Hypothesis Formulation In Declining Export Of Domestic Brewers Essay

Question:

Discuss about the Hypothesis Formulation in Declining Export Of Domestic Brewers.

Answer:

Introduction:

Formulation of Hypothesis and Intuitive Evaluation of Drop in Beer Exports:

The fall in sales volume can occur because of several factors that are exogenous and endogenous to the domestic brewers. A rise in adverse perceptions towards consumption of beer and other alcoholic drinks can be a factor impacting the level of sales. Moreover, awareness among the consumers and possible health issues occurring due to beer consumption can have minor impacts upon variances in sales volume. In addition the tastes of consumers may change based upon socio economic and socio cultural factors. The advent of multiple sets of close substitutes such as energy drinks, and drinks with low proportion of alcoholic contents has taken away sizeable amount of market shares from the Japanese brewers. Rising levels of threats from international brewers and distilleries that have multinational presence impedes the growth in market shares of indigenous distilleries. McCreanor et al. (2013) states that brand promotion in social networking by international brewers along with sponsorships of athletes and championship increases their visibility among new sets on consumers. The amount of brand promotions is moderate in terms of domestic brewers whereas even newly launched brands by international brewers have significant levels of promotions leading to development of that particular brand over and above that of domestic brewers. Continuous fall in level of beer exports showcases the fact that Japanese beer makers have repeatedly lost out to other beer producers. The level of quality control measures along with the restrictions upon development of premium and general classes of beer products can be held responsible for the continuous fall in beer exports. Moreover, initiatives taken up governments of beer importing countries to reduce overall consumption levels of alcohol and through heightening of minimum purchase age of alcohol the market artificially saturated. Siegel et al. (2013) states that the states that preference for alcoholic beverages vary as per age groups that the consumer belongs to.

References:

Siegel, M., DeJong, W., Naimi, T.S., Fortunato, E.K., Albers, A.B., Heeren, T., Rosenbloom, D.L., Ross, C., Ostroff, J., Rodkin, S. and King, C., (2013). Brand?€ђSpecific Consumption of Alcohol Among Underage Youth in the United States. Alcoholism: Clinical and Experimental Research, 37(7), pp.1195-1203.

McCreanor, T., Lyons, A., Griffin, C., Goodwin, I., Moewaka Barnes, H. and Hutton, F., (2013). Youth drinking cultures, social networking and alcohol marketing: Implications for public health. Critical public health, 23(1), pp.110-120.

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