Beer as a social drink and its subsequent acceptance across the globe.

Beer as a mixer drink in and its resultant acceptance across the globe.IntroductionThe say leaveing start with appearanceing at the evolution of beer as a social drink and its subsequent acceptance across the globe. The shoot will also investigate how contrastive brands came in to businessize confabulation of beer and incorporated community activities wish closely footb only, rugby and food as moments for beer employment to increase increase acceptance. We will also look at various supranational festivals like the Oktoberfest and the Great British Beer festival in UK which set out actual as a part of beer nuance and helped in the spread of the return do replicated festivals in various parts of the world. Primary explore will be done done online surveys and interviews with respondents across Europe, North and South America, and Asia to understand consumer attitudes towards beer in these regions and a comparative abridgment will be done on their responses. Ba sed on the perceptivitys, the ara will investigate whether a similar model tolerate be replicated in India for the nascent beer industry under the next heads Which of the marketing and conference strategies used in some other countries would / wouldnt work in India, and why? Opportunities for replication of festival models from other countries. Implications for the Indian beer manufacturers and marketers, establish on a comparative analysis of beer po patternioning and communication in different cultures.Literature ReviewA preliminary study of literature on beer industry spherically and consumer behaviour revealed the following salient points* question shows that beer is a non-food specific drink comp ard to wine. It is more than of a masculine and non-formal occasion drink and associated with fun and social events.When it comes to different brands of beer, it is important for them to focus on positioning and consumer engagement. Beer has slowly plough more fashionable to drink with its association with activities like football, rugby and rock music.* Peer pressure plays a huge use on the consumption of alcoholic beverage. alcoholic beverage is associated with a list of quantifys which ar belonging, excitement, warm relationships, self-fulfilment, well-respected, fun and enjoyment, security, self-respect, and sense of accomplishment. These atomic number 18 important cues for any company while foundinging their marketing and communication strategy for their brand.* In America, beer joints reach on forming communities through engaging events and activities. The ambience of the place is also very critical since beer consumption is all about having a good time.* Forming a connect with the brand is also an important parameter when it comes to exchange beer. As quoted by Mike Bristol, owner-founder of Bristol Brewing Co. in Colorado Springs a lot more concourse want to spend on a company that they break some(prenominal) common association wit h. Theyre topical anaesthetic, theyre in the community, and theyre visible. Import beers dont seem to be doing well in theirr market or nationally, and he think thats a shift. Beer is also seen as a product, consumption of which does not go pop out even in scotch crisis times.* As per Culinary Currents, Beer, Wine and Spirits. (2008, September 15). Nations Restaurant News, some myths about beer argon Dark beer is massive Ale is stronger than lager Stout is a meal in a glass Imported beer is better than municipal beer Wine is more complex than beer Fruit beers are girly beers All beer is best served ice-cold Beer and fine dine dont mix Some craft beer makers have also tried to mix beer with specially crafted menu like cheese and seasonal food. The restaurants have even started experimenting with beer to create cocktails to increase penetration and frequency of beer consumption. This, though, could dilute the product personality of beer which does not reflect associatey, fine d ining experience exclusively a more ununplowed and aggressive environment. This food and beer mix is primarily targeted towards non-regular beer drinkers and first timers. Some stats from the US market for March-April 2008 reveal provoke facts (Category Insight, Beverage Beer Demographics. (2008, April). RETAIL MERCHANDISER, 10.) Beer was the fourth largest in terms of US dollar sales in comestible grocery supermarket category. 37% of US adults are regular beer consumers 52% of total beer drinkers are age 28 to 49, but versus their size in the beer-consuming population, 41% of beer record is consumed by 21 to 27 year olds 32% of beer drinkers shop for beer one to three times each week 47% of beer shoppers buy wine in addition to beer 41% add hard drink 70% are male 84% are White, 10% Latino, 6% African American 59% have an income above $59,000 Grocery is the most common beer channel choice at 46% When available, shoppers overwhelmingly prefer to buy cold beer* A brand study in one of the highest beer consuming nations of the world, Czech democracy and Britain suggests that branding played an important role in the development of the organised beer market in these countries at a national level. The entire system was well structured with organisational hierarchies in place as well as streamlined distribution channels. The regional brands on the other hand, do not follow a very structured nation-wide cause. Although the brand development in case of national brands in both these countries are at similar levels, as we go down the bracket, the branding of regional markets in Czech forces lesser developed compared to Britain. For the Czech consumers unlike British, brands were not a consideration in making the choice for public houses as oftentimes as the taste and crust of the beer was. To sustain these smaller breweries, a rule was enacted in which the topical anesthetic public houses were obliged to sell the product from the local breweries restricting t he entry of national brands into these places. This rule though, is not present in Czech Republic making branding more important for them. To keep the beer industry safe in Czech, the breweries have kept the price of their beer lower than the other West European countries. * In 2007, 7 gazillion litres of beer was consumed at the Oktoberfest in Munich in Germany. The biggest pagan context of this festival is the symbolism of equality that is shown as people from all classes and categories sit on the same table to enjoy their beer. The fair is the worlds largest fair which attracts visitors in excess of 7 million from all over the world. Such is the pull of this festival, that similar concepts have been replicated in other countries like Canada, Brazil, USA, and India. * The whassup campaign by Anheuser-Busch for Bud Light revolutionised beer advertising as it targeted the core group of 21-27 year old males who love to hang out with friends over sporting events. * The Indian consum er mindset can be divided into the following sub heads Mind over Matter The Functional over the Ornamental Fear of Tomorrow Enjoying the universal The Desire to Fit In* In UK, beer advertising has been moving towards more engaging media like the earnings from televisions to deepen their customers experience. Companies like Stella Artois have invested in multi-layer brand experience which tries to connect more with the customers and at a personal level. * Taking the case of Heineken, a lot of its planetary success can be attributed to its dead body in quality and uniformity in brand message everywhere. The marketing of Heineken is a combination of spheric feeling and local execution. * In its 2004 report, Global Status on Alcohol, the World Health Organisation (WHO) estimated thither were 2 billion drinkers of alcohol on the planet. Trends suggest that for brands to become bigger, globalisation is the way forward. This becomes slightly easier as the consumers in most developed co untries and emerging economies are now well informed and despite the cultural differences, are more open to international brands. * The study of global inebriety trends suggests emerging markets have much better growth rates than developed markets where the growth is static. Urbanisation, affluence and influence of mass media is playing a major role in this growth. The availability of alcohol in supermarkets is also driving consumption. Beer stands fourth subsequently carbonated drinks, tea and water in terms of share of throat in the world. The off-premise locations are drivers of volume whereas value drivers are the on-premise outlets. In mature markets, growth will be driven by existential marketing. Barman and barista in urban areas are acquiring celebrity chef status. * In traditional drinking alcohol essentially signified a males entry into adulthood and was associated with food. In the modern day, drinks have become more of an individuals style statement and identity. It is important now to be seen with the right drink for the right occasion. Communities and association with them has become more important than before. Another newly developing phenomenon is that of post modern drinking where connoisseurship, novelty and exclusivity are taking predominance. Themed drinking associated with specific cultures is also seeing a good interest amongst the travelling class who get exposed to different cultures frequently. Some of the names like Guinness and Scotch whiskey have become iconic as they are seeped deep in the local culture. * According to the Euromonitor report of 2005, the following are the key drivers in the beverage industries in the major countries Australia convenience and health, mature market needing to add value. Alcohol part of the culture Brazil status, sociability and convenience, developing market with opportunities for growth and adding value. Market vulnerable to economic volatility, beer and football key to national culture China a ffordability, convenience and status in cities, developing market with huge urban potency, rural areas remain largely unchanged France convenience, sociability and status, traditional drinking culture being eroded by ever-changing demands and globalisation Germany price, convenience and health, mature market opportunities to add value. beguile in discounters among affluent and poor Italy sociability, status and health, mature market adapting to changes but traditional infrastructure lacquer convenience, status and health, mature market, highly fragmented and source of innovation Russia affordability, convenience, status, high consumption of locally produced spirits as well as increasing presence of global brands in the cities, high beer and vodka consumption. Alcohol dependency an issue among rural male Russians Spain status, sociability and health, directional market in terms of youth drinking trends older drinkers stick to traditional drinking, young driving the post -modern UK convenience, sociability and health, mature market adding value through novelty concentrated retail infrastructure US convenience, sociability and health, mature market adding value through segmentation and premiumisation* A few of the future trends which can be seen in the global drinks industry are health sensory faculty, fusion drinking, artisan brands and connoisseurship experiential marketing and sociability. * Specific to Germany which has the 3rd highest beer per capita consumption in the world, the consumption of beer has been slowly going down. This is attributed to rising prices and the health consciousness of the drinking population. In turn, flavoured beer, non-alcoholic beer and malt-based Ready to Drinks are showing growth in consumption. * A major development in recent years has been the role and involvement of women in purchasing the drinks. Some of the international brands have started targeting women by creating flavoured beers for them. The communi cation strategy console targets the male predominantly though.* Econometrics study in the US by Franke and Wilcox suggests that there is no significant correlation between the beer advertising and alcohol consumption. All advertising does is make people aware of the brands available but does not really affect the amount of beer consumed overall. A study by Waterson in UK, shows that although advertising spends increase 80% between 1978 to 1987, the actual sale of beer in this period fell by 14%. The study also included Sweden which has banned alcohol advertising since 1979 with similar results. * The April 2009 Euromonitor report on beer shows a global demand of 184.6 billion litres. In the mature markets volumes are declining but in terms of value consumption is increasing. Laws on drinking and driving are encouraging growth of low/non-alcoholic beer and currently it accounts for 2% of global beer market but is showing high growth rate especially in Muslim countries. In Spain, th is category already accounts for 20% of beer volumes. There is also a trend of moving away from the stuffy beer type to niche segments like wheat beer and craft beer. Dark beer is also seeing a goodly revival in growth. * Specific to India, beer consumption has registered an increase of 700% between the period of 1995-2007. The per capita expenditures on alcohol have grown at twice the rate of the average growth in the rate of expenditure in this period. The average of 24 in the country with affluence, access to mass media and information, lowering of entry barriers and high awareness levels means a goldmine of an opportunity for alcohol companies. Retailing for wine and beer is now allowed in supermarkets on a lot of states thereby reaching out to more potential consumers, especially the women. This has also resulted in more and more urban households stocking alcohol at their homes unlike earlier times. Finally, the major beer manufacturers will have to compete for an expanding b ut challenging global market, which will ask hard questions of the positions that global players occupy by category, price point and geography. India will form a major part of this strategy shift and it is already visible with the number of beer brands that have entered the Indian market in the past 2 years. All the seek done above dialog about beer as a part of the popular culture in developed markets. The challenge is to try and suggest a workable strategy for India based on consumer insight to tap the enormous potential that it offers. India today stands at the forefront of this opportunity and hence it is important for these international players to understand the cultural nuances of the Indian consumer before formulating their strategies for the market. Conceptual Framework/Problem DefinitionIndia has one of the utmost annual per capita consumption levels of beer in the world, at 1 litre. The biggest international names like InBev/Anheuser-Busch, Heineken and Carlsberg have already started making investments in the market. Carlsberg has already invested close to $ 200 milion in production facilities in the country. The other companies are also entering the market through tie-ups with local players or setting up their own breweries. The exploitation affluence and increased disposable incomes along with the low average age of Indians presents a huge potential waiting to be tapped by these players. The increased global travel and exposure to westbound media has led to changing attitudes towards alcohol. This is expected to boost beer sales, while shifting government policy regarding alcohol and reductions in taxes and duties present fire opportunities for large domestic and multinational players alike. Some of the states have already allowed beer to be sold in supermarket formats consequently increasing penetration of beer substantially.For international players, the race is on to establish local manufacturing facilities and distribution networks, in vow to gain first-mover advantage over other entrants. Currently the Indian market is dominated by local players but lack of other options has a major role to play in this. Curiosity and aspirational value attached to imported beer presents a unique market for these international players. Clear opportunities exist for those companies which are partnering with local companies or setting up their own breweries to get a head start in this combat-ready market. At this juncture it is of paramount importance for these companies to get their marketing and communication strategy right. This is all the more important because the Indian market and consumer presents a challenge which is different from any other country in the world. Even within India, the cultural diversity is such that different strategies might be needed for different parts of the country. The current literature reviewed primarily consists of work which has been done in the developed beer markets or talks about projected f igures based on empirical data. The biggest gap in such projections is the lack of grounds of the Indian consumer. Launches of a number of successful international products in India backed by such research have failed because of this. This research will try and understand the cultural differences between the Indian beer drinker and the western beer drinker and do a comparative analysis to gain insights which can be used to design the marketing and communications strategy for these international companies. Beer as a product has been successful in developed countries because of the community culture they have created amongst the consumers. The research will help determine key drivers and key characteristics of the Indian beer market. Proposed Research DesignThe research will be carried out through administering questionnaires to the beer drinking community in urban India as well as respondents in USA, Canada, Germany, UK, Columbia, Brazil, China, France, Poland, Finland, Slovakia, Li thuania and Korea. Detailed interviews will be carried out with some respondents in all these locations through telephonic interview/online interaction to understand the culture of beer consumption there. An analysis will also be done to compare the communication of the top 3 brands of the world in all these countries to see the differences and similarities and how these consumers absorb it. The Indian respondents will then be shown the communication used in all these countries and insights will be taken on their response to each communication. This will feast us insights on the cultural differences and similarities between the Indian consumer and their international counterparts. The sample size will consist of at least 10 detailed interviews of international respondents and 10 in depth interviews on Indian consumers. The questionnaires will be administered to 150 beer drinkers in India and 50 based abroad. The sample size of the questionnaire might increase based on the response of the target group. Expected ContributionThe study as earlier mentioned will give a deep insight into the mindset of the urban Indian consumer with respect to beer. It will also look at what are the associations that the Indian consumer has with the alcohol industry in terms of perceptions and specifically with beer. Their responses to international communication will be recorded and analysed to define the key drivers and the key characteristics of the Indian market. The final output as mentioned in the introduction would address at the following heads Which of the marketing and communication strategies used in other countries would / wouldnt work in India, and why? Opportunities for replication of festival models and other community building activities from other countries. Implications for the Indian beer manufacturers and marketers, based on a comparative analysis of beer positioning and communication in different cultures.