ASSIGNMENT

Marketing Assignment 1

Marketing Assignment 1

Introduction

Beer is the world's most widely consumed and old alcoholic drink and the third most popular drink after tea and water all over the world. It is produced by the fermentation and brewing of starches, mostly gained from cereal grains - mainly usual malted barley, though maize (corn), wheat and rise are also generally utilized. Most beers are flavored with bine, which work as a natural preservative and add bitterness; however, other flavors like fruits or herbs might be included occasionally (Schmitt, 2011).

The essentials of brewing beer are shared across cultural and national boundaries. Beers are generally classified into two main categories - the regionally distinct ales, and the globally popular pale lagers, which are additionally categorized into other assortments like stout, pale and brown ale. Beer's strength is generally about 4 - 6% abv (alcohol by volume) although might range from less than 1% abv., to over 20% abv. in exceptional cases. This essay will target the segmentation plan of a company to enter into a new market.

Discussion

The beer market of UK is marked by intense competition, in fact the market is attractive to foreign companies due to its growth rate and size and this gives a threat to a number of new entrants as numerous corporations are investing in the market. There are many prospective competitors of the company in the UK beer market. There is also high competition for the company from substitute products like wines and spirits. Consumers bargaining power is high in UK particularly in an off-trade market.

Customers in UK are one of the major consumers of beer in the world. Increasing disposable income of the UK customers has led to the increase in number of bars and pubs. They believe that imported beer's consumption is a sign of high rank or status. As an outcome of low profit margin and high income the demand for lagers and premium beers have increased. The UK market can be segmented on the following basis for entering into a new market.

Market Analysis

Market Segmentation

Geographic

The rising movement of individuals from rural areas to urban areas can make the company to focus on the urban populace. Research has found that the increasing income of populace in urban areas has led to beer's consumption through the on trade channels and through off trade channels in rural areas (Chernenko, & Sunderam, 2012).

Consumer spending is high in densely populated areas and the company should target these areas as the consumers are classy and influenced by the western culture. Though, a great number of alcoholic drink consumers' remain in outer cities regions and therefore the company should target both the markets, urban as well as rural.

Demographic

UK population currently stands at about 62.6 million and is still growing at around 0.65. As the economy and the population continue to grow there will be additional consumption of beer. In UK, consumers of alcohol are mostly male but there has been a considerable increment in female consumers as well over the ...