Beer Wars Case Study Essay

gateway The foodstuff dynamics of the Australian beer grocery is given in the drive study. The beer market in Australia is extensive due to high spending by Australians. In the early 1800s, there existed numerous independent breweries. Due to delete laws and better transport systems large breweries started acquiring smaller ones, and through general inorganic growth, by 1985 the industry became dominated by two incorporated conglomerates, Elders IXL(CUB) and Bond Corporation. Both used aggressive marketing strategies for increasing market carry on.Top high vigilanted reasons for beer consumption were mixing with others, relaxing, allowing social drinking and enhancing appetite and the judgment of beer being equal to liquid food. Women in general did not like the beer taste and contributed to only about 12% of the total gross sales volume, whereas 37% of the 54% adult drinking population admitted to be steady drinkers. Only 10% were ocker boozers who contributed to 60% of the volume. Hotels/pubs and retail outlet routes formed the wad of the sales.Standard beer was the most consumed at 70% followed by light beer at 24%. Males across all age groups equally represented beer consumption with little higher consumption in the 31-40 age group. The marketers strongly believed in the beer image having a strong influence on beer give away preference. So the marketers started projecting the alcohol content by way of which they used to discussion section variants in different ways each brand being targeted at a specific segment. Several different brand imageries have been created. finally the several brands and variants that had been created with the hope of creating market share seemed to have fallen flat. A failed attempt in the same direction in the form of be adrift Gold trying to entice consumption by women too failed. bother Due to increased competition, there was a flux of introducing new merchandises continuously, which tell in peril the older p roducts of cannibalisation. The major objectives that the beer companies had were Increase market share by acquiring customersMaintenance of existing customers by ensuring no cannibalisation product positioning and launch strategies for the newer brands and phasing out older brands Solution Increase the beer market, alternatively of just market share The consumption of beer has been steadily increasing everywhere the years (from or so 5% in 1900 to 12% in 2000). exactly also around the same time, the consumption of Coffee and other draw based drinks had been exponentially increasing (from around negligible % in 1900 to around 20% in 2000).Therefore instead of eating into each others market share, the industry should try to increase consumption of Beer among the non-Beer drinkers and hence increase the unharmed pie. Encourage successful brands and terminate lagging brands Instead of keeping a huge number of brands which is leading to cannibalisation, the brands which are doing w ell must be encouraged and marketed well, on the other hand those that are not bringing in much profits should be discontinued.This would simplify marketing and would organize it focused. Phase in brands tailored for women The exhibits show that women prefer non beer alcohol, in fate due to the image of beer as a male bonding drink. indeed certain brands of beer that can be positioned as less bitter, and more feminine oriented can be launched. The marketing and advertising of these brands should be make in such a way that the women are targeted. Increase light beer Brands offering light beers and beers with less alcohol would serve two purposes.They would pull in customers who do not drink, and also are better served in restaurants agree to the exhibits given. Launching beer brands over considerable spans of time 2 versions of Powers were launched in the same month (February 1991) while Forex Gold and Forex Light sulphurous from Lion Nathan were launched with only a month s eparating them. Because of this no single brand is properly marketed and does not get the time to build itself in the minds of consumers. This also leads to cannibalisation.