Beer Wars Strategic Marketing Management Essay

Advantages The market mechanics of the Australian beer market is given in the truth study.

The beer market in Australia is usually extensive as a result of high ingestion by Australians. In the early on 1800’s, there existed quite a few independent breweries. Due to excise laws and better transfer systems large breweries started acquiring smaller sized ones, and through widespread inorganic expansion, by 1985 the market became focused by two corporate conglomerates, Elders IXL(CUB) and Relationship Corporation.

Equally used intense marketing strategies intended for increasing business. Top pointed out reasons for beer consumption had been mixing with others, soothing, allowing interpersonal drinking and enhancing urge for food and the idea of beer staying equal to ‘liquid food’. Females in general did not like the beer taste and contributed to just about 12% in the total revenue volume, whereas 37% from the 54% adult drinking population admitted to become regular drinkers. Only 10% were ‘ocker boozers’ who contributed to 60 per cent of the amount. Hotels/pubs and retail outlet tracks formed the bulk of the sales.

Standard beverage was the most consumed by 70% then light beverage at 24%. Males throughout all age groups similarly represented beverage consumption with little larger consumption in the 31-40 age bracket. The online marketers strongly believed in the ‘beer image’ possessing a strong influence on dark beer brand inclination. So the entrepreneurs started projecting the liquor content using which they utilized to segment variants in different methods each brand being geared towards a specific segment. Several different brand imageries have already been created.

Finally the several brands and versions that had been created with the hope of creating market share seemed to include fallen flat. A failed look at in the same direction in the form of Swan Precious metal trying to entice consumption by women likewise failed. Difficulty: Due to elevated competition, there was clearly a flux of bringing out new products continually, which placed in peril the older products of cannibalisation.

The major objectives that the beer companies had were •Increase market share simply by acquiring customers •Maintenance of existing customers by ensuring simply no cannibalisation •product positioning and launch methods for the more recent brands and phasing out older brands The consumption of ale has been gradually increasing over time (from around 5% in 1900 to 12% in 2000). Yet also throughout the same time, the consumption of Caffeine and other milk based drinks had been significantly increasing (from around negligible % in 1900 to around 20% in 2000). Therefore instead of ingesting into every others’ business, the sector should try to improve consumption of Beer among the non-Beer drinkers and hence raise the whole quiche.

Encourage successful brands and terminate lagging brands Rather than keeping a wide array of brands which is resulting in cannibalisation, the brands which can be doing well must be encouraged and marketed very well, on the other hand those that are not attracting much profits should be ceased. This would make simpler marketing and would make it focused. Phase in brands tailored for women The exhibits present that women prefer non beer alcohol, due in part to the image of beer like a male connecting drink.

Therefore certain styles of beer that can be positioned as less bitter, and more female oriented can be launched. The marketing and advertising of these brands should be done in such a way that the women are targeted. Increase mild beer Brands offering light beers and beers with less alcohol would serve two functions. They would catch the attention of customers who also do not beverage, and also are better dished up in eating places according to the shows given. Starting beer brands over extensive spans of your time 2 types of Power’s were launched in the same month (February 1991) when Forex Precious metal and Fx Light Nasty from Lion Nathan were launched with only monthly separating them.

Because of this not one brand is definitely properly marketed and does not find the time to build itself in the minds of consumers. This also causes cannibalisation.