Beer Wars Strategic Marketing Management Essay

triggerThe grocery store place dynamics of the Australian beer market is given in the case study. The beer market in Australia is capacious due to high consumption by Australians. In the early 1800s, in that location existed numerous independent breweries. ascribable to excise laws and better transport systems large breweries started acquiring smaller ones, and through widespread inorganic growth, by 1985 the industry became dominated by two corporate conglomerates, Elders IXL(CUB) and Bond Corporation. Both used aggressive trade strategies for increasing market pct. Top high brightened reasons for beer consumption were mixing with others, relaxing, allowing social drinking and enhancing appetite and the concept of beer being equal to liquid food. Women in general did not like the beer taste and contributed to exactly close 12% of the total sales volume, whereas 37% of the 54% adult drinking population admitted to be rhythmic drinkers.Only 10% were ocker boozers who contr ibuted to 60% of the volume. Hotels/pubs and retail outlet routes formed the bulk of the sales. Standard beer was the most consumed at 70% followed by light beer at 24%. Males across all age groups equally delineate 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 brand pick outence. So the marketers started projecting the alcohol content by sort of which they used to segment variants in different ways each brand being targeted at a specific segment. Several different brand imageries have been created. Lastly 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 rely Gold trying to entice consumption by women in like manner failed.ProblemDue to increased competition, there was a flux of introducing new products continuously, which put 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 souse strategies for the newer brands and phasing out older brandsSolutionIncrease the beer market, instead of just market shareThe consumption of beer has been steady increasing over the years (from virtually 5% in 1900 to 12% in 2000). But besides around the same time, the consumption of Coffee and other milk 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 whole pie. Encourage successful brands and plunder lagging brandsInstead of keeping a huge number of brands which is leading to cannibalisation, the brands which are doing well essential be enc ouraged and marketed well, on the other hand those that are not bringing in such(prenominal) profits should be discontinued. This would simplify merchandise and would make it focused. Phase in brands tailored for womenThe exhibits show that women prefer non beer alcohol, in part due to the image of beer as a male bonding drink. Thus certain(prenominal) brands 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 light beerBrands offering light beers and beers with less alcohol would serve two purposes. They would attract customers who do not drink, and also are better served in restaurants according to the exhibits given. Launching beer brands over considerable spans of time2 versions of origins were launched in the same month (February 1991) while Forex Gold and Forex Light Bitter from Lion Nathan were launched with only a month sep arating them. Because of this no single brand is properly marketed and does not get the time to trope itself in the minds of consumers. This also leads to cannibalisation.