2. 2
Moderna Slides
A lack of management planning resulted in a delay of
alcohol beverage diversification by Molson Coors leading to
market share losses and lower sales volume.
Problem Statement
3. 3
Moderna Slides
Molson Coors is…
• the 2nd largest manufacturer and
distributor of beer in Canada.
• the oldest brewer in Canada, founded
in Montreal in 1786.
About the Company
4. 4
Moderna Slides
The Molson Coors' vision is to be
a top-performing brewer winning
through inspired employees and
great brands. We're driving
growth by becoming an
innovative, brand-led company,
delivering and re-investing
productivity for growth as we
build a winning, value-based
culture.
Vision
5. 5
Moderna Slides
Determining organizational goals and a means for
achieving them.
Planning
Deciding where decisions will be made, who will do
what jobs and tasks, and who will work for whom.
Organizing
Inspiring and motivating workers to work hard to
achieve organizational goals.
Leading
Monitoring progress toward goal achievement and
taking corrective action when needed.
Controlling
Keys to Success
7. 7
Moderna Slides
Porter’s 5 Industry Forces
Moderate
Character of the Rivalry
Moderate: New
independent craft brewers
Favorable: 2nd largest
supplier of beer in Canada
High: Low switch costs & minimal
differences in flavor of light beers.
Favorable: can secure suppliers at
lower fixed & variable costs.
Threat of
New Entrants
Bargaining
Power
of Suppliers
Bargaining
Power
of Buyers
Threat of
Substitute
Products/
Services
8. 8
Moderna Slides
22.88
Million hL
2009
Craft breweries:
1.18 million hL
2014
22.39
Million hL
Craft breweries:
2.01 million hL
Declining Market Share
Molson Coors vs Independent Craft Brewers
Produced in Canada, 2009 vs. 2014
9. 9
Moderna Slides
Men 59.5% Women 40.5%
Source: Financial Post, 2015
19 to 30 years old: 19.9%
31 to 50 years old: 15.6%
51 to 50 years old: 14.3%
71 years and older: 19.9%
19 to 30 years old: 12.1%
31 to 50 years old: 10.1%
51 to 50 years old: 10.4%
71 years and older: 7.9%
Who Drinks Beer?
Major Market Segmentation, Canada, 2015
10. 10
Moderna Slides
Grand Corporate Strategy
Growth
Industry Strategy
Cost-Leadership.
Corporate & Industry Strategies
Grand Corporate Strategy
??
Industry Strategy
??
PAST FUTURE
11. 11
Moderna Slides
Strength
Strong distribution channels,
delivering products to
businesses,
government/private liquor
stores.
Opportunities
Consumer trends in industry:
increase in premium beer.
New niche markets: Lagers, low
alcohol and gluten free beers.
Weakness
Cash tied up in building new
breweries (Vancouver & Montreal)
Lost first-mover advantage by not
investing in premium craft brews.
Threats
Threat of new entrants include
independent craft breweries
continuously entering market.
S W
O T
SWOT Analysis
12. 12
Moderna Slides
Stability Strategy – Leaner Manufacturing
Retrenchment in streamlining operations by
divesting or updating old breweries or building
new ones to maximize economies of scale.
Growth Strategy – Merger & Acquisitions
Purchase independent craft breweries that are
developing product lines in niche markets for
related diversification.
Growth Strategy – Portfolio Differentiation
Develop related product lines to fill niche markets
and gain first-mover advantage.
Determination of Alternatives
13. 13
Moderna Slides
Chosen Alternative: Growth Strategy
Growth Strategy – Portfolio Differentiation
Develop related product lines to fill niche markets
and gain first-mover advantage.
• Creating niche beer for smaller target markets
reduces advantages of economies of scale.
• This strategy would boost market share and expand
focus to new customer bases. Although, profit
margins will not be as significant on
new niche products, this is still the best strategy.
• Maintain moderate corporate growth by opening new markets and
regaining lost market share
+
-
14. 14
Moderna Slides
Grand Corporate Strategy
Growth
Industry Strategy
Cost-Leadership.
Corporate & Industry Strategies
Grand Corporate Strategy
Growth
Industry Strategy
Focused Differentiation.
PAST FUTURE
17. 17
Moderna Slides
18%
14% Cost of Aluminium
Cost of Wheat
Lower prices in Cost of Goods
over previous 12 months
Bargaining Power
26% Cost of Crude Oil
Source: indexmundi, 2016
