Last updated: July 25, 2019
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Marketing For the New Castle Beer


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Marketing is known to be a core leader into a successful business whereby one should have more than a good idea of producing a nice product. So before launching a product in the market, one should be able to identify his markets and carry out research, to find out if consumers share the same desire to invest in the production.

Newcastle has been regarded as a sustainable company among most of the brewing industry in the UK, with big investments in the production of the New Castle beer. This production gives the company a wide range of consumers globally.  The industry is known to have established its market by the use of efficient protection of the supply of its raw materials thus keeping a record of reduced marketing costs in the business.

This company has achieved recognition of its products world wide, and also its marketing opportunities still have chances to increase. The company’s marketing has been able to come up with their target consumers. This is normally achieved by depending on the following factors; the consumers’ desires and preferences for the products. under this, we find that the management ensures that, before the product is promoted into the market, the characteristics of the products is always well defined to meet the needs of the consumers, the packaging of the products is made attractive to entice the customers to buy the product, the quality of the product is made perfect, that is, it should have the quality that matches with the prescription of the product in the market so that it can maintain the Newcastle beer consumers. [1]

We find that, Newcastle uses its business intelligence to change the market position of its products by shifting product sizes, package designs keeping in mind the changes of its customer’s tastes. For this reason, most of the products are made from barley, hops, water and yeast which make the beer a natural product. This is used to show the good quality of New Castle beer products which makes it a good factor in influencing the consumers to buy the products.

Market segmentation; The other factor that one should look into before making a decision on a particular market is the market segmentation or what is referred to as the environments. Markets can be segmented or targeted on a variety of factors including age, gender, location, geographic factors, demographic characteristics, and family life cycle, desire for relaxation or time pressures. Segments or target markets should be accessible to the business and large enough to provide a solid customer base. [2]

Therefore, a business must analyze the needs and wants of different market segments, before determining its niche. This segmentation should match differences in the buying behavior of the customers, under which the company should consider the product competition in the market, by stating plans on how the company is going to overcome the competitors’ strength by analyzing the number of competitors, their size, location and their strengths and weaknesses in the market. Therefore, one should be able to state what the customers seek in the products, whether it is the quality, price or convenience, through the company will be able to identify the needs and the benefits that the consumers will gain from the products.


Marketing mix

This is a decision making process that is meant to define the actual tactics to be utilized in achieving a company’s goal. It carries four elements which include; product, this is where the company’s aim will be to define the characteristics of its products in this case the beer that will enable the company to meet the consumers’ needs. Price, this is the decision on how the company should price its products. Promotion this is a process through which the company can make its products known to its customers. Lastly is the Place element which is the mechanism through which the goods of our company will be moved from the company to the consumers.[3]

Pricing- The Newcastle beer industry takes price to be an important element of the marketing mix, whereby they say that the price charged for a bottle of the beer determines whether the consumer will buy it, it also determines the level of sales achieved therefore, it is used as a parameter to show whether it will make a profit or a loss. Newcastle claim that it’s pricing is affected by various factors, including the state of the economy, what competitors are charging, the stage at which the products life cycle has reached and the most important is the price the market bears.

The company should decide on the following pricing methods to enable its products reach the marketing standards. Premium pricing, whereby, the uniqueness of the company product is defined. This pricing is normally high, and is totally used where there is a substantial competition of the product in the market. For the company to be able to gain the market share, it should also, apply the penetration pricing whereby, once the company achieves the market share, it increases the price of its product. In a situation where the company’s need to promote the product in the market, then it is advised to use the promotional method of pricing in which a consumer is asked to buy a product and the purchase is accompanied by a free sample of the product. For the company to capture the consumers, the captive product pricing method should be used, which is used where the product contain complements and immediately the consumer is captured, then the premium price will be charged by the company. Under the psychological pricing method, the company will have an aim of wanting the consumer to respond to its product emotionally rather than rationally. [4]

The place or the channel of distribution, this is the activities that is to be used by a company to move its product from the production to consumption. Since these activities need a cautious planning we find that Newcastle sends its beer to a wide range of markets globally, this includes, supermarkets, and convenient stores. Therefore the company has to come across various channels of distribution to enable its products reach the targeted market, therefore, the company should choose either to use the direct or the indirect channels of distribution, which is, it may be to the consumers directly or through wholesalers. For the company to decide on the type of the distribution channel it is to use, the management team should know the market segment that the distributor is familiar with, in which the distributor must be familiar with the company’s target markets. The team should also know if the company policies, strategies and image match with that of the distributor, also they should check on the qualification of the distributor, by establishing his experiences and deciding on how much training and support to give the distributor. They may choose to use retailers, who are said to have a strong personal relationship with the consumers through whom, the products will be exposed to consumers, they also offer credits to the customers thus promoting and merchandising the products. The other alternative is, the team may decide to use the internet to promote its products, through which the company will have a geographically wider market, thus enabling the products to reach a wider audience, this channel has a low costs set up due to its low barrier in the entry to the products market.

The other element in the marketing plan to be considered is, promotion, this is the marketing communication that should be used by the company to get its products in the market, pushing the consumers to the point of purchasing our products, the marketing team is advised to use the following methods in promoting their products: Personal selling, this is a way of maintaining personal  customer relations in which the sales person will be acting on behalf of the company, these person should be trained and should be having the personal selling techniques, though hiring them is expensive they should be used when, there is a genuine return on investments.[5]

Public relations-this should be applied in the company which will lead to a sustained and a planned effort in establishing and bringing an understanding between the company and its consumers. Advertising may also be used in creating awareness of the products to the consumers so that the company may gain responses from its target markets, under this, there are many advertising mediums including, print (newspapers, journals and posters.) and electronic(television, internet and radio) mediums of communication which we may choose to create awareness of our products to our consumers under this, in this case we see that the Newcastle  Company, uses mostly television and on the  pages of the major national weekend newspapers,  in creating awareness of the products in the market to its consumers.



Research method

Here we find that, New Castle industry uses its suppliers in carrying out research on the progress of its business, the suppliers are usually given questionnaires, they are said to be giving positive responses as they work hand in hand with the marketing team of this company, with whom the threats are recognized and are worked upon. Therefore, the research methods in any business should depend on the size and scope of the business. This may be done by examining ones own behavior, with that of the other brewing companies, spend time in stores that promote brewery products and do some reading on magazines, books and literature focusing on various beer products manufacturing.

The company’s management team is encouraged to talk and listen to the potential consumers of the brew, thus enabling one to know the issues that will be faced and the encounters he will face while carrying out the business. It is also advised to hire researchers who will help the team to define and understand the market, of the product they intend to sell.[6]

Consumer Buying Behavior

These are the factors that enable consumers to come up with a decision in purchasing the beer as a product. These factors include:

Need-the decision of the purchase of the beer by a particular consumer comes as a result of the need for one to be refreshed and also to socialize with other consumers of the same product.

Motives- these are personal forces that make an individual to engage in various purchasing activities which will therefore satisfy his needs. Since actions are normally effected by motives, the following motives brought the need to buy these particular products. Love, safety, self actualization and esteem are also said to be the basic factors that contributes to the purchase of the beer.

Knowledge under this, the ability of one to learn is applied, whereby a persons’ behavior is changed through the information given to the product purchased and, therefore the knowledge on the Newcastle beer that is passed through advertisements is considered as a leading factor in a consumers buying behavior.

Attitude these are the feelings towards a product by a consumer this can be a negative feeling or a positive feeling this is normally learnt through practice and communications with other people in the society.

Personality this is the characteristics that make an individual unique, this normally derives from inheritance and his personal experience. Such characters include: Self confidence, friendliness, ambitiousness, and aggressiveness in different aspects of the lifestyle, this is defined as a change towards an individual’s independence that leads to a preference for a particular type of life. [7]

Customer Services

Regarding the customer services offered by the New Castle beer producers, we find that, this company has a maintained communication system through which it is used to maintain the mutual benefits accruing from its consumers, the company plays a major role in educating its consumers on the impacts of the alcohol on their health which may arise due to the misuse of their products, thus the company has defined its objective of making its consumers to become responsible users of their products.

The company should have an organizational design that aligns the firm with its mission, whereby the firm is able to look at its complex relationship between tasks, workflow, responsibility and authority of its employees, which ensures that the objectives of the firm are supported by the mentioned factors. This design enables communications, productivity, and innovation in a firm, thus creating a conducive environment for the employees to work effectively as a result, Human resources issues are normally the basic factor in an organization design, this issues include the employing and recruiting of a firms employees, The manager should therefore be able to bring a balance between its human resource management programs globally and also locally. This can be achieved when the firm adheres to the local market regulations, culture and competition.[8]

An example for this is that Newcastle has provided a good working environment, whereby, most of its employees are said to be assigned to various departments that include the production, manufacturing and marketing departments. New castle finds it appropriate in involving the community in its daily operations whereby, they ensure that they also observe business ethics in which as they try to achieve their goals, they also put into consideration that the environment is kept in a good condition that can not prove to be of a negative impact to the society at large.

The company achieves this, by supporting local communities in their businesses through the sharing of their production practices thus the company has come up with an aim of allowing its employees to engage themselves in the supporting of these local communities through various initiatives for example providing support to those willing to volunteer in the development of their societies.

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[1] Baker, M. (2000): Marketing Management and Strategy, 3rd edn: London. Macmillan Business
[2] Baker, M. (2000): Marketing Management and Strategy, 3rd edn: London. Macmillan Business
[3] Haas, R.W. and Wotruba, T.R. (1983): Marketing Management: Concepts, Practice and Cases. Pleno, Texas: Business Publications, Inc.
[4] Haas, R.W. and Wotruba, T.R. (1983):  Marketing Management: Concepts, Practice and Cases. Pleno, Texas: Business Publications, Inc.
[5] Hoyer, W.D. and MacInnis, D.J. (2001): Consumer Behavior, 2nd Edn: New York, Houghton Mifflin Company
[6] Kotler, P.; Armstrong, G.; Saunders, J. and Wong, V. (1999): Principles of Marketing, 2nd Edn: New Jersey, Prentice Hall

[7] Gronroos, C. (1994): From Marketing Mix to Relationship Marketing: – Towards A Paradigm Shift in Marketing: Management Decision – Vol. 32; 1994, 4-20
[8] Kotler, P. (1996) Marketing Management (3rd. Ed.). New Jersey: Prentice Hall.