Challenges of New Product Development in the Alcohol Industry
1.0 Introduction
The beverage alcohol industry is consists of relatively large-scale producers and wholesalers who market alcoholic beverages to retailers who then distribute them through bars, restaurants and off-premise establishments for sale to consumers. Based on the available industry data of Euromonitor International, a leading business information company, the estimated global volume sales of beverage alcohol is 182.9 billion liters in 2004, showing a stable 1 – 2% annual increase over the 1999 – 2000 periods. The three main sectors of the industry are: beer, spirits and wine.
It is important to consider that competition in the industry is intensive, because the international brands will have to compete, not only with their co-multinational brands, but also must compete with the local brand. As a result, different alcohol beverages companies are focusing on improving the quality of their products, at the same time ensuring that they will be able to introduce something new to the customers, in order to meet the changing demands and preferences of their customers. There are different changes and forces in both local and global environment that affects the entire operation of different companies in the said industry. It is important to consider that innovation or research and development (R&D) are two of the most important aspects of marketing, and the most important aspects of the entire operation of any company. This is because, it enable companies to focus on the changing tastes of the customers, thus, by offering something new, the company will be able to maintain the satisfaction and loyalty of the customers.
This paper will focus on analyzing the different threats and issues that are related with the product development process in the alcoholic beverages industry.
2.0 Problem Statement
The alcohol beverages industry is among of the industries in the world that are facing criticism from many organizations in the world. One of the problems is the health risks and issues that are connected with alcohol. Another is the connection of drinking with many accidents, particularly car accidents (Riley 2002). In addition, it is also important to focus on the changing demands and preferences of the customers towards alcoholic drinks. This includes the changing market of the industry, focusing on different demographics such as age and gender. However, the most important aspect to be considered is the increasing pressure from the government and other organizations that are implement standards and policies that are related with the development of alcoholic products.
3.0 Aims and Objectives
This seeks to determine the different challenges that are related with the new product development in the alcohol industry. Specifically, this study will seek to address the following objectives:
- to show the common activities and processes involved in product development in the alcohol industry;
- to analyze the impact of the changing preferences and demographic groups of the consumers towards the performance and product development of alcohol companies;
- to evaluate the influence of government and legislation towards the development of new products in alcohol industries; and
- to recommend solutions and actions to be done in order to improve R&D process.
4.0 Methodology
The following subheadings describe the different parameters the research will follow:
Population:
- The study will gather data from marketing officers and managers of different alcoholic beverages in Ghana. A total of 20 officers and managers are targeted for the study.
Sampling
- The officers and managers will be selected in random sampling in order to prevent bias, at the same time, ensure that the entire population will be represented.
Instruments
- A structured questionnaire will be designed for the purpose of this research. It will contain about 20 to 30 items that will help to identify the different problems that are related with product development of the company;
- Interview will also be conducted in order to gather direct and detailed answers from the respondents.
References
Riley, D 2002, ‘Drink-Driving and the Alcohol Beverage Industry: Will Reducing Per Capita Consumption Solve the Problem in the United Kingdom’, Accident Analysis and Prevention, vol. 19, no. 6, pp. 449 – 462.
Saunders, M, Lewis, P & Thornhill A 2003, Research Methods for Business Students, 3rd ed., Prentice Hall, London.
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