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SWOT Analysis of Fosters Group Strategy in Greece

Paper Type: Free Essay Subject: Marketing
Wordcount: 1863 words Published: 16th Jan 2018

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Fosters Group is focusing on better strategy to acquire profit in the liquor industry after being saturated in the domestic market. In this assignment I mentioned all the main factors of Foster’s for entering in new market. I have selected the Greece market for the assignment . Greece is a big alcohol market; Foster’s planned to export ‘Penfold’s Bin 407’ wine to Greece. This assignment covers all the internal and external analysis done with the help of PESTLE analysis etc. Another tool is SWOT analysis which covers Foster’s company’s information about the strength, weakness, opportunities, threats. The another main part of this assignment is marketing strategies which have all the information how Foster’s product exported to Greece and which strategies implemented and how consumer behaved in that particular market .Swot analysis was conducted to check the assumption and forecasting sales to be made once the product is launched in the Greece.



Foster’s Group is a top multi-beverage company which delivers a selection of beer, wine, spirit, cider and non-alcohol beverages. Penfold’s is famous brands for dry red table wine of Foster’s Group’s. The product which selected for exporting to Europe is one of the Bin range- Bin407. The Penfold’s Bin-407 Cabernet Sauvignon is a multi-district mixture mostly from the south east to South Australia- specially, the Limestone Coast (including Connemara and Robe) and Bordertown.

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With a portfolio of over 100 brands, operations on five continents and a history stretching back 160 years, we’ve built something unique at Foster’s. We are a global premium branded drinks company, delivering beer, wine, spirits and ciders to millions of consumers every day. From Penfolds to Beringer, Foster’s Lager to Victoria Bitter, we produce the labels that consumers have learnt to trust since the 1840s. Our winemakers and brewers are today developing the innovative new products that will tap consumer trends in the years ahead. Headquartered in Melbourne, Australia, and listed on the Australian Securities Exchange, Foster’s employs over 6,000 people and our products are sold in more than 155 countries worldwide.

The market which has been selected is Greece and aiming all the wine drinkers especially people whose age are above 25. The reason behind choosing wine for exporting to Greece which is known as the market of alcohol is very large and as there is no age limit of drinking, wine can be very handy product for export. Greece is one of the world’s great tourist destinations. Greece is frequently welcoming arround 12.5 million visitors a year. Total wine consumption in Greece is14,919 million litres. Consumers are quite open-minded about innovation and new products and this is providing costant growth for New World Wine. (group, 2010)



Brand name is the main strength of Foster’s. Every alcohol consumer in whole world knows what Foster’s is, in other word Foster’s is internationally very well-known brand and Penfold’s is one of the famous brand of Foster’s in the market.

Foster’s has huge range of product such as beer, wine, spirits, cider, pre-mixed product and non alcoholic, with its differentiates group of interested Foster’s tend to spread its awareness and now have acquired 30 different trademarks under its name.

Foster’s is the one of the largest companies which delivers its products and services to more than 150 countries. Exporting to so many countries is hard task but having an operative distribution channels gives strength.

As exporting to more than 150 countries Foster’s has retained strong turnover in current years with high market shares in comparison to its rivals. Growing at this rate, Foster’s will soon acquire no. 1 position in alcohol industry.

One of the key strengths of the Foster’s is its differentiated price range. Having almost at all prices Foster’s have targeted all segments of the market from medium class to premium class, anyone and everyone can enjoy Foster’s product. (synodinou, 2003)

Political issues are strongly affected marketing decisions.These include environment ‘consists of laws, government agencies and pressure groups that influence and limit various organisations and individuals in given society (Kotler, et al, 2001:138). political environment are enjoyed at very early stage and its growing economy has enhanced business assurance over the last decade, leading to significant overseas investment.(refers to APPENDIX)

The economic environment contains elements that affect consumer purchasing power and spending patterns’ (Kotler, et al, 2001:132). Current income, Consumption, Savings and Credit are buying strength of a human. GDP of Greece is €117 billion or €11.700 per occupant, which is ex.treme below average to European nations which in turns gives devolpment level weak. Economically, National level as well as on an individual level,they have a limited(weak)IST. Greece has entered the European Monetary Union (EMU) since January 2001, the actual flow of the common currency before one year, and this in turn affect profit by probably exchange rate, this indicate economical issues which diversify its exchange rate which are control its import and export activities (synodinou, 2003).


The major weakness for foster’s is that they have not lime lighted their other product as beer. Even today mostly everyone knows foster’s name because of its very famous beer. Other product like wine, spirit is not encouraged well.

The wine club and services of Foster’s were not recently performed well, this cause negative impact on the profitability of its wine business.

Foster’s have very good name in the world but it still lack to get a position amongst international competitors as they mainly focused on brand building and marketing in latest years, Foster’s lack brand names amongst its competitors such as E&J Gallo’s eponymous Californian wines.

Foster’s serve more than 150 countries but study shows that they have not determined on a particular market in recent year to export premium wines. (synodinou, 2003)


By evaluating the pestle framework (refer to appendix) of Foster the following opportunities were evaluated which are described as follows, refer to appendix:

Although Foster’s have certain weakness but they have lot prospects to cover all these weakness. As alcohol and food goes accurate on all the occasions. They can serve peanuts, nut etc. with the beer and make the combination to get bigger market share, so entering in food industry is main opportunity for Foster

The wine intake in Greece is increasing in preceding years. Per capita feeding is 26 litres with 86% of the Greek people drinking wine 3.2 times per week. The character shows a big prospect to export the wine to Greece.

Once the export of Penfold’s is on youth stage the other opportunity for Foster’s is to start shipping its other goods to Greece. This helps in increasing the gross revenue ratio and will capture the maximum market.

Another opportunity for fosters is to create an awareness in health issues as research shows that red wine is good for health for ex.- improve coughs, low blood pressure etc, as making this an opportunity Foster’s can promote their wine in Greece as Greeks are very health conscious.

Greece is small wine producer. The local production is limited and the production cost is high, so Foster’s can look for better exportation in Greece. Greek consumers take interest in imported wines.

If the production goes higher then the whole setup will be developed in Greece and wine will be sold straight through Foster’s retail where as 81% of wine imported into Greece is through wholesalers.

Foster’s Penfold’s is good quality cabernet sauvignon wine where as it can be positioned between low prince and high quality.

Penfold’s can come in the range of middle price ranges products where anyone and everyone can buy the product. Wines are very economical in Greece. (R&Brown, 2005)


By doing a competitive analysis of Foster with its competitors the following threat were evaluated:,

Domaine Skouras, Emery S.A, Protopapas Winery, Minos cretan wines S.A, Santo greek wines.

High rate of local rivals is the main threat of Foster’s in Greece, fortunately the current production of wines in Greece is dropped but other players trying to make a position in the alcohol industry.

Economy of the Greece is another main factor and the exchange rates which varies with the international act which straight affect the financial outcomes.

In Greece, the entrance of new exporters can be a threat. As other companies from various countries can research on the market and can export products to Greece, a well-planned business strategy and plan can be very effective to overcome these threats. (Group, 2007)


After all the analysis and the research it can be concluded that there are number of different area findings regarding fosters group to enter Greece market. The report is about macro environment factors of Greece. It also included the background of the Greece market. The report discusses the wine industry their major competitors and company analysis. Tools like SWOT analysis details the summary of Fosters strength weakness and analysis. This tool also helps in defining the advantages and disadvantages in entering the new market the new market. The major another part of the report is marketing strategies which cover all the information of the market selected and how fosters are going to enter into the market. In the last part of the forecasting and the profitability with the backup plan and how Fosters is going to monitor all this action plan. Hence it can be concluded that if fosters export Penfold’s wine to Greece it will do extremely good and will increase the goodwill of Foster’s in Greece.


Anon., n.d. Drinking in greece. [Online] Available at: http://www.greeklandscapes.com/travel/food_drinking.html.

Fletcher, 2007. GMD euromonitor international.

Group, f., 2007. global market information data base euromonitor.

group, F., 2010. [Online] Available at: www.foster’sgroup.com/about/overview.aspx.

Ian Johnston, 2006. Relocating to greece. [Online] Available at: http://uk.businessesforsale.com/uk/relocating-to-greece.aspx.

NARAYNAN, R.K., 2005. www.justgreece.org. greece travel guide.

R&Brown, 2005. GMD euromonitor international.

Resnick, E., 2008. wine brand. palgrave macmillan.

synodinou, D., 2003. Ag exporter.


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