SABMiller Approach Note

STRATEGY
1. Government is investing on making 6 major smart cities in Wellington which will create growth
opportunities, inflow of people and increase in disposable income. So distribution channel should be
strengthen in and around these areas.
2. Entry level drinkers are nearly twice as likely to drink as are current drinkers. As 38% of the state
population is below legal drinking age so in coming years these population will come come up as potential
market. These group will usually frequent bars and restaurants. B&R sector will also ascend due to
urbanisation. Thus we should shift focus towards B&R segment.
As Wellington is a part of the country, SABMiller cannot use the following strategies:
Separate branding for Wellington region.
Increase distributors margin for off premise sector.
Opportunity:
Institutional sector is under penetrated, so targeting that sector will create customer pull
Tie ups with B&R to make SABMiller exclusive environment will probably create a retail push
3. Bringing in new patented methods like Chillsner will also create a unique proposition for the
consumers. Chillsner is a technology which will keep the beer chilled for a relatively longer time period
and will be more effective in a tropical atmosphere like India.
4. Market research to know the personality of the target group i.e repressive/oppressive/ego/affiliated
based on which advertisements campaign to be created to reconstruct the brand portfolio.
5. Local agriculture can be leveraged to procure raw materials. This will increase brand recognition in the
area.
PORTFOLIO
The example of foster clearly states that customers are not finding the differentiation between the brands
to be compelling enough. For a brand to be unique, it requires to have
Customer Pull
Retail Push
But this is one of the classic case where both of them are not present thus brand differentiation is limited.
SABMiller has segmented their products into three major categories namely economy, mainstream and
premium beer segment. As SABMiller has huge share in the premium and mainstream market so we will
be penetrating the B&R segment mainly through these products.
PRICING STRATEGY
1. B&R sector will create a brand equity through unique customer experience ad this will build an image of
the brand which will create a pull in off premise sector also, due to increase in customer demand.
2. For all the off premise distribution channel a super distributor will be appointed. SABMiller should
provide him with higher margin in lieu of cash transactions only. No cash block in off premise sector will
ensure adequate capital to penetrate the B&R segment.
3. Association with lounges in strategic locations will increase the brand value and premiumisation of
SABMiller.

TRADE DRIVERS AND FOCUS AREAS

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Direct distribution to the institutional sectors i.e bars and restaurants.

Only cash transactions for off premise distributors.
Optimising the delivery channel to ensure minimum buffer time between supply and demand.
Using integration processes, procedures and practices that can be applied for ensuring the delivery of
expected returns in case of distribution channel.

TALENT ACQUISITION
1. Look out for the resources who understand the language of B&R, mainly hotel management people or
people with substantial experience in the hospitality sector.
2. Also look for people who can suggest on strategies to push the brand in a saturated market.
3. Resources will not only be concerned with the sales and strategy area but will engage with the
stakeholders proactively.
4. Providing incentives like SABMiller award and foreign trips will invigorate a competitive and inclusive
environment.