Developing an Integrated Marketing Mix Plan

Developing an Integrated Marketing Mix Plan The fruit juices and juice drinks market sector has enjoyed steady growth up until the last few years. However, the market has now stalled due to the economic recession. Juice drinks are less expensive than fruit juices and this latter segment of the market has consequently grown whilst the fruit juices segment has declined, a trend that is expected to continue for the next few years at least. New product innovation and advertising expenditure are also in decline but in-store promotions are increasing as brands fight for market share. Established brands are paying more attention to the growing childrens market with specially positioned and targeted products. The Food Standards Agency has actively promoted healthier eating and pressurised the drinks industry to do the same. However, tough economic times and unemployment are affecting both consumer confidence and the ability of consumers to finance a healthier eating lifestyle. Even so, there is undoubtedly a market gap for a new brand to exploit. A healthy juice drink aimed at children, for consumption at breakfast time, would have little direct competition, in terms of its brand positioning, and would satisfy the need parents have to monitor their childrens five-a-day intake. Equally, it could also compete effectively in school lunch box market segment, which is an identified growth area. A new brand in this market segment would need a strong brand name and a distinctive brand position that resonates with consumer needs and stands out amongst the plethora of well -known brand names, which include Tropicana and Innocent smoothies. The new brand will also have to spend heavily on promotion during its launch phase to establish a sustainable market share. The promotional plan will need to deploy communications tools such as TV, which can deliver the right audience in sufficient numbers to achieve this goal in the shortest time possible. Other support media, such as online advertising, public relations, and sales promotion, will be required in order to support the TV advertising and extend the coverage and frequency of the promotional campaign. The positioning of the new brand is crucial in relation to all aspects of the marketing mix plan, as is the integration of both these activities and the key communications messages, all of which will help to ensure, as far as it is possible, the success of the new product launch. The market sector consists of two distinct segments, namely fruit juices, which are 100% pure fruit juice and juice drinks, which contain ingredients other than pure fruit, such as water. The value of the market sector in the UK grew in 2010, compared to 2009, with an annual increase of just over 3% to  £3.2 billion (Euromonitor, 2011). However, it only recovered to 2008 levels (Mintel, 2008) following a dip in sales value to  £3.1 billion in 2009 (Mintel, 2010). Whilst both overall volume sales and values have grown steadily in recent years, the effect of consumers trading down, together with a reduction in advertising expenditure and new product innovation and development by all brands, the market sector, in terms of product life cycle, appears to be reaching maturity (Mintel, 2010) see Figure 1 below: Figure 1: Product Life Cycle (Source: adapted from Kotler, 2001, p. 349) 1.2 Sales Trends Fruit Juices Vs Juice Drinks In 2010, there was a notable shift in consumers buying value-for-money juice drinks rather than premium fruit juice products. Volume sales in the fruit juices segment declined whilst the juice drinks segment increased its volume sales by 1% and its value by just over 3% in 2010, compared to 2009 (Euromonitor, 2011). This has resulted in a narrowing of the gap between the volume sales of fruit juices versus juice drinks see Figure 4 below. Mintel (2010) expects this trend to continue to at least 2015. Table 1: Volume Sales Trends Fruit Juices Vs Juice Drinks (Source: Mintel, 2010) 1.3 The Competitive Environment 1.3.1 Fruit Juices The brand leader and dominant player in the fruit juices market sector is Tropicana with an estimated 30% share followed a long way behind by Princes with just 3%. Tropicana has achieved its success through maintaining a balance between its premium brand positioning and a pricing strategy that is both appropriate for a premium brand and sufficiently appealing to consumers. Tropicana also benefits from being the UKs most recognised brand in this market sector (Euromonitor, 2011). Orange remains by far the most popular flavour in the fruit juices market segment accounting for about 58% of total sales volume in 2010 (Bainbridge, 2011). 1.3.2 Juice Drinks The major brands in this market sector are Oasis, Ribena, Capri Sun and Robinsons, which together account for about 50% of all sales. For juice drinks, according to Mintel, blended flavours are the most popular (Bainbridge, 2011). Tropicana has also extended its brand into this sector with its Tropicana Go! product for children. 1.4 Consumer Targeting According to TGI, the fruit juice and juice drink market sector is strongly associated with families with 83%, penetration of those UK households with children aged from five to nine. This is believed to be because parents and housewives in particular, are aware of the perceived health benefits of products in this market (Bainbridge, 2011). In addition, children account for one third of the consumption of all juice drinks (Euromonitor, 2011). 1.5 Media Advertising Expenditure The following three tables detail media advertising expenditure for fruit juices and juice drinks overall, by main monitored brands, and by main monitored products. Date Expenditure 2009/10 Index 2005/06=100 Adspend: Sales  £m Ratio (%) 2005/06 28 100 0.9 2006/07 29 104 0.9 2007/08 30 107 1.0 2008/09 23 82 0.7 2009/10 18 64 0.6 (Note: year is from July-June. Main monitored brands only excludes smoothies). Table 2: Total Overall Media Advertising Spend 2005/06-2009/10 (Source: Nielsen Media Research, 2010) Advertiser 2007/08 2007/08 2008/09 2008/09 2009/10 2009/10 Total Total  £000 %  £000 %  £000 %  £000 % Coca-Cola Great Britain 4,656 16 6,675 29 4,853 27 16,184 23 Britvic Soft Drinks Ltd 8,106 27 3,693 16 2,284 13 14,083 20 PepsiCo Intl Ltd 4,872 17 2,122 9 3,036 17 10,031 14 Ocean Spray Intl Inc 4,457 15 2,053 9 1,846 10 8,355 12 GlaxoSmithKline Plc 2,307 8 1,573 7 989 6 4,869 7 Gerber Foods Intl 1,211 4 1,815 8 1,386 8 4,412 6 Nichols Plc 1,104 4 1,089 5 1,332 7 3,525 5 Rubicon Products Ltd 892 3 1,138 5 411 2 2,441 3 British Sugar Plc 661 2 973 4 633 4 2,267 3 Sunsweet Growers 158 1 132 1 411 2 701 1 Others 1,092 4 1,707 7 610 3 3,409 5 Total 29,516 100 22,971 100 17,791 100 70,278 100 (Note: year is from July-June. Main monitored brands only excludes smoothies). Table 3: Media Advertising Spend by Advertiser 2007/08-2009/10 (Source: Nielsen Media Research, 2010) Brand Advertiser 2007 2007 2008 2008 2009 2009 Total Total  £0 %  £0 %  £0 %  £0 % Oasis Drink Coca-Cola 2,260 8 2,676 11 2,135 11 7,071 9 Ocean Spray Cranberry Ocean Sp. 2,235 8 2,604 10 1,751 9 6,590 9 Tropicana Pure Premium PepsiCo 5,129 17 1,134 5 6,264 8 Tropicana Pure Premium Orange PepsiCo 322 1 1,961 8 3,331 17 5,613 8 Capri-Sun Coca-Cola 755 3 674 3 2,521 13 3,950 5 J2O Fruit Drink Britvic 1,659 6 21 2,179 11 3,859 5 Robinsons Fruit Shoot Britvic 2,720 9 348 1 743 4 3,812 5 Vimto Soft Drinks Nichols 1,197 4 1,305 5 1,121 6 3,623 5 Welchs Purple Grape Gerber 341 1 2,230 9 966 5 3,537 5 Robinsons Drink Range Britvic 2,333 8 1,136 5 3,469 5 Others Others 10,416 35 11,000 44 5,390 27 26,806 36 Total 29,367 100 25,089 100 20,138 100 74,594 100 (Note: Main monitored brands only excludes smoothies). Table 4: Media Advertising Spend by Brand 2007-2009 (Source: Nielsen Media Research, 2010) 1.6 Distribution 1.6.1 Off Trade Most off trade sales take place through the large supermarket chains. Tesco sells more fruit juices and juice drinks than any other retail off-trade outlet accounting for around 18% of all sales in 2010 with Asda accounting for just over 11% (Euromonitor, 2011). 1.6.2 On Trade The key on-trade distribution channels in the UK are fast food and other restaurants, plus pubs, bars and clubs, where juices are typically used as mixers. However, the adult  juice  brand J2O is positioned as an alternative to alcohol in pubs, bars, and clubs and is increasing its sales year-on-year (Euromonitor, 2011). 1.7 Price Unit prices vary considerably depending on whether the drink is a fruit juice or a juice drink, and its fruit content if it is a juice drink. In addition, unit price varies according to the products positioning i.e. if it is a premium, supermarket own label standard or budget product. A selection of typical retail prices are shown in the two tables below. Positioning Brand Retail Price Premium Tropicana Orange Fruit Juice 1L  £2.18 Supermarket Own Label Standard Tesco Apple and Mango Fruit Juice 1L Litre  £1.60 Supermarket Own Label Budget Tesco Value Apple Juice 1L  £0.62 Table 5: Fruit Juices Typical Retail Prices (Source: mySupermarket.co.uk, 2011) Positioning Brand Retail Price Premium Prices Cranberry Juice Drink 1L  £1.42 Supermarket Own Label Standard Tesco Exotic Juice Drink 1L  £0.90 Supermarket Own Label Budget Tesco Value Apple Juice Drink 1L  £0.53 Table 6: Juice Drinks Typical Retail Prices (Source: mySupermarket.co.uk, 2011) Unit prices in 2010 were reported as being stable even though some brand owners passed on cost increases associated with fluctuations in currency exchange rates between the euro and the pound. However, this move was counterbalanced by discounting and promotional offers for private label and leading brand in the retail marketplace (Euromonitor, 2011). Generally, consumers were inclined to trade down to  juice drinks from fruit juices, due to price considerations. Whilst the recession undoubtedly encouraged discounting and sales promotions, it is evident that both own labels and leading manufacturers offered discounts and promotions long before the recession actually started. This practice is forecast to be a permanent strategy in the market sector in the future as brands jostle to establish and consolidate their competitive positions in an increasingly price sensitive market (Euromonitor, 2011). 1.8 The Macro Environment PESTEL Analysis Organisations can examine their external macro-environment by using the PESTEL analysis framework (Gillespie, 2007). A PESTEL analysis for the fruit juices and juice drinks market sector appears below: Political This refers to any government policy that may cause an intervention in the marketplace. In 2004, the Food Standards Agency (FSA) in the UK stated that it had a mission to convince consumers to adopt healthier food options for a healthier lifestyle. The FSA also required that the food and drinks industry support it in trying to achieve its aims (Food Standards Agency, 2004). The FSA suggested that organisations should include healthy eating strategies for their customers as part of their overall corporate social responsibility programmes rather than simply as a marketing tactic. In addition, the government has promoted healthier eating through an increased intake of fruit and vegetables with its 5-a-day campaign. This has been successful with 74% of those consumers questioned claiming they were aware of the campaign and nearly 60% having taken some action as a direct result of being exposed to the campaign (Food Standards Agency, 2008). Economic This includes such factors as interest rates, taxation changes, economic status and growth prospects, inflation, and exchange rates. Interest rates remain at an all time low with correspondingly low mortgage servicing costs for the majority of homeowners. However, unemployment, together with the threat of unemployment, is negatively affecting consumer confidence, which, in turn, is causing middle-income consumers to trade down higher priced, premium and luxury products (Warc, 2010). Social and Cultural This covers social and cultural trends that can affect consumer demand. There is a noticeable trend towards healthier eating habits in the UK. The importance of this to brands owners and marketers was highlighted in the Health of Britain Survey conducted in 2008 when Giles Quick from the research company, TNS Worldpanel UK said: It is unlikely that we will ever put health before taste, but brands that manage to combine great taste with practicality as well as a positive health proposition, are in an ideal position to win full marks from the consumer'(Quick, p. 3, 2008) Technological This looks at how new technologies can help create new products and new processes. The ubiquitous internet and the growth of mobile electronic communications devices will have an increasing influence over the way in which consumers interact with, and buy, brands, products, and services (Ericssson White Paper, 2011) Environmental Includes the weather and climate change and how these may affect the marketplace. Global warming and climate change are affecting the UK inasmuch as climatologists expect a generally warmer climate in the future. This may result in consumers drinking more water and, equally they drink more fruit juices and juice drinks (just-drinks, 2011). Legal This includes the legal framework within which the organisation and its competitors operate. There are currently no legal issues that may affect the market. 2.0 Identification of the Market Opportunity 2.1 Rationale for the Market Opportunity As has been seen from the analysis in Part 1.0, the ongoing economic difficulties in the UK have caused consumers in the market sector to trade down from fruit juices to juice drinks. This has been borne out by volume sales figures showing a decrease in fruit juice sales and an increase in juice drink sales over the last three years with the trend forecast to continue to at least 2015 (Euromonitor, 2011). However, fruit juices and juice drinks targeting children have seen their volume sales increase. For example, in 2010, Innocent saw sales of its childrens Wedge Cartons grow and subsequently launched a new product for children, Pure  Fruit  Squeezies, designed as a snack to go in childrens school lunchboxes. Feel Good Drinks for Kids and Tropicana Go! were also launched to target the school lunchbox market (Euromonitor, 2011). For juice drinks, breakfast time is when 50% of all such drinks are consumed (Euromonitor, 2011). All fruit juice and juice drinks, even if they contain no added sugar, contain natural fruit sugar. Consequently, for children, it is especially important that they consume juice drinks at mealtimes, such as at breakfast, as this is less likely to damage their teeth than if they sip at juice drinks during the day (Food Standards Agency, 2011). Equally, parents can monitor their childrens intake of juice drinks at breakfast and ensure that they clean their teeth afterwards before they go to school. In addition, parents are becoming increasingly aware of the need to provide a healthy diet for their children and this message is being actively promoted by government through the Food Standards Agency (2004). Research by Euromonitor (2011) has identified a specific market gap for products targeted at children and believes that brands in this marketplace need to strengthen their five-a-day mess ages. 2.2 Defining the Market Opportunity The gap in the market, therefore, is defined as: A high fruit content (50%), healthy juice dink for children to consume at breakfast as part of their five-a-day needs. 2.3 Competition Competition for such a product will come primarily from those brands that have developed, and successfully marketed, products specifically aimed at children. The identified competitors in this respect are: Innocents childrens wedge cartons and Pure  Fruit  Squeezies, Feel Good Drinks For Kids Tropicana Go! 3.0 Marketing Mix Plan 3.1 Marketing Objectives To generate sales worth  £120 million within 12 months of launch. To achieve a 4% share of the overall fruit juice and juice drinks market sector within 12 months of launch. 3.2 Marketing Strategy 3.2.1 Launch Strategy According to accepted marketing theory, for a new product launch in a competitive and price sensitive marketplace, such as for fruit juices and juice drinks, a brand needs to build consumer awareness quickly and achieve rapid market penetration to establish itself successfully (Kotler, 2001, p.355). Consequently, it is proposed to launch the new juice drink product using a rapid penetration strategy, which is one of four identified strategies for a new product launch- see figure 2 below: Figure 2: Marketing Strategies in the Introduction Stage (Source: adapted from Kotler, 2001, p.355) The rapid penetration strategy involves launching the new product at a relatively low price, compared to competitor products, with heavyweight promotional support in order to achieve the fastest possible market penetration and to gain the highest possible market share. This is a sensible strategy in a market with a number of established competitors where a new, and by definition, unknown brand has no consumer awareness. It is also a strategy more likely to succeed where there is price sensitivity in the market, as there is for fruit juices and juice drinks. In terms of cost, then the unit manufacturing cost falls with the volume production scale and with accumulated production experience (Kotler, 2001, p.356). 3.2.2 Competitive Position There are four basic competitive positions that the new product could adopt as follows: Market Leader Market Challenger Market Follower Market Nicher As this is a new product launch targeted at a segment of the overall market, which, although relatively immature, has some established players, it is proposed that the product is positioned as a Market Challenger. This competitive market positioning is relatively high-risk but also high-gain and helps to build a sustainable competitive advantage (Kotler and Armstrong, 2010) 3.2.3 Analysing Competitors The fruit juices and juice drinks market sector is characterised by intense competition between organisations, many of which now operate on a global scale. In view of this, even though the main competitors have been identified, it is crucial that the new brand gains a detailed insight into the nature of these competitors if it is to consolidate its long-term competitive position following its launch (Wilson and Gilligan, 2005, p. 223). According to Kotler and Keller (2006) there are a number of strategic steps that need to be undertaken in order analyse competitor actions in the marketplace. See Figure 3 on the next page. Figure 3: Strategic Steps in Analysing Competitor Actions In the case of the proposed new product, with its Market Challenger position, it is proposed that all fruit juice and juice drink brands competing within its market segment are attacked -see 3.2.3 Brand Positioning below. However, the brand needs to constantly monitor and evaluate the activities of its competitors. 3.3 Product Strategy 3.3.1 Product Specification A blended*, high fruit-content (50%) juice drink with no added sugar or colouring available from the soft drinks section of the supermarket (not chilled). * Actual flavour blend to be determined through research and pre-testing with consumer sample. 3.3.2 Brand Name The proposed brand name is START! The product targeted at children will be called START! for Kids. This name is intended to help position the brand as a product for consumption at the start of the day i.e. at breakfast. It is also a short and memorable name, which will help the product to stand out in a crowded marketplace and will also help facilitate the establishment of the brand in the consumer consciousness. In addition, the brand name has connotations of a healthy start to the day for kids. The brand name START! is also not exclusively for children and lends itself to extensions into other market segments, such as for the adult market. 3.3.3 Brand Positioning Positioning a brand has been described as an attempt by a business to influence the way in which consumers perceive and behave towards that brand in the marketplace (Perreault and McCarthy, 1999). For example, a brand could position itself to appeal to a particular consumer segment by promoting a particular attribute of the brand that would appeal to that segment (Pechmann and Ratneshwar, 1991). The following two figures illustrate the proposed brand positioning for the new product. High Price Juice Drink Pure Fruit Squeezie Childrens Wedge Fruit Juice/ Smoothie s START! For Kids Low Price Figure 4: START! Brand Positioning Childrens Fruit Juice/Juice Drinks Price per 100 ml/100 g and Pure Fruit Juice Content School Break Times Juice Drink Pure Fruit Squeezie and Childrens Wedge Fruit Juice/ Smoothie START! For Kids Breakfast Figure 5: START! Brand Positioning Childrens Fruit Juice/Juice Drinks Price and Consumption Time 3.3.4 Packaging The packaging will be a Tetra Classic Aseptic pack in two pack sizes 100 ml and 200 ml (Tetra Pak Website, 2010). This is to enable it to be used primarily as a breakfast drink in (200 ml size) and secondarily as a snack drink (in 100 ml size) at school break times. The tetra pack is easy to drink from and is also easy to pour into a cup or glass. The pack is also stable on the kitchen counter and on the school desk. See Appendix I. For retail distribution, the individual packs will be sold in rectangular multi-packs of 10 for the 100 ml and 5 for the 200 ml. The rectangular packaging will assist ease of display and stacking in the retail environment 3.4 Distribution Strategy In line with the rapid market-penetration strategy, the product will be sold though all supermarket chains and convenience stores in the UK with a heavy intensity. In view of the target audience, it will not be sold through the on-trade. The product will only be available for retail sale in multi-packs at the prices shown in Table7 on the next page. 3.5 Pricing Strategy Unit prices in the market segment are currently stable and subject to discounting on promotion (Euromonitor, 2011). The rapid market penetration strategy determines that the pricing strategy for START! will be highly competitive and challenging to the market leader and to other brands in the market segment. Brand/Product Retail Pack Size Price per 100 ml/ 100 g Lowest Retail price per pack START! For Kids 5 x 200 ml  £0.20  £2.00 START! For Kids 10 x 100 ml  £0.22  £2.22 Tropicana Go! 4 x 200 ml  £0.25  £2.00* Feel Good Drinks For Kids 1 x 400 ml  £0.32  £1.27* Innocent Childrens Wedge cartons 4 x 180 ml  £0.41  £2.92* Innocent Pure  Fruit  Squeezies 6 x 40g  £0.83  £2.00* Table 7: Retail prices for START! and Competitor Products (*Source: mysupermarket.co.uk, 2011) 3.6 Consumer Segmentation and Targeting Kotler, (2001, p.286) suggests that consumer markets can generally be segmented in three ways as shown below for the new product: Socio-demographics Primary: Housewives with school age children from 4 to 11, male and female. Secondary: The children themselves. Psychographics families with a healthy lifestyle or intending to adopt a healthy lifestyle. Behavioural factors Parents of children who have a positive attitude to the benefits of a healthy diet. 3.7 Marketing Communications Strategy 3.7.1 Marketing Communications Budget The average advertising spend to sales ratio over the last five years has been 0.82%. In order to achieve the marketing objectives stated and implement the rapid market penetration strategy it is proposed that the budget for the first year for START! For Kids be set at double this ratio i.e. 1.6%. This will result in an advertising budget of  £1.92 million. A summary of the overall marketing communications budget by activity appears in appendix II 3.7.2 Marketing Communications Tools According to Kotler (2001), there are five main categories of marketing communications tools:- Advertising Sales Promotion Public Relations Personal Selling Direct marketing 3.7.3 Marketing Communications Tools Characteristics/Objectives According to Fills 4Cs model (2002), the five main communications tools, are characterised by four principal dimensions: Communications Impact Credibility Costs Control See Figure 6 on the next page, which shows how these dimensions apply to the various component of the communications mix. Figure 6: Fills 4Cs Model As has already been established, START! needs to gain rapid penetration through the use of high impact promotional activity that delivers a large audience within the identified consumer segment. In view of the target audience definition, and the need to create high levels of product acceptance, it is proposed that the consumer promotional activity includes a mix of tools including advertising, sales promotion and public relations. 3.7.4 Integrated Marketing Communications (IMC) The concept of IMC was acclaimed by Moriarty (1994) as being one of the most significant developments in the marketing communications business in the 1990s. Kotler first discussed IMC back in 1997 but it was not until 2003 that defined the concept thus: Integrated marketing communication is a concept according to which the company integrates and coordinates its communication channels to send a message clearly, consistently and convincingly about the organization and its product (Kotler, P, 2003, p. 672). Fills promotional planning framework (2006, pp.174-176) summarises all the aspects of the marketing communications planning process see Figure 7 below. Fill categorises the tasks achieved by communications activity into three areas namely, Push, Pull, and Profile, as follows:- Push The activity is pushed from the product provider to the supply chain intermediaries to help develop relationships. Pull The activity is from the product provider to the end consumer to generate a call to action either a purchase or an enquiry. Profile The product provider implements a mix of communications strategies to build brand reputation with all of its target audiences. Figure 7: Fills Promotional Planning Framework (Source: Fill, 2006, pp.174-176) If a formally structured approach to marketing communications planning, such as that detailed above, is not followed there is a risk that the goals and strategy of the marketing communications plan will not link to the high-level corporate goals, or to the marketing goals of t

From Innocence to Adulthood in The Catcher in the Rye Essay -- Catcher

From Innocence to Adulthood in The Catcher in the Rye      Ã‚   Adolescence is a time of existence in two worlds. One world having the desire to be in the adult world, which is filled with all the unknown wonders of the world. The other world is the world of childhood which is comfortable and protected from all the impurities in the world.   This sort of tug of war between the two worlds is not only mentally imposed on a being, but physically, socially, and morally as well.   With all the mentioned above, often times an adult will discourage an action of an adolescent by saying they are too old to a act a certain way, and then will turn around and say they are too young to do something, like go out late or go on dates.   These contradictions can lead an adolescent to complete uncertainty of their actions.   J.B. Salingers book, The Catcher in the Rye, aptly describes the immense confusion of the in between stages of being a boy and a man.      Ã‚  Ã‚  Ã‚  Ã‚   Throughout the whole story, the narrator, Holden tries to act both the boy and thw man but cannot.   He tries in vain to get a grip on the adult world, but never is quite successful.   Holden's first attempt at adulthood is exemplified when he leaves his school without permission from his parents or the school.   This act in itself sets the stage for his trial and error attitude about adulthood in the sense he failed out of school, which was a childish act.   He tries to rectify his failing out of school by leaving, which he views as an adult act. Holden's leaving school represents his need for independence and he achieves this by leaving.      Ã‚  Ã‚  Ã‚  Ã‚   Another of Holden's failed attempts at ... ... In The Rye". English Journal. 77.7 (1988): 72-75. Kaplan, Robert B. Cliff's Notes: Catcher In The Rye. Lincoln: Cliff's Notes, Inc., 1999. Marsden, Malcolm M. If You Really Want To Know: A Catcher Casebook. Chicago: Scott, Foresman and Company, 1963. Miller Jr., James E. "American Literature". World Book Encyclopedia. Volume 1. Chicago: World Book Inc., 1983. Pinsker, Sanford. The Catcher In The Rye: Innocence Under Pressure. New York: Twayne Publishers, 1993. Roemer, Danielle M. "The Personal Narrative and Salinger's Catcher in the Rye". Western Folklore 51 (1992): 5-10. Salinger, J.D. The Catcher In The Rye. Boston: Little, Brown and Company, 1951. Wildermuth, April. "Nonconformism in the Works of J.D. Salinger." 1997 Brighton High School. 24 November 1999.   

Beer Wars-Documentary Review Essay

Introduction Beer Wars was a very eye-opening documentary. It was interesting to see how the market share of the largest beer company, Anheiser-Busch, has grown throughout the years. In 1965, Anheiser-Busch had a meager market share of twelve percent. As marketing on television grew in popularity, Anheiser-Busch’s market share grew as well. By 1985, Anheiser-Busch’s market share had grew to thirty-seven percent. By 2005, Anheiser-Busch’s market share had grown to an enormous forty-nine percent. This was very shocking to me that one company could control almost one-half of the market share of a $97 billion industry. Also, in 1985, the other two largest beer makers, Miller and Coors, made up about twenty-six percent of the market share. Thus, in 2005, major beer companies made up seventy-five percent of the beer sales in the United States. Which tells us that craft breweries only had twenty-five percent of the market share. How the Large Got/Stay Large In the beginning, all beers were craft beers, until the big three companies wanted to grow, and grow they did. Unfortunately, as the three largest beer companies in the United States grew, the beer-drinking public that was buying their beer were actually the people who were suffering. The reason that I say this is because of the way the large beer manufacturers got to this point. The large beer manufacturers were not very concerned about the quality of their beers as much as they were about the number of sales that were created. The way that the large beer companies did this was through their advertising campaigns. The large beer companies were/are millions and millions of dollars during different sporting functions and on every day television. Beer Wars told us that, on average, there is about $1. 5 billion spent on advertising by the large beer companies every single year. That number is astounding to me, considering how popular their beers are. I think if they were to cut back their advertisements by about 50%, they would still maintain a stranglehold on the beer market in the United States. Another way that large beer companies tend to stay on top of the market is through shelf space at different locations. The large beer companies tend to make many different varieties of beers and thus are afforded more space on the shelves and local markets and liquor stores. This leaves a very small area for craft beers to be displayed, especially when it is very difficult to determine if a beer is a craft beer or made by one of the large beer companies. I will talk more about this later in the discussion. Why Light is King The large beer companies tend to market light lager beers, and for good reason. About eighty-five percent of the beer consumed in the United States is light lager. So, Miller Lite, Coors Light and Bud-Light are very good money makers for the large beer companies. I would not blame the companies for pushing and selling what the people want, or is this what people want? Craft Beer Facts Well, craft beers haven’t fully caught on in the beer markets. NPR. org tells us that craft beers only make up about five percent of the total beer market. According to NPR. org, there are currently over two thousand breweries in the United States. Of those two thousand, about 1,950 of those breweries are considered craft beer breweries. That’s another very interesting point. Ninety-five percent of the breweries in the United States are brewing about five percent of the beer that is sold in the United States. That really doesn’t seem right, but NPR. org goes on to tell us that in order to be a craft brewery, the breweries cannot brew more than 6 million barrels of beer every year. According to texaswatchdog. org, Anheiser-Busch alone brewed over one hundred million barrels of beer in 2011. That is an amazingly large amount of beer for one company to sell. This also tells us that the hope is not nearly lost for craft brewers. If all of the 1,950 craft brewers produced only ? million barrels of beer each year, they could easily cripple the large beer manufacturers with an influx of 975 million barrels of beer flooding the marketplace. But, the vast majority of craft brewers would never want to do that. The Craft Beer Way The craft brewers in the United States and around the world have a completely different take on what it means to brew beer. Dogfish Head craft beer was said to only have . 0002% of the market share of beer sales in the United States. According to brewersassociation. org, Dogfish Head craft beer ranked 12th in the nation in 2011, based upon the number of sales for a craft brewery. That is truly amazing, how a company ranked 12th in the whole country in craft beer sales still only has . 0002% of the total market share of the beer industry. However, the owner of the company said that he would never want to grow like the large beer companies have. He is more concerned about each and every bottle of beer being the best beer possible, rather than worrying too much about how many cases he is able to send out the door. As a whole, craft beer makers try to capture their piece of the market through differentiation of their products and not through advertising like the large beer companies. Craft beer makers still try to do new and interesting things with beer, but they do their best not to lose focus on the most important factor, a good quality brew. Spreading the News Beer Wars told us that one event that allows craft breweries to get their name out to the public is the great American beer festival. This is an event where brewers go to from all over the world for people to sample and try different beers that the craft brewers make. This is a great way for the small breweries to get their name out to the market. Unfortunately, Beer Wars told us that even the large beer companies are starting to attend this event. Large Feeling the Effects The large beer companies have now started feeling the effects of small craft beers in the marketplace. According to brewerassociation. org, craft brew beer sales have increased from about one percent to about six percent of market share in the past fifteen years. This is the only portion of the beer industry to have any sign growth in that timeframe. Once again, the large beer companies are using their financial advantage to combat this trend. Anheiser-Busch has gone out and purchased several small beer company names and have been selling them as craft beers, where in fact they are mass produced at one of many Anheiser-Busch’s factories. Another way that large beer companies are flexing their monetary muscles is through lawsuits. Beer Wars described how one craft brewer was being sued by Anheiser-Busch for using a name that the brewer had used for years. The problem with this is that Anheiser-Busch had not been using that name for very long. Another issue with this is that craft brewers do not have the financial means to be able to hold off many lawsuits from large beer manufacturers. The reason that this is difficult for craft beer makers is the fact that funding for craft breweries is very hard to come by. Usually investors either invest in very large ventures or very small ventures. Most of the time, craft beer makers are somewhere in the middle as far as their funding needs go. Because of this oddity, gaining funds for the production facilities for a craft brewery is very hard to obtain through normal financing. Political Issues Some of the other challenges for the craft beer manufacturers is found in Washington, D. C. Beer Wars tells us that beer lobbyists are one of the most powerful group of lobbyists in Washington. The main focus of these lobbyists is ensuring that the three-tier system of distribution is held intact. The three-tier distribution system basically splits up the beer manufacturers, the beer distributors and the beer retailers. This rule was put in after prohibition to make sure that beer sales would be fair across all persons involved. Basically, so the large beer makers couldn’t prevent others from getting their product onto store shelves. Unfortunately, this is exactly what is happening. Distributors tend to lend favor to the large beer companies, because they are paid by how much beer they deliver, and as we saw from Beer Wars, the large beer manufacturers still control that volume of beer sales. So, when the distributors are putting the beer on the shelves of the retailer, they will basically give the large beer companies whatever kind of shelving presence that they desire, basically because they are getting incentivized to do so. I definitely think that the three-tier system needs to be looked at and revamped to meet the needs of today’s marketplace. Conclusion Overall, this documentary was a very interesting look into the beer manufacturer marketplace. I never realized before how devious the large beer manufacturers are when it comes to protecting their market share. With both the lawsuits over naming rights and the basic control of beer distributors, it’s amazing that any craft beer makers even stand a chance of holding any portion of market share. I believe that the large beer manufacturers are scared of what could happen very quickly if they do not do something to respond to the expanding requirements for quality beer in the marketplace. This documentary definitely made me change my mind on how I thought about craft beers. I always figured it was just some fad that would eventually fade away. I see now that this is not the case at all. Craft brews are just being produced to give the marketplace a much higher quality, even if they have to pay a little more. I have a much greater respect for craft beer manufacturers. I would hope to someday be able to brew my own beer just to see how fulfilling it can be. I will definitely start drinking more craft beers because of this documentary. References (Other Than Beer Wars) 1. â€Å"BREWERS ASSOCIATION RELEASES TOP 50 BREWERIES IN 2011. † Brewers Association. Brewers Association, 17 Apr. 2012. Web. 28 Nov. 2012. . 2. Chappell, Bill. â€Å"U. S. Craft Beer Brewers Thrive, Despite Small Share Of The Market. † NPR. org. NPR, 18 May 2012. Web. 28 Nov. 2012. . 3. Lisheron, Mark. â€Å"Anheuser-Busch InBev Roars against Craft Breweries Bill in Texas Legislature. † Texas Watchdog | Investigating Government Waste, Fraud and.

Technology In The Industrial Revolution Essay - 1174 Words

Technology In The Industrial Revolution Changes in the way people worked, the reformation of social class structure, the concepts that people had about social classes, and the modified international balance of political power were all attributes of the Industrial Revolution. The Revolutions radical changes effected the human experience in both negative and positive means. One aspect that had a positive significant impact on the Revolution was the advancement in technology. Exactly when the development of industry began can be answered according to different definitions of industry. Industry may be viewed in terms of energy use. The Industrial Revolution may have begun when people stopped using human and animal power, and†¦show more content†¦England began to establish a new form of industrial technology which worked simultaneously with industrial growth. Previous to the Industrial Revolution, from 1700 to 1760, industry grew only 0.7 percent. 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