CORPORATIVE STRATEGIES

1 LEADERSHIP COST
Our strategy is based on lower cost, because the fastest way to get into the
market, position in it and beat the rest of our competitors is to offer a beer of high
quality with a lower price in comparison with the rest of rival beers. However, it is a
fact that to offer a low-priced beer we have to establish and manage lower
operation costs so that our profits wont be affected.
LEADERSHIP COST FOR THE BEER INDUSTRY
Product differentiation Low (price)
Market segmentation Low (mass market)
Distinctive skills Production and supplier logistic

2 PERSONNEL AND PLANT IMPLEMENTATION
2.1 As we have described before, we need to establish and manage lower
costs than those of the rest of competitors (Pilsen, Cusquea, Arequipea
and Cristal). Thats why after analysing the personnel cost between
operating the plant with a Peruvian staff or a Brazilian staff, we decided that
the executive positions should be for Brazilian people and the non-executive
positions should be occupied by Peruvian people.
2.2 We decided that the investment in plant should be made in Lima. This
decision is based in the fact that most of the beer market is centralized in
Lima and this will improve our distribution chain.



MARKETING STRATEGY FOR AMBER CO.
Taking advantage of the strength that Amber has nowadays in the market
worldwide, our group has thought the next strategies to penetrate the Peruvian
market successfully:
First of all, the company has to communicate about its best characteristics to
their target market: prestige, great taste, high quality, success in each
country they have invested in, and how strong the company is among the
competence. All this communication strategy is going to be performed
through television advertisements, radio, brochures, magazines,
newspapers (for instance, El Comercio), etc. and it is going to last for about
3 months. It has to be really intense. Concerning to the market segment,
young people has 52 % of market share, according to the beer distribution
chart.
It has to enter the market with low prices, as the product is in the
introduction phase, and to get new and potential consumers from the
competence (Backus, which is really strong in Peru). For this strategy we
have to segment and pick up the best distribution channels to have
presence. This is our first step.
Taking advantage of the arrival of summer, and the fact that bear
consumption is more frequent, we are going to make strategic alliances with
discos, mainly with the ones located in Asia beach where our target usually
go. Also we are going to put testers in the markets (Wong, Santa Isabel,
Plaza Vea), because a lot of people start to know a product while making
their domestics buys, for example. There is going to be trained people in
some beaches delivering beers for free (just for a short period of time,
otherwise the customer will get the habit of buying just in promotional
periods but not for the products inner attributes), and giving merchandise
products. We have to fill all the possible blanks where our target and
competence are. Even in other departments of the country.
We know our competence has 94 % of market share in Peru (Backus
brands), which is really hard for us to deal with. Then, we will use all our
experience and knowledge to do it.
Amber brand is going to be in many places such as the gas stations (Mobil
and Schell). This in order to position the brand in the market and let the
competence know that Amber is fighting to win, but this very subliminal.
Once the target market has tasted and approved our product, and it is
settled on the market, we are going to increase a little bit our prices (after a
year maybe) and make a difference with our different beer presentations
and capacities, featuring 4 different kind of beer: Classic, Light, Black Beer,
and a special beer that is going to be sold in certain events, like Amber
anniversary (with another taste or with a special version or capacity). In
other words, we are going to diversify our products: different products for the
same market (the same target, at least in the following two years).
After verifying the results of our market share and realize the actual status of
our company, we will continue if the results are satisfactory or we will stop
and study what our mistakes are and how well have to fix the problems to
start again. This is really important because if we dont follow our results, we
may lose money, time and our perspective of the initial goal and then we are
going to fail.