Abstract
This research is about the beer market in Vancouver and the strategies that can be used to strengthen the industry. Marketing of beer in Vancouver has been experiencing major challenges and new entrants are finding it difficult to survive in the market.
Existing breweries are experiencing financial difficulties due to the competition from local brews and imports, which are reducing their profit margins. This research has shown how the competitive nature of the beer market in Vancouver has affected the entire economy. The paper also shows consumers behaviours concerning purchasing beer.
The research has recommended a number of benefits of restring the number of players in the beer market as well as the impacts of high supply of the same. The decision making process has also been discussed in the paper to show what informs consumers decision while purchasing beer. The research methods and the limitations of this research have also been given at the end on the paper giving a clear picture of what the research entailed.
The Marketing Communication Factors of the Decision Made By the Consumers to Purchase Beer in Bangkok
It is believed that beer was the earliest alcoholic drink to be developed by humans. Historians assert that humans’ liking for the drink played a major role in encouraging them to adopt agrarian farming from hunting and gathering society. The history of beer drinking in Vancouver goes back to the 19th century.
Since the inception of the first bars, beer market in the region has undergone many changes. To understand the beer market in Vancouver, several areas of consumer behaviour and communication theory have to be evaluated (Babbie, 2013). The buying decision begins when a consumer recognizes that there is a need he or she is supposed to fulfill (Masterman, 2006). Thereafter, the customer kicks off information seek out. After enough information is gathered, the consumer evaluates the available alternatives (Pickton, 2001).
This research tries to identify the communication factors of the decisions made by the consumers to purchase beer in downtown Vancouver. To achieve its goals, the research will interview several beer drinkers, marketers, and brewers in the area. Similarly, bar owners and hotel owners will be interviewed.
The above results will be evaluated to identify the communication factors affecting drinkers’ choices. Through this study, I will comprehensively cover on the areas unaddressed by the previous researches. Equally, the paper will investigate whether the absence of substantial statistics is to be blamed for the slow implementation of marketing strategies aimed at introducing new beer brands in the region.
Problem Statement
During my research, issues related to privacy and confidentiality will arise. In my research process, beer drinkers may shy away from being interviewed. On the other hand, some beer drinkers will provide the researcher with misleading information. The research aims to address the above challenges with the help of professional researchers.
Purpose Statement
Through this study, the research will improve and broaden the existing theoretical perspectives on factors affecting the beer market in Vancouver. It will seek to highlight on how these factors can be enhanced by beer producers to increase their sales in the region. Similarly, the research will present important insights and indicators for beer marketers and bar owners about dynamic drink markets.
As stated above, the information collected through this research will be of interest to the researcher, beer and wine brewers, bar and hotel owners, and relevant revenue collection authorities. Through the study, bar owners will be able to identify and increase the stock of beers preferred by their customers. Since the federal and the local governments are interested in increasing their revenues from service and hospitality industries, through taxes, the government might have an interest in the outcomes obtained in this case study (Swinnen, 2011).
Research Objectives
In general, the researcher will be able to achieve the objectives mentioned below. To identify beer drinking habits in Vancouver. To identify factors that affect beer marketing in Vancouver. To identify how these factors can be improved to benefit the beer brewers. To identify how these factors can be improved to benefit hotel and bar owners.
Research Questions
In every research, research questions guide the researcher in processing and addressing variables of interests (Belch, 2001). For this research, the following research questions will be used. What are the decisions made by residents before purchasing beer in Vancouver? What are the factors affecting beer marketing in Vancouver? What are the benefits of enhancing or reducing these factors? What can be done to improve beer marketing in Vancouver? What are the brewers’ roles in enhancing beer marketing?
Literature review
What are the decisions made by residents before purchasing beer in Vancouver
According to Flavelle (2008), the local beer industry in Vancouver has grown and citizens have the opportunity to choose from a variety of decent beers. The author seems to allude that the ease in purchasing a bottle of beer is one of the greatest reasons why an average resident in Vancouver would consider a particular beer and give up another (Flavelle, 2008). The simple way of placing an order through the internet has been one of the greatest reasons why most of the residents in Vancouver can decide to purchase a beer.
Many liquor stores in Vancouver have the online ordering systems and they offer home delivery services (Flavelle, 2008). This creates an easy way for the consumers to purchase and receive their products at their convenience.
They are so used to this system that it has become part of their basis when making a decision to buy a bottle of bear. In Vancouver, marketing of beer is based on delivery services, which forms the basis of consumers’ behaviour and attitudes towards such products (Flavelle, 2008). According to his article, the author shows that the market is infiltrated with a number of varieties.
Factors affecting the beer market in Vancouver
The beer market was established even before the confederation and it has grown into a very big industry that produces a variety of products. The Canadian beer market is estimated to produce an average of 21.9 hectolitres in a year, which is an indication of the demand for alcoholic drinks (Euromonitorinternational, 2012). However, the beer industry in Vancouver faces a number of challenges including barriers in international trade and the ever-growing competitive nature of the industry.
So many players are dealing with similar products hence creating a marketing challenge (Euromonitorinternational, 2012). The market has expanded to accommodate local brews, which have brought a major challenge to the nationally renowned brands. Natives will prefer their local brews at the expense of the national brands hence creating a very competitive environment (Euromonitorinternational, 2012). Statics show that there has been a decline in the nationally brewed alcoholic beverages.
On the contrary, the local brews have greatly gained popularity and consumers prefer their regional favourites than the national brews. The local brews have affected the beer market by creating an unhealthy competition considering that these brews trade at very low prices compared to the regular national brews (Euromonitorinternational, 2012). Another challenge arising in the beer market is the increase in affluence among the Vancouver residents. The use of beer is slowly being overtaken by the consumption of wine.
Benefits of reducing and these factors
Competition is one of the best price controls that an industry can be subjected to (Buzz, 2013). With the rise in competing products, the prices of beers will decrease and will be affordable to everyone willing to buy (Buzz, 2013). There are economic and social implications when the use of beer is very rampant in a nation. With the lowest prices, the use of beer in Vancouver will be so high that it might compromise the quality of the entire labor force (Buzz, 2013).
A drunken labor force will definitely affect the economic productivity of the country. Therefore, the level of competition should be reduced in order to reduce the impact of supply on the prices of alcoholic products. If the price of beer decreases due to the rise in competition and supply, the consumption will consequently increase (Buzz, 2013).
How to improve the beer market in Vancouver
In the beer market in Vancouver, several factors inhibit the potential for the players to market their products as well as inhibiting newcomers from getting into the market. The greatest contributing factor in the market is the increased competition (Opurite, 2013). The competition is so high such that making profits in the industry has become so hard. The profit margins made by the majority of brewers in the industry do not match the expense or the production cost, which means companies are making losses.
The only way to counter this problem is to increase the output and expand the niche of distribution. However, only companies that have enough capital can be able to do that while the small and local brewers are left out due to lack of capital for such an undertaking (Opurite, 2013). The rising competition is also influenced by lower priced alcoholic imports that have infiltrated the market. The government must find a way to restrict the entry of cheap beer into the country so that they can counter their competitive effects (Opurite, 2013).
Alternatively, amalgamation with other foreign brewing companies can help improve the presence of the beer industry locally as well as internationally. The struggling companies that may lack the capital to expand or have a massive production should consider an acquisition. This has been happening in the Canadian brewing industry but the government may need to adjust some of its policies regarding the trade (Opurite, 2013). The Canadian citizens are closely attached to their traditions.
Brewers’ roles in enhancing beer marketing
The brewers have a great role to play in beer marketing in Vancouver. The greatest responsibility that brewers have in the market is to ensure that the quality of their products equals the value of their prices (Agriculture and Agri-Food Canada, 2012). Brewers must ensure that they produce quality products to enhance the image of the company and to attract loyal consumers. Quality products are very effective in improving the image of a company, hence increasing its total sales (Agriculture and Agri-Food Canada, 2012).
The basic intention of marketing is to increase sales and by improving the quality of brews, this can be achieved. Brewers are also responsible for inventing new products to keep the market refreshed. They are also responsible for designing packaging and assigning friendly prices to entice the consumers to purchase their products (Agriculture and Agri-Food Canada, 2012).
Research methodology
This research was done through a qualitative analysis of the brewing industry in Vancouver and it has employed the use of secondary sources. The data used in this research has been observed rather than measured. The research has used five articles dealing with the beer market in Canada and has critically examined the quality of beer and beer marketing in the industry (John, 2013).
Limitations
The research has had a challenge due to the limited information given by the players in the market. There is limited information with regard to the prevalence of the consumption of local brews in the market. Collecting the information was a challenge because there was limited information that could explicitly enhance a complete scrutiny of the market in Vancouver.
Deliverables
The rise in demand for specialized products has seen the market take a paradigm shift as the consumption of brews has greatly shifted. The decrease in demand for beer in the past five years has forced brewers to reduce their products’ prices. This is accompanied by the extra cost of improving the quality of their products to outdo the competition (John, 2013). This is a challenge since the production cost goes up while the price of the products drops hence creating an imbalance in profitability in the industry (Shaw, 2008).
References
Babbie, E. (2013). The Practice of Social Research (13th Edition). Belmont, CA: Wadsworth.
Belch, G. E. (2001). Advertising and promotion: an integrated marketing communications perspective. Boston, Mass.: Irwin/McGraw-Hill.
Buzz, V. (2013). Mega CRAFT Beer Market opens at Salt Building next summer. Web.
Euromonitorinternational: Alcohol Drink. (2012). Web.
Flavelle, D. (2008). Why your beer costs more. Web.
John, J. (2013). Become a better beer drinker by using your memory. Web.
Masterman, G. (2006). Innovative marketing communications for events management. London: Elsevier Butterworth-Heinemann.
Opurite: Purite RO technology enhances quality and cuts costs for Meantime Brewing. (2013). Web.
Pickton, D. (2001). Integrated marketing communications. Harlow: Financial Times Prentice Hall.
Shaw, H. (2008). How ‘hot emotions’ saved Molson Canadian. Web.
Swinnen, J. F. (2011). The economics of beer. Oxford: Oxford University Press.