Executive Summary
South Africa is booming! After several years of traditional beer-brewing in Germany it is time to broaden our horizon and expand to new frontiers! What better country could there be than South Africa, a country whose economy is booming, host country of the next World Cup series in 2010 and has a lot of inhabitants who enjoy drinking beer.
The German Radeberger AG is the holding company of the company Schöfferhofer. The former entrepreneurial group “Binding Brauerei AG” trade as " Radeberger Gruppe" since 2002 , to which large breweries like the Radeberger export beer brewery and the “Berliner Kindl” brewery belong. With an output of approximately 13 million hectoliter, it is the largest brewing company in Germany.
Within the last period of time the Schöfferhofer brewery gained 50 % of the overall sales while the market faced a decline due to the newly introduced marketing strategies.
Introducing a Schöfferhofer Grapefruit beer, which is a beer with 2,5 % alcohol, at an affordable fair price with a taste of freshness and fruit, will be filling a gap in the South African beer market.
We are targeting the “United Cultures” of South Africa’s middle class (mainly women between the ages 20-35) that enjoy their life, like to have a party and like to drink tasteful and fruity beer.
Within the first year in South Africa the growth rate will be higher than the general epected yearly growth of 10% due to the Fifa World Cup and its supporters. Generally the per head consumption of beer is at an average of 60 liters a year. Our market share will aggregate 0.5 %.
Our beer will be sold by SABMiller who covers 98% of the South African market. They will sell it through their outlets and pay half of the advertisement costs. We will hardly have expenses except for advertisement costs and our beer will be part of the very popular SAB Miller family. Without the help of SAB it will probably be infeasible to penetrate the market as planned, because...