Situational Analysis of Murphy Brewery Ireland, Limited
Murphy Brewery Ireland, Limited, (MBIL) is an international stout brewing company. Murphy, ironically, is recognized in Ireland as the most common surname and is recognized internationally for its Irish heritage. This heritage is spread around the world and is shown through Murphy’s exports, which represents 85% of Murphy’s sales.
MBIL was founded in 1856 in Cork City, Ireland. The founders, four brothers, were valued enterprise and narrowed their brewing offerings to the stout market. Stout is a black-malted-barley filled with nitrogen and it forms a thick white head upon opening. Stout is associated with Guinness, the leader in stouts. The main marketing focus for Guinness is to promote strength in its drinkers. Guinness commonly advertises its stout along side a superhuman muscle man.
Murphy’s used to brew porter before it switched to stout. By 1965, stout was its main product. Besides these products, Murphy’s also has developed some spirits and soft drinks. Also, some financial difficulties
In 1975 Murphy’s began a licensing operation to produce Heineken in Ireland, which complemented the Murphy’s Irish Stout offering. In 1983 Heineken International purchased the assets of Murphy Limited, which was then in receivership. Murphy Brewery Ireland Limited became a wholly owned subsidiary of Heineken International. This move made Murphy’s Irish Stout available to drinkers worldwide.
Heineken International is the world’s second largest brewer and a private company. Its flagship Heineken lager, the world’s most exported beer, and the Amstel brand are also brewed under license by third parties. They are sold in 170 countries on all continents. The Heineken brand is sold in the same green bottle and is promoted with the same brand image in similar markets of China, Spain, and the United States. Heineken was the first beer to be imported into the United States after Prohibition was lifted in 1933. Currently, the Untied States is its largest market. It is produced in a light-green bottle.
Stout (MIS): – available in 63 countries
– 200% growth in 1996 internationally
– 163% in USA,
– 700% growth in last decade
– Ireland increased only 10%
Grand Met, Guinness to Merge.
Guinness is the big player who outsells MBIL worldwide including Ireland. Guinness is the pioneer in the stout category and is even older than Murphy’s. Guinness is the eighth largest brewer in the world in terms of volume, with over a 2 percent market share.
In addition, the UK and Continental European imported beer markets are declining.
The leading American imports in order are Heineken, Corona, Molson Backs, and Amstel Light.
Murphy’s Brands and Packaging are differentiated differently in different markets. In Europe they sell 330 ml cans and in America they sell, 14.9 oz cans. The bottles are amber in color. The label is dark blue and red colored, accented by gold signifying a high-quality product. Murphy needs a stronger image due to increased interest in genuine beers.
Heineken is in a green bottle, Molson is in green bottle, and Amstel light is in a light-brown bottle. Murphy’s should produce a creamy-white bottle. They should stamp import on it and Advertise using strong famous Irish Actors or maybe a leprechauns.
Murphy’s is famous for it’s creamy stout, The Irish have a fair white skin, and we recommend producing in a white creamy bottle. They should advertise the white head. Non-dark beer connoisseurs might think it tempting. They might taste what’s underneath and acquire the taste.
We recommend that Murphy’s promote a creamy, white twelve-ounce bottle. They should target a few selected locations to survey its customers’ ideas. We expect that the strong man image, tempted to taste, white creamy head/white creamy bottle look, will hold as Murphy’s long-term marketing strategy. Murphy’s success in meeting it’s year 2,000 output increase will have been met, enabling Murphy’s ability to approach Heineken for capitalization of new Heineken facilities. The capacity maximization overload at the Cork Brewery will be eliminated, so as to best focus in on its Irish pilmage clientele.
We conclude that Murphy’s can focus in on to its pilgrimage clientele and utilize the Heineken brewing facilities by marketing, towards Americans. The strong man, tempted to taste, head. The imported novelty will in-effect, effect, the inactive European and American Nations. We expect that Murphy’s will ultimately capture an equal share as Guinness, at least in the foreign market.