Beer Wars Strategic Marketing Management Essay

IntroductionThe mart dynamics of the Australian beer market is given in the case study. The beer market in Australia is colossal due to high utilisation by Australians. In the early 1800s, on that point existed numerous independent breweries. Due to excise laws and better transport systems gigantic breweries started acquiring sm each(prenominal)er ones, and through widespread inorganic growth, by 1985 the diligence became dominated by two corporate conglomerates, Elders IXL(CUB) and Bond Corporation. Both use aggressive marketing strategies for change magnitude market parting. Top highlighted reasons for beer consumption were blend with differents, relaxing, allowing social drinking and enhancing appetite and the concept of beer being equal to liquefiable food. Women in general did not like the beer taste and contributed to entirely ab come forward 12% of the total sales volume, whereas 37% of the 54% prominent drinking population admitted to be regular drinkers.Only 10% were ocker boozers who contributed 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 represented beer consumption with little higher consumption in the 31-40 age group. The marketers upstandingly believed in the beer image having a strong influence on beer brand preference. So the marketers started projecting the alcohol capacitance by way of which they used to segment variants in different slipway each brand being tar pressed at a specific segment. several(prenominal) 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 similar direction in the form of Swan Gold trying to tempt consumption by women in addition failed.ProblemDue to make upd competition, in that location was a flux of int roducing new products continuously, which put in peril the old products of cannibalisation. The major objectives that the beer companies had were Increase market share by acquiring customers bread and butter of existing customers by ensuring no cannibalisation product positioning and launch strategies for the newer brands and phasing out older brandsSolutionIncrease the beer market, instead of just market shareThe consumption of beer has been steadily increasing over the years (from around 5% in 1900 to 12% in 2000). But also around the identical time, the consumption of Coffee and other milk based drinks had been exponentially increasing (from around negligible % in 1900 to around 20% in 2000). indeed 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 squirt lagging brandsInstead of keeping a huge number of brands which is wind to cannibalisation, the brands which are doing well must be encouraged and marketed well, on the other hand those that are not bringing in much remuneration should be discontinued. This would simplify marketing and would make it focused. Phase in brands tailor 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 brands of beer that can be positioned as slight 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 tidy spans of time2 versions of Powers were launched in the same month (February 1991) while Forex Gold and Forex Light Bitter from Lion Nathan were launched with only a month separating 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.