Strategic Managaemnt Review or C&C Group Plc

2906 WordsDec 13, 200912 Pages
C & C PLC Analysis Strategic Management C&C Group plc headquartered in Dublin, Ireland and with manufacturing plants in Clonmel, is a leading manufacturer, marketer and distributor of cider, such as the leading Irish cider brand Bulmers and the premium international cider brand Magners. The company also distributes niche spirits and liqueurs brands across a number of international markets, such as Tullamore Dew, globally the #2 Irish whiskey brand, and Frangelico. The brands are distributed by two companies: Hollywood &Donnelly and Quinns Reihill McKeown. RoW-Rest of World RoI-Rep. of Ireland Operating Profit by Division 2007/8 Operating Profit by Region 2007/8 [pic] [pic] Geographic…show more content…
Consequently Sterling has devalued vis à vis the Euro, GDP is contracting at approximately 3,5 % and the population is experiencing commensurate losses in purchasing power and consumer confidence. The economic slowdown has led to less consumption, therefore affecting C&C. Cider sales and operating margin ▪ C&C reported a 12% decline in cider volume over the six months leading to August 2008; shares in off-trade fell from 8.3% to 7.5% and shares in bottled ciders for pubs in Britain fell from 69% to 52% ▪ Overall sales are expected to be 8% lower ▪ The Irish inflation rate stands at 4.3%, compared to the European 3.6% average ▪ Investment and trading in new materials and equipment is likely to decrease therefore making competitiveness higher. ▪ Operating profit on cider fell by a hefty 40% during the book year 2007/8 and 30% during the book year 2008/9.As already stated above this was partially due to overall drops in sales and bad summer conditions, however exacerbated by the strengthening of the Euro against Sterling, the loss of market share and the price hikes on raw material. ▪ To stem the negative tide C&C has started an aggressive marketing campaign on its cider brands, increasing the marketing expenditure by

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