Disintegration Of Yer Maw Free Sample

Executive Summary

BrewDog is a company that has gone from strength to strength in its short time since establishment. The company has been experiencing rapid growth over the past several years. Through extracting the relevant information from a SWOT analysis on the company, I will look at BrewDog’s strengths and opportunities, leading to analysis of competition, barriers to entry and the threat of substitutes in proposed future markets. Through this I will show what growth methods are not suitable for the company, and conclude with my recommendation that simultaneous expansion of the UK and foreign markets are the most viable growth prospects for the company. I will provide analysis and discussion to show the validity of this.

Introduction

BrewDog is a Scottish craft beer company who have quickly become one of the largest independent brewers in the United Kingdom. They are famed for their high quality product and distinctive style of conducting business and marketing. BrewDog’s entrepreneurs work with the intention of promoting the craft beer industry and to offer it as a better alternative to more commercial beers worldwide. They already sell their product to many markets, but their very recent interest in becoming not only a brewery but a strong force in the bar industry itself is where their dreams of expansion lay presently. Section 1 of this report is my analysis of the strengths and opportunities of BrewDog at present through use of relevant parts of my SWOT analysis of the company. Section 2 looks at the viability of the growth prospects presented in section 1, using appropriate segments of the Porter’s five forces model to analyse competition. Section 3 is my recommendation of how the company’s future growth should be conducted.

1. Analysis

I will begin my analysis of the growth prospects of BrewDog by looking at the current position of the company in terms of its strengths and the opportunities available to them in the craft beer market. I will focus largely on the opportunities available to them, with a view to analysing their growth prospects in section 2.

1.1. Strengths

BrewDog’s strengths lie largely in the unique way in which it chooses to conduct business and marketing, and it is these factors that have contributed largely to their current success. The company uses social media to their advantage, saving on many marketing costs, and allowing prospective consumers an up to date view of the company and its products, with recommendations by their likeminded peers. BrewDog’s craft beer product is considered to be of an extremely high quality and has won multiple awards attributed to this (BrewDog, 2010). Their innovation in design and marketing has proven to have a massive PR effect, with their beers being inventively named and bottle design combining art, humour and practicality (Charles, 2013). Much publicity has been gained by provocative designs, as well as direct and public competition with other beers (Telegraph Online, 2010). BrewDog successfully pioneered a change in government legislation with regards available drinking measures in pubs, which was at heart an extremely well executed campaign for their own product (Faulkner, 2011).

It has increased their reputation for quality and for looking out for the customer’s wishes. BrewDog is a public company now, and the method by which it inspired its shareholders was unique in itself. The “equity for punks” campaign has come to make shareholders feel as if they are a part of the brand, which in turn will make them more responsive to requests for money in the future (Smith. et al, 2010). Their year on year 200% growth has made BrewDog a profitable venture, and has made acquiring debt easier for them, as shown by their recent £5m loan (Wright, 2013). The previously mentioned factors continue to reap rewards for the company, and have contributed to their current strength in having Scotland’s largest independent brewery (Scottish Enterprise, 2010). On top of these things, BrewDog’s fairly niche product overcomes the recent down turn in pub attendance by offering a “better” product, and a different kind of experience in their bars, meaning that people are less inclined to consume alcohol in their homes and will come into the bar instead, specifically for their product.

1.2 Opportunities

The opportunities for BrewDog are vast and include continuing to expand on its recent trend of opening BrewDog pubs and bars across the UK, and taking the business global on a larger scale than it currently is. The company already exports to over 30 countries worldwide (McCulloch, 2013) and although this is of course proving profitable, the intentions of BrewDog in terms of expansion are focussed mainly on opening new establishments. The company currently has eleven open bars in Scotland and England, with a flag ship store in Shoreditch, London. Eleven bars is not a massive amount, particularly looking at the success of the ones they currently have. Although expansion abroad is no doubt a high priority, it cannot be ignored that BrewDog bars are not present in Northern Ireland, although the beers are available there for purchase in other establishments and stores. This is an opportunity for expansion. The matter of global expansion of the pubs is one that BrewDog seem very interested in, and understandably so. As mentioned, BrewDog already exports to around 30 different markets, and as such has a customer base around the world already. An opportunity for growth is to enter the German market, where the craft beer market is large, and which is the home country of Schorschbräu – a beer that BrewDog has had an on-going and public battle with to brew the strongest ale (Telegraph Online, 2010).

2. Viability of Growth Prospects

Use of Porter’s Five forces model for analysis of BrewDog’s growth prospects in different markets has been used to produce the following, based on extraction of relevant material based upon the concepts of competition, barriers to entry and the threat of substitutes (Porter, 2008). The following growth options could only of course be implicated by a company that was solid, well established and well managed, as BrewDog is. To take Flamholtz’s model of organizational success as a method of showing its position as a strong company (Flamholtz, 2000), BrewDog has worked its way up the pyramid of success in a very short time: finding its market niche in craft beer; managing and gaining resources effectively; putting in place incredibly successful alternative marketing systems; establishing its management techniques and ultimately instilling the “punks” culture in both its employees and investors.

The further expansion of the BrewDog brand into the UK market, such as setting up establishments in Northern Ireland, is an option that should be explored further. At first glance, it appears that expansion into a culture such as NI that is similar to the rest of the UK does not have as much risk as a move abroad. Having the pubs available projects further the image of welcoming new craft beer drinkers. Whilst this is true, there are in fact other market forces at work. Upon analysis, it is not the direct craft beer competition, but that provided by major brands like Guinness – which is responsible for a huge percentage of all beer sales in NI – that makes BrewDog pubs in NI less likely to succeed. With a massive percentage of the Northern Irish market drinking Guinness and other major brands because they are used to it, and because it is brewed “at home”, the fact that BrewDog pubs will not sell it will make customers less likely to want to visit. In terms of microbreweries and craft beer, there are only a few companies brewing Irish craft beer, and they have not undergone any significant growth in the past several years. Although I think that BrewDog’s unique brand would be able to compete with its direct competitors in the craft beer industry, and surpass them through their unique advertising and current popularity. The trends of the past seem to indicate that craft beer companies survive rather than flourish in the Northern Irish market. And If this strategy does not work, they have the opportunity to consolidate their existing UK customer base by creating more bars: perhaps with the objective of having one in every major city in the UK, including an expansion into Wales, where they have not currently ventured. Another growth prospect for BrewDog that I have proposed is the continued global expansion of the company. The company plans to open its twelfth bar this year in Stockholm, which will be the company’s first premises in a country outside of the UK.

The success of this establishment might well be an indicator as to where the company will take their product in the future. Sweden is one of BrewDog’s strongest markets currently in terms of its exports, and it makes sense to expand further into a market where their brand has been welcomed and is successful thus far. Brazil and Japan fall into a similar category and as such, are opportunities for expansion in the future. The growing interest in craft beer overall in the past few years is something that makes BrewDog’s expansion to other areas more likely to succeed. BrewDog’s current reputation and charisma will be heightened as the market grows due to increased popularity of the product overall. A profitable market could also be found in Germany. As I have said previously, Schorschbräu has famously been in competition with BrewDog with regards their brewing styles and beer strength. This company would serve as the main competition in this market. However, with their comparable brewing style, BrewDog edges them out by being far more unique and oriented towards their stockholders. Again, their strong marketing campaigns and the general culture of the company could contribute to them gaining an edge on the competition in Germany. Gaining a strong presence in Germany would be characteristic of BrewDog’s no-fear attitude towards PR, marketing and taking on the “big dogs”. It will put them in line with this company that it has been competing with over the past several years in a bold move into the German market. This is a tactic that would be indicative of BrewDog’s belief that they brew the best beer in the world.

3. Recommendations

In summary, my recommendations for the future growth of BrewDog as a company revolve largely around the expansion of their brand of pub and bar into foreign markets. Sales figures for exported beer sales show that there is definitely a market for BrewDog in countries like Sweden and Brazil. Taking the brand to Germany could prove to be highly profitable due to the existing niche market for craft beer, and because of the publicity that will be gained and will continue on account of BrewDog’s rivalries in that country. Whilst expansion into Northern Irish territory would not bear much fruit due to the lack of a market for the product, BrewDog should continue to develop new bars in their home country of Scotland, as well as the rest of the UK as a means of consolidating and solidifying their existing customer base. It is my recommendation that BrewDog do this whilst simultaneously expanding abroad to increase their market share and availability on both a local and global scale.

References

Brew Dog. (2010). Hardcore IPA wins Gold at the 2010 World Beer Cup. Available: http://www.brewdog.com/blog-article/286. Last accessed 15th April 2010. Butler, S. (2013). BrewDog to open bars outside the UK. Available: http://www.guardian.co.uk/business/2013/feb/21/brewdog-bars-outside-uk?INTCMP=SRCH. Last accessed 15th April 2010. Charles, G. (2013). BrewDog founder on

The Social Construct Of Childhood

Childhood is a construct of society, shaped by the social norms and values of a given culture. Various cultures hold diverse perspectives on childhood, thus lacking a universally accepted definition. From a biological standpoint, childhood commences at birth and extends until an individual attains independence and reaches adulthood as they rely on others for their survival during this period. Consequently, the concept of childhood can evolve over time.

In pre-industrial societies, families were responsible for production and all family members had specific roles, including children. Children would start learning and working as soon as they were able, with their social status determined from birth. Phillip Aires argued that in pre-industrial society, children were seen as “little adults” and given advanced responsibilities for their age. He also discovered that during medieval times, the concept of childhood did not exist. The individual’s age had no importance, showing a slight change in perception from the medieval period to pre-industrial society. Aires claimed that these children took on adult responsibilities at an early age of 7 or 8, which included helping with productive tasks at home. Legally, they could also be held accountable for criminal actions. However, industrialization caused changes in the roles of children and mothers as families lost their role in production and became integrated into other institutions (Parsons). As a result, children from pre-industrial families didn’t become adults and leave home to work in factories. This led to the next generation entering the workforce later in life, indicating that industrialization prolongs an individual’s childhood.

In the past century, childhood and adulthood have become distinct from each other, with specific characteristics associated with each stage. The introduction of education has played a significant role in this differentiation. Education expanded in the twentieth century, requiring children to spend at least 11 years in school. According to Postman, this expansion was necessary because of the development of the printing press in the fifteenth century which made literacy essential for children. As a result, extended schooling became necessary.

Furthermore, due to diseases and high mortality rates – where children were vulnerable and naive – they required special care and protection. Nowadays, Western societies prioritize the well-being and development of children leading to a more child-centered approach where protection and care are now considered normal.

The protection of children has been ensured through various acts, including the 1989 Child Protection Act. This act was implemented because it became evident that children are unable to care for themselves. Despite these measures, there are still instances where children have fallen through the system, as seen in the Baby P case. However, these incidents prompt governments to strengthen such acts, like the 2004 Child Protection Act. Furthermore, the fact that the victim’s name is always known while the perpetrator remains anonymous suggests a positive shift in society’s perception and value of children. Aries’ research reveals that in medieval times, the death of a child was not grieved, emphasizing this change for the better.

According to Frank Furedi, our world is characterized by uncontrollable institutions such as government, media, education, and religion. Consequently, exposing children to media exaggerations about beauty, drugs, and gangs poses significant risks. These influences are now more accessible to children than ever before and have led to an increase in child crime. Furedi argues that children are becoming increasingly adult-like not only in their work but also in their actions and attitudes. Drug use and gang involvement, typically associated with adulthood, have become prevalent among children. The sexualization of children has also become a widespread issue evident through the rise of beauty pageants for young girls. Feminists suggest this is due to the socialization of boys and girls into specific gender roles from a young age.

Angela McRobbie’s study on Jackie Magazine during the 1980s supports this viewpoint. She found that the magazine exclusively focused on topics related to marriage and motherhood, leading teenage girls at that time to perceive these roles as societal norms for women’s lives. While current teenage magazines emphasize careers instead, indicating a shift in children’s roles compared to pre-industrial times, it is important to acknowledge that this change differs from historical norms where marriage and motherhood were prioritized over pursuing careers after completing education.

According to some sociologists, the increasing rights of children have led to greater similarities with adults, resulting in a blurred boundary between the realms of child and adult. Postman argues that the concept of childhood has vanished due to media and technology’s impact, which has erased boundaries, leaving only a biological difference. The growing affluence in society may have greatly influenced ideas about childhood. However, we cannot claim that childhood no longer exists because children still rely on their parents for upbringing, care, and support in both material and emotional aspects.

Consumers Buying Behaviour How Consumers Make Buying Decision

When consumers buy products there are external and internal factors that influence their buying decision.  A need for a particular product could arise or the consumers might have been made aware of the existence of a product that they might have an immediate use for or might consider to buy it in due time when they are convinced that there is a need the product satisfies or if there is a problem the product will solve.

If what came first is the “need” to buy a product, the first step will be to analyse and convince oneself that the need is genuine.  After surpassing that stage, the consumers independently will go out in search of information about the said product.  It also depends on the kind of product to be purchased where if it is a high value brand such as a car, the amount of “information” to be gathered will be more than a product that consumers buy habitually on an ongoing basis such as food items or newspapers etc. that they are well aware of their need and had been buying them many times, which would mean they do not need much information about going out and buying them. [1]

Then what comes next is the consumers will have to evaluate among various products, and the more the product is a high end value brand the analysis and the comparison will be more involving and takes more time than, for example, when one goes out to buy a habitual item such as sugar, salt, bread etc. because any brand will do the job.  If the brand picked is wrong on an occasion, it is possible to pick a different one that meets the requirement next time.  But when the involved item is a high end value brand, consumers will always have to be careful and engage in “dissonance reducing” [2] buying behaviour, in such a way that they will make sure nothing goes wrong with their buying, because the next time they will be able to learn from their mistake might be years ahead in case of buying a car, for example, unless they want to take a drastic measure to return it or exchange it for another one that could cost them unnecessarily more.  [3]

Here it might be helpful to look at factors that influence consumers’ buying behaviour and consumers take their cue from many sources.  Friends, the culture someone belongs to, the media, a role model, family background, social status, all these factors and more could influence the buying habits of consumers or their likes and dislikes.  The need comes first or it could be developed, because if we take buying a vehicle as an example it does not mean people cannot function normally without it, but it could facilitate what they are doing, maybe by enabling them to manage their time better.  If what is involved is going from place to place, it could be accomplished by using other available means of transportation, but none of them might be at the level of having one’s own car.  And the above mentioned factors could influence or avail them convincing reasons to commit on a high end value item such as a car that has many other requirements that go with it.

Mentioning Abraham Maslow’s hierarchy of need theory could also shade more light on consumer buying behaviour and the theory starts from the basic individual needs such as food, and once that is satisfied the next natural step is to search for a lasting security in a form a job or a source of stable income.  Once that is attained the next stage is social needs where individuals need to belong somewhere.  Whether they form their own family or join a certain group that will make them feel they belong somewhere it is a social need that should be tended.  When they surpass that stage and are satisfied with the outcome there will still be more needs where they might want to be recognised for some of the things they are doing, and all along they are also creating new needs as consumers.  This means the job of the various businesses is not going to be only feeding people or mass manufacturing most of the products they will need.  There is going to be a lot of distinguishing to make and manufacturers get their cue from these factors and are out to satisfy them. [4]

Usually, a consumer base of such sophistication has various buying behaviours and among them are the “cognitive buying” that involves those who have to make a complicated decision while they buy, simply because what they buy is a high end value brand where there is no room to make much mistake.  Then there is the habitual buying where consumers are used to doing them many times and they can go out and buy them on impulse and most of the time they do not go wrong, and even if they go wrong it will be corrected easily.  While picking any food item if it is the right kind that the consumers approve of, it means the requirement is met, but if it just happened to be the wrong kind it is easy to be careful next time, which could be next day, and in such a case not much harm is done, where the purchased wrong item could even be thrown out.

There is also the “variety seeking” buying spree where consumers will continue to compare products and these products are not high end value items, in fact they are similar with products consumer buy habitually such as food items.  They have many brands that are worth trying and even if they serve the same purpose, they have something different they offer that could satisfy the need of a particular consumer for as long as the product is in use. The other behaviour is “dissonance avoiding” (Sweeney, Soutar, Johnson, 1996) where making sure it is done right the first time is required and such items could be expensive.  As a result, consumers do not buy them frequently and some examples to cite are diamond rings, cars, etc where the difference of using different kinds of the products is not highly traceable, except that there might be a brand loyalty or it is trendy to do so. (Kasper, 1988)

In today’s world there are many sellers as well as buyers and when the consumers develop the need they have to go out and buy certain products.  Alternatively, even if they do not have an immediate need the various sellers will usually take a pre-emptive step of making consumers “aware” of what they are offering.  Such steps could have various outcomes and they start by making consumers aware of what they have for sale and it is up to the consumers to evaluate if they have the need for the products or not.  The idea behind the advertising is either to create such a need and make consumers buy or simply to create the awareness.  When the need arises and it is time for the consumers to start comparing and evaluating, the advertised product will be among the products other manufacturers are advertising.  Hence, what advertisers are creating is a brand awareness environment around consumers when they start out and a knowledge base that will stay with consumers until it is time to put it to use.

The next stage in the process of advertising after creating the awareness is the “consideration” stage where consumers will know the existence of the product and what it avails, how much it costs, who is behind it, where to find it etc.  It is at this stage consumers would investigate if they have a need for the advertised product although they might not know if they would have a need for it in the future.  The next stage that comes in is the “affirmation” stage where consumers know the existence of the product, had asked themselves if they have an immediate need for it or not and they might have been convinced that they will give it a try in the future, but in the meantime they might want to know more about the product, in case there are similar products that give equivalent or better value.

The “confirmation” stage is when consumers were able to see more of the advertisements, probably have talked about it with other consumers and are convinced that the product has a good value that is worth considering when the time is right, which could be immediately or when the need arises.  Normally this is the stage almost all passive consumers stay in for a long time before they move to the next stage.  What comes next is “action” and it does not matter when it takes place in the life of the consumers, but they will somehow be able to buy the product for the first time.  At this stage it is possible to do a much deeper examination of the situation at hand by going back to the previous stages because there are also competing products that could be given consideration since they could avail similar values.  After making the evaluation, if everything has come together and the need is there, then it is possible that the consumers could take action, which is buying the product.

After purchasing the product consumers need “reinforcement” in order to keep “cognitive dissonance” at bay and this is the role of the sellers.  Purchasing the product will enable the consumers to make decisions about their fulfilment level of the product they bought. [Dholakia and Morwitz, 2002) And once that satisfaction is there it needs to be fortified by “reinforcement”, which would be in a form of more advertising so that a continuation of using the product will be there and depending on the product and how durable it is, advertisers aim to make their products part of the lifestyle of those who are using them.  Here also what is important is innovation, which would mean to make consumers by the product repeatedly it needs implementing it on an ongoing basis. [5] And many products could be mentioned such as shaving gears, brand name clothes, food items, drinks, the list could go on where they will blend into people’s life style so that it will be easier for consumers to identify with them while using them. [6]

This will bring us back to the cognitive, habitual, and reinforcement aspect of consumer behaviour.  And the cognitive buying aspect is at work most of the time and is absent only when consumers buy on impulse or when thy buy habitually, because their decision making to buy a product or a service will have to be affected by internal and external factors.  The internal factors are more complicated since they are dependant on many factors that include their education level, the amount of money consumers generate, cultural back ground, their upbringing and their status in life and more.  All these and more are what make up the thinking and decision making power of individuals.  However, there are external factors such as advertising or what others are doing, in case of role models that could influence consumers’ decision making.  At times who is doing what might also influences consumers if they are identifying to a certain group of people and what they do could affect their decision making process. [7] The cognitive buying behaviour will make a big difference when making decision to buy high end value items simply because such items cannot be thrown out if some mistake in the decision making process had been made. A TV set for example has so many days to go back and get a refund or where exchanging it is possible. (Soutar and Sweeney, 2003)

The habitual buying is mostly suitable for perishable goods such as foods and any other non-durable goods that have limited use, because if a different kind of cereal is picked and it was not up to par in its taste with previous products, it could be dropped next time, but if it is found to be up to par or better than previous experiences it is possible to make decision about continuing using it based on the finding.

Hence, the conclusion is the cognitive, the habitual and the reinforcement stages of consumers buying habits always go together and sellers will have to be aware of them and utilise them in full force.  Those who are involved in advertising will also have to know which behaviour to cater to when they advertise because it is much easier to sell habitual goods than high end value goods even if all of them require to be sold through the mentioned advertising stages to be effective.  Those who put these methods to work effectively will be getting the better share of the consumers’ spending, even if at times putting a product on the crowded shelf is enough.  But since it is possible to tune people to make certain products part of their lifestyle, advertisers who do not focus on such methods among the other behavioural aspects could lose a lot of business and lose many repeat purchaser. [8] On the other hand, those who fail to recognise Maslow’s hierarchy need theory will fare poorly in targeting consumers’ needs.

REFERENCE

Dholakia, U.M., Morwiz V.G., 2002.  Customer Satisfaction Measurement. Journal of Consumer Research. 29(2)

Kasper, H, 1988.  On problem Perception, Dissatisfaction and Brand loyalty.  Journal of Economic Psychology.

Soutar, G., and Sweeney, J., 2003. Are There Cognitive Dissonance Segments?

Australian Journal of Management. 28 (3),

Sweeney, J., Soutar, G., and Johnson, L., 1996. Are Satisfaction and Dissonance the same construct?  Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behaviour. 9, 138-143.

1.      Environmentally Sustainable Consumption. 2nd March  2007, http://www.env.leeds.ac.uk/~hubacek/leeds04/2.4PDFProceedings.pdf.

2.      Cognitive Dissonance 2nd March  2007, http://smib.vuw.ac.nz: 8081/WWW/ANZMAC2005/cd-site/pdfs/3-Consumer-Beh/3-Salzberger.pdf.

3.      Consumer Purchase Decision-Making Process. 2nd March  2007, www.rohan.sdsu.edu/~english/370/notes/chapt05/

4.      Buyer’s Behaviour. Durham. Associate Group Ltd. 2nd March  2007, www.da.group.co.uk/main/s6/st72773.htm

5.      Innovation and Competitiveness. 2nd March  2007, http://www2.druid.dk/conferences/viewpaper.php? id=456&cf=8.

6.      Cognitive Behaviour. 2nd March  2007, http://lily.bu.ac.th/~saranyapong.t/CHAPTER_7_Learning_Memory.pdf.

7.      Adaptive Learning of Consumers. 2nd March  2007, http://homepages.ed.ac.uk/hopkinse/consumer.pdf.

8.      Repeat Purchase Market. 2nd March  2007, http://smib.vuw.ac.nz: 8081/www/ANZMAC2000/CDsite/papers/h/Harris2.PDF.

 

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