Understanding My Host Organisation – C&C Gleeson

Module SBUS 30050

Friday 22nd April

|1| Company Profile

Business Name: C&C Gleeson

Registered Address: Bulmers House |C&C Gleeson |Keeper Road | Crumlin |Dublin 12

Number of Employees: 1,000 approx.

Primary Line of Business: Manufacturer, marketer and distributor of branded drinks products

Net Revenue (C&C Group 2015*): €683.9m

Operating Profit 2015 (C&C Group 2015*): €115m

Business Overview

C&C Gleeson is an Irish subsidiary of C&C Group Plc, a leading manufacturer, marketer and

distributor of branded cider, beer, wine and soft drinks. The C&C Gleeson brands range

comprise many of Ireland’s favourite, market-leading drinks products. These brands include

Bulmers, the leading Irish cider brand; major beer brands; ‘Tennents, Clonmel 1650, Corona

Extra, Becks, Heverlee’ and the soft drinks range ‘Finches, JWV and Tipperary Mineral

Water’. C&C also owns a wine division, ‘Gilbeys’, which distributes a wide portfolio of wine

brands such as Blossom Hill, Laurent Perrier, Santa Rita and Yellow Tail.

The organisation affirms that ‘the success and dynamism of the business are underpinned

by its staff and the teams that support the business’ (C&C Gleeson, 2015). The company

adopts the C&C Group strategy, which advocates ‘to build a sustainable cider-led multi-

beverage business through a combination of organic growth’ (C&C Group Annual Report,

2015).

Company News

Acquisition of Gleeson Group

In 2012, C&C Group made a strategic decision to acquire Gleeson Group, which, as a

standalone business, was already established as the largest drinks distributor in Ireland. In

September 2014, C&C completed the integration of its prevailing Irish businesses with the

Gleeson Group to create a single body. C&C Gleeson’s commercial director claims that the

group’s new distribution footprint on the Island of Ireland is now ‘unmatched’ (Mulligan,

2014). As part of the acquisition, the Bulmer’s cider marketing and sales force had been

merged with the wholesale and distribution team to create, what C&C claim to be, a

streamlined presence in the Irish market.

Closure of Water-Bottling Plant in Borrisoleigh

After a detailed review of the operational footprint, a plan was formed to combine current

production from two plants to another plant located in Clonmel, Tipperary. C&C Gleeson

was heavily featured in Irish news headlines, when this announcement was leaked to the

media detailing the intended closure of a bottling plant in Borrisogleigh, Co.Tipperary,

before the employees were informed of such decision. A communication was circulated to

all staff apologising for the manner in which this announcement was received and for the

unintentional ‘breach of security’. The Managing Director of C&C Gleeson assured staff that

the ‘absolute focus was on supporting colleagues throughout this difficult time.’ The media

reported on the story, focusing on the ‘atrocious’ treatment of C&C workers and the nature

by which they learned of the job losses. The Irish Examiner (Kane, 2016) reported on

‘SIPTU’s damning reaction to the news, quoting area organiser Terry Bryan who claimed that

it was ‘a terrible way to treat people’. The decision created an unsettling period for all

existing employees in the company. Staff were formally reassured, by both the Managing

Director and the Business Operations Director, that the consolidation of production at the

Clonmel site was the ‘only viable option’ to maintain a position of long-term competiveness.

|2| - |4| Reflections and Learning

Roles and Responsibilities that I assumed during my Internship

An Assessment of my Learning during my Internship

Academic and Theoretical Insights that I gained at university which applied in

practice

My job title throughout my internship was ‘Marketing Assistant’. Primarily, I acted as a

marketing support tool to all marketing brand managers and to the customer marketing

team. This role afforded me the opportunity to work with the array of major brands

included in the C&C Gleeson portfolio. Although the majority of my work was dedicated to

the cider portfolio, I am glad that I was given an opportunity to work across the span of the

entire portfolio. The responsibilities that I assumed as a result often varied.

Like many new experiences, my initial time in the organisation was full of learning and

adapting to the structure of the company. Although I had held previous part-time positions

in companies, my hours were always infrequent and I was never fully immersed in a

business environment. Simple tasks such as sending emails and answering the phone were

totally unfamiliar to me. The initial step I took was to familiarise myself with brand

information, focusing on the cider portfolio. I made a conscious effort to immerse myself in

any social events that took place as an occasion to get to know my colleagues and become

more comfortable in the working environment.

The following activities are those that I was heavily involved in for the duration of the year.

1. Invoice processing and payments

A daily task that I assumed was raising purchase order numbers for outstanding invoices,

relating to the marketing department, and subsequently processing these for payment. It

was my responsibility to ensure that all invoices followed the correct protocol, i.e. with the

correct address, VAT number and VAT rate, so as to avoid being rejected by accounts which

would involve subsequent delays in payment. This task involved liaising directly with

suppliers and with the accounts and finance department. The systems used for raising the

purchase order numbers are complex and involved a significant level of training. There are a

limited number of employees who are sufficiently trained and, as a result, I was given

significant responsibility in ensuring that all suppliers were paid for their services

accordingly and on time.

What I learned by obtaining this responsibility:

By assuming this task, I gained a better understanding of payment process and agreements

within a company. The systems involved for invoice processing are complicated and lengthy.

There are a number of forms to fill out and each step can be slow to progress. However, this

process has taught me the importance of being thorough with your work. I have learned

from mistakes which I made at earlier stages and hence altered the way I carried this task

out. It is vital that each step of this operation is fully completed, to avoid later complications

with suppliers. I made sure to keep a constant and rigorous record of each step that I

completed. In turn, this record then assists my co-workers when chasing payments and

tracking their remaining budget allocations.

Academic and Theoretical Insights Used:

Before starting my internship, I was conscious of my weak Microsoft Excel skills and was

concerned as to how this would affect my performance in my new role. It was a great

assistance to have the Excel skills videos readily available within the supporting resources

section on Blackboard. These amenities, along with the Excel Core manual, provided me

with the necessary tools to become proficient at the above in advance of my internship. I

was confident in being able to keep a comprehensive record of all purchase order number

payments and supplier’s details.

2. Sales force support

Over the course of my internship, I offered my support to the customer marketing team,

brand teams and the nationwide sales force. This was in the form of getting involved in

below-the-line activation, in conjunction with customer specific activations and branding

opportunities. I acted as a direct contact to all sales representatives, as they requested help

from the marketing department. I developed a close relationship with the nationwide sales

team and I believe that they valued my opinion on running such events, by trusting that I

would organise for the correct promotion tools to be delivered to their outlets. It was my

responsibility to constantly review the latest stock report and flag when stock levels were

running low. I also acted as a feedback loop between the marketing, branding and sales

departments.

What I learned by obtaining this responsibility:

The most important learning that I took from this responsibility was the importance of

effective communication. Having the ability to be able to transfer information effectively,

accurately, and as intended was crucial to this type of work. As expected, conflicting

opinions made it difficult to arrive at a decision on what branding and what level of

investment to commit to when activating promotions. As the organisation’s marketing

budget is not as plentiful as those of our competitors, it was vital to manage the sales

team’s expectations on what promotion tools (items such as branded beer garden

furniture), the marketing team could provide. I learned from handling previous experiences,

and from my co-workers’ advice, on how to approach these requests and ensure that the

correct level of support was provided in each instance.

Academic and Theoretical Insights Used:

The module which prepared me for undertaking this task was MK20020, ‘Marketing, Firms,

Customers and Society’. This module deals with how to develop a successful marketing

structure. As highlighted in the module outline, the theory relates to understanding that ‘a

detailed understanding of market needs and dynamics with appropriate product/service

offerings and effective communication strategy’ is what is needed to achieve a fruitful

marketing structure.

3. Event Organisation

This was the aspect of my role that I found to be most rewarding and enjoyable. Events

planning and coordinating included anything from working on high-profile festivals and

concerts to conducting sampling sessions in local outlets. I was given the responsibility of

conducting nationwide sampling for the new range of flavoured ciders on the market. I also

worked alongside the cider marketing team to ensure the smooth running of festival

sponsorships, which included ‘Tennents Vital’, ‘Forbidden Fruit’ and ‘Metropolis’. These

festivals catered for Some of my tasks involved forecasting and ordering branding tools and

stock, promoting sponsorship activity through digital content and being onsite at the event

as a contact person, while also ensuring the smooth running of the event.

What I learned by obtaining this responsibility:

A key learning point that I took from this responsibility, was working through feedback given

from previous events and making subsequent improvements. Event co-ordination has made

me realise the importance of listening to any issues that appeared throughout the event and

using these as a constructive tool for the next event. It appears to me, that having an open

mind is an essential trait in being a marketer. In an ever changing environment, I have come

to learn that being open to change and understanding the importance of consumer insights

is a trait that will stand to you in such working environment. There is a constant need for

brands to evolve in order to remain relevant with their chosen target market. Another

crucial skill that I secured from this responsibility, is the ability to work under pressure in

order to meet deadlines. I believe that I have developed a mind-set whereby I can be very

productive in situations where time is tight.

Academic and Theoretical Insights Used:

An important theoretical insight from university which I utilised within my event-planning

role was the ability to work effectively within a group. Throughout my two years in

Commerce, I have been assigned to work in numerous groups for projects and presentation

work. Although I wouldn’t describe myself as shy, before I started college, I had very little

experience in presenting as a group or in collating projects with unfamiliar people, and so

was always reserved with my work. Constantly working in groups during college improved

my confidence and made me feel comfortable voicing my opinions on certain topics. As I

acted as a ‘pilot member’ of the target market in relation to festivals and various

sponsorships, I was happy to be able to present my opinions in meetings to senior members

of the team and was confident when asked to give insights into student lifestyles and

behaviours.

4. Social-Media Marketing

I was predominantly involved in the management and daily operations of the Bulmers and

Magners cider brands’ digital and social media channels. I had responsibility for collating

and approving any digital content, alongside our appointed digital agency. An important

aspect of this project was to analyse the engagement and reaction on each post and use this

feedback analysis to further improve the consumer perception of the brands.

What I learned by obtaining this responsibility

Looking after the digital content was something I felt very comfortable with. Once I became

knowledgeable about the brand and fluent with the way in which the marketing team

wished to come across on social media, I was suitably equipped to create, approve and

analyse the content of these channels. This task allowed me to employ my creative side and

develop my copy-writing and PR skills. It also made me aware of the array of strict rules and

regulations put in place for alcohol companies when promoting any digital content. It was

often difficult to communicate with your audience in the preferred way, due to the

limitations in place to prevent irresponsible drinking behaviours.

Academic and Theoretical Insights Used:

‘MIS2040 eMarketing and Social Networking’ proved very helpful to me when looking after

the digital content for Bulmers and Magners brands. It prepared me for being in a position

to effectively analyse the social media engagement feedback and subsequently make the

required improvements. Throughout the module, we had discussed and learned about

successful and unsuccessful social media campaigns, which helped me when designing and

implementing the strategy for each brand.

|5|- |8|

Identify a Problem of Significance in your Organisation

The Nature of the Business Problem and why it is Important

How the Organisation has dealt with the Problem

Problem: ‘Recruiting and Rebuilding Relevance with a younger target market’

This chosen problem is fundamentally relevant to the Bulmers cider brand. In Ireland, as a

whole, ‘cider showed a decline of nearly 7% in 2015 from 62.4 million litres of product down

to 58.1 million’ (Drinks Industry Ireland, 2016). In FY2015, total Bulmers cider net revenue

in Ireland ‘decreased by 7.5 %’( C&C Group Plc Annual Report, 2015). ‘The Bulmers brand

volume as a percentage of LAD (Long Alcoholic Drinks) slipped to 8.8% (from 9.2% the

previous year)’ (C&C Group Plc Annual Report, 2015.) The combined drop of sales volumes

and market share impacted significantly on the profitability of the company. As Bulmers

accounts for a third of the Groups profits (Wynne-Jones, 2015), the importance to the

business of recruiting a new target market is quite considerable.

How did the problem arise?

The Perfect Strom

Increased Competition in Cider Market

I believe that the most threatening factor to C&C Gleeson is the successful launch of

a major competitor into the Irish cider market. In 2015, Heineken successfully

launched its first cider brand, ‘Orchard Thieves’, accompanied by an impactful

marketing campaign. The sweet-tasting cider resonated with a younger target

audience who craved a more sugary alternative to the existing cider products.

Heineken plans to invest approximately €20 million over a 5 year period to secure

the successful launch of the product. I spoke to the current Marketing Manager of

the Cider Portfolio in C&C about the recent rival brand and its supporting marketing

campaign – ‘There is no doubt that the launch has been a resounding success. Since

their launch, Orchard Thieves now accounts for 2.6% of total cider in the On-Trade

and 5.9% in the Off-Trade. The personality of the brand was designed to steal the

hearts of those who are looking for something contemporary. It predominantly clicks

with a younger audience, who feel compelled to buy the product as it is cool, edgy

and very current. It is a serious concern and C&C will need to prioritise a counter-

active strategy to revive the Bulmers brand in order to protect our market share’.

Bulmers Declining Share of Cider Figure.1 On trade decline driven by growth of Kopparberg & Orchard Thieves. Off trade decline driven by Orchard Thieves growth.

(Nielsen, 2015)

Figure 2.

Competitors are still insignificant versus the Bulmers brand, but combined gains have been enough to take almost 10 points of share.

(Nielsen, 2015)

Bad Weather

Market conditions also proved testing for the Irish market in 2015 due to the poor

summer weather conditions. A particular spell of cold and wet weather in the June

and July periods dampened the demand for a cold refreshing drink of cider. I spoke

to the existing ‘Customer Marketing Manager’ in C&C, who had the following insight

on this factor; ‘As a general assumption, for the Summer months, drinkers make the

natural switch from choosing a heavy stout, such as Guinness, to a crisp and lighter

cider drink. The weather this summer did not work in our favour and as a result we

find ourselves in an extremely trying position; recovering from a massive volume

decrease, in an ever-growing heavily competitive playing field. The key strategy I

would recommend for this year is ensuring relevance. ’

Additional factors such as pricing structures and a reconstruction of the nationwide sales

team are believed to have also contributed to the tough sales year for Bulmers.

Bulmers Recovery Plan 2016

Before aligning a proposed strategy to target the loss of market share year previous, there

was a primary focus on conducting extensive Bulmers brand qualitative research. The

methodology of this research was to target focus groups of our core target market (18-24

year olds) to understand their lives, and their drinking repertoires and behaviours. It was

essential that the market research was focused and ‘aimed to reduce uncertainty in the

decision-making process’ (Stevens, 2006). Nationwide sessions were conducted which

comprised of a mix of males and females of various demographics. All participants

completed pre-task diaries on branding, drinking habits and occasions. An array of surveys

and questionnaires were formulated and completed as a further method of building a rich

database of consumer insights. The results of these deep-dive studies were then used to

collate a strategy that would be directly aligned with the behaviours and attitudes of the key

target market.

In addition to a significant level of research, an exhaustive review of the historic marketing

budget was conducted. In the previous year, a heavy weight of investment was plugged into

a TV commercial, which was found to be notably less engaging with the core target market,

in comparison to competitors’ activity. Upon reviewing the market spend, an executive

decision was made to focus the entire marketing spend on below-the-line activations,

sparing any above-the-line promotions for the year. In turn, this would mean that Bulmers

would not be releasing any TV adverts, outdoor poster advertising or radio content. As a

result of this executive decision, the marketing team were limited to devising a strategy that

would be impactful and to securing their position as the leading Irish cider drink. By using

the detailed insights gathered from extensive deep-dives, a brand strategy was created

which focused on the following tools: sponsorships, digital content and a new product.

Digital Content

The proposed digital strategy for Bulmers outlined the following objectives; to leverage the

full power of digital to support and extend any creative content, to reignite energy in to the

brand and ultimately create desirability among 18-24 year olds. As social media channels are

now extremely prevalent among a younger audience, it is essential that Bulmers appeared

current and edgy in order to re-engage with their target audience. The proposed content

will include plentiful posts about topical issues, sponsored events and competitions and

giveaways, which all link back to the brand’s creative communication and new strap-line ‘It’s

about time for…. Bulmers’. The strap line aims to create familiarity with the audience and

allow them to relate to the brand. Below are posts which would encourage engagement

from the core target market that interact with our social media channels.

Bulmers Facebook/Twitter/Instagram Posts

Sponsorships

The Bulmers brand has an established association with music and festivals. It sponsors high-

profile festivals such as ‘Forbidden Fruit’, ‘Body and Soul’ and ‘Metropolis’. These festivals

allow us to talk to our target market at three occasions; pre-festival, at festival, and post

festival. These opportunities will give the Bulmers brand high credibility with their target

audience, who have a huge interest in such events. To re-energise the brand, a plan is put in

place to evolve the existing ‘Bulmers lounge’, an existing experiential area. To keep in line

with the strategy, the evolution will involve extending a music platform which will aim to

resonate with the younger audience of music enthusiasts.

Bulmers Sponsorships

Bulmers Forbidden Flavours

A key objective for this year is to grow the existing Bulmers Forbidden Flavours range of

flavoured cider. The flavours are a platform that need to be fully utilised in order to regain

market share and boost sales from the previous year. The four fruity flavours appeal to the

sweeter appetite of the younger audience and have a fun-loving youthful personality. Steps

have already been actioned to grow the range. Such developments include launching the

flavours range in can packaging, which proves to be more convenient and durable for

summer occasions and festivals. Further strategic plans include partnering with key

influencers to promote the range and persuade the core target market and the execution of

a heavy-weighted trial and sampling activity with the aim of having the product readily

available to the target market.

|9| Key Learning Outcomes

Relationship Building

More than anything, this internship has taught me that building relationships in business

matters. It is through the relationships I have developed in C&C, that I have been passed on

endless knowledge which will stick with me for life, and also help me to shape my future

career. It is my highly influential line manager and extensive marketing team that I have to

thank for my development on this journey to date.

My Likes and Dislikes

As I return to complete my final year in Commerce, I have some key decisions to make

regarding my future career path and where I would like to position myself. I have been fully

exposed to a variety of different working environments, including an extensive combination

of external agencies and suppliers. This opportunity has allowed me to ultimately decide

what I feel will work best for me in the future.

Enjoying the experience

This past year has been the most insightful and beneficial experience I have had to date,

packed full of many enjoyable memories which will stay with me. At times when I was

feeling under pressure with timelines and workload, I was always comforted by the fact that

I had many people I could turn to who would be willing to listen and help. Throughout this

experience, I never felt isolated or belittled by any of my colleagues. The most important

lesson I have learned from this experience is that the people are, without fail, the most

important asset to a business.

References.

1. C&C Group Plc. (2015) Annual Report 2015. Germany: FSC.

2. C&C Gleeson (2015). About Us –C&C Gleeson. Available at:

http://www.candcgleeson.com/about-us/ (Accessed 20 April 2016)

3. Drinks Industry Ireland. 2016, ‘Alcohol Consumption continues falling’ Drinks Industry Ireland

(15 March) Available at: http://www.drinksindustryireland.ie/alcohol-consumption-

continues-falling/ (20 April 2016)

4. Mulligan, J. 2014, ‘C&C finally completes €58m integration of Gleeson units’ Irish

Independent ( 3 September) Available at: http://www.independent.ie/business/cc-finally-

complete-58m-integration-of-gleeson-units-30556766.html (20 April 2016)

5. Kane, S. 2016, ‘C&C Group Staff in Tipperary learn of job losses from media’ Irish Examiner

(3 January) Available at: http://www.irishexaminer.com/ireland/cc-group-staff-in-tipperary-

learn-of-job-losses-from-media-375860.html (20 April 2016)

6. Mulligan, J. 2014, ‘C&C finally completes €58m integration of Gleeson units’ Irish

Independent ( 3 September) Available at: http://www.independent.ie/business/cc-finally-

complete-58m-integration-of-gleeson-units-30556766.html (20 April 2016)

7. Stevens, R. et.al (2006) The Marketing Research Guide.2. New York: Best Business Books

8. Wynne-Jones, S. 2015. ‘Heineken Cider Market Entry could threaten C&C’s position’

Goodbody (8 April) http://www.checkout.ie/goodbody-heineken-cider-market-entry-could-

threaten-c-c-s-position/12006 (21 April 2016)