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Marketing strategy for Carling Black label lager

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    From the research that I have done to assess how I should market an innovated Carling Black Label product I have decided is to use a market penetration strategy. I have chosen market penetration due to the fact that Carling Black label is a widely recognised product and it already dominates the alcoholic beverage market.

    Market development would not be as effective as market penetration as Carling have already targeted many market segments. As the new product is in the same market as Carling Black label lager this strategy would not work to the potential of market penetration. This strategy would be a large risk and may result in the new product being unsuccessful.

    Diversification is not applicable to a new Carling lager product as it involves targeting new markets. This strategy would not be successful, as the new product would be targeted towards Carling Black labels existing market, as it is an alcoholic beverage. As the market Carling lager operates within is bringing great success there is little need to move into a new market.

    Product development may have been applicable if there was a modification to their existing product. However as the new product is a stronger lager the current Carling black label lager would still be used within the market. This has lead me to choose market penetration as it would be a more effective method of marketing the new Carling lager product rather than confusing existing consumers by modifying and changing the existing product.

    From my primary and secondary research I have found that many consumers feel that Carling is a good lager in general however it lacks strength. This is a reason why I believe that Carling will become more successful by producing a Carling lager export to match competitors such as Fosters and Carlsberg lagers. These brands produce a stronger brand of lager and in this area I concluded from my primary and secondary research that an innovation of their existing product would enable Carling to meet these of the market. With Carling Black label lager already being well established and having brand loyal customers I believe that market penetration would be the best method of marketing.

    The internal strengths of the SWOT factors for Carling black label are that Carling lager is a recognised lager nation-wide. Their link with football has caused football supporters to drink the alcoholic beverage whilst enjoying the game either at home or in a public house and in result Carling have a large market share. This also justifies the market penetration strategy as it shows that Carling lager have experience in the lager market and have brand loyal customers.

    The internal weaknesses of the SWOT factors are due to the low alcoholic proof that the drink has some consider it a ‘girls’ drink. It is also a cheap larger which may stop potential consumers drinking it due to the image it produces. There graphic design lacks behind drinks like Budweiser, fosters and Stella Artois. This again justifies the reason for market penetration, as a more expensive stronger up to date beverage would hit the market quickly.

    The external opportunities of the SWOT factors means a number of sales of Carling larger are from people who take part in leisure activities such as football and rugby etc. Carling have the opportunity’s to invest more in marketing for other areas of the leisure industry there may be more sales that they could successfully gain. Carling black label have the chance to bring there design and image up to competitors levels so that they don’t lose out in this area of sales. These opportunities show that a major input of resources into an innovated lager product would meet areas in which Carling have the chance to improve. This could be done quickly and efficiently by market penetration, as it would rapidly fix their weaknesses.

    The external threats of the SWOT factor means that the competitive market that Carling lager operate within they are under constant pressure to be successful. The Alcoholic beverages industry is very competitive as every brand spends millions of pounds investing in marketing and deciding how they can improve their sales figures. Therefor I think that a market penetration strategy will enable to expand their market share rapidly. There would be a risk of imputing a large amount of resources into the strategy but I think that it will take Carling black label into new areas of the lagers market.

    The Economic factor from the PEST factors has a large imput into how Carling should market their beverage. The UK has seen the lowest inflation rates in the last four years than it has seen since 1960. The current figure for inflation has risen to 2.8%; this is the highest it has been for the last four years. If inflation should rise due to excess demand Carling lager could lose consumers if the UK was to head into a recession. Low interest rates have encouraged business to take out loans from banks and other financial institutions. However, interest rates look unsettled for the future. This is another reason for a market penetration strategy. A large input of capital now may result a more efficient spending of funds now rather that in the future. This is because Carling may have to repay more to financial institutions if interest rates rise. Also if inflation rises consumer spending may drop resulting in a fall in potential sales figures.

    The Technological factor from the PEST factors enables Carling to produce large amounts of lager. This is because they can produce packaging in bulk and produce the actual lager in shorter times due to advanced technology. This means that the company has a larger profit because wage costs are cut as production is done by machinery. This will enable Carling black label to use a market penetration strategy as they can achieve the level of supply to meet the equilibrium point.

    The Boston matrix and product life cycle for Carling lager shows that there is a great potential for a new innovated Carling drink as their existing product performs excellent in the Boston matrix and has a long life cycle. A market penetration system would allow Carling to pass quickly through the introductory phase and meet the growth stage where it has the most potential to bring in large sales revenue.

    I believe that this marketing strategy is likely to be very successful. From the analysis of my previous research a market penetration system is not only the most applicable option but it also ensures that the success of Carling lager is upheld by targeting markets before the status of the economy changes or current patterns of consumer spending changes. Also with the previous success of Carling black label lager there is a possibility of brand loyal customers boosting the penetration strategy. This may occur as market penetration allows a large investment into the current market upon where there are existing customers. This combination of beneficial factors I believe will ensure that the marketing strategy is successful.

    Although a product development may have had some beneficial factors to a new lager product, I decided that due to a launch of a new Carling lager it is still the same type of product. Therefor market penetration may uphold some problems as the strategy has limits upon how far it can progress therefor-another strategy may have to be pursued in order for Carling lager to grow.

    In contrast to the above points due to market penetration having least risks and some promising contributions market penetration will be the most successful strategy in my opinion.

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