Cerjugo SA

1444 WordsFeb 8, 20156 Pages
CERJUGO SA Background Cerjugo SA is the largest manufacturer and distributor of beer in a country in Latin America.* Started in 1960, Cerjugo currently sells 360 million bottles of beer annually with revenues last year in excess of $200 million. Cerjugo employs 2500 employees and its four beer brands account for 98 percent of the market share. The beer manufacturer has been growing steadily with the GDP of the country thanks to little competition and no new entrants in the market. Cerjugo has its own distribution fleet and manufacturing facility, its entire customer base is local, and customers are loyal to the flagship brand. Per capita beer consumption in the country had been stable for many years. In order to find new opportunities…show more content…
He is in charge of four departments, each headed up by a senior manager. These departments are distribution, trade marketing, market research, and sales. The sales department, which has 1400 employees, is further divided into urban sales and rural sales, and there are 13 rural sales managers reporting to the head of rural sales. Each sales representative serves a territory that usually consists of both licensed and non-licensed establishments. They supply retailers with product information and storefront displays. They also offer discounts and promotions, where appropriate, in an attempt to win limited retailer shelf space. A partial organization chart is shown in Exhibit A. The Current Situation Manuel is very concerned since the forecasted sales and profit targets for the juice business have not been met for the second year in a row. Perceptions in the market are that Cerjugo juice is not of a high quality, and consumers do not appear to be aware of the degree of “freshness” in the products. In addition, the sales force does not seem to fully understand the juice product attributes and tends to focus on selling beer rather than juice products. Turnover in the sales force has increased dramatically and there has been a great deal of in-fighting between Jose, Feliz, and Maria. They always seem to be at opposing ends of an issue and Manuel has to make decisions that inevitably angers one or other of them. The last straw

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