Università degli Studi di Catania

Corso di Marketing
A.A 2021/2022

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 Authors:
María Ribelles Pommarez

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1 INDEX
1. INTRODUCTION...................................................................................................................3
1.1 The History........................................................................................................................3
1.2 Company Philosophy and Strategy....................................................................................4
2. EXTERNAL AUDIT...............................................................................................................5
2.1 External audit: attractiveness of the environment..............................................................5
2.2 The Market Segments........................................................................................................5
2.3 The competitive environment............................................................................................6
2.4 Analysis of primary demand..............................................................................................9
2.5 Life Cycle of the Product.................................................................................................10
2.6 Porter's Five Forces.........................................................................................................11
2.7 Pest Analysis (Political, Economic, Social, Technological).............................................12
3. INTERNAL AUDIT: analysis of the company's competitiveness.........................................14
3.1 Competitive advantage of Cruzcampo.............................................................................14
3.2 Brand management..........................................................................................................14
3.3 Swot Analysis.................................................................................................................14
4. MARKETING MIX...............................................................................................................17
4.1 Product............................................................................................................................17
4.2 Distribution......................................................................................................................18
4.3 Price.................................................................................................................................19
4.4 Comunication..................................................................................................................20
5. CONCLUSION......................................................................................................................22

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1. INTRODUCTION

1.1 THE HISTORY

Cruzcampo is a brand of beer created in Seville in 1904. In 1991 it was acquired by

Guinness Brewing Worldwide and, since 2000, it belongs to the Dutch brewing
company Heineken International. The project to create the company arose in 1902 by
the brothers Tomás and Roberto Osborne Guezala, that were dedicated to the wine
sector.

Both brothers had traveled through Germany and the Benelux learning about the
process of creating beer. They decided to create the company in Andalusia despite
being a region of great acceptance of wine. The purpose was to diversify the offer of
alcoholic beverages, to sell barley and to reduce the high unemployment rate in the
region. The chosen place was Seville, because it has water with optimal characteristics
for the beer manufacturing process.
The factory was located to the east of the city, near a temple known as the “Cruz del
Campo”. This temple was the one that inspired the name of the company. Gambrinus,
a character from German mythology fond of beer, was chosen to decorate the
product's packaging and give identity to the brand.

Ilustración 1. Old Cruzcampo's factory

In 1904, the brewery comes up with a unique yeast strain. This gave rise to the first
Cruzcampo beer, with properties and essence that remain intact today.
In 1916 Tomás left the company to focus on the wines of the family company and the
brewery was run by Roberto until the end of his days, in 1937. That same year,
Cruzcampo was established as a public limited company.
After the Spanish Civil War, 1939, the factory had to close for 2 years due to lack of
raw materials, although the staff did not stop receiving their salary. During the first
decades about 100 people worked in the company. In 2004, 700 people were already
working at the Sevillian factory

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As early as 1940, they began to break boundaries and expand. During this decade,
Cruzcampo sows great contributions in research and development for science, for the
benefit of Spanish and European beer. Technological improvements such as rapid
bottling were carried out. That helped Cruzcampo a lot to grow.
In 1995 the Cruzcampo Foundation was created, with the aim of promoting the
development of young talent, culture and hospitality in Andalusia.
Nowadays, Cruzcampo continues to maintain the innovative spirit of its founders and
exclusively produces special varieties of craft beer. It is the beer chosen by the
restaurant chains 100 Montaditos and La Sureña, of the Restalia group, which has an
international presence.

1.2 COMPANY PHILOSOPHY AND STRATEGY

The company adopts the following philosophy:

Vision:
To be a reference company, leading the beer industry throughout Andalusia with
sustainable growth at a national level, committed to the excellence of their beers,
products and services, thanks to the proximity of the market, respect and transparency
in the relationship with their employees and consumers.
Mission:
Cruzcampo's mission is to create and strengthen the feeling of pride and belonging in
the consumer by offering the products and services sought by the market. For this they
have their own barley cultivation to ensure the quality and best flavor of their beers.
They are also committed to the opportunities offered by emerging markets, recognizing
their sustainability as an essential part of their strategy.
Values:
Cruzcampo is committed to sociability, spontaneity, passion, liveliness and enjoyment
of life that represents the spirit of southern Spain, which in turn is associated with the
brand. All the people who are part of the field bet on an extra and exclusive value to the
company which gives competitive advantages to its competitors.

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2. EXTERNAL AUDIT

2.1 EXTERNAL AUDIT: ATTRACTIVENESS OF THE ENVIRONMENT

The external audit aims to determine the attractiveness of the external environment to
the organization, understood as the set of opportunities and threats with which it is
compare the economic operators who operate within the products-markets of
reference. To do this it is necessary to carry out an in-depth analysis of the demand in
in such a way as to know the needs and the purchasing and use behavior of customers
and consumers.
In light of this, for the realization of a strategic marketing plan it is necessary take into
account the following factors:

• Market trends;
• Customer behavior;
• The evolution of distribution;
• The competitive environment;
• The evolution of the environment;
• The international context.

2.2 THE MARKET SEGMENTS

Customers are the main asset of the company since they are the engine for and for
which it works. Therefore, it is necessary to consider certain factors when thinking
about putting new products on the market. Among these factors we can make different
segmentations such as:

• Segmentation by gender. This market is relatively large and is open to both sexes,
thus allowing greater product diversification. Consumption of Shandy is not conditioned
by sex, therefore, it is equitable. Although since time immemorial lemon beer
consumption has been associated more among women.

• Segmentation by age. Among young people it is almost routine, they do it to

accompany meals or when they go out, adults consume it daily, on some occasions
without alcohol and the elderly are even prohibited from consuming alcohol.

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• Segmentation according to economic level. This does not influence the consumption
of this kind of beer. Its price is accessible to all social classes.

• Segmentation by educational level. This is another factor that does not influence
lemon beer consumption, but it can be a key point, since many young people drink
more than the average when they are in college, for example, due to the different social
gatherings they organize.

• Segmentation by place of residence. There are several geographical areas where it is

more extended, such as the United States and Western Europe.

• Segmentation by loyalty to the product. The clients of the lemon beer are normally
the same. The most loyal to it are usually the habitants of the southern part of Spain
due to the origins of the brand.

• Segmentation according to the type of residence. As mentioned in the previous point,

Shandy Cruzcampo beer is more frequented in the southern part of Spain due to its
origins.

2.3 THE COMPETITIVE ENVIRONMENT

The main competitors

At present we find mainly three large leading companies in the beer industry. Mahou
San Miguel, Cruzcampo and Damm.

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Mahou Mixta

Hecha La cerveza más joven de Mahou es una cerveza clara Shandy con 0,9% de
grado alcohólico, muy refrescante.
Combinación de 16% de cerveza Mahou 5 Estrellas, en la que destaca el cuidado en la
selección de las cebadas y su malteo, así como la combinación de variedades de lúpulo
amargas y semiaromáticas de origen europeo; y 84% de refresco de limón, que le
aporta los aromas cítricos y el dulzor característico de las Shandys.
Su aspecto se caracteriza por un color dorado, brillante de aspecto y con espuma ligera.
Aroma frutal con predominio cítrico de limón. En boca destaca un gusto dulce ligero
dejando pasado a un muy sutil amargo con toque acido. Cuerpo fino. El precio de venta
es 0,65 el botellín de cerveza.
Damm Radler

Clara hecha según la receta tradicional mediterránea: 6 partes de cerveza mediterránea

de malta, arroz y lúpulo por 4 partes de limón con un toque de lima. Los limones de
Damm Lemon son de la variedad “Primafiori” del mediterráneo.
Tiene un ligero toque de lima del Caribe, que hace el sabor más refrescante y
sofisticado. El porcentaje de alcohol es. 3,2% vol. y su precio de venta en los
supermercados es de 0,68 euros el botellín de cerveza.

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Main competitors out of the brewing sector
Apart from the traditional competitors, Cruzcampo must also take into account other
business. Although beer is the most consumed alcoholic beverage in Spain, we cannot
forget one of the biggest competitors, the soft drink companies. With 83%, beer
governs the alcohol consumption of the Spanish people but is followed by the
consumption of wine with 77%. The company that leaders the sector of non-alcoholic
drinks is Coca-Cola Company.
Spanish people spend around 13,160 million euros on beer and around 16,200 on soft
drinks.

Fanta Lemon
Is the leader in non-alcoholic beverage. It has a huge number of brands but the most
common ones are Coca-Cola, Fanta and Sprite. The main competitor is Fanta Lemon
because of its similarity to the beer. The flavor can be very alike.

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2.4 ANALYSIS OF PRIMARY DEMAND

Tourism and hospitality are the two great levers of beer consumption and production in
Spain and Andalusia, where both springs are an essential part of its economy, it is the
first market in the sector.
Specifically, the geographical area formed by Andalusia, the south of Extremadura,
Ceuta and Melilla remains at the forefront of beer sales, with 8.4 million hectoliters
sold, which represents almost a quarter of the national business in the sector (23.7%).
The flagship of the Andalusian sector is Heineken-Cruzcampo, which has its Spanish
headquarters in Seville, where its main factory is located. The Dutch parent company is
in second position in the national ranking by production volume, with 10.5 million
hectoliters per year, which represents a 28% share of all the beer manufactured in our
country. Of this figure, 4.2 million hectoliters correspond to the Seville factory.

On the other hand, 90% of the production of the Seville factory of Heineken Spain is
destined for the Andalusian market, according to the director of the factory, Juan
Candau.
Eleven years ago, Heineken moved its industry from the old facilities in Cruzcampo to
the new factory after a strong investment. Currently, 220 people work directly in this
modern factory, in addition to around 80 service contract employees.

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2.5 LIFE CYCLE OF THE PRODUCT

The product life cycle shows us the evolution of sales of an item manufactured by a
company during the time it remains on the market. The product do not generate a
maximum sales volume immediately after being introduced to the market, nor do they
maintain their growth indefinitely.
The conditions under which a product is sold change over time; thus, sales vary
according to factors of the environment and the strategies of price, distribution and
promotion must be adjusted taking into account the moment or phase of the life cycle in
which the product is and the environment itself.
To know which position a product is in, it is common to use the BCG Matrix (Boston
Consulting Group):
Star Product: Since it is new, it sells many units and achieves a good position in the
market. We can say that it is in phases 2 and 3 of the Product Life Cycle.
Cow Product: its heyday is over. It is an always profitable product, its sales record
ensures the positioning of the brand in the company and, fundamentally, in the market.
Dog Product: it usually has a low sales volume; its quality is not good and it is far from
being profitable. Its importance lies in keeping that market niche occupied and not
allowing a rival to monopolize the market.
Question Mark Product: here new markets are sought to conquer. The feasibility and
estimated profitability of a new product are evaluated. During this process, surveys and
tests are carried out on potential consumers. The company is constantly looking for
new and attractive products to gain market share without leaving much room for the
competition.

Ilustración 6. BCG Matrix

The Shandy is in a period of Introduction.

Within the BCG matrix we can place Shandy within the question mark porque es un
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producto con un crecimiento elevado, pero con una participación débil en el mercado.
Al encontrarse con un alto crecimiento, normalmente requiere de altas inversiones
financieras, pero al tener una escasa participación en el mercado los ingresos que
genera son bajos.

2.6 PORTER'S FIVE FORCES

Porter's 5 forces are a fundamental concept of businesses from which you can
maximize resources and outperform competition, they also allow to know the use of the
competitive strategy and they also determine the profitability that can be obtained in the
market in the long term, that is, to know the current value of the company and the
future projection.
The 5 forces of Porter will be described below:

I. Threat of new competitors:

It is carried out in the industry in order to detect companies with the same economic
characteristics or with products similar on the market. In the case of Cruzcampo there
is a great threat from competitors.

II. Bargaining power of suppliers:

Refers to the ability to negotiation available to suppliers. This allows them to better
prices, best delivery times, payment methods… . In general, the raw materials for the
manufacture of beer are easily accessible, so it can be said that the suppliers do not
have great bargaining power since the brewing sector is so concentrated that there is
not much option for new clients for the providers. Therefore, the bargaining power of
suppliers is low.

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 III. Bargaining power of customers:

The main customers of this product are end consumers, who are increasingly
demanding, selective and critical, seeking in turn better prices, quality and greater
variety. In general, they have high bargaining power since they can change brands if
they are not satisfied. The bargaining power of customers is therefore high.

IV. Threat of new products or services:

In the case of beer, there is a variety of substitute products on the market, such as
wine, alcoholic aperitifs, soft drinks or cider. A relevant factor in the brewing industry is
the great substitutability of the aforementioned products, especially due to their low
cost, in some cases, which generates a high sensitivity between the relationship
between the existing price and the different products. The threat from the products is
therefore high.

V. Rivalry and market competition:

The beer market is growing every day. Until a few years ago there was a long list of
production companies, but with the crisis many have been acquired or have simply
disappeared. For this reason there is constant competition through prices, promotions
and new products. Based on the above we can conclude that it is an unattractive
market to enter it, since there is currently a lot of competition, in addition to the difficult
entry barriers and exit.

2.7 PEST ANALYSIS (POLITICAL, ECONOMIC, SOCIAL, TECHNOLOGICAL)

1) Political
The political situation has been favorable for the beer industry,
increasing the development of Shandy Cruzcampo, given that it has
had no major problems entering the market in the different countries. At
present, with the economic crisis and the new regulations for the
consumption of alcoholic beverages only from the age of 18 in most
autonomous communities, their sales and profit margin can be seen to
be slightly reduced, in addition to the high taxation that bear beer.

2) Economic
In most of the countries where Shandy Cruzcampo is present, the
economy is stable, but with the latest European and world crisis, the
devaluation of the euro currency occurs, which affects profits and
sales.

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3) Social
It follows that the products are aimed at almost all sectors of social
class and what type of economy is not taken into account. These
customers are willing to pay the Shandy Cruzcampo, beginning to be
consumed in some communities and countries from adolescence, with
what is expected and also, on many occasions, loyalty is achieved.
A change in consumption habits is taking place. Beer is drunk less in
bars and more in homes, a change that is causing companies to turn
more and more their efforts to the supermarket and hypermarket
segment, where white brands are becoming stronger.

4) Technological
Advances in technology and innovation are the aspects that provide
the greatest benefit to Shandy Cruzcampo, since each year superior
and less expensive technologies are discovered for the manufacture
of products. Cruzcampo has used this factor successfully, continuously
improving and innovating its line.

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3. INTERNAL AUDIT: ANALYSIS OF THE COMPANY'S
COMPETITIVENESS

3.1 COMPETITIVE ADVANTAGE OF SHANDY

Shandy Cruzcampo, compared to other products, stands out for its continuous
innovation that is vital if we take into account the competitiveness in the sector, with the
appearance of new products. The brand since its inception, has always stood out for its
capacity for innovation and to get ahead of its competitors. There is no doubt that this
capacity is a great competitive advantage, which the company must continue to exploit
in order to avoid being absorbed by other companies in the sector. We must highlight
how Cruzcampo reinvents itself continuously, either with new packaging or products
that add to its portfolio. Another advantage to highlight would be the loyalty of its
consumers and the location in their minds. Cruzcampo, has managed to create a
community around it that makes the consumer reach a place and the first brand
that comes to mind and wants to consume, is Cruzcampo.

3.2 SWOT ANALYSIS

The SWOT Analysis is a tool to know the real situation in which an organization,
company or project finds itself, and plan a future strategy.

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During the strategic planning stage and based on the SWOT analysis, each of the
following questions should be answered by those responsible for the analysis and the
company:
• How can each strength be exploited?
• How can you take advantage of every opportunity?
• How can you stop each weakness?
• How can you defend yourself against each threat?

Ilustración 7. SWOT Analysis table

WEAKNESSES
 No direct and immediate return on investments made in countries outside the
European Union.

 Being a brand with so much history and prestige, rigidity was imposed on
decision-making and limited the pace of growth.

 It does not have a greater global presence than its main competitor Heineken.

 The location of its factories is close to populated areas, which amplifies the
effect of certain environmental aspects (odors, smoke, waste storage, etc.).

THREATS
 That Spanish environmental legislation becomes more complex and
excessively expensive to maintain.

 Progressive increase in costs.

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  The legal differences between countries and their requirements when
continuing with the process of international expansion, especially outside the
European Union.

 Progressive limitation of the company in access to natural resources (water,

fuel, raw materials, etc.). Significantly increasing the cost of its products, all
highly influenced by constant climate change.

STRENGTHS
 Relatively, it can be said that the Cruzcampo brand has a good image, both
nationally, particularly in the places where each of the factories is located, and
also abroad, although to a lesser extent.

 The Spanish Market was and continues to be a large consumer of beer.

 Most of its facilities are highly technical, allowing technological adaptation.

 Environmental management is fully integrated into the business strategy and

implemented by employees.

 It has an organized infrastructure for the elimination / reuse of waste.

OPPORTUNITIES
 Constant cost savings and enhancement of energy efficiency, due to adequate
environmental management.

 Adaptability of its products to the new and changing eating habits of consumers.

 Existence of offers for improvement or specialized external technological

assistance.

 Create collaboration agreements between the administration, the sector,

universities and companies for joint and sustainable development.

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 4. MARKETING MIX

The term Marketing Mix appears in the 40s of the last century, when marketing
managers of different multinationals, when alluding to specific objectives of study and
control, referred to them as the mixture of ingredients to create business strategies, of
which multiple classifications have been elaborated. on the different variables of
Marketing.

Ilustración 8. Marketin Mix Structure

4.1 PRODUCT

It is a lager beer blend drink flavored with lemonade, with very low alcohol level. Made
exclusively with natural ingredients: water, Pilsen malt, hops, liquid sugar, lemon aroma
and exclusive Cruzcampo yeast.
It is a drink of bright golden color and white foam little present in the service.
It presents citrus aromas that stand out on its mild bitterness and sweet taste of fresh
lemon with an excellent palate. It is a light-bodied drink that leaves a very refreshing bitter
aftertaste.

4.2 DISTRIBUTION

In this section it is about making known the way to get the product to the customer or
final consumer. This includes everything from the sellers themselves to the task of
transporting the product to the place of consumption.

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For this type of products, their distribution must be carried out through the distribution
channel normally formed by the manufacturer himself, wholesalers, retailers and the
final consumer.
Cruzcampo is offered in franchises to be able to compete with its rivals, mainly the
Spanish beer brand Mahou, which is the leading brand in this sector in Spain carrying
out an aggressive pricing strategy given the high competitiveness of the sector. For this
same reason, the distribution carried out by Cruzcampo is intensive in order to reach
the maximum number of customers since the brand is already consolidated in this
market.
Cruzcampo beer can be obtained anywhere in Spain, as its distribution is not limited to
the south, although in Andalusia it is more consumed. It has factories spread
throughout the Spanish geography (Seville, Madrid, Jaén, Arano and Valencia).
Cruzcampo beer can also be found in territories outside Spain, but it is somewhat less
common since its import price is higher.

Ilustración 10. Actual Crucampo's factory in Seville

Depending on who the product is distributed to, Cruzcampo has two distribution
channels:
- Short indirect channel: the company Cruzcampo distributes directly to retailers
(supermarkets), where later the final consumers will go to buy them.
- Long indirect channel: Cruzcampo contacts wholesalers (distribution company),
who distribute the product to retailers (bars, restaurants ...), where finally the
product is consumed by the consumer.

4.3 PRICE

Thanks to the consolidation of large brewing groups in Spain (such as MSM, Damm,
etc.), the acquisition of new customers is increasingly complicated, which is why as a
strategy based on costs and prices, the Heineken Spain group launched campaigns
with a great intensity in promotions to its consumers. These campaigns were divided or
conditioned, according to the application segments. On the one hand there are those

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made by time slots, there are night promotions, daytime promotions, there are also
product gifts when the buyer makes an initial purchase.
The promotions have been carried out in packs of 6 beers, which is sold for 2,95 euros.
Prices that at the level of hospitality are very economical and are far from the normal
prices that all the beers of consolidated brands in Spain usually have.

Ilustración 11. Pack Cruzcampo offered

Although it must be said that it is quite important the fact that apart from the cost that
the products represent for consumers, a large majority choose them for recognition of
both the product and the brand, according to some notebooks or thanks to social
networks, just knowing that it is a product of the Cruzcampo brand already creates a
feeling of quality and taste, so they do not need much to opt for these products (this
happens especially in the south). These reactions can easily be interpreted as an
element of differentiation from the competition, an intangible attribute of great value for
the consumer, a solid brand image that turns out to be a very relevant aspect when
making the consumption choice.

4.4 COMMUNICATION

As is well known, the immense communication that is carried out today to publicize and
promote is through social networks. Cruzcampo is a social brand, 'enjoyable' and
without complexes. Humor and wit have always been part of his DNA, since 1904, and
so he tries to transfer it to the networks, which give them the opportunity to talk directly
with consumers. The reality is that it is not a single person who manages social
networks, but a complete team of professionals, who are responsible for transferring
that cheerful, natural and unapologetic personality so characteristic of the brand to the
networks. It is essential to be constantly monitoring the RRSS through listening tools.
In this way, doubts or complaints can be detected and resolved, as well as respond
to mentions of the brand according to a defined action protocol that is adapted based
on reality. Twitter allows you to be more

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conversational and is where the immediacy of the brand is most shown, while
Facebook and Instagram are more focused on communicating brand attributes.
It should be noted that recently Cruzcampo has released an advertisement on
television to promote this product, which has been very successful. In which with the
phrase “Con mucho acento” (With a lot of accent), and with the appearance of a very
famous Spanish singer, Lola Flores, the advertisement has managed to transmit a lot
to those who have seen it, regardless of their origin or standard of living, getting a lot of
talk about this announcement, which has obviously had an impact on a greater spread
of Shadler Cruzcampo.

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5. CONCLUSION

In this paper we wanted to examine a marketing plan related to the product

Shandy Cruzcampo trying to devise, in turn, one or more new types.
Before examining the products, elements such as the history of the
company, its competitors, its mission and vision, the reference market.
Subsequently, the analyses on the primary demand, on the life cycle were built
of the product, on porter's five forces, pest analysis, internal audit,
Cruzcampo's competitive advantage, on brand management and SWOT analysis.
Finally, the product itself, its distribution, the price to be examined.
establish and communicate to consumers.
Apply our knowledge to the aforementioned case study and examine a topic
concerning the product of a large multinational was, as well as useful from the point of
view of
didactic view, also interesting and stimulating.

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