Analysis Technique

As part of our marketing study we tackled three questions related to this product in order to truly understand the history and marketing occurances of this case study. We learned a great deal in anazlying this product and can go on to analyse other campanies and products in the same manner using the techniques we have learned here. Here follows the three questions. 1.

External environmental analysis using the PESTLE analysis technique. There are different factors in the macro-environment that will have effect on the ecisions of the managers of any organisation. Demographic change, government, tax systems, new laws, trade barriers, exchange currency, living standards are all examples of macro changes. To analyse these factors managers can use different tools and techniques that will help with analysing the macro environment and PESTLE is one of this techniques.

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PESTLE analysis is used to identify and summarise environmental influence on an industry or organisation, it identifying the political, economic, social-culture, technological, legal and environmental factors that impact n an organization (the name PESTLE is a shortcut from first letters of the factors).

This provides a way of auditing the influences that have impacted on an organization or strategy in the past and how they might do so in future

Strengths typically derive from skills and capabilities that enable the firm to develop and implement strategies. Weaknesses will exist where skills and abilities do not allow the company to achieve its objectives. Opportunities and Threats are external and therefore the analysis will e based on external environmental factors. Opportunities may exist to develop markets or segments or to produce new products or variations of existing products. In other words Opportunities are phenomena or events that, if exploited, may improve the firms performance.

Threats are the opposite – they are phenomena or events that make it difficult or impossible for a firm to achieve its objectives.

Strengths Uniqueness of product, exotic Femsa long history as producer and distributor Interest in expansion and product success Management Commitment ? Premier lager in a clear distinctive bottle Sol well established, recognised and popular in Mexico since 1899 to its image Lime in the bottle identified and separated it from current lagers content and low gas Authentic Mexican Lager Weaknesses Price integral High Alcohol Local beers have stronger familiarity and loyalty with Uk customers long term Ineffective marketing campaign Market research inefficient Inadequate distribution Distance that product has to travel Single distributor for the entire I-JK market Distribution to London trend setting venues only

Popular Corona brand as competition Mexico perceived as unattractive Competitive regional & local larger suppliers & brewers Light coloured lagers associated as weaker less tasty. Opportunities Possible to expand to other big cities within Uk and even Europe Possible to target women more, with this light refreshing beer. Easy for Femsa to use its pay for good marketing department. Opportunity to be involved in sporting, recreation or leisure events to promote brand as a sunny light refreshing drink.

Opportunity to increase brand’s overall equity. Opportunity to strategically reposition itself to a new target audience, for example less yuppies more students.

Threats Competition Exchange rates and instability of Peso Decline in overall beer sales Socially conscious drink driving climate Current Marketing Mix Product: Premium lager beer brewed since 1899, light and refreshing, clean, crisp, smooth, alcohol strength high, unique, sold with lime, clear bottle. Promotion: Not as much TV advertising as initially in 1989, or on premises promotions such as happy hours promotions with hats, t’shirts etc. Lack of promotion was causing a ecline in the market.

It was inicially aimed at the UK particular miuppies” type, typically aged between 18 to 34 who favoured Sol’s new exotic and unique flavour attributes, but this quickly starting to decline as they moved onto the next fashion image product. Price: High price which equaled its image. The high price was to attract yuppy types who wanted to be seen spending more on their beer as a superior show off factor.

Londoners were able to afford this luxury and expected to pay to have a good time in clubs. Place: Sol was the product which was primarily sold at selected trend setting venues in London which included wine bars, discos, brass clubs and restaurants. Positioning Strategy 1994 Femsa hired a marketing agency to do focus group study However the feedback received was negative therefore Sol needed to be repositioned as a beer that was less gimmicky and more as stable brand.

Femsa did not use the advertising that the first global marketing agency they hired came up with, and used in house research and another smaller agency instead. proceed with, and started asking new questions for the direction of Sol.

The following findings on SOL from the market research campaign: – Focus on the act that it was a well known premium bottled lager and a trendy brand – Promote the characteristics such as refreshing, light in character, good clean taste, low in gas, smooth, intoxication abilities and easy to drink – Less emphasis on the country of origi.