Lion Company in New Zealand
- Pages: 5
- Word count: 1129
- Category: Life
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Lion company produce, market and sells their alcoholic drinks. In New-Zealand, the company is prominent in the sales of wines, beer, cider, and other non-alcoholic beverages. The company can reach a broad spectrum of customers from all over the county because it has numerous retail stores spread all over. Currently, the company is based in Auckland, New Zealand. Every brewing company aims to be the leading market player in the industry. Therefore, they are keen to observe key and necessary attributes that would boost loyalty for existing and potential customers. These attributes include the distribution of products, promotion, and differentiation of drink’s taste and diversification of brew brands.
In New Zealand, there are many competitors in the brewing industry. Despite Lion Brewery enjoying market leadership, the enterprise faces competition from other thriving companies. Some of these competitors include DB Breweries limited, Emerson Brewing company, Galafrey wines, Speight’s Brewery, Paramount liquor, Moa Brewing Company, Grosset among many others.
Lion Brewery can differentiate its operation from those competitors in various ways. The company offers a wide range of alcoholic drinks with different flavors which facilitates customer’s satisfaction. The company also continually supports innovation and experimentation which fosters to increase opportunities in the industry through increasing alcohol consumption. The company’s urge to innovate has increased its market share and acceptance, and thus outdoing its competitors. The company is dedicated to ensuring that customers’ taste and preference are catered for despite the location. Additionally, the company has well-established distribution channels across the country which boost their reliability.
The company has adopted a differentiation strategy to make it unique when compared to its competitors. For instance, the company directly or indirectly supports New-Zealand citizens through job creation and purchasing of agricultural products. Furthermore, the company takes part in environmental improvement and caring for natural resources through financial assistance to the government agency spearheading the campaign. Typically, Lion-Beer, spirits and wine company is unique because it incorporates modernity, assures quality in every bottle, Flavors the drinks differently to cater for varying taste and preference among the buyers, and prepares the drinks with finest ingredients that are locally available in the country.
Lion Brewery produce various brands such as Wither hills, Speight’s corona, Johnnie Walker, Bacardi, and others. The products are marketed towards male and female adults, Individuals at middle age who usually drinks, College students and the trendy, Individuals who earn high-income and sophisticated women and men who consume high alcoholic drinks.
Lion Brewery have devised new techniques to deal with shocks from changing market. For instance, it has been determined that for market development, staff morale is the key to facilitate work efficiency. Additionally, for product development and differentiation, the company will encourage innovation through rewards and works towards producing new quality products to meet the current demand. In case of high production cost and low sales, the company needs to review the viability of some product lines to cut the cost of producing and marketing.
New market segment
Companies considering the growing concern cares about the future of the business. Although Lion Brewery contribute significantly to the economy, its operations are only spread in two countries. Therefore, the company’s services are below expectation across the world as compared to its competitors.
The market for the beverage is continually growing across the globe. Hence, Lion Brewery need to develop future strategies to tap the export market. For instance, some countries offer tax exemption and subsidies for beverage drinks. The company has gained dominance in the New Zealand market due to the attractiveness of brew flavors and brands and thus, expansion to venture into the global market would be successful. However, exportation requires greater capacity and high investment which might be a challenge.
In market development and product diversification, various stakeholders observe the activities of the company. These include customers, suppliers, and employees. They often track the company’s progress. In the process of product development, Lion Brewery need to maintain the loyalty of the existing customers. This is possible through modifying and innovating products for the current customers basing on their desired taste. Additionally, the company should adopt a diversification strategy via innovating purely new product. Diversification enables the company to reach and serve a diverse spectrum of customers and thus reduce the chances of over-reliance. On the other hand, the company can always seek feedback for the products. Feedback enables collection of suggestions from the loyal customer about their needs and comments on the existing products. Therefore, it allows innovation of product basing on the customer’s suggestions and advice.
The global market is broad with a diverse population. Therefore, Lion Brewery need to assess the customer’s need before entering the market. Customer analysis will help determine the available gab which the company is likely. Production of varying flavored brews is an added advantage to the company. The company should first ensure that the employees are motivated to sell the products through internal marketing which takes the form of training, marketing, and sales meetings. The principal aim for internal marketing is to ensure employees focus on clients, involve them in products marketing, keep them updated and improve their satisfaction as well as performance.
Lion Brewery like any other brewery company, it aims to gain a competitive advantage. Therefore, the company should adopt strategies which are unique in handling new customers and still maintain the existing customers. Customers have varying needs at different times, that is, before sales, at the point of purchase and after sales. Hence, the company should strive to attain, maintain and satisfy clients.
As part of reinforcing products positions and maintain brand awareness, Lion Brewery has launched a promotion campaign. Increased promotional across the world will help Lion company to gain market share and grow consumption of its products despite intense competition. Besides, the company should strategize to improve their distribution channels across the world by setting out stores, franchise and also buy out other companies. Reliable distribution boosts the trust of suppliers and consumers and thus increase the probability to attain high market share.
Diversification in the global market is a strategy where the company focuses on various dimension that customer’s value most. For instance, Lion Brewery should analyze the market and identify crucial attribute for clients. Then, the company should uniquely position itself to satisfy those need. The reward for differentiation is loyalty, and the brand gains competitive advantage through market expansion.
- Bauer, P. (2017). TVNZ-NZ Marketing Awards 2017: Lion’s journey to reignite the beer market. Retrieved from https://stoppress.co.nz/features/tvnz-nz-marketing-awards-2017-lion-reignites-beer-market
- Ebneth, O., & Theuvsen, L. (2008). Globalization of the Brewing Industry Trends, Perspectives and Strategies.
- Herald. (2017). Lion ups market share, volumes despite falling beer consumption. Retrieved from https://www.nzherald.co.nz/brewing-and-liquor-industry/news/article.cfm?c_id=136&objectid=11493030
- Ibisworld. (2018). Beer Manufacturing – New Zealand Industry Research Reports | IBISWorld. Retrieved from https://www.ibisworld.com.au/industry-trends/nz-market-research-reports/manufacturing/beer-manufacturing.html
- Lion Pty Limited. (2018). Lion New Zealand | Our Business | About Us | Lion. Retrieved from http://www.lionco.com/about-us/our-business/beer-spirits-wine-new-zealand