Drivers of Value In The Beer Market: Comparing an Imported And A National Brand

Abstract

1. Introduction Today, Spain is the fourth largest producer of beer in the European Union and the ninth producer in the world. The brewing industry is a key economic sector within the Spanish agribusiness industry and beer is considered a beverage for social gathering and its consumption is integrated into patterns of Mediterranean way of living. Within the Spanish territory there are 6 large beer producer groups, the group Mahou, Heineken Espana, Damm Group, followed by other smaller brewery companies. Moreover, it should be stressed the presence of the Spanish National Association of Brewing Companies, entity that is composed of the represents all brewery groups in the beer industry. Spanish beer exports amounted in 2010 up to 902.575hl, to reach over the 75 million euros in sales outside the national territory. Nevertheless, if we analyze the total beer consumption in Spain, the data show that over 92% of consumption is domestically produced. This research aims two different objectives. In first place, obtain an approximation of the profile of Spanish beer consumer, and secondly, to compare the Brand Equity for a national and an imported beer brand. So, this study has been structured as follows. It begins with the theoretical framework, then it sets out the research objectives. In section four, the methodology is analyzed. Then, in the fifth section, we present the results, to continue with the conclusions. 2. Antecedents and Theoretical Framework 2.1 The Concept of Brand Equity The brand has become one of the main intangible assets of companies (Keller and Lehmann, 2003). A very relevant aspect is to understand the value of brands, especially from the consumers' standpoint. For this purpose, there are several theoretical models, characterized by the selection of different variables related to consumer behavior, perceptions and preferences (Aaker, 1991, 1996; Keller, 1993). The most recent literature on Brand Equity has focused on developing models for the measurement of Brand Equity, as well as for the analysis of the variables determining Brand Equity (Yoo and Donthu, 2002; Pappu, et al, 2005). According to the literature on brand equity lies in the minds of consumers (Leone et al, 2006), and several authors like Aaker (1991, 1996) and Keller (1993, 2007) have proposed models for measuring Brand Equity, characterized by the use of different variables that are related to consumer behavior, perceptions and preferences. Among these theoretical models, there are a number of researches that emphasize the multidimensional nature of Brand Equity (Lassar et al., 1995; Agarwal and Rao, 1996, Kim et al, 2008). Out of all these models there is worth mentioning those proposed by Aaker (1991, 1996) and Keller (1993), since they had a great acceptance in the literature (Yoo and Donthu, 2001; Pappu et al, 2005, 2007; Jung and Sung, 2008). According to Aaker (1991), Brand Equity is a multidimensional concept, which could be defined as the set of assets linked to the brand, its name or logo, that either add or reduce the value provided by a product or service offered from a company to its customers. Following Aaker (1991), Brand Equity consists of five dimensions that are brand awareness, brand loyalty, perceived quality, brand associations -or brand image-, and finally, other assets linked to the brand. Below, we analyze each one of these dimensions. In first place, brand awareness is concept related with the recognition and the recall that the consumer has of a particular brand, as well as their ability to identify the brand in some particular situations (Rossiter and Percy, 1987). The role of brand awareness depends on the level of notoriety a particular brand has reached on the market; so the higher the brand reputation, the greater likelihood that the brand would be considered in the purchase set (Nedungadi, 1990). Other authors, such as Hoyer (1990), point out that that consumers who are capable to recognize and remember a determinate brand within a given product category, are more likely to buy it, because products and familiar brands are usually preferred to those less familiar. …