Marketing Mix of Foster’s and 4Ps (Updated 2023)

The Marketing mix of Foster’s analyses the 4Ps of Foster’s, which includes the Product, Price, Place, and Promotion of Foster’s. Foster’s Lager is an international brand of Australian origin. It is associated with the beverage industry and deals in the distribution of Australian lagers. Foster’s Lager is owned by its parent company, SABMiller, and was introduced to the consumer market in 1889. Their annual global sale is nearly 500 megalitres, and they are ranked second in the United Kingdom. Foster’s Lager faces competition from brands like

• Budweiser
• Carlsberg
• Kingfisher Premium

About Foster’s

• Type: Beer brand
• Industry: Brewing
• Founded: 1888
• Founders: William and Ralph Foster
• Headquarters: Melbourne, Australia
• Area served: Worldwide
• Current CEO: Roland Fletcher
• Number of employees: 5,000
• Major products: Foster’s Lager, Foster’s Premium Ale, Foster’s Radler

Foster’s Product Strategy

Fosters is a premium beverage brand that produces pale Lager. It has a refreshing taste, with 4% and 5% alcohol content in Europe and the other countries, respectively. Its smooth and excellent taste has made it a desired product in the consumer market. Its main product is the more significant, but it is also available in several variants that are as follows-

• Foster’s Twist was launched as a refreshing alternative with a hint of citrus. It was later withdrawn from the consumer market
• Foster’s Super Chilled- It is available easily in bars and pubs and is served at a chilled temperature
• Foster’s in the year 2008 was introduced as a scuba with a widget. It was available in cans and is currently available in the United Kingdom only
• Foster’s Keg is available in the United Kingdom for private parties
• Foster’s Gold has a 4.5% alcohol percentage and is sold only in Bottles

The product mix of Foster’s in 2023 is as follows(Source)

1. Foster’s Lager: This is the brand’s flagship product and is a pale lager known for its crisp and refreshing taste. Foster’s Lager is available in various sizes, including cans and bottles.
2. Foster’s Premium Ale: Besides their Lager, Foster’s offers a premium ale variant. This beer is often characterized by a more prosperous and maltier flavor than the regular Lager.
3. Foster’s Radler: Radler is a beer mixed with fruit juice or soda, creating a lighter and fruitier beer experience. Foster’s Radler variants may include citrus flavors like lemon or lime.
4. Foster’s Gold: This variation of Foster’s Lager is sometimes marketed as a slightly higher-end or premium version with a different flavor profile or packaging.

Foster’s Place Strategy

Foster’s Lager is a world-renowned brand that Heineken International markets in Europe and SABMiller Group in other parts of the world. It is the largest beer brand globally, with worldwide consumption. Its products are available in nearly one hundred and fifty countries. Fosters Lager has twenty manufacturing plants situated in nine countries around the world. It has a vast network of distribution channels for its products.

The company has engaged a top company to provide logistic services as it will ensure the timely delivery of products to various outlets. It has a standardized infrastructure and an advanced transport system to handle the brewing, warehousing, bottling, and recycling processes. Foster’s Lager supports Foster’s group in providing global services. One can easily find a can or bottle of Foster’s Lager and its variants in hotels, restaurants, pubs, supermarkets, liquor stores, and bottle shops.

Foster’s, being a beer brand, implements a place strategy focused on distribution and availability to ensure its products reach consumers effectively:

1. Global Distribution Network: Foster’s leverages a vast global distribution network, partnering with distributors, wholesalers, and retailers in multiple countries to make its beer products widely available to consumers.
2. On-Premises Presence: The brand strategically places its products in bars, restaurants, and pubs, ensuring that Foster’s beer is accessible to consumers seeking a drink while dining out or socializing.
3. Off-Premises Retail: Foster’s products are prominently featured in retail locations, including liquor stores, supermarkets, and convenience stores. This placement strategy ensures consumers can easily purchase Foster’s beer at home.
4. Strategic Alliances: The brand may form strategic alliances with beverage distributors and retail chains to enhance its presence and visibility in key markets, optimizing its reach to a diverse customer base.
5. E-commerce Integration: Recognizing the importance of e-commerce, Foster’s may also sell its products through online platforms and partnerships with delivery services, allowing consumers to order beer for home delivery, further expanding its reach and convenience.

Foster’s Pricing Strategy

Foster’s mission is to maintain its position as a top-notch brand by strengthening its product quality. It has adopted a mid-level pricing policy for its premium product to become a highly successful brand. It does not want to lose its customers because of prices and hence has decided to maintain reasonable prices so that it seems affordable and price-friendly to its customers.

Fosters faces stiff competition from its rival companies. As it wants to penetrate further mar, kets have adopted a competitive and penetration policy to further its cause. This will help in creating new customers and in maintaining previous ones. The mantra of this premium brand is that the greater the sales, the greater the revenues.

Here’s an analysis of Foster’s price strategy:

1. Competitive Pricing: Foster’s adopts a competitive pricing strategy by setting its beer prices in line with or slightly below the prices of similar mainstream lager brands. This approach positions Foster’s as an affordable option for consumers in the beer market, making it an attractive choice for budget-conscious buyers.
2. Price Tiering: Foster’s may offer different pricing tiers within its product range. While the core Foster’s Lager is positioned as a budget-friendly option, the brand may introduce premium or specialty variants at higher prices to cater to consumers seeking a different taste experience or willing to pay more for perceived quality.
3. Promotions and Discounts: Foster’s often runs promotional campaigns and discounts in collaboration with retailers and bars. These promotions can include limited-time offers, multipack discounts, and seasonal promotions to stimulate sales and attract new customers.
4. Dynamic Pricing: In some markets, Foster’s may employ active pricing strategies, adjusting prices based on demand, seasonality, and regional preferences. This flexibility allows them to maximize revenue while remaining competitive.
5. Value Proposition: Foster’s price strategy aligns with its broader value proposition. The brand positions itself as a beer that offers good value for the money, emphasizing quality and refreshment at an accessible price point.

Foster’s Promotion Strategy

Foster believes in advertising wholeheartedly and has adopted policies to market its products globally. It has the ken help of print media and has launched several billboard advertisements to attract customers. Foster’s has also found commercials on television with catchy taglines. The company has roped in several celebrities to help advertise its products. Barry Humphries, a comedian, promoted FosteLagerager in the United Kingdom through his character Barry McKenzie in Private Eye. It uses slogans like Australian for Beer and The Amber Nectar.

Foster’s believes in advertising through sports and events. It had a sponsorship deal from 1986 to 1989 with Norwich City F. C., a football club. The brand regularly sponsored F-1 events between 1986 and 2006 as it became the title sponsor for the Australian GP, San Marino GP, and British GP. It also has a sponsorship deal with ASP World Tour and A 1 Team Australia.

Foster’s employs a promotion strategy focused on:

1. Brand Engagement: Foster’s engages consumers through humorous and memorable advertising campaigns highlighting its “Australian for Beer” slogan, creating a distinct brand identity.
2. Sponsorship and Events: The brand sponsors various sports and cultural events, leveraging partnerships to increase visibility and connect with its target audience.
3. Digital and Social Media: Foster utilizes digital marketing and social media platforms to engage with consumers, share content, and run interactive campaigns, keeping the brand relevant and engaging in the digital space.

Some Recent Video ads and Print ads of Foster’s are:

https://www.ispot.tv/ad/7VzW/fosters-beer-fosters-six-pack

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