GROUP 1

ADAEZE MBA, BASUMOH AKPAN,

STEPHANIE ERIGHA, DANIEL UDO, AKINOLA
OWOLABI, DIDI AGBAHOR

MARKETING
PLAN
 TABLE OF CONTENTS
I. Executive Summary
II. Situation Analysis
a. Internal environment
i. Organization background (the Company, Mission)
ii. Products/Offerings
iii. Positioning
iv. Historical results

b. External environment
i. Markets
ii. Competitive environment (analysis of Current and Potential
Competitors)
iii. Economic environment
iv. Demographic environment
v. Social and cultural environment
vi. Political and legal environment
vii. Technological environment

c. SWOT analysis: Analyze the business environment as follows:

i. Strength and Weaknesses considering companys internal
attributes
ii. Opportunities and Threats considering external factors

d. Critical issues

III. Marketing Objectives

IV. Marketing Strategies

a. Target markets
b. Product strategies
c. Pricing strategies
d. Promotion strategies
e. Distribution strategies

V. Financial Projections
a. Sales Volume Forecast
b. Marketing and Service Provision costs
c. Estimated Income.

VI. Controls
a. Implementation
b. Marketing Organization
c. Contingency Planning
I. Executive Summary

II. Situation Analysis

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a. Internal Environment

Organization Background
SABMiller Plc is a
multinational brewing and beverage company headquartered
in Woking, England before it was acquired by Anheuser-Busch InBev in
October 2016. Before the acquisition, it was the world's second-largest
brewer measured by revenues (after Anheuser-Busch InBev) and was also a
major bottler of Coca-Cola. Its brands included Fosters, Miller, and Pilsner
Urquell. It operated in 80 countries worldwide and in 2009 sold around 21
billion litres of beverages. Since the acquisition, SABMiller has been a
business division of Anheuser-Busch InBev, a Belgian corporation with
headquarters in Leuven.
SABMiller operates three breweries in Nigeria; Pabod Breweries Ltd in Port
Harcourt Rivers State, International Breweries Plc. in Ilesha in Osun State,
Intafact Beverages Ltd in Onitsha Anambra State. The most recent of which
is the brewery at Onitsha, Anambra State, this was a green-field brewery
facility with an investment of US$100-million. The launch of this new
brewery, was strategic in revamping Hero Lager, a regional brand whose
performance has since caused an uproar in the Nigerian beer industry. By
2014 a decision was made to further invest US$110 million to increase the
current annual capacity from 700 000 to 2.1 million hectoliters. Currently
SABMiller has 15% market share in the Nigerian beer industry.

Vision
To become the most sought after beer manufacturing company in Nigeria,
offering consumers great tasting quality beverages that deliver value for
money.

Product and Offerings

SABMiller through its 3 breweries offers the following range of products:

Stout
Castle Milk Stout
Castle Milk Stout Chocolate

Lager

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 Hero
Trophy
Redds Premium Cider
1960 Rootz
Eagle

Malt Drink
Beta Malt
Grand Malt

Positioning

Hero beer has an alcohol of 5.2% and is positioned as an economy brand

with superior quality. It is sold both in 330ml can and in a 600ml bottle. Even
though SABMiller did not fail to realise that eastern Nigerians are the top
beer drinkers in Nigeria and by such designed Hero to be a regional brand, it
is becoming a national brand by demand.

Hero beer, is a south-eastern regional brand, that is strongly rooted to the

beliefs and culture of the Anambra indigenes. Made with a mix of malt and
local sorghum, it can be identified truly as a Nigerian beer. The richness of
Hero larger is reflected in its distinct, satisfying and unique taste all infused
in its rich golden colour.

Due to the continuous increase in recession, consumers have become more

price sensitive and are generally gearing towards economy larger. This has
been to the good of Hero, which has become a strong brand and has over
taken competition in the south-eastern region of Nigeria. It is important at
this point for SABMiller to expand the brand to reach consumers in more
regions of the country to gain more market share, whilst maintaining its
quality and standards.

Market Needs
Hero lager offers value and benefit at an affordable price and as such is
responding to the growth in the request for economy larger. The increase in
the demand for economy larger is due to the decline in consumer purchasing
power, which has led consumers to become price sensitive. The brand
awareness of Hero is very high in the eastern regions and it should be
positioned to reach a wider target audience. There is a need for Hero to
consciously connect with consumers across the country.

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The Market
Hero beer is perceived to be majorly an eastern beer, brewed in east and
meant for easterner. Hero bottles bear the rising sun that appeared on the
Biafran flag, thus it connects emotionally by tapping into the areas
nationalism. Hence it can be inferred that Hero was developed as a result of
deep local consumer insight and positive associations with the Igbo tribe.
Beer drinkers have christened Hero Oh Mpa (Mpa means father in Igbo
language). The key to the success of Hero is based on the level of loyalty, a
lot of consumers can relate to the brand. The fact that it has great taste and
offers superior quality at an affordable price is also a key factor.

Market Demographics
Most consumers of Hero are within the age group of 25- 50, (a customer
once said, it is not the old that drink it but the young who did not experience
Biafra and would like to know about it) 70% of which are males and the other
30% are females. Furthermore, the consumers fall within the low-income
earners of between N45,000 -N150,000 per month. Hero is most popular
amongst the people of Anambra and is very visible at every occasion, pub,
road side joint etc. Consumers can also be found scattered around the
neighboring states and other states like Osun, Ibadan, Port-Harcourt and
Lagos.

Market Trends
Due to the increasing recessions rates, most alcohol consumers have begun
to migrate from the high end exotic drinks to beers which are more
affordable, especially those in the economy tier. What we are witnessing in
Nigeria currently is that 75% of Alcohol drinkers have migrated from Fine
wine and spirit to Beer. The reduction in purchasing power has also impacted
significantly in the beer industry with every brewer producing economy lager
to stay relevant in that market.
Also, there has been a growth in youthful population as Nigeria currently has
a median age of 19 years and 55% of the population within the age bracket
of 15 to 65 years, which accounts for over 80% of alcohol consumption. The
growth trend in this age group is expected to drive beer consumption higher.

Market Growth
There has been a significant growth in the market by SABMiller. With the
investment of over US$100 million in Nigeria, SABMiller has been able to

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intensify its penetration into the Nigerian market through strategic regional
approach. The most popular brands such has Hero and Trophy currently gain
a lot of patronage with markets in the South Eastern and Western parts of
the country. SABMiller has continued to grow over time with a 23% volume
growth in its Trophy lager brand, while Hero lager volumes more than
doubled with the increased capacity at its Onitsha brewery.

b. External Environment

Markets

The Nigerian beer market consists of three major players; Nigerian

Breweries, Guinness Nigeria PLC, and SAB Miller. All three breweries produce
beers that have a serious cult following in the segments they play in. Until
the entrant of SAB Miller into the market the beer market was controlled by
Nigerian Breweries, operating in the country since the 1960s.

In Nigeria, the legal age of purchasing beer is 18 years of age, and this age
falls within the largest distribution of Nigeria by age segment as at the last
population census. Over 50million people are aged 18, this means that there
is an availability of possible beer drinkers, and the market will keep growing
as the 18year olds get older. This means the beer market has plenty
prospects.

Our beer intends to leverage on the local scene in the South East and South
South, and play as a premium beer in that region. We intend to connect on
a personal level with the cultural heritage of the members of this region by
appealing to their emotionality. SAB Miller came into the country and
strategically focused on reviving old known brands that had died away, they
were hoping to leverage on the emotionality of these old brands. To date,
they have successfully positioned Hero as the beer of note in the eastern
part of Nigeria, they did this amidst fierce and intense competition in the
market.

Competitive environment (analysis of Current and Potential

Competitors)

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As at February 2016, the Nigerian beer market was worth an astonishing
$2.6BN, despite the recession, proving that the market is recession proof.
The beer industry in Nigeria is an Oligopoly with two top beer brands in
Nigeria as at 2015; Guinness Stout (Diageo) and Star Lager Beer (Nigerian
Breweries), leading the pack in sales and popularity.

Over the years, they have built strong distribution systems and thus
penetrated the Nigerian market with Guinness enjoying a 23% share of the
market, Star Lager enjoying 67% of the market, and other brands sharing
what is left.

The number 1 beer brand in the country as at 2015, Star Lager, was
launched in 1940s. It is the beer of Nigeria for Nigerians. It was created
because Heineken was sceptical about giving out the license to brew
Heineken beer in Nigeria in the 1960s. It went from being a local brand to
being a top brand in Africa and it is consumed in Neighbouring African
countries.

Guinness Nigeria was incorporated in 1950 and listed on the stock exchange
in 1965. It produces a strong, dark beer, and has been able to use
outstanding advertisements to push this brand.

The beer environment in Nigeria is highly competitive, there is a struggle

amongst distributors of these brands to push their products in the very
viable Nigerian beer market. The barriers to entry are very high because the
business is this very capital intensive and quite challenging.

However, to make it in this industry, one must concentrate on segments that

have been left out by the major brewing companies. This is the strategic
direction our brand is hoping to leverage on. We are also going to work on
creating a distribution unit that would help us move our brand in a market
that is so intense.

Economic environment

The economy is currently facing a recession, inflation rates are high and
rising and the unemployment level is on the rise. This makes the country in

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theory quite unattractive for new businesses and investments. The continued
increase in the population of the people also leads to more strain on the
available economic resources.

Also, due to the continued reduction in the price of a barrel of oil, the
available foreign exchange has reduced causing a scarcity and throwing our
very import dependent economy into chaos. The economic environment in
the east consists of businesses run by families, most of these businesses are
not taxed, this signifies an availability of cash in the region amongst the
business men and women.

Our strategic direction is to use more locally sourced raw materials for
brewing our beer thus reducing our cost of production and allowing us play in
the cost and price wars. This we hope will help give us an edge.

Demographic Environment

The demography in question is the Eastern region, however we are

expanding to the south-south region in Nigeria. This region comprises of
male and female who are spread into different segments of drinkers;
premium, mid-tier and low segments, but consists majorly of beer drinkers in
the mid to low tier segments. They also consist of the upwardly mobile male
who work in banks, politicians, Night club owners, as well as business men,
etc.

The language mostly spoken is Igbo language as this region majorly consist
of Igbo people who are attached to their roots. The Igbos pride themselves to
be ambitious, hardworking, industrious people who will do anything to make
it in life.

This region is also characterized by men and women who regularly visit their
country homes from major cities all over Lagos for village meetings,
traditional weddings, chieftaincy title ceremonies, festivals, etc. Occasions
like these call for a lot of drinking. The south-south region also has the same
demographic characteristics of individuals, and in addition consists of oil
workers who have very high discretionary spending at their disposal.

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Social and cultural environment

The region consists of people who mostly practise Christianity as a religion.

They are more disposed to drinking unlike their Muslim counterparts. The
members of this region are known for being very committed to grass root
politics and are loyal to their leaders. They have a very strong cultural
affinity and will readily connect with a product that represents this part of
their life.

Political and Legal Environment

The country is under the democratic dispensation and it has been this way
since May 29, 1999. With the recently concluded election that saw the
swearing into office of General Muhammadu Buhari, there has been a lot if
shaking up of industries and political offices.

Technological Environment

The technological development in the country is growing steadily, although

at a slower rate when compared to other more technically advanced
countries like the USA. The world is more a global village than ever before
and so there are more digital interconnections to Nigeria from any place in
the world at any time. Technologically, the country is at a point where it is
open to even more technological growth, we see that there a whole lot of
start-up companies that exists in places like Lagos State. Also, top tech
companies such as Uber, Google and Facebook have made their way into the
country.The introduction of more technology strides means we can deliver
services better and even more efficiently now in Nigeria.

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 Nigeria Brewry Industry Market Share

7% Heineken NV
10%
Diageo Plc
SABMiller Plc
24% 60% Others

c. SWOT Analysis

Strengths
1. Strong brand position- SABMiller Breweries has established its brands
in different regions of the country. The Hero beer has warmed its way into
the hearts of beer drinkers in the South-Eastern part of the country. They
have accepted and identified with the brand as their own possibly
because its logo bears resemblance to that of the Biafran flag and also
due to the fact that they regarded the pioneer leader of Biafran state,
Late Emeka Ojukwu, as a hero. In most places where the beer is sold and
served, beer drinkers pay some sort of homage before settling to drink
the beer. Also, most of the competing brands who were market leaders in
the region have now been edged out since the beer (Hero) was
introduced in August 2012.

2. Economies of Scale- SABMiller which is headquartered in England

acquired four breweries in Nigeria, which include: International Breweries
Plc, who had previously acquired three breweries to add to its portfolio
namely: Intafact Beverages Ltd.(original producers of Hero), Onitsha,
Pabod Breweries Ltd., Port Harcourt and Beverage Management Solutions
Ltd., Surulere, Lagos.

3. International Affiliation- International breweries, is a subsidiary of SAB

Miller Finance BV and SAB-Miller Plc Holding Company, a well-established
brewery with several breweries around the world including Australia,
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 North America, Latin America, and Asia. SABMiller has now been acquired
by the largest brewery company in the world, Anheuser- Busch InBev.

4. Wide Range of Products- The company has a wide range of alcoholic

beverages such as Trophy Lager, Trophy Black, Castle Lager, Castle Milk
Stout, Redds, e.t.c, each of which appeal to different segments and
consumer income brackets of the industry. They have recently expanded
the product line to include Eagle larger, 1960 Rootz and Miller Genuine
Draft, all of which have been well received by consumers.

5. Access to Capital- The breweries enjoys access to huge capital outlay

from its parent company which has helped it in developing and launching
new products and capacity expansion such as acquisitions of other
breweries.

Weaknesses
1. While turnover, profits and Earnings per share increased in 2016 from
2015, dividends reduced by 22% from 32kobo/share to 25kobo/share.
This could lead to low investors and shareholders confidence in the
business.
2. The Hero larger beer which is targeted to the South-Eastern region of the
country is a weakness on its own since it had been restricted to the
South-Eastern region from the on-set.
3. Competition has also posed as a weakness to the industry because of the
segmentation and differentiation, SABMiller have been unable compete
effectively and efficiently with other beer products that the competitors
offer.
4. The product is not different from other competitors product. i.e. the
threat of substituting the product is very high.
5. There is also a low penetration of the product to other regions of the
country which may limit the credibility and brand awareness of the
product.

Opportunities
The company is yet to explore many underserved parts of the country as
the current beer consumption in Nigeria is still under 10 litres per annum,
compared to the global consumption of 27 litres per annum. Also, there
seems to be an emerging market for health conscious non-beer drinkers,
who like the taste of beer but not too strong. SABMiller Nigeria is yet to

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explore this market by bringing out a beer that will cater for this group of
drinkers.
In addition, there are opportunities on how to reach the non-consumers of
your product. There is a huge potential in reaching non-beer drinkers via
online (social media) or through digital marketing. SABMiller is yet to
explore this medium of advertising.

Threats
The economic environment in Nigeria in which the company operates is very
challenging due to the current economic recession, rising inflation, high
input and finance costs, naira devaluation and depressed consumers
purchasing power. Also, As at May 2016, there was an existing ban on beer
importation into Nigeria. (Euromonitor International, 2016). This is a threat
to the importation of any beer from its parent company.

Another threat is competition. Nigeria is still an emerging market in the

alcoholic drinks industry, particularly the beer segment. Any new player in
the industry may capitalize on this opportunity and cause a major threat to
those already in the business- thus reduce market share and profitability.

d. Critical Issues
There are several issues critical to the brewery industry which should be
given utmost consideration:
1. The distribution strategy for any brewing company in the industry is a
critical success factor. Nigerian Breweries Plc is dominating the market
currently due to its extensive distribution network system, especially in
the rural areas. SABMiller Nigeria to gain market share must create a
more effective distribution strategy to remain highly competitive. Bigger
breweries can acquire smaller, regional breweries to leverage on their
existing distribution networks.
2. There is a shift towards economy lager due to price considerations and
the prevailing economic situation. SABMiller has shaken up the market
with the introduction of Hero and Trophy, which are in the economy lager
segment and other breweries have begun to follow suit. This segment
continues to grow despite the prevailing economic condition.
3. Due to a growing population of the country becoming increasingly health
conscious, it is pertinent that alcoholic beverage companies appeal to the

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 emotions of its consumers in marketing their products. This can be seen
as some brewery companies have positioned their beers as regional so
that they can be well received in different communities around the
country.
4. Several breweries around the country have been acquired by larger
indigenous breweries, and even larger breweries being acquired by even
larger foreign breweries. SABMiller Plc, the parent company of SABMiller
Nigeria was recently acquired by the worlds largest beverage and
brewery company, Anheuser- Busch InBev (AB InBev), which has its
headquarters in Belgium.

III. Marketing Objectives

With the marketing plan, we hope to achieve the following in the coming
year:

Achieve 20% increase in sales

Increase brand awareness by 30%
Grow market share by 15%
Increase new customers base by 25%
Improve stakeholder relations by 10%

IV. Marketing Strategies

Target Markets
Even though we have launched nationwide, research has shown that there is
still an underserved market in the South-South and South-Eastern Nigeria.
There is a rapid emergence of an aspirational middle class who are price
sensitive, fun-loving, with a predisposition to want more for less and are
social drinkers. Information deduced from these insights has led us to
segment a target market Hero will serve based on the following criteria:

Demography
- Gender: Male and Female
- Age: 18yrs 25yrs New drinkers and people who dont have a
preference
26yrs- 40yrs Regular drinkers
45yrs - 60yrs Brand loyalist
60yrs and above Brand loyalist

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 - Income range: 18yrs 25yrs (discretionary spending depending on
allowance)
26yrs 40 years ( N600,000 N5,000,000 per
annum net of tax)
45yrs 60yrs (N600,000 N5,000,000 per annum
net of tax)
60yrs above (pensioners)

Geographic location
- South-South and South-Eastern regions of Nigeria comprising of the
following States (Abia, Akwa Ibom, Anambra, Bayelsa, Cross River,
Delta, Ebonyi, Enugu, Rivers, Imo, Edo*.)

Psychographic or Lifestyle
- Value driven
- Fun-lovers
- Aspirational
- Adventurous
- Habitual drinkers
- Football enthusiasts
- Technology savvy and social media active

Specific Needs of Category

With a population of over 170million people and with the majority of the
populace living in the low income to mid-tier segments of the economy, the
need for a premium tasting quality beer for an ever-growing market, sold at
affordable prices and available in every nook and cranny of their geographic
locations can be categorized as a ready market. The need for emotional
connection to products where we can use our ecology friendliness and our
economy booming policy of sourcing raw materials from within thereby
providing jobs and bettering lives. While also leveraging on the heritage
status the brand carries as well as its quality elements.

Segment Potential
There has been a shift in the choice of beer due to reduction in buying power
and this has led to an increase in the sale of low priced beer. The two
biggest players in the industry were not quick to respond to the change, thus
creating a large underserved market. SABMiller was quick to respond with
Hero for the Eastern region but there is a limited range or variety of beer
product offerings in this sector. There is potential for us to expand beyond
our present geographical location to gain more market share.
We can leverage on our brand reputation as a quality brewer in Africa and
the biggest in Nigeria while taking advantage of our wide distribution
network to wade off competition. Hero is currently a fierce competition to
other value beer.

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Positioning
- Economy lager with premium quality made from home grown barley
and sorghum
- Tagline Be the hero
- Value Proposition: Our bottom line focuses on our People, our Planet
our Profits

Product
- Description: Lager beer, produced using locally sourced Sorghum and
barley, with 5.2% alc with a blend that makes it not so strong nor too
bitter for the average beer consumer.
- Design: Green transparent bottle with Gold and Red cork and 2 labels
(one 0.5cm X 0.5cm foil wrapper at top end of bottle to cork and one
2.5cm round label from the mid-point of the bottle to the bottom)

Packaging:
All product packages will be branded to specification
a. 330ml Can
b. 600ml Bottle
c. 300ml Bottle
d. Draught beer: served from a cask or pressurized keg rather than the
conventional bottle or cans
- Product Quality: Made from fresh refined Nigerian grown sorghum,
refined and brewed to meet taste standards as set to compete in the
economy lager sector of the beer industry
- Benefit: affordability, availability, heritage and good quality, made
with Nigerian products and planet friendly beer.
- Product Range: Hero will stretch our product range in the economy
lager segment giving us more market share as we meet the needs of
more Nigerians.
- Product Life Cycle: Hero is in the growth stage in the product life
cycle

Pricing Strategies
- Pricing strategy is neutral N 250 at par with other economy lager

Distribution
- Convert sub-distributors of other brands to become major distributors
of Hero, hence according them the same benefits as the competitors
major distributors
- Competitive margin (----%) for distributors as incentive to push sales of
Hero

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 - Exclusive draught beer dispensing partnerships with popular regular
bars and pubs in strategic cities in these regions. These will serve as
experiential centres, where people are compelled to consume the
product at point of purchase hence potential for instant repeat
purchase should the product connect with his yearnings and make a
good impression.
- 4 regional distributors, 8 major distributors per State and over 100
retailers per State in the 1 st year, there will be a 30% increase in
actions to expand the distribution network year on year.
Retail outlets will include bars, restaurants, clubs, hotels and leisure
centres etc.

Promotion Strategies:
In the execution of this product launch in the South-South, we will adopt an
integrated marketing strategy to create awareness through communication
of the unique brand elements and product features. Hence influencing
buying behaviour and making sales in a cost efficient and effective process.
a. Above the line(ATL):
- Invest in billboards per city to enhance brand awareness
- Conventional media or Radio and TV should receive a tangible lump of
the budget as sponsoring, sports, music and entertainment related
programs on this medias will reach our target market as statistics
show that they are inclined to watching and listening to this genre of
programmes.
- Sponsors a reality TV show or big showbiz event who target the same
market e.g Big Brother Nigeria, West African Idols, Akwa Ibom
Anniversary Festival, Calabar Carnival etc.
- Print can have a meagre 15% of the advertising spend
- Sales promos

b. Below the line(BTL)

- Road shows and activations where experiential marketing tactics such
as play and win a beer tasting can be done, and consumers will
experience the brand alongside the product.
- Sponsorship of festivals and youth entertaining events for in-kind
benefit of publicity and product sampling
- Branded promotional materials that includes (fliers, posters, banners,
branding materials for retailers and distributors)
- Branded memorabilia for distributors, retailers and or winners of
interactive games.

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 Digital Marketing and Search Engine Optimization(SEO)

- The technology savvy world of today have resulted in the dependence

of our target demography on social media and the internet for their
information needs, we will have an extensive social media campaign
aimed at reaching out to our specific target market using data analytic
tools.

V. Financial Projections

Actual
Projections

201 201 201 201 201

2012 3 4 5 2016 2017 8 9

1,53 1,59 1,66 1758 1,92 2,00

Million Litres 1,510 6 9 6 .5 1,846 8 1
1.2
% Share 0% % 3.5% 5.6% 6.5% 7.5% 7.5% 7.5%

Hero Litres - 18 56 93 114 138 145 150

VI. Controls

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Hero beer entered the market as an economy lager beer, leading the pace in
the segment. As a popular brand in the South-Eastern region of Nigeria, it is
pertinent that some controls are put in place to maintain our position as
number one in that segment and continually increase sales. The following
controls are necessary to achieve this:

Customer feedback- we recognize that we continuously need to

engage our loyal customers to know how we can continue to cater to
their needs and also how we can serve non-customers.
Periodic monitoring and evaluation of our distribution strategies to
identify which of our strategies need to be reviewed, changed or
improved
Continuous research on process improvement- through market surveys
Sales Strategy reviews and evaluation- periodic review of actual sales
vs. projected sales

Implementation

We will implement the strategies outlined to achieve set objectives.

Target new customer segments- (young drinkers, non- consumers
which dislike strong tasting beer but like the taste of beer
nevertheless)
Push sales by increased distribution through on-trade channels which
is the leading channel for alcoholic drinks
Expand distribution network through acquisitions
Review and create a new marketing budget to accommodate all
strategies

Contingency
Our contingency plan will be to align our strategies and plans with those of
the parent company

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