Thesis on "Brand Loyalties in Alcoholic Beverage Markets"

Thesis 35 pages (8770 words) Sources: 1+

[EXCERPT] . . . .

Brand Loyalties in Alcoholic Beverage Markets

Brand Loyalty Analysis

The perception of alcoholic beverages depends, to a great degree, on the personal experiences with alcohol consumption. Had the observer witnessed a family tragedy created around alcohol consumption, then his perception would be a strongly negative one. If on the other hand, the individual consumer has not had a negative experience with liquors, then he might consume the beverages as a means of recreation. But there is also the third category -- the alcohol addicts, whose numbers are increasing at a global level and who lose their lives, and those of the others, for a drink or because of a drink.

In a context of the recognized disastrous impacts of excessive alcohol consumption over the life of the individual, but also the general well-being of the community, several state regulators have militated for the development and implementation of stricter controls. Their efforts are generally recognized as the temperance movement, and the final materialization was the implementation of state monopolies and controls in 18 of the American states.

As numerous studies and surveys have revealed, the highest level of alcohol consumption was observed among college-age individuals. This category is responsible for the highest numbers in any category of alcohol consumption. The highest number of binge drinkers can be attributed to this age group.

But there are consumption differences regarding the customer segment represented by college students. It has been observed that males drink more than females. Also, there are differences in relationship with race. It seems that the most numerous heavy drinkers are White. Sport plays a very important role in determining the alcohol consumption. This is because colleges and universities with sports profiles have reported higher alcohol consumption levels where their students are concerned.

However, it is important to also study the causes that lead to excessive alcohol consumption among college students. Most of them drink because of social issues. They think it is easier to adapt and to integrate within a group in college if alcohol in involved.

Many college students also drink because they think it helps them cope with their problems. This is why first year college students develop an increased risk of excessive drinking. Alcohol abuse is also higher in the case of colleges and universities where there are fraternities and sororities, which encourage this type of behavior.

2. Alcohol consumption and marketing

The consumption of alcohol can be traced back to the first evidence of human settings in history, having been present in most of the countries of antiquity. Alcoholic beverages were initially proliferated through religious rituals, but the populations soon found pleasure in consuming the liquors outside religious ceremonies. The ancient gardeners are the ones who, through their curiosity and access to plants, opened to door to alcohol making (Jurkiewicz and Painter, 2008).

An interesting historic fact about alcohol is that it was given by colonists to aboriginals in order to better subdue them. In his The Last of the Mohicans, James Fenimore Cooper describes how the firewater was brought by the Dutch and how it caused the Indian tribes to lose their territories. "The Dutch landed, and gave my people the fire- water; they drank until the heavens and the earth seemed to meet, and they foolishly thought they had found the Great Spirit. Then they parted with their land. Foot by foot, they were driven back from the shores, until I, that am a chief and a Sagamore, have never seen the sun shine but through the trees, and have never visited the graves of my fathers" (Cooper, 1992).

At an international level, the consumption of alcohol has manifested differently and has as such had different impacts on the populations. While the Muslim religion is the sole one to clearly forbid alcohol consumption, aside for the adjacent regions, most populations consume liquors. It is however true that the tool taken on each state was different. While there were states in which the consumption of alcohol was minimal, and as such so were the effects, there are also global regions in which the levels of alcohol use are high. In Europe for instance, the high levels of alcohol consumption are associated with the declining health of the population. In the United States however, they are blamed for the incremental levels of crimes of violence (Jurkiewicz and Painter).

On the American continent, alcohol consumption is different based on location. In Southern America for instance, the culture of alcohol is pegged to the region's history. Many drinks are prepared according to Inca recipes or Spanish and Portuguese recipes (former colonists), and they are treasured as cultural components. In Northern America however, drinking has taken a more commercial and modern stand, and is predominantly based on the more relaxed European style of consuming alcohol. Still, what should be remembered is that alcohol is not considered as a family friendly product; it is not part of every meal -- like it generally is in France -- and there is a high limit of 21 years to drinking alcohol (Alcohol Issues, 2010).

As with most other things that are enjoyed by the populations, there were several individuals who got more involved in the production and distribution processes. The outcome was the creation of a strong, multi-billion dollar, liquor industry. This industry attracts its consumers through catchy advertisements and other marketing strategies.

Alcohol advertising is one of the most disputed matters within the modern day marketing practices, and is one of the most regulated fields.

3. State regulations

Regulations of alcohol consumption are almost as old as the actual act of drinking alcohol and can be traced back to antiquity. Within the United States, the commencement of alcohol regulations occurred during the Prohibition of 1920-1933 and represented the result of the pressures from the temperance movement. The promoters of the movement believed that the United States had been taken by assault by modernization and urbanization, and that alcohol consumption played a major negative part in the mental and physical health of the population. The movement, established at the end of the eighteenth century, was initially formed from farmers, but its ideologies were eventually adopted by religious and political parties.

The Prohibition forbade anybody from manufacturing, transporting or consuming alcohol. The period offered organized crime groups the ability to build financial empires through bootlegging operations. The birth of the black market created devastating effects upon the already unstable economy, and President Roosevelt eventually repealed the eighteenth amendment and instated the 21st amendment (Heath). According to the new legislation, each American state was able to develop and instate whichever regulations it considered most suitable in respect to alcohol consumption, production and distribution. Since then, a series of laws have been developed. Today, 18 states are state control, while the rest of 33 are more permissive.

Alcohol consumption by state

Alcohol consumption is determined and influenced by a series of factors. Such factors include financial, geographic, psychological factors, and others. The alcohol consumption is directly influenced by the financial aspect. Consumers that drink more than average but dispose of lower financial possibilities will have the tendency not to reduce the amount of alcohol they use, but to orient towards cheaper beverages, of lower quality.

Also, there are countries where drinking certain alcoholic beverages is part of the country's tradition, for some it has even become a trademark. Although these countries report large consumption values, as seen from an average consumption's point-of-view, it does not seem to become a concern issue for these countries.

Such a situation can be observed in Russia, country that is famous for large amounts of vodka drank by its citizens. A similar situation can be observed in formers USSR countries. Also, Germany and the U.K. are famous for their production and consumption of beer. So are countries related to Germany.

In other areas of the world there is no alcohol consumption, like in Muslim regions. This is because of their religion, which forbids the consumption of alcoholic beverages.

In this U.S., the alcohol consumption varies from one state to another. In 2006, the alcohol consumption reached a total of 2.27 gallons of ethanol per capita (NIAAA, 2006).

The states that reported a 1.99 gallons alcohol consumption or below are: Alabama, Arkansas, Kansas, Kentucky, New York, North Carolina, Oklahoma, Tennessee, Utah, West Virginia.

The states that reported an alcohol consumption between 2-2.24 gallons are: Georgia, Indiana, Iowa, Maryland, Michigan, Ohio, Pennsylvania, Texas, Virginia, Washington.

The states that reported an alcohol consumption between 2.25-2.49 gallons are: Arizona, California, Connecticut, Illinois, Maine, Minnesota, Mississippi, Missouri, Nebraska, New Jersey, New Mexico, South Carolina, South Dakota.

The states that reported a consumption of alcohol of 2.50 gallons or over are: Alaska, Colorado, Delaware, District of Columbia, Florida, Hawaii, Idaho, Louisiana, Massachusetts, Montana, Nevada, New Hampshire, North Dakota, Oregon, Rhode Island, Vermont, Wisconsin Wyoming.

In addition to this, the percentage of binge drinkers by state is the following: Wisconsin -- 21.8%, North Dakota -- 20.4%, Minnesota -- 19.8%, Iowa -- 18.9%, Rhode Island -- 18.2%,… READ MORE

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