Essay on Marketing Trends That Could Counter Heineken Lager

Published: 2021-08-15 05:10:39
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Several companies dealing with different products always have the zeal of dominance within the marketing scope. This would often be the thought of the whole management, and if one doubts, then a close spot check on companies goals and objectives communicates the truth. In fact, every company would join one of the insight goals and missions whose accomplishments will automatically communicate the level of success they aspire to achieve. Such is the scenario as well in Nigeria where since time immemorial; two main companies have been dominating brewing sector. These are the Nigeria beer industry and its competitor Heineken both of which have established themselves in the market. Ideally, it is found that the two companies command approximately 71% share of the market (Akinyoade, Ekumankama, and Uche, 2016). This leaves just a meager percentage for the rest of the upcoming companies to struggle by creating themselves. However, the scenario has changed with biting economic times. Currently, the consumption pattern is gradually changing with many people switching to other affordable alternatives. The situation has affected the premium beer brands leaving them on the receiving end with gainers being the low-value beer brand. The premium beer brands that are bearing the brunt include the Guinness Nigeria PLC, and the Nigeria breweries star. Surprisingly, one of the giants brewing industry NBs Heineken is not affected (Iheanachor and Ogbechie, 2016).

Ever since the beginning of company management, there have been none delighted in engaging in perfect competition since it is a terrible way of dealing with competitors in the market trends. Instead, several companies opt for market dominance (Akinyoade, Ekumankama, and Uche, 2016). This is the zeal to stand apart from being the best as well as soaring profit margin. Ways to achieve this, therefore, becomes the pivotal mileage in which the company can brag. Historically, several companies have made market dominance which is an idea based that take the assumption of their traditional monopoly practices (Oyeyemi, 2014). The methods include setting high prices, price skimming as well as limiting access to their secrets or companys information. Such ideas work best in the event the firm possesses myriads of particular assets or patents. In line with todays knowledge of economy, the ways to overtake a competitor in the market are based on ideas rather than the resources that the company has at its disposal (Akinyoade, Ekumankama, and Uche, 2016). In that case, therefore, the traditional monopolistic ideas are somewhat ineffective since there is much dynamism in the market. This situation makes the thing to take this turn is the fact that everything including consumable goods can be imitated or replicated in a better way than the first form of the marketing trends that are appealing to the consumers (Hesse, 2015). It is the reason behind low valued beer making companies have thrived in the tight economic battle in Nigeria amassing significant share (Oyeyemi, 2014). A good brainstorming is the operation of the star bucks, and how it redefined its traditional coffee, or hoe the Curves did marvelously in challenging what was highly competitive fitness industry. The two companies were neither built on any conventional monopolistic terms, yet everybody would attest to their dominance to the market. The question is how they command the market. Ideally, it is found that they entangle in some operation strategies that outwit their competitors such as 1.) Shifting demand curve out by offering what is referred to as a leap value. 2) Setting strategic prices such that the people will not only want to buy their product or service but can also afford if comfortably. 3.) Lowering long-run average cost in ways that the company could still expand its ability to get the profit while discouraging free-riding imitation (Akinyoade, Ekumankama, and Uche, 2016).

The latest entrant of SABMiller into the array has cast upheavals in the brewing industry with the dominant Heineken shrugging shoulders (Iheanachor and Ogbechie, 2016). A wit war that probably will see the South African company thriving in the market. One of the strategies that the society should inculcate is a focus on giving out better service to beer consumers to win their trust. Nigeria is one of the countries where a large population consumes beer, and the company should capitalize on the ready market. SABMiller has already established itself as one of the brewing companies to reckon with in the Nigerian market (Iheanachor and Ogbechie, 2016). Nonetheless, it is vital that the companys management seeks ways into which the company will be protected from the ill will of the once giant enterprises. It requires a hand in super managerial methods that will ultimately result in significant success. According to Iheanachor and Ogbechie (2016), Succeeding in the todays ever-changing business environment requires that companys management stay ahead of the competition. The presenting issue is how does one stay ahead of other entities in the market? There are simple ways, which underscores how this journey should be taken, they include:

Obsessing over the competitors this is one of the techniques that should b observed keenly by the SABMiller company. It involves taking advantage of any opportunities as well as watching over everything that the competitors do in the belief that you can do better than what they offer regarding the service delivery. It will keep making an entity to execute the set goals making the venture ever ready to embrace new changes whenever they emerge. Planning is an apparent role of a sound company. It will require the management to spend substantive time planning what will be done and the possible ways of getting things done. It is also essential to analyze the competitors motive such as any want to take market share from you as well as damaging your business.

Paying attention to upstart rivals Always success drives the motive to succeed in any business venture, thus always necessary to stop ignoring competitors that would be thought to control insignificant market share. It is true that such assumption, in the end, hurts a business badly and the used to be seen as very young companies grow and sprawls out smothering the giant one who once existed. For instance, Google and Craigslist started as a small venture that was ignored by the newspaper outlets, most of the newspaper companies thought little about them, and today the older media outlets are no more in the market. It is prudent to pay attention to small and new ventures with almost similar ideas as you taking into consideration that it may overtake you on the way. In doing so, it has been found that one may learn some of the essential business models that could drastically change the market share of a company.

Becoming unpredictable As a business entity, it is important to note that your competitors are eyes open watching your steps. The main reason for doing so is to study areas in which they can take advantage of your habits, and this will most likely take place if a companys practices are predictable that make you an easy target. The secret here is to be unpredictable as possible while concealing your moves in the broad marketing scope. For example, the Google does not undertake to announce when it is on the verge of making significant changes in its search algorithm.

Evidently, as the market share keeps on tightening, Heineken has since launched a scathing attack on the competitors. Recently, the Dutch company unveiled a non-alcoholic version with its namesake beer. It has come out on the target to globalize its products as well to initiate the market growth for Heineken products. Indeed this was a well-calculated strategy since many of the rival companies barely produce non-alcoholic beverages for their markets. Now, one of the yielding strategies that will confer AIB InBev ability to penetrate the already dominated beer market is lowering the long-run cost.

Analysis

It is a knowledge of marketing that value innovation rapidly increases appealing nature of a good. It will automatically shift demand curve say from a point D1 to D2. This would follow the price set that will make it on the shift from variable P1 to P2 to help in capturing the number the targeted consumers in the more expanding market. When such behaviors of changes occur, there will be an increase in the amount sold say Q1to Q2 that builds robust product recognition for any unprecedented value. Apart from this, the company will aspire to engage in target prices, which subsequently will minimize the long run for the total cost curve from the point LRAC1 to LRAC2 to an expansion of its marketability to yield profit while at the same time discouraging imitation by other companies. It is in this scenario that the buyers will feel and receive a leap in the value, which shifts the consumer surplus point axb to the eyf. The company, in the same manner, will earn a leap profit and grow to witness a shift in profiting zone from abcd to efgh. Typically, what follows is a win-win dynamism in the market in which several dominant companies earn top positions while buyers at the same time come out as big winners. In the end, the society also benefits from the improved efficiency (Iheanachor and Ogbechie, 2016).

As opposed to the win-win strategy, some of the monopolistic companies practice monopoly ideas, which are characterized by setting high prices while others exercise price skimming to help them in maximizing n the profits. Such are the ideologies that Heineken brewers have practiced. Due to lack of competition within the market, such companies fail to capitalize on efficiency while they reduce cost thus there is consumption of more resources. This subsequently leads to artificially high prices that which is imposed on the consumers resulting in a decrease in consumer surplus (Iheanachor and Ogbechie, 2016). Precisely, the practices traditional monopolistic ideas work against the consumers as well as efficient use of resources. The baseline, therefore, is market dominance, which comes through monopolistic practices, and the methods tend to come at the expense of consumers and the society. Importantly, when value innovation is used, a win-win situation occurs making reason consumers tend to like company X.

Different brewery brands in Nigeria are repositioning in the market once again to control their share (Hesse, 2015). This has occasioned acquisitions and merges which is one of the strategies that different beer companies have used. Merging is one of the techniques that have made the SABMiller become a leading brewery outlet in the world. Because of SABMiller entry into the market, Heineken and Nigerian breweries went into the market shopping across the country (Iheanachor and Ogbechie, 2016). With lots of acquisition from the once upcoming brewer industries, the giant Heineken and Nigerian brewery have stood the test of time. Importantly to note is the effort that the giant brewery companies have consolidated since the entry of the giant SABMiller in the market. The merging strategy has apparently worked for most of the businesses with SABMiller uniting with Anheuser- Busch InBev creating substantive positive impact for the management.

Conclusion

In sum, for a much success of the SABMiller Company, there is need to invest in regional marketing to diffuse the fact that Heineken and Nigerian brewers dominate Nigerian market. Another breakthrough is likely to come from pricing. It should be a long-term strategy to help the company to penetrate the market that is gradually embracing SABMiller Company (Iheanachor and Ogbechie, 2016). It is essential...

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