The Beer Market in Spain Essay Example

The Beer Market in Spain Essay Group 6- Jennifer, Priya, Ricky and Barbara Beer market in Spain 1. Environmental Analysis: Porter’s 5 Forces: Buyer Power: Buyer power is relatively strong in the beer industry. The recent financial crisis showed us that buyers are price sensitive. Also, the presence of many different brands and products give buyers a lot of choice. Therefore, sellers must differentiate their products or offer very competitive prices to remain profitable. Supplier Power: Beer is made from malt, hops, water and yeast. These ingredients are relatively commoditised and are readily available . There are many suppliers offering generic products. Suppliers have relatively little bargaining power. Threat from new entrants/ Barriers to entry: The initial investment in beer production is large as plants and production technology are complex and take time to establish. Furthermore, establishing a brand identity and establishing relationships with retail outlets is time consuming and can be difficult. Because of the presence of a few market dominating firms, threat from new start-ups is small, except in niche markets. Therefore we can conclude that barriers to entry are moderate. Substitutes: The alcoholic beverage found to be the closest substitute to beer available on the market is cider. The cider industry is growing rapidly and it is becoming an increasingly popular choice among beer drinkers. Rivalry: The market leader in beer sales is Heineken, which holds 32% total volume share in 2010 (Euromonitor International, April 2011, page 3). This closely followed by Mahou with 30% total volume share. In this respect, the beer industry is not particularly competitive. However, amongst smaller brands competing for niche market share, there is fierce competition. . Who, What, How analysis: Functions or needs: Thirst, social needs, relaxation (WHAT) Customer Groups: (WHO) Teens adults Students, friends, families retirees Product varieties / Technologies: Premium Lager Beer, Standard Lager Beer, Non-alcoholic Beer, Light Beer (HOW) 3. Identification of key trends: Beer sales were affected by the 2008/09 financial crisis. Consumers decreased spending on going out and other leisure activities. Therefore on trade (drinking when out) fell by 7% in 2010 and off trade (staying in and drinking) rose by 1%. We will write a custom essay sample on The Beer Market in Spain specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on The Beer Market in Spain specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on The Beer Market in Spain specifically for you FOR ONLY $16.38 $13.9/page Hire Writer This follows the growing trend to stay in and socialise rather than going out to bars etc. The increase in price sensitivity of consumers has also contributed to an increase in supermarket and hypermarket market share for beer sales. Many Supermarkets and Hypermarkets have created their own beer labels that they offer at a discounted price to take advantage of this increased price sensitivity. However, the majority of sales are still ‘on trade’, due to the Mediterranean climate and the Spanish culture of going out for a drink, especially during the warmer months. Furthermore, 30% of beer sales in Spain are made by tourists. Beer sales levels are extremely sensitive to fluctuations in tourism. The economic crisis caused a decrease in the tourism industry, and thus in beer sales. In the south of Spain, lighter beers are more popular while in the North heavier beers with more body are more popular. Beer consumption in general is also strongly linked to the season, with more beer being consumed in warmer months. In 2010, the only beer product to achieve a total increase in sales growth was non-alcoholic beer. This could be the effect of an increase in health awareness and/or a reaction to stricter driving restrictions. Finally, the economic downturn has caused an increased demand for 330ml and 500ml canned beer relative to the traditional 330ml bottled variety. 4. Competition Analysis: Heineken is the market leader in beer sales, with 32% total volume sales in 2010. Second is Mahou, with 30%. However, in 2010, Heineken’s strategy to focus on premium lagers caused it to lose share, while Mahou’s standard lager and promotions focus caused them to gain market share. In third is Damm (Estrella, Voll, Xibeca Damm) with 12%. A large number of smaller labels share the remaining sales volume, with many of these brands focusing on niche product markets. To combat the sharp decrease in on-trade sales, major label have increased advertising to promote going out. For example Mahou introduced the ‘Get out the home! ’ campaign, offering small bottles of San Miguel or Mahou and a tapas dish for a low price. 5. Interpretation of results We conducted an online survey consisting of both multiple choice and short answer response questions designed to provide a level of quantitative and qualitative analysis. We received 20 responses to the survey, and 90% of these respondents selected ‘student’ in answer to the question ‘what best describes you? ’. 55% of respondents were male, 45% female. The combination of small sample size and a sample heavily skewed towards the student segment means that our research has not yielded result that are representative of the target population. However, we do believe that some of our findings are valuable to our analysis of the market. The survey revealed quality to be the most important influencing factor to our sample in choosing beer (48%). Following were price (32%) and brand (20%) and there were no votes for alcohol content. This indicates that the student segment looks for a quality beer that is reasonably priced and perhaps a recognisable or appealing brand. They do not necessarily drink beer just to get drunk. Our sample did not show a preference for the major Spanish beer labels, with 75% choosing ‘other’ as their preferred beer over Estrella, San Miguel and Heineken (the market leaders). This may be linked to the high percentage of international students completing the survey who prefer their native countries’ brands. As for where and when our sample consume beer, the responses were split between home and bars for location and showed preference for weekends and with friends for when and with whom. 40% of respondents drink beer 1-2 times a week. We can interpret these responses as showing a trend towards casual, social drinking. 100% of respondents indicated that they would not purchase a non-alcoholic beer and do not consider health factors when purchasing beer. This does not support the growth in market share of non-alcoholic beers. Interestingly, 42% of respondents did indicate that light beer was their preferred variety. This could be linked to female drinkers’ preference towards lighter, sweeter beverages. Our qualitative analysis revealed a recurrent theme in word associations the respondents made with beer consumption. Phrases such as ‘chilling with friends’, ‘relaxing on the weekend’ and ‘out with friends at a bar’ were most common. This supports our quantitative analysis that beer is consumed primarily in non-formal, social situations. 6. FCB Matrix [pic] 7. Decision-making Process Buying beer substantially is a low-involvement process since beer is not a very expensive product. We usually buy a certain brand of beer, try it for the first time, make evaluation on the product, then decide whether or not to buy it in the future. The low-involvement decision-making process in fact is a learning as mentioned. We decide whether or not to repeat the purchase by learning from the buying experience. The graph below depicts the â€Å"Think-Do-Feel† theory. This diagram below is an elaborated version of the simplified model above:[pic] 8a. Segmentation Variables Possible options from our questionnaire survey: (i) occupation (full-time worker, part-time worker, student) and age (ii) consumption rate (high, medium, low) and consumption situation (home, bar, restaurant) (iii) purchase driver (brand, price, quality) and consumption companion (family, friend, alone) All these options are chosen from the questions we set for our survey. However, we finally decide to use option (ii), i. e. consumption rate and consumption situation as the segmentation variables. We eliminate option (i) and (iii) because of these reasons. For option (i), we feel that the segment with certain kind of people with certain age will be too large for us to focus on in terms of marketing strategy. Different people in the same age with similar occupation may possess different attitudes towards beer. For option (iii), purchase drivers, i. e. the purchase tactics, change over time in different situations since it is a low-involved buying activity. Therefore, it is difficult to predict the precise opportunity to do marketing for a new kind of brand, hence very difficult to target a very special target. The graph below shows the variables we use for segmentation, as well as some definitions of the variables. [pic] 8b. Various Segments Identified Below are some photos depicted the segments identified, as well as description of each segment. [pic] 7c. Segment Selected[pic] Target Light Beer Drinker based on the following reasons: i) Highest potential growth rate: can easily shift to the right to have medium usage rate, which means higher consumption of beer. That brings more revenue. (ii) Sophisticated drinkers have much experience on beer, which means that new brands like us could be eliminated easily in their consideration sets. (iii) Sophisticated drinkers could be brand-loyal to certain brands, which make it hard to make them shift to our brand. However, the column â€Å"light beer drinker† still leaves us three options . As a new company, we could like to do concentrated marketing so that we put all our effort into one single segment. Therefore, we need to decide which segment we would like to get involved from the variable â€Å"usage situation†. We decide that from our survey based on the response and from other considerations including secondary research. [pic] However, the results of â€Å"bar† and â€Å"home† occupy the same percentage. Therefore, we made our decision based on both our qualitative research and secondary research. From â€Å"What activities, emotions or adjectives do you associate with drinking beer? †most respondents associate beer with socialising with friends and relaxing at home or at a bar. However the market trend is showing a growth in home beer consumption. 7d. Positioning We have defined the position strategy for light beer using positioning maps. Since our survey depicts that most beer drinkers do so for socializing in bars, we have zeroed in on price and quality as the preferred attributes (and not necessarily variety, as youngsters feel comfortable with any light beer that has a good taste and reasonable variety). We see that Light Beer ranks moderately high on quality and low on price (only more expensive than non-alcoholic beer). Hence our product is positioned as a moderately low priced Light Beer that ranks medium to high on quality. 8. Product Concept We came up with two different product concepts: a light and cheap beer to be consumed in bars and a light cheap beer to be consumed at home. Both beers are competitive from a price point of view but the beer that has to be consumed in bars should be in a glass bottle of 330ml whilst the beer addressed to the off-trade should be a 500ml glass bottle or can to push further the price competitiveness. We decided we will further develop the off-trade beer because it is more coherent with our qualitative research results and with the market trends. Furthermore the decision to target a niche market, such as home beer consumption, is a better decision for a firm just entering the market, and therefore not ready yet to compete with established beer firms on the open market. Appendices [pic] [pic]

10 Best Romance Novels That Have Gone Underappreciated

10 Best Romance Novels That Have Gone Underappreciated 10 Best Romance Novels That Have Gone Underappreciated There are many romance novels out there. Some better than others, granted, but what makes some the best of the best? What gives them that je ne sais quoi factor we’re all craving, some of us even trying to emulate when writing a novel ourselves?I could go about this list in many different ways, but I’ve decided not to make this one a common, boring, clichà © list. No.This is not that kind of list; this will give you the best romance novels in different categories and the reasons why you’ll fall in love with them!Here are the 11 best romance novels:Slammed by Colleen HooverFangirl by Rainbow RowellThe Notebook by Nicholas SparksThe Hating Game by Sally ThorneThe Light We Lost by Jill SantopoloDance Until Dawn by Berni StevensPride and Prejudice by Jane AustenMe Before You by Jojo MoyesGone with the Wind by Margaret MitchellIt Ends with Us by Colleen HooverSimon vs The Homo Sapiens Agenda by Becky AlbertalliNOTE: Ready to write your own romance novel to be making lists like this one day? Check out our VIP Fiction Self-Publishing Program so you can make that happen. Learn more about it hereSide note: you’ll need a big box of tissues for most of these, so be sure to grab one before you dive in!Best Romance Books Per CategoryThe answer is for pulling novels from specific categories is simple: there are far too many amazing books out there to choose from and if you’re mapping out a list of the best, you’re going to miss a few important ones.Categorizing them makes sense because you’ll be able to decide for yourself which type of book you’d enjoy more.Consequently, you’ll find the best one in each category here. Once you finish it, you’ll be able to say if you enjoy that theme or not. And if not, you’re ready to jump into one of the other picks.11 Best Romance NovelsIf youre looking for a quick read for a weekend or want to learn in order to write your own book, this list can give you some i nspiration.#1 Slammed by Colleen HooverCategory: Poetry, specifically slam poetryRomance Novel Summary: Layken, an 18-year-older student meets her new neighbour, Will. Will is 21. They have an instant connection based on their similar likes, which gives Layken hope for happier days.Once their connection is deep within you and you love them, there’s a revelation that shocks them and us, and they can’t be together. The problem is, they really want to.Why You’ll Love It: If you’re not reading it because you love slam poetry, don’t worry. You’ll love slam poetry once you’re finshed! You may even want to try your hand at writing poetry afterward.I had heard a few poems before but with this book, I became totally obsessed with slam poetry. It takes the novel to a higher level and forces us readers to connect with it a lot more. It becomes personal.It’s also easy to identify ourselves with this story because it discusses topics that we’ve all had to face, including death and grief. Colleen is a brilliant writer and she just knows how to pull your strings.Quote: â€Å"Question everything. Your love, your religion, your passion. If you dont have questions, youll never find answers.†#2 Fangirl by Rainbow RowellCategory: Young Adult RomanceRomance Novel Summary: You’ll meet Cath Avery, who has a total opposite twin sister, Wren. When they both start college, Wren tells Cath she doesn’t want to be her roommate and they should live their college experience separately.Then, one day, between her awkwardness and fan-fiction stories, she meets Levi. And then everything changes. Slowly. But it changes.Why You’ll Love It:This is not only a young adult romance, not only about love. It’s also about making decisions at a young age and growth. The story is beautifully structured, and you won’t be able to put it down before you finish it.Besides having a really solid love story, you’ll also have a good laugh when diving into Rowell’s world.Quote: â€Å"In new situations, all the trickiest rules are the ones nobody bothers to explain to you. (And the ones you cant Google.)†#3 The Notebook by Nicholas SparksCategory: Greatest Love StoryRomance Novel Summary:This is the story of Noah Calhoun and Allie Nelson. It is set in North Carolina after the Second World War. Noah thinks of Allie, a girl he had met 14 years prior. And one day, she shows up in his town.Nicholas Sparks is the master of twists and turns in love stories and this one does not disappoint. This is a book of surprises that will test Noah and Allie’s love until the end.Why You’ll Love It:I mean, do I really need an explanation here? Everyone knows Nicholas Sparks and that his books are amazing and will leave you in tears!If you’ve watched the movie, read the book. If you haven’t watched the movie, read the book! It’ll break your heart in th e most beautiful possible way.Quote: â€Å"Every great love starts with a great story†#4 The Hating Game by Sally ThorneCategory: Modern RomanceRomance Novel Summary:Lucy Hutton is a nice, sweet girl; Joshua Templeman is her opposite: cold and grumpy. They meet when the publishing houses they work at merge. It’s hate at first sight.But everything changes with a kiss†¦Why You’ll Love It:Two opposites attract†¦ isn’t it just brilliant when you have a love/hate relationship in one of your books?Because this is a modern romance, the storyline is also modern, which is the reason why many, many people love this novel. It’s easy to relate with it and Lucy is like the next-door neighbor, you just adore her.And with this title, how you could NOT want to read it?Quote: â€Å"Its a corporate truth universally acknowledged that workers would rather eat rat skeletons than participate in group activities.†#5 The Light We Lost by Jill Santopolo Category: Loss and GriefRomance Novel Summary:Lucy is a senior in college at Columbia University when she meets Gabe, also a college senior. They meet on an ill-fated day that will shape their lives and the lives of those around them forever.They meet throughout the years but there’s always something in between them, there’s always something preventing them from being together.And in the end, Lucy has a very important decision to make. What will she decide to do?Why You’ll Love It:If you’ve read and love PS: I Love You by Cecelia Ahern, this book should be next on your list.I think it’s beautiful the way Santopolo deals with loss and grief, which are two themes so close and tangled with the subject of love.Even though they can be difficult to approach, the message is important and not every romance needs a stereotypical happily ever after.Quote: â€Å"Maybe it’s the act of opening yourself up, letting someone else in- or maybe it’s t he act of caring so deeply about another person that it expands your heart.†#6 Dance Until Dawn by Berni StevensCategory: Fantasy RomanceRomance Novel Summary:This is the first book in a series called â€Å"Immortals of London†. Ellie Wakefield has been saved from death by William Austen, a 300-year-old vampire.Ellie has to learn about this new world and together they face unexpected challenges.Why You’ll Love It:Who doesn’t love a good-ol’ vampire story? Add to that a little old banter, and there you have it, the perfect novel!Fantasy and romance are just like peanut butter and jelly; there’s no reason why they should go together, but they do, formidably.This book is full of mystery and Stevens has written it in a way that you just crave for more. It’s fresh, well-detailed but very easy to read.Quote: â€Å"I understand that this is rather a lot to take in,’ he said. ‘But I would appreciate it if you would stop referrin g to me as either psychotic or perverted.’ ‘Well I’d appreciate not being kidnapped and shut in this filthy hole.’ ‘Touchà ©Ã¢â‚¬â„¢.†#7 Pride and Prejudice by Jane AustenCategory: Feminism and Classic LiteratureRomance Novel Summary:The story revolves around the Bennets, a noble family that doesn’t have a lot of money because of Mr. Bennet, the father.It all starts when two single noblemen arrive to town and, as it is custom, meet the single women, because ain’t it universally acknowledged â€Å"that a single man in possession of a good fortune, must be in want of a wife†?When Elizabeth and Mr. Darcy meet, it’s not all rainbows and flowers, but would it be a real love story if it was otherwise?Why You’ll Love It:Classics are important for a reason, and that reason is mostly because they’ll teach you something about the past, which most often than not, still has some truth in the present day.Youâ€⠄¢ll love Pride and Prejudice because Jane Austen wrote it for everyone to dream about it. It’s an important story that needs to be read.Elizabeth Bennet was born way ahead of her time and she’s here to teach you a lesson in sarcasm and feminism – you just cannot not read it!Quote: â€Å"He is a gentleman, and I am a gentlemans daughter. So far we are equal.†#8 Me Before You by Jojo MoyesCategory: Illness and LossRomance Novel Summary:Louisa Clark loses her job and desperately needs to find another one. When the opportunity of taking care of Will Traynor, a young man that is wheelchair bound, knocks on her door, she doesn’t jump of happiness.It’s a slow start and their relationship doesn’t seem to evolve, but as any other love story, there are twists and surprises along the way for both Louisa and Will.Why You’ll Love It:This is a story of poor meets rich, good meets bad, but not at all as you’d expect it to be.Itâ€⠄¢s not even about these pairs at all. But you’ll connect, at first, with the main character, Louisa, because of this. She’s simple and relatable.You’ll read it in an afternoon and you’ll still be crying months later.Quote: â€Å"I will never, ever regret the things Ive done. Because most days, all you have are places in your memory that you can go to.†#9 Gone with the Wind by Margaret MitchellCategory: History, specifically the Civil WarRomance Novel Summary:Scarlett O’Hara has a hard task at hand: she’s fighting for her family’s plantation and for the love of her life – if that wasn’t enough, this is amid the Civil War.In the end, will she get it all or lose everything?Why You’ll Love It:It’s History holding hands with a love story, what more could you need?It has the charm of the south in a very troubling period of history; it’s family and love struggles. It’s one of the most popula r books ever written, and you just need to find out why!Quote: â€Å"It was better to know the worst than to wonder.†#10 It Ends with Us by Colleen HooverCategory: Abusive RelationshipsRomance Novel Summary:Lily is a determined, successful woman. She had a difficult life growing up, but she never stopped fighting for what she truly loved. She meets Ryle who has a no-dating rule, but they quickly become close.She thinks he had a difficult past too, but she can’t figure out what happened exactly. When things start changing, she’s put in a place she never wanted to be back again.â€Å"Sometimes it is the one who loves you who hurts you the most.†Why You’ll Love It:If you’re looking for strong-minded, determined women, this book is for you. Lily is written in a way that you’ll be rooting for her from page 1.It’s a book that will touch some of you deeply and will haunt you for many years after the last page was turned. A beautiful love story that has more to it.Quote: â€Å"Just because someone hurts you doesnt mean you can simply stop loving them. Its not a persons actions that hurt the most. Its the love. If there was no love attached to the action, the pain would be a little easier to bear.†#11 Simon vs. The Homo Sapiens Agenda by Becky AlbertalliCategory: LGBTQ+Romance Novel Summary:Simon is 16 and very much homosexual, however, no one knows. When his secret is about to be revealed, a series of events lead him to being blackmailed.He’ll try to navigate high school without anyone finding out his secret while not messing up his friendships nor his own life.Why You’ll Love It:This is a fun yet serious book. The characters are well-created, and the dialogues are hilarious.The topic is an extremely important one nowadays and the lack of novels about the LGBTQ+ community make this one a success.The hardships of being teenager and on top of that, one with a secret, are well played in this n ovel and you’ll easily fall in love with Simon (and Blue).Quote: â€Å"Why is straight the default? Everyone should have to declare one way or another, and it shouldnt be this big awkward thing whether youre straight, gay, bi, or whatever. Im just saying.†Romance novels are unique in many waysIf you’re looking for a happily ever after, maybe you won’t find it in all these books.However, aren’t stories closer to our reality a whole lot better? They allow us to think of our successes and failures and give us hope for a better future.If you’re looking for page-turners, refer to this list. I promise you these are novels you won’t be able to put down once you’ve read the first page!Do you want your next novel to make a list like this?If you love romance novels enough to give writing your own a try, weve got what you need next.Check out this free training so your story can be a step above the rest.