Beer Wars Case Study Essay

Introduction The market mechanics of the Australian beer companies are given in the case study. The beer market in Australia can be extensive as a result of high usage by Australians. In the early on 1800’s, right now there existed many independent breweries.

Due to bar laws and better transportation systems large breweries began acquiring small ones, and through widespread inorganic expansion, by 1985 the market became completely outclassed by two corporate conglomerates, Elders IXL(CUB) and Relationship Corporation. The two used hostile marketing strategies for increasing business. Top highlighted reasons for beer consumption were mixing with others, relaxing, allowing sociable drinking and enhancing appetite and the idea of beer being equal to ‘liquid food’. Females in general did not like the beverage taste and contributed to just about 12% from the total revenue volume, while 37% of the 54% adult drinking inhabitants admitted being regular drinkers.

Only 10% were ‘ocker boozers’ whom contributed to 60 per cent of the quantity. Hotels/pubs and retail outlet paths formed the majority of the sales. Standard dark beer was the many consumed at 70% then light beer at 24%.

Males across all age groups evenly represented dark beer consumption with little larger consumption inside the 31-40 age group. The online marketers strongly supported the ‘beer image’ having a strong effect on beverage brand preference. So the entrepreneurs started predicting the alcoholic beverages content by using which they accustomed to segment versions in different methods each manufacturer being geared towards a specific section. Several different manufacturer imageries have already been created.

Lastly the several brands and alternatives that had been made up of the wish of creating market share seemed to possess fallen flat. A failed strive in the same direction by means of Swan Rare metal trying to attract consumption by simply women likewise failed. Difficulty: Due to improved competition, there was clearly a flux of presenting new products consistently, which place in peril the older items of cannibalisation.

The major objectives that the beer companies acquired were •Increase market share by simply acquiring customers •Maintenance of existing customers by ensuring not any cannibalisation •product positioning and launch techniques for the modern brands and phasing out older brands Solution: Raise the beer industry, instead of just business The consumption of ale has been gradually increasing over the years (from around 5% in 1900 to 12% in 2000). Nevertheless also surrounding the same period, the consumption of Caffeine and other dairy based drinks had been significantly increasing (from around negligible % in 1900 to 20% in 2000).

Therefore instead of consuming into every single others’ business, the sector should try to boost consumption of Beer among the list of non-Beer consumers and hence improve the whole pie. Encourage powerful brands and terminate lagging brands Instead of keeping a wide array of brands which is bringing about cannibalisation, the brands that are doing well must be encouraged and marketed well, on the other hand the ones that are not bringing in much income should be discontinued. This would make simpler marketing and will make it targeted.

Phase in brands designed for women The exhibits show that women like non beverage alcohol, probably because of to the image of beer as a male bonding drink. Hence certain brands of beer which can be positioned since less bitter, and more girl oriented can be launched. The marketing and advertising of such brands should be done in such a way that the women are targeted.

Increase lumination beer Brands offering light beers and beers with less alcohol would provide two reasons. They would attract customers whom do not beverage, and also happen to be better dished up in eating places according to the shows given. Starting beer brands over substantial spans of time 2 versions of Power’s were introduced in the same month (February 1991) although Forex Rare metal and Forex Light Nasty from Big cat Nathan were launched with only monthly separating them.

Because of this not one brand is definitely properly advertised and does not get the time to build itself in the minds of consumers. This also leads to cannibalisation.