Project Report Final

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Beer Field Project – Marketing Management Advanced
BEER FIELD PROJECT
MARKETING MANAGEMENT ADVANDCE
SubmittedBy:
(Group19 &20)
Ayan Chakraborty
Jingxian Luan
Mo Zhou
Suman Khanal
Tanay Gupta
Than Van Trinh
Wang Yizhuang

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Table of Contents
1. INTRODUCTION …………………………………………………………………………. 01
2. QUALITATIVE ANALYSIS …………………………………………………………….. 04
2.1 NON USERS…………………………………………………………………………… 04
2.2 USERS…………………………………………………………………………………... 05
3. QUANTITATIVE ANALYSIS…………………………………………………………… 08
3.1 TOOLS USED…………………………………………………………………………. 08
3.2 SURVEY………………………………………………………………………………… 08
3.3 DEMOGRAPHIC INFO……………………………………………………………. 09
3.4 SURVEY RESULTS………………………………………………………………….. 10
3.5 IMPORTANCE OF ATTRIBUTES………………………………………………. 10
3.6 BRAND PERCEPTION…………………………………………………………….. 12
3.7 FISCHBEIN ANALYSIS…………………………………………………………….. 13
3.8 QUADRANT ANALYSIS…………………………………………………………… 17
4. CREATIVE ANALYSIS……………………………………………………………………. 20
4.1 SITUATIONAL ANALYSIS………………………………………………………… 20
4.2 PROMOTIONAL ADVERTISEMENTS…………………………………..…… 21
4.3 INNOVATION IN DISTRIBUTION CHANNELS…………………………… 23
5. CONCLUSION……………………………………………………………………………… 26
6. APPENDIX…………………………………………………………………………………… 27

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1. INTRODUCTION
The aim of the field project is to perform a research on 3 chosen brands of the Beer industry in
Italy. Before we state our chosen brands, let us get familiar with beer industry of Italy.
Although Italy is a place of wine, beer is also consumed. According to Euromonitor, the beer
market in Italy is expected to increase in total volume at a CAGR of 1% over the forecast
period, while total value sales are expected to increase at a 2% CAGR. Heineken Italia SpA
led beer in Italy in 2014 with a 27% total volume share, followed by Birra Peroni Srl with a
21% volume share and InBev Italia Srl with 7%.In addition to the second leading brand
Heineken, Heineken Italia is owner of some of the major beer brands available in the Italian
market, including Moretti, Dreher, Prinz and San Souci. This portfolio of brands gives the
company an extremely diversified product range both in terms of products and price points.
We chose Corona, Heineken and Peroni as our 3 brands. We chose Heineken and Corona as
they are international brands and quite popular among beer lovers. We chose Peroni as it is a
local brand which is also available internationally and it would be interesting to understand its
performance against the internationally reputed brands.
Our project is divided into 3 parts:
1) Qualitative Analysis
2) Quantitative Analysis
3) Creative Analysis
Qualitative Analysis are performed on both users and non-users of beer. In depth interviews
are conducted to understand the perceived value drivers of beer consumers. Even non users are
interviewed to understand the reasons of not purchasing beer. From this part, we also conclude
with the most important attributes of beer which will be useful for the Quantitative analysis.
Quantitative analysis is performed on actual users by using Fishbein and Quadrant analysis
techniques to assess brands’ positioning. We use the most important attributes of beer that we
found in the qualitative analysis for performing the Fishbein and Quadrant analysis.
Creative analysis is used to provide recommendations regarding “value innovation” for our
brand, Peroni. The recommendations are directed not only for current users but also for non-
users, hence strengthening the market positioning of Peroni in Italy.

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Now, we will be discussing in details the 3 parts of our analysis in details:
2. QUALITATIVE ANALYSIS:
In order to understand customers’ purchasing motivation, we conducted 14 in-depth interviews
with randomly selected customers mostly among age 20 to 30, including both users and
nonusers. We chose this age group because it is easier to access, and they are more motivated
by our marketing strategies. Also, a study shows that the drinking pattern in Italy is relatively
stable among all age groups, with a peak between 24 and 34 years (Allamani, Beccaria &
Voller, 2010).
Out of 14 interviews, 10 were users and 4 were non uses. For users, the interview contained
questions about the criteria that why users choose to drink beer and things they take into
consideration while purchasing beer. This helped us to figure out the meaningful attributes and
what they get from drinking beer, so we can extract benefits and values drivers of drinking
beer. Similarly for non-users, we also asked about the reasons to prevent them from drinking
beer for nonusers, which might help companies alter nonusers to users if they change certain
attributes of beer. Among non-users two were users were non users of beer only while they
consume other alcoholic content while other two non-users were the one who don’t consume
alcohol at all.
What we found in common for both segments is that they both start from the basic attributes
of the product. In regarding to whether drink beer or not, both of them rely on taste. Users like
the taste of beer while nonusers don’t. From those answers we can almost say that taste is the
most important basic attribute for beer. Another aspect is that although some people do not
drink beer, the benefits or values they get from drinking other kinds of alcohol are relatively
similar with the ones who drink beer.
2.1 NON USERS
2.1.1 People who consume Alcohol but do not consume beer in particular
For non-users of beer, we are surprised to find that most of them do drink alcohol, just not beer.
They named a few alcoholic beverages they do drink, like wine or cocktails, which are quite
commonly seen in the market. Then we asked about the reasons for not drinking beer, most of
them answered that the beverage was too bitter for their taste. The respondents also said that
they prefer drinking wine over beer. They said they derive the same benefits of achieving

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relaxation, attaining a sense of self reward and socialize amongst peers by drinking other
alcoholic beverages.
.1.2 Non users who don’t consumer alcohol
On the other hand, for people who do not consume alcohol at all, one of the reasons is related
to their health concerns. Some of them are actually allergic to alcohol, others are worried that
alcohol content is bad to for their health. But there are quite a few among them who are willing
to try beer if the alcohol content is removed and still has the taste of beer. Although it is not
easy to win over other non-alcoholic drinks among their choices, it is possible to narrow this
part of market gap. There already exits non-alcoholic beers in the market, the corresponded
companies need to make it more aware and more attractive to customers. There also people
think consuming alcohol is a complete waste of money. Two of the respondents who did not
consume alcohol felt that they do not require alcohol in order to relax or to socialize. They felt
that alcohol is a sort of chemical intoxication which not healthy. They felt that they can achieve
a similar sensation which people derive from consuming alcohol by participating other
recreational activities.
2.2 CUSTOMER VALUE CHAIN FOR USERS
Figure 1: Customer Value Chain

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Figure 1 is the customer value chain for users. As seen above, taste is the most important attributes of
beer,for users as well as non-users. They can tell the differences of taste among brands, and choose the
taste they like. Interviewees also mentioned about the flavours and styles, one of them specifically
require the brand has varies of style to choose from as purchasing criterion. Those flavours and styles
can almost all be reflected in tastes. Unlike drinking water, it is hard to tell the taste differences so
companies who produce mineral water may need to work on other aspects,for example, the prices or
promotions. Nor like Coca-Cola, people already build strong emotion relations with the brand so that it
is hard for other companies with the same-taste-drinking products to enter. This result makes it
important for beer companies to pay attention to the difference of taste,and make yours stand out. Apart
from that, customers also consider other additive attributes like the design of the bottle or can, colour,
and the alcohol content or calorie count. Some interviewee mention they give importance to bottle/can
design so that it is easier to hold it while walking. Similarly some gave stress on the calorie count of
beer as it affects their fitness. Moreover most of the interviewee said that they drink beer for relaxation
so they think that alcohol content in beer is also important. These attributes seem less important than
the taste,but for customers who find it hard to differentiate between severaltastes in the current market
or have no specific preferences,these attributes become the second level criteria, which should never
be ignored by companies.
2.2.1 BENEFITS OF DRINKING BEER
Obviously, the functional benefit of drinking beeris to ease thirsty, which is the same asall other drinks,
mentioned specially by one interviewee. She said, “Whenever I feel thirsty, I drink beer”. She
chooses beer to satisfy thirsty and it has a special taste according to her preference. Other interviewees
talked about drinking beer with friends in most occasions, even for most interviewees it is their friends
who drove them to drink beer for the first time. Cleary, one is strongly affected by others around, and
has a psychological need to be cared by others. Drinking beer make them feelconnected to friends and
get involved in the crowds, which means that one of the psychosocial benefits of beer is to help build
an emotional bond between friends. One of them said, “Drinking beer helps to have good
conversation during several occasions” Even in some occasions, beer may become the excuse to start
a conversation between strangers. The second occasion when people drink beer is during celebrations.
Even when sometimes they feel silly to drink a lot of beer, but it makes them happy and relieved.
Sometimes with friends, which is correspondent with the first benefit, and sometimes alone, when use
beer to express happiness.
Another psychosocial benefit people usually get from drinking beer is that they feel relaxed. Some
interviewees said that they felt like drinking beer after a day’s of tiring work. They use beer as a tool to
temporarily forget the tiring days and escape from the reality. The alcohol content in beer helps ease

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the nerve. There are even occasions when people get excessively drunk on purpose by drinking beer to
escape from the reality.
2.2.2 VALUE DRIVERS FOR DRINKING BEER
One of the values people gain from drinking beer is happiness and affectionate. Many of them said
they felt happy, either drinking alone or with friends. So with beer, they achieved the psychological
states of being happy, and it is pursued by most people as the terminal value. Another value people get
from it is affection from family and friends. When people drink with friends or families, they feelbeing
cared and noticed, which comes from the affection of others around.
An interesting point is that although non users of beer usually do not choose wine or cocktail as the
drink to ease thirst, because these type of alcohols have higher alcohol content, but they do gain similar
benefits and values from consuming other alcohols as they do from beer. They also drink other alcohols
with friends and families. This indicates that the benefits and values people get from drinking alcohol,
are somewhat disconnected with the taste of the alcoholic beverages. Although we discussed that taste
is important, but it is easy for competitor to imitate the taste and take over the market share, only the
emotional bond between brand and customers stays strong. So as for marketing, company should not
only promise a good taste and other functional attributes, but more importantly focus on the emotional
benefits and values, to maintain a good customer relationship and build customer loyalty, which will be
discussed in detail later in marketing innovation part.
2.2.3 MAJOR ATTRIBUTES
In order to select the major attributes from different attributes cited by interviewees about the beer, we
used a frequency distribution table, where we plotted the number of times the interviewee cited the
particular attribute during the interview. This helps to understand the attributes which the interviewees
were giving more focus during the interview.
Respondent Number(Users only)
Attributes 1 2 3 4 5 6 7 8 9 10 Total count
Taste 3 1 2 3 2 4 5 2 3 3 28
Aroma 0 1 0 1 1 0 0 1 0 1 5
Colour 1 0 0 0 0 0 1 1 1 1 5
Foam 2 1 1 0 1 1 1 1 1 0 9
Bottle/Can Design 0 2 1 0 3 1 2 0 2 1 12
Calorie Count 1 3 2 3 2 3 2 2 2 0 20
Alcohol Content 2 1 1 1 1 1 2 0 1 3 13
Figure 2: Frequency Table for attributes

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From the above table it is clearly visible that Taste, Calorie count, Bottle/Can design and Alcohol
content are the major attributes that consumersseekin a beer.So we decided to take these four attributes
for the quantitative analysis.
3. QUANTITATIVE ANALYSIS
After the qualitative analysis, we had a list of four most important attributes of beer which
people consider while procuring.
The four most important attributes:
1) Taste
2) Alcohol Content
3) Calorie Count
4) Can/ Bottle Design
We had chosen three brands which are as follows:
A) Peroni
B) Corona
C) Heineken
We have taken our brand to be Peroni. We will compare Peroni with other brands and find its
position in the market.
3.1 TOOLS USED
There are various tools which can be used to assess the positioning of a brand in the market as
compared to its competitive brands. This comparison is based on the perceptions of the
consumers of the product. We have used the following tools for the above activity:
I) Fischbein Analysis
II) Quadrant Analysis
3.2 SURVEY
We also had to understand the importance of the different attributes in numerical form. To
understand the perceptions and importance, we had conducted a survey. The sample size of the
survey was 73.

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SURVEY FACTS:
Respondents: 73
Geography: Worldwide
Objective: Importance of attributes, Perception for the 3 brands w.r.t the attributes
3.3 DEMOGRAPHIC INFORMATION
The 73 respondents came from all over the globe. They were from various age groups, different
countries and professions.
The following graphs illustrate in a better way the demographic diversity of the survey:
Figure 1 represents the country wise demographic representation of the survey. 30% of the
respondents were from Italy. 21% of the responses came from China followed by 19% from
India. There were also nationals from Germany, USA, Singapore and Vietnam who took the
survey.
Figure 3: Country wise Responses
In figure 2, there is a gender wise response analysis of the survey. 61% of the respondents were
male which 39% were female.
30%
21%19%
11%
3%
3% 3%
10%
Countrywise Responses(%)
Itay
China
India
USA
Germany
Singapore
Vietnam
Others

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Figure 4: Gender wise Responses
Figure 3 demonstrates the age wise responses of the survey. 50% of the respondents were from
the age group 21-24. 35% of the people who took the survey were between 25-28 years. So,
around 85%. Out of the respondents were between ages 21 to 28 years.
Figure 5: Age wise Responses
3.4 SURVEY RESULTS
The results of the survey consist of 2 parts:
1) The importance of attributes
2) The perception for the 3 chosen brands w.r.t the 4 attributes
3.5 IMPORTANCE OF ATTRIBUTES
39%
61%
Gender-wise Responses(%)
Female
Male
4%
50%
39%
4% 3%
Age wise Responses (%)
≤ 20
21-24
25-28
29-32
≥33

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Out of different attributes we found during the qualitative research, we tried to find the
importance of four major attributes. We asked the consumer about how much importance they
give to these attributes on a scale of 1-7 while purchasing a beer.
Relevant attributes for the customer
Importance(1 to 7):
Average within our
target segment
TASTE 6.0
ALCOHOL CONTENT 4.5
CALORIE CONTENT 2.9
BOTTLE/CAN DESIGN 4.3
Figure 6: Importance of Attributes
Figure 7: Radar Chart-Importance of Attributes
As per the result of the survey, we found out the consumer give maximum importance to taste
while purchasing beer. On a scale from 1 to 7, the importance of TASTE is 6.0. After TASTE,
consumer alcohol content is the most important attribute in a beer. We separately asked out
respondent whether they prefer high, medium or low alcohol content. We found out that
consumer per beers with medium alcohol content. This can be attribute to the finding of the
qualitative survey that majority of the consumer drink beer for refreshment and during social
gather so that they can stay within the control. Moreover we see the gender specific preference
-1.0
1.0
3.0
5.0
7.0
TASTE
ALCOHOL
CONTENT
CALORIE
CONTENT
BOTTLE/CAN
DESIGN
Importance of Attributes

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of alcohol content in a beer, male prefer mild and strong beer while female prefer light and
mild beer.
Alcohol Content Percentage
Light (Low alcohol Content) 17
Mild (Medium alcohol Content) 64
Strong (High alcohol Content) 19
Figure 8: Preference of Alcohol Content
Similarly costumer do care about the bottle/can design while purchasing a beer. On a scale
from 1 to 7, the importance of bottle/can design is 4.3. Among the four major attributes that
consumers care about while purchasing a beer, calorie count is the least important. On a scale
from 1 to 7, the importance of calorie count is 2.9. Female consumer seems to give more
importance to calorie count as compared to male consumers.
3.6 BRAND PERCEPTION
Relevant attributes
for the customer
PERONI(1 to 7):
Average within
our target segment
HEINEKEN(1 to
7): Average within
our target segment
CORONA(1 to 7):
Average within our
target segment
TASTE 4.3 4.6 5.0
ALCOHOL
CONTENT
4.2 4.6 4.1
CALORIE CONTENT 4.5 3.9 4.0
BOTTLE/CAN
DESIGN
3.9 4.9 5.2
Figure 9: Brand Perception
Figure 9 illustrates the responses of the perceptions of the respondents for the 3 brands of beer
with respect to the 4 attributes we have chosen.
We see that for Peroni, the Calorie Count is the most perceived attribute. Taste and Alcohol
Content are the most important attributes for Heineken. Respondents like the bottle design of
Corona the most and then comes taste.

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3.7 FISCHBEIN ANALYSIS
The Fischbein analysis is used to determine a measurable score representing customers’
attitude for the chosen most important attributes of the brands.
Relevant attributes
for the customer
Importance(1 to
7): Average
within our target
segment
CORONA(1 to 7):
Average within our
target segment
HEINEKEN(1 to
7): Average within
our target segment
PERONI(1 to 7):
Average within our
target segment
TASTE 6.0 5.0 4.6 4.5
ALCOHOL
CONTENT 4.5 4.1 4.6 4.2
CALORIE
CONTENT 2.9 4.0 3.9 4.5
BOTTLE/CAN
DESIGN 4.3 5.2 4.9 3.9
Expected Value 82.4 80.9 75.9
Value index 0.92 0.94
Figure 10: Fishbein Analysis
In figure 10, the first column contains the 4 most important attributes of beer. The second
column consists of the average importance of each attribute (average of all the respondents of
our survey). From the 3rd column through 5th column, we have the average perception of
customers regarding the attributes Taste, Alcohol Content, Calorie Count and Bottle/Can
Design for the 3 brands Corona, Heineken and Peroni.
3.7.1 OUR BRAND
We will perform our analysis considering PERONI as our brand. This means that we will
compare Peroni with Corona as well as Heineken and analyse the results accordingly. The
analysis and the results are presented later in the report.
Present price of the 3 brands
Brand Price( per 6 pint bottles pack)
CORONA € 8.84
HEINEKEN € 4.99
PERONI € 3.99
Figure 11: Market Prices

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3.7.2 EXPECTED VALUE
Expected value is the value which a customer infers from a particular brand or product during
the customers’ purchasing process.
EVb = ∑ Ii × Pb
𝑛
1=1
EVb = Expected Value for Brand
Ii = Importance associated with the ith attribute
Pb = Beliefs about the performance of Brand B with regard to the ith attribute
Relevant attributes
for the customer
Importance(1 to
7): Average within
our target segment
CORONA(1 to 7):
Average within our
target segment
HEINEKEN(1 to 7):
Average within our
target segment
PERONI(1 to 7):
Average within our
target segment
TASTE 6.0 5.0 4.6 4.5
ALCOHOL CONTENT 4.5 4.1 4.6 4.2
CALORIE COUNT 2.9 4.0 3.9 4.5
BOTTLE/CAN DESIGN 4.3 5.2 4.9 3.9
Figure 12: Expected Value
If we take the attribute Alcohol Content from the table above (Figure 12) we see that the
respondents have rated the importance of the attribute at 4.5 from a scale from one to seven
which means alcohol content has been rated the second most important attribute in comparison
to the other attributes. Similarly if we see respondents have rated the performance of brands
with regards to each attribute in accordance to their independent beliefs. Using weighted mean
we can find the expected value of each brand as seen below.
Expected Value of Corona Brand:
Taste 6.0 x 5.0= 30.09
Alcohol Content 4.5 x 4.1= 18.45
Calorie Count 2.9 X 4.0=11.68
Bottle/ Can Design 4.3 x 5.2=22.18

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Total Expected Value 82.40
Expected Value of Heineken Brand:
Taste 6.0 x 4.6=27.90
Alcohol Content 4.5 x 4.6=20.80
Expected Value of Peroni Brand:
Taste 6.0 x 4.5=27.00
Alcohol Content 4.5 x 4.2=18.90
The above calculations indicate that Corona have the highest expected value of 82.4, whereas
Heineken and Peroni come in second and third position with expected value of 80.90 and 75.9
respectively.
3.7.3 VALUE INDEX
Based on the above calculated expected value, we calculated the value index for Peroni. The
value index is calculated as
Value index = (Our Expected Value)/ (Competitor’s Expected Value)
Now the value index of Peroni with respect to Corona is as follows
= (Peroni’s Expected Value)/ (Corona’s Value Index)

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= 75.9/82.4
= 0.92
This means that Peroni is perceived as 8% (1-0.92=0.08) worse than Corona. Ideally at these
condition the price of Peroni should be 8% lower than the price of the Corona.
Similarly the value index of Peroni with respect to Corona is as follow
= (Peroni’s Expected Value)/ (Heineken’s Expected Value)
= 75.9/80.9
= 0.94
This means that Peroni is perceived as 6 %( 1-0.94=0.06) worse than Heineken. Ideally at these
condition the price of Peroni should be 6% lower than the price of the Heineken.
3.7.4 INDIFFERENCE PRICE:
Based on the perceptions derived from the survey, we understand that customers perceive the
brands differently. The Expected Value and Value Index can help us find the Indifferent Price.
Indifferent Price is the price of our product (PERONI) that makes the customer indifferent as
to whether to choose Peroni or our competitor’s product.
The formula below describes Indifference Price:
Indifference Price = Competitor’s Price × Value Index
The present price of Corona in the market is € 8.84, then the indifference price for Peroni would
be:
Indifference Price Peroni w.r.t Corona= € 8.84 × 0.92 (where 0.92 is the Value Index of Peroni w.r.t
Corona)
= € 8.14.
So, at € 8.14, the customer is indifferent as to whether to choose Peroni or Corona.
Similarly,
The present price of Heineken in the market is € 4.99, then the indifference price for Peroni
would be:

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Indifference Price Peroni w.r.t Corona = € 4.99 × 0.94 (where 0.94: Value Index of Peroni w.r.t
Heineken)
= € 4.68.
So, at € 4.68, the customer is indifferent as to whether to choose Peroni or Heineken.
The table below (Figure 13) gives the indifference price of Peroni.
Indifference Price w.r.t Corona 8.14
Indifference Price w.r.t Heineken 4.68
Figure 13: Indifference Price
3.8 QUADRANT ANALYSIS
The quadrant analysis is used to simultaneously analyse which attributes are important to
consumers and how consumers rate particular brands according to those attributes.
There are 5 steps in the quadrant analysis. All the steps are enlisted below:
Step 1: Calculation of average importance of attributes
Average Importance of attributes is calculated as the simple mean of importance of all the
major attributes identified as above.
Relevant attributes for the
customer Importance(1 to 7): Average
within our target segment
TASTE 6.0
ALCOHOL CONTENT 4.5
CALORIE CONTENT 2.9
BOTTLE/CAN DESIGN 4.3
Average Importance 4.4
Figure 14: Average Importance of attributes

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Step 2: Classification of attributes as per their importance
Now the attributes were classified based upon their actual importance and the average
importance calculated in the step 1.
Average importance: 4.4
Relevant
attributes for the
customer
Importance(1 to 7):
Average within our
target segment
Deviation from
average Remark
TASTE 6.0 1.6
Above average
importance
ALCOHOL
CONTENT 4.5 0.1
Above average
importance
CALORIE
CONTENT 2.9 -1.5
Below average
importance
BOTTLE/CAN
DESIGN 4.3 -0.1
Below average
importance
Figure 15: Classification of Attributes
As we can see from figure 15, the importance of taste and alcohol content is above average
importance whereas the importance of calorie count and bottle/can design is below average
importance.
Step 3: Selecting the main competitor
Even though the expected value of the Corona is the highest, the gap between the expected
value of our brand “Peroni” is significant whereas the gap between the expected value of Peroni
and Heineken is not very significant. Thus the main competitor of Peroni is Heineken instead
of Peroni.
Step 4: Relative Performance
Now for each attribute, we calculated the relative performance of Peroni as compared to
Heineken. The relative performance is nothing but the ratio between consumer beliefs about
Peroni and beliefs about Heineken.

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Relevant
attributes for the
customer
Importance(1 to
7): Average
within our target
segment
PERONI(1 to 7):
Average within
our target
segment
HEINEKEN(1 to
7): Average
within our target
segment
Relative
Perform
ance
TASTE 6.0 4.5 4.6 0.97
ALCOHOL
CONTENT 4.5 4.2 4.6 0.91
CALORIE
CONTENT 2.9 4.5 3.9 1.16
BOTTLE/CAN
DESIGN 4.3 3.9 4.9 0.81
Figure 16: Relative Performance
Figure 16 above shows that, in the perception of customers on attributes taste, alcohol and
bottle/can design Peroni is performing 7%, 9% and 19% worse than Heineken. But if we
consider calorie count, in the perception of customer Peroni is performing 16% better than
Heineken.
Step 5:
Now, we use results of Step 2 and Step 4 and place each attribute into the following matrix.
Figure 19: Quadrant Analysis

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From the above quadrant analysis, calorie count of Peroni is substantial competitive advantage,
taste is substantial competitive disadvantage whereas bottle/can design and alcohol content are
in marginal competitive disadvantage. For managers this would imply that Peroni need to
leverage the importance of calorie content, improve the perception of the taste and close watch
on the competitors’ move on the bottle/can design and alcohol content.
4. CREATIVE ANALYSIS:
4.1 SITUATIONAL ANALYSIS
There are three areas Peroni could improve to enhance its position within the Italy market.
The first one is the ‘taste’ attribute. It was chosen to be emphasized because ‘taste’ is
considered as the most important attribute by the customer. However, ‘taste’ is a rather
subjective term which changes from customer to customer, therefore, it is difficult to
‘change’ people’ perception with regards to it. Instead, Peroni could slowly make small
impacts on how the customers perceive the brand in terms of its ‘taste’. This can be done
by having people from experts to casual beer drinkers to promote the taste of Peroni
Secondly, according to the results of the qualitative and quantitative analysis, ‘Calorie
count is one of the top 4 most important attributes; at the same time, Peroni also scored the
highest in this attribute among the three brands. Moreover, we also had a quick check to
see if the perception matches our actual calorie count. As shown in table below, Peroni is
indeed the lightest beer in terms of calories content as perceived by the customers.
On the other hand, having a healthy life style is becoming the hottest trend and more
importantly, a sustainable one. More and more people each day are working towards a
healthier lifestyle which then leads them to improve their eating and drinking habits. One
of the top concerns when it comes to these habits, is the calories count. Therefore, we could
take advantage of this and promote a positive image of Peroni’s Light range. This can act
as a first-mover opportunity for Peroni as other brands have not focused on this attribute
before.
Finally, using diverse range of products from heavy to light, traditional to different flavors
of beer, Peroni can introduce itself to non-users, encouraging them to try different flavors
for different occasion that Peroni has to offer.
Table below Caloric content in three brands: Corona, Heineken and Peroni

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Figure 20: Calorie Content
4.2 PROMOTIONAL ADVERTISEMENTS
4.2.1 Video campaign call “Get Peroni’d” to reinforce the ‘Taste’ Attribute
Please click the link below to watch the video:
youtube.com/watch?v=9oYEWL2VcFc&feature=youtu.be
a) Target:
Demographic: consumers within Italy, from 21 – 28 years of age, both gender male and
female
Behavioral: All beer consumers; all frequency of purchase
b) Content
The video campaign is a collection of positive reviews from beer expert to casual drinkers,
addressing their thoughts on the great taste of Peroni beer. Besides compliments, humor
would also be used in the video to bring the message closer to consumers. The video aims
to deliver the message that the taste is refreshing, tasty with nice amount of foam, and

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enjoyable among a wide range of customers, from young to old and experts level to casual
drinkers.
4.2.2 Video campaign to raise the importance of the ‘Caloric content’ attribute
a) Target
Demographic: consumers within Italy, from 21 – 28 years of age, both gender male and
female but mainly female.
Behavioral: health-conscious, active life-style, non-heavy drinkers
b) Content
The video is designed to deliver a message of healthy life-style by making a wise choice in
drinking. Using image of fitness coach and young people leading an active life-style as
example; to emphasize and increase the importance of having the same fit body by
considering ‘calories content’ in their drinks; while at the same time communicating the
message of not having to worry about ruining their diet while enjoying a beer with friends.

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4.2.3 Video campaign to convert non-users to user
a) Target
Demographic: from 21 to 60, both gender male and female
Behavioral: Non-users of beers
b) Content
Video is used to promote the wide variety of beers that Peroni offer for all tastes and
occasions. For example light beer for the light-drinkers or Lime flavors for the summer or
with certain type of food, etc. The main aim is to convince the non-users to have a try of
Peroni or encourage them to try with friends or in any occasions that they are in.
4.3 INNOVATION IN DISTRIBUTION CHANNELS OF PERONI
Innovations in distribution channels may take the form of truly new ideas, involving a complete
re-examination of the potentials and objectives at hand. The underlying source of such a
completely new idea may be a change in the available distribution technology.
Another source of inspiration to innovations in distribution channels is from alternative means
of operations that are used in other product or geographical markets.
Based on a Euromonitor report and our interviews, we concluded that consumers prefer to
purchase beer in grocery stores.

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“Craft beers continue to encounter the favor of the Italian consumer base and major grocery
retailers have been capitalizing on this trend by dedicating increasing shelf space to these types
of products. Considering that all of Italy’s major grocery retailers are pursuing a strategy that
focuses on offering predominantly local products, which are considered more sustainable from
an ethical and environmental standpoint, local craft beers are becoming more prominent on
retail shelves. “
In order to observe the performance of Peroni on retail chains, we visit several supermarkets
of Milan and here are three main products available.
Figure 21: Peroni at Esselunga
However, we find that Peroni has taken a smaller shelf space than its main local competitors.
Figure 22: Beer Assortment at Esselunga
Due to the absence of some high-quality products like Peroni Gran Riserva Rosso Puro Malto,
we suggest that Peroni make the best of their APP CUORE PERONI by encouraging the
customers to find more information about our products scanning the QR code on the retail
displays

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Figure 23: Peroni Application
One-third of Italians drink beer when they eat pizza and this applies to both men and women,
according to Assobirra. Italian consumers often like to eat pizza in restaurants with friends.
In recent years, several beer brands have been attempting to push consumption of beer both in
the retail channel as well as in the foodservice channel.
Our strategy is to franchise out the products to bar, nightclub, pizzeria and other foodservice
channel. We increase the visibility of Peroni products in these places. We suggest people to
download the application by offering them special offers in order to turn non-users into our
customers through scanning the QR code. Given the importance of presence among our targets,
the format of franchising could induce further purchases.
Metal cans are also appreciated by consumers for their convenience of use; however they
usually force consumer to finish the entire contents in order not to spoil the product. An
increasing presence of larger 500ml cans is being detected across all retail channels, while
smaller cans are usually preferred in on-trade outlets.
Figure 24: Beer Cans Assortment at Esselunga

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Furthermore, we didn’t find metal cans of Peroni in supermarkets and neither on the official
website. But considering the beer report, we suggest that Peroni pays attention to it.
5 CONCLUSION
This report on the analysis of three beer brands available in Italy gives us an interesting
perspective of analyzing a product’s positioning among the users. We also analyzed what were
the reasons why non users did not consume beer. Through the quantitative and qualitative
survey followed by their analysis we discovered some of the main attributes that the customer
looks into while purchasing a beer. Finally we chose Peroni as our brand and tried to find its
relative performance in comparison to its closest competitor Heineken through different tools
like Fishbien and Quadrant analysis. This led us to understand the competitive advantages and
disadvantages of Peroni with respect to Heineken. By analyzing the competitive positioning
we came up with different innovative strategies to strengthen the positioning of Peroni.

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APPENDIX 1: QUESTIONNAIRE FOR SURVEY

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APPENDIX 2: SOURCES
1. Allamani, A., Beccaria,F., & Voller, F. (2010, October 18). The puzzle if Italian drinking.
Retrieved December 6,2015 from http://www.nsh.se/PageFiles/4910/465_478_allaman.pdf
2. http://www.euromonitor.com/beer-in-italy/report

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