Introduction

We e B i gi g Sexy Social Back.

Social

Digital

Data-Driven

Other Ideas

Conclusion

That calls for a Calrsberg

CBS Global Business Case Competition
Bryan Lum| Jamie Lim| Bryan Yong| Tan Jing Han
 The Two Ways to Grow: Claiming market share, opening up new
revenue streams in a stagnant market

Beer revenues, Carlsberg vs Global Market

(EU billions) 1. Increase global beer consumption
Introduction Not feasible in a sustainable way such that it specifically
50 600
benefits Carlsberg more than any of its competitors.
45
40 500
Social 2. Replace other beers with Carlsberg
35 400 While taste in beer is highly subjective, we go back to the
30 core of beer drinking its social nature. We use this as a key
Digital 25 300 lever in making Carlsberg THE social beer.
20
15 200
Data-Driven 3. Open up new revenue streams
10 100 We diversity into close parallel, open a new revenue stream,
5 improve the on-trade experience, and further align
Other Ideas 0 0 Carlsberg with the digital future
2014 2015 2016 2017
Carlsberg Industry
Conclusion Source: Case documents, Carlsberg annual report 2018
We e b i gi g cia back.
The beer market, including Carlsberg, has
been stagnating. In light of this, there are a
We ride on Carl berg digi al rajec or o deli er that
fe a for ard
extraordinary customer experience, from Carlsberg, to its
on-trade distributors, and finally the consumer

2
 The Big Picture: The future of beer exists in three layers --the social
core, the digital channel, and the data outcome.
How do we reimagine the future of beer?
Data: The ultimate future of technology and
Introduction alcohol.
This is how we use social interactions
and digi al pla form o kno ho
Social drinking what, where, and why. Using Digital: A new medium that defines the new on-trade experience.
ultra-localised specific data to make Pubs are known to be crowded, understaffed, generally difficult to get
strategic decisions, good data ensures a beer when you want it
long-term continuity
Digital
We need a scalable strategy that improves on-
trade experience and feeds Carlsberg utra-
localized data , while introducing a new
Data-Driven revenue stream

Other Ideas Social: At its core, beer is product driven by social experiences. It acts
as a social lubricant in pubs, clubs, sports games, or just having a chill
night at home with friends.
Hours spent on
Conclusion digital social
4.5 But the fundamental nature of the human
platforms
cia e e ie ce ha cha ged. I e
digital than ever.
4.0
We need something that keeps Carlsberg just
as relevant and just as loved in the new social
3.5
landscape, at the same time increasing
15 16 17 18 Carlsberg consumption per social experience

3
 Executive Summary:
Our pathway towards growth in Europe

GOAL KEY QUESTIONS RECOMMENDATION IMPACT

Introduction
Social Incremental revenue of
Transforming the Carlsberg Social:
Social experience through
How to increase online-to-offline mobile
1.2 Bn DKK
consumption of engagement
Digital Carlsberg beer?

Data-Driven Incremental revenue of

Digital Digital:
To achieve 5% Offering an on-trade
Other Ideas revenue growth in ordering platform for a
1.6 Bn DKK
Europe by 2022 seamless consumption
How to find new experience
Conclusion revenue sources?

Total incremental
Data revenue:
Distil insights from macro
How to leverage and micro data sets to fuel
5.2% by
data from digital further growth
strategies?
2022
4
 Social (1/4) Leveraging Smartphones: Carlsberg should leverage
the smartphone to transform the social experience of drinking
Smartphone usage in on-trade environments How smartphones can enhance social interactions

Introduction Key mechanisms that leverage the smartphone

of Europeans (<40 y/o) use
89% smartphones during social gatherings
Social Games that facilitate social interaction and
Source: Bocconi University, Italy increased consumption

Digital
What do they use it for at social gatherings?
1. Games
Data-Driven
Texting other friends
Other Ideas
2. Incentives

Posting to social media

Conclusion
Incentives that encourage group consumption with
Others (news, time, real-world rewards
calendar)

Smartphone usage in social settings is normal for These two mechanisms can help Carlsberg restore social as
Europeans, but are not focused on those who are present the core of the drinking experience
 Social (2/4) Le Ca be g A : Transforming the engagement
between Carlsberg brands and the customer to digital
Le Ca be g M bi e A ica i
1
Geolocation check-in
Allows for users to locate their friends they
Introduction
are drinking with
Yo re calling for a Carl berg a :

Social 75th Earl Street

2
Check-in Drink
Allows users to access promotions, drink
Digital information, and on-trade locations
Welcome Daniel! DRINK
Data-Driven 3
We e g ad Play
Allows users to access games that involve
you called for PLAY the consumption of Carlsberg drinks
Other Ideas
a Carlsberg (elaborated in next slide)

Conclusion 4
WIN
Win
Allows users to redeem rewards and
Le Ca be g! Tokens:
participate in events, lucky draws with tokens

33/60 to group goal

5
Intro screen Main menu Tokens
Virtual currency that allows users to track
their progress towards group/individual-
based rewards
 Social (3/4) Continuous Engagement with Play: Increased group
consumption via social elements of fun, engaging content
E a e f d a c e ba ed cia ac i i ie ( de Pa )

Introduction
A. Friendly competition
Facilitates bar games with friends with (drinking-related forfeits) Be ing on li e por i h/again
Social game ideas, automatic roll functions, friends with real-time information
and score tracking
Eg: Will there be a foul committed in
Digital Eg: King C p, Taboo, Tr h or Dare the next 2 minutes of the game?

Games Sports
Data-Driven

Other Ideas
Provides rewards for submissions of Provides rewards for submissions of
videos with friends that involve videos with friends that involve
Carlsberg brands & suggested food Carlsberg beverages found outside
Conclusion pairings. Rewarded with tokens. of er co n r
Food Travel
Eg: Take a photo of your buddies with Eg: Take a photo of your buddies
Carlsberg beer and the beef burger drinking a Carlsberg brand from
from restaurant X
B. Enjoying with friends country X
(drinking-related submissions)

Digital medium further allows Carlsberg to experiment with activities that best encourage group consumption,
with dynamic content and testing
 Social (4/4) Deployment: Carlsberg should execute the following
implementation steps in key markets of UK and France
De e f Le Ca be g i E e

Introduction Driving initial adoption of the application Implementation focus by country

1 2
Dec i e i age e (L, 10- 15):
Social LET S
Germany -983
CARLSBERG
Best with friends. UK -363
Digital
France -197

Data-Driven Italy -108

Other Ideas Posters at • UK and France are the top 2 markets by volume and are in
Bottlecaps, cans, draught cups
on-trade locations the fastest declining lager markets

Conclusion • Therefore, Carlsberg should address these key markets first

Influencer campaigns in Europe
publicising the app
- Organising influencer meet-ups to
publicise the app and generate
organic content
• Carlsberg should deploy pilot tests in these countries before
scaling up
• KPIs to measure:
• Monthly downloads
• Weekly active users
• Referral rate (from invite-friend feature in-app)
 On-Trade Channels: Success is determined by customer experience,
but that is the exact problem with pubs, bars, and restaurants
1. Understaffed
Manpower is costly. Bars are sometimes a
one-man show.
Introduction The on-trade channel experience is greatly diminished
The customer journey to get beer is long and arduous. Long waits
2. Overcrowded result in badly disrupted games and conversations. Sometimes
The crowd sometimes makes it impossible to
they just leave. Frustrated customers drink less beer.
Social take orders, serve, and clear fast enough

Digital

Data-Driven Imagine a world with no waiting, no queue. Just your beer, whenever you need it.

The Subtle, Scalable, Digital path to an Extraordinary Customer Experience

Other Ideas

Conclusion
TAPMASTER
Powered by

More Talk | More Play | More Beer

 TAPMASTER: The experience enhancer that doubles up as bar
management and data collection

In- ade C e de ake

Introduction The c omer mar phone ac a a aff member -
taking orders, issuing bills, handling payments. Instead
of flagging waitstaff, for beer, customers access the
order interface through scanning a QR code
Social

Digital
Ca be g da a c ec
Order information goes to
Carlsberg for ultra-localized data.
Data-Driven Know which products sell well in
which locations, seasonality, and
TAPMASTER competitor product sales.
Other Ideas Powered by

Conclusion

Bar Management for the Bartender

Orders are automatically registered and bills digitally
issued on the spot. Instead of spending time taking
orders, staff focus on preparing and serving up pints.
Faster service, better experience. Orders are managed
on the smartphone, or the tablet at the counter.

10
 TAPMASTER: Using the Digital channel to enhance customer
experience and manage the bar

Initial Uptake Order Taking Billing

Introduction

In-Trade Customer Uptake: Unlimited Bill Splitting Per Table

Social Powered by
Waterproof sticker at the corner Because everyone makes individual orders on
of each table. As soon as they sit their phones, splitting the bill becomes a breeze
down, they can get a beer
Digital without even talking to anyone
Ma Ba & G ill
Data-Driven Category: Beers and Ciders
SCAN to
-View menu Carlsberg Green Label Pint Add
- Place order
- Pay bill
Sommersby Apple Cider Add
Table
Other Ideas Sommersby Pear Cider Add
37 Kronenbourg 1664 Blanc Add
View Cart & Order Customers can then choose to either pay
Conclusion on the spot by card through the web app
Unique QR code and table right after an order, or pay the bill at the
number listed on sticker The QR code leads to a web
application , where the menu is end of the night by presenting the digital bill
listed through TAPMASTER. to the bartender
Customers add drinks to their cart,
input the table number, and the
order is sent to the bar/kitchen

11
 Stakeholder Map: What each party gives and gets

Introduction

Gives Receives
Social Carlsberg oversees the operation of TAPMASTER, Ultra-local data on who their customers are, what
and all management on the software side they drink, which bars sell which beers the best, and
competitor information
Digital

Data-Driven
Bar Owners
Gives Receives
The bar owner uploads their menu onto TAPMASTER TAPMASTER acts as an additional pair of hands in
Other Ideas and pay a small fee to use the software the bar when manpower is short bar owners could
even save on costs

Conclusion
In-Trade Customers
Gives Receives
The in-trade customer provides their personal details Customers order whenever they want, without
if they opt to pay digitally. They also take on the waiting. The efficiencies created in manpower also
learning curve or ordering digitally means they get the beer faster. Happy
customers drink more beer.

12
 Data-usage: Carlsberg can collect and utilise customer and macro
data to inform its growth decisions to remain competitive
Collect Key Data for Digital Age
Introduction
Individual Data from Social
Social
Demographics:
- Age, gender, geography
Digital
Consumption preferences:
- Frequency, quantity, type of
beverage, location, correlation
Data-Driven
with events eg. Live sports
matches
Other Ideas
Competitive and Macro
Conclusion Data from Digital
Alcohol sales of bar(s):
- Location, time of day, overall
volume, comparison of bars
Alcohol sales by brand:
- Carlsberg brands vs competitors
brands
- Difference in sales within
13 Carlsberg brands
Use Data to Keep Up with Change
Recurring engagement:
- Performing tests with new ways to
engage in the digital medium via
the application
- Understanding how best to use
social element to drive
consumption
Sense and respond:
- Anticipating and responding to
changes in consumption
preferences
- Understanding what factors
influence better sales
- Eg. Identification of a flavour
profile that is trending, acquire or
develop?
Partnerships
- Forming partnerships with other
stakeholders (eg. lifestyle brands)
here Le Carl berg oken can
be used
Value to bar owners
- Providing bar owners with
suggestions to improve alcohol
sales
- Cross learning from other bars
- Overall, improve value proposition
and negotiating power with bar
owners
 Other Ideas: Based on trends, we are confident that Carlsberg
should explore these opportunities for future growth
New Channels & Customers: New Product to Cater to Young: New Off-Trade Offerings:
Workplaces & Coffee Shops Cannabis-Infused Beer Better Beer Experience On-The-Go

Introduction % Workplaces with No. of Coffee Expected Market Size of Cannabis- Off-Trade Beer Sold at Significantly
Happy Hour Drinks Shops in Europe Inf ed Drink in E rope ( Mns) Lower Prices: How to Increase?
+83% +49% +22%
Social

6% 11% 22,565 33,745 539 658 66% 36%

Digital 2013 2018 2013 2018 2018 2022E Off Trade Vol. Off Trade Sales
Source: Glassdoor Source: Allegra World Source: Bloomberg (% of Total) (% of Total)

Data-Driven DraughtMaster Office

Sell kegs of Carlsberg to offices
directly for Happy Hours, creating Cannabis-Infused Beer Off-Trade Draught Taps
Other Ideas a new customer segment Launching a new brand of beer Draught taps to buy a pint directly
DraughtMaster Cafes infused with cannabis to attract a at off-trade channels Similar to
Sell our craft beers to Cafes, new group of young beer drinkers fresh coffee in convenience stores
Conclusion offering new experiences to Café-
Go-ers, building a new channel

1. DraughtMaster affords us a sustainable
competitive advantage as Cafes and
Workplaces consume less beer, need to
keep the beer fresh
2. Go-To-Market through independent
cafes and start-ups in Europe, starting
14 with co-working spaces such as WeWork
1. Strong network of small bars provides
a strong customer network, allowing us
to pilot products and generate hype
2. Go-To-Market by acquiring upcoming
brands in the Cannabis-Infused beer
space and piloting product in smaller
bars in deregulated countries
1. DraughtMaster and POS systems make
the purchase journey more convenient,
better drinking experience for customers
2. Go-To-Market by piloting in
Convenience Stores before expanding
to other off-trade channels. Price should
be slightly higher than bottled beer
 Risk, Mitigation, and Implementation We recommend this
implementation schedule for a smooth execution

Strategy Risk Type Description of Risk Mitigation Tactics Urgency

All Regulatory risk Customers and bar owners give up Before furthering on the digital front, High
Introduction data. Especially customers, who will ensure proper cybersecurity measures
give up their order information and
personal information (facebook).
Social
Digital Uptake Steep learning curve for bar owners Enable direct uploading with Medium
to upload menus and sync POS with barcodes on the products. Possible
Digital TAPMASTER. training sessions for the bar owners
can aid uptake

Data-Driven

2019 2020F 2021F

Other Ideas

Social Develop interfaces Onboarding Operational

Conclusion
Digital Develop pdt augmentations and software Expand to Open source API

Build
Cyber Security ramp up Begin data aggregation
Memphis hub

15
 We will be able to reach a 5.2% cumulative revenue growth from
Europe, without counting further upside potential
Our two strategies will drive a 3y While costing a an incremental More upside potential can be reaped
cumulative 2.97Bn DKK in revenues investments of approximately 9% from the use of data

Introduction
3Y Revenue Forecast Incremental CAPEX
2,500 300
Margin improvement
Social from better bargaining power
250
2,000 1 with on-trade establishments
922
Digital 200
1,500 175

150
277 Revenue improvement
Data-Driven 1,000
995 from better competitive
100 2
312 positioning through data
500
Other Ideas 103 452 50 103

0 192
2018 2019E 2020E 2021E -
Conclusion Total Social Digital Revenue improvement
Cumulative
Growth 0.8% 2.1% 5.2% from greater information from
Digital Social
3 market

Sai i g he digi a age, e e b i gi g cia back di eg hf Ca be g

16