Analysis of Marketing Management Strategies for Beer, Cider, and Ale

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This report provides an evaluation of marketing management strategies within the beer, cider, and ale industry, focusing on the United Kingdom market. It examines the challenges faced by the drinks industry, including declining consumer demand, increased competition, and evolving consumer preferences. The analysis covers branding and packaging trends, such as the shift towards minimalist designs and professional expertise, as well as the impact of premiumisation and new product innovations like bottled ciders. The report also explores how market competition and consumer tastes influence marketing approaches, including gender and weather considerations, and how brands adapt to seasonal variations in demand. Furthermore, the report discusses the evolution of marketing strategies, the importance of new branding and packaging techniques, and the adoption of alternative brands to maintain relevance and drive sales within the highly competitive market. The report also highlights the importance of understanding consumer preferences and market dynamics in the drinks industry to achieve success.
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MARKETING MANAGEMENT
EVALUATION OF MARKETING MANAGEMENT AT BEER CIDER AND ALE
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MARKETING MANAGEMENT
Marketing management refers to the initiatives of a given organization focussing on the
practical application of the techniques in marketing, marketing orientation as well as the
methods within an enterprise and organizations as well as on the management of the
marketing activities and resources of a firm (Chan, et al. 2012, pp.557-562). It entails the use
of various tools from economics as well as competitive strategy to provide an analysis of the
industry context under which the given firm operates. Through the application of concepts
such as Porter’s five forces, strategic groups’ analysis of competitors as well as the value
chain analysis, marketing management is able to analyse the operations of a firm.
In the recent past, the drinks industry has been facing a myriad of challenges. These
challenges are caused by among other reasons; the falling consumer demands, increase in the
production of competitive products, heightened requirements imposed by retailers as well as
consumers and factors that have made access into the market more difficult(Weinstein
&Pohlman, 2015, pp.132-133). These challenges have made marketing of the drinks almost
impossible. For instance, in the years between 2007 and 2014, the production volume of beer
fell by up to 10% in the world’s major beer producing countries such as the United States,
United Kingdom, France and Germany.
Some of the reasons for the decline in the production volumes include demographic changes,
emergence of new beverages providing alternative like categories such as wine, global
economic slowdown as well as introduction of tighter trade regulation and taxations by
various governments. This prompted the drinks’ industry to come up with measures to enable
the industry regain its dwindling glory. As a result of some of the measures introduced, most
brands are slowly regaining momentum. Nonetheless, competition pressure has intensified in
the drinks industry making it very tricky for one to survive in this sector of production.
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MARKETING MANAGEMENT
However, the fact that economies of scale are of less essence in this sector of the economy
has made it a little bit easier for niche providers to compete successfully. Due to the stiff
competition in this industry, stakeholders have come up with mitigative measures to help
them remain relevant in the market. For instance, the management of various industries have
embraced new branding and packaging technics to attract consumers to purchase their
products. Moreover, some beer industries have opted to enlarge their market by going beyond
pubs and bars to supermarkets as well as into other retail stores such as large chains of
discounters as well as convenience stores(Wagner &Eggert, 2016, pp.27-36). Nonetheless, in
so doing, the beer industry still faces its fair share of challenges. For instance, at the retail
stores, the manufacturer faces pressure in the prices and margins occasioned by the fact that
retail stores deliver lower profit margins even whenever they are not giving discounts.
Due to the challenges facing the manufacturers of beer, across the world, consumers are
increasingly adopting the manufacture of beer which is able to skew either to the high end or
to the low end. Recent market trends indicate that for a period of about five years ago, the
product volumes have been constantly shifting away from the core large products towards
value-based brands of beers(Merwe, et al. 2013, pp.650-657). In such economies, brewers
have embraced measures aimed at making their beers value-based to enable them attract
many customers as well as to compete favourably in the market.
The United Kingdom, consisting of a vibrant population, serves as a major market for the
drinks industry. The country produces among other brands; beer cider and ale which like any
other drink brand have faced their fair share of challenges and their management have hence
embraced measures aimed at enabling them remain relevant in the market. Such measures
include among others; branding and packaging.
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MARKETING MANAGEMENT
Beer, Cedar and Ale have dominated the drinks market in the United Kingdom for a long
time. This market for many years has seen changes in the branding and packaging in order
for the brands to cope with changes in the market. For a long time, the beer industry only
focused on putting a logo on their brands. However, the beer cider and the ale industries and
have embraced new stylistic trends in the branding and packaging as a way to make their
products easily penetrate the market.
Today, most beer cider and the ale industry have adopted the minimalist 3-colour approach
which relies heavily on the negative space as well as on the expressive texts and shapes in the
branding and packaging of their brand. Unlike in the past when the job of branding and
packaging beer cider and ale brands where entirely left in the hands of friends who could be
talented artists but with lack of any knowhow about branding, packaging, TTB approval and
marketing, today this industry has made branding and packaging of their brands a
professional affair where trained experts in the field of branding and packaging are used to
come up with the best, market appealing as well as competent branding and packaging
label(Skaczkowski, et al. 2016, pp.219-234).
The changes in the packaging and branding trends of beer cider and ale is determined by the
fact that the drinks industry across the world is growing bigger and bigger thereby leading to
stiff competition in the brand’s market. This has mandated the use of more professionally-
designed brands as well as the use of higher-end graphic design firms who work with their
magic on the brewery artwork. Varying preferences among the consumers of these brands
has also necessitates a shift in the trends of packaging and branding. For instance, whereas
one customer may not like his/her beer cider and ale packaged in the traditional brands
another may prefer the ancient look in the brands.
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The market of beer cider and ale in the on-trade is still very active despite the entrance of new
competitors in the market. Modern market trends indicate a move towards premiumisation
and there is every indication that for a longer time to come the market will continue assuming
this trajectory. Premiumisation in the cider market brings forth three major trends in the
market of beer cider and ale. The trends cover the natural premiumisation of the draught
market, trends in the traditional cider products which represent the real heritage but are still
bag-in-box products and finally the modern cider which have managed to capture widespread
media coverage enabling them to capture a large imagination among consumers as well as the
attention of traders in the market.
Market competition has led to new developments in the marketing of beer cider and ale. Such
developments have led to the emergence of new cider brands that can compete favourably in
the market such as Strongbow Cloudy. Modern trends in the packaging and branding have
also seen the beer cider and ale brands adopt alternative brands to those traditionally available
in the market. For instance, the new bottled cider which has been introduced in the market
has performed extremely well beyond the expectations of many. This bottled cider,
rejuvenated by the emergence of fruit ciders has awakened the cider brand which for some
times had been on its knees. This move has enabled cider to compete with other beer brands
in the market.
Research shows that in the last five years, cider brands have been doing better than other
previously preferred brands in the market(Larimo, et al. 2013, pp.133).This positive growth
in the cider brand has been attributed to the new branding and packaging techniques that were
adopted after 2010. CGA Strategy data indicates a rise in the overall sale of premium
packaged cider by up to 2.8%. This growth in the sales of bottled cider has surpassed the
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MARKETING MANAGEMENT
sales made by draught cider whose growth for sometimes has been on the decline prompting
the adoption of the new branding and packaging designs. As a result, the new branded and
packaged cider is monitoring a head as well as driving sales for major pubs and bar in the
United Kingdom. One of the major examples of draught cider that has declined as a result of
the adoption of new branding and packaging trends is pear cider. Sales of this brand of cider
have gone down due to the discovery of the newly branded and packaged brands that are
more exciting and appealing to consumers.
Bottled cider today remains to be an essential area of growth for any on-trade. This is due to
the ever increasing number of consumers who admit to be enjoying cider’s refreshing as well
as the fruity flavour in cider all year along. Initially meant for summer occasions,
improvements in the branding and packaging of cider have made it a market favourite
throughout all seasons; be it summer months or during the winter months. The new branding
and packaging has been made in a manner to enable the cider brands more appealing to the
younger generations between the ages of 9-24 years. This is because it has been discovered
that a larger part of the market in the drinks industry is composed of the youthful population
hence packaging and branding should be focused towards capturing their attention and luring
them to buy the brand.
The drinks market is also large during festive seasons such as during Christmas festivities
among other festivities such as IddUlFitr as well as during Diwali for the Indians. For this
reason, new branding and packaging labels are adopted during such festivities as a way to
capture a larger market and boost sales. Furthermore, in the branding and packaging of cider,
it is of great significance to consider market composition in terms of the number of males and
females among the target market(Meng, et al. 2014, pp.96-103). Through such observations
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MARKETING MANAGEMENT
and considerations, the manufacturer is able to know the flavour that will be more appealing
to women as well as that which will be more appealing to men. Similarly, gender
considerations will help the manufacturer to know aspects to consider in the branding and
packaging such as colour, design as well as the logo to use on the brand. The emerging trends
in the marketing of beer cider and ale in the United Kingdom has majorly been affected by
among other forces, the weather changes. For instance, consumption rates of the various
brands of drinks have been varying during the winter and the summer seasons. Most of the
drinks brands have come up with new branding and packaging techniques aimed at boosting
consumption during winter as well as summer months.
Research has observed that during winter, sales of cold drinks go up. In an attempt to
maximize on the high demand of cold drinks during the winter months, beer cider and ale
industries have embraced new branding and packaging models such as introduction of
serving over ice. This has encouraged consumers to go for cider during winter. Nonetheless,
during summer, the case is different. The consumption of beer cider and ale goes down in the
summer months as most consumers during summer months prefer hot drinks such as coffee
among other stimulants over beer. However, to ensure that they remain relevant throughout
the year and manoeuvre through all climatic condition, drinks industry have embraced new
packaging and branding trends. For instance, new brands of beer have been manufactured to
suit the different climatic conditions. A good example is the lager brand of beer which is
suited for the summer months.
Similarly, ales as well as stouts are produced in large scale during the summer months are
they have been discovered to be suited to the colder temperatures. Nonetheless, consumer
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choice is not only affected by climatic changes(Thoumrungroje&Racela, 2013, pp.1-30). The
choice is also affected by the consumers’ taste of flavour. This has led to the manufacture of
drinks with varying flavour to suit the market competition. To capture a larger market, some
cider brands have begun driving some of the more traditional cider elements notably
cloudiness as well as scrumpy-style ciders that for a long time had been lost despite the fact
they were still market favourites. Consumer trends in the market indicate that most
consumers in the purchase and consumption of a product tend to search for a sense of
personality. This sense of personality is realised when consumers develop a relationship
which a given commodity brand.
Most consumers tend to purchase and consume products that they can relate to as well as
those products that the consumers feel that it reflects an aspect of them in terms of the flavour
of the brand as well as in terms of the character of the brand. It is for this reason that the
management of beer cider and ale have embraced branding and packaging labels that are able
to identify with the consumers in the market(Maye, 2012, pp.473-486). The management has
put in place efforts intended to sell the brands as being the best quality, offering best
refreshment as well as fun while in the market. Furthermore, the management has put up
efforts intended at boosting consumer confidence at all times. One way the management
ensures consumer confidence is by allowing consumers to freely ask any questions
concerning the product once introduced into the market.
Similarly, as a means to ensuring that publicans are able to capitalise on bottled cider while in
the market, the management has embraced measures that ensure that bottled cider is as
conspicuous as possible in the market. This is done by displaying the bottled cider on top
shelf of fridges, strategically positioned where all current as well as potential consumers are
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able to see the brands clearly The display is made in a manner that the banding and logo are
visible to the members of the public. By so doing, consumers are encouraged and inspired to
choose a flavour of cider which they could never have tried before. Noteworthy, some
consumers have little knowledge on the cider concentrate used in the brands that they
consume. It is for this reason that most manufacturers have been encouraged in the recent
past to embrace branding and packaging labels that scream about the brand to enable many
people in the market to choose the brands(Vieira, et al. 2014, pp.9195-9200). This will make
the brands have a higher competitive advantage on the market thereby increasing their selling
capacities.
Due to the high rate at which new competitors are entering the market, it is advisable that for
beer cider and ale to remain relevant and be able to compete favourably in the market, they
should take the following measures;
Invest heavily in market research. This will enable them to do an extensive research to
discover the various market forces, trends as well as the likely challenges so that they
can come up with mitigative measures.
Do a SWOT analysis to identify their strength, weaknesses, opportunities available in
the market as well as the available threats so that they can come up with ways to
improve the brand further.
Lower the price of their products to enable the middle income earners to afford.
Alternatively, they should produce brands that are affordable to the reach but at the
same time produce those affordable to the poor.
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Bibliography
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management in industrial markets. Industrial Marketing Management, 41(4), pp.557-562
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from concept to shelf. John Wiley & Sons.
Larimo, J., Kuusik, A. and Varblane, U., 2013. 5. The Estonian beer market: the battle for
market leadership. The Global Brewery Industry, p.133.
Maye, D., 2012. Real ale microbrewing and relations of trust: a commodity chain perspective.
Tijdschriftvooreconomische en socialegeografie, 103(4), pp.473-486.
Merwe, D., Viljoen, S., Beer, H., Bosman, M. and Kempen, E., 2013. Consumers'
experiences of cold chain food packaging: A qualitative study among women in South Africa.
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Meng, Y., Brennan, A., Purshouse, R., Hill-McManus, D., Angus, C., Holmes, J. and Meier,
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Wagner, S.M. and Eggert, A., 2016. Co-management of purchasing and marketing: Why,
when and how?.Industrial Marketing Management, 52, pp.27-36.
Weinstein, A. and Pohlman, R.A., 2015. Customer value: A new paradigm for marketing
management. In Proceedings of the 1997 Academy of Marketing Science (AMS) Annual
Conference (pp. 132-133). Springer International Publishing.
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