For years the number one leader in the beer industry in Puerto Rico has been its local beer Medalla Light. The second leader in the market is Coors Light. It was one of the first light beers introduced to the market containing 102 cal. in a 12 ounce can. These two beers have been the constant rivals in the market for many years. And the third main competitor in the local market is Heineken, although it could be considered more of a semi-direct competitor since its targeted to a different market and demographic.
Currently the company that holds the majority of the markets shares is the local brewery Medalla Light holding around 32% of the total market shares. This fact presents a huge threat to Cervezas del Sur. And Coors Light is not very far behind, holding 31% of market shares, making this a very competitive market. While identifying and eventually aiming for a specific market share Cervezas del Sur has to consider every detail and factor which are critical in determining the methods to be used. Success or failure of the company depends on critical decisions such as when, where, and how much cash to spend.
Making the company a very important part of the public eye and adopting aggressive advertising techniques for the beer are also important factors. Breweries have been obligated to further study and analyze the actual trends to find additional possibilities in the market, whether in emerging or developing markets. One huge trend is the cost. Cost is the key to growth in emerging markets. It is necessary to establish a price that is favorable for consumer it use unit price divided by disposable income ration.
Cost has become a huge trends since the recession has had a great impact on consumers behavior therefore also on the trends of the beer industry. One may even say that all this new trends are an effect of the recession. From cost to value, to the most uncommon source of decision, the companies Social Responsibility have influenced a lot on the buying behavior of beer consumers. This new trends in the beer industry have presented opportunities of new companies, such as Cervezas del Sur, or mature companies willing to change their product to gain more popularity, increase sales or gain market shares.
Cost has always and will always be the most important factor in a decision. And now since the recession everything is more about the cost. The alcohol industry has seen a downfall since the recession but the only one that has proved to be well positioned to absorb the trend of consumers trading down from wine and spirits is the beer industry. Every trend is connected in a way to one another. First the value for money must remain a key factor in tendencies, but since value isnt cheap consumers have been battling between a fight for quality grasping that real quality may cost more.
With cost comes the trend of packaging. This trend of different packaging is connected with the trend about consumer looking to be green and eco-friendly. Every country has a preferable type of packaging, especially for beer. In Latin America the most common beer package are the glass bottle or the aluminum can . In the U. S. a new growth on metal bottles has emerged due to an Heineken design. However in Europe where everything is more regulated there has been a huge trend in PET bottles, plastic bottles.
The use of PET bottles can differentiate a brand form another and at the same time it can also help lower packaging cost and increase an image of Social Responsibility. Another trend in the beer industry has been escapism. The trend escapism has changed the way we think about packaging-convenience. Packaging convenience makes it easier to manipulate and ideal for boosting sales. Another trend also is the health and wellbeing trend. This trend is not so much only in the beer industry but in all the industries as well.
Its all about staying fit and looking good. Health and wellness in alcoholic drinks has driven companies to new ideas like, low-calorie/low-carb beers, natural/organic beer and so on. This new trend is very important for Cervezas del Sur since their primary product is a light beer. Another huge trend has is that homes are becoming entertainment hubs. This trend of cocooning or nesting has gained importance. This is a very important trend for alcoholic drinks industry, because now we can see that where people are drinking is changing too.
This trend is leading to a shift away from on-trade alcoholic drinks sales toward the off-trade channel in many markets for a number of years. This can present an opportunity for Cervezas del Sur. Aside from all these trends companies have to consider underserved markets in the populations. There are two key groups to target; the ageing population (65 and over) and the population between 33 and 43. All of these trends are critical to a company, especially a new company like Cervezas del Sur. It is important not to take the eye off the key long-term trends, which will go on to be significant long after the recession.
Every one of these trends is critical when looking for ways in which a product can differentiate itself from the competitors. Thus, differentiation may lead to an increase in market shares in a saturated market where, in the case of Cervezas del Sur, his main competitor holds the biggest portion of the market share pie. To gain a generous piece of the market shares it is critical to understand not only the competition but also the trends mentioned above. If a company makes good use of this information it can look for ways to impulse its product.