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‘Consider, analyse, and evidence the relationship between factors that are part of a business organisation’s external environment and it’s non price decisions.’
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‘The marketing mix consists of everything the firm can do to influence the demand for the product.’ This is broken down into 4 components, (3 of which I am to consider in this study) known as the 4 ps; Product Place Promotion And Price. In this assignment we will be looking at how the external environment effects the non-price decisions. My chosen product is experienced in most of our day today lives. Whether it be ourselves consuming it or we watch an advert, pass a pub, or even go to a football game, it’s everywhere, we are even aware of it at a very young age, when we are unable to consume it even!! It appears at almost every social activity, and is even used within religious ceremonies. We are told it is good for us in moderation, but bad when abused. The product I shall be looking at is alcohol; Alcohol is consumed daily, in fact more than 10 billion units of alcohol are consumed in the UK each year. The retail market for alcohol is valued at £6.4 bn. The consumption of different types vary throughout the year, however beer and lager consumption is relatively consistent throughout the year. Lagers have overtook the domestic dark beers during the 90s, and now take more than 50% of the UK market. (keynote report; Breweries and the Beer Market 2001) For drinking levels of the adult population in the UK see fig 9 appendix. Product The UKs largest brewers were Bass and Whitbread. However ‘they recently put their brewing interests up for sale to concentrate on leisure activities and hotels.’ (see fig 1. in appendix) Bass and Whitbread were brought by brewing giant Interbrew, who are based in Brussels and are one of the oldest beer companies in the world. They like to be known as ‘the worlds local brewer’, and their strength is their brand portfolio. Stella Artois is the largest and most premium brand in the portfolio of Interbrew. And is the brand I will primarily be looking at in this report. Interbrew aim to use their ‘local marketing expertise as a vehicle to accelerate growth of their international flagship brand, Stella Artois, in selected markets around the world.’ Stella is a classic European lager, which is bottom fermented blond pils. Alcohol content is 5.2% ABV. Stella Artois is currently marketed in 16 countries, and is ‘continuing to roll out into additional markets.’ Sales volumes of Stella have grown ‘at a compound annual growth rate of 8% from 1990 to 1998 and at a rate of 16% in 1999 and 22% in the first half of 2000.’ (www.interbrew.com) Stella has become a favourite worldwide and has been one of the most popular brands by sales both over the Christmas and summer periods in the Uk. (see fig 6. appendix) Promotion Recently public opinion regarding the portrayal of larger drinkers has forced a change in the way lager is promoted. Interbrew a brewing giant ‘has lambasted UK brewers for pursuing advertising that reinforces stereotypes of beer drinkers as session-drinking lager louts.’ they also warned that if advertisers persist the nations favourite tipple will be taken over by wine in the nest ten years.
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