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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…

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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

Article
Publication date: 1 May 1982

C.K. Walter

There has been no lack of criticism in the literature of accounting and logistics over the attention given, or not given, to distribution costs. Dobson stated flatly…

Abstract

There has been no lack of criticism in the literature of accounting and logistics over the attention given, or not given, to distribution costs. Dobson stated flatly: “Distribution is neglected by cost accountants”. Only slightly less deprecating were Lambert and Armitage, who concluded that, for years, “control over distribution costs has been at best haphazard and, at worst, nonexistent”.

Details

International Journal of Physical Distribution & Materials Management, vol. 12 no. 5
Type: Research Article
ISSN: 0269-8218

Article
Publication date: 26 February 2020

Chrysovalantis Amountzias

This study investigates the pricing decisions of the UK wholesale and retail food, beverages and tobacco sector over 2007–2016 using 19 four-digit level NACE Rev.2 classification…

Abstract

Purpose

This study investigates the pricing decisions of the UK wholesale and retail food, beverages and tobacco sector over 2007–2016 using 19 four-digit level NACE Rev.2 classification industries.

Design/methodology/approach

The Hall (1988) and Roeger (1995) model is employed to estimate the price-cost margin for the aggregate sector and each constituent industry.

Findings

The results suggest the presence of weak imperfect competitive conduct as the markup value is close to perfect competition. Moreover, it is found that industries with higher market share and liquidity reserves tend to charge a lower markup, validating the presence of price wars and competitive incentives in the sector.

Originality/value

This paper contributes to the literature of pricing decisions and how access to available liquidity may affect the selling price of products. The pricing strategies also depend on the market structure as firms operating in more competitive sectors may start price wars more often than their counterparts in more concentrated sectors. Therefore, this study adds value to the investigation of pricing decisions under liquidity constraints across the UK wholesale and retail food, beverages and tobacco firms.

Details

Journal of Economic Studies, vol. 47 no. 2
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 1 July 2004

Charles J. Cante, Vincent J. Calluzzo, Deborah P. Schwartz and Theodore M. Schwartz

Strategic alliances, one component of a total quality management program, break down linkages of a supply chain and help alliance partners to address new markets that could not be…

5598

Abstract

Strategic alliances, one component of a total quality management program, break down linkages of a supply chain and help alliance partners to address new markets that could not be economically satisfied by a single firm. In recent years, through numerous press releases and anecdotal references, there have been an increased number of reported strategic alliances. However, there have been no systematic studies of the prevalence and impact of strategic alliances in specific industries and no way to obtain information on the costs and benefits of these formal relationships. This current research addresses these gaps. As part of a long‐term longitudinal research program covering diverse industries, two different industries, one in products (food and beverages) and the other in services (executive recruiting) were studied to determine the extent of penetration and effectiveness of strategic alliances. This paper presents examples of strategic alliances and the survey results describing penetration, types of alliances, business benefits, and expected costs.

Details

Supply Chain Management: An International Journal, vol. 9 no. 3
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 1 February 2016

Ying Kei Tse, Rupert L. Matthews, Kim Hua Tan, Yuji Sato and Chaipong Pongpanich

A growing need for global sourcing of business has subjected firms to higher levels of uncertainty and increased risk of supply disruption. Differences in industry and…

2562

Abstract

Purpose

A growing need for global sourcing of business has subjected firms to higher levels of uncertainty and increased risk of supply disruption. Differences in industry and infrastructure make it more difficult for firms to manage supply disruption risks effectively. The purpose of this paper is to extend developing research in this area by addressing gaps within existing literature related to environmental turbulence and uncertainties.

Design/methodology/approach

The authors test the model using data collected from 253 senior managers and directors in the Thai beverage industry using advanced statistical techniques to explore the relationship between representations of supply disruption risk and uncertainty.

Findings

The results show that both magnitude and probability of risk impact on the disruption risk, but the probability of loss is a dominant determinant. The authors also find that demand uncertainty and quality uncertainty affect the risk perception of purchasing managers, and are related to the magnitude of disruption risk, rather than the frequency of occurrence. Interestingly, the results show that quality uncertainty negatively impacts on the severity of disruption risk.

Research limitations/implications

The construct validity of demand uncertainty was under the required threshold, intimating the need for further construct development.

Practical implications

The framework provides managers with direction on how to formulate and target their disruption risk management strategies. The work also allows practitioners to critical reflect on implicit risk management strategies they may already employ and their effectiveness.

Originality/value

The paper identifies key antecedents of supply disruption risk and tests them within a novel industrial context of the beverage industry and a novel national context of Thailand.

Details

Industrial Management & Data Systems, vol. 116 no. 1
Type: Research Article
ISSN: 0263-5577

Keywords

Case study
Publication date: 1 May 2009

Armand Armand Gilinsky and Raymond H. Lopez

In October 2004, Mr. Richard Sands, CEO of Constellation Brands, evaluated the potential purchase of The Robert Mondavi Corporation. Sands felt that Mondavi's wine beverage…

Abstract

In October 2004, Mr. Richard Sands, CEO of Constellation Brands, evaluated the potential purchase of The Robert Mondavi Corporation. Sands felt that Mondavi's wine beverage products would fit into the Constellation portfolio of alcohol beverage brands, and the opportunity to purchase Mondavi for a highly favorable price was quite possible due to recent management turmoil at that company. However, should it be purchased, strategic and operational changes would be necessary in order to fully achieve Mondavi's potential value. In making a decision, students need to consider the attractiveness of the wine industry, its changing structure, its share of the overall market for beverages, and rival firms' strategies. As rival bidders may emerge for Mondavi's brands, Constellation must offer a price that demonstrates its serious intent to acquire Mondavi.

Details

The CASE Journal, vol. 5 no. 2
Type: Case Study
ISSN: 1544-9106

Article
Publication date: 30 March 2022

Razaz Waheeb Attar, Asra Amidi and Nick Hajli

E-commerce and social media technologies can significantly benefit the food and beverage industry by reducing costs, streamlining supply activities, and, most importantly…

1936

Abstract

Purpose

E-commerce and social media technologies can significantly benefit the food and beverage industry by reducing costs, streamlining supply activities, and, most importantly, engaging users in active interaction and enhancing social presence. This research aims to propose a model to examine the role of trust and social presence on loyalty in the food and beverage industry. Moreover, the mediating role of trust is the link between social presence and loyalty examined in this study.

Design/methodology/approach

A survey has been conducted to examine the structural model. The research model is tested using structural equation modelling (PLS-SEM).

Findings

The result indicated the effect of Social presence and Trust in social media on Customer loyalty in the context of online shopping. Our finding contributes remarkable insights into the food and beverage industry, particularly in the COVID-19 era, as more consumers buy through e-commerce platforms.

Originality/value

This study expands the understanding of the role of the managers of social commerce websites in maintaining customer loyalty. Hence, the social commerce site managers can use this finding to develop strategies for building customer trust and, ultimately, customer loyalty.

Details

British Food Journal, vol. 125 no. 1
Type: Research Article
ISSN: 0007-070X

Keywords

Open Access
Article
Publication date: 24 October 2023

David Amani

The current study was developed in response to the profound impact of ethical practices on the beverage industry. It aims to examine the mediating role of perceived brand…

Abstract

Purpose

The current study was developed in response to the profound impact of ethical practices on the beverage industry. It aims to examine the mediating role of perceived brand trustworthiness in the relationship between brand social responsibility and brand positioning in the Tanzanian beverage industry.

Design/methodology/approach

The study adopted a post-positivist approach, as it encompasses a deterministic perspective where causes are believed to determine outcomes or effects. The study focused on customers of two major beverage companies in Tanzania, namely Coca-Cola and Pepsi. Data were collected from 458 customers and analyzed using structural equation modeling.

Findings

The findings indicate that brand social responsibility serves as a valuable intangible asset, capable of establishing a competitive edge when integrated into the value proposition. Additionally, the results reveal that brand trustworthiness plays a mediating role in the connection between brand social responsibility and brand positioning.

Research limitations/implications

The study employed a convenience sampling technique; hence, generalization of the findings should be approached with caution.

Originality/value

This study represents one of the few scholarly endeavors that explore the role of social responsibility at the product brand level in establishing brand positioning. By doing so, it contributes to the advancement of knowledge concerning the impact of brand social responsibility on building competitiveness within the context of today's competitive business environment.

Details

European Journal of Management Studies, vol. 28 no. 3
Type: Research Article
ISSN: 2183-4172

Keywords

Article
Publication date: 14 August 2017

Chandana (Chandi) Jayawardena

This paper aims to provide practical solutions to the strategic question: “The hospitality and tourism industry in Canada: what are the main challenges and solutions?”. It aims to…

1506

Abstract

Purpose

This paper aims to provide practical solutions to the strategic question: “The hospitality and tourism industry in Canada: what are the main challenges and solutions?”. It aims to capture the essence of scholarly contributions made by 25 Canadian experts and provide a conclusion to the Worldwide Hospitality Themes (WHATT) theme issue (v.9, n.4) dedicated to Canada.

Design/methodology/approach

The paper draws from key concepts, suggestions and solutions written by 25 Canadian authors in the previous papers of this theme issue. It is worth noting that these authors together have more than 700 years of experience in managing, operating and teaching all aspects of the tourism and hospitality industry. The paper presents nine summaries in the following order: the state of the industry (introductory article); finding innovative solutions for HR challenges (four articles); and new trends and innovation (four articles)

Findings

In conclusion, 20 recommendations relating to human capital enhancement, as well as general suggestions, are made to embrace useful trends and innovative thinking for future progress in Canada’s hospitality and tourism industry.

Practical implications

As this paper is a combination of many perspectives from nine co-authored articles, there is no single focus to draw common conclusions. For further information and analysis, it is recommended that the relevant articles from this theme issue be reviewed.

Originality/value

Readers interested in the Canadian hospitality and tourism industry will find this paper to be of interest.

Details

Worldwide Hospitality and Tourism Themes, vol. 9 no. 4
Type: Research Article
ISSN: 1755-4217

Keywords

Article
Publication date: 9 March 2015

Bruno Schivinski and Dariusz Dabrowski

The purpose of this article is to fill the gap in the discussion of the ways in which firm-created and user-generated social media brand communication impacts consumer-based brand…

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Abstract

Purpose

The purpose of this article is to fill the gap in the discussion of the ways in which firm-created and user-generated social media brand communication impacts consumer-based brand equity (CBBE) metrics through Facebook.

Design/methodology/approach

We evaluated 302 data sets that were generated through a standardized online survey to investigate the impact of firm-created and user-generated social media brand communication on brand awareness/associations, perceived quality and brand loyalty across 60 brands within three different industries: non-alcoholic beverages, clothing and mobile network providers. We applied a structural equation modeling technique to investigate the effects of social media communication on consumers’ perception of brand equity metrics, as well as in an examination of industry-specific differences.

Findings

The results of our empirical studies showed that both firm-created and user-generated social media brand communication influence brand awareness/associations; whereas user-generated social media brand communication had a positive impact on brand loyalty and perceived brand quality. Additionally, there are significant differences between the industries being investigated.

Originality/value

This article is pioneering in that it exposes the effects of two different types of social media communication (i.e. firm-created and user-generated social media brand communication) on CBBE metrics, a topic of relevance for both marketers and scholars in the era of social media. Additionally, it differentiates the effects of social media brand communication across industries, which indicate that practitioners should implement social media strategies according to industry specifics to lever CBBE metrics.

Details

Journal of Research in Interactive Marketing, vol. 9 no. 1
Type: Research Article
ISSN: 2040-7122

Keywords

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