Chapter 1: introduction
1.1 Introduction to branding in food and beverage industry.
Branding is one of the most dominant trends in global food and beverage industry which responsible for the market share of the companies. In this era of globalisation, major food and beverage companies operate globally and increased competition between the brands (Richter, 2004). UK food and beverage industry now have multibillion businesses per annum and every company want to be part of its market as much they can capture. For that different existing companies develop branding strategy and introduce their new products using a well established brand name as leverage. To capture the market share of new segment, and get benefits of goodwill associated with their existing brands. For example – McDonald, pizza hut come in market with new meals with a specific name and it all offer accept by the customers as it have leverage of a strong brand name like pizza hut , McDonald etc. In beverage industry, also have different product with brands like fanta, Miranda, coke diet with its parent coke brand in compare to other beverage parent brand like PepsiCo with mountain dew, mist natural, Tropicana, slice Etc .and they all brands compete for different segment in market like PepsiCo’s slice, coke’s maza and Parle’s frooti compete in same mango drink segment of market. 1.2 Overview of food and beverage industry in UK
As food and drink is a flourishing industry in UK, it is very mature and intensely competitive. It has impacts on the UK economy far beyond its significant contribution to GDP and employment. It provides various job prospects to the various youngsters in UK. Every other industry was affected economically in recession except food and drink sector which remains a major beneficiary amongst. Also the exports of food and drink items have been increased continuously from decades and won’t affect by the recession. The industry achieves Excellency by producing significant number of new products, because of a remarkable R&D centre, which keeps on spending a large amount on innovation. Food and beverage is a huge manufacturing industry which keeps a very impressive and steep growth record from several years in making a great contribution to the UK economy. UK is also the world’s eighth largest exporter of value-added food and non-alcoholic drink products, with nearly £10 billion of overseas sales.FDF keeps a share in coalition with the government which increases the exports, develop trade and investment strategy and enhance the economy of the nation (https://www.fdf.org.uk/resources/fdf_competitivereport_v32%20amended.pdf ACCESSED ON 05 APRIL 2012). 1.2.1 Size of UK Food industry
Food and drink is one of the largest manufacturing sectors in UK, accounting for 15% of manufacturing overall, with a total turnover of £70bn. The industry employs some 500,000 people, 13% of the UK manufacturing workforce. Food and Drink remains the biggest spending category. In 2005, consumer spending on food and drink was nearly £153.8bn, 20% of total UK consumer expenditure (https://www.fdf.org.uk/resources/fdf_competitivereport_v32%20amended.pdf ACCESSED ON 05 APRIL 2012). 1.3 Research Aim
To investigate the importance of branding in food and beverage industry: case focused only on retail multinational restaurant and beverage companies running in UK 1.4 Objectives of research
* To analyse the brand strategy and its impact on food and beverage market. * To investigate the factors that responsible for the performance of branding for food and beverage industry. * Critical analyse the importance of value of brand in order to get more market share. * To identify the challenges for the branding in modern markets.
1.5 Scope of the project
Food and drink industry remains a significant part of UK economy in terms of revenue and employment. It always considers to build and...