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Product code: Marketing-QA492

Opportunities: The fragmented nature of the Ukrainian beer industry provided easy entry opportunities for Deutsche Brauerei.

Strength: product popularity

Marketing strategy at Ukraine:  Trade – credit, 90 days, 2% bad debts

Distributors are real entrepreneurs who have ambitions and learn quickly.


beer produce

  • German + Ukraine
  • Family owned (12 generation)


  • Two varieties product
  • Modern equipment (1994)
  • Close to full capacity
  • Good  quality product


German/ Ukraine:  network of independent distributors

  • German: direct sale
  • Ukraine: they financially supported those distributors--- extended credit
  • Warehousing

Marketing: Eastern Europe: Fragmented, large population

SWOT Analysis


Low advertising

  • Quality
  • Well known / good name
  • Solid single bank relationship


Limited verity

  • High dividend payout 
  • Family owned
  • Bad debt potential
  • Increasing financial leverage


Expansion further into Eastern Europe


Global recession

  • Ukraine volatility
  • Increasing competition

Operating Leverage=

Sustainable external growth = ROE * Retention Ratio / (1- ROE*RR)

Break Even = fixed cost / contribution per unit


Download Questions

Deutsche Brauerei is a family claimed distillery in Germany, established by Gustav Schweitzer in 1737. It was establishedin a town outside Munich, Germany

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