Grolsch Analysis
In November of 2007, SAB Miller purchased Royal Grolsch N.V. to develop their premium beer product line. Grolsch has two main brand families: Grolsch premium Lager and Amsterdam. The takeover gives SAB Miller the ability to attack the premium beer market with an established and standardized brand that has grown globally (21st largest global brand in 2007) with a differentiated taste and packaging strategy. In this analysis, I will evaluate the reasons for Grolsch’s global expansion, their ability to adapt their pricing, distribution, advertising, and distribution to global demand and their strategy to evaluate the potential of entering new markets with MABA (Market Attractiveness, Business Assessment framework). I will
Grolsch’s net sales grew an average of 11% annually from 2000 to 2005 (Exhibit 4). As of 2007, international volume represented 51.5% of the company total and Grolsch sold their beer products in about 70 export markets.
Adaptation Strategy
The key elements of the Grolsch adaption strategy were in pricing, promotion, operations, and distribution channels. Grolsch wanted to position their brand as a premium lager and charged a higher price in comparison to the Netherland standard lager cost. However, Grolsch priced its products at a discount in 3 of its 6 largest foreign markets (US, Canada, and Australia) in comparison to competing imports in order to build market share. In France and Russia, Grolsch premium Lager was priced significantly higher because the Amsterdam was the key volume producer in these areas. Grolsch also adapted their advertising and promotion strategy to maximize their presence in their host country. They relied on the attractive image of beer from Northern Europe for most of their promotion but the company realized that a good portion of consumers from other countries (like the US) may not relate to or understand this concept. For example, in the US, Grolsch used the swing top bottle accessory in a “Got that swing” commercial during NFL football games. This theme made more sense than using the edgier UK commercials. Grolsch also consolidated their