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Overview of the Industry
Nowadays, the demand for various products of the alcoholic beverage industry has been dramatically increased. Still, such conclusions are made not because of the fact that people start drinking more. Such changes are caused by the possibilities of people to choose drinks in regards to their incomes, health, and personal tastes. This industry includes providers, producers, wholesalers, distributors, operators, and other stakeholders, who make spirits available to ordinary people (Jernigan 6). During different epochs, people faced a number of problems proving the importance or threats of this industry because some people could not understand the needs of legalized spirits consumption, and more people wanted to earn on the production and distribution of various alcoholic beverages.
Industry Analysis over Five Years
During the last five years, total alcoholic beverage sales have been raised in the United States. In 2010, the numbers were about $188 billion, and in 2015, the numbers were high than $200 billion. The changes in the industry are evident indeed. People start paying attention to such issues as self-regulation effectiveness, responsibility, or even manipulation (Savell, Fooks, and Gilmore 19). In the United States, the beverage industry continues growing: more than 60% of all revenues in the industry are made of the revenues of alcoholic beverages (Park Street par. 1). Such numbers prove the fact that more companies want to be involved in this industry in order to introduce tasty, safe, and effective alcoholic production. Competition in this industry is an ordinary affair. Many companies try to prove their worth and effectiveness by choosing various methods and approaches.
Marketing and Competitive Strategies of Beam Suntory and Diageo
Beam Suntory is an American leading manufacturer of spirits that stir the world (Beam Suntory About par. 1). In 1795, its founder, Jacob Beam, sold his first barrel of whiskey (Beam Suntory History 1). Nowadays, it is a huge company with its vision to outperform the market with a powerful marketing strategy (Beam Suntory Leadership Team par. 1).The strategy that has been using by the company’s leaders during the last decades is based on three main issues such as the creation of famous brands, the building of winning markets, and the fuel of organizational growth. Such a strategy continues working until people comprehend their duties and responsibilities. Besides, the company’s culture is perfectly-identified in order to encourage creative thinking and innovative solutions and develop entrepreneurial skills that motivate people and underline a kind of common mindset (Beam Suntory Leadership Team par. 3).
Diageo is a famous alcoholic beverage company in the United Kingdom. It focuses on the production and distribution of such products as vodka, whiskey, stout, and other beverages famous in Scotland, England, and Italy. More than 33,000 people work in the company to meet the same goal that is the celebration of life every day and everywhere (Diageo par. 1). The strategy of the company is to promote the professional and personal development of each employee in the company.
The strategies of both companies are similar. Still, the main difference is that Beam Suntory is focused on motivation that plays a crucial role for its people, and Diageo wants to encourage its people and create the opportunities under which the best products could be distributed. Both companies also pay attention to their consumers. Still, the attention to employees and the quality of their work turn out to be the most integral issues for both companies in the alcoholic industry.
Beam Suntory. n.d. About. n.d. Web.
History. n.d. Web.
Leadership Team. n.d. Web.
Diageo. n.d. Our People. n.d. Web.
Jernigan, David H. “The Global Alcohol Industry: An Overview.” Addiction 104. 1 (2009): 6-12.
Park Street. n.d. US Alcoholic Beverage Market – Overview. n.d. Web.
Savell, Emily, Gary Fooks, and Anna B. Gilmore. “How Does the Alcohol Industry Attempt to Influence Marketing Regulations? A Systematic Review.” Addiction 111.1 (2016): 18-32.