The ultimate pitch to grow Maluti Mountain Brewery

The brand that must grow and revolutionise the beer industry - Maluti Premium Lager

Image on left is current look of beer, 2nd image - I created what it would look like once we are done with this strategy.

Seth Godin states, "Marketers make things happen by making change happen," which is what brands do; they innovate, grow, and adapt. Look at the brewing company AB InBev, and imagine owning many brands in your local country or across multiple nations in different flavours and sizes. How do you think they did it? What was their plan?

Maluti Premium Lager, a local beer in the mountain kingdom of Lesotho, is owned by Maluti Mountain Brewery, a "subsidiary of AB InBev" (Letsie, 2022). Moreover, the brewing company has established a robust presence nationwide and internationally. But where can it grow? Well, its local beer Maluti Premium Lager, could grow its brand.

Beer trends, non-alcoholic, low calorie, different flavours & types

Let's look at the trends

With the current paradigm shift, sustainability and changing consumer habits are at the forefront. Consumers demand beers filled with flavours, craft beers infused with taste, and nonalcoholic beers for "health-conscious consumers" (Gitnux, 2023).

"A beer that tastes good", quality beer makes loyal consumers - beer LITE

Today, as a brand, you must make a beer that evokes excitement, creates a sense of belonging, and creates consumer loyalty, but most importantly, one that tastes good.

Let's use the market expansion grid to explore four growth strategies for a brand and look at the risks. It states that a brand can either enter new markets, create new products, or remain in current markets, creating more demand for existing or new products (Peterdy,2022).

Market expansion grid by Anshoff

The four strategies are: ( Peterdy,2022)

a. Market penetration which has the lowest risk. "This assumes that the brand could sell more to its existing customers with its current product line."

b. Market development – has a medium risk and "assumes that Maluti could sell their current products but in new markets."

c. Product development – the risk increases but not too much. Maluti could "sell new products to its current customers."

d. Lastly, diversification has the "highest risk and assumes Maluti could "sell new products in new marketplaces."

Growth strategies

Incredible right? Nevertheless, let's explore several more growth strategies. These are:

1. New brand launches – Here, the Maluti brand must ensure that a new brand launch won't confuse customers; it must ask a series of questions to bring clarity and not rush the process (Klopper & North,2011). Nonetheless, changing a brand name can also be advantageous. These changes may only be necessary and advantageous "for mergers and acquisitions, if the name is outdated, to shift brand perceptions, and adapt to international languages" (Osler, 2004:87-91).

Brand extension - "the brewery's name is used to enter a new product category."

2. Then we have Extensions – Line, brand, concept (DelVecchio, 2000), and co-branding extensions. A brand extension is when "a brand enters into a new product category using its name," e.g., Maluti Mountain Brewery could enter the GIN category. Moreover, to avoid confusion, these extensions must follow the "parent brand" vision (Klopper & North, 2011), comprehend consumer perceptions and consider the extension's benefits.

3. What about Multi-brand strategies? – This is when a business has multiple products with different names in the "same market and product category" (Riezebos et al., 2003).

This image is Left field breweries new seltzer beverage

4. Lastly, we have Endorsement strategies – This strategy is where a brand will use its "parent name" on its product, along with its product name, and can be seen as "double branding." E.g., "Left field brewery" used an endorsement strategy on a new product.

Chosen strategies

So, what strategies will grow Maluti Premium Lager? Let's explore. The chosen strategies are market penetration and a line extension. But why?

Extensive marketing can be done to reach more consumers & increase sales

Firstly, market penetration has the lowest risk. This strategy entails that the Maluti brand would encourage more sales from current products. This could be achieved through extensive marketing, promotions, experiential marketing campaigns, loyalty programs, and "streamlining distribution" (Peterdy, 2022). The benefits would include the "market share rising."

Secondly, the Line extension strategy would mean Maluti "creates a new product similar or in the same category. (Klopper & North, 2011:227)." These include "adding new flavours, colors, ingredients, product forms, packaging, and sizes." Maluti Premium Lagers' line extension will include adding new flavors, Ingredients, and different colors to the packaging.

Line extension can have different colours to packaging to reflect beer flavour

This chosen strategy will give the line extension an advantage as it will lean on Maluti Premium Lagers' name and the "surrounding positive associations". However, "failure of the line extension could negatively affect the main brand".

Additionally, two types of line extensions exist, "horizontal and vertical." Maluti premium lager will choose the Horizontal line extension. "Horizontal means difference in price is none or small" ( Riezebos et al., 2003:187).

Let's talk Advantages

Maluti Premium Lagers' "sales and profits can rise, there will be more choices for consumers, brand awareness and engagement could increase (Klopper & North, 2011:227)."

Finally endorse a celebrity and watch your engagement skyrocket

research must be done when choosing a celebrity to endorse a brand

Maluti brand can endorse celebrities to boost awareness of the new line extension. Finally, the future benefits and vision of these new strategies lie in the parent brand's ability to understand its consumers, positioning, differentiation, its use of experiential marketing campaigns, and using the market expansion grid to its total capacity, while keeping up with trends.

Referencing

Forsyth, J. (n.d.). 10 Innovative Beers Tapping into New Opportunities. https://www.mintel.com/food-and-drink-market-news/10-innovative-beers-from-around-the-world-tapping-into-new-opportunities/

G. (2023, July 12). Beer Trends Worth Watching in 2023. https://blog.gitnux.com/beer-trends/

Letsie, M. (2022, October 1). Maluti Mountain Brewery Turns 40 years old. https://lesothotribune.co.ls/maluti-mountain-brewery-turns-40-years-old

Salter, J., & Livingstone, K. (2022, September 26). Maluti Mountain Brewery : Brewing at its Peak. Ab InBev. https://www.africaoutlookmag.com/company-profiles/1525-maluti-mountain-brewery

(n.d.). Maluti Mountain Brewery has introduced its first alcoholic free beer 2020. Facebook. https://www.facebook.com/lestimes/posts/maluti-mountain-brewery-mmb-has-introduced-its-first-alcohol-free-beer-castle-fr/1646471115493807/

(n.d.). Industry analysis beer market report overview 2022-2030. https://www.grandviewresearch.com/industry-analysis/beer-market

(n.d.). Five beer industry trends to watch in 2023. Cedarstoneindustry. https://cedarstoneindustry.com/5-beer-industry-trends-to-watch-in-2023/

(2023, April 23). AB InBev. Ab InBev. https://www.ab-inbev.com/news-media/news-stories/ab-inbev-leading-the-largest-voluntary-beer-guidance-labeling/