The Concept of Beverage Industry and Marketing

The Concept of the Beverage Industry

The beverage industry is categorized into 2 main types and 8 sub-groups. The two main categories include; alcoholic and non-alcoholic beverages. The alcoholic category comprises distilled spirits, wines, and breweries. The non-alcoholic category comprises soft drinks production and includes; soft drinks, water, fruit juice, coffee, tea bottling and canning, and also canning and boxing. Albeit beverages such as wines, beers, and tea having been around since generations from a thousand years ago, this industry advanced only the recent few centuries. Perceived as an aggregated category, the beverages industry is usually very fragmented. This is seen from the existence of many manufacturers, packaging techniques, procedures of production, and the resulting products. The soft drinks category is less fragmented but is rather concentrated. Despite the fragmentation, however, the changes that the industry has seen from 1970 are transforming the status (Stellman & Gillespie, 2012). This paper discusses the concept of the beverage industry and examines international marketing.

Since the beginning of the 20th century, the beverage corporations have undertaken evolution from being regional corporations which majorly produced products for domestic markets to the current day corporate giants making products for international markets. This transformation ensured as corporations within the beverage manufacturing industry embraced methods which enabled them to attain mass production allowing for expansion. In addition, this period in time experienced advancement in the packaging of the products and procedures which majorly enhanced the product life-shell (Stellman & Gillespie, 2012). Companies adopted better preservation methods like use of air-tight packages which averted moisture absorption that normally caused loss of flavor. The beverage industry plays a vital role in the expansion of economies (Stellman & Gillespie, 2012). This is because it provides employment opportunities for masses globally and individually, all beverage products bring revenues accruing to billions annually. In fact, coffee production in nations of small economies has become a vital economic pillar.  Moreover, coffee production is comparatively a simple procedure which comprises cleaning, roasting, grinding, and packaging but with modern technology complex procedures has heightened the speed of production and quality control tests.

International Marketing

International marketing refers to the practice of companies to apply marketing ideologies in more than one nation across their national border or in overseas countries. The basis of a company’s international marketing is its domestic marketing strategy, and due attention is accorded to identifying a market, targeting and segmenting, and making international decisions (Carter, n.d.). It can be described as a multinational process by which companies plan and execute its concepts in pricing, promoting, and distributing goods and services in order to build transactions satisfying personal and organization’s goals. Vast advances in technology signify that cultural and geographical communication barriers are being broken and any business can expand internationally. Thus, any person or company desiring to go to international markets are able to do that with varying degrees of success dependent on their ideology and research they input in the international strategy (Marketing Schools Organization).

International marketing can be viewed as a response to the expansion of business in relation to the changes in global and international communication, technology, and economy. While some companies have the financial capability to enter international markets on their own, others get involved in exports, partnerships and direct investments. While entering an international market, a company views any foreign resident as a potential client. However, foreign residents may have different purchase habits, preferences, and priorities compared to their usual clients. This brings a need to build an international marketing plan solely, by partnering, or by hiring marketing experts (Marketing Schools Organization). A research will be conducted which will inform the mission that the company seeks to undertake to allow maximization of potential in the newly entered market. A market is then chosen and the marketing strategy of the company is modified in line with the market taking into consideration the cultural differences. Finally, the company will keep reviewing the strategy quarterly to ascertain its success.

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