Market Research Fosters Brewery
A REPORT ON
FOSTER’S GROUP LTD
Written for: Mike Taafe
Title: Lecturer
Company: Swinburne University of Technology (TAFE)
Department of Marketing & Media, School of Business
Written by: Allen Chen, Matt Pandelis, Harris Wong & Eva Nguyen
Title: Student
Company: Swinburne University of Technology (TAFE)
Department of Marketing & Media, School of Business
Submission Date: September 2nd 2009
1
Symptoms of Problem:
Problem 1: Fosters Fall of Market Share:
|Fosters Group Market Share FIGURE 1.1 |
|2003 |2004 |2005 |2006 |2007 |
|4.3 |4.0 |3.5 |3.3 |3.1 |
As you can see from these statistics, which vary from 2003-2007, Fosters Group LTD market share for Foster’s Lager has slightly decreased each year. There are many reasons for this trend.
Firstly, you have to know why Fosters Lager market share is rapidly falling each year, it could be that consumers are buying competitors products rather than theirs, which means that consumers may be getting sick of the same old Fosters Lager, and have made the switch to a new innovative brand which has a new unique taste instead of the old same taste.
In relation to the marketing mix, pricing is a relevant factor as it explains why the market share for Fosters Lager is falling each year. As the cost for materials and ingredients for Fosters to create the beer rises, they must increase the price of their beer, and we all know that consumers don’t like to see price increases in products, and therefore, if they aren’t loyal to Fosters Lager, you will more often than not see them switch to a cheaper brand which might be less known but has a similar
FOSTER’S GROUP LTD
Written for: Mike Taafe
Title: Lecturer
Company: Swinburne University of Technology (TAFE)
Department of Marketing & Media, School of Business
Written by: Allen Chen, Matt Pandelis, Harris Wong & Eva Nguyen
Title: Student
Company: Swinburne University of Technology (TAFE)
Department of Marketing & Media, School of Business
Submission Date: September 2nd 2009
1
Symptoms of Problem:
Problem 1: Fosters Fall of Market Share:
|Fosters Group Market Share FIGURE 1.1 |
|2003 |2004 |2005 |2006 |2007 |
|4.3 |4.0 |3.5 |3.3 |3.1 |
As you can see from these statistics, which vary from 2003-2007, Fosters Group LTD market share for Foster’s Lager has slightly decreased each year. There are many reasons for this trend.
Firstly, you have to know why Fosters Lager market share is rapidly falling each year, it could be that consumers are buying competitors products rather than theirs, which means that consumers may be getting sick of the same old Fosters Lager, and have made the switch to a new innovative brand which has a new unique taste instead of the old same taste.
In relation to the marketing mix, pricing is a relevant factor as it explains why the market share for Fosters Lager is falling each year. As the cost for materials and ingredients for Fosters to create the beer rises, they must increase the price of their beer, and we all know that consumers don’t like to see price increases in products, and therefore, if they aren’t loyal to Fosters Lager, you will more often than not see them switch to a cheaper brand which might be less known but has a similar
References: IBISWorld Australia 2009, Beer and Malt Manufacturing in Australia, 04 March, IBISWorld, C2182, viewed 28 August 2009. http://www.ibisworld.com.au.ezproxy.lib.swin.edu.au/industry/default.aspx?indid=116 Profile n.d., Foster’s Group Ltd, viewed 28 August 2009, http://www.fosters.com.au/about/profile.htm History n.d., Foster’s Group Ltd, viewed 28 August 2009, http://www.fosters.com.au/about/history.htm About us n.d., Foster’s Group Ltd, viewed 28 August 2009, http://www.fosters.com.au/aboutus.htm Fosters n.d., Australian Beers, viewed 29 August 2009, http://www.australianbeers.com/beers/fosters/fosters.htm 9