...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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...Even so, the Angostura Group managed an after-tax profit of $371 million in 2010.The marketing tools employed by Angostura Ltd has led them to regain profitability in the local market (see Appendix 1). The financial crisis that ravaged them in recent years was not only the result of their parent company but also outside influences that hampered on their performance (see Appendix 2). 1.1 Competitor’s Analysis The two (2) primary local competitors in Trinidad and Tobago regarding the distribution of alcohol are AS Bryden& Sons Limited and Alston’s Marketing Company Limited (AMCO). They have feverishly pursued in obtaining the local target market with imported premium spirits that embodies recognition globally. Alston’s Marketing Company Limited (AMCO) Price is based on Product Line Pricing, Competitive Pricing and also Premium Pricing because of the premium spirits they offer to their consumers. Import tax and duties are major contributors in determining final pricing. AMCO’s main distributing center is located in Chaguanas, Trinidad and Tobago. The company maintains Fast Moving Consumer Goods (FMCG) and are physically distributed through their distribution channels to its buyers. There are four (4) main trading divisions which are Pharmaceutical and Cosmetics, Wines and Spirits, Food service and Cold chain (see Appendix 3). Their main promotional strategies include giveaways, discounts, free samples, ‘buy one get one free’...
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...imposed price floor that must be set above the market equilibrium to have any effect. In most cases, the reason for setting a price floor is to ensure that suppliers receive a price that is considered fair, but in the case of alcohol the intentions are different. The setting of a minimum price would in fact be to solve the market failure of demerit goods – where too much of a product is consumed because of information failure in the economy. In Figure 1.0, the effects of a minimum price setting can be seen on a diagram. If the price is set at P2, there will be excess supply equal to Q3-Q1. This is because the above equilibrium price causes demand to contract and supply to expand. If an ideal world consisted of nobody binge drinking, a minimum price setting would certainly go some way to delivering such perfection, as is seen by the contraction of demand in Figure 1.0. However, the stopping of excessive consumption could not be guaranteed, as consumer behaviour is not always accurately portrayed by the theoretical model that is a demand and supply diagram. Tim Martin, founder of JD Weatherspoon raised a point to consider when being interviewed by the BBC on the topic. He suggested that consumers would be more than willing to go abroad to binge on alcohol in a country where a minimum price is not in place. This raises just one example of a floor in Figure 1.0. The theory behind the diagram presumes that consumers are restricted to a domestic market where the minimum price is in...
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...1. Price: Setting prices involves considering many factors, including the cost of food, cost of labor, what the competition is doing and what your target customers are willing to pay. Pricing is the only part of the marketing mix which brings in revenue. -Once a price has been set, consumers will often show a great deal of resistance to any attempts to change it. - Pricing frequently has important implications for the positioning of a product. - Price is the marketing mix variable for which a competitive response can be most quickly implemented. Comparing your menu with that of your competitors also helps. It not only opens more doors towards pricing your menu, it offers you a solid foundation on how to measure your profits. Performing a cross analysis helps uncover strengths and weaknesses in your pricing plan, specifically in terms of the way your items are priced and presented. By doing this, you determine which items are most popular, which are most profitable, which need extra publicity, and which need to removed or replaced. 2. Personal Health :The restaurant must have substitutes to replace those ingredients that might cause allergies or customer requests that chefs exclude them in food preparation. Religious restrictions, dietary demands, personal choices, special diets, and allergies cause people to ask for special cooking measures. Chefs learn to offer some regular meals that meet many restrictive needs or to change traditional preparations with substitute ingredients...
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...16, 2000 ALCOHOL Philip J. Cook and Michael J. Moore Duke University and NBER Prepared for the Handbook of Health Economics, Joseph P. Newhouse and Anthony Culyer, editors. Thanks to Michael Grossman, Will Manning, and Harri Sintonen for their very helpful comments. All errors remain the authors’. Abstract Excess drinking is associated with lost productivity, accidents, disability, early death, crime, neglect of family responsibilities, and personality deterioration. These and related concerns have justified special restrictions on alcoholic-beverage commerce and consumption. The nature and extent of government involvement in this arena vary widely over time and place, and are often controversial. Economists have contributed to the evaluation of alcohol policy through empirical work on the effects of alcohol-control measures on consumption and its consequences. Economics has also provided an accounting framework for defining and comparing costs and benefits of interventions, including excise taxes. Outside of the policy arena, economists have analyzed alcohol consumption in the context of stretching the standard model of consumer choice to include intertemporal effects and social influence. Nonetheless, perhaps the most important contribution by economists has been the repeated demonstration that there is nothing unusual about alcohol in at least one essential respect: consumers drink less ethanol (and have fewer alcohol-related problems) when alcohol-beverage prices...
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...1°) How would you explain the Guinness pricing strategy and the underlying assumptions about consumer behavior when Diageo reports for 2005 that in the UK and Ireland the Guinness sales volume fell by 3 per cent, but a value growth of 4 per cent was achieved in both markets, mainly due to price increases? 2°) Motivated by the success of this pricing strategy, should Diageo continue to increase the price of Guinness? HOW TO EXPLAIN GUINNESS PRICING STRATEGY ? - Pricing: Not just a financial and commercialization part => belongs to marketing and sales strategy - Pricing affects : - sales - market share - revenue - profit => Right pricing : a direct implication to the product success in the market => The product needs to remain PROFITABLE Pricing strategy needs to reach the main objectives of a company : PROFIT – TURNOVER – VOLUME - MARKETSHARE -Price sensitivity of shoppers differs between the distribution channels Discount hypermarket : people check carefully to buy a beer-pack Bars / Pubs : ready to pay much more for a beer than in the grocery -3 Ways to determine a price : - cost pricing : based on the company expenses - competitor pricing : based on the competitors prices - value pricing : how the product is perceived by the customer ? An aggressive price increase policy - A National icon : recognized worldwide •55% of the world stout market •Market leader in 4/7 regions : •Western Europe / North...
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...Executive Summary Chanel No.5 is one of the most popular perfume products on the market. The Chanel N5 has a constant mission to accomplish in satisfying it customers as well as the laws. It is crucial to keep a reasonable price and maintain high quality of the perfume product. Correspondingly, whenever the cost of the product decreases, it means the quality of the product lessens, and luxury product becomes ordinary. "The word perfume derives from the Latin perfumare, meaning to smoke through. Perfume is a mixture of fragrant essential oils or aroma compounds, fixatives and solvents used to give the human body a pleasant scent “(Wikipedia). Chanel N5 is one of the most popular out of the company perfumes. It dominates the market since early 1920 the reason for marketing that products changed dramatically over the years. Chanel No 5 is one of the most popular scents made by Chanel, and it wins over scents form competitors for many reasons. Because Chanel no 5 is one of the oldest perfumes, the marketing strategy for this product has to meets expectations of the consumers. Target Market The consumer demographic segmentation for perfume business includes wealthy individuals mainly woman in their late thirties and older. Perfumes tend to cost much more than any other fragrances. Therefore, not everyone can afford it. The customer driven, and increase in perfumes market is affected by demographic lifestyle. Some people use perfumes for special occasions and others wear it regularly...
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...separating the elements of essential oil to create synthetic chemicals and drugs. Toward the end of the of the 20th century and on into the 21st century, there is a resurgence to utilize more natural products including essential oils for therapeutic, cosmetic and aromatic benefit. The use of essential oils never stopped; the awareness regarding the use of synthetics and the increased amount of information on aromatherapy through the internet has refueled the use of essential oils for health, therapeutic, cosmetic, fragrant and spiritual use. Trader Joe’s wants to reintroduce the body oil spray. Consumers can choose between a lavender or seaweed scent. The main ingredients for the oil include: safflower, seed oil, sweet almond oil, SD Alcohol 40, sesame oil, St, John Wort flower extract, avocado oil, and wheat germ oil. The oils are bottled in a 6oz rectangular spray bottle. The bottles include drawings of lavender flowers and seaweed to differentiate the two products. The greatest attributes for the oil is the subtle, clean and fresh scent. The oil has all the quality of expensive body oil, and only cost $3.49 per bottle. The oil is a great moisturizer for those who spend a lot of time outdoor or live close to the beach. It sinks in well on slightly damp skin, has a soft feel after drying and does not leave a greasy or oily feeling. The oil does not leave a glistening or glowing sheen which is a...
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...I will choose to open up an upscale casual restaurant. This is because they serve moderately-priced food that will be pocket friendly to both middle and high income earning individuals hence a larger client base. The casual-dining restaurant will offer a full table-serving menu that comprises of most traditional food such as sandwiches and hamburgers. A bar will also be part of the restaurant to offer alcohol to those who need it alongside the served food. To ensure that my clientele get value for their money, I will make sure that they get the desired and right taste of food. This will be achieved by ensuring that the food served to clients is well prepared by well-trained personnel and high quality ingredients used. I will also offer healthier food options and lure clients towards preferring them by availing the food’s nutritional value information to them. This will play part in engaging the clients in future. Clients are always very sensitive to the way they are handled more especially in restaurant business. Therefore, I will make them feel valued customers by ensuring that they are treated well by my employees. This will be achieved by making sure that the employees understand that the customers always comes first and therefore they should always come up with imaginative ways to wow the clients when they serve them. Employees will have to deliver positive, memorable and engaging dining experience. I will also ensure that I have the right team to work with who value...
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...Executive Summary Dionysus Limited is a privately owned manufacturer of the Caribbean’s largest spirit brand since 1761. Founded in Italia by partners, Sir Adriano Frazaro, Count Kentus Colmanus and Duke Marius Campden of Wilshire, England, Dionysus is the number one producer of spirits both locally and abroad. Since 1947, Dionysus Limited has increased its production and now distributes in13 countries across the world. Dionysus offers over twelve ranges of spirits. Each Dionysus bottle is stamped with its seal of approval, backed by its creed, Fornire spiriti superiori ai nostril clienti di qualitá superiore, providing superior spirits to superior customers. Dionysus Limited strives to find new and improved ways to provide the best service and cutting edge innovations. Dionysus Limited values its customers and their needs, and thus will continue to indulge their desire for a smooth, exquisite spirits. Dionysus introduces its new product, the Dionysus Rum Cream, a smooth, creamy, bold new taste offered in various sizes. The introduction of this product will result in an expected increase of $6,300,000 in the sales of the company per year for the next six years. Dionysus Limited aims at targeting individuals, consisting of men and women ages 21 and over that desires the finest Rum Cream with a superior taste. Based on market research, Dionysus forecast’s that within the next year it will have new and innovated advertisement campaigns, a more efficient inventory...
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...Broadly speaking, in order to maximise profits, different firms use distinct tools to perform strategy and decisions, such as SWOT analysis, PESTEL analysis and marketing mix analysis. In terms of the marketing mix, as an important concept in the subject of business studies, it refers to “a balance between the four main elements of marketing [is] needed to carry out the marketing strategy. It consists of the ‘4ps’: product, price, promotion and place” (Marcousé and Surridge et al., 2011:141). Firms can build an effective marketing strategy by using the marketing mix as a tool, and it is possible that business will fail if the marketing mix is not correct. The aim of the essay is to analyse elements of the marketing mix. Initially, it will discuss four elements, which are the product, price, place and promotion respectively. Then, it will evaluate the most vital component in the marketing mix, which is the product. The first component of the marketing mix is the product. “A product is a good or service produced by a business or organization, and made available to the public for consumption” (Ashwin and Merrills et al., 2008). Each product has a different feature, which could be the unique selling points of them. Roams and Cota (2008:152) attempt to define this term is, “A unique selling point (USP) is a short statement that explains why a customer should buy from you instead of your competitorsin". For example, Apple Corporation has a unique and independent operation...
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...The term "marketing mix" became popular after Neil H. Borden published his article The Concepts of the Marketing Mix in 1964. In this article Borden explains how he first began using this term in the late 1940's after James Culliton described the marketikng manager as a "mix of ingredients". These ingredients in Borden's teachings included product, planning, price, branding, distribution channels, personal selling, advertising, promotions, packaging, display, servicing, physical handling, and fact finding analysis. These ingredients were later grouped by E. Jerome McCarthy into four categories which we now refer to as the four p's of marketing (NetMBA 2007). The four p's of marketing make up the marketing mix which is probably the most well known of all the marketing terms. "Its elements are the basic, tactical components of a marketing plan. The four p's, of the marketing mix elements are product, place, promotion and price" (Marketing teacher 2009). These four elements create the marketing mix which impacts the development of any organization's marketing strategies and tactics. The concept is simple. Think about a cake and the components of a cake. There are certain ingredients that are required but one can alter how much of each ingredient is added. The same goes with marketing. The four p's are required but depending on the organization there may be more emphasis on one and less on another. But one thing remains the same, all four p's are necessary. "The majority of people...
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...experiences of the consumers and is a perfect pairing with Indian gourmet cuisine. We are confident of an encouraging response from the consumers,” Jones added. SABMiller India, the second largest brewer in the country and the Indian arm of the world’s second largest brewer SABMiller PLC entered the Indian market in the year 2000 by acquiring Narang breweries and has since acquired several breweries and brands. The most notable being its acquisition, in June 2001, of Mysore Breweries (with its Knock Out brand) and in May 2003 of Shaw Wallace’s beer brands (Royal Challenge & Haywards). Indus Pride was first launched in 2008 in Rajasthan and rolled out across Karnataka thereafter. The company decided to go for a mainstream offering of alcohol free 100% malt beer, which was lesser relevant to the Indian consumer at that time. In 2012, SABMiller has rejigged its local innovation Indus Pride by brewing...
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...PRICING OF A PRODUCT (COCA COLA) Third Semester- Project 1 Submitted by: BACHELOR OF BUSINESS ADMINISTRATION (Working Professional) Department of Business Administration January 2015 Acknowledgement I feel deeply indebted towards people who have guided me in this project. It would have not been possible to make such an extensive report without the help, guidance and inputs from them. Most of my information has been from the net by reading a lot about Pricing of a product in marketing & how Coca Cola Company maintains their market through an appropriate pricing strategy and also from professional books of marketing. I also would like to thank Mr. Sunil for giving us such a nice opportunity and freedom to choose a topic we like and to work in it. Abstract The basic objective of my research was to analyze the awareness among customers about the price of a product all over the world. Price even describes the standard a company maintains in its product quality and how they work towards achieving their customer’s satisfaction. As I specially concentrated on Coca Cola Company, the findings reveal that people know a lot about the company’s products, its price & they are completely satisfied with the quality they maintain in soft drinks market. In the highly competitive world of the soft drink industry, the Coca Cola Company stands out as one of the top competitors Table of Contents S. No. | Topic | Pg.No. | 1. | Introduction | | 2. | Factors...
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...Retail Right Retail Right marketing strategy report A Blueprint to Baker’s Heaven Prepared by Adam Stone For Baxter Bakeries 23 Flinders Lane Brighton SA 5048 Australia 31/01/2015 Executive Summary Baxter Bakeries are a small business situated in the suburb of Brighton which is in the city of Adelaide and currently has a population of 14,907 people (ABS 2014). The suburb of Brighton is only ten minutes from Glenelg which is a popular tourist spot in Adelaide, and has over 50% of its population with people over the age of 45 (ABS 2014). Currently Baxter Bakeries is owned and operated by James Baxter who is an experienced pastry chef, with years of experience in making exotic and delicious pastries. James and his small team have a vision of delivering an experience to customers that not only creates a moment, but a lasting memory for the consumer. In order for James and his team at Baxter Bakeries to be able to achieve this outcome a competitive marketing strategy must be formed to ensure that this goal can be fulfilled in the near future. In order to create a competitive marketing strategy one must look at all the aspects that make up a market starting with the analysis of the market that Baxter Bakeries want to enter. In this analysis we will look at everything that could influence or create challenges for James and his team, including the buyer behaviour, microenvironment, and the macroenvironment. The purpose of looking at the buyer behaviour is that...
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