The document provides a strategic plan for expanding the global operations of Grolsch, a subsidiary of SAB Miller. It analyzes Grolsch's current situation, issues, and options. It recommends entering new markets in South Africa, Brazil, and China using different entry strategies tailored for each market. For South Africa, it proposes utilizing SAB Miller's existing facilities and distribution channels. For Brazil, it recommends licensing production to a local company and providing promotional support. For China, it suggests leveraging SAB Miller's joint venture with a local brewer for distribution and promoting in high-quality locations. Financial projections through 2017 show increasing sales volumes and profits in each market, with the overall plan achieving a positive cumulative cash flow and

1. Growing Globally
1

2. Table of contents
1.Current business situation
- Independent subsidiary of SAB Miller
- Current global strategy :
Key market, 4P, SWOT
- TOP 10 Quantitative goal
2.Issues & Options
- Target countries
- Return on Investment
3. Recommendation
- Go to new market strategy
4. Conclusion
2

3. 1-1. Background
SAB Miller
(Second largest brewer)
Acquired by
SAB in 2007
SAB Miller Strategy
 Capture growth in beer volume in the
developing markets
 Develop attractive portfolio
 Keep good operation
 Leverage global scale
New CEO
Rob Snel
Royal Grolsch N. V.
(51st largest brewer)
Grolsche Bierbrouwerij Netherland
Grolsch International
Expect to sell Grolsch premium beer in
Latin America and Africa where SAB
Miller has got a strong route to market
Grolsch(UK) Ltd.(JV with Coors)
3

4. 1-2.Current Global Strategy
Vision: The brewing industry has failed to keep pace with the changes in
consumers’ preferences for drinks. This has created a mainstream
category that is under pressure from other drinks. Grolsch believes in
the strength of beer in the drinks market.
Mission: Grolsch is going to break through the mainstream and restore beer’s
premium status.
Focus on cost structure and
efficiency
Focus on growth in full-grown
beer market
1
Innovation department, R&D
1
Internal logistics
2
Marketing investment
2
Decrease in overhead expenses
3
Expansive on-trade policy
3
New facilities
4
Target Growth core market
4
Decrease in cost price
5
Vision and mission
6
Market position
7
Brand campaign
8
New Design/New concepts
Reference: Exhibit 8
Strategy Goal
Global Top 10
Brand
4

5. 1-3.Current Marketing Strategy
Marketing Strategy (4P)
Netherland
US
Product
-Grolsch:
Premium
beer(Swingtop)
-Amsterdam: nonpremium beer
-Grimbergen:
Imported beer
-Grolsch:
Premium
beer(Swingtop)
-Amsterdam: nonpremium beer
-Grimbergen:
Imported beer
-Grolsch:
Premium
beer(Swingtop)
-Amsterdam: nonpremium beer
-Grimbergen:
Imported beer
-Grolsch:
Premium
beer(Swingtop)
-Amsterdam: nonpremium beer
-Grimbergen:
Imported beer
Price
Standard:
Discount:
Comparable:
Higher:
Placement/ Price promotion,
Distribution PerfectDraft
dispenser system,
on-premise
channels
Distributed by
Anheuser-Bush
Grolsch UK
Own local
distribution
Promotion
Got that Swing
Green Light District
campaign
Advertising
UK
France
5

6. ‹#›

7. 1-5.SWOT Analysis
Strength
-SAB Miller’s Strong route
channel and global
production
-Grolsch 21st brand and its
taste and quality
Weakness
-No approach to
developing market
-Lack of price elasticity
Opportunity
 Leverage SAB Miller
-Increase Premium lager
channel to promote
consumption
Premium beer
-Expand beer consumption
in developing market
 Access to developing
market
Threat
-Market shrinking in
developed market
-Price pressures
-Non beer drinks
 Target developing
market
 Cost reduction
 Focus on Premium
beer
Propose to change the current strategy
7

8. 2. Issue and options
Issue
 How to reach Global Top 10 (more than 4.9 M hl volume )in non-domestic market
Option 1
Change current strategy
Target
MKT
Growth
Match with
SAB Miller’s
strategy
Option 2
Keep current strategy
Target
Current and
emerging market
Growing
Leverage SAB
Miller asset and
meet their
expectations
>
Developed market
MKT
Growth
Shrinking
Match with
SAB Miller’s
strategy
No planned
8

9. 3-1. Recommendation
1) Which countries should our
company enter into?
3) How do we create business
strategy?
2) How do we enter local markets
(JV, Acquisition, Start-up)?
4) How is business return?
9

10. Market
Selection
Entry
strategy
1) Market Selection
Business
Strategy
Financial
plan
MABA Framework
MA
Potential
Market
Volume
• Volume of Premium
• Volume Growth of Premium
• Price Differentiation
• Language
• EU Relation
• Transport in EUROS
• GDP per capita
BA
• Volume of Grolsch
• Volume Growth of Grolsch
• Variable Commercial Contribution
• Grolsch Share
Market
Selection
Imported
Brands
Growth
Distance
10

11. Market
Selection
Entry
strategy
1) Market Selection
Business
Strategy
Financial
plan
Potential Market Volume (000s hl)
300,000
Potential
Market 250,000
Volume 200,000
Potential
150,000
Total
Consump.
=
Major Co’s
sales
-
100,000
Imported
Brands
Growth
3.5
3.0
2.5
2.0
1.5
1.0
bil. litre
0.5
0.0
2000
2001
2002
2003
2004
2005
Western Europe Imported
Share
Eastern Europe Imported
Share
North America Imported
Share
Latin America Imported
Share
Asia Pacific Imported
Share
Australasia Imported
Share
Africa and Middle East
Imported Share
USA
CANADA
POLAND
SOUTH…
COLO…
VENEZ…
ITALY
FRANCE
UKRAINE
MEXICO
SOUTH…
AUSTR…
THAIL…
BRAZIL
SPAIN
RUSSIA
UK
JAPAN
CHINA
-
GERMA…
50,000
3% growth
7% growth
6% growth
15% growth
8% growth
No growth
11% growth
11

12. Market
Selection
Entry
strategy
1) Market Selection
Distance
CHI A
N
U SA
G ER M A N Y
B R A ZI
L
RU SSI
A
JA P A N
UK
M EX I O
C
SPAI
N
P O LA N D
S O U T H A FR I A
C
V EN EZU ELA
C AN AD A
U KRAI E
N
FR A N C E
TH AI N D
LA
I A LY
T
C O LO M B I
A
A U S T R A LI
A
S O U T H K O R EA
Go to …
G D P per
M em ber
capia i 2005
t n
of EU
1,
731
No
42,
516
No
33,
543
Y ES
4,
739
No
5,
337
No
35,
781
No
38,
122
Y ES
7,
667
No
26,
056
Y ES
7,
963
No
5,
234
No
5,
445
No
35,
088
No
1,
829
No
33,
819
Y ES
2,
690
No
30,
479
Y ES
3,
393
No
33,
948
No
17,
551
No
Business
Strategy
Language
( ,G er an,D ut
EN
m
ch)
No
Y ES ( )
EN
Y ES ( R )
G
No
No
No
Y ES ( )
EN
No
No
No
Y ES ( )
EN
No
Y ES ( )
EN
No
No
No
No
No
Y ES ( )
EN
No
Financial
plan
Tr
anspor
t
Expensi
ve
C heap
C heap
Expensi
ve
A ver
age
Expensi
ve
C heap
Expensi
ve
A ver
age
A ver
age
C heap
Expensi
ve
A ver
age
Expensi
ve
C heap
Expensi
ve
A ver
age
Expensi
ve
Expensi
ve
Expensi
ve
12

13. Market
Selection
Entry
strategy
2) Entry Strategy
Business
Strategy
Financial
plan
South Africa
Monopoly market
No.1: SAB Miller (MS 98%)
Brazil
China
Occupied by major brewery groups
Competitive market
Number of beer company: 800→300 (M&A)
No.1: Anheuser-Busch InBev : MS 70%
No.2 : Grupo Schincariol : MS11.6%
Grope of Kirin
No.3: Petrópolis brewery : MS9.8%
No.1: Snow beer (華潤雪花) : MS17.8%
JV with SAB Miller
No.2 : Tsingtao(青島): MS13.2%
No.3: Anheuser-Busch InBev (Belgium)MS11.9%
Web Data 2009
BRICs経済研究所レポート2006
13

14. Market
Selection
Entry
strategy
2) Entry Strategy
Business
Strategy
Financial
plan
Fully-owned
subsidiaries
Joint
Venture
Offshoring
Licensing
Exporting
Investment
High
Middle
Middle
Low
Low
Local
customer
Access
High
High
Middle
Low
Low
Distribution
Channel
High
Middle
High
Low
Low
Management
Control
High
Middle
Middle
Middle
Low
Utilize
SABMiller’s
facility
utilize channel of
JV (SABMiller &
Snow beer)
License out to
Petropolis
14

15. Market
Selection
Entry
strategy
Business
Strategy
Financial
plan
3) Business Strategy for S. Africa
Utilize SABMiller’s facility by adding Grolsch’s brewery line,
Grolsch bar for promotion
15

16. Market
Selection
Entry
strategy
Business
Strategy
Financial
plan
3) Business Strategy for S. Africa
Utilize SABMiller’s facility with additional brewery construction
 Homemade alcohol is common
 More PPL like to drink beer at bar
 Beer has cool & sophisticated image
Grolsch’s original taste as
imported product
(dry and bitter, refreshing)
Product
Target: Middle-High class
 Economic growth
 More PPL love premium beer
 Beer price
(Domestic75-120JPY, Imported150JPY)
Price
Premium imported beer
120JPY / 350 mL can
 SABMiller is No.1 in Africa
 SAB has brewery & distribution
channel
Place
Utilize SABMiller’s channel &
brewery
Grolsch bar
 Need differentiation from SAB
Miller’s brand
Promotion
Grolsch bar with premium
atmosphere
16

17. Market
Selection
Entry
strategy
Business
Strategy
3) Business Strategy for Brazil
Financial
plan
License out to a local company with strong promotional support

18. Market
Selection
Entry
strategy
Business
Strategy
3) Business Strategy for Brazil
Financial
plan
License out to a local company with strong promotional support
 Preference of strong alcohol
 Female workers love beer
Grolsch’s original taste
Target: Guests imported product as
of Events
Product
(dry and bitter, refreshing)
 Economic growth
 More PPL love premium
 Beer Price
(Domestic100-130JPY, Imported 260JPY)
Price
Premium imported beer
150JPY / 350 mL can
 No related company of SABMiller
 Maintain management power
Place
License out to a local
company (Petroporis)
Promotion
Being an official sponsor of
Samba carnival, Football
events
 Huge demand while events

19. Market
Selection
Entry
strategy
Business
Strategy
3) Business Strategy for China
Financial
plan
Utilize channel of JV (SABMiller & Snow beer)
Promotion at high quality place
Collaboration with Snow Beer
Promotion at supermarket
& restaurant
19

20. Market
Selection
Entry
strategy
Business
Strategy
3) Business Strategy for China
Financial
plan
Utilize channel of JV (SABMiller & Snow beer)
Promotion at high quality place
 Preference of light taste
 Economic growth
 More PPL love premium
 SABMiller has JV
 SABMiller has JV
Product
Localized light taste
Premium range
Price
Premium imported beer
100JPY / 350 mL can
Place
Utilize SABMiller’s JV channel
High quality supermarket
Famous restaurant
Promotion
Differentiate SABMiller
TV commercial,
at site promotion (girls)
Target: People love to share time

21. Market
Selection
Entry
strategy
3) Business Strategy
Global Strategy
Proposal
Current
Market
全社
(Europe)
2008
2010-2016
STEP 1
Business
Strategy
Financial
plan
2017 Goal
STEP 2
Maintain current positioning (Premium)
South
電力・通信事業
Africa
Additional
line in
SABMiller
Co-promotion with SABMiller
建築・道路事業
Brazil
License out to
Local Co.
Intensive promotion support
樹脂事業
China
Marketing research
World
Top 10 Brand
Co-promotion with JV
21

22. Market
Selection
Entry
strategy
4) Financial Plan
Benefit
Business
Strategy
Financial
plan
Investment
Revenue assumption = (Marginal consumption) *
(Premium Lager ratio 16.4%) * (Price 120yen/can)
EBITA = Revenue * EBITA Margin 26%
Revenue assumption = (Total consumption) *
(Petropolis share 9.8%)* (Premium Lager ratio
16.4%) * (License fee 5euro/hl)
EBITA = Revenue * EBITA Margin 21%
Revenue assumption = (Marginal consumption) *
(Snow beer share 18%) * (Premium Lager ratio
16.4%) * (Price 100yen/can)
EBITA = Revenue * EBITA Margin 5%
Investment is
referred from an
investment
case, being
estimated 5
billion yen for
0.4 million hl
beer production
Reference: Sapporo beer
factory investment in
Vietnam
22

23. Market
Selection
Entry
strategy
4) Financial Plan
2008
S outh Investm ent(m i. JP Y )
l
-2,
660
A fri
ca V ol e(m i. hl
um
l )
0.
028
R evenue(m i. JP Y )
l
957
EB IT A (m i. JP Y )
l
249
B razi Investm ent(m i. JP Y )
l
l
0
V ol e(m i. hl
um
l )
0.
404
R evenue(m i. JP Y )
l
242
EB IT A (m i. JP Y )
l
51
C hi
na Investm ent(m i. JP Y )
l
-9,
952
V ol e(m i. hl
um
l )
0
R evenue(m i. JP Y )
l
0
EB IT A (m i. JP Y )
l
0
CF
-12,
313
IR
R
Financial
plan
2009
2010
2011
2012
2013
2014
2015
2016
2017
0.
068
2,
343
609
0.
103
3,
514
914
0.
137
4,
686
1,
218
0.
146
5,
012
1,
303
0.
156
5,
361
1,
394
0.
167
5,
734
1,
491
0.
179
6,
133
1,
595
0.
191
6,
560
1,
706
0.
205
7,
016
1,
824
0.
830
1.
277
1.
747
1.
794
1.
842
1.
891
1.
941
1.
993
2.
046
498
766
1,
048
1,
076
1,
105
1,
135
1,
165
1,
196
1,
228
105
161
220
226
232
238
245
251
258
-100
0 0.
428
0.
571
0.
600
0.
630
0.
661
0.
694
0.
729
0.
766
0 12,
242 16,
322 17,
138 17,
995 18,
895 19,
839 20,
831 21,
873
0
612
816
857
900
945
992
1,
042
1,
094
614
1,
687
2,
255
2,
386
2,
526
2,
674
2,
831
2,
998
3,
176
10.
4%
• IRR of the strategy implementation is
4,000
2,000
10.4%, which exceeds the average cost
0
-2,000
of capital (estimated to be 7.5%)
-4,000
-6,000
• Total volume of Grolsch will reach 4.9
-8,000
-10,000
mil. hl (TOP 10 level) including current
-12,000
-14,000
Investment SA
EBITA SA
Business
Strategy
Investment BR
EBITA BR
Investment CH
EBITA CH
market growth 1.9 mil. hl
23

24. 4. Conclusion
Propose to change the current global strategy to reach
Global Top 10 brand
① Enter to developing market
- South Africa
- Brazil
- China
② Focus on Premium beer with localization
Achieve 4.9 M hl volume in 2017
South Africa, Brazil China → 3.0 M hl
Western Europe →1.9M hl
IRR
9.6%>7.5%
24

25. Goshi FUJIMOTO
Nobuya YOSHIZAWA
Eiji KOIZUMI
Natsuhi INOUE
25