Murphy’s Brewery Company Ireland

Individual Assignment for Marketing Strategy

Submitted by:

Rahul Pasumarthy

Student ID: 998636962

MBA Class of 2011

 Rotman School of Management 2
Marketing Strategy

Murphy Brewery, Ireland:

Target Market:

Market for Murphy Brewery Ireland can be segmented into:

The Classic Pubber – this represents the segment of the market that consumes beer in the pubs. This

groups has a variable mix of consumers demographically – from the young and the regular pub

clients in the Americas and Ireland to the aging European population. This is a market is tough to

capture as they have been traditionally brand-loyal. However, this is an important segment for

Murphy’s Brewery not only because they influence the other markets but also because they are

sensitive to quality.

The Home Drinker – This is a growing market both due to a number of reasons: growing restrictions

on drunk-driving and increased trend to in-house consumption. The house parties and the aging

population preferring to drink in the comfort of their homes also add to this category. The choice of

this segment is influenced strongly by the trend of the earlier segment as well as the availability of

quality take-home options.

The health-conscious consumer – The growing trend towards a healthy lifestyle as well as the

increasing health issues of the ageing population give rise to this lesser tapped consumer segment.

Covering large groups from the sophisticated urbane youngsters to the ageing population in UK and

continental Europe, this segment currently succumbs to substitutes or is dejected due o the

unavailability of options. These can be spread in both the pub drinker or take-home market

categories.

Product Strategy:

Muphy’s product portfolio has three major’s brands:

Murphy’s Irish Stout (MIS) – most famous brand; though its success has been limited by the high

competition it faces from Guinness especially in the Classic Pubber’s category, the new packaging

Student ID: 998636962

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Marketing Strategy

innovations like the draught-flow can and the draft flow bottle have helped improve the take-home

business.

Murphy’s Irish Amber (MIA) – a traditional Irish ale, this was launched in 1995 and marketed in

Germany and France. Not available in Ireland. MIA has been a bigger success than expected in many

markets.

Buckler – the low-alcohol low calorie beer; this product has been held with a very low marketing

profile in the company. Currently sells only in the take-home market

Product Strategy & Value Proposition:

The value proposition for the different customer segments from the three products of Murphy

Brewery can be summarised as below

Classic Pubber Home Drinker

Healthy consumer

MIS Authentically Irish Stout Quality with convenience

Innovative packaging
options ensuring quality
Alternate option to lager Alternate option to lager
MIA
and Stout; and Stout;

Buckler A healthy and low-alcoholic A healthy option and low-

alternative for pubbing.
alcoholic alternative in
Both on the tap and house parties and for home
consumption

QUALITY

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Marketing Strategy

Rather than competing with aggressive advertising campaigns for visibility, the most important thing

that Murphy’s should focus on is the product quality. This can help them capture the market

segment of the classic pubber and well as re-establish their value proposition from the innovative

packaging. Their current product line is a formidable mix; hence rather than diversifying into new

product lines and building their brands, Murphy’s brewery need to focus on establishing themselves

as a quality brand.

Its current positioning as a traditional and authentic Irish brand helps capitalize on the growing trend

of the Irish pubs, Murphy’s should drive both the messages in their communications - quality as well

as convenience. Murphy’s should establish themselves as a brand offering choices to its consumer

‘best beer for all reasons– for parties, at home or in a pub’ or ‘Beer for all - for those who like to be

skinny or if you like stout’ . While strengthening its position in the pubs by supporting the Irish pub

culture, Murphy’s should also establish its offerings in the ale and the ‘drink light’ segments.

Capturing Markets:

The strategy for market development in the three big markets for Murphy’s brewery is

Ireland

Traditionally a strong presence in the Irish market has been equated to a general acceptance of the

authenticity of the Irishness of the beer. However, with a population of less than 4 million people, it

is a small and mature market. Hence fight with excessive investments in this market is not the most

productive strategy for Murphy’s. Establishing itself in this market is important but Murphy’s should

not excessively emphasise on this market at the cost of others. While continuing its premium image

in the stout market, Murphy’s should introduce MIA as well as promote Buckler in both Pubs as well

as take-home market segments. Buckler would help appeal to the young and calorie-conscious

population; establishing the Strong brand identity of Murphy’s throughout their campaigns will help

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Marketing Strategy

customers identify with the umbrella brand, whichever product they consume. This would help

leveraging on the brand-loyal customer trends.

UK & Continental Europe:

Given the largest stout consumers in this market, Muphy’s should focus on establishing Murphy’s,

the umbrella brand in this market rather than any one product. They should also focus on selling the

value-proposition of Quality to their customer here and play their brand as an ‘Irish Beer’ than

focussing on one product in their communications. While maintaining their image as a premium

image as ‘authentic Irish beer’ and not lowering their retail price (to avoid getting into price wars)

Murphy’s could continue its current strategy of incentivising the pub owners by increased margins to

push their products. Murphy’s should also leverage the strong network of Heineken in continental

Europe and capture more markets here through a strong brand building campaign – for the umbrella

brand ‘Murphy’s’ rather than any one product. They should also promote heavily promote ‘Buckler’

for the ‘fashionable’ beer fans.

The American Market:

The American market definitely presents the most lucrative and growing opportunity for all beer

manufacturers. Given the gradual brand building nature of the American market, Murphy’s should

continue promoting the Irish pub culture in American markets. They should increase their market

penetration from the east coast, deeper into American markets. The ‘Diet Coke’ addicted American

youth will buy into the value proposition of ‘Buckler’- hence promoting this product on par with the

the MIS is would help Murphy’s penetrate wider into the market segments.

Pricing and Distribution:

Murphy’s should continue with their current pricing strategy in all markets. Rather than entering

into a price war with the established players, Murphy’s should enter these markets with a clear
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Marketing Strategy

value proposition of a high quality product with options – both for convenience as well as choice.

Their current distribution partnership with Heineken already gives them access to penetrate large

number of markets. Continuing supporting the Irish pub culture by Branding pubs with Murphy’s,

they should ensure that all three product variants are available through any distribution channel that

they use. This will help establish the unified brand better. To capture the growing take-home

market, Murphy’s should improve their footprint through more partnerships with off licence stores

and supermarkets.

Communications Strategy

The two important mandates for all the communications of Murphy’s must be first, establishing

‘Quality’ and second ‘convenience and options’. In all the brand communications that Murphy’s uses

there should be an underlying unified message of Murphy’s as equivalent to ‘Quality Irish’ beer.

Even while promoting any individual brand, the campaigns should focus on underlying brand of

‘Murphy’s’. New campaigns, targeted at the home drinker segment and the health-conscious

consumer must use media and new social media channels while for the Pubber, their current

campaigns, pub branding and their current support to the golf-tournaments would help appeal to

them.

Student ID: 998636962