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Article
Publication date: 15 June 2015

Gopalakrishnan Narayanamurthy and Anand Gurumurthy

This study aims to understand the structure of downstream network from a supply chain (SC) perspective using a case of an Indian alcoholic beverage manufacturing company. In the…

1141

Abstract

Purpose

This study aims to understand the structure of downstream network from a supply chain (SC) perspective using a case of an Indian alcoholic beverage manufacturing company. In the SC literature, many researchers and practitioners have studied the design of upstream supplier network. Very few studies have documented the design of downstream network comprising distributors, warehouses, retailers, etc. and current study attempts to contribute to this limited literature. In addition, this study also tries to understand the influence of downstream SC, if any, on top management strategies. Finally, it assesses the SC quality using the standard set of factors and provides insights for its improvement.

Design/methodology/approach

Single case study approach has been utilized to understand the configuration of downstream SC. A distillery in southern part of India which distributes a variety of liquor products across the market has been chosen for this study. Different data collection approaches have been adopted to understand the distribution channels prevailing in the market. In addition to the internal documents, semi-structured interviews were conducted with salesmen employed by the distillery for different group of outlets, top management of the distillery, outlet owners and counter sales person.

Findings

Different distribution channels constituting the downstream SC network of the industry in the market studied have been identified to be retails and bars, institutions, clubs, modern trade, maximum retail price and Mysore Sales International Limited. Each of the distribution channels has clearly defined their boundaries for reaching different segment of consumers. Significant influence of the existing distribution channels on strategic decisions such as new product development and pricing were noticed. Interesting inferences were obtained on the relationships existing between the distilleries and different distribution channels. Insights were also gathered on the regulatory role played by the government between the manufacturers and distributors. Few marketing and promotional strategies adopted by companies to strengthen their downstream relationships with distribution channels and, in turn, with consumers have also been discussed. The quality of alcoholic beverage SC has been assessed and was found to perform on par with the set standards of quality in robustness factors and enabling factors. Training factor needs to be further improved by providing salesmen with exposure to best practices. Effort also needs to be taken to improve in the complicating factors, i.e. the testability and time.

Research limitations/implications

This study is limited to the experience of a single alcoholic beverage manufacturer in the Karnataka state in India. SC of alcoholic beverage industry in India varies across states and depends on State Government regulations. Hence, the obtained results and inferences cannot be generalized across the industries and geographies. Future studies can be carried out in different locations across the country to understand the structure and dynamics of downstream SC in this industry. Scope also exists to study how the deficiencies identified in the SC can be improved and how alcoholic beverage firms entering India adapt to the prevailing SC structure. Comparative study of downstream SC of different industries can also be conducted.

Practical implications

Academicians and practitioners can consider this paper as a source to understand the configuration of downstream SC of alcoholic beverage industry. More than that, this study provides a counter-intuitive inference for researchers and practitioners that choice of distribution channels have influence on the strategic decisions such as pricing and product development. Therefore, it becomes necessary to factor in the target distribution channel at the product design phase itself. This study may also help in performing a comparative study of downstream SC – especially the distribution network of different industries and identify best practices that can be adopted across the industries. Application of the standard set of factors from the food SC quality assessment literature have been demonstrated in this study to assess the downstream SC of the alcoholic beverage industry studied. In addition, this study provides several insights by detailing the structure of the SC for other alcoholic beverage manufacturers who are planning to enter Indian market.

Originality/value

According to author’s knowledge, it is believed that this is the first study to report the configuration of downstream SC of the alcoholic beverage industry specifically from India apart from describing their influence on strategic decisions of the company.

Details

Journal of Indian Business Research, vol. 7 no. 2
Type: Research Article
ISSN: 1755-4195

Keywords

Case study
Publication date: 24 May 2013

Amonrat Thoumrungroje and Olimpia C. Racela

Corporate diversification, product portfolio analysis, industry structure, international business expansion, beverage industry.

Abstract

Subject area

Corporate diversification, product portfolio analysis, industry structure, international business expansion, beverage industry.

Study level/applicability

The case is suitable for senior undergraduate and graduate MBA strategic management, international business strategy, and marketing strategy courses.

Case overview

Thai Beverage Public Company Limited (ThaiBev) was Thailand's largest beverage company and was among Asia's major alcoholic beverage companies. The case situation takes place during the latter part of August 2010, two years after the public announcement of ThaiBev's ambitious intentions to become a comprehensive and integrated beverage company and after having recently re-launched its acquired Wrangyer energy brand, a move signaling ThaiBev's strong commitment to its non-alcoholic beverages. The case describes the beverage industries at the global, regional, and country level and discusses ThaiBev's range of businesses. Marut Buranasetkul, Senior Vice President of Corporate Service and Deputy Managing Director of Thai Beverage Marketing, the sales and marketing arm of ThaiBev, must decide on the direction for ThaiBev to pursue to bring ThaiBev's non-alcoholic beverages to account for at least 10 percent of the company's total revenue. This case presents a number of important strategic topics, particularly in discussing industry structure and competition, as well as diversification issues encountered by a firm that was attempting to create a greater balance between the revenue contributions from its market leading dominant businesses and that of its younger and newer business lines.

Expected learning outcomes

Students will: understand the challenges faced by large conglomerates wanting to change their market position; learn to apply different frameworks such as Porter's Five Force Model, portfolio analysis, SWOT and to assess the competitive environment; learn to evaluate a company's current product portfolio and to recommend strategies to improve its allocation of resources; and learn to identify key success factors necessary to compete in a highly competitive industry.

Supplementary materials

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

Article
Publication date: 19 June 2019

Asuncion Hernandez, Natalia Vila, Ines Kuster and Carmen Rodriguez

The purpose of this study is twofold: to analyse the influence of both individual and environmental factors in order to explain alcoholic spending and to identify different groups…

Abstract

Purpose

The purpose of this study is twofold: to analyse the influence of both individual and environmental factors in order to explain alcoholic spending and to identify different groups of alcoholic beverage shoppers.

Design/methodology/approach

For the research, an online questionnaire was distributed among 1,023 Spanish participants of age more than 18 years. Multivariance techniques were used for analysis, and the results show significant influence of specific motivational domains, brand awareness, perceived culture, socio-demographic variables and purchasing environment. With these results, a cluster analysis was carried out identifying seven groups of alcoholic beverage shoppers.

Findings

This research confirmed the influence of both individual and environmental factors, and the authors have identified seven different groups of alcoholic beverage shoppers: prosperous, social, non-conformist, postmodern, communities, controllers and planners. This led to the consideration of various management implications, which would boost the success of the beverage industry.

Originality/value

The originality of this research focuses on identifying different cluster of shoppers who purchase alcoholic beverages and on revealing the characteristics of each identified cluster. Based on the exact profile proposed, the alcoholic beverage industry should design more appropriate marketing strategies to achieve competitive advantage and to reinforce purchasing because in today’s markets, there are fewer and fewer situations where a mass marketing approach is feasible.

Details

International Journal of Wine Business Research, vol. 31 no. 3
Type: Research Article
ISSN: 1751-1062

Keywords

Article
Publication date: 13 November 2020

John Maisch, Mihai Nica and Jeremy David Oller

This study aims to examine whether the introduction of wine or regular strength beer (B) sales in Tennessee grocery stores significantly increased the number of alcoholic beverages

Abstract

Purpose

This study aims to examine whether the introduction of wine or regular strength beer (B) sales in Tennessee grocery stores significantly increased the number of alcoholic beverages (AB) consumed or excise taxes collected in the state.

Design/methodology/approach

This study uses both a time series and a model-based approach to assess if a significant change in alcoholic beverage excise tax collections occurred after the natural experiment. The study evaluates monthly tax collections from B, mixed drinks and AB between January 1968 and September 2018 published by the Tennessee Department of Revenue.

Findings

The findings suggest that neither alcoholic beverage consumption nor excise taxes collected increased substantially in Tennessee as a result of the introduction of wine and regular strength B in grocery stores. It is likely, however, that some changes inside the industry were significant.

Originality/value

This study assists policymakers and analysts in determining whether allowing the sale of wine and regular strength B in grocery stores will have a substantial impact on the total amount of AB consumed or excise taxes collected by the jurisdiction.

Article
Publication date: 1 December 2002

Chin‐Tsai Lin and Pi‐Fang Hsu

This study applied the GM(1,1) model of Grey theory to forecast sales of eight sub‐category non‐alcoholic beverages in Taiwan between 2001 and 2003. According to our measured…

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Abstract

This study applied the GM(1,1) model of Grey theory to forecast sales of eight sub‐category non‐alcoholic beverages in Taiwan between 2001 and 2003. According to our measured results, the accuracy of the new forecasting model exceeds 95 per cent. The validity of predictions using the new model is clearly high. The model estimates that the total beverages market will grow, but growth rates will vary for individual sub‐categories. In relation to current growth, from 2001 to 2003, tea drinks, carbonated drinks, functional drinks and sports drinks will experience decreased market growth, while bottled water and fruit and vegetable juices will be a high growth market and coffee drinks and other drinks will enjoy improved sales. These results provide a valuable reference for the Taiwanese beverage industry developing marketing plans.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 14 no. 4
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 13 September 2021

Leeford Edem Kojo Ameyibor, Peter Anabila and Yvonne Kabeya Saini

This study aims to investigate the relationship between brand positioning and business performance, as well as the mediation effect of brand equity between them within the context…

2494

Abstract

Purpose

This study aims to investigate the relationship between brand positioning and business performance, as well as the mediation effect of brand equity between them within the context of Ghana’s alcoholic beverages industry.

Design/methodology/approach

A sample of 196 staff across four alcoholic beverage firms in Accra, Ghana was selected using a judgemental sampling technique. A structural equation modelling approach using partial least squares was used to conduct the analyses to answer the research hypotheses.

Findings

All the hypotheses were confirmed in line with extant literature. Specifically, the study found a positive relationship between brand positioning and business performance. The study also found that brand equity partially mediates the relationship between brand positioning and business performance.

Practical implications

The study serves as a useful guide to strategy and policy formulation in branding in general and specifically on how brand positioning can be effectively deployed as a key strategy to enhance business performance.

Originality/value

The study has practical implications not only for the marketing and sale of alcoholic beverages in Ghana to achieve financial performance but also for lasting competitive advantage.

Details

International Journal of Wine Business Research, vol. 34 no. 1
Type: Research Article
ISSN: 1751-1062

Keywords

Article
Publication date: 1 February 1996

David E. Smith and Hans S. Solgaard

Consumer researchers are interested in the degree to which global convergence is occurring along with various consumer behaviour dimensions and to what extent the consumption…

Abstract

Consumer researchers are interested in the degree to which global convergence is occurring along with various consumer behaviour dimensions and to what extent the consumption patterns in different parts of the world are becoming similar. With increasing internationalisation and cultural cross‐fertilisation, the industrialised societies of the world are converging in many ways. Shifts in alcoholic beverage consumption patterns in Europe over the past 50 years may represent a case in point. As traditional cultural boundaries become blurred, consumer preferences for wine appears to be driven less by long‐standing local and regional traditions, and more by growing acceptance of a wider choice. The disparity of wine consumption among the 12 countries studied has also decreased. Other powerful forces are likely to accelerate the pace of convergence in the future.

Details

International Journal of Wine Marketing, vol. 8 no. 2
Type: Research Article
ISSN: 0954-7541

Keywords

Case study
Publication date: 27 March 2015

Olimpia C. Racela

Bangkok beer & beverages: in pursuit of growth.

Abstract

Title

Bangkok beer & beverages: in pursuit of growth.

Subject area

Entrepreneurship, Strategic management, Importer/Distributor, Marketing, Environmental forces, Wine, Thailand.

Study level/applicability

Senior undergraduate or graduate MBA students taking a course in entrepreneurship, strategic management, marketing or small business management.

Case overview

Bangkok Beer & Beverages (BB&B) Company is an importer, distributor and marketer of premium spirits and wines in Thailand. The case takes place in April 2007, after the public announcement of BB&B's distribution agreement with Fosters Group of Australia to distribute the Group's Penfolds brand throughout Thailand. Coinciding with this milestone of BB&B is the rising interest in wine and the announcement by the Thailand Government to impose stricter regulations for the distribution and promotion of alcoholic beverages to curb consumption in response to demands made by several public interest groups. Within this backdrop, Pongchalerm Chalermsaphayakorn, co-founder and CEO of BB&B, was working with a team to consider future opportunities to pursue for sustainable long-term growth.

Expected learning outcomes

This case problem can be used to increase students' understanding of: how an entrepreneurial firm attempts to build/develop organizational capability; how decision-makers should assess the impact of, and respond to, the threat of significant and uncontrollable changes to the business macroenvironment; a firm's market position and the identification of strategic groups in an industry; and evaluating different growth opportunities and the implications on a firm's mission.

Supplementary materials

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

Details

Emerald Emerging Markets Case Studies, vol. 5 no. 2
Type: Case Study
ISSN: 2045-0621

Keywords

Open Access
Article
Publication date: 14 February 2023

Markus Filter and Chris D. Pentz

This study contributes to the scant research on dealcoholised wine from a consumer behaviour perspective by providing insight and reporting on the attributes that South African…

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Abstract

Purpose

This study contributes to the scant research on dealcoholised wine from a consumer behaviour perspective by providing insight and reporting on the attributes that South African Generation Y consumers prefer when purchasing dealcoholised wine.

Design/methodology/approach

A two-phased research approach was adopted, involving a main quantitative phase, preceded by a qualitative phase. Data were gathered from 626 South African Generation Y respondents by means of a questionnaire. The best–worst scaling method was applied to 13 selected dealcoholised wine attributes, to measure the level of importance of each attribute. To gain more insight on the data, the best-worst scaling scores were further standardised to a probabilistic ratio scale.

Findings

“Taste”, “price” and “I have tried it before” were the most important attributes that respondents considered when purchasing dealcoholised wine. Furthermore, “taste” was by far the most important of all the attributes. The attributes of “back label”, “attractive front label” and “brand name” were identified as the least important by the respondents, suggesting that they did not consider the visual elements of a bottle of dealcoholised wine as particularly important in their purchasing decision.

Originality/value

The findings of this pioneering study contribute to the lack of knowledge about dealcoholised wine from a consumer behaviour and marketing perspective, and provide insights and strategies that can be used by stakeholders to enhance the dealcoholised wine market in South Africa.

Details

British Food Journal, vol. 125 no. 13
Type: Research Article
ISSN: 0007-070X

Keywords

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