Project Report Final

1Beer Field Project – Marketing Management Advanced

BEER FIELD PROJECT MARKETING MANAGEMENT ADVANDCE

Submitted By : (Group 19 & 20)Ayan ChakrabortyJingxian LuanMo ZhouSuman KhanalTanay GuptaThan Van TrinhWang Yizhuang

Table of Contents

1. INTRODUCTION …………………………………………………………………………. 01

2. QUALITATIVE ANALYSIS …………………………………………………………….. 04

2.1 NON USERS…………………………………………………………………………… 04

2.2 USERS…………………………………………………………………………………... 05

3. QUANTITATIVE ANALYSIS…………………………………………………………… 08

3.1 TOOLS USED…………………………………………………………………………. 08

3.2 SURVEY………………………………………………………………………………… 08

3.3 DEMOGRAPHIC INFO……………………………………………………………. 09

3.4 SURVEY RESULTS………………………………………………………………….. 10

3.5 IMPORTANCE OF ATTRIBUTES………………………………………………. 10

3.6 BRAND PERCEPTION…………………………………………………………….. 12

3.7 FISCHBEIN ANALYSIS…………………………………………………………….. 13

3.8 QUADRANT ANALYSIS…………………………………………………………… 17

4. CREATIVE ANALYSIS……………………………………………………………………. 20

4.1 SITUATIONAL ANALYSIS………………………………………………………… 20

4.2 PROMOTIONAL ADVERTISEMENTS…………………………………..…… 21

4.3 INNOVATION IN DISTRIBUTION CHANNELS…………………………… 23

5. CONCLUSION……………………………………………………………………………… 26

6. APPENDIX…………………………………………………………………………………… 27


1. INTRODUCTION

The aim of the field project is to perform a research on 3 chosen brands of the Beer industry

in Italy. Before we state our chosen brands, let us get familiar with beer industry of Italy.

Although Italy is a place of wine, beer is also consumed. According to Euromonitor, the beer

market in Italy is expected to increase in total volume at a CAGR of 1% over the forecast

period, while total value sales are expected to increase at a 2% CAGR. Heineken Italia SpA

led beer in Italy in 2014 with a 27% total volume share, followed by Birra Peroni Srl with a

21% volume share and InBev Italia Srl with 7%.In addition to the second leading brand

Heineken, Heineken Italia is owner of some of the major beer brands available in the Italian

market, including Moretti, Dreher, Prinz and San Souci. This portfolio of brands gives the

company an extremely diversified product range both in terms of products and price points.

We chose Corona, Heineken and Peroni as our 3 brands. We chose Heineken and Corona as

they are international brands and quite popular among beer lovers. We chose Peroni as it is a

local brand which is also available internationally and it would be interesting to understand

its performance against the internationally reputed brands.

Our project is divided into 3 parts:

1) Qualitative Analysis

2) Quantitative Analysis

3) Creative Analysis

Qualitative Analysis are performed on both users and non-users of beer. In depth interviews

are conducted to understand the perceived value drivers of beer consumers. Even non users

are interviewed to understand the reasons of not purchasing beer. From this part, we also

conclude with the most important attributes of beer which will be useful for the Quantitative

analysis.

Quantitative analysis is performed on actual users by using Fishbein and Quadrant analysis

techniques to assess brands’ positioning. We use the most important attributes of beer that we

found in the qualitative analysis for performing the Fishbein and Quadrant analysis.

Creative analysis is used to provide recommendations regarding “value innovation” for our

brand, Peroni. The recommendations are directed not only for current users but also for non-

users, hence strengthening the market positioning of Peroni in Italy.


Now, we will be discussing in details the 3 parts of our analysis in details:

2. QUALITATIVE ANALYSIS:

In order to understand customers’ purchasing motivation, we conducted 14 in-depth

interviews with randomly selected customers mostly among age 20 to 30, including both

users and nonusers. We chose this age group because it is easier to access, and they are more

motivated by our marketing strategies. Also, a study shows that the drinking pattern in Italy is

relatively stable among all age groups, with a peak between 24 and 34 years (Allamani,

Beccaria & Voller, 2010).

Out of 14 interviews, 10 were users and 4 were non uses. For users, the interview contained

questions about the criteria that why users choose to drink beer and things they take into

consideration while purchasing beer. This helped us to figure out the meaningful attributes

and what they get from drinking beer, so we can extract benefits and values drivers of

drinking beer. Similarly for non-users, we also asked about the reasons to prevent them from

drinking beer for nonusers, which might help companies alter nonusers to users if they

change certain attributes of beer. Among non-users two were users were non users of beer

only while they consume other alcoholic content while other two non-users were the one who

don’t consume alcohol at all.

What we found in common for both segments is that they both start from the basic attributes

of the product. In regarding to whether drink beer or not, both of them rely on taste. Users

like the taste of beer while nonusers don’t. From those answers we can almost say that taste is

the most important basic attribute for beer. Another aspect is that although some people do

not drink beer, the benefits or values they get from drinking other kinds of alcohol are

relatively similar with the ones who drink beer.

2.1 NON USERS

2.1.1 People who consume Alcohol but do not consume beer in particular

For non-users of beer, we are surprised to find that most of them do drink alcohol, just not

beer. They named a few alcoholic beverages they do drink, like wine or cocktails, which are

quite commonly seen in the market. Then we asked about the reasons for not drinking beer,

most of them answered that the beverage was too bitter for their taste. The respondents also


said that they prefer drinking wine over beer. They said they derive the same benefits of

achieving relaxation, attaining a sense of self reward and socialize amongst peers by drinking

other alcoholic beverages.

.1.2 Non users who don’t consumer alcohol

On the other hand, for people who do not consume alcohol at all, one of the reasons is related

to their health concerns. Some of them are actually allergic to alcohol, others are worried that

alcohol content is bad to for their health. But there are quite a few among them who are

willing to try beer if the alcohol content is removed and still has the taste of beer. Although it

is not easy to win over other non-alcoholic drinks among their choices, it is possible to

narrow this part of market gap. There already exits non-alcoholic beers in the market, the

corresponded companies need to make it more aware and more attractive to customers. There

also people think consuming alcohol is a complete waste of money. Two of the respondents

who did not consume alcohol felt that they do not require alcohol in order to relax or to

socialize. They felt that alcohol is a sort of chemical intoxication which not healthy. They felt

that they can achieve a similar sensation which people derive from consuming alcohol by

participating other recreational activities.

2.2 CUSTOMER VALUE CHAIN FOR USERS


Figure 1: Customer Value Chain

Figure 1 is the customer value chain for users. As seen above, taste is the most important attributes of

beer, for users as well as non-users. They can tell the differences of taste among brands, and choose

the taste they like. Interviewees also mentioned about the flavours and styles, one of them specifically

require the brand has varies of style to choose from as purchasing criterion. Those flavours and styles

can almost all be reflected in tastes. Unlike drinking water, it is hard to tell the taste differences so

companies who produce mineral water may need to work on other aspects, for example, the prices or

promotions. Nor like Coca-Cola, people already build strong emotion relations with the brand so that

it is hard for other companies with the same-taste-drinking products to enter. This result makes it

important for beer companies to pay attention to the difference of taste, and make yours stand out.

Apart from that, customers also consider other additive attributes like the design of the bottle or can,

colour, and the alcohol content or calorie count. Some interviewee mention they give importance to

bottle/can design so that it is easier to hold it while walking. Similarly some gave stress on the calorie

count of beer as it affects their fitness. Moreover most of the interviewee said that they drink beer for

relaxation so they think that alcohol content in beer is also important. These attributes seem less

important than the taste, but for customers who find it hard to differentiate between several tastes in

the current market or have no specific preferences, these attributes become the second level criteria,

which should never be ignored by companies.

2.2.1 BENEFITS OF DRINKING BEER

Obviously, the functional benefit of drinking beer is to ease thirsty, which is the same as all other

drinks, mentioned specially by one interviewee. She said, “Whenever I feel thirsty, I drink beer”.

She chooses beer to satisfy thirsty and it has a special taste according to her preference. Other

interviewees talked about drinking beer with friends in most occasions, even for most interviewees it

is their friends who drove them to drink beer for the first time. Cleary, one is strongly affected by

others around, and has a psychological need to be cared by others. Drinking beer make them feel

connected to friends and get involved in the crowds, which means that one of the psychosocial

benefits of beer is to help build an emotional bond between friends. One of them said, “Drinking

beer helps to have good conversation during several occasions” Even in some occasions, beer may

become the excuse to start a conversation between strangers. The second occasion when people drink

beer is during celebrations. Even when sometimes they feel silly to drink a lot of beer, but it makes

them happy and relieved. Sometimes with friends, which is correspondent with the first benefit, and

sometimes alone, when use beer to express happiness.

Another psychosocial benefit people usually get from drinking beer is that they feel relaxed. Some

interviewees said that they felt like drinking beer after a day’s of tiring work. They use beer as a tool

to temporarily forget the tiring days and escape from the reality. The alcohol content in beer helps


ease the nerve. There are even occasions when people get excessively drunk on purpose by drinking

beer to escape from the reality.

2.2.2 VALUE DRIVERS FOR DRINKING BEER

One of the values people gain from drinking beer is happiness and affectionate. Many of them said

they felt happy, either drinking alone or with friends. So with beer, they achieved the psychological

states of being happy, and it is pursued by most people as the terminal value. Another value people

get from it is affection from family and friends. When people drink with friends or families, they feel

being cared and noticed, which comes from the affection of others around.

An interesting point is that although non users of beer usually do not choose wine or cocktail as the

drink to ease thirst, because these type of alcohols have higher alcohol content, but they do gain

similar benefits and values from consuming other alcohols as they do from beer. They also drink other

alcohols with friends and families. This indicates that the benefits and values people get from drinking

alcohol, are somewhat disconnected with the taste of the alcoholic beverages. Although we discussed

that taste is important, but it is easy for competitor to imitate the taste and take over the market share,

only the emotional bond between brand and customers stays strong. So as for marketing, company

should not only promise a good taste and other functional attributes, but more importantly focus on

the emotional benefits and values, to maintain a good customer relationship and build customer

loyalty, which will be discussed in detail later in marketing innovation part.

2.2.3 MAJOR ATTRIBUTES

In order to select the major attributes from different attributes cited by interviewees about the beer, we

used a frequency distribution table, where we plotted the number of times the interviewee cited the

particular attribute during the interview. This helps to understand the attributes which the interviewees

were giving more focus during the interview.

Respondent Number(Users only)

Attributes 1 2 3 4 5 6 7 8 9 10 Total countTaste 3 1 2 3 2 4 5 2 3 3 28

Aroma 0 1 0 1 1 0 0 1 0 1 5Colour 1 0 0 0 0 0 1 1 1 1 5Foam 2 1 1 0 1 1 1 1 1 0 9

Bottle/Can Design 0 2 1 0 3 1 2 0 2 1 12Calorie Count 1 3 2 3 2 3 2 2 2 0 20

Alcohol Content 2 1 1 1 1 1 2 0 1 3 13

Figure 2: Frequency Table for attributes


From the above table it is clearly visible that Taste, Calorie count, Bottle/Can design and Alcohol

content are the major attributes that consumers seek in a beer. So we decided to take these four

attributes for the quantitative analysis.

3. QUANTITATIVE ANALYSIS

After the qualitative analysis, we had a list of four most important attributes of beer which

people consider while procuring.

The four most important attributes:

1) Taste

2) Alcohol Content

3) Calorie Count

4) Can/ Bottle Design

We had chosen three brands which are as follows:

A) Peroni

B) Corona

C) Heineken

We have taken our brand to be Peroni. We will compare Peroni with other brands and find its

position in the market.

3.1 TOOLS USED

There are various tools which can be used to assess the positioning of a brand in the market

as compared to its competitive brands. This comparison is based on the perceptions of the

consumers of the product. We have used the following tools for the above activity:

I) Fischbein Analysis

II) Quadrant Analysis

3.2 SURVEY

We also had to understand the importance of the different attributes in numerical form. To

understand the perceptions and importance, we had conducted a survey. The sample size of

the survey was 73.


SURVEY FACTS:

Respondents: 73

Geography: Worldwide

Objective: Importance of attributes, Perception for the 3 brands w.r.t the attributes

3.3 DEMOGRAPHIC INFORMATION

The 73 respondents came from all over the globe. They were from various age groups,

different countries and professions.

The following graphs illustrate in a better way the demographic diversity of the survey:

Figure 1 represents the country wise demographic representation of the survey. 30% of the

respondents were from Italy. 21% of the responses came from China followed by 19% from

India. There were also nationals from Germany, USA, Singapore and Vietnam who took the

survey.

31%

21%19%

11%

3%3%3% 10%

Countrywise Responses(%)

ItayChinaIndiaUSAGermanySingaporeVietnamOthers

Figure 3: Country wise Responses

In figure 2, there is a gender wise response analysis of the survey. 61% of the respondents

were male which 39% were female.


39%

61%

Gender-wise Responses(%)

FemaleMale

Figure 4: Gender wise Responses

Figure 3 demonstrates the age wise responses of the survey. 50% of the respondents were

from the age group 21-24. 35% of the people who took the survey were between 25-28 years.

So, around 85%. Out of the respondents were between ages 21 to 28 years.

4%

50%39%

4% 3%

Age wise Responses (%)

≤ 2021-2425-2829-32≥33

Figure 5: Age wise Responses

3.4 SURVEY RESULTS

The results of the survey consist of 2 parts:

1) The importance of attributes

2) The perception for the 3 chosen brands w.r.t the 4 attributes

3.5 IMPORTANCE OF ATTRIBUTES


Out of different attributes we found during the qualitative research, we tried to find the

importance of four major attributes. We asked the consumer about how much importance

they give to these attributes on a scale of 1-7 while purchasing a beer.

Relevant attributes for the customerImportance(1 to 7): Average within our

target segmentTASTE 6.0

ALCOHOL CONTENT 4.5

CALORIE CONTENT 2.9

BOTTLE/CAN DESIGN 4.3

Figure 6: Importance of Attributes

TASTE

ALCOHOL CONTENT

CALORIE CONTENT

BOTTLE/CAN DESIGN -3.0

2.0

7.0

Importance of Attributes

Figure 7: Radar Chart-Importance of Attributes

As per the result of the survey, we found out the consumer give maximum importance to

taste while purchasing beer. On a scale from 1 to 7, the importance of TASTE is 6.0. After

TASTE, consumer alcohol content is the most important attribute in a beer. We separately

asked out respondent whether they prefer high, medium or low alcohol content. We found out

that consumer per beers with medium alcohol content. This can be attribute to the finding of

the qualitative survey that majority of the consumer drink beer for refreshment and during

social gather so that they can stay within the control. Moreover we see the gender specific

preference of alcohol content in a beer, male prefer mild and strong beer while female prefer

light and mild beer.


Alcohol Content

Percentag

e

Light (Low alcohol Content) 17

Mild (Medium alcohol Content) 64

Strong (High alcohol Content) 19

Figure 8: Preference of Alcohol Content

Similarly costumer do care about the bottle/can design while purchasing a beer. On a scale

from 1 to 7, the importance of bottle/can design is 4.3. Among the four major attributes that

consumers care about while purchasing a beer, calorie count is the least important. On a scale

from 1 to 7, the importance of calorie count is 2.9. Female consumer seems to give more

importance to calorie count as compared to male consumers.

3.6 BRAND PERCEPTION

Relevant attributes for the customer

PERONI(1 to 7): Average within

our target segment

HEINEKEN(1 to 7): Average within our target segment

CORONA(1 to 7): Average within our

target segment

TASTE 4.3 4.6 5.0

ALCOHOL CONTENT 4.2 4.6 4.1

CALORIE CONTENT 4.5 3.9 4.0

BOTTLE/CAN DESIGN 3.9 4.9 5.2

Figure 9: Brand Perception

Figure 9 illustrates the responses of the perceptions of the respondents for the 3 brands of

beer with respect to the 4 attributes we have chosen.

We see that for Peroni, the Calorie Count is the most perceived attribute. Taste and Alcohol

Content are the most important attributes for Heineken. Respondents like the bottle design of

Corona the most and then comes taste.

3.7 FISCHBEIN ANALYSIS


The Fischbein analysis is used to determine a measurable score representing customers’

attitude for the chosen most important attributes of the brands.


Importance(1 to 7): Average

within our target segment


target segment

HEINEKEN(1 to 7): Average within our target segment

PERONI(1 to 7): Average within our

target segment

TASTE 6.0 5.0 4.6 4.5ALCOHOL CONTENT 4.5 4.1 4.6 4.2CALORIE CONTENT 2.9 4.0 3.9 4.5

BOTTLE/CAN DESIGN 4.3 5.2 4.9 3.9

Expected Value 82.4 80.9 75.9Value index 0.92 0.94

Figure 10: Fishbein Analysis

In figure 10, the first column contains the 4 most important attributes of beer. The second

column consists of the average importance of each attribute (average of all the respondents of

our survey). From the 3rd column through 5th column, we have the average perception of

customers regarding the attributes Taste, Alcohol Content, Calorie Count and Bottle/Can

Design for the 3 brands Corona, Heineken and Peroni.

3.7.1 OUR BRAND

We will perform our analysis considering PERONI as our brand. This means that we will

compare Peroni with Corona as well as Heineken and analyse the results accordingly. The

analysis and the results are presented later in the report.

Present price of the 3 brands

Brand Price( per 6 pint bottles pack)CORONA € 8.84

HEINEKEN € 4.99PERONI € 3.99

Figure 11: Market Prices

3.7.2 EXPECTED VALUE


Expected value is the value which a customer infers from a particular brand or product during

the customers’ purchasing process.

EVb=∑1=1

n

Ii×Pb

EVb = Expected Value for Brand

Ii = Importance associated with the ith attribute

Pb = Beliefs about the performance of Brand B with regard to the ith attribute


Importance(1 to 7): Average within our target segment


target segment

HEINEKEN(1 to 7): Average within our

target segment

PERONI(1 to 7): Average within our

target segment

TASTE 6.0 5.0 4.6 4.5ALCOHOL CONTENT 4.5 4.1 4.6 4.2

CALORIE COUNT 2.9 4.0 3.9 4.5BOTTLE/CAN DESIGN 4.3 5.2 4.9 3.9

Figure 12: Expected Value

If we take the attribute Alcohol Content from the table above (Figure 12) we see that the

respondents have rated the importance of the attribute at 4.5 from a scale from one to seven

which means alcohol content has been rated the second most important attribute in

comparison to the other attributes. Similarly if we see respondents have rated the

performance of brands with regards to each attribute in accordance to their independent

beliefs. Using weighted mean we can find the expected value of each brand as seen below.

Expected Value of Corona Brand:

Taste 6.0 x 5.0= 30.09

Alcohol Content 4.5 x 4.1= 18.45

Calorie Count 2.9 X 4.0=11.68

Bottle/ Can Design 4.3 x 5.2=22.18

Total Expected Value 82.40


Expected Value of Heineken Brand:

Taste 6.0 x 4.6=27.90

Alcohol Content 4.5 x 4.6=20.80




Expected Value of Peroni Brand:

Taste 6.0 x 4.5=27.00

Alcohol Content 4.5 x 4.2=18.90




The above calculations indicate that Corona have the highest expected value of 82.4, whereas

Heineken and Peroni come in second and third position with expected value of 80.90 and

75.9 respectively.

3.7.3 VALUE INDEX

Based on the above calculated expected value, we calculated the value index for Peroni. The

value index is calculated as

Value index = (Our Expected Value)/ (Competitor’s Expected Value)

Now the value index of Peroni with respect to Corona is as follows

= (Peroni’s Expected Value)/ (Corona’s Value Index)

= 75.9/82.4

= 0.92


This means that Peroni is perceived as 8% (1-0.92=0.08) worse than Corona. Ideally at these

condition the price of Peroni should be 8% lower than the price of the Corona.

Similarly the value index of Peroni with respect to Corona is as follow

= (Peroni’s Expected Value)/ (Heineken’s Expected Value)

= 75.9/80.9

= 0.94

This means that Peroni is perceived as 6 %( 1-0.94=0.06) worse than Heineken. Ideally at

these condition the price of Peroni should be 6% lower than the price of the Heineken.

3.7.4 INDIFFERENCE PRICE:

Based on the perceptions derived from the survey, we understand that customers perceive the

brands differently. The Expected Value and Value Index can help us find the Indifferent

Price. Indifferent Price is the price of our product (PERONI) that makes the customer

indifferent as to whether to choose Peroni or our competitor’s product.

The formula below describes Indifference Price:

Indifference Price = Competitor’s Price × Value Index

The present price of Corona in the market is € 8.84, then the indifference price for Peroni

would be:

Indifference Price Peroni w.r.t Corona = € 8.84 × 0.92 (where 0.92 is the Value Index of Peroni w.r.t

Corona)

= € 8.14.

So, at € 8.14, the customer is indifferent as to whether to choose Peroni or Corona.

Similarly,

The present price of Heineken in the market is € 4.99, then the indifference price for Peroni

would be:

Indifference Price Peroni w.r.t Corona = € 4.99 × 0.94 (where 0.94: Value Index of Peroni w.r.t

Heineken)

= € 4.68.


So, at € 4.68, the customer is indifferent as to whether to choose Peroni or Heineken.

The table below (Figure 13) gives the indifference price of Peroni.

Indifference Price w.r.t Corona 8.14

Indifference Price w.r.t Heineken 4.68

Figure 13: Indifference Price

3.8 QUADRANT ANALYSIS

The quadrant analysis is used to simultaneously analyse which attributes are important to

consumers and how consumers rate particular brands according to those attributes.

There are 5 steps in the quadrant analysis. All the steps are enlisted below:

Step 1: Calculation of average importance of attributes

Average Importance of attributes is calculated as the simple mean of importance of all the

major attributes identified as above.

Relevant attributes for the customer Importance(1 to 7): Average

within our target segmentTASTE 6.0

ALCOHOL CONTENT 4.5CALORIE CONTENT 2.9

BOTTLE/CAN DESIGN 4.3Average Importance 4.4

Figure 14: Average Importance of attributes

Step 2: Classification of attributes as per their importance

Now the attributes were classified based upon their actual importance and the average

importance calculated in the step 1.


Average importance: 4.4

Relevant attributes for the

customer

Importance(1 to 7): Average within our

target segmentDeviation from

average Remark

TASTE 6.0 1.6Above average

importanceALCOHOL CONTENT 4.5 0.1

Above average importance

CALORIE CONTENT 2.9 -1.5

Below average importance

BOTTLE/CAN DESIGN 4.3 -0.1

Below average importance

Figure 15: Classification of Attributes

As we can see from figure 15, the importance of taste and alcohol content is above average

importance whereas the importance of calorie count and bottle/can design is below average

importance.

Step 3: Selecting the main competitor

Even though the expected value of the Corona is the highest, the gap between the expected

value of our brand “Peroni” is significant whereas the gap between the expected value of

Peroni and Heineken is not very significant. Thus the main competitor of Peroni is Heineken

instead of Peroni.

Step 4: Relative Performance

Now for each attribute, we calculated the relative performance of Peroni as compared to

Heineken. The relative performance is nothing but the ratio between consumer beliefs about

Peroni and beliefs about Heineken.

Relevant attributes for the

customer

Importance(1 to 7): Average


PERONI(1 to 7): Average within

our target segment

HEINEKEN(1 to 7): Average


Relative Perform

ance


TASTE 6.0 4.5 4.6 0.97ALCOHOL CONTENT 4.5 4.2 4.6 0.91CALORIE CONTENT 2.9 4.5 3.9 1.16

BOTTLE/CAN

DESIGN 4.3 3.9 4.9 0.81

Figure 16: Relative Performance

Figure 16 above shows that, in the perception of customers on attributes taste, alcohol and

bottle/can design Peroni is performing 7%, 9% and 19% worse than Heineken. But if we

consider calorie count, in the perception of customer Peroni is performing 16% better than

Heineken.

Step 5:

Now, we use results of Step 2 and Step 4 and place each attribute into the following matrix.

Figure 19: Quadrant Analysis

From the above quadrant analysis, calorie count of Peroni is substantial competitive

advantage, taste is substantial competitive disadvantage whereas bottle/can design and


alcohol content are in marginal competitive disadvantage. For managers this would imply

that Peroni need to leverage the importance of calorie content, improve the perception of the

taste and close watch on the competitors’ move on the bottle/can design and alcohol content.

4. CREATIVE ANALYSIS:

4.1 SITUATIONAL ANALYSIS

There are three areas Peroni could improve to enhance its position within the Italy

market.

The first one is the ‘taste’ attribute. It was chosen to be emphasized because ‘taste’ is

considered as the most important attribute by the customer. However, ‘taste’ is a rather

subjective term which changes from customer to customer, therefore, it is difficult to

‘change’ people’ perception with regards to it. Instead, Peroni could slowly make small

impacts on how the customers perceive the brand in terms of its ‘taste’. This can be done

by having people from experts to casual beer drinkers to promote the taste of Peroni

Secondly, according to the results of the qualitative and quantitative analysis, ‘Calorie

count is one of the top 4 most important attributes; at the same time, Peroni also scored

the highest in this attribute among the three brands. Moreover, we also had a quick check

to see if the perception matches our actual calorie count. As shown in table below, Peroni

is indeed the lightest beer in terms of calories content as perceived by the customers.

On the other hand, having a healthy life style is becoming the hottest trend and more

importantly, a sustainable one. More and more people each day are working towards a

healthier lifestyle which then leads them to improve their eating and drinking habits. One

of the top concerns when it comes to these habits, is the calories count. Therefore, we

could take advantage of this and promote a positive image of Peroni’s Light range. This

can act as a first-mover opportunity for Peroni as other brands have not focused on this

attribute before.

Finally, using diverse range of products from heavy to light, traditional to different

flavors of beer, Peroni can introduce itself to non-users, encouraging them to try different

flavors for different occasion that Peroni has to offer.

Table below Caloric content in three brands: Corona, Heineken and Peroni


Figure 20: Calorie Content

4.2 PROMOTIONAL ADVERTISEMENTS

4.2.1 Video campaign call “Get Peroni’d” to reinforce the ‘Taste’ Attribute

Please click the link below to watch the video:

youtube.com/watch?v=9oYEWL2VcFc&feature=youtu.be

a) Target:

Demographic: consumers within Italy, from 21 – 28 years of age, both gender male and

female

Behavioral: All beer consumers; all frequency of purchase

b) Content

The video campaign is a collection of positive reviews from beer expert to casual

drinkers, addressing their thoughts on the great taste of Peroni beer. Besides compliments,

humor would also be used in the video to bring the message closer to consumers. The

video aims to deliver the message that the taste is refreshing, tasty with nice amount of


https://www.youtube.com/watch?v=9oYEWL2VcFc&feature=youtu.be

foam, and enjoyable among a wide range of customers, from young to old and experts

level to casual drinkers.

4.2.2 Video campaign to raise the importance of the ‘Caloric content’ attribute

a) Target

Demographic: consumers within Italy, from 21 – 28 years of age, both gender male and

female but mainly female.

Behavioral: health-conscious, active life-style, non-heavy drinkers

b) Content

The video is designed to deliver a message of healthy life-style by making a wise choice

in drinking. Using image of fitness coach and young people leading an active life-style as

example; to emphasize and increase the importance of having the same fit body by

considering ‘calories content’ in their drinks; while at the same time communicating the

message of not having to worry about ruining their diet while enjoying a beer with

friends.


4.2.3 Video campaign to convert non-users to user

a) Target

Demographic: from 21 to 60, both gender male and female

Behavioral: Non-users of beers

b) Content

Video is used to promote the wide variety of beers that Peroni offer for all tastes and

occasions. For example light beer for the light-drinkers or Lime flavors for the summer or

with certain type of food, etc. The main aim is to convince the non-users to have a try of

Peroni or encourage them to try with friends or in any occasions that they are in.

4.3 INNOVATION IN DISTRIBUTION CHANNELS OF PERONI

Innovations in distribution channels may take the form of truly new ideas, involving a

complete re-examination of the potentials and objectives at hand. The underlying source of

such a completely new idea may be a change in the available distribution technology.

Another source of inspiration to innovations in distribution channels is from alternative

means of operations that are used in other product or geographical markets.

Based on a Euromonitor report and our interviews, we concluded that consumers prefer to


purchase beer in grocery stores.

“Craft beers continue to encounter the favor of the Italian consumer base and major grocery

retailers have been capitalizing on this trend by dedicating increasing shelf space to these

types of products. Considering that all of Italy’s major grocery retailers are pursuing a

strategy that focuses on offering predominantly local products, which are considered more

sustainable from an ethical and environmental standpoint, local craft beers are becoming

more prominent on retail shelves. “

In order to observe the performance of Peroni on retail chains, we visit several supermarkets

of Milan and here are three main products available.

Figure 21: Peroni at Esselunga

However, we find that Peroni has taken a smaller shelf space than its main local competitors.

Figure 22: Beer Assortment at Esselunga

Due to the absence of some high-quality products like Peroni Gran Riserva Rosso Puro

Malto, we suggest that Peroni make the best of their APP CUORE PERONI by encouraging

the customers to find more information about our products scanning the QR code on the

retail displays


Figure 23: Peroni Application

One-third of Italians drink beer when they eat pizza and this applies to both men and women,

according to Assobirra. Italian consumers often like to eat pizza in restaurants with friends.

In recent years, several beer brands have been attempting to push consumption of beer both in

the retail channel as well as in the foodservice channel.

Our strategy is to franchise out the products to bar, nightclub, pizzeria and other foodservice

channel. We increase the visibility of Peroni products in these places. We suggest people to

download the application by offering them special offers in order to turn non-users into our

customers through scanning the QR code. Given the importance of presence among our

targets, the format of franchising could induce further purchases.

Metal cans are also appreciated by consumers for their convenience of use; however they

usually force consumer to finish the entire contents in order not to spoil the product. An

increasing presence of larger 500ml cans is being detected across all retail channels, while

smaller cans are usually preferred in on-trade outlets.

Figure 24: Beer Cans Assortment at Esselunga


Furthermore, we didn’t find metal cans of Peroni in supermarkets and neither on the official

website. But considering the beer report, we suggest that Peroni pays attention to it.

5 CONCLUSION

This report on the analysis of three beer brands available in Italy gives us an interesting

perspective of analyzing a product’s positioning among the users. We also analyzed what

were the reasons why non users did not consume beer. Through the quantitative and

qualitative survey followed by their analysis we discovered some of the main attributes that

the customer looks into while purchasing a beer. Finally we chose Peroni as our brand and

tried to find its relative performance in comparison to its closest competitor Heineken

through different tools like Fishbien and Quadrant analysis. This led us to understand the

competitive advantages and disadvantages of Peroni with respect to Heineken. By analyzing

the competitive positioning we came up with different innovative strategies to strengthen the

positioning of Peroni.


APPENDIX 1: QUESTIONNAIRE FOR SURVEY



APPENDIX 2: SOURCES

1. Allamani, A., Beccaria, F., & Voller, F. (2010, October 18). The puzzle if Italian drinking.

Retrieved December 6, 2015 from http://www.nsh.se/PageFiles/4910/465_478_allaman.pdf

2. http://www.euromonitor.com/beer-in-italy/report


http://www.euromonitor.com/beer-in-italy/report

http://www.nsh.se/PageFiles/4910/465_478_allaman.pdf

Project Report Final

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