The Demand for Beer a Statistical Study

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The Demand for Beer a Statistical Study

By | September 2009
Page 1 of 20
EF 122 PRICES AND MARKETS

THE DEMAND FOR BEER: A STATISTICAL STUDY

COMPLETED BY:

STEPHEN BOWNE

TABLE OF CONTENTS

INTRODUCTION3

PRODUCT RANGE OF AVAILABLE BEERS3

SUPPLIERS4

SUBSTITUTABILITY4

CONCENTRATION4

DIFFERENTIATION5

BARRIERS TO ENTRY5

MARKET STRUCTURE6

ELASTICITIES EXPECTATIONS6

COMBINATIONS7

REGRESSION RESULTS8

SELECTED EQUATION9

WHY THIS EQUATION?9

APPENDIX A11

Regression equations - Summary Table11

RESOURCES19

INTRODUCTION

In applying micro economic concepts to a study of the Beer market, this report is designed to establish the segment that Beer operates in. In doing so, we shall identify the major players in both the production and distribution area, identify the leading brands of beer on offer in the Australian marketplace and make a judgement on the main variables effecting the consumption of beer in Australia.

Critically, the need is to identify major competitors to beer and by doing so ascertaining the marketplace that Beer operates within.

PRODUCT RANGE OF AVAILABLE BEERS

The product range available to the market of consumers in the beer segment is wide and varied. For the purpose of identification, Beer can be disaggregated by the means of delivery, being bottled, canned or bulk. (www.ibisworld.com.au, April 15, 2001).

These products are then differentiated as Premium, Local, Imported, Stout, Heavy, Light, Mid Strength, Bitter, Ice and Dry Beers. They will vary in price and quality and position themselves in differing demographics. There is an element of conspicuous consumption and the snob effect in the supply of some beers. Meaning some beers are not exposed to the normal market conditions as they have certain desirability for consumers to be seen consuming these products, especially Premium and Imported beers, this is supported by the growth in the Premium Beer Market. However the expectation would be that the main factors

in the general market...