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Product Assessment - Essay Example
Author : kenna44
Pages 6 (1506 words)
Title Page Essay Product Assessment: Decline of sales of beer Dominique Manguoa English October 24, 2012 Product Assessment: Decline of Sales of Regular Beer Product decline is a part of the product cycle that indicates the product has reached its final stage after maturity…
Doing so would need an assessment to define the product’s weaknesses and strength in order to survive. This topic tries to analyze why sale of beer has dropped, and tries to design alternative strategies to power growth once again. Discussion of the product in relation to its current TARGET market demographics USING US CENSUS DATA Beer is one of the products that saw a sales decline in developed country but showed growth and development in the emerging economies. An overview of the beer growth trend shows North America and Western Europe trailing behind the emerging countries and Africa leading in terms of sales volume. Fig. 1 at left demonstrates the strength of beer sales by region. ` Fig. 1 Forecast five-year compound annual growth rate (CAGR) by region 2012-16 Source: Canadean cited in SABmillers According to an independent industry analyst cited in SABmiller’s report, China is considered as the biggest market for beer followed by other emerging markets. However, same report shows that although China is a big market, profit is so slim because of its very low beer pricing. In contrast, beer sales in South America remain profitable and show both growth and profitability. As indicated, there is a greater opportunity in beer sales in Brazil, Peru, and Argentina. ...