Posted at 10.17.2018
The beer industry 's been around for many centuries and has always impacted national economies. Countries, including the United Kingdom (UK) and america (US), have had a capricious relationship with the beer industry during the last few centuries. Indeed, these countries start to see the benefit for the economy, from tax revenue increases to job creation, but other regulatory and social costs challenge businesses within the industry. Furthermore within each brewery, their marketing, advertising and branding strategies will be the leading differences amidst the competitors. In oversaturated, competitive markets of the UK and the united states, various breweries are able to maintain profitability even as beer consumption and national incomes are in the decline. Indeed, with social-economic trends stacked resistant to the industry, companies remain profitable, but those profits are fading. Through these declines, companies make radical business choices of mergers or acquisitions in order to dominate the brewery industry.
The brewery industry with a $40 (24. 4) billion market value is an important area of the UK economy, and with a $79 billion market value can be an important part of the US economy. In the united kingdom, the brewery industry provides 600, 000 direct jobs and 500, 000 indirect jobs which generates $45 (28) billion in financial activity and $133 (81. 3) million in tax revenue for 2008. In america, the industry provides 1. 9 million jobs in which $62 billion was made in wages and benefits and $41 billion running a business, personal and consumption taxes for 2008. In the UK, the primary brewery market share is Scottish & Newcastle at 27. 1%, Molson Brewing Company at 19. 7% and Anheuser-Busch InBev at 17. 7%. Within the leading brewery market share in the US is Anheuser-Busch InBev at 50. 8%, accompanied by SABMiller at 18. 4% and Molson Coors Brewing Company at 10. 6%.
Marketing, advertisement and branding strategies are key elements within the beer industry. The beer industry includes the brewers and breweries, distributors, and suppliers and retailers. As markets become more crowded, competitive and complex, the value of your clear brand increases. A brandname can identify one item or a family of items and is also thought as a name, term, design, symbol that identifies one seller's good or services as distinct from other sellers. An advertised brand is a brand that is owned by a business and it is a consumer product. Marketing can be an organizational function and a set of processes for creating, communicating and delivering value to customers that benefit the organization. Advertising is the placement of messages in time or space in virtually any of the media to persuade members of a particular targeted audience. (American Marketing Association, 2009)
A powerful brand provides company a personality of its own which transcends its components. These components can be seen in both American brewing industry and the British brewing industry. A brand emphasizes emotion and awareness, but it addittionally connects with consumers to make a strong loyalty base. Fads come and go, but name brands last generations. The brewery industry is very complex in both horizontal and vertical business activities.
There are emerging literatures that specifically relate to the brewery industry where various theories involve the marketing, price and competition aspect of the industry overall. Marketing beer involves the four Ps which is the product, in this case the brand name. The price, which include the total cost to manufacture, distribute and advertise the beer. The place is the distribution of the beer from the warehouse to the buyer with varies steps among. And lastly, the promotion of the beer is through various characteristics of the marketing plan where advertising is included.
The main subject studied in this academic style dissertation is the effects of branding and marketing within the American and British brewery industry as well as the energy to accomplish profitability. The specific research questions were created:
Research Question 1: How exactly does the US and UK brewing industry implement their branding identity?
Research Question 2: How will social-economic trends affect the profitability of the US and UK brewing industry?
These questions provides a knowledge of firm characteristics within the industry and their business practices as well as the relative success of the best firms.
The framework for the dissertation is really as follows with this chapter presenting the overview for today's study. In the next chapter the methodology is described in greater detail. In Chapter Three, a review of the literature relating to industry concentration, advertising, competition and demand is presented. Chapter Four will consist of empirical materials of primary and secondary data on the key macrobreweries within the united states and the united kingdom as well as results of semi-structured interviews comprised of men and women working within the industry. Chapter Five conveys the analysis and findings developed throughout the study. The final chapter presents the conclusions and suggestions for further regions of research.