Download ICDM CW - Carlsberg Malaysia PDF

TitleICDM CW - Carlsberg Malaysia
TagsOligopoly Demand Beer Perfect Competition
File Size1.1 MB
Total Pages24
Document Text Contents
Page 12

9


3.3.2 PRODUCT STRATEGY

As segmented pricing strategy is implemented, Carlsberg Malaysia adopts multi-

market approach. In an Islamic country like Malaysia, Carlsberg Malaysia

marketing strategy is mainly focused on non-Muslim consumer groups such as Indian

or Chinese community and entertainment groups especially in bar restaurants, discos

and pubs.

In order to provide a variety of choices to those consumer groups, Carlsberg Malaysia

manufactures and distributes different brands of beer such as Carlsberg Gold,

Carlsberg Special Brew, SKOL, Jolly Shandy and Danish Royal Stout. For instance,

compared to SKOL (lager), Carlsberg Gold is pilsner which incurs higher material

cost as it contains additional materials for stronger tastes. Hence, the Carlsberg Gold

should be charged at a higher price compared to SKOL. In short, the differences of

material cost in each beer production will also affect their pricing decisions.

Besides, Carlsberg Malaysia produces different beers with different alcohol contents.

For example, Carlsberg Malaysia produces Jolly Shandy which has only 1% alcohol

content and it is very suitable for teenagers and persons who don’t drink beers. For

consumer groups who prefer strong flavours and bitterness, Carlsberg Malaysia also

produces Carlsberg Special Brew which contains 8.8% alcohol content. Therefore,

differences of alcohol content in each beer will result in different prices.

As shown in Illustration 7, Carlsberg Malaysia comes up with beer products of

different size (volume) for customers’ convenience such as can, pint bottle (medium)

or quart bottle (large). For example, a Carlsberg Beer can with 320ml volume is

suitable for those consumers who prefer minimal alcohol consumption while a

medium Carlsberg Beer bottle with 640ml volume is suitable for beer lovers during

entertainments. Hence, volume differences due to different bottle size results in

different price charged on each beer products.



Illustration 7: Carlsberg Beer Products with different size (volume)

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