Brand Line Positioning in the Norwegian Mass-Produced Beer Market a Comparative Brand Association Study

Total Page:16

File Type:pdf, Size:1020Kb

Brand Line Positioning in the Norwegian Mass-Produced Beer Market a Comparative Brand Association Study Norwegian School of Economics Bergen, Spring 2018 Brand line positioning in the Norwegian mass-produced beer market A comparative brand association study Øystein E. Rakap Supervisor: Dr. eocon Leif Egil Hem Master’s thesis, Marketing and Brand Management NORWEGIAN SCHOOL OF ECONOMICS This thesis was written as a part of the Master of Science in Economics and Business Administration at NHH. Please note that neither the institution nor the examiners are responsible − through the approval of this thesis − for the theories and methods used, or results and conclusions drawn in this work. Abstract The purpose of this thesis is to compare the image positioning of two Norwegian beer brand lines in terms of consumer perceptions. Despite recent popularity of microbrewery research, it argues that industrial breweries are more profitable, and should not be neglected. An introduction to the realm of brand equity is provided. It poses three research questions about two brands: 1) which associations are most frequently reported; 2) which associations differentiate the brands, and; 3) do they drive brand attitudes? Thereafter, information about the product category, the Ringnes and Hansa brand lines and owners, distribution chain and recent developments is disclosed. Consumer-Based Brand Equity and other theory relevant to consumer behavior and brand management is presented. Following the theoretical framework, two hypotheses are developed, deducted from publicly available brand information. A combined-methods approach was applied to collect primary data in two processes. To answer the first research question and develop additional hypotheses, a pilot study (n = 21) was conducted using semi-structured interviews on a convenience sample consisting mostly of students. It was finalized by developing a new set of three hypotheses. The main study (n = 342) utilized a survey strategy to collect quantitative data to be used in the analysis. Self- selected questionnaire respondents were automatically assigned a brand condition for comparison purposes. The process of each study was presented separately, including discussions of validity, reliability and statistical assumptions. Indications of perceived brand differences were found and summarized comparatively. All five null hypotheses that the brands were perceived to be equal, were rejected in favor of Hansa. Significant relationships between test variables and brand attitude were found by correlation, and potential drivers of brand attitude were explored using multiple regressions. Findings indicate that Hansa is positively differentiated from Ringnes by unique heritage and sports associations, however, generalizations cannot be made. Implications of findings are discussed along with limitations and recommendations. Acknowledgements My specialization is in the Marketing and Brand Management profile. Consequently, this thesis is written as a mandatory part of my master’s degree, making up 30 ECTS. First off, I would like to extend my sincere gratitude to my thesis supervisor, dr. oecon Leif Egil Hem for his patience, expertise and always-encouraging demeanor. He has made himself available and provided clear guidance throughout what turned out to be a lengthy writing process, helping me to stay focused and materialize this thesis. I also found both of his courses, Integrated Marketing Communication and Brand Equity, highly educational and enjoyable, and would generally recommend them to other students, especially in the MBM profile. Secondly, I would like to thank my parents for their constant love and support which has facilitated my studies. Also, I would like to thank Lene Baldersheim at Section for Quality Assurance for assisting in distributing the questionnaire to a larger sample. Finally, I would like to thank everybody who participated in interviews, and all those who responded to, tested or helped distribute the questionnaire. Table of Contents List of tables: ................................................................................................................................ List of figures: .............................................................................................................................. Chapter 1: Introduction ........................................................................................................... 1 1.1 Research question ................................................................................................................. 2 1.2 Thesis outline and content .................................................................................................... 2 Chapter 2: Background Information ..................................................................................... 4 2.1 Norwegian Alcohol Legislation ........................................................................................... 4 2.2 Advertising ........................................................................................................................... 5 2.3 Distribution Channels and beverage categories ................................................................... 6 2.4 Product category - Beer ........................................................................................................ 7 2.4.1 Norwegian beer history and recent trends ..................................................................... 8 2.4.2 Types of breweries ......................................................................................................... 9 2.4.3 Competitive situation ................................................................................................... 10 2.5 Beer market leaders ............................................................................................................ 10 2.5.1 Hansa Borg Bryggerier ................................................................................................ 11 2.5.2 Ringnes ........................................................................................................................ 12 2.5.3 Recent developments and motivation .......................................................................... 12 Chapter 3: Theoretical Framework ...................................................................................... 14 3.1 Brand Knowledge ............................................................................................................... 14 3.1.1 Brand awareness .......................................................................................................... 14 3.1.2 Brand image ................................................................................................................. 15 3.1.2.1 Associative Networks ........................................................................................... 15 3.1.2.2 Association types .................................................................................................. 16 3.2 Brand identity and personality: .......................................................................................... 21 3.3 Brand Strategy .................................................................................................................... 22 3.4 Hypotheses ......................................................................................................................... 25 Hypothesis 1: Unique sports association .............................................................................. 25 Hypothesis 2: Unique heritage association ........................................................................... 26 Chapter 4: Methodology ........................................................................................................ 28 4.1 Research overview ............................................................................................................. 28 4.1.1 Research approach ....................................................................................................... 28 4.2 Pilot study ........................................................................................................................... 28 4.2.1 Research purpose and approach .................................................................................. 29 4.2.2 Pilot study design ......................................................................................................... 29 4.2.3 Sample selection .......................................................................................................... 31 4.2.4 Execution ..................................................................................................................... 32 4.2.5 Hypotheses (post pilot study) ...................................................................................... 33 Hypothesis 3: Product appearance .................................................................................... 34 Hypothesis 4: Sports spectating as consumption context ................................................. 34 Hypothesis 5: Fit with healthy lifestyle as user imagery .................................................. 35 4.3 Main study .......................................................................................................................... 36 4.3.1 Research Design .......................................................................................................... 36 4.3.2 Research Strategy ........................................................................................................ 36 4.3.3 Data collection and sample .........................................................................................
Recommended publications
  • Lutefisk & Lefse Dinner
    Sons of Norway Bernt Balchen Lodge President’s Message—Back from Viking Land Well, I am back from France interviewed were the stars of Television series, “Vikings.” and Norway. After seeing the new Norwegian action- At Borre near Oslo I was able the river valleys of south- adventure movie, “Ragnarok”. to see Norway’s largest Vi- western France I can better In this movie a Norwegian king grave mounds and visit understand why they were archeologist learns of the se- the adjacent Midgard Histor- so attractive to the Vikings. crets of Ragnarok or the “End ical Center where the story of The Dordogne, Lot, and Ve- of the World” by decoding the mounds and the Viking zere River valleys are amaz- signs carved on the Oseberg VIKING HALL 349-1613 Age are interpreted for the ingly beautiful and filled Viking Ship, one of the two public. One critical point the www.sofnalaska.com with rich farmlands. And main ships in the museum. I Center emphasizes in its the rivers that run through was so wrapped up in seeing exhibits is the organizational them are the perfect size for the wonderful ships and other skills of the old Viking chiefs shallow-draft Viking ships. stuff in the museum that I did and kings. It took far- November In Oslo’s Viking Ship Muse- not notice the beautiful wom- sighted planning and leader- um I got to see Viking ships en and handsome men who ship to launch successful 2013 first hand. Up close they were the object of such great expeditions over the sea— are much bigger and impos- attention.
    [Show full text]
  • Brand Portfolio Management in the Norwegian Brewing Industry
    Brand Portfolio Management in the Norwegian Brewing Industry An assessment of external and internal factors influencing the brand portfolio management of large established breweries in Norway. Mathieu Remaut Lund Stine Måseidvåg Industrial Economics and Technology Management Submission date: June 2018 Supervisor: Øyvind Bjørgum, IØT Co-supervisor: Tyson Weaver, IØT Norwegian University of Science and Technology Department of Industrial Economics and Technology Management Problem description The thesis is twofold and aims to uncover how large established firms within the Norwe- gian brewing industry should assess external and internal factors affecting brand portfolio management in order to achieve a strong position in the market and maintain a successful brand management strategy. A survey consisting of 674 respondents constitute the con- sumer dimension of the thesis and is used to identify consumer demands in the industry. The results are applied to identify how the various factors of brand management; brand, market, business and consumers, relate to each other and how brand managers should align these to acquire a competitive advantage. Preface This paper constitutes the conclusion of the authors’ M.Sc. degree in Industrial Economics and Technology Management at NTNU in Trondheim. The master thesis was written during the spring of 2018 and is the completion of the specialization within Strategy and International Business Development. The purpose of the study is to investigate the factors affecting brand portfolio management of established Norwegian breweries. We would like to thank Tyson Weaver and Øyvind Bjørgum, at the Department of In- dustrial Economics and Technology Management, for valuable guidance and constructive feedback throughout the work of this thesis.
    [Show full text]
  • Inflation Report 3/2002 Inflation Report 3/2002
    Reports from the Central Bank of Norway No 4/2002 Inflation Report 3 02 October Norges Bank's Inflation Report In accordance with the Government regulation of 29 March 2001, Norges Bank’s implementation of monetary policy shall be oriented towards maintaining low and stable inflation. The inflation target is set at 2½ per cent. The key interest rate is set on the basis of an overall assessment of the inflation outlook, normally two years ahead. The Inflation Report discusses developments in the Norwegian economy and other factors that influence the inflation outlook. In addition, the balance of risks and uncertainty associated with the inflation projections are assessed. The main aspects of the Inflation Report are presented to the members of the Executive Board who discuss the contents of the report before it is published. The analyses in Norges Bank’s Inflation Report, together with the Bank’s current assessment of the outlook for price and cost inflation and developments in the money market and foreign exchange market, provide a basis for decisions concerning monetary policy instruments. The Inflation Report is published three times a year, and together with Financial Stability, is part of Norges Bank’s series of reports. The report is also available on Norges Bank’s website: http://www.norges-bank.no. The series of reports is included in the subscription for Economic Bulletin. To subscribe please write to: Norges Bank Subscription Service PO Box 1179 Sentrum N-0107 Oslo Norway Telephone: +47 22 31 63 83 Fax: + 47 22 41 31 05 E-mail: [email protected] Editor: Svein Gjedrem Design: Grid Strategisk Design AS Setting and printing: Reclamo grafisk senter AS The text is set in 11½ point Times ISSN 0807-8521 Inflation Report 3/2002 Inflation Report 3/2002 Editorial ....................................................
    [Show full text]
  • Norges Bank Inflation Report 3/2006
    Reports from the Central Bank of Norway No 4/2006 11 Inflation Report 3 with monetary policy assessments 06 November Inflation Report 3/2006 Norges Bank’s Inflation Report with monetary policy assessments Norges Bank’s Inflation Report is published three times a year, in March, June and November. The Report presents an assessment of the monetary policy outlook. The report contains projections for developments in the Norwegian economy, boxes in which particular themes are dealt with more fully, and a summary of Norges Bank’s regional network reports. 2 At its meetings on 17 October and 1 November, Norges Bank’s Executive Board dis- cussed the main content of the Inflation Report and endorsed the analyses and projec- tions for future interest rate developments in the Report. At its meeting on 1 November, the Executive Board approved a monetary policy strategy based on these discussions for the period to the next Inflation Report, which will be published on 15 March 2007. The strategy is presented in Section 1. In the period to the next Inflation Report, the Executive Board will hold monetary policy meetings on 13 December, 24 January and 15 March. The Inflation Report is published three times a year, and together with Financial Stability, is part of Norges Bank’s series of reports. The report is also available on Norges Bank’s website: http://www.norges-bank.no. The series of reports is included in the subscription for Economic Bulletin. To subscribe please write to: Norges Bank Subscription Service PO Box 1179 Sentrum N-0107 Oslo Norway Telephone: +47 22 31 63 83 Fax: + 47 22 41 31 05 E-mail: [email protected] Editor: Svein Gjedrem (Section 1 presents the Executive Board's assessments) Design: Grid Strategisk Design AS Setting and printing: Reclamo grafisk senter AS The text is set in 11½ point Times ISSN 1502-2730 (print), 1503-8866 (online) Inflation Report 3/2006 Inflation Report 3/2006 with monetary policy assessments Editorial 5 1.
    [Show full text]
  • Results and Activities
    RESULTS AND ACTIVITIES 1 Content 3 Part I CEO’s report 54 Part IV: Management and control in the organization 56 Enova – market team player 57 Management and control in the organization 4 Part II Introduction to the organization and key figures 58 Key case processing methods 6 Key figures 2015 7 Management 8 Organization 60 Part V Assessment of future prospects 9 Corporate social responsibility 62 Ready, set, adapt Market descriptions: 65 Renewable thermal energy 10 Part III A: Reporting – the Energy Fund 2012–2015 66 Industry and non-industrial plants and facilities 12 Enova’s main objective 68 Non-residential buildings 14 Objectives and results of the Energy Fund 70 New energy and climate technology 16 Management of the Energy Fund’s resources 72 Transport 17 Climate reporting 74 Residential buildings 20 New energy and climate technology 75 Bioenergy 24 In-depth reporting 24 – Energy results 25 – Funding level 76 Part VI Annual accounts (not translated) 27 – Energy results by project category 78 Årsregnskap Energifondet 29 – Portfolio composition 83 Årsregnskap Enova SF 34 – Activities 37 – International activities 94 Appendices 38 –Geographical distribution and the largest projects 96 Appendix A: 41 Part III B: Reporting – the Energy Fund 2001–2011 Projects within new energy and climate technology 2012-2015 41 Energy results and allocations 2001–2011 120 Appendix B: Project list 2015 (not translated) 44 Realized results 139 Appendix C: 46 Climate reporting 139 – Assignments outside the Energy Fund 48 Part III C: Reporting by topic: new energy and climate technology; renewable power 139 – Publications and consultation statements 140 Definitions and explanation of terminology 2 I | CEO’S REPORT Vibrant change Records in industry and buildings Industry is still the main locomotive in Norway’s conversion to renewable energy.
    [Show full text]
  • Resultater Fra Industrinettverket 2002
    enovas industrinettverk Resultater fra Industrinettverket 2002 Enova SF September 2003 Resultater fra Industrinettverket 2002 enovas industrinettverk er et energinettverk for industribedrifter i Norge som ønsker å sammenlikne eget energibruk med tilsvarende bedrifter. www.enova.no/industrinettverk Enovas programkoordinatorer er engasjerte av Enova for å forvalte Enovas programmer og utføre andre avtalte oppgaver. Programkoordinatorene er fagspesialister og kan gi utfyllende informasjon om Enovas programområder. Ønsker du kontakt med Enovas programkoordinatorer se www.enova.no/koordinator Resultater fra Industrinettverket 2002 Forord Enova skal styrke arbeid med miljøvennlig omleg- Det er i 2002 inngått 126 avtaler med bedrifter for ging av energibruk og energiproduksjon i Norge. etablering av energiledelse og 41 avtaler for inves- En av de viktigste sektorene i forhold til energi- tering i nødvendig utstyr relatert til energioppføl- bruk er norsk industri. Enova er opptatt av å ging. 42 bedrifter har fått støtte til enøkanalyser kunne utløse det mulige potensial for energieffek- og har til sammen planer om å redusere energi- tive investeringer og besparinger innfor både bruken med 210 GWh. Erfaringsmessig blir 2/3 av store og små industribedrifter. Målet for 2002 var disse tiltakene gjennomført i løpet av en tre års å få realisert en besparelse på 100 GWh, og periode. Det gir en samlet energireduksjon på 140 Enovas resultatrapport viser at man forventer å nå GWh i industrien for 2002. 140 GWh. Samtidig vet vi at det er kartlagt et betydelig potensial innenfor prosessindustrien, og Enova er godt fornøyd med resultatet som er opp- gjennom arbeidet i bransjenettverket for industri nådd blant nettverkets deltakere og ser fram til vet vi at store potensialer også finnes i små og videre godt samarbeid for mer energieffektive løs- mellomstor industri.
    [Show full text]