Carlsberg is Denmark's largest beer producer, controlling 63% of the domestic beer market. To boost sales of its Tuborg brand among younger consumers, the report recommends improving Tuborg's digital platforms, introducing gamification elements, and aligning the brand more closely with music. Specific tactics proposed include enhancing Tuborg's Instagram presence, launching a Tuborg-branded music app, and creating a Snapchat filter featuring different artists to strengthen Tuborg's image as the party beer of choice. The strategy aims to better engage younger target audiences through an omnichannel marketing approach while maintaining segmentation between Carlsberg's various product lines.
2. A Little History….
● J.C. Jacobson founded Carlsberg in 1847 on Valby Hill in Copenhagen.
● His son Carl, was the namesake of the company
● Jacobson, a lover of science and progress, made all discoveries found in his lab available to the public because he
believed he had nothing to fear from competitors.
● Carl travelled to Bavaria to learn how they brew beer, and when he made suggestions to his father, the two fought
and had a falling out
○ This cause Carls to start a rival brewery next door to his father’s
● Before his death, J.C. and Carl made amends, but J.C. left his brewery to the Carlsberg Foundation, not Carl
○ A few years later the two breweries merged
● Today, Carlsberg is one of the four largest beer producers in the world
○ Dominant in Scandinavia
3. Denmark PEST Analysis
Political
● Low level of government
intervention
○ Alcohol regulations
● Laws disallowing breweries to
monopolize their products at
restaurants
● Beer tax
○ 10% in the final product
Economic
● Low employment rate
(6.3%)
○ More people can
afford beer
● VAT tax
● Wealthy country
Social
● Aging population, more old people than young
people
● 60% of Danes attend at least one concert per year
● Pregames
● Increasing health trend decreases demand for beer
● Danish pride of successful Danish companies
Technological
● Country has strong digital infrastructure
● High education level, high technology literacy
rates
● Alcohol culture with youth
○ 18-29 year olds
○ Highly involved in social media
4. Carlsberg SWOT
Opportunities
● Introduce a high ABV beer, which the company
currently does not offer (Tuborg BLACKED)
● Improve digital platforms such as their website,
Facebook, Instagram, and Twitter
● Gamification of drinking
Strengths
● 55% of the beer market in Denmark
● variety of product offerings other than beer
● good sustainability strategy
● responsible drinking campaigns
● recognizability with J-day and holiday beer
Weaknesses
● Less innovation in recent in terms of product
offerings
Threats
● Losing battle to liquor within target crowd
● Smaller craft beers are becoming more popular,
● Aggressive pricing from competition in Denmark
5. Royal Unibrew SWOT
Opportunities
● Break into the craft beer market
Expand product offerings by acquiring more brands
● Acquire more recognition in markets outside of
Denmark
Strengths
● Range of product offerings beyond beer
Weaknesses
● Little brand recognition outside of Denmark
● Difficult to increase market share in Denmark where
Carlsberg is so closely associated with the national
identity
Threats
● Growing preference for liquor above beer amongst
younger people
● Difficult to compete with other industry giants that
have global recognition
6. Heineken SWOT
Opportunities
● Continuing to buy smaller beer brands
in order to increase the company’s
portfolio
● Continuing to expand their craft beer
offerings
Strengths
● Widespread brand recognition
● Geographically diverse in terms of
where their manufacturing facilities
are located
● Product diversity in terms of the types
of beers offered
● One of the largest global beer brands
in the world
Weaknesses
● Maintaining positive image globally can
be challenge since the company is so
large
Threats
● Growing preference for liquor in
younger markets
● Increased taxes and government
regulations surrounding the sale of
alcohol in certain locations
7. Porter’s Five Forces
- Competition from existing rivals - MODERATE
- Royal Unibrew and Heineken are major competitors in Denmark
- Carlsberg holds 63% of beer market, 50% of soft drink market within country
- Threat of Substitute Products - HIGH
- Beer easily substitutable with other brands and other refreshments
- Little product differentiation causing lack of customer loyalty
- Bargaining Power of Buyers - MODERATE
- Many buyers, but also a large number of competitors
- Only a few competitive substitutes to Carlsberg within beer
- Bargaining Power of Suppliers - LOW
- Low supplier power due to minimal brand strength
- Low switching costs for producers
- Highly substitutable ingredients
- Threat of New Entrants - LOW
- Hard for smaller brands to enter the market because it’s difficult to differentiate beers and
Carlsberg’s strong market share
- Carlsberg has strong brand strength
8. Five Forces Conclusion
Carlsberg currently holds a strong place in the market in Denmark
● 63% of the beer market and 50% of the soft drink market.
● Customer preferences could shift towards craft beer, for example, and away from Carlsberg and Tuborg,
which would hurt the company
● The threat of substitutes is the most significant because there is little product differentiation and little
variation in beer prices, meaning that customers could easily buy different brands.
○ In addition, many customers switch from beer to other alcoholic beverages away from beer as a
substitute with no switching costs
● Unless customer preferences shift dramatically, there is not expected to be a shift in the near future.
10. Strategy for Success
Needs Based Strategy
Find target groups for each of
Carlsberg’s major brands,
nationally and internationally, and
cover all of their needs
● Focus: Tuborg as a younger brand
○ Tuborg relevance
○ Interactivity with brand
○ Awareness of brand
○ Increase Digital and Physical traffic
○ Build a base of consumers
11. Activities
In order to connect with a younger crowd, Carlsberg should aim to make
Tuborg the party drink of choice through improved digital landscapes and
gamification of drinking.
12. Improve the Instagram Platform Introduce a Tuborg Music Snapchat
Special edition cans featuring different artists
MØ Guldggreng
Lukas Graham
14. Fits
● The activities are aimed to enhance Tuborg’s current digital platforms.
● By improving each of the digital mediums, Carlsberg can engage in
omnichannel marketing
● Through the introduction of a lighter beer and a higher alcohol content
beer, Carlsberg covers all of their customers’ needs within a particular
segment
● Market segmentation allows products to not compete with one another
between target groups
15. Tradeoffs
● By focusing on so many target groups, Carlsberg gives up the
image of being a small craft brew
● By trying to reach an international audience, Carlsberg gives up
being associated with the national identity in Denmark.
16. Conclusions
● Currently, Carlsberg has a wide variety of product offerings
● By finding target groups for each of the major brands, and adopting
activities to meet all of the needs of each of these groups, we believe
that Carlsberg will be able to increase beer preference and boost sales
● This report has focused on the target group for Tuborg, which has
been defined young party goers
● By improving digital landscapes, Carlsberg will be able to make Tuborg
the party drink of choice
17. Implementation
● Improve the Instagram Platform
○ Align Instagram with the website in terms of
aesthetics
■ Utilize student reps
#tuborgcampaign
Giveaways if
someone
reaches X
amount of likes
● Tuborg Music App
○ All-purpose app
○ Gamification
EMMA
J.C. Jacobson founded Carlsberg in 1847
He named the company for his son Carl
Carl become a lover of studing the sciene of brewing and he went to Bavaria to study this
When he returned he stated suggesting changes to his father, which his father really didn’t like and the two stopped speaking
So Carl decided to open a rival brewery next door.
Jacobsen left his brewery to the Carlsberg foundation but a few years later the breweries merged
Today Carlsberg is one of the four largest beer producers in the world
EMMA
Political
There is generally a low level of government intervention in the economy
However, there are laws that state that breweries can’t monopolize their products at restaurants
There are also alcohol regulations - such as the government raising awareness about effect on health which could lead to lower demand
There is an excise tax on beer
Economic
The unemployment rate is low
Denmark is a relatively wealthy country
High VAT tax at 25%
Social
Denmark has an aging population
There are increasing health trends which decrease the demand for beer
Trend of young people moving away from beer, in favor of hard alcohol
Technological
Denmark has strong digital infrastructure
There is a high educational level and high technological literacy
There aren’t many changes going on in the technological process of beer making
Cassie
CAS
CAS
KIP
Threat of Substitute Products
Little variation in beer costs
Low switching costs for customers
KIP
KIP
MAUR
Focus on Tuborg as a younger brand rather than focusing on many different segments:
Make Tuborg relevant for the consumer with digital services
Entertain, inform, and interact with live music consumers
Expand awareness of Tuborg brand
Increase Digital and Physical traffic
Build a base of consumers to use as an asset towards tuborg on trade and off trade partners
Using digital landscapes and gamification of drinking, we can connect with a younger crowd.
MAUR
MAUR
Map of venue and concert times
E-ticket, and payment system
Drinking games
CAS
KIP
Alienate current customers
CAS
MAUR
Include more photos with people enjoying Tuborg at music festivals and parties
Include videos of different artists that they have promoted
Align Instagram with the website in terms of aesthetics
Utilize student reps
#tuborg campaign with giveaways if someone reaches a certain amount of likes
All encompassing app that takes over the existing platforms for music festivals in Denmark and eventually internationally
Festival maps, schedules, mobile tickets, utilize mobilepay software to allow customers to pay for beer with the app
Live calendar smaller music events around Copenhagen
Gamification: every cap you scan gets you more points
Utilize student reps to take snaps of concerts and festivals in exchange for rewards with Tuborg
Special edition cans featuring different artists
Have artists on snaps drinking the beer as a feature
Snapchat filter, so people watch snaps and etc.
Introduce a light beer for health conscious youth and a high alcohol content beer to compete with liquor.