Target Market of Arran Breweries - Essay Example

Contents Pages Introduction 3 Analysis and Presentation of Questionnaires 3 Target Market of Arran Breweries 6 Behavioral Pattern 7 Strengths and Weaknesses of Advertisements 9 Challenges of Emerging Markets 11 Recommendations 12 References 14 Executive Summary Consumer psychology and analysis of database of customers are important part of market strategy which helps one to know the changing preferences of the customers in the rapidly changing times. While the growth and the future prospects of the business depend on the input data as they are able to divulge vital information about the products and the customers, strategic marketing through widespread appealing advertisement is a vital factor that helps to bring in new clientele. This report is an effort to gauge the impact of the advertising campaign of the products and services of Arran Breweries based on the survey carried out on its advertisements. The main purpose of the survey was to observe the impact of its advertisements on the people so that the organization could identify the target market and at the same time inject fresh ideas into its advertising strategy. The positive information that has come out of this survey is that significant percentage of people above the age of 20 gave clear indication that their buying decision is swayed by the visual and textual content of the advertisements. The company too, needs to target people above the age of 20 years to market its products. The beer and ale are popular amongst the youth and Arran must target this group primarily because they are open to new ideas and products. By targeting this segment, Arran can strengthen its market position. Another major target markets are the retailers and hotel industry. While retail market would need ales and beers in the bottles, the hotel industry can also have it in cask format. The advertisements should be versatile in their approach to attract clientele from diverse segment of the market. Introduction Consumer psychology and analysis of database of customers are important part of market strategy which helps one to know the changing preferences of the customers in the rapidly changing times. Prices may not be very important part of the strategy with the old customers but competitive pricing helps to bring in new clients. Whenever new products are to be launched, it is important that trend in the customers’ needs and requirements are studied in advance so that appropriate strategy could be developed. While the growth and the future prospects of the business depend on the input data as they are able to divulge vital information about the products and the customers, strategic marketing through widespread appealing advertisement is a vital factor that helps to bring in new clientele. Arran Breweries was conceptualized by Richard and Elizabeth Roberts and had finally come into full fledged production in 2000 in Cladach, Brodic, Isle of Arran. Arran Breweries specializes in crafted brewed ale and beer. Arran Breweries has won several awards for its quality and attractive labels. The popularity of its products is reflected in its increasing demand. The long term vision of the proprietors is to replace the American beer with Arran ale, in the hands of the youth. It has become one of the premier brands of ale in Scotland with hotels, pubs and bars in and around Scotland, as its major clients. This report is an effort to gauge the impact of its advertising campaign based on the survey carried out on its advertisements. Analysis and presentation of questionnaires The main purpose of the survey was to observe the impact of its advertisements on the people so that the organization could identify the target market and at the same time inject fresh ideas into its advertising strategy. The questionnaire was designed to get the maximum information regarding the target population so that one was able to categorize the information as per gender, age, preference for visual impact and content impact of the advertisement. Of the total number of participants, 58% were men and 42% were women (Graph 1). 75% of them were in the age group of 20 to 49 and 19% were above 50 years of age. This suggests that results of the survey would reflect the preferences and reactions of the well segmented target population who can become consumers. Graph 1 50% acknowledged that their decisions were influenced by the advertisements and 21% were unsure about the impact of advertisement in their buying decisions (graph 2). It clearly gives Arran Breweries the opportunities to exploit this particular behavioral pattern and convert it into confirm buy. Graph 2 Interesting, 75% agreed that strong imagery is the major factor that attracts them, while 71% liked them to be based on factual information (Graph 3,4). 57% people said that they buy products which are advertised. When asked about advertisements of Arran Breweries, 52% liked the imagery and only 48% liked the text! This is indeed a revelation and a wake up call for the Arran Breweries to improve and improvise its advertising design and apply creative thinking into its advertisements to make them more effective. Graph 3 Graph 4 Advertisements and media play a very crucial role in the strategy planning and are often used to define company’s position vis-à-vis the market strategy for non market factors. A well defined market strategy is the key to success in any new market. The various media in the region are important tool to popularize the company and help establish its brand among the masses. The results of the survey are important for the organization because it shows that even though, advertisements significantly influence general public’s buying decision, the people were not overtly impressed by Arran’s advertisements. The survey has given opportunity to the company to revamp its advertising strategy and make it more penetrating so that people are motivated to buy Arran ale. The advertisement should be able to impact significantly the buying decisions of the consumers. Target Market of Arran Breweries The positive information that has come out of this survey is that significant percentage of people above the age of 20 gave clear indication that their buying decision is swayed by the visual and textual content of the advertisements. The company too, needs to target people above the age of 20 years to market its products. The beer and ale are popular amongst the youth and Arran must target this group primarily because they are open to new ideas and products. They are also more vulnerable to eye catching advertisement campaigns and further incentives in terms of discounts, gifts etc. would provide a competitive edge over their rivals. By targeting this segment, Arran can strengthen its market position. Another major target markets are the retailers and hotel industry. While retail market would need ales and beers in the bottles, the hotel industry can also have it in cask format. The advertisements should be versatile in their approach to attract clientele from diverse segment of the market. Behavioral pattern Analysis and identification of the changing trends of the customer requirements are important ingredients to gain leverage against their rivals. The market strategy should be totally focused on the needs and requirements of the people and make continuous efforts to update its products line with that of the changing public demands. Understanding of consumer psychology, therefore, plays a vital role in the development of marketing strategy and planning. The behavioural pattern of the people, in the decision making process of buying products and services, help provide important clues for preparing appropriate advertising strategies and campaigns so that maximum mileage could be garnered for the products. ‘In cognitive learning, the individual learns by listening, watching, touching, reading or experiencing and then processing and remembering the information’. (Think Quest, 2008). Theory of cognitive learning is important because it implies that that through various means of learning processes, people are able to retain the information in the memory and apply it as and when required. When applied to advertisements, this theory becomes highly relevant. The impact of those visuals and the textual contents are reflected in the behavioural pattern of the people who may or may not become their client. In some cases, the low impact advertisements are known to even divert the committed clients. Hence, effective communication through appealing visuals and informative textual contents are important not only for retaining the old customers but they must also be able to attract new one. Newspapers and magazines are also quite popular among the young and the old people. Advertisements based on cognitive learning theory can aptly be applied to this particular medium of advertising. The growing popularity of international magazines like Cosmo, Elle, Good housekeeping etc. amply show that usefulness of media in popularizing new product and services. Apart from the regular tools of media, the company must also make efforts to contribute towards the developmental needs of the society, especially in the area of literacy, medical services, activities which promote income generation etc. so as to establish and project itself as people friendly organization which cares and empathizes with the masses. Another important theory that must be applied in the advertisements of the Arran Breweries is the ‘Model theory’. ‘Modelling learning theory is the process through which individuals learn behaviour by observing the behaviour of others and the consequences of such behaviour’ (L. Schiffman & L. Kanuk, 2007, pg 215). This theory derives its strength from the fact that people identify with the models and events described in the advertisement which serves to promote the wider objectives of the advertisements and ad campaigns. Another key factor is the intensity of appeal that the visuals and the textual contents are able to convey and thereby effectively deliver the message regarding the products and services. Television is the most widely used by the urban population where a wide variety of channels and advertisement designed under the modeling theory have a greater chance of swaying viewers buying decisions. TV is a highly recommended media tool and is extensively used for corporate advertisements. Entertainment channels and talk shows which portray contemporary lifestyle are very popular among the younger generation and therefore offer great platform for the new brands to introduce themselves to the emerging markets. The companies must choose the target audience and strive for the appropriate timeslot in the television. Fast changing environment of advancing technology and rapid globalization has made business more competitive and spreading awareness about the various products and services amongst the massed becomes vital for the organizations. Dissemination of information and creating demands for different products and services through effective advertising therefore, has become crucial for companies to maintain a competitive edge over their rivals. The advertisements of Arran Breweries carry huge implications for the company and regular feedback of those campaigns would ensure that the impact of those advertisements do not diminish with changing times and they are able to make appropriate changes in the content to suit the changing demands of the public. Strengths and Weaknesses of advertisements The advertisements of Arran Breweries have displayed mixed reactions from the people. Impact of their visual and textual contents have both remained around 50% which could be interpreted as mediocre and not carrying enough significance or impact for the goods and services advertised amongst the people. The lack of appeal for the advertisement is highly damaging for the overall image and performance outcome of the company in terms of its long term vision and short term goals and objectives. The major strengths of the advertisements are its vibrant display of goods and the textual contents which are able to inform the public of its products and its transparent model of operation which encompasses a strong will to disseminate information about the high quality of its products and the authenticity of its indigenous products. The advertisement has been able to promote their goods and services by creating brands that guarantees the customers of getting high quality goods and services. ‘Brand building is needed because products are the same’ (Kotler, 2005). The brand name ensures that the product maintains a high standard of excellence at a price that a customer is willing to pay for. Therefore, the brand provides the customer with a quality product which satisfies his needs, making it as one of the key reasons that brands still enjoy the popularity amongst its customers and at the same time, attract fresh clientele. The weakness of the advertisements is that they have not been able to effectively turn the viewers into their consumers. The main reason could be attributed to the fact that the advertisements lack the presence of characters who are shown to promote the Arran Ale! People find it easy to identify with characters who exhibit some of their inherent desires and touch the sensitive chords of recognition somewhere deep inside their psyche. Apart from this, the changing trends have shown that people are attracted by the advertisements that evoke their sense of humor and able to make them laugh. Hence it is important that the advertisements must also be witty and explore areas that are novel but easily identifiable. Arran Breweries main target are the youth and therefore it would be advantageous for the company if their advertisements show youth in action such that they may be able to inspire others to imitate their product usage. Textual contents of the advertisements are comprehensive and inform the public of the various relevant details about the company and its products and services. While it’s true that vital information is disseminated but the wider implications are not favorable to the objectives of the advertisement itself. The advertisements should be able to communicate their messages through short and succinct texts which can be read in short time and with comparative ease. The main purpose of the advertisements is to attract fresh customers and in the contemporary times, the lifestyles of the people do not allow people to linger over advertisements contents to find the main point. Hence it is important the Arran redesign its advertisement campaign and strategy to effectively deliver the goals and objectives of the company and create a niche market for its products. Challenges of the emerging markets Emerging markets are crucial in the era of globalization and can be defined as the new area with high income and where the demand for the product can be created with relative success. With vast diversity in values and ideologies within the social fabric in the global business environment, the company needs to formulate marketing and communication strategy in a way that would not only uphold a high standard of corporate ethics but it must be able to ensure and exhibit understanding of the cross cultural values and handle issues with sensitivity. Any strategy that is formed needs to be localized to suit the local conditions. The advertisements should conform to the format that promotes fair and ethical practices. Consumers are the mainstay of any business and therefore, efforts must be made to develop better understanding with customers with regard to consumer demands and correlate it with the product so that appropriate advertisement strategy could be developed. In the present market scenario a more aggressive approach to advertise its goods and services need to be adopted to meet the challenges of the changing time. Recommendations The fast and efficient mode of communication through the internet technology has created a huge database of potential market for the businesses. The compulsions of the emerging new dynamics in the global businesses have necessitated for people-centric policies and plans that would meet the challenges of the changing social patterns and its changing demands. While product is of vital importance and its pricing makes it a salable item, maintaining a good database of customers is intrinsic part of market strategy which helps one to know the changing preferences of the customers in the rapidly changing times. Prices may not be very important part of the strategy with the old customers but competitive pricing helps to bring in new clients. Whenever new products are to be launched, it is important that trend in the customers’ needs and requirements are studied in advance so that appropriate strategy could be developed. It is true in the case of Arran Breweries also and the information would go a long way in designing the advertisements to tap the emerging new segment. It is equally true that the concept of marketing has undergone tremendous transformation. Hence one needs to be more open when Shultz say that it is the end-users who now control the markets rather than the marketers (Shultz, 2001). In other words, another important factor which has significant impact on the overall performance of organizations is that its interactive and customised website is attractively designed and must be updated and well maintained. An updated website has the capability to meet the changing demands of its customers and provides them with the value added services to meet their requirements. As per an article “E-commerce is an economic solvent. It dissolves old business models and changes the cost structure, and rearranges links among buyers, sellers, and everyone in between. The impact of e-commerce is happening in phases” (Kalakota, Robinson, 2002). (words 2533) Reference Kalakota R, Robinson M. (2002). E-business: Roadmap for Success 2.0. Addison-Wesley. Kotler, Philip. (2005). Toward Stronger Marketing. unpublished presentation to the ARF, “Future of Advertising” Conference, Chicago, 10.24.05. Schiffman, L & Kanuk, L, (2006). Consumer Behaviour. Ninth edition. London. Prentice Hall. Shultz, Don E. (2001). Bid Farewell Strategy based on old 4Ps. Marketing news; Feb 12, 2001; 35,4; ABI/INFORM Global. p 7. THINK QUEST, (2008). Understanding Human Behaviour: Cognitive Processes. Available from: Accessed 26 October 2008 Read More