Chapter 1 Introduction

1.1 Research Background and objective

Tanzania Breweries Limited (TBL) was founded in 1933 as Tanganyika Breweries and later
merged with Kenya Breweries Limited in 1936 to form the East African Breweries Limited. The
company underwent several changes, including nationalization by the Tanzanian government in
1967 and a joint venture with South African Breweries International (SABMiller) in 1993, which
turned the company around. TBL was listed on the Dar es Salaam Stock Exchange in 1998, and
through various partnerships and acquisitions, including a stake in Serengeti Breweries and the
acquisition of Darbrew Limited, TBL achieved a 74% market share of alcoholic beverages in
Tanzania by March 31, 2013, while also becoming a major exporter of beer to other African
countries. The company operates breweries in Dar es Salaam, Arusha, Mwanza, and Mbeya, as
well as a malting plant in Moshi. TBL's portfolio includes popular clear beer brands such as
Safari Lager, Kilimanjaro Premium Lager, Eagle Lager, Eagle Dark, Grand Malt, and Ndovu, as
well as Castle Lite, Castle Lager, and Castle Milk Stout, which are produced and distributed
under license from SABMiller International BV.

The Tanzanian beer industry has experienced consistent growth over the past two decades.
In 2020, despite the challenges posed by the COVID-19 pandemic, the country produced 386
million liters of beer. The beer market in Tanzania is expected to reach 1.41 billion USD by
2025, with a projected compound annual growth rate (CAGR) of 8.03% between 2020 and 2025.
This growth can be attributed to factors such as increasing urbanization, improving financial
conditions, and evolving consumer preferences, particularly among young and aspirational beer
drinkers. TBL has played a significant role in shaping the Tanzanian beer market. The company
has a strong brand equity and has achieved impressive revenue growth over the years. TBL's
success can be attributed to its wide distribution network, economies of scale, and its association
with AB InBev, which provides access to global expertise, innovations, and best practices.
However, the company also faces challenges such as geographical concentration, which limits its
ability to expand into new markets, and exposure to currency fluctuations, which can impact its
profitability. Additionally, TBL faces the threat of increased competition from its main rival,
Serengeti Breweries Limited (SBL).

The primary objective of this research is to gain a comprehensive understanding of TBL

Company's beer products, target market, and current market trends and competition. By
gathering customer feedback and analyzing the company's digital presence, the research aims to
identify TBL's strengths, weaknesses, opportunities, and threats through a SWOT analysis based
on the collected data. Additionally, the study will examine TBL's existing marketing strategies
and recommend adjustments and innovations to guide the company towards more effective and
appropriate marketing approaches.
 To achieve these objectives, the research will employ a mixed-methods approach,
combining both qualitative and quantitative data collection and analysis techniques. This
approach is suitable for gaining a holistic understanding of the research problem, as it allows for
the triangulation of data from various sources and provides both depth and breadth in the
findings. The research will involve conducting questionnaire surveys with TBL's customers,
distributors, and employees to gather insights into consumer preferences, brand perceptions, and
market dynamics. The study will also analyze secondary data sources, such as industry reports,
market research studies, and TBL's financial statements, to gain a broader understanding of the
competitive landscape and market trends. The findings of this research will provide valuable
insights and recommendations for TBL to enhance its market position, improve its marketing
strategies, and capitalize on growth opportunities in the Tanzanian beer market. By identifying
areas for improvement and proposing innovative solutions, the study aims to help TBL maintain
its competitive edge and adapt to the evolving market conditions.

1.2 Research Significance

(1) Theoretical significance

Analyzing Tanzania Breweries Limited's (TBL) marketing strategies in the context of a

lifting Tanzanian beer market. While TBL currently employs value pricing and extensive
advertising, research suggests that evolving consumer preferences towards premium, craft, and
healthier options necessitate strategic adaptations. De Pascale et al. (2023) emphasize the
importance of strong distribution networks for craft beer consumption, highlighting an area
where TBL can leverage its existing infrastructure. Skoglund & Sjölander-Lindqvist (2019) and
Lafontaine et al. (2020) point to the increasing demand for premium and healthier beverage
options, suggesting TBL should focus on product innovation and premiumization strategies. The
study recommends TBL adopt targeted marketing and sustainability initiatives to maintain
competitiveness. This analysis bridges marketing theory and practical application, offering
valuable insights for TBL and other beverage companies navigating dynamic market landscapes.

(1) Practical Significance

TBL adopts a customer-centric approach to effectively market beer in rural areas. The
company conducts market research and segmentation to understand target audience preferences,
enabling it to tailor product offerings, pricing, distribution, and promotion strategies. TBL builds
a strong brand identity that resonates with rural consumers by emphasizing unique elements,
consistent messaging, and clear value propositions. The company promotes responsible drinking
by highlighting moderation and risks while balancing push and pull strategies using tools like
social media and product displays. TBL's distribution and pricing strategies consider rural market
characteristics, including appropriate channels, smaller pack sizes, and sensitivity to social and
cultural contexts. These actions help TBL establish a strong and sustainable rural market
presence.
 1.3 Research Content and research methodology.

1.3.1 Research Content

The research paper is divided into six chapters. Chapter 1 introduces the research
background, objectives, significance, content, methodology technology roadmap. Chapter 2
reviews relevant literature on marketing strategies and theories, as well as studies related to the
marketing of beverages and alcoholic products. Chapter 3 analyzes TBL's current market state,
beer product overview, existing marketing strategies, and includes a market demand survey and
an analysis of problems in TBL's market strategy. Chapter 4 examines the marketing
environment for TBL's beer products through macro-environment, industry environment, and
SWOT analyses. Chapter 5 provides suggestions for optimizing TBL's marketing strategy,
including product, pricing, distribution, and promotion strategies, as well as implementation
plans involving organizational structure, resource allocation, and performance evaluation.
Chapter 6 concludes the research, summarizing the findings, discussing research limitations, and
providing recommendations for future research.

1.3.2 Research Methodology and Technology Roadmap

(1) Documentary Method

The documentary research method involves collecting and analyzing relevant information
from various sources such as academic databases, official websites, and public information from
administrative departments. In this study, I gathered a substantial amount of information related
to TBL's market strategy, market demand, and development. The collected data was then
analyzed, categorized, and compared to conduct the research effectively.

(2) Case Study Method

The case study method is employed by focusing on TBL as the primary research object. By
conducting an in-depth analysis of TBL's specific case, I aim to gain targeted insights and
propose optimization suggestions for the company's development and marketing strategies. This
method allows for a comprehensive understanding of TBL's unique challenges and opportunities
within the Tanzanian beer market.

(3) Questionnaire Method

To gather valuable insights into market demand for TBL's beer products, I designed and
conducted a questionnaire survey. The questionnaire collected information on consumers'
opinions, preferences, experiences, buying behaviors, product brand royalty, and unmet needs in
the market. By analyzing the responses, I can gain a deeper understanding of the target audience
and identify areas where TBL can improve its marketing strategies and product offerings to
better meet consumer expectations and drive growth in the competitive beer industry.
 (4) Research roadmap
Introduction
Research Status at
Home and Abroad
Analysis of Current marketing
strategies & Marketing
Demands of TBL’s beer
Product.
Analysis of Marketing Environment
of TBL’s beer Product
Suggestions for optimizing the market strategy in
TBL Company
Research Conclusion and Shortcomings
Research Background
Research Significance Technology Roadmap
Research Content and
Methodology
Marketing Strategy and Basic Theory
Studies Related to Marketing Strategies for beverages and
alcohol products.
Review of the Literature
Introduction of TBL and the current Market state of
TBL’s beer Product
Analysis of the Market Strategies Operations of
TBL’s beer products
Market Demand Survey of TBL’s beer Product
Analysis of Problems in TBL’s Market Strategy
Macro Environment Analysis
Industry Environment Analysis
SWOT Analysis
Optimizing The Strategy
Plan
Implementation Strategy
 Chapter 2 Research Status at Home and Abroad

2.1 Marketing Strategies and Basic Theories

Marketing strategy is a comprehensive plan formulated by an organization to achieve its

marketing objectives in target markets. It involves analyzing market opportunities, selecting
target markets, developing marketing mixes, and managing marketing efforts effectively (Cheng
& Xu, 2024). The fundamental theory behind marketing strategy is based on the concept of
creating customer value and building profitable customer relationships. This theory emphasizes
the importance of understanding customer needs, delivering superior value, and fostering long-
term relationships with customers to ensure sustainable business growth (Kotler & Keller, 2021)
(Ugboya & Odiamenhi (2019)).
Key elements of marketing strategy theory include market segmentation, target marketing,
positioning, the marketing mix, and digital marketing (Richter & Scherter (2016). Market
segmentation involves dividing a market into distinct groups with similar needs or
characteristics, allowing companies to tailor their offerings and communication to specific
segments (Zhou & Feng, 2021). Target marketing evaluates these segments and selects the most
profitable ones to serve, ensuring that resources are allocated efficiently (Chen & Liu, 2023).
Positioning aims to create a unique and valuable position for the offering in the minds of target
customers, differentiating it from competitors and establishing a clear brand identity (Li &
Zhang, 2022). The marketing mix refers to the set of controllable variables (product, price, place,
promotion) that a company utilizes to create value for its target customers and achieve its
marketing objectives (Kotler & Keller, 2021). Digital marketing involves leveraging digital
channels and technologies, such as social media, mobile applications, and data analytics, to
engage customers, deliver personalized experiences, and create value in the digital age (Cheng &
Xu, 2024).

In the context of TBL's beer products, the research analyzes the market demand and develop
a comprehensive marketing strategy that addresses evolving consumer preferences and is
adaptable to changing market conditions. The strategy should be customer-centric, aligning with
the organization's overall business strategy and focusing on creating unique value propositions
for target segments (Liu & Gao, 2020). As emphasized in "Blue Ocean Shift" by W. Chan Kim
and Renée Mauborgne (2017), a successful strategy should aim to create uncontested market
space and make competition irrelevant by offering innovative solutions that meet untapped
customer needs. By applying the principles of marketing strategy theory and leveraging insights
from market research, TBL can develop a robust and effective marketing strategy that drives
growth, enhances customer loyalty, and strengthens its competitive position in the Tanzanian
beer market.

2.2 Studies related to Marketing Strategies for Beverages and Alcoholic Products
 Understanding market demand and employing effective marketing strategies is the key for
Tanzania Breweries Limited to succeed in the competitive Tanzanian beer market. Existing
research on marketing strategies for beverages and alcoholic products provides valuable insights
into the tactics employed within this industry. The traditional marketing mix, known as the 4Ps
(Product, Price, Place, and Promotion), plays a fundamental role in the beverage sector. Datta
(2017) emphasizes the importance of strategic price positioning within various price-quality
segments of the U.S. beer market, suggesting that TBL must carefully consider how its pricing
aligns with product quality and target audience.
Branding and positioning are also essential, as beverage companies heavily rely on strong
brand identities to differentiate themselves. Talley (2017) notes that distinct strategic groups,
such as market leaders and craft brewers, emerge within the beer market, each with a tailored
brand position. Consumer behavior and segmentation are equally important, as understanding the
preferences and demographics of beverage consumers is crucial for effective marketing
strategies. Lafontaine et al. (2020) explore eco-innovation in the food industry, focusing on
alcoholic beverages as a case study. They emphasize the importance of sustainable practices and
green marketing strategies to appeal to environmentally conscious consumers. This suggests that
TBL should consider incorporating eco-friendly initiatives into their marketing mix to align with
the growing demand for sustainable products. Mziba and Tlapana (2020) study the marketing
strategies employed by a selected brewing house in the Greater Buffalo City Metropole. They
highlight the significance of responsible and transparent advertising practices to mitigate
potential negative social consequences associated with alcoholic beverage marketing. TBL
should adopt a socially responsible approach to marketing, ensuring that their campaigns
promote moderate consumption and do not target vulnerable populations.
Chen and Luo (2019) investigate the impact of executive marketing background,
corporate trademark, and brand management on company performance. Their findings suggest
that TBL should invest in building a strong brand identity and hiring executives with marketing
expertise to drive success in the competitive Tanzanian beer market. Liu and Gao (2020) provide
insights into strategic marketing management in their book. They emphasize the importance of
market segmentation, targeting, and positioning in the beverage industry. TBL should conduct
thorough market research to identify distinct consumer segments and develop targeted marketing
strategies that resonate with each group's preferences and values. Li and Wang (2021) study
market demand analysis and marketing strategy optimization for tech companies in the digital
age. Although their research focuses on a different industry, their findings on the importance of
data-driven decision-making and adapting to changing consumer needs are relevant to TBL. The
company should leverage data analytics to gain insights into consumer behavior and preferences,
enabling them to refine their marketing strategies accordingly.

Chen and Liu (2023) investigate the segmentation of the premium beer market in China.
Their research highlights the growing demand for craft and premium beers, with consumers
seeking unique and high-quality products. TBL should consider expanding their product portfolio
to include premium and craft beer offerings, targeting a new segment of consumers with
sophisticated tastes. Kim and Mauborgne (2017) introduce the concept of "Blue Ocean Shift,"
which involves creating uncontested market space and making the competition irrelevant. TBL
can apply this approach by identifying untapped opportunities in the Tanzanian beer market, such
as developing innovative products or targeting preserved consumer segments. By differentiating
themselves from competitors and creating unique value propositions, TBL can gain a competitive
advantage and capture new market share.

Moreover, TBL should stay attuned to industry trends and adapt its marketing strategies
accordingly. For example, the growing popularity of craft and premium beers presents an
opportunity for company to expand its product portfolio and target a new segment of consumers.
Similarly, the increasing importance of digital and social media marketing requires TBL to
develop a strong online presence and engage with consumers through interactive and
personalized content. by balancing commercial objectives with social responsibility and
embracing a data-driven, consumer-centric approach to marketing, TBL can build a sustainable
and successful business in the Tanzanian beer market. This requires a commitment to continuous
learning, innovation, and adaptation, as well as a willingness to invest in long-term brand
building and customer relationships.
 References
[1] Skoglund, I., & Sjölander-Lindqvist, A. (2019). Beer Culture in the Nordic Countries:
Anthropological Perspectives. Springer.

[1] Lafontaine, S., Gozlan, M., Chokmani, K., & Meliani, A. (2020). Eco-Innovation in the Food
Industry: A Case Study on Alcoholic Beverages. In Advances in Environmental Engineering and
Green Technologies (pp. 110-125). IGI Global.

[2] Mziba, M. & Tlapana, G. (2020). Alcohol Marketing and Consumer Choices in South Africa:
A Study of East London. International Journal of Business and Social Science, 11(3), 98-109.
[3] Mziba, B., & Tlapana, T. (2020). Marketing Strategies Employed by a Selected Brewing
House in the Greater Buffalo City Metropole. Global Media Journal, 18(34).

[4] Datta, Y. (2017). The U.S. beer market: A competitive profile. Journal of Economics and
Public Finance,

[5] Chen, C., & Luo, R. (2019). Executive marketing background, corporate trademark, and
brand management. Journal of Contemporary

[6] Pahl, N., Richter, A., & Scherber, M. (2016). International Marketing: Analysis, Strategy and
Case Study. Springer.

[7] Liu, Y., & Gao, Y. (2020). Strategic Marketing Management (5th ed.). Tsinghua University
Press.

[18] Ugboya, J. O., & Odiamenhi, C. M. (2019). Marketing Strategy: An Overview. In

Management Theory and Practice (pp. 101-119). Intech Open.

[9] Li, Y., & Wang, H. (2021). "A Study on Market Demand Analysis and Marketing Strategy
Optimization of Tech Companies in the Digital Age." International Journal of Business and
Management
[10] Cheng, J., & Xu, R. (2024). Developing a Customer-Centric Marketing Strategy. Nankai
Business Review, 26(1), 65-78.

[11] Kotler, P., & Keller, K. L. (2021). Marketing Management (16th ed.). Pearson Education.

[12] Zhou, X., & Feng, L. (2021). Marketing Segmentation and Positioning (3rd ed.). China
Renmin University Press.

[13] Chen, Y., & Liu, X. (2023). Segmenting the Premium Beer Market in China. Chinese
Journal of Marketing, 21(4), 18-32.

[14] Li, J., & Zhang, W. (2022). Brand Positioning Strategies (2nd ed.). Peking University Press.
[15] Kim, W. C., & Mauborgne, R. (2017). Blue Ocean Shift. Hachette Books
[16] Talley, J. (2017). Session beers: Brewing for flavor and balance. Brewers Publications.

Appendix A. Questionnaire on Tanzania Breweries Limited (TBL)

Company's Beer Products

This questionnaire aims to collect data on TBL Company's beer products. Your responses
will be kept confidential and used solely for research purposes. Please answer all questions
honestly and to the best of your ability.

* Indicates required question

Section 1: Demographics

1. Age*
18-24
25-34
35-44
45-54
55-64
65+

2. Gender*
o Male
o Female

3. What is your current employment status?"*

o Employed
o Unemployed
o Self-employed/entrepreneur
o Other:

Section 2: Emphasizing both Habits and Experience

4. Do you drink beer? *

o Yes
o No

5. How often do you drink beer?

 o Daily
o Weekly
o Monthly
o Occasionally
o Rarely
o Never

6. What are the most important factors you consider when purchasing beer?
(Rate on a scale of 1-5, with 1 being the least important and 5 being the Most important)

Price
Least Important 1 2 3 4 5 Most Important

Brand
Least Important 1 2 3 4 5 Most Important

Taste
Least Important 1 2 3 4 5 Most Important

Quality
Least Important 1 2 3 4 5 Most Important

Availability
Least Important 1 2 3 4 5 Most Important

7. Where do you typically purchase beer? [Multiple choice]

□ Supermarket
□ Bar/Restaurant
□ Liquor store.
 □ Home
□ Other:

8. How much do you typically spend on beer per month? [single choice question]
o 1,000-10,000
o 10,000-50,000
o 50,000-150,000
o 150,000-500,000
o 500,000-1,000,000
o 1,000,000 and above

Section 3: TBL Beer Products, Purchasing Behavior and Brand Loyalty

9. Are you familiar with TBL beer products? *

o Yes
o No

10. If yes, which TBL beer products have you tried? (Please select all that apply) *
□ Safari Lager
□ Castle Lite
□ Castle Lager
□ Castle Milk Stout
□ Balimi Extra Lager
□ Kilimanjaro Premium Lager
□ Eagle Lager
□ Eagle Dark
□ Grand Malt
□ Ndovu
□ Other:

11.What is your overall perception of the TBL beer products? (Rate on a scale of 1-5, with 1
being very negative and 5 being very positive) *
Very negative 1 2 3 4 5 Very positive
12. Which of the following words would you associate with the TBL beers products? (Select all
that apply)
□ Premium
□ Affordable
□ Innovative
□ Traditional
□ Reliable
□ Other:

13. How satisfied are you with the following aspects of TBL beer products?
(Rate on a scale of 1-5, with 1 being dissatisfied and 5 being very satisfied)

Taste
Very 1 2 3 4 5 Very satisfied
dissatisfied

Quality
Very 1 2 3 4 5 Very satisfied
dissatisfied

Price
Very 1 2 3 4 5 Very satisfied
dissatisfied

Availability
Very dissatisfied 1 2 3 4 5 Very satisfied

Variety
Very 1 2 3 4 5 Very satisfied
dissatisfied
14. How likely are you to purchase TBL beer products in the next month? (Rate on a scale of 1-
5, with 1 being very unlikely and 5 being very likely)
Very unlikely 1 2 3 4 5 Very likely

15.Do you consider yourself a loyal customer of TBL beer products? *

o Yes
o No

16. If no, what are the reasons you don't consistently purchase TBL beer products? (Select all
that apply)
□ Price
□ Taste
□ preference
□ Availability
□ Brand
□ Other:

17. Would you recommend TBL beer products to others? *

o Yes
o No

18. What improvements could TBL make to their beer products? *

Your answer

19. If you could change one thing about TBL beer products, what would it be? *
Your answer

Section 4: Perception and Demand

20. What factors would motivate you to switch from your current beer brand to TBL beer
products? (Select all that apply) *
□ Better taste
□ Lower price
 □ Improved quality
□ Greater availability
□ Innovative new products
□ Other:

21. How would you rate the demand for TBL beer products in your local area? (Rate on a scale
of 1-5, with 1 being very low demand and 5 being very high demand) *

Very low demand 1 2 3 4 5 Very high demand

22. Before this survey, were you aware of the TBL products? (Rate on a scale of 1-5, with 1
being not at all aware and 5 being extremely aware) *

Not at all aware 1 2 3 4 5 Extremely aware

Thank you for your support!

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