Murphy Brewery faces stagnating domestic sales and limited production capacity. To expand globally while maintaining its Irish brand, the document recommends that Murphy's (1) expand production facilities to other countries like the US to build brand awareness internationally and resolve capacity constraints, and (2) create a global advertising campaign showcasing its Irish heritage to increase brand image and profit growth worldwide. Alternative strategies like regional ad campaigns or domestic sponsorships present higher risks of failure or brand damage.

1. Murphy Brewery
Ireland, Ltd
Group 2:
Orson Chi - Hughes Guan - Peter Leung - Danny Nguyen - Ken Nguyen - Shawn Sahihi - Matthew Tran
October 14, 2014

2. History Throughout the Ages
● 1856 - James J. Murphy and Company Limited founded in Cork City, Ireland
(James, William, Jerome, and Francis)
● 1867 - 4 Cork distilleries combined to create Cork Distilleries Company
Limited
● 1960 - Murphy’s started facing financial problems
● 1966 - Combined with 2 other distilleries to create Irish Distillers Limited
● 1975 - Murphy’s licensed with Heineken to create Heineken Ireland Limited
● 1982 - Heineken invested 1.6 million pounds after Murphy’s faced recession
problems
● 1983 - Heineken purchased Murphy’s and created Murphy Brewery Ireland
Limited
● 1985 - Murphy’s Irish Stout launched in the U.K.
● 1992 - Murphy’s became the 1st brewery to achieve the ISO 9002 mark for
operations in Europe; draughtflow cans launched
● 1995 - Draughtflow bottles and Murphy’s Irish Amber launched in Germany
and France
● 1996 - Murphy’s Irish Amber and advertising campaigns launched in
Hungary, Czech Republic, Finland, and in the U.S.

3. Problem
How can Murphy’s employ a strategy to expand
globally but continue to maintain its authentic
Irish brand?
● Target market
● Brand awareness
● Advertising, promotion, product line, and
pricing approach

4. Strengths
● Irish stout (Murphy’s superior brand)
o Rated 36-38 European units of
bitterness while Guinness stout is
rated 45-48 and Beamish stout is rated
40 according to a study conducted by
the European Brewery Convention
● Murphy name (most common surname in Ireland)
● Supported by Heineken (2nd highest in market
shares)
o Adds credibility
o Helps financially
o Increases industry knowledge
o Lager complements stout
● Demand in foreign markets are increasing
o Irish Red Ale

5. Weaknesses
● Sales in the domestic market are stagnant
○ Limited to only Murphy’s Irish Stout
○ Unrealized potential of lower alcohol (Murphy’s Red Ale)
● Current facility is at near capacity (Murphy’s Brewery at Lady’s Well in Cork)
● Small tactical advertising and promotion schemes rather than large-scale campaigns
● Murphy’s has a “niche” image

6. Opportunities
● Irish Red Ale expansion
● New facilities in foreign markets
● Foreign market has potential for high
growth
o US Market
● Popular in Irish pubs
o Focus on promotions in pubs

7. Threats
● Brand loyalty towards Guinness
● Damaging effects if the Guinness-Grand Met merger prove to be a success
● Beamish competes for second largest stout in Ireland
● Consumers in other markets have different preferences
o https://www.youtube.com/watch?v=jzwP_KqgduE

8. Alternative Courses
● Expand productions to other countries including the US
● Create global advertising campaign
● Ad campaign for specific region
● Promote in the domestic market by endorsing and
sponsoring local sports teams in Ireland

9. Analysis - Alternative 1
Expand productions to other countries including the US
Pros
● Lower the cost of distribution (manufacturer to pubs)
● Builds brand awareness
● Increase focus in international markets
● More presence in international pubs
● Allocates capacity and resolves constraints
Cons
● Different taste
● Quality control
● Costly to implement

10. Analysis - Alternative 2
Create a Global Advertising Campaign
● Previous ad campaign launched in the UK increased the
volume of sales by 191,682 barrels
● Remake a similar campaign and push into other international
markets (US)
● Substantial amount of market research should be conducted
● High risk, high rewards
● https://www.youtube.com/watch?v=jb5IPE3tzXQ
● https://www.youtube.com/watch?v=PbDjXh61wmQ
Pros
● Increase brand image and awareness
● Future customers
● Profit growth
● Global opportunities
● Creativity and innovation
Cons
● Advertising and market research can be costly
● Uncertainty of success (potential to damage the brand)

11. Analysis - Alternative 3
Ad campaign for specific region
● https://www.youtube.com/watch?v=f5I_UGnnr1Y
● Target Canada
Pros
● Attract new customers
● Brand Awareness
● Better fit for the region
● Stout suited for colder climates
● Lifestyle
● Government incentives
Cons
● Cost of releasing an ad campaign
● Risk of failure

12. Promote in the domestic market by endorsing and sponsoring local
sports teams in Ireland
● Only 5% market share in the Irish market, Beamish is beating Murphy’s in spot for second
place
● Sponsorships target amateur and youth sports teams to build brand loyalty with the younger
generation
Pros
● Successful sponsorship
o Murphy’s Irish Open and English Open
Golf Championship
● Increase brand awareness in the domestic market
● Build brand loyalty by increasing brand exposure
Cons
● High risk due to Guinness’ high brand loyalty
● Guinness has established sponsorships
● Direct competition with Guinness in this campaign strategy
Analysis - Alternative 4

13. Recommendations
● Alternative one
o Expand productions to other countries including the
US
● Alternative two
o Create global advertising campaign

14. References
● Cravens, David W., and Nigel Piercy. "Murphy Brewery Ireland, Limited." Strategic Marketing.
9th ed. Boston (Mass.): McGraw-Hill, 2006. 618-19. Print.
● http://en.wikipedia.org/wiki/Murphy%27s_Brewery
● https://www.youtube.com/watch?v=PbDjXh61wmQ
● https://www.youtube.com/watch?v=jb5IPE3tzXQ
● http://books.google.com/books?id=3rUlRd3MqD8C&pg=PA178&lpg=PA178&dq=Like+the+Murp
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