To realise the growth strategy, it is essential to be in a position to respond quickly and effectively to new consumer trends. First and foremost, this requires a systematic, targeted and not least integrated approach to innovation linking it to the consumer insights of marketing and sales.
Management of Carlsberg’s international brand portfolio is carried out centrally at Group level to ensure correct prioritisation and streamlining, and to build strong and efficient brand platforms and growth models in order to optimise profits. Final execution and implementation of the strategies are secured through the local sales organisations. As a rule, management of local brands is decentralised but in order to achieve synergies across markets, a central brand network has been established at Group level to facilitate the development and sharing of ideas, concepts and experiences, enabling these to be applied to local brands in different markets.
Carlsberg’s core business is beer and innovation and newly developed products will first of all be within the beer category. As well as developing the product range locally, efforts are increasingly concentrated on larger international launch concepts. However, as Carlsberg’s core competences are within malt- and cereal-based beverages, innovation will also build on these and include adjacent new platforms like, for example, women and health.
In addition to developing and launching new products, innovation efforts will also include enhancements and innovations for existing products in order to offer trade-up opportunities to consumers by introducing new packaging or line extensions (such as flavour variants or reduced-calorie and low-alcohol versions).
Commercial execution will also be on the agenda in the years ahead. An example within this area is the development of sophisticated methods and intelligent tools that have been taken into use for analysing consumer behaviour with a view to improving product placement and sales in locations such as supermarkets, convenience stores, restaurants, cafés and bars. Another area that is being scrutinised is how to optimise the route to market in order to improve the service provided to our customers and consumers. This work is being done market by market to recognise the differences across markets.
In a market environment in Northern & Western Europe which is characterised by a number of challenges pointing towards flat or declining beer markets, professional value management is an important way to increase net revenue per hl for both Carlsberg and its customers. Value management covers various levers, including but not limited to product mix optimisation, pack sizes, pay-for-performance incentive schemes, targeted price increases etc. in compliance with local practices and regulations. The approach is supported by tools and internal training programmes that will create a strong platform for revenue growth.