Marketing management assignment report writing analysis Help on: Fosters Group of Australia

Executive Summary

 This report has been written in response from the analysis made for Fosters Group of Australia to enter into Canada’s Beverage Industry. The report analyzes on the Province British Columbia as the target market for Foster Group.

 The report underlines in-depth understanding of the business strategy drivers for beverage industry and also identifies the opportunities & threats that are surrounded by beverage industry in British Columbia. The report also covers the profiles of competitors and analyzes the threat which the competitors might pose for Foster Group.

The report also illustrates the innovative and recommended strategic solution provided for Foster Group. and further, provides a brief plan for implementing the strategic solution and the resources that will be applicable in executing the solution. Also, it outcasts the cost structure for implementing the proposed solution to drive and attract customers and gain competencies in the beverage industry in British Columbia.

Foster Group: A Brief Profile

Foster Group is one of Australia’s largest beer and beverage products manufacturing company with the focus on providing premium branded beer, wine, spirits and cider products over the world. Foster group, today, stands out as a Global brand for producing and selling International beer and wine products (Foster Groups 2011).

Foster Groups has three main businesses, which includes Carlton and United Breweries (CUB) that sells Australian based beer, wine and cider products, Foster’s Brewing International (FBI) and a globally known Wine business having major operations in North America, Europe and Australia. In Australia, Foster Group has the largest market share about 56.1 per cent in providing premium, low-strength beer and wine products (Annual Report 2010).

In Foster Groups Limited, the main objective is to maximize the stakeholder’s value by benchmarking returns against cost of capital. This is achieved by emphasizing on technical expertise, operational intelligence, superior brand marketing and employee development. Thus, this add value in maintain brand equity and capital efficiency for increasing the value of stakeholders (Foster Groups 2011).

General Environment Analysis: External Analysis

Macro economics: –

Canada’s economy has seen a good growth since after the recession but the Canadian Chamber of Commerce says that the growth could be even better if the Canadians had spent their money more carefully. According to the Canadian Chamber of Commerce the expansion in the gross domestic product was 2.3% in the second quarter while there was only 1% growth in the third quarter (British Columbia 2011). Narrowing the focus on British Columbia (B.C.) it is noted that although this region had experienced a recession a few years ago it now stands strong while the world is yet recovering from it. B.C. has experienced a solid and steady economic growth and will continue to grow throughout 2011(British Columbia 2011a).

The interest rates have fluctuated a lot since 1996. It has reached as high as 16% and as low as 0.25%. According to Trading Economics, the benchmark for Canada’s Interest rate is 1%. Bellow is an illustration of the change in interest rates in Canada (Trading Economics 2011).

(Source: Trading Economics 2011)

Canada’s consumer prices have rose drastically because of the rise in price of gasoline. The price of consumer goods has shot up to 3.7% being the largest increase since March 2003.(Statistics Canada, 2011a) Focusing on B.C. the consumer index price has increased by 2.8% since May 2010 (Statistics Canada 2011b).

The currency exchange rate has been almost stable in Canada and Australia in Comparison to United States. By this we can understand that there will be no sudden change in the strength of both the economies.

(Rateslist 2011)

Global Forces:-

Canada is trying for a freer trade with Australia. Total trade between Australia and Canada has been of $4.5 billion. Canada wants a two way free trade with Australia and assures to triple Canada- Australia trade within three years. (Westhead 2010) The impact of this would be that the trade barriers will decrease allowing the Australian firms to use all their capabilities.

Social environment:-

According to stats Canada there has been an increase in people doing physical activities during the leisure. People concerned about their health are also increasing in British Columbia (Statistics Canada 2011d). This change in the habit is very suitable to the beer industry as it help to lose weight and is a substitute to exercise. Green transportation is a program that the B.C. government has begun which will healthy living. To support this $31million is spent on cycling infrastructure (British Columbia, 2011b).

Political and legal forces:-

Canada observes a standard political, economic and legal environment and has an overall score of 9.32/12 in the business index. Government promotes foreign investments and provides equal incentives to both foreign and domestic investors. Foreign investors can access all legal systems of Canada except property laws. Canada ranks high in Transparency International’s 2009 Corruption Perceptions Index, hence there is no corruption concerns (Estandardsforum 2011). The HST currently in BC is 12% and will reduce to 10% by 2014(Hstinbc 2011).

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