External Analysis Samuel Adams
External Environment Analysis Previously, you read about the industry analysis of the beer, wine and liquor industry and the five forces that affect a firm’s ability to serve consumers and turn a profit. Next, successful companies must recognize and respond to the major forces affecting our macro environment, for example; stock market decline, increase in unemployment and global warming. Companies must now consider several external environmental forces while running their business, in particular, demographics, economics, social, natural, technological and political.
Demographics
Demographics can consist of population size, density, location, age, sex, race and occupation. In this analysis, we will focus on examining population size and age. Based on an estimate from July 2011, there were roughly 313 million people in our population with a growth rate of almost one percent (Central Intelligence Agency). The highest areas of growth tend to be in warmer climates, the southern and western parts of the United States. Our population rate is growing at an explosive rate that could exceed our food supply and ability to service the population. Samuel Adams needs to take into account the areas of highest growth in our population and market to these regions. Ideally, because the craft brew segment is strong on the west coast, Samuel Adams should distribute more products to the western states. As stated earlier, the Boston Brewery Company’s corporate headquarters and brewery is located in Boston, Massachusetts, which makes them primary players already in the east coast market. A second important demographic to consider when marketing is age. Age is important in the alcoholic beverage industry because of the legal drinking age requirements. One particular approach marketer’s use is generational marketing; this targets certain age groups as well as different generations. This is important for companies to consider especially since the start of the recession in
Demographics
Demographics can consist of population size, density, location, age, sex, race and occupation. In this analysis, we will focus on examining population size and age. Based on an estimate from July 2011, there were roughly 313 million people in our population with a growth rate of almost one percent (Central Intelligence Agency). The highest areas of growth tend to be in warmer climates, the southern and western parts of the United States. Our population rate is growing at an explosive rate that could exceed our food supply and ability to service the population. Samuel Adams needs to take into account the areas of highest growth in our population and market to these regions. Ideally, because the craft brew segment is strong on the west coast, Samuel Adams should distribute more products to the western states. As stated earlier, the Boston Brewery Company’s corporate headquarters and brewery is located in Boston, Massachusetts, which makes them primary players already in the east coast market. A second important demographic to consider when marketing is age. Age is important in the alcoholic beverage industry because of the legal drinking age requirements. One particular approach marketer’s use is generational marketing; this targets certain age groups as well as different generations. This is important for companies to consider especially since the start of the recession in
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