Marketing Communications Assignment

Topics: Beer, Brewing, Alcoholic beverage Pages: 5 (1086 words) Published: March 17, 2012
Marketing communications assignments….

1.2 External analysis

Environmental factors:

- Social:
o There are numerous social issues in regards to the alcohol industry. These range from associated disease as well as health and safety impacts from high levels of alcohol consumption, to under-age drinking and third world countries the portion of spending money on alcohol versus basic needs. o Domestic violence has consistently risen and has been linked to the consumption of high levels of alcohol.

- Demographic:

- Technological:
o The malting industry has introduced automation and computerisation to reduce labour requirements and to improve product quality control. o The has been renewed pressure on producers to reduce the amount of water used in producing beer. Lion Nathan has built a water recycling plant to reduce the amount of water required to produce a litre of beer to 2.2 litres. o Improvements in temperature control have reduced wastage from heat stressed fermentation. This has allows breweries to reduce their wastage and therefore costs. o

- Government and Regulatory:
o Currently the level of regulation is heavy and the trend is steady. Beer is covered by the Australian & New Zealand food standard 2.7.2, which defines the product, and the additional foods that can be added to beer. o Excise regualtions require that producers measure and sample the beer they produce in order to calculate the excise payable. Siginificant record keeping is required in order to comply with these regulations. o Demands for the products of the beer industry is also affected by state and territory regulations regarding the consumption of alcohol. There regulations include minimum age requirements for the purchase of alcohol and drink driving regulations. The retail sale of alcohol products is also heavily regulated, requiring retailers and hospitality venues to obtain licences, and to only sell alcohol within the hours stipulated under the licences. o Tariffs on beer are levied at a rate equivalent to excise which is charged on domestically produced beers. This has the effect of equalising the tax treatment of imported and domestically produced beers, and puts imports neither at a disadvantage of advantage relative to domestically produced beers.

- Economic
o $5.0bn annual revenue
o 1.5% annual growth from 2006 – 2011
o Projected annual growth from 2011-2016 is 2.3%

- Environmental:
o The consumption of fresh water, fossil fuels and other natural resources. With water being the primary resource, the beverage industry is particularly exposed to water risk because it is dependent on large quantities of water for production and the fact that a large proportion of this water needs to be of very quality so in essence, the portion of water available to companies is very limited. o The key water challenges facing the industry include efficiency improvements, maintaining access to high quality water and dealing with wastewater from the production process. o Another environmental factor is taking into consideration the climate change and far along the industry has come in terms of managing the production of greenhouse gas emission and conserving energy o Other environmental issues to be aware of are associated with the transport of goods, from manufacturing plants to distribution of centres, wholesaler locations and beyond. Considerations around sustainable packaging and minimising waste are also increasing in concern as consumer perceptions develop in certain markets.

- Competitor Analysis

Within the Australian Beer and Malt industry there are two main competitors which are Fosters Group Limited and Coopers Brewery Limited.

- Direct competitors
o Fosters Group Limited: Fosters is amultinational drinks company. Headquarted in Melbourne, the company produces and distributes over 100 brands,...
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