10+1 trends of Russian beer market 2015-2017Despite of the moderately negative prognoses for 2017, the beer market can be stabilized soon. Yet the years of the negative dynamics have resulted in marketing being limited just to “optimization” and the art of balancing between price and volumes. Bigger supermarkets share means stronger trade marketing. These processes are connected to the majority of the described trends. At the same time, the federal brands inflation leads to searching for new tastes, sales channels and contact formats that expand the product range and diversify the beer market, but do not imply a substantial volume increase. Let us enumerate and further discuss the ten trends of the beer market we can see in 2015-2017 as well as the major event of 2017.
Beer market of Ukraine 2017In the first half of 2017, the Ukrainian beer market goes on decreasing slowly. Yet, the companies manage to compensate their lost volumes by raising prices and improving the sales structures. This results in the mid price market segment reduction while the sales of premium brands are rising. These processes are connected to position strengthening of companies Carlsberg Group and Oasis and the market share reduction of Obolon. Most of the novelties by the market leaders belong to craft or hard lemon categories.
Beer market of Russia 2016: PET goes to draftThe beer market of Russia was warmed up by the hot summer, but the preparation for large volume PET prohibition has already impacted it negatively. The year was successful for Efes, MBC and regional producers; Carlsberg’s positions were virtually stable but AB InBev and Heineken lost a part of market share having focused on the sales profitability. The dynamics of big brands was determined by how much the companies were willing to keep the prices down or by their promotional activity. In this context the economy segment of the beer market and sales of inexpensive draft beer were increasing. The premium segment started shrinking due to license brands migrating to the mainstream segment.
Beer market of Vietnam: “Young tiger”Vietnam is one of the few big beer markets that continue to grow steadily. The beer popularity results from its low price, street consumption culture, and social motives. The outlooks of beer market as well as the Vietnamese economy inspire optimism, though the country is heavily dependent on export of goods. The state regulation can be called liberal, but the key risk for brewers is harbored in intensive rising of excise. Within TOP-4 there are two leaders, Sabeco and Heineken that grow at the fastest rates. The first company effectively employs its capacities, the second one focuses on marketing technologies. Almost 80% of the market belongs to century-old brands, yet the middle class and the youth are shifting their interest toward international premium that is growing taking share from the mainstream.
Nigeria. Goldberg, Kronenburg missing in market fray
This is what Goldberg and 33 Lager from Sona Breweries, a Nigerian Breweries (NB) subsidiary, whose majority share is owned by Heineken, and Kronenburg, belonging to Consolidated Breweries, just did, as their products could not raise their heads above waters where beer brands like Star, from same stable of NB and Harp, from Guinness Nigeria Plc hold sway.
Philip Kotler, a marketing professor had posited that there is hierarchy in every market or product category. He posited that, “The first is the market leader, the second is the challenger, third, the follower, the fourth, the market nicher and lastly the new entrant.”
According to Kotler, “a follower or nicher should not challenge the leader.” But it’s unfortunate, in these categories, Goldberg and Kronenburg do not belong.
Kotler further said that the best these unfortunate brands can do is to take their equal or near equal in the market. And that is why these brands are taking on their equal in the market. To make matters worse, these brands do not believe in visual adverts and print, while they have low rate in radio ad, and minimal billboard displays here and there.
However, in the view of Kotler, advertising creates advantage for established brands and creates problems for new (brands), entrants, where the likes of Goldberg, Kronenburg belong. On this note, both brands cannot be said to be new in the market, but have claimed to be new as a result of their inactivity in the market.
Investigation showed that both brands prefer to remain a regional brand, afraid to confront the leaders, may be because of the big spenders’ huge advertising budget, Brand journalists interviewed noted.
A look at the campaign materials of the three brands showed that they have not been doing well in the marketing communications industry, all boiling down to lack of funds to push the brands. On the part of 33 lager, which beer drinkers thought would wrest its way back to the market, failed because of inconsistency on its part.
33 Lager, however, is more visible on the airwaves, it’s selling point being word of mouth advertisement by consumers who often refer others to the beer, extolling its lightness and crispness.
In availability, neither of the beers under comparison outperforms the other. Goldberg and Kronenburg are only available in the Western and Eastern regions respectively. 33’s presence is quantifiable, largely in Lagos where the market resides, this was occasioned by its price differentiation.
18 Apr. 2011