Effectiveness of Carling Marketing Campaign Coursework

Effectiveness of Carling Marketing Campaign - Coursework Example The above lines are not only mere scholarly phrase from two renowned research scholars but core essence of this piece of work. According to the above phrase of Mizik and Jacobson (2008), modern marketing managers face challenges regarding quantifying the outcome of marketing effort such as promotional campaign, advertising campaigns etc. Nias (2013) reported that Carling has launched  £10m campaign of â€Å"refreshingly perfect' strapline† on 1 June, 2013. Molson Coors Brewing Company (UK) Ltd is parent company behind the Carling brand (Carling, 2013a). In the next section, the researcher will shed light on background of the research problem in this piece of work. Background Section Carling has launched a new advertising campaign, which has budget estimation of  £10 million, and they have hired a professional market research agency in order to conduct consumer research regarding the effectiveness of the campaign. In the background section, the researcher will not only try to understand alcoholic beverages market of UK in order to understand competitive positioning of Carling but also try highlighting theoretical aspects like how advertising works/how advertising effectiveness is measured. Part A- Marketing Environment of Carling Major market for Carling is UK hence the study will analyze the marketing environment of Carling in context to overall market for alcoholic beverages of UK. Collis, Grayson and Johal (2010) reported that UK households spend  £15 billion/annum for consuming alcoholic beverages. Hence, total market size of alcoholic beverage industry of UK is  £15 billion. UK based consumers spend at least 15% to 18% of their total expenditure food and drink on alcoholic beverage consumption.... c beverages market of UK in order to understand competitive positioning of Carling but also try highlighting theoretical aspects like how advertising works/how advertising effectiveness is measured. Part A- Marketing Environment of Carling Major market for Carling is UK hence the study will analyze the marketing environment of Carling in context to overall market for alcoholic beverages of UK. Collis, Grayson and Johal (2010) reported that UK  households  spend ?15  billion/annum for consuming alcoholic beverages. Hence, total market size of alcoholic beverage industry of UK is ?15  billion. UK based consumers spend at least 15% to 18% of their total expenditure food  and  drink  on alcoholic beverage consumption. Carling is known for their beer products while UK government has imposed tax duty in the range of ?5.09 to ?19.12/ hectolitre on beer products depending upon the extent of alcohol (HM Revenue & Customs, 2013). Collis, Grayson and Johal (2010) pointed out that price elasticity for Beer products lie in –0.25 to -1.00 which shows that beer is seen as substitute of alcohol by British customers and price plays significant role forecasting the demand for beer products. Price elasticity of beer products in UK for last 50 years can be depicted in the following manner. Figure 1: Price Elasticity of Beer in UK (Source: Collis, Grayson and Johal, 2010) It is evident from the above econometric estimation, demand for the beer decreases by two fold by one fold increase in price. As UK is still struggling with lag effect of previous economic recession and sovereign debt crisis, price of the beer products has significantly increased which negatively affected demand for beer products. Stagnant sales growth of UK alcoholic beverages industry can be depicted in the following