if the business will prosper.  John B Mc Kitterick president of General Electric in (1957) also emphasised that the marketing concept is a customer oriented as well as profit oriented, and emphasised that this concept should meet profitability needs of organizations or else would be a useless concept to adopt. There is evidence to indicate that Carib Brewery uses some elements of the marketing concept stipulated by Phillip Kotler (1997).

1. The firm after all has a marketing department which many marketing experts would call a sales department with expanded responsibilities. For the Caribbean region the firm use some marketing research to find out the needs of customers, although most of products offering are based on what international competitors are producing.
2. The firm also has been able to identify target markets and presenting promotional activities to suit this target market. Through the use of marketing research another facet of the marketing concept this firm has also been able to establish that core values of the target market of the Caribbean is fun and sociability, thus their marketing programs are lively and are widely promoted at regional carnivals, cricket, and other cultural fetes.
3. We see the firm also used some marketing activities after the product has been launched and developed and some product modification has been undertaken. For instance Carib Shandy flavours have been extended over the years; Stag taste has been modified to taste like European Lagers.
4. Other components of market orientation outline by Philip Kotler (1997) Kohli, Jaworski and Kumar (1993) such as acquisition activities and assessment of markets is evident at this firm. The Company has undertaken a number of successful acquisitions of ailing breweries in the region. There is evidence that this firm has done some competitor analysis for the regional market since they are aware that most regional breweries like Windward and Leeward Brewery use a selling strategy and price competition is widespread. Hence the reason for Carib Brewery adopting elements of the selling concept and a competitive pricing strategy to remain as the market leader in the region.

Societal Marketing Concept: This is the newest concept. It holds that the organization’s task is to determine the needs, wants, and interests of targets markets and to deliver the desired satisfaction more effectively and efficiently than competitors in a way that preserves or enhances the consumers and community. With this concept there is usually a balance between companies profits, customer wants and society interests.      

Most marketing pundits would agree that we are now in the societal marketing era and there is increasing pressure on companies to adopt the societal marketing concept. Carib Brewery has understood this demand and as seen from the above finding this firm is one of the leading firms in the region to support environmental and societal causes. This is another major tool for getting its product visible in the market place and as a result of heavy sponsorship of regional events it has been able to solidify its position as the brewery of the region. From my analysis of their marketing mix and we see that this firm is cognizant of the fact that in an age of environmental deterioration, resource shortages that it has to incorporate this approach to secure it market leadership position in the region.

Further evidence of this concept can be seen in the following policy of the firm:

1. Sampling is allowed at licensed or private premises and sampling of alcoholic beverages is prohibited to minors.
2. Commercials communications does not encourage illegal and irresponsible consumption such as binge drinking or drunkenness
3. Commercial communications do not include activities which suggest violent, aggressive or criminal acts
4. Commercial communications do not encourage consumption of alcohol in combination with the act of driving vehicles of any kind.  

Overview

There is little evidence of direct formal regular relations with customers which marketing orientation experts like Kohli and Jaworski (1990), J Narver, P Slater (1990) and Kotler (1977), Day G (1994) stipulates there should before a firm is to be described as purely marketing oriented. From analysing the firms operations and activities we see solid evidence that establishes that this firm cannot be described as purely market orientated such as:

1. Many of the firm’s activities are not inline with customer expectation but what management sees as being a good product to launch. For instance when this firm launch Shandy drinks, and Stag in the regional market, or Smirnoff ice there was no systematic research done on customers needs but the decision was based on trends in international markets and competitor activities.

2. When a new product is launched there is more emphasis on immediate customer response based on sales level attain and not on whether new products are meeting customer preference.  

3. There is no of evidence of a program for monitoring changes in customer preferences and there are limited activities around future needs of customers.  

4. There is a weak strategy in place to respond to competitive actions in the international market place although this firm has had an effective strategy based on their performance to battle regional competitors.  

Research conducted by Noble, Sinha, and Kumar (2002) contends that the most successful firms draw from elements from several strategic orientations for different periods in the industry it operates to achieve profitability.  From the above analysis of the firms marketing mix it is evident that the firm is drawing from different elements of the above concepts, but predominantly uses selling oriented approach and societal marketing concept to generate sales and secure market share.

Many marketing analysts have agreed that one approach is not always right and the other always wrong, but would depend on a particular situation, stage products are in its life cycle. For instance product rejuvenation would require more aggressive selling, therefore when Carib embarked on a massive sales campaign to revive Royal Lion Stout in the region this could be justified. Another major justification why the selling strategy is predominantly used in the regional market is because all major breweries of this region use such strategy to secure sales revenues. Selling activities characterised activities of regional breweries to get customer loyal to the brewery offerings.

Real cases continue to show that some successful firms did no travel down the path of the marketing concept to achieve success but follow different paths totally. Many firms deliver products as a result of a technological break through which needs to get a market, at other times new markets are developed to achieve the firms growth objectives.  In reality a lot of firms like Kmart believe that you can win by selling high volumes no matter how it happens.  

 

To make recommendation for this organisation one must clearly identify strength and weaknesses after analysing operational activities, strategic orientation and strategy. Through the use of a blend of approaches with heavy emphasis on selling and societal marketing concept one can see a number of strengths and weaknesses in this firm strategic orientation.

Establishing Strengths and Weaknesses of Current Strategic Orientation

Weaknesses

1. The promotion strategy is almost standardised for all its market. Markets would not be penetrated or high sales level will not be generated if consideration is not given to ethnic and cultural differences. Markets could be lost if those cultural differences are not taken into consideration when promoting products.

2.  Lack of marketing research: Management of this firm has confirmed on more than one occasion that sales on new product offering has surpassed their expectations as with the case of the launching of Smirnoff Ice in 2003. Inspite of the favourable response of these offering from target market managers can not allow market to present surprises since the reverse of poor performance could have also occurred.  This lack of marketing research is consistent with research carried out by Donkels (1985), which indicates that smaller firms never use marketing research or information on surrounding to gain access to markets or formulate marketing programs.

3.  Internationalisation of company’s products would require the business to assess the geographic and cultural diversity of each area they are planning to enter. However as a result of limited capital there is no in-depth evaluation of diversity by Carib brewery when going international. The above limitation will hinder the firm’s ability to perform international market place. This finding is consistent with Cannon and Dawson (1977) who asserts the availability of resources particularly those needed to formulate effective international strategies such as managerial and foreign market know how, adequate financing and research and development tends to be limited among small firms.

4.  There is lack of a competitive strategy at Carib Brewery for the international Markets. Developing a competition orientation will positively relate to performance. Research continues to show that firms that are more alert and focused on action of competitors are superior performers. Management of this firm has highlighted that it uses it pricing strategy to keep guard; this is absolutely not sufficient this small firm needs to constantly monitor activities of larger breweries. The local alcoholic beverages market is populated with a whole range of local and imports rums, wines and other spirits thus research must be undertaken on competing products in order to identify a competitive advantage.

5. According to Kotler (1994) customer satisfaction is the primary aim of marketing however this is not consistent at Carib Brewery since the firm focuses on a selling strategy to obtaining it market share and sales revenues. From observation and statistics we see the selling approach is working for the regional market but however using this approach to penetrating international market will not allow firm to reap maximum success.  Currently there is too much emphasis placed on the promotional girls to sell the products extensively other factors like product quality, customer needs and preferences should be relied on more.

6. Lack of innovative marketing: The most visible area of marketing revolves around new products and the ability to constantly improve the processes that deliver value to the consumer through added value and innovation. As market trends accelerate, beverage companies will need to respond quickly to take advantage of future opportunities. This response should include breakthrough new products or the ability to follow competitors’ products. Carib Brewery needs to take on new product innovation since it is a better position to no the changing needs of the Caribbean people than international brewers. We see a number of its new offering comes from micro brewing and taking on licences to produce other breweries products. Carib Brewery needs to at least develop new products to follow the competition. For instance we see an upsurge in the need a for a low carbohydrate option among women and older adults. Carib Brewery to date has no real plans to develop such products.  However if a major brewer like Anheuser Busch with its low carb offering of Michelob Ultra would give them the license to produce this product they would then accept this product, market it and then gain some success. The question remains why not develop more of your own brand offerings when there is a demand for the product. Although it wise to have a wide cross section of products from other recognised brands to avoid huge expenditure involved in product development. However if there is a market in the Caribbean region why allow an international company to gain access so easily. Another example of lack of product innovation is seen where there was a change in market demand for premixed cocktails, Carib Brewery did not take advantage of this to launch their own products in this high growth market. Instead they formed alliances to sell pre mix cocktail for international brands that are doing well throughout the region. One is not saying that Carib should not form alliances, many breweries use this strategy to strengthen brands but when marketing research indicates that there is demand for a particular product why allow international companies to reap part of the benefits. Why obtaining licenses to produce other firm’s products and paying royalties when there is an established market in the region.  Not only does Carib Brewery need to pay more attention to developing its own product offering for the region, but emphasis should also be placed on establishing a functional research and development unit to develop products with enhances quality.

Strengths

Hankinson (1986) research on small medium size firms indicated that cost plus methods dominates especially in small manufacturing companies like Carib Brewery. However strength of the pricing strategy is that this firm does not use cost plus pricing usually employed by most small firms. Cost base pricing is where prices are based on indirect and direct manufacturing cost overheads only. Carib Brewery has concentrated its effort on employing an export strategy that integrates competitive prices, distribution efficiency and marketing cost before setting prices.  

Another major strength of this strategy is developing a policy for responsible marketing strategy. Carib Brewery believes by developing this approach to marketing it will contribute to meeting their responsibility as an international brewer.

A Major strength of this mix is that the firm has been able to identify islands in the regions within developing markets which are not saturated by international players, it has focused it operation on the Eastern Caribbean where there is a lack of brewing capacity relative to demand. According to Doyle (2002) the most important strategic decision is “what market to focus on” this has proven as a strong point of Carib Brewery strategy.

Carib Brewery has been able to use a blend of promotional activities to suit target market and interest of the Caribbean region. Hill (2003) emphasis the need to develop a proper blend of promotional activities to generate sales and profit over the years.

Is Current Strategic Orientation Working for Carib Brewery  

Bonama and Clarke (1988) assert that the task of measuring marketing effectiveness is quite a complicated one however I am going to focus on measures recommended by Bononama and Clarke and (1988) and Newman and Logan (1976) which are growth, sales revenues, profitability and other mediating factors. Kotler and Armstrong (1988) contends that marketing effectives is reflected in the degree to which the firm incorporates sound elements in this strategy like corporate philosophy, marketing information, integrated marketing organization, strategic orientation to international markets and operational efficiency. Management of this firm need to continue drawing from this framework to continue growing. Frank Bradley (1991) contends that only effective firms survive in the international environment marketplace and we have seen such a small firm being effective and have penetrated major world markets and attain profit. This is further is evidence that the strategy is working.

From the below evidence we see that this small firm has continue to gain access and success in international markets, this is consistent with Bilkey and Tesar and Cavusgil (1977) which contends the size of firm is relatively unimportant for penetrating international markets    

Other factors proving strategy works

1. Marketing performance

Although management of this firm did not give accounting information for this firm since it part of a conglomerate Ansal Mc al Group separate financial statements are not available to analyse. However from management report from Ansal Mc Al Group and Carib Brewery management reports these indicate over the years the firm has never recorded a loss in its international, regional and local operations and has recorded steady growth in net profit for regional and international markets. Management claims that in 2003 and 2004 the firm’s performance in international marketplace had brought in highest returns in net profit.

 Management claims from beginning to market Carib Beer as the Caribbean Beer sales improved tremendously in the regional and international market place and as a result has been able to establish distributorship in more international markets. The brand is currently available over 32 countries worldwide Canada. This fact proves that small firms with a planned strategic approach can achieve success in the international market place.    

During the last three years because of strategies implemented to give Carib beer a stronger platform as the “beer of the Caribbean” and the continued alignment with Caribbean carnivals and West Indies cricket significant increases in profits have also been recorded.  Domestically growth has been recorded over the years inspite of the increasing competition from foreign beer brands and other beverages that have been launched in the local market. This commendable achievement underscores management’s commitment to quality, effective selling and competitive pricing. The fact that Carib Brewery has able to get distributors to take on their new offerings where many distributors are not interested in handling additional brands is an indication that the current strategy has some sort of effectiveness.    

           

 Carib Brewery major product Carib Beer has become the most famous of West Indian brew to achieve this feat would imply something is working in this strategy. It is the only beer that is widely available throughout the Carib, which attest to an efficient distribution network. Other beers from the region compete with Carib products like Red stripe, Piton unfortunately cannot be found throughout the region.  

Over the years Carib Brewery growth strategy that was primarily based on the acquisition of local brands in Trinidad has worked. Carib Brewery has been able to operate as a monopoly for locally brewed products in Trinidad. This attest to a strategy that works in the domestic market of Trinidad and Tobago.

Recommendations after evaluating Strategic Orientation /Operational Activities and the Internal and External environment

The marketing manager has no control over the marketing environment and the only option he has is try to predict what is likely to happen in the environment by conducting a SWOT/ PEST analysis to evaluate strategic position and make necessary recommendation for marketing activities and operations. Carson and Cromie (1985).  

 A SWOT analysis is a model that provides direction and acts as a basis for the formulation of an organisation marketing plan. It accomplishes this by assessing an organizations strengths and weaknesses in addition to opportunities and threats.  

Situational analysis of the Internal Environment

Strengths:

1. Market Dominance:

2. Competitive advantage: Carib Brewery has competitive advantage in the Caribbean region which it has the ability to sustain and improve in four areas namely value adding capability, cost leadership, economies of scale and efficient distribution.

3. Cost leadership: Prices to break Carib brewery hold over mass markets in the Caribbean region is difficult task for regional brewers, a new entrant would have to build big enough breweries and lean enough distribution channels to match this brewery prices.

4. Product and service quality: Undoubtedly in the Trinidad market and Caribbean this firm product is rated for its quality.

5. Wide regional distribution network

6. Large market share locally and regionally

7. Breadth of Brand portfolio for the Caribbean region

Weaknesses

1. Creating an international brand

2. Small size constraints, limited capital to engage in depth marketing research and product adaptation like international brewers

3. Environmental pollution

4. Limited capital resources

5. Highly susceptible Operations: operations are vulnerable to adverse changes in the macro economic factors in particular foreign exchange rates given that most inputs are imported from Europe and the Americas  

Opportunities

1. Buying up other ailing breweries in the region.

2. Although Carib Brewery is the largest brewery in the Eastern Caribbean it has a challenge to continue establishing itself internationally and to turn all its products into global brands. The top four brewing companies only have about 33% of market share worldwide. This means that opportunities to grow abound and Carib Brewery should take this opportunity to grow.

3. Beer consumption is growing fast in the region, thus continue acquisition is recommended

4. There are still opportunities for Carib Brewery to develop alliances with international brewery to produce drinks not yet produced in the Caribbean.

5. Removal of trade barriers in other regional markets and internationally. The introduction of Caribbean Single Market economy in the Caribbean region will allow this firm to carry out marketing activities in Caribbean islands with impenetrable monopoly. For instance in Jamaica Desnoes and Geddes Ltd have a monopoly on brewed alcoholic brewed products.  

Threats

1. Lack of capital

2. Carib brewery is moving to quickly to internationalise its earnings.

3. The slow growth being experienced in the global markets for breweries has led to a situation, in which top brewers can only improve shareholder earnings by moving outside their national borders. This is resulting in numerous acquisition, strategic alliances, and joint ventures. This can hamper Carib Brewery international strategy to penetrate and increase sales in overseas and regional markets.  As the consolidation in industry becomes more intense, Carib brewery will face increasing threats from regional and international competitors. The most imminent one is Heineken, which is already well established in the Caribbean region. Carib Brewery also needs to be cognizant of the fact that other major breweries in the Caribbean region like Denoes and Geddes ltd producers of regional beer Red Stripe also has similar licences to produce some products in its brand portfolio like Smirnoff ice and Guiness. So this implies that this firm is not the sole distributor of international product regionally.

4. High fuel prices

5. Health warnings and new liquor bills in certain markets

6. Carib Brewery has a number of social difficulties to overcome for its alcoholic offerings. Health campaigners are concerned about alcopops like Smirnoff Ice may encourage binge drinking in underage drinkers and lead to unsociable behaviour. Governments of the Caribbean region are expected to be rigid on this issue and in the future may increase taxation on alcohol to act as a deterrent.

Situational Analysis of External Variables Affecting the Company

A scan of the external macro-environment in which Carib Brewery operates can be expressed in terms of PEST analysis. The highlights of this analysis are as follows.

Politically:  Carib Brewery strategy demands a fair amount of politically sensitivity in dealing with government, partners, local communities and the workforce. Proposed liquor bills of certain markets will continue to pose uncertainties in the market. Government legislation can raise the cost of doing business complying with liquor laws and pollution laws.

Economically: In most emerging markets consumption of beer is directly related to the level of disposable income at consumer level. Although the markets where Carib Brewery operates have been growing there have been occasion of depression in those islands after September 11 incident.

Social conditions: Many people are spending more of their disposable income on medication than alcoholic drinks. Luxury items such as beer are usually the first items forgone relative to opportunity costs. Now and in the immediate future Carib brewery will have to adapt to changes in demand e.g. youth moving away from beer to softer alcoholic drink.

Technology:

Advancement of technology worldwide to reduce cost of production in the brewery sector.

The question is can Carib Brewery keep up with modern advances to remain cost effective.

The Boston matrix and implications for Strategic Recommendation

Boston Consulting Matrix

From marketing information supplied and using the Boston Matrix one would observe that some of Carib Brewery products are generally cash cow. This suggests that for some of the product the plateaux of sales have been reached, which may not be influenced by further market spending. Such products are Carib Shandy, Ginseng up, Carib Malta.   Some newly introduced products like Carlsberg and Smirnoff are rapidly developing into stars and are grabbing significant market share within short time spans, and are continue to aggressively expand though are still relatively early in the product development life cycle. Carib management therefore could continue promoting such products by using some returns form cash cows like Carib Shandy. Carib Beer can be seen as a cash cow for domestic market and a star for regional and international market. This brewery has number poor performers or Dogs “Lamb et al” (2000) contends these will continue minimizing the effect of the company achieving more profits and economies of scales. Royal Lion Stout and Mackerson Stout fall within this category, as they have a low market share in a small growth industry.  This suggests that Carib management should not commit a huge amount of cash to promote such products and the selling strategy used for these products should be abandoned immediately.

Other Significant Recommendation after Analysis

Carib Brewery in its effort to gain international market share for its products will need to increase incentives to motivate new distributors since the distribution scene has changed in the international market place, most distributors are no longer willing to take on new small volume hand crafted brews and most do not want to handle international brands.

This firm should try adopting some form of direct marketing to be more aware of what consumers want. Steve Burrows, vice president of brand management Anheuser Busch emphasises the importance of developing direct marketing. He contends, “As Part of our on going evaluation of the total marketing effort, we are exploring the opportunities direct marketing can provide us”.  Carib Brewery should try out different forms of direct marketing to see what could work for it to understand customers taste and distribution needs. Whether it is fielding phone calls or collecting data during their promotion.  This brewery needs to improve on the amount of information it gathers about its target market and potential customers.      

Lack of Internet marketing: Young people are the biggest users of the Internet. Since most of Carib Brewery target market are prime users of the Internet.  An updated web page that Carib Brewery does not have now will allow the company to a mass valuable database.  Carib management has indicated that as a result of lack of resources they have a problem with tracking changes of social trends in other countries where products are sold. With the use of Internet marketing this will allow Carib Brewery to communicate directly with their target audience. Many world leading breweries like Anheuser Busch now have 800 numbers on its products so consumers could call. Demographic market research collected through this method is useful in direct response plans to develop specific brands and marketing plans.

 A consistent high quality and variety of brewed products is essential for a brewery success. When Carib brewery own brand offering are compared to other products available it has much to be desired, although within the Caribbean it is highly rated but on the international scale from beer feed back forums like Rate Beer you see there are comments which suggest improvement needed for Carib Brewery products marketed internationally. From these web sites we see that some respondents favour other Caribbean beers such as Red Stripe beer of Jamaica and Banks of Barbados.  Carib management should carefully consider these finding since if another Caribbean beer can be seen as superior in taste, and this firm can develop a sound marketing strategy it can erode market share of Carib brewery within the region

 

Competitive pricing is always encouraged but this establishment should also integrate open pricing in their mix.  Many leading brewers like Kirin in Japan are now using open pricing technique and putting in place operational strategies to ensure appropriate level of profit is attain.  The firm should also adopt a pricing strategy that is in line with the consumer price index. Since management has indicated that domestic sales are particularly sensitive to price increases Carib Brewery must engineer new ways of keeping its prices attractive to the consumer. Monitoring the price index will allow the firm to be more effective with setting prices align with consumer desires. From all indication from management we see certain products like Stag, Stout are price sensitive, so volumes would fall if prices were increased.  On the other hand product like Carib Beer, Guiness, Malta are less elastic due to their intrinsic value and brand position so volumes are likely to remain stable. Therefore with this known Carib Brewery should be able to formulate prices adjustments.  

As recommended by Day (1994) more use marketing of the marketing concept should be employed by this firm where promotional activities will not be used solely to generate sales but to discover what products are wanted and to make potential customer aware of them.  

We see that Carib Brewery employs a standardisation strategy for its products. Major top global brands which are standardise in most markets have made some sort of product adaptation. For instance Coco Cola a generally standard product is less sweet or less carbonated in certain countries as consumers demand. Therefore it is highly recommended that standardisation and adaptation should co exist and should be based on trends in the market and needs of customers.

And most importantly in Carib Brewery effort to internationalise it must however seek to remain solvent, and this should be the firm first financial objective. Bradley (1991) highlights that good financial management will ensure that the expansion strategy does not jeopardize the survival growth of the firm. He further argues that if financial resources are not properly coordinated with marketing strategy this can lead to deficient marketing strategy. This implies that the program developed for each market must be controlled.

Conclusion

We see that this firm not based solely on the traditional marketing orientation and having employed a blend of other orientations has lead to superior performance in the region and a profitable operation in the international market place. Rarely have studies in marketing considered the possibility for alternative strategic orientations and this research paper indicates that success is possible with orientations other than a strict marketing orientation. However according to Bruce Wrenn (1997) marketing will continue to play the key role in product offerings and development even when the process does not begin with a study of customer preferences via marketing research or the marketing concept which was manifested at this Brewery. We see marketing activities being undertaken even when the firm cannot be described as purely marketing oriented.  Inspite of the fact that the brewery has had success with using a blend of approaches a market orientated business has certain advantages over a selling, product, production orientation firms and is therefore highly recommended.

 For Carib Brewery it is evident that conditions in the international market is a challenge, however through its current strategy it has achieved profits and its success attain through current strategy cannot be ignored. The current marketing program has enabled it to be seen through out the region as a corporate group that is an ethical corporation that enriching lives of customers in this region.  

 

As Carib Brewery continues to move forward, it will need to continue to building on strengths in brewing, packaging and distribution. The company needs to develop an innovative approach with new brands, packages, services and support with commitment to quality that must never be compromised. Kotler (2000) argues that both large and small firm’s needs formal market planning to survive therefore this small firm needs to build quality in all its marketing activities stating from ingredients used to brew products. Most international brewers have been able to maintain their market share and top position because they understand that pivotal values like teamwork, commitment, innovation, agreement is crucial for long term success and this brewery needs to continue to draw from their strategy and activities to continue penetrating new markets. From this research paper one would realise that small firms can develop a strategic orientation and succeed and small establishments are not necessarily handicapped in foreign operations. The notion that small firms are less confident in their ability to export and standardized products for the international marketplace is diminish further.

We also realise that if a firm develop a planned program for selling, uses it distinctive competencies and draw from other orientations for selling products even if it is not fully marketing oriented it can achieve profitable results.  However in this age ruled by consumer choice relying on selling techniques, technological innovation and distinctive competencies rather than using customer needs as the basis for new products offering can be suicidal for a company.  Carib Brewery needs to use customer preferences more extensively in its overall marketing program to maintain current market share and to be catapulted way ahead of competitors in the Caribbean, and become a major player in the international market place.  

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