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Description
All companies, if they are to operate efficiently, need to estimate the demand for their products. This information provides them with the knowledge needed to plan production. The type of estimatio...n companies undertake and the level of sophistication is a reflection of firm size. The bigger the company the more information it will require and equally its size determines how much market research it can afford. In this programme the estimation practises of two companies are examined. First, Penrhos Court Brewery, a tiny brewery in Hereford which has been in business producing real ale since August 1977. And then the giant Carlsberg Lager Company.
All companies, if they are to operate efficiently, need to estimate the demand for their products. This information provides them with the knowledge needed to plan production. The type of estimatio...n companies undertake and the level of sophistication is a reflection of firm size. The bigger the company the more information it will require and equally its size determines how much market research it can afford. In this programme the estimation practises of two companies are examined. First, Penrhos Court Brewery, a tiny brewery in Hereford which has been in business producing real ale since August 1977. And then the giant Carlsberg Lager Company.
| Module code and title: | D222, Microeconomics |
|---|---|
| Item code: | D222; 03; 1978 |
| First transmission date: | 16-04-1978 |
| Published: | 1978 |
| Rights Statement: | |
| Restrictions on use: | |
| Duration: | 00:23:30 |
| + Show more... | |
| Producer: | Nigel Houghton |
| Contributors: | Neil Costello; Martin Griffiths; Desmond Davies; Derek Cook; David Hogan; Michael Iuul |
| Publisher: | BBC Open University |
| Keyword(s): | Brewing; Carlsberg; Demand; Economics; Penrhos Court Brewery |
| Footage description: | The programme opens with shots of the 1977 Real Beer festival and a comic demonstration by Terry Jones of how to identify different ales. Neil Costello introduces the programme which compares the estimation of the market made by two brewers, Penrhos Court, a small local brewer, and the Carlsberg Company. Martin Griffiths, owner of Penrhos Court Brewery explains why he decided to start a brewery. In order to estimate demand they counted the number of free houses in the local area. They did not take out any advertising but found the outlets by word of mouth. Desmond Davies, landlord of a local pub talks about his sales of Penrhos beer and the customer reaction to the local brew. Martin Griffiths argues that local hops and spring water give the beer a distinctive local taste that can't be repeated anywhere else. The price of the beer has to be kept low in order to compete successfully. Neil Costello lists some of the reasons for the success of Penrhos Court Brewery. Because it a growing market its inaccuracies in demand estimation have not seriously affected its performance. Over shots of the Carlsberg Brewery, Northampton, Neil Costello describes the level of sales Carlsberg have achieved. Michael Iuul, Managing Director of Carlsberg UK describes the economic models used by his company to estimate demand. He describes the growth in the market for lager in recent years and how Carlsberg have been able to exploit this. Neil Costello describes the distribution arrangements Carlsberg use and how they maintain up to date figures on demand for and sales of their beer. Michael Iuul states that recent exponential growth cannot possibly continue. The company therefore works to a target figure to forecast the total lager market as a percentage of the total beer and lager market. Neil Costello points out that future growth in demand for lager is expected to depend upon skilful marketing. In 1977 Carlsberg launched a new take-home brew 'Hof' Derek Cook, Marketing Manager, Carlsberg UK explain why the company decided to market a new drink and how Hof was to be promoted. Shots of a group discussion about the packaging of Hof. David Hogan, Accounts director of KMP Partnership, advertisers, describes the advertising strategy which Carlsberg have followed successfully in the past, and how the promotion of 'Hof differed slightly by understating the Carlsberg motive and stressing that of the brand name. Derek Cook explains the pricing strategy behind the promotion of 'Hof'. Because they feel they are selling a quality product, Carlsberg feel that they can charge a slightly higher price than their competition the market. Neil Costello compares the pricing policy of the two breweries and the stress they both place upon the quality of their product. Michael Iuul argues that without knowledge of demand his company could not optimise its sales and plan effectively for the future. The programme ends with more shots of Terry Jones tasting different beers. |
| Master spool number: | 6HT/72717 |
| Production number: | 00525_2417 |
| Videofinder number: | 85 |
| Available to public: | no |
