Expansion of Molson Coors Molson Canadian Premium Research Paper

Expansion of Molson Coors Molson Canadian Premium - Research Paper Example This is despite an increase in sales of a competitor. It clearly outlined how Molson Coors had lost it in matters concerning marketing and other strategies relating its sales. One of the major brands that Molson Coors has in mind to promote is the Molson Canadian, one of the three beer brands that it owns. Molson Canadian is a premium lager. One of the possible reasons as to why it is the product of choice to be targeted for expansion is its increasing popularity among beer brands worldwide. It is already a hit in its native country of production, Canada, and the company has major plans for it.   Ranking The ranking of the countries in the order of the best market to the worst is: 1. China 2. Mexico 3. Czech 4. France China There are several reasons as to why China is the best potential market for expansion of Molson Canadian premium lager. One is the popularity gain of premium drinks among the Chinese population (6% in 2010) and its promising steady progress. They distinctively pr efer drinks that have quality and have some status. Premium lager drinks fit perfectly in this description. A preference is skewed towards imported premium lager brands given the inclination of the Chinese to the Western countries culture. This is in fact a perfect opportunity for the Molson Canadian premium lager, given its origin and perfection. The Chinese market has a promising future market, both in the present and in the future. This is given its younger generation’s capability to spend more on luxury goods. The young Chinese thus hold the future market for the Molson Canadian beer brand. Mexico Mexico could have been the best option if at all it had a little glimmer in its economy growth, which is its main letdown while considering the best country for Molson Canadian Premium Lager. This in fact was the main reason as to why they had a drop of 2% of beer volumes sold in 2010. The poor economy is a threat in that the population might prioritize other basic needs due to the rising prices of beer and the overall increased inflation that read 4.4% in 2010 up from 3.6% in 2009. Generally, Mexico has a very conducive market for premium beer with the consideration that a large percentage (94%) is committed to beer among all alcoholic drinks. The age group of the consumer base is also perfect; in the range of 20 – 29 years which is also the future market of the brand. Statistics also show that beer would eventually replace soft drinks for men given the trend it had taken. Of the 3% lager imports that are consumed, 90% comprises of premium lager. This leaves no doubt that Mexico is the second best option for Molson Canadian premium beer expansion plan. Czech Anyone who didn’t have the statistics would have no doubt chosen Czech as the perfect country for this investment plan. This would have been utterly wrong because despite Czech ranking among the top five in beer consumption, most of the supported brands are local brands. This is despite the imports that it gets from Slovakia and Poland. Its recent economic shakedown and the wellness and health sensitization are also designed to increase awareness and thus a high chance of reducing its market.  Ã‚  

Risk management Essay Example | Topics and Well Written Essays - 3250 words

Risk management - Essay Example An assessment for each risk in terms of impact of the risk and probability of occurrence was made that prompted the formulation of strategies address the risks, to take advantage of the opportunities, or to control the identified threats. BAT’s main strategies basically facing the risk head on and go on with combatting the illicit trade and the increasing excise taxes or shock the may come from government initiate to raise taxes. For finance risks, hedging was the better strategy than not hedging. For the market risks which include inability to obtain required price increase, geopolitical tensions and major climate chance separate strategies at the corporate level were done and should give priority to those with high-level risks which include competition from illicit trade, excise shocks from tax rate increase or structure changes, and management of cost base. This paper aims to identify major risk factor faced by British American Tobacco plc (BAT) using appropriate models/classification. A discussion of possible opportunities or threats would follow the identification. This would be followed by a structure assessment, using a risk map or risk matrix of the impact of the particular risks and the likely occurrence of these risks. The third part would be to formulate strategies for taking advantage of the opportunities, or strategies for controlling the identified threats. The last part of the paper before the conclusion would be to respond to a statement hypothetically made by an executive of saying something about the uselessness of corporate governance. The respond would focus on the relevance of the corporate governance regulation. Illicit trade is defined as proliferation of illegal competition in the form of counterfeit products (Ortiz &. Tajes, 2009; Dandeker, 1992), genuine but smuggled products and even those of locally manufactured products on which applicable taxes are evaded (British American Tobacco, 2011). The