In December 2003, East African Breweries Ltd (EABL) launched a low-cost beer named Senator targeted at low-income consumers in Kenya. The decision was based on the realization that the larger share of the Kenyan alcohol market was divided between traditional brews1 and illicit liquors2. These brews and liquors were leaving behind a trail of health problems on their consumers. The government of Kenya had requested EABL to assist in solving this problem. Diageo, the London-based brewing giant, was EABL's main shareholder. EABL management had convinced Diageo that a low-cost beer was an appropriate response to the decline of EABL's market share while simultaneously being a socially responsible investment project. However, a-six month post-launch survey done in May 2004 had shown that Senator was not selling as projected. Further, the survey found that some EABL patrons were trading down from the premium brands like Tusker to Senator. In June 2004, Gerald Mahinda, EABL group managing director had a single important question for Lemmy Mutahi, EABL marketing manager for emerging brands: How to make Senator a sustainable social product innovation for EABL and by extension for Diageo.

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Ogola, Fredrick Onyango; Mungai, Edward; Montalvo Garcia, Adolfo; MÓria Serrano, Josep F.

Corporate social innovation in East African Breweries Ltd (EABL): The launch of Senator

08/2010
In December 2003, East African Breweries Ltd (EABL) launched a low-cost beer named Senator targeted at low-income consumers in Kenya. The decision was based on the realization that the larger share of the Kenyan alcohol market was divided between traditional brews1 and illicit liquors2. These brews and liquors were leaving behind a trail of health problems on their consumers. The government of Kenya had requested EABL to assist in solving this problem. Diageo, the London-based brewing giant, was EABL's main shareholder. EABL management had convinced Diageo that a low-cost beer was an appropriate response to the decline of EABL's market share while simultaneously being a socially responsible investment project. However, a-six month post-launch survey done in May 2004 had shown that Senator was not selling as projected. Further, the survey found that some EABL patrons were trading down from the premium brands like Tusker to Senator. In June 2004, Gerald Mahinda, EABL group managing director had a single important question for Lemmy Mutahi, EABL marketing manager for emerging brands: How to make Senator a sustainable social product innovation for EABL and by extension for Diageo.
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Corporate social innovation in East African Breweries Ltd (EABL): The launch of Senator
Ogola, Fredrick Onyango; Mungai, Edward; Montalvo Garcia, Adolfo; MÓria Serrano, Josep F.
Barcelona (Spain) 08/2010
14 p.

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