SOLUTION TO SAKU

1. Saku Case Solution
KAPIL SHARMA
DEEPAK SHARMA
MALKHAN SINGH
SUBHASH CHAND
JATINDER VIRK
G RAJA

2. Product Portfolio on BCG Martix
BCG Matrix - Saku Brewery Product Portfolio
Market
Growth
High
Stars
Ciders & Long Drink
Question Marks
Energy Drink
Imported Bears
Low
Cash Cows
Domestic Bears
Soft Drinks
Imported Mineral Water
Dogs
Tume
Hele
Domestic Mineral Water
High Low
Market Share

3. Product Life Cycle Estimates
Bears
Domestic
Energy
Drink
Imported
Bears
Long
Drinks
Ciders Water
Soft
Drinks

4. Product To be Added in Portfolio
 Build More Saku Rock Hotels ( Free Advertising , as Budget was not in Saku Account)
 Add New Product in to the portfolio “Energy Drink” to complete the portfolio 2004 Onwards
and It could be a good market to enter at this time to capture market share

5. Product To be Removed from Portfolio
 Domestic Mineral Water can be dropped from the Portfolio
 it is spending almost 66000 Euros in advertisement and giving a loss of 58000 Euro in net
 with overall market for Domestic mineral water is declining @ rate of 12% / year
 Least margin product with overall margin of 7~8 % .
this clearly is a “Dog” category product which must be removed from market.
 Saku Bear Tume and Hele can be discontinued , despite having a large marketing budget of
2 % and 1 % respectively these product are in – ve growth YOY . This budget can be utilized
somewhere else or can be retained for other purpose.

6. Product To be Kept in Portfolio
 All Domestic and Imported Saku Bears ( Excluding Tume & Hele) Explanation for retaining the
Imported bear is attached in next slides as well as calculation in Excel Sheet.
 Imported Mineral Waters
 Long Drink and Ciders
 All Imported Soft drinks to complete the portfolio .
91.0 90.5 89.9 89.3 88.6
27.8 30.0 32.4 35.0 37.8
23.8 25.0 26.3 27.6 28.9
5.4 7.0 9.1 11.8 11.8
4.0 4.7
5.6
6.8 8.1
4.0 4.5
5.1 5.7
6.4
0.4 0.5
0.7 0.8 1.1
156.4 162.2
169.0
177.0
182.8
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
200.0
YR 2002 YR 2003 YR 2004 YR 2005 YR 2006
Volume
in
Million
Ltr.s
Estonia Drink product Market
Beer local Bottle Water Soft Drink Long Drinks Cider Beer Imported Energy Drink Total
Projections

7. Imported Bear Trend For Next 3 Years @
growth of Organization Imported Bear Volume to Capture 42 % market
Shree in 3 Years (Excel Calculation As Attached )
1189
273
805
-532
2057
472
805
-333
3559
817 805
12
-1000
-500
0
500
1000
1500
2000
2500
3000
3500
4000
Revenue (000s Euros) GM (000s Euros) Advertising (000s Euros) Contbn. (000s Euros)
Saku Imported Bear Financials Extrapolation
FY 2003
FY 2004
FY 2005
In Three Years this Product is Going to
be A cash Generator Even at Current
Adv Expenditure , Which can be later
on Removed slowly , No Need to Up
Prices as it is in Competition with
Hinekens @ 30Kr

8. Thanks