Strategic Management
“Marston’s PLC”
Introduction
Marston’s is the company that is famous for the British brewery and it is a pub operator, however, the company has over 1,700 pubs in the United Kingdom and it is the world’s largest brewer of the cask ale. The company is earning about the 90 percent of profits from it pubs division because the customer choices are considered and value. Marston’s PLC is operating the brewery, the company prior was named as the Wolverhampton and Dudley Breweries, until the year 2007, and then after that, the company was rebranded as Marston’s.
Marston’s PLC has five breweries and brands; the company was established in1834 by the Marston. The company ran its operations successfully in the market and the company is strengthening in the UK market. In late 2013, the company faced some issues but after that get strengthen again through focused on the effective strategies’. The strategies of the Marston’s PLC are to welcome the customer by providing them with the warm excellent service in the sociable atmosphere. There are the wide quality and range of the brewery and the food menus.
The customers of Marston’s PLC are fully satisfied with the company because the company is operating its operations successfully in the market over 180 years. The brewery teams have strengthened the company through focused on the brewery industry and the Europe market trends, however, if the company want to get the good position or want to operate its business successfully in the other markets then there is need to focus more on the effective approach or strategic direction.
Strategic Management Tools And Techniques
Marston’s PLC is focused on its operations, as the effective strategic management tool and techniques are focused on the company; the strategies of the Marston’s PLC are high-quality pub estate so that the broad range of customers can be satisfied in the market and the business operations can be victorious. However, for this, the company is using the appropriate operating model in order to maximize sales and profits for the future benefits. The company is targeting the pub growth through developing the franchises because the company knew that it can be the key growth driver. Marston’s PLC is focused on the opportunities for business expansion as provide significant shareholder value.
The strategies also include the investment in rooms because the company wants to enhance the pub profitability through providing the best consumer experience to the customers, the premium experience is provided in the market and customers feel special and are satisfied with the company operation. The main strategy of the Marston’s PLC is to focus on the leadership or control in the UK beer market and in this way, a company has over 1,700 pubs in the United Kingdom.
The company is one of the leading brands in the UK market as meeting the consumer demand and focused on the growth segments through providing the quality and taste. The company has the satisfied stakeholders in the market as the hearts of their business are the employees and the customers. The companies have about 14,000 employees as the company considered them the most important asset, the employees are trained and this is the reason that company is managing the brewing and pub retailing business successfully in the market.
SWOT Analysis of Marston’s PLC
Focused on the SWOT Analysis of Marston’s PLC, there are the considerations of the company businesses and operations. SWOT analysis provides the comprehensive view of the strengths and weaknesses that the company has in the market or industry; however, there are potential opportunities and threats.
Strengths
Marston’s PLC has the strength in the domestic market as the company has good will and experienced business units. However, the business has reduced the labor costs and the other businesses could face the barriers of market entry. The company has the high profitability in the market because of the skilled workforce.
Weaknesses
The weaknesses of the company include the future cost structure that could be difficult to anticipate, another weakness could be that the company has fewer suppliers in the market.
Opportunities
Consequently, the company has the opportunities in the market as through growing demand of the brewery and providing it in various flavors can increase the income level and the constant demand increase in the industry. Venture capital and the entering in new markets or countries can also be other good opportunities for the Marston’s PLC.
Threats
Marston’s PLC can face the threat due to the external business risks. New market entrants are there in the market. Moreover, the company can face the threats from micro-breweries because customers could be attracted.
Affected When Leaving Europe
Marston’s PLC is famous in the UK industry, as the company could face the issues and threats when leaving the Europe because other countries have own reputed industries, in this way, the Marston’s PLC need to focus on the international market example the company need to prepare and educate itself, in order to conduct the international business. Marston’s PLC needs to collected or gather historical data that if the UK industry leaves Europe there could be issues and if there are more scopes in the industry then company face negative consequences.
Penetrate Foreign Markets
Marston’s PLC needs to do the penetration in the foreign markets so that there could be the advantages from other economies, however, in this way, the company need focus on the business etiquette that must be necessary for the international market. Marston’s PLC can do efforts to find out that which country is better to start the business in, for entering a foreign market, it is most important to thinking globally because country’s culture and demographic is important to analyze before joint venture or starting the business. Thus, Marston’s PLCs need to know about the country’s laws governing business example, in Islamic countries brewery consumption is not allowed, therefore, the company needs to focus on the countries where the effective business can be conducted with the suitable services (YEC Women, 2012).
Different Acquisition Strategy To Greene King
The Marston’s PLC should focus on the best acquisition as compared to the Greene King because it is the competitor of the company serving craft brewery as an attractive to global leaders, the company also have the owns pubs and have a good market share in the craft brewing industry. If the Marston’s PLC needs to stay competitive in the industry, there is the need to struggle to remain competitive for the long-term effectiveness. The company is still lacking from the strategic aspects. Nevertheless, Marston’s PLC should focus on the sales and marketing infrastructure in order to make itself a global beverage conglomerate. There is the need to ensure effective steps for the brewery’s front through making or considering the expect bidders to line and in order to give a positive position to business.
Compete With The Micro-Breweries (Premium Real Ale Market)
The microbreweries are the direct competitors in the UK brewery industry, as smaller than large-scale but focused on the corporate breweries, however, they have the independently owned business. Thus, to compete in the market, the Marston’s PLC is using the Premium technique known as the Bottled Ale Category, which is providing the benefits to the business; in 2015 the companies adds 376,000 shoppers and get the benefits from the brand innovation. PBA is serving the business in the effective way and because the company is providing the shoppers with the innovative alcoholic drinks have various categories.
Strategic Direction
Marston’s PLC is continuing towards achieving the best position in the market, as strategic directions are focused. In order to get benefits in the market, Marston’s PLC should focus on more strategies for the shoppers so that there could be the advantages in the market and company could maintain its share in the industry. Marston’s PBA Report have told that in the year 2015 the company has got the maximum profit from the flavored bottles example, 92% growth in the past 6 years and the total value of the category of PBA reached to the £538m. It is the premium pub restaurant and records the revenue of £937.3m (Ambrose, 2016). Moreover, the company in this way wants to achieve the growth of £1bn category value by the year 2020, as outlined in the company report.
Current Performance (3-5 Years)
The current performance of the company revealed the growth in the recent years through the Bottled Ale as Annual Report of the year 2016, and previous years tell that the company had earned the £538m from the 376,000 shoppers and get the benefits from the brand innovation, the company is still continued to reach the goal of £1bn goal by the year 2020.
Marston’s PLC Porter’s Generic Strategy Model
Porter’s generic strategy model is focused either on the cost leadership strategy or the differentiation strategy, however, for the Marston’s PLC it could be better that the company should focus on the cost leadership strategy because the company is already well known for its operations in the market and the microbrewery is focused on the providing the quality and flavor at the cheap prices. However, a company is already applying differentiation strategy through focused more on the aspect of cost leadership Marston’s PLC can strengthen its position in the market.
Marston’s PLC needs to make effective practices for the inbound logistic and the operation, example there could be vertical integration and the Marston’s PLC can be the efficient producer for the single brewery. Outbound logistic, instance expansion of distributors and capacity utilization can prove to be effective, through efficient marketing and sales or service.
Marston’s PLC Ansoff’s Matrix
Ansoff’s matrix is the understanding tool for the market development. Marston’s PLC has focused on the new market and diversification through the Marston’s PLC is using the Premium technique known as the Bottled Ale Category, which is benefiting the company through 2015. However, for the market development, the company can focus on the existing products and take them into new markets for more advantages and in order to increase the revenue.
Conclusion
Marston’s Beer Company is one of the favorite beers in the UK brewery industry and the retailers should are focused on the improvement, a company could use effective approach and opportunities in the market as there is growing demand of the brewery. However, the company can focus more on the availability of PBAs in order to reach the target growth for the exceptional business. More space could be focused to keep the stock.
References
- Ambrose, J. (2016, November 24). Gastropubs drive record revenue for Marston’s. Retrieved June 10, 2017, from https://www.telegraph.co.uk/business/2016/11/24/gastropubs-drive-record-revenue-marstons/
- Gov.uk. (2015). Britain becomes ‘brewing powerhouse’. Retrieved June 10, 2017, from https://www.gov.uk/government/news/britain-becomes-brewing-powerhouse
- Hiriyappa, B. (2013). Strategic Management and Business Policy. Booktango.
- Marstons.co.uk. (2017). CORPORATE STRATEGY. Retrieved June 10, 2017, from https://www.marstons.co.uk/investors/strategy/
- Marstons.co.uk. (2017). WELCOME TO THE 2016 PREMIUM BOTTLED ALE (PBA) MARKET REPORT FROM MARSTON’S BEER COMPANY. Retrieved June 10, 2017, from https://www.marstons.co.uk/news/marstons-annual-bottled-ale-report-2016.aspx
- Olajire, A. A. (2012). The brewing industry and environmental challenges. Journal of Cleaner Production, 1-21.
- Porter, M. E. (2011). Competitive Advantage of Nations: Creating and Sustaining Superior Performance. Simon and Schuster.
- Proctor, T. (2014). Strategic Marketing: An Introduction. Routledge.
- YEC Women. (2012, September 11). A 5 Step Primer for Entering an International Market. Retrieved June 10, 2017, from https://www.forbes.com/sites/yec/2011/09/22/a-5-step-primer-for-entering-an-international-market/#706e04f50a09