Brand Analysis of Lion Nathan China

Lion Nathan China is experiencing losses in the Yangtze River Delta region as a result of economic downturn, declining expected growth rate, intense competition and an initial heavy investment strategy. These conditions are exasperated by a poor transportation infrastructure, multiple and various regional laws and regulations, and high import costs. Lion Nathan China must reverse their financial losses with a new strategy that will take into consideration these conditions. Building brand equity, reconfiguring profits and growth expectancy, recovering financial losses from the new brewery in Suzhou Industrial Park, and becoming the leading mainstream competitor in the YRD market are key objectives which must be considered in the new strategy. In order to achieve these objectives Lion Nathan must stabilize their current position in the Chinese market by slowing down overall growth and reducing expenditures. This can be achieved through focusing the promotion strategy on one premium brand: Steinlager and through licensing production capacity to other beer marketers. Also, a plan will be put into effect to reduce internal and external inefficiency costs. Lion Nathan is committed to stay within the Chinese market and YRD region due to their investments within the country and their limited growth potential in their home markets (New Zealand and Australia). It is a necessity for Lion Nathan to break even in a three year period, in order not to flounder or to fail within the Chinese market.