"Global Beverage Survey 2012-2013: Market Trends, Marketing Spend and Sales Strategies in Beverage Industry " is a new report by Canadean that analyzes how global beverage industry supplier companies' media spending, marketing, sales strategies and practices, and business planning, are set to change in 2012-2013. This report provides the current size of the marketing and advertising budgets of global beverage industry suppliers and how spending by suppliers will change, providing insight into global marketing behaviour. In addition, the report also identifies future growth of buyers and suppliers and M&A activity. This report not only grants access to the opinions and strategies of business decision makers and competitors, but also examines their actions surrounding business priorities. The report also provides access to information categorized by region, company type, and size."
Introduction and Landscape
Why was the report written?
This report is the result of an extensive survey drawn from Canadean's exclusive panel of 144 leading global beverage industry executives. The report provides data and analysis on global beverage industry suppliers' media spending, marketing and sales strategies, and practices and business planning within the global beverage industry. This report includes key topics such as media channel spending outlooks, media budgets, marketing agency selection criteria, business challenges, and sales tactics of leading suppliers within the global beverage industry. The report also identifies suppliers' future growth, M&A, and investment expectations.Most secondary research reports are based on general industry drivers and do not understand the industry executives' attitude and changing behaviours, creating a gap in presenting the business outlook of the industry. In an effort to bridge this gap, Canadean created this primary-research based report by gathering the opinions of multiple stake holders in the value-chain of the global beverage industry.
What is the current market landscape and what is changing?
Executives from the global beverage industry expect increased levels of consolidation, with 46% of respondents anticipating that there will be either a 'significant increase' or an 'increase' in mergers and acquisitions (M&A) activities over the next 12 months.
What are the key drivers behind recent market changes?
M&A activity is expected to increase as a result of expansion activities, to leverage economies of scale, increase market share, strengthen their footprints in developing markets, and to achieve further synergies.
What makes this report unique and essential to read?
"Global Beverage Survey 2012-2013: Market Trends, Marketing Spend and Sales Strategies in Beverage Industry" is a new report by Canadean that analyzes how beverage industry supplier companies' media spend, marketing, sales strategies and practices, and business planning are set to change in 2012-2013. This report provides the current size of the marketing and advertising budgets of global beverage industry suppliers and how spending by global beverage industry suppliers will change, providing insight into global marketing behaviour. In addition, the report identifies future growth of buyers and suppliers and M&A activity. This report not only grants access to the opinions and strategies of business decision makers and competitors, but also examines their actions surrounding business priorities. The report also provides access to information categorized by region, company type, and size."
Key Features and Benefits
Project industry trends and revenue growth expectations in 2012 and make informed business decisions.
Drive revenues by understanding future product investment areas and key growth regions.
Uncover key challenges and opportunities and identify key actions required to maintain and win buyer business.
Formulate effective sales and marketing strategies by identifying how buyer budgets are changing and the direction of spend in the future. Better promote your business by aligning your capabilities and business practices with your customer's changing needs.
Secure stronger customer relationships by understanding the behaviour and changing strategies of industry buyers.
Key Market Issues
Global beverage manufacturer industry respondents identify China to be the most important region for growth among emerging markets, along with India and Brazil. Furthermore, Eastern Europe and the Middle East are considered the two most important emerging markets by respondents from beverage manufacturing companies. The majority of beverage manufacturers plan to foray into the Chinese market to expand their operations, as a result of increased consumption of branded beverages such as wine, beer, coffee, juice, and dairy products among Chinese consumers. In India, the consumption of beer, whisky, and wine have benefited from economic growth and strong demand from middle-class consumers, which has encouraged beverage manufacturers to tap the Indian market.
Among beverage manufacturers, 65% of respondents rate 'responding to pricing pressure' as the most important business concern in 2012, while 48% highlight 'market uncertainty'. Beverage manufacturers highlight factors such as lower shelf prices and rising commodity prices as pricing pressure issues. Respondents operating in North America and the Rest of the World identify 'regulatory change' and 'rising competition' as leading business concerns in 2012. Furthermore, respondents from companies with leading operations in Europe and Asia-Pacific region identify 'market uncertainty' and 'cost containment' as the leading business concerns in 2012.
The average size of the, annual marketing budget of global beverage industry supplier respondents is estimated to be US$3.5 million, as compared to US$2.5 million in 2011 and US$1.3 million in 2010.
Of respondents across the global beverage manufacturers' industry, 42% are 'more optimistic' about revenue growth for their company over the next 12 months than the previous 12 months. Reasons behind this include increased customer demand in emerging markets mainly China and India, demand for organic products, and adoption of sustainable sourcing strategies by beverage companies.
The optimism level in the global beverage manufacturing sector is expected to be fuelled by increased consumer demand towards health and wellness oriented beverage products, and the adoption of sustainable sourcing strategies by beverage companies.
'Corporate and brand websites' and 'email and newsletters' are expected to register the highest investment, as identified by 43% and 42% of respective respondents. Conversely, 'outdoor' advertisement, 'newspaper', 'radio', and 'television and video' are expected to attract the least investment.
'Customer retention', 'brand building or awareness', and increasing 'online presence' are identified as key marketing aims for global beverage industry supplier respondents, with 62%, 43%, and 33% of industry respondents expressing that these were very important aims.
An analysis of responses by beverage manufacturing companies reveals that 'new product development', 'machinery and equipment purchase', and 'IT infrastructure development' will record a significant increase in capital expenditure over the next 12 months.
The most significant strategies that respondents from global beverage industry supplier companies will employ in 2012 are to 'focus sales efforts on generating new business' and to 'invest in brand building', as agreed by 49% and 45% of industry supplier respondents respectively.
According to 33% of respondents from beverage manufacturing companies, headcounts in their organizations in 2012 are expected to increase steadily by up to 2%. However, 36% of respondents from beverage manufacturing companies anticipate 'no change' in recruitment activity in 2012, which indicates that slow economic development in developed countries and market uncertainty could reduce recruitment activity.