Murphy Brewery Ireland Limited
This Case Touches on the Following Marketing Topics:
Murphy Brewery needs to set a clear and attainable objective. It should identify its strength and then build its strategies accordingly. It needs to set a clear cut marketing structure and an organizational culture. Some of the marketing areas that the case touches upon are:
- Synergies that can be achieved through mergers and the threat it poses to the competitors.
- Analysing competition in the global market.
- How companies should make strategies according to that of competitors.
- Whether a company should go for one global marketing strategy or adapt to different marketing strategies depending on the needs of local consumers.
The key Marketing Issue(s) in this Case is/are:
The main issue in the case is to develop a pro-active, long term strategy for Murphy rather than going for a strategy. They need to see whether to apply a local strategy or one global strategy. Also, they need to increase the market share but at the same time make sure that they have enough capacity to meet the increased demand.
The company needs to thoroughly conduct its marketing strategy analysis. Murphy should develop a marketing mix that is consistent, matches its objectives and focuses on their target markets.
I See the Root Cause(s) as Being (defend):
As discussed in the case, Alcohol consumption was falling coz of increased health concerns. Murphy share was already less in the market as compared to that of its competitor so the company should come up with a focused strategy rather than a general one. For e.g. is Ireland Murphy developed growth thorough exporting and making such packaging design that targeted the take-home market.
Another cause of the problem is that when we analyse Murphy’s competitor, it can be noted that they invest a lot on advertising. Guinness 12 million pounds investment in advertising called the Big Pint and extensive billboard advertising that represented the strength of the brand was a big success for it. Similarly Murphy’s sales could improve if they spend more budget on advertising. They need to come up as a big brand in order to establish a strong market share and to compete with Guinness and other leading brands.
I have Identified the Following Possible Alternatives (with their Pros and Cons):
Murphy should work on the promotion of their brand. In order to sustain in the market they need to get big. They need to invest more in their advertising budget so that they can achieve a larger market share. The problem with this is that as they increase their market share they will also have to increase their capacity and will have to invest in that too.
Another alternative to this is to remain a niche brand but that has its own pros and cons. Murphy has to see that if it is a premium brand then it should design its marketing mix according to that too. It is a good option as US consumers have high living standard and they represent a major market worldwide. At the same time they should consider that high end consumers have their own choices. So before becoming a premium brand a through market analysis should be carried out that identifies customer preferences and then a strategy shall be designed accordingly.
My Ultimate Recommendation(s) to Address the Identified Problem(s):
The best thing that Murphy to do will be to work on increasing its market share. If they will not do it than the competitors can take over the market and this can prove to be bad for Murphy. They also need to find a sustainable competitive advantage for themselves.
How I see my Recommendation(s) Being Implemented:
Murphy should devise its strategies depending on the taste of local consumers rather than going for one global strategy that could be applied everywhere. It is very important for brands to understand that marketing and advertising campaigns should be altered according to the locals so that the customers can relate to the brand as their own brand.
For e.g. in UK Murphy gained a high market share because they collaborated with a local firm. The success in UK was achieved due to several factors like strong distribution network, good marketing and advertising strategy that has helped the company to achieve many awards. These awards were something that created loyalties of local customers towards the brand.
They can also achieve the sustainable competitive advantage by cashing on their brand history. They can present themselves as expert Irish brewers that are the best since their time. They should make the customer realize that this brand represents zeal, power and vigour.
As Murphy Continues to Increase its market Share they Should also Increase its Capacity so that they can Meet an Increase in Demand.
- Murphy Brewery Ireland Ltd., Case Study.