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In: Computers and Technology

Submitted By vinay5890
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The Strategy for SabMiller for the next 18 months can be split into three phases. In the first 6 months we can tap the latent demands arising from demographic distortions in the Wellington state. As there is migration of workforce involved in agriculture to the Urban areas and rising disposable income in the urban areas with a greater purchasing power the urban population demands more of mainstream/premium segment beers compared to economical segment which is now seen as an inferior product whereas the reduction in purchasing power of rural population augurs increase in demand in the economical segment beers and vice versa in other segments. This demographic distortion in the demand pattern can be tapped by gradually diverting a chunk of Mainstream and Premium segment beers production from rural outlets to urban and economical segment beers production from urban to rural without needing any increase in the production capacity and thus resources can be utilized properly. The excess supply of the mainstream & premium segment beers garnered from the above strategy can be launched in the Bar and Restaurants in the urban areas where SabMiller never had a presence. With the excess supply we have a provision of introducing penetrative pricing in the B&R segment by competing with the other competitors. To position the mainstream and premium brands in the B&R , we can provide the product merchandized stickers to displayed on their transparent beer pint glasses ,washrooms and payment desk ,hence capturing the consumer’s attention. In the next 12 months apart from monitoring and carrying the above strategies SabMiller can launch beer chocolates which has seen an unprecedented growth in the countries like South Korea (19% growth) , the distributors can be given a provision of returning back the unsold beer stock which can be used prudently in the production of beer…...

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