...Good Times As I was flipping through an old Maxim magazine I noticed the numerous ads for leading products such as alcohol or even tobacco; it was difficult not to. Many alcoholic beverage products use sex appeal whereas others may use a socializing atmosphere to market their product. Skyy Infusions All Natural Ginger Vodka illustrates strong sexual appeal by using an attractive red head to promote its product. Hennessy Cognac takes more of a rewarding social approach directed mainly towards black consumers. So whether you’re feeling frisky or like relaxing with friends you’re sure to have a good time when consuming alcohol. Alcohol products in general are aimed at a younger audience, consumers prominently between the ages of 21 and 45. The Skyy Infusions All Natural Ginger Vodka advertisement has an image of a large, blue, glass bottle on the lower right side. On the left is a stunningly attractive red head, a “ginger” with striking blue eyes, bright red lips, and cherry red polished nails. The models hair is elegantly styled with big luscious curls. Her skin is a light, milky, cream color and her neck is alluringly exposed. It appears as if she is lying on a bed of silk bronze colored sheets which wrap around her showing just enough bare skin to make you believe that she is wearing nothing at all. She has a very seductive look on her face with her mouth slightly open intended to entice male consumers to purchase this product. In her left hand she holds a drink...
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...Australian Beverages Ltd 1. Identify the industry, product segments and value chain Industry – Australian bottled water manufacturing industry Product segments includes stilled water and sparkling water Value chain – (upstream) Access to water supply > Manufacturing > Packaging > Distribution > Retailers > Consumers (downstream) 2. Current life cycle position of the industry Australian bottled water manufacturing industry is at the growth stage of its life cycle. It is evolved out of the soft drink manufacturing industry during the 1990s, hence considered a relatively new industry. It is the fastest growing category in the non-alcoholic beverage market in Aus in 2011. Growth is demonstrated that despite from a relatively low base compared to other more established beverages, it shows increase per capita consumption. This is shown in Table 1 that bottled water growth from 2001 to 2011, increasing significantly from 6.4% in 2001 to 13.3% in 2011 (i.e. a 107.8% increase over the period). It is also projected to increase by 30.8% from 2011 to 2016. Despite having Energy drink, ready to drink tea/coffee, sports drinks and milk drinks are also experiencing growth; however bottled water has the largest market share of all the other growing non-alcoholic beverages. A recent report by Global Earth Policy Institute shows that global consumption water rose 56.8% to 164 billion litres from 2007 to 2011. Australians consumed 963 million...
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...the slowing growth rate of beer sales, especially in the developed markets will potentially hinder the company's revenue growth in the region. Strengths Weaknesses Extensive brand portfolio including three global flagship brands enhances brand recall and recognition among global consumers Diversified and balanced exposure across multiple geographies helps in business risk mitigation Product innovation contributes to growing sales Threats Rising disposable income and cultural shift towards alcoholic beverages make Asia an attractive target market Association with Federation Internationale de Football Association (FIFA) would enhance the company's brand recognition Shifting consumer preferences towards lowalcohol beers Growing demand for craft beer in the US Slow growth rate of the global beer market and falling demand for beer in the developed markets can adversely impact the company's future revenues Stringent advertising regulations to control irresponsible portrayal of alcoholic drinks Booming trade of counterfeit alcohol Unfunded employee post-retirement benefits affect the company's liquidity Opportunities SWOT analysis details...
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...ADVERTISING PRACTICE CONTENTS FOREWORD SECTION 1 SCOPE DEFINITIONS 6. INCLUSIVE TOURS 7. PROPOERTY ADVERTISING 8. SALES ADVERTISING SECTION 11 GENERAL PRINCIPLES SECTION IV MEDICAL AND RELATED PRODUCTS AND ADVERTISEMENTS CONTAINING HEALTH CLAIMS 1. 2. 3. 1. PREAMBLE 2. INTERPRETATION 3. SCOPE DECENCY HONESTY FEAR, SUPERSTITION, VIOLENCE, ILLEGALITY 4. TRUTHFUL PRESENTATION 4.2 ACCLAIMS 4.3 THE VALUE OF GOODS 4.4 USE OF THE WORD FREE 4.5 ‘UP TO …’ AND ‘FROM …’ CLAIMS 4.6 WHOLESALE 4.7 VISUAL PRESENTATIONS 5. COMPARISONS 6. DENIGRATION 7. EXPLOITATION OF NAME OR GOODWILL 8. IMITATION 9. TESTIMONIALS 10. PROTECTION OF PRIVACY & EXPLOITATION OF THE INDIVIDUAL 11. IDENTIFICATION OF ADVERTISEMENTS 12. SAFETY 13. GUARANTEES 14. MONEY-BACK UNDERTAKINGS SECTION III SPECIFIC CATEGORIES OF ADVERTISEMENT 1. 2. 3. 4. ALCOHOLIC DRINKS CHARTABLE CAUSES CLAIMS OF ‘CHARTERED STATUS EMPLOYMENT AND INSTRUCTIONAL COURSES 5. CONFORMITY WITH THE LAW 4. IMPRESSIONS OF PROFESSIONAL ADVICE OR SUPPORT 5. SAFETY AND PROTECTION OF CHILDREN 6. FOOD SECTION V 1. 2. 3. 4. 5. THE CONTROL SYSTEM PROCEDURE SANCTIONS COMPLAINTS COUNCIL APPENDIX A - CHILDREN AND YOUNG PEOPLE APPENDIX B - ADVERTISING FOR ALCOHOLIC DRINKS APPENDIX C - AUDIO VISUAL ADVERTISING APPENDIX D - STATUTES WITH SPECIAL RELEVANCE TO ADVERTISING AND RELATED TRADING PRACTICES THE JAMAICAN CODE OF ADVERTISING PRACTICE 1. 2. 3. 4. 5. 6. 7...
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...Understanding the external environment (Industry attractiveness) 1. Identify the industry, product segments and value chain. The industry is the Australian Non-alcoholic beverage industry. Currently, Australian Beverages Ltd is the second largest competitor behind Butlers Corporation. Industry consolidation has been occurring but is not expected to continue in the future due to the relatively high market shares held by major competitors. Core operations cover processing and bottling (not retailing). Product segments include CSD (in decline stage), Diet CSD, Fruit Drinks, Milk Drinks, Energy Drinks, Sports Drinks, and Ready to drink coffee/tea. Entry into the snack food market was recently undertaken. 2. What is the current life cycle position of the industry? The Australian Non-Alcoholic Beverage Industry is at the mature stage of its life cycle. Whereas, the bottled water manufacturing industry is currently in growth stage. Major segments of the bottled water industry are still water and sparkling water. 3. What have been the key issues affecting historical and future industry growth? What was their impact or their likely impact and the overall assessment of the industry’s future growth? Key Issues influencing growth, using PESTEL Model (Analysis of industry as a whole including bottled water industry. Trends in broad industry also impact the bottled water industry) FACTOR ISSUE Historical / Future NATURE OF IMPACT (+ / = / -) Politics Import Tariffs – only affects...
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.....................................................12 8. Objectives.....................................................................................13 9. Marketing Mix.............................................................................14 10. Budget.........................................................................................15 11. Peer Assessments .......................................................................19 1. Executive summary PepsiCo is one of the main players in the beverage markets. The Canadian drinks market exists 16.3% of carbonated soft drinks, PepsiCo is in this market the biggest in Canada, but they want more, even though PepsiCo had a market share of 45.3% in 2011, they feel the competition of Coca Cola (44.2% market share). PepsiCo is underperforming in comparison to its main competitor Coca Cola in the urban markets, like Toronto and Vancouver. PepsiCo started a marketing campaign in 2012 by reintroducing the Ultimate Taste Challenge (UTC), in which they focus especially on the Millennials between 16 and 25 years of age. Those Millennials get the change to do a blind test in comparing...
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...A dvertising consists of all the activities involves in presenting to a group, non-personal, oral or visual, openly sponsored message regarding disseminated through one or more media and is paid for by an identified sponsor.(William J. Stanton, 1986) Advertising is communication media that can be used to provoke customers to purchase the goods and services. For that we use various advertising media such as television, radio, newspapers, magazines, direct mail as well as hoardings. Businessmen apply more than one above mentioned media to attract the customers. They often try to select the most appropriate and suitable advertising media to reach towards the large number of customers. In addition to that they try to advertisein the eye catching places such as retail shop, bus, airport, train etc. Some Organizationsspend a lot of money for advertising to increase their sales. Some people spend more money for advertising, but they do not expect to enhance sales. They are political parties, active organizations, religious organizations, army etc. Some welfare organizations use informal advertising methods to advertise regarding their functions. $ 385 billion was spent on advertising by World’s people. From that amount, $ 155 billion was spent only by the USA. That auditing Company expects that the world advertising expenditure is exceeded than $ 500 billion in 2010.(Global Entertainment and Media Outlook Report, 2010) In this discussion, we should identify the objectives of...
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...DESK RESEARCH TO EXAMINE THE INFLUENCE OF MARKETING AND ADVERTISING BY THE ALCOHOL INDUSTRY ON YOUNG PEOPLE’S ALCOHOL CONSUMPTION Research prepared for the World Health Organization by the Centre for Social Marketing at the University of Strathclyde Emma Cooke, Gerard Hastings and Susan Anderson March 2002 Acknowledgements For acquisition and translation of international data: Jill Bain, Marina Biniari, Liliana Carcamo and Ingrid Kajzer. For comments on the final draft: Anne Marie MacKintosh For administrative support: Kathryn Angus and Aileen Paton. CONTENTS Page No 1.0 INTRODUCTION 1 2.0 MANAGEMENT SUMMARY 2 3.0 METHODOLOGY 4 4.0 RESULTS 7 4.1 Advertising 7 4.1.1 Econometric Studies 7 4.1.2 Consumer Studies 11 4.2 Other Forms of Marketing 15 4.3 Developing and Transitional Countries 21 REFERENCES 25 1.0 INTRODUCTION At the World Health Organization Ministerial Conference on Young People and Alcohol in Stockholm (February 2001) considerable concern was expressed about the nature and pervasiveness of advertising and marketing by the alcohol industry. Explicit examples were shown of alcohol promotion exploiting the themes of sexual, sporting and lifestyle success, often in direct violation of advertising codes. Furthermore, many of the advertising examples displayed images of excessive consumption. In addition, the Conference noted...
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...goal was accomplished, distributing Coca-Cola through soda fountains. In 1984, Joseph Biedenhard installed a bottling machine in his soda fountain, making him the first to bottle a Coca-Cola. The first Coca-Cola sold for only five cents. For only $1, three business men from Chattanooga, Tennessee, Benjamin Thomas, Joseph Whitehead, and John Lupton, purchased bottling rights from Asa Candler, and later developed what would become the Coca-Cola worldwide bottling system ("Coca-Cola History", n.d.). Today, The Coca-Cola Company’s number one competitor is Pepsico Inc., the maker of Pepsi. Other competitors include, Dr. Pepper Snapple Group Inc. and Nestlé. Coca-Cola dominates the beverage world controlling 51% of the global carbonated soft drink business. Pepsi controls on 22% of the beverage business (Zmuda, 2009). Coca-Cola’s marketing capitalization, the market value of the company’s outstanding shares, is 179.74B toppling Pepsi’s 121.73B. Coca-Cola is also ahead of Pepsi in Quarterly Revenue Growth Year over Year. Quarterly Revenue Growth refers to an increase of a company's sales when compared to a previous quarter's revenue...
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...firms must reallocate their position and their strategy. Entering new markets offers advantages and developing opportunities. In order to achieve profitability Michael Porter established a 4 strategy matrix, three of which might be found very useful to a company that wishes to follow international headway (Michael Porter, 1980). Through this assignment Porter’s matrix and his proposals are about to be presented as a helpful tool for any enterprise that whishes development off its country’s borders. Two major companies, worldwide known for their products in beverage market segment are about to be analyzed as representative examples of their differentiative and cost leadership character. VIN and Spirit, a Swedish firm which was the creator of Absolut Vodka compared with Diageo, Smirnoff’s enterprise. VIN and Spirit Company without the basic knowledge of a global strategy, it managed to obtain one of the leading market beverage segments being also a very representative example of advertising and packaging differentiation (Vin & Spirit Annual report, 2007). The second company, DIAGEO is producing popular products ne of which is Smirnoff Vodka. Because of its well known products worldwide, Diageo does not concentrate on a specific product (DIAGEO Annual Report, 2007).Instead it uses very good organized mechanisms of production, promotion packaging and distribution with lowest cost which offers the advantage of selling cheaper than the competitors, without spoiling product’s quality...
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...Jay Lodwick Research Exercise for MRKT 5920 Marketing Channel Management with Professor Michael Johns Executive Summary Pernod Ricard acquired ABSOLUT vodka from the Swedish government in October 2008. With considerable 13.45% CAGR growth in vodka segment among the spirit market, vodka is the place to concentrate resources. The strategies are aimed to create demand from consumers (pull strategy) and encourage outlets to sell ABSOLUT vodka products (push strategy) by utilising customer relationship management ("CRM") and below the line event marketing. The proposed plan has objectives of increasing volume sales growth rate to 16 - 18% year-on-year with constant sale price, maintaining and attempting to increase gross profit margin above 50% and net profit margin above 20% and reach 2.92% market share within spirit market by 2010 through creating competitive advantage from entering a comprehensive CRM and below the line marketing programme that no other vodka brands in Australia have done before. Plan is recommended to be executed on January 2009 or as soon as Pernod Ricard Pacific has total control of ABSOLUT vodka. The ABSOLUT launch event should commence during the first quarter of 2009 with series of advertising schemes and customer base building happening throughout the year. Major events are scheduled towards the end of the year. Total marketing expenses budget for 2009 is AU$6.5mil. Company Background Pernod Ricard holds the most prestigious brand portfolios...
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...Country Comparison Factbook France vs. Italy Wine Industry Group 16.4 Bram van Veen Caspar Leusink Muhammad Hafidz Randy Hardja Lecturer: Mr.Drs.HenkRitsema Contents Executive Summary 3 Introduction 4 Methods and Frameworks 5 Hofstede’s cultural dimensions 5 Porter’s diamond 7 Porter’s Five Forces Model of Competition 8 Introducing the Wine Industry 9 Overview of Wine Industry 9 French Wine Industry 10 Italian Wine Industry 11 Country comparison 12 Comparison of relevant macro-economic indicators 12 General economic indicators 12 Financial Health 13 Demographic Factors 13 Historical developments 14 Historical Background 14 Global Wine Industry Developments 15 Socio-cultural conditions 17 Cultural Diversity 17 Hofstede 18 Political and Governmental Systems 19 Legal Systems 21 Financial Systems 21 Labour Market 22 Industry Conditions 24 Supply Market Conditions 24 Demand market conditions 24 Threat of New Entrants and Substitute Products 25 Major players and level of competition 27 Level of Competition 28 Recommendations 28 Italy 29 France: 31 Recommendations: 33 References 34 Executive Summary The goal of this factbook is to provide potential investors with information on relevant dimensions regarding the wine industry in Italy and France. The factbook is comparing both of the countries using methodological framework and secondary data. The data we used are obtained through various sources. In the end, Italy is presented...
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...consumed by drying the plants’ leaves and boiling it in water. This is then drunk as black, green or white with milk. Demand for tea is increasing every year; in the last decade, global demand for tea has increased by 40% in comparison to coffee which has only increased by 7% (Aoyama & Akiyama, 2013). The global market for tea is very aggressive especially in countries where the demand is huge; the United Kingdom for instance is considered to be one of the biggest importers of tea as its population consumes around 165 million cups a day (UK Tea Council). This statistic for the UK population might change as prices of a cup of tea (at the retail level) is increasing due to many factors (Price of a cup of Tea to rise as demand soars, 2011). Supply and demand for a product play a major role in indicating the price; however, there are other determinants that also contribute towards the pricing of a product (Nellis & Parker, 2006). As a result the UK market will witness fluctuating prices for a cup of tea. The aim of this essay is to explore the factors affecting this increase in price. To understand what is happening to the quantity demanded we have to examine the determinants that lead to the shift in the demand curve. One of these points is the advertisement of health awareness through tea; medical examinations proved that tea helps in stabilizing blood pressure and...
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...This seal is symbolic of the 5 areas of endeavor engaged in by the nine (9) associations comprising AdBoard; advertiser, advertising agency, media, advertising services sector and the consumer sector. The 5 elements are shown as adjacent circles, which symbolize unity and harmony. They appear to be in motion which depicts vitality and dynamism. The background is a deep blue field which symbolizes social consciousness and service to country. First Published, September 1975 Revised, June 1979 Revised, January 1984 Revised, March 1987 Revised, October 1990 Revised, 1996 Revised, March 2000 C:\Cris-Temp_file\ACRC-2006\Code of Ethics\ACRC Code & Manual.doc 1 PREFACE The need for an alternative democratic system of self-regulation in the advertising industry became apparent in the early 1970s when the Marcos administration sought to impose controls on media use, including on advertising, through the Mass Media Council. Through the efforts of advertising industry leaders, the Mass Media Council eventually gave way to a Council of Advertising, Public Relations, Research and Sales Promotion chaired by respected advertising practitioner Francisco Floro. This Advertising Council, in turn, created a sub-committee composed of representatives from the Association of Philippine Advertising Agencies, the Cinema Advertising Association of the Philippines, Kapisanan ng mga Brodkaster sa Pilipinas, Lapian ng mga Adbertaysing Praktisyoners na Pilipino sa Ikauunlad ng Sambayanan, the...
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...State of the Industry The beverage industry is a large part of the U.S. economy representing $354.2B in sales. Of this market, approximately 60% of sales come from alcoholic beverages, with beer making up 49% of this and the remainder going to liquor (37%), and wine (15%). Despite the strong market share for beer in the U.S., sales are sliding. Since 1999, the market share for beer has decreased from 56% to below 50%. Wine sales have been flat, so consumers are beginning to switch from drinking beer to drinking liquor. There appears to be a general shift in preference among consumers to prefer other types of alcoholic beverages to beer. In addition to losing sales to a different beverage option, Budweiser is losing market share in the U.S. beer market. At its peak in 1988, Budweiser sold 50 million barrels. In 2013, consumption was down to 16 million barrels and market share had decreased from 14.4% to 7.6% in ten years. Part of this is due to cannibalization of sales from other Budweiser products, such as Bud Light. This shows a macro change in consumer preferences, favoring options with fewer calories to help combat weight-gain. Another big reason for the decrease in sales is due to consumers switching to the craft beer market. In 2015 sales for craft breweries were estimated at 24.5 million barrels (a 13% increase since 2014) and dollar-sales were just over $22 billion (a 16% increase from 2014). These sales have given the craft brewery industry a 21% share of the beer...
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