Market Research Fosters Brewery

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A REPORT ON

FOSTER’S GROUP LTD

Written for: Mike Taafe

Title: Lecturer

Company: Swinburne University of Technology (TAFE)

Department of Marketing & Media, School of Business

Written by: Allen Chen, Matt Pandelis, Harris Wong & Eva Nguyen

Title: Student

Company: Swinburne University of Technology (TAFE)

Department of Marketing & Media, School of Business

Submission Date: September 2nd 2009

1

Symptoms of Problem:

Problem 1: Fosters Fall of Market Share:

|Fosters Group Market Share FIGURE 1.1 | |2003 |2004 |2005 |2006 |2007 | |4.3 |4.0 |3.5 |3.3 |3.1 |

As you can see from these statistics, which vary from 2003-2007, Fosters Group LTD market share for Foster’s Lager has slightly decreased each year. There are many reasons for this trend.

Firstly, you have to know why Fosters Lager market share is rapidly falling each year, it could be that consumers are buying competitors products rather than theirs, which means that consumers may be getting sick of the same old Fosters Lager, and have made the switch to a new innovative brand which has a new unique taste instead of the old same taste.

In relation to the marketing mix, pricing is a relevant factor as it explains why the market share for Fosters Lager is falling each year. As the cost for materials and ingredients for Fosters to create the beer rises, they must increase the price of their beer, and we all know that consumers don’t like to see price increases in products, and therefore, if they aren’t loyal to Fosters Lager, you will more often than not see them switch to a cheaper brand which might be less known but has a similar taste, because money is a scarce resource for some these days.

Imported beers could are another reason as to why consumers are not buying Fosters Lager as much anymore, generally imported beers are of much higher quality than locally manufactured beers. Imported labels such as Corona and Asahi are very popular with Australian drinkers. Consumer attitudes towards beer can easily change because there are so many different types out there and people always want to try new types, so they can find which ones they like and don’t like.

Trends change in this day and age quite often, and especially for a product that has been around for over 20 years now, it is going to be hard to be at the front of the pack for a long period of time, some people just naturally get sick of the same product, and just want something new and different, competitors will also look into Foster’s operations, and possibly mimic their ideas hoping to find the same success as Fosters have over the years.

2

Downstream demand for the industries products

Since final consumption of packaged beer (and malt) must go through retail outlets, liquor retailers are an important link in the marketing channel process. Manufacturers must always carefully plan distribution and influence the level of product promotion within liquor outlets in order to maximize market share. This is necessary in Australia where brand loyalty differs significantly between states because of different brands.

Problem 2: Weather:

Weather is a significant problem because you generally see the most beer sales for Fosters Lager( and any other brand) being made in the warmer seasons such (spring and summer), so for the other 2 seasons (autumn and winter) sales will generally be lower, it’s a fact, when it’s cold, you don’t see as many people buying beer, it may not be noticeable because there are still a lot of sales, but it is definitely lower than the warmer seasons, people like to sit outside and have a beer with...
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