Tuesday, November 26, 2019
What Makes a Good Book Cover The Secret to a Converting Book Cover
What Makes a Good Book Cover The Secret to a Converting Book Cover What Makes a Good Book Cover: How to Increase Book Sales With Your Book Cover Do you know what makes a good book cover?You shouldif you ever want to maintain consistent sales of your book.Ok, so hereââ¬â¢s the deal. What I am just about to tell you might sound controversial. It might even sound downright ridiculous.You could even get offended.But bear with me for a while. Just hear me outbecause what I really want for you is to sell more books, and your book cover is one of the most important factors playing into that reality, even though weve all been told not to judge a book by its cover.The reality of publishing isEveryone does anyways.Heres what makes for a good book cover:Focusing on the big pictureStrong compositionAn intriguing focal pointClear title and subtitlesSimplistic book cover designNOTE: We cover everything in this blog post and much more about the writing, marketing, and publishing process in our VIP Self-Publishing Program. Learn more about it hereWhat does a good book cover matter?The book cover exists to serve one and only ONE purpose. And that purpose is to sell your book. Everything else is details.Shocked? Offended? About to pick that nearby glass of water and smash it on my head? Just hold it for a few minutes.I understand how we creatives hate the four-letter words starting with an S. Sell? Sale? Sold!? But itââ¬â¢s true. If you havenââ¬â¢t read Robert Kiyosakiââ¬â¢s Rich Dad Poor Dad yet, I urge you to get a copy and read.Robert Kiyosaki was once being interviewed by this bright young journalist. She had a real flair for writing. She asked Robert if he had any advice for her. And guess what Robert told her. ââ¬Å"Go take a sales courseâ⬠, he said.The young lady was shocked. She sat there silently for a few minutes, staring at Robert Kiyosaki in disbelief. And then she spoke. She told him she had spent all her life writing and studying. She held masterââ¬â¢s degrees in literature and journalism.And she had worked so hard all her life, so that she wonââ¬â¢t have to ââ¬Å"stoop so lowâ⠬ as learning to sell! Robert explained how she was a far superior writer than Robert could ever hope to be, but Robert was still a best-selling author, while she wasnââ¬â¢t. She could write the best book ever written by a human being, but it wouldnââ¬â¢t matter if nobody read it.And that is why you need to ââ¬Å"SELLâ⬠.Makes sense? I hope it does because as I mentioned above, your books cover is one of the most important pieces of becoming a successful author.What makes for a good book cover?I have been on that side of the fence where creatives hate the concept of selling or marketing. And I have been on that side for the longest time. But the sooner you get yourself comfortable with these words and concepts, the better.And the best way to start is by understanding that investing in a good book cover design, and knowing what makes a good one.And why should you even listen to me? Well, I have a bachelorââ¬â¢s degree in marketing. And trust me, I learned nothing at s chool. After my bachelors, I spent nearly ten years convincing myself and the world that I am an artist. And you know the funniest part? All of my creative buddies and peers were in the same situation. And that is when I decided I needed to learn what I had shunned for the longest time. I needed to learn to sell. We founded Dastaan Online. And the first business that needed our help was our own. We started publishing a literary magazine called Dastaan World.Writers, artists, photographers, even those who write poetry along with readers flocked to us. I decided to design covers for every story we published. And our contributors loved them!My covers might well be beautiful, and thought-provoking and sublime and what not. But that is all secondary. They keep coming to me, because my covers help them sell their books.Every other quality of a good book cover can be indented as a subcategory or explanation of this one point.The book cover is there to promote your book, and ultimately sell it. Now, the next big question is, what makes for a good book cover that achieves this goal?#1 Focus On the Big PictureThe book cover needs to draw the viewer into the story. Even if you are writing non-fiction. You are a writer, so you know there is always a story.The cover needs to show what the book is about, without giving all of it away, much like the book title but with visuals.This example from Self-Publishing Schools coach Marcy Pusey shows just how this technique works in her book, Weirdo and Willy.The idea is to get your reader to open the book. Once they open the book, your magic as a writer will not let them put it down before reading it to the end.But to catch in your spiderweb of literary magic, you need to use a bait. And that is what your cover needs to do for you. It needs to play on the human emotions of intrigue and curiosity.So think about the big picture of what your book cover should represent.Ask yourself these questions when figuring out your book cover:Doe s your idea represent your story or message?Does it illicit intrigue?Does it stand out from other books in your category?#2 Create a Strong CompositionThis is where is start to get into the wizardry that is graphic design and illustration.Composition is one of the most fundamental skills required of anyone working with visuals. And as with all fundamentals, the composition takes a lifetime to master, at least!This is why its advised to hire a book cover designer instead of creating the cover yourself in programs like Canva or Photoshop.But if you have some experience and want to go for it, here are some guidelines on composition:Use the rule of thirdsSymmetry is your friendUse texture and patterns to add non-distracting detailsUse high and low anglesCombine several composition tips into one for full-effect (but not ALL of them)But you can start off with a few interesting guidelines or you can simply hire a book editor whos experienced in the field of composition.#3 Develop a Clear Focal PointEvery composition, every piece of deliberately designed visual communication, needs a focal point. The easiest way to find your focal point is to ask yourself (or, preferably, a friend) where your eye goes first on this piece.Whether itââ¬â¢s the title, your author byline, a figure in the artwork, some specific abstract shape, your focal point is what grabs your attention and catches your eye the first.And itââ¬â¢s not accidental. In this example by Self-Publishing Schools Omer Redden, you can see that the focal point of his book Life Doc is very clearly and intentionally the eye-catching title.Thereââ¬â¢s a whole science behind this elusive art called composition. It is this magic skill that dictates where a viewer is going to look, and in what order.You can have multiple focal points, but they should not compete with each other. They grab your viewerââ¬â¢s attention in the order you have designed them. Primary, secondary, tertiary and so on.This dance of at tention depends on what story you want to plant in their head. This story will make them open your book and eventually decide to buy it.#4 Title, Subtitle and Their RelativesPlease donââ¬â¢t make the mistake of thinking your cover is completely at your designerââ¬â¢s mercy. No. You are the writer. And you play the key role in determining how well your cover is gonna perform.How? The book title! When trying to come up with a book title idea, ask yourself this: Will it pull your reader from across the store? Or the webpage? It should be compelling. It should be visible and readable.AND it should be strengthened further by any additional visual elements on your cover.à Self-Publishing School coach Scott Allans book Undefeated is a great example of this. Here you can see his title plays an integral role in the cover design as a whole, with a very telling message with the torn reveal of un in undefeatedYour title, and any subtitles and taglines are going to play a pivotal role i n selling your book. So get your inner Don Draper out when crafting your cover copy!#5 Simplistic Book Cover DesignAnd finally, I like to keep my covers simple. And I personally tend to like covers that are simple and minimalistic.Although, my covers may sometimes look complex because of all the digitally painted and photo-manipulated detail, the ideas and composition must remain simple. It all goes in favor of the focal point and our intention to just say enough that will compel our viewer to buy the book.Overly complex covers usually give a very blatant impression of desperation, where the designer didnââ¬â¢t exactly know what to put in. And hence, they put everything they could think of in there. Not cool. Donââ¬â¢t do this. Keep it simple!So when you decide to finally lock down your book cover, remember to keep it simple stupid. Keep the big picture of your story in mind.Make your viewers focus on the key selling points of your book. If you feel stumped about your book co ver design, you can always reach out to a professional for help. If youre a student of Self-Publishing School, youll even be provided a list of cover designers whose work already checks the boxes of this list.You can see a little preview of this below:Just keep these guidelines in mind, whether you are designing the cover yourself, or paying someone to do it for you.Ready to get serious about selling your book?If youre ready to actually have success with your book (instead of hitting publish and hearing crickets from no book sales), we have the tried-and-true methods to help you get there.
Saturday, November 23, 2019
Good At, Good In, and Good With
Good At, Good In, and Good With Good At, Good In, and Good With Good At, Good In, and Good With By Maeve Maddox A reader wonders about the difference between saying, ââ¬Å"Iââ¬â¢m good in Englishâ⬠and ââ¬Å"Iââ¬â¢m good at Englishâ⬠: I always felt that theres a different nuance there when Im saying it. I just cant pinpoint it exactly. One of the numerous meanings of good is ââ¬Å"competent, skillful, clever at or in a certain action or pursuit.â⬠The two expressions in the readerââ¬â¢s question are often used interchangeably, but generally speaking, ââ¬Å"good atâ⬠is used with an activity: Heââ¬â¢s good at football. Sheââ¬â¢s good at product design. Her mother is good at Trivial Pursuit. When Fatima was only six, she was good at drawing. When it comes to school subjects, both ââ¬Å"good atâ⬠and ââ¬Å"good inâ⬠are used: Jere is good at math: he always finishes first. Jere is good in math: he makes all Aââ¬â¢s. Itââ¬â¢s difficult to formulate a rule for ââ¬Å"good in.â⬠An actor can be ââ¬Å"good in a role.â⬠Someone who is ââ¬Å"good at sexâ⬠is said to be ââ¬Å"good in bed.â⬠A level-headed friend is ââ¬Å"good in an emergency.â⬠A similar expression used to indicate competency is ââ¬Å"good withâ⬠: Because Daiki is good with numbers, he plans to study accounting. Maribel is good with children; she wants to be an elementary teacher. Amos is good with his hands; he remodeled the entire house. Lilah is good with money; she saves at least 40% of her allowance every week. Here are some examples of all three expressions as used on the Web: Michael Phelps:à Good at swimming, better at golf Why areà humansà and dogs soà good atà living together?à School shootings: Were good at finding fault, not so good at finding a solution Is it true that people who are good at music can learn a language sooner? Are you good in a crisis? Are pit bulls good with kids? Are you good or awful with money? When it comes to using prepositions in idioms, memorization is often necessary. Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Grammar category, check our popular posts, or choose a related post below:5 Uses of InfinitivesThe Writing ProcessApostrophe with Plural Possessive Nouns
Thursday, November 21, 2019
How Will Astronomy Archives Survive the Data Tsunami Case Study
How Will Astronomy Archives Survive the Data Tsunami - Case Study Example Archives operate within an environment where resources, mostly financial are limited (Chaisson & McMillan, 2011). When the response time for astronomy queries increases, so is the cost of obtaining data from the archives. This impresses on the need to search for further technological techniques, which are more efficient and cost effective. Various performance degradation issues associated with the growing trend are indicated by the archived astronomical data. First, there is growth in the usage of the archived data, increasing the access and queries associated with the archived data sets. This effectively reduces the efficiency of data access, while also increasing the response time involved in queries (Berriman & Groom, 2011). The decreased efficiency and increased response time has the effect of making the study into this field less efficient, thus discouraging the widening of the knowledge base in astronomy. Most significant is the fact that, the growth in archived astronomical da ta increases the demand for such data, encourages the creation of more sophisticated queries and analysis techniques, which in turn increases the storage, computation and database costs (Berriman & Groom, 2011). This serves to make the access to archived astronomical data more expensive for users. Additionally, the increased volume of archived astronomical data means that it is now more accessible, thus influencing the research undertaken in this field, since most researchers are now using the archived data to undertake their research, at the expense of newly acquired data (Chaisson & McMillan, 2011). This practice is detrimental to the growth of astronomy, since new research and enquiries are rarely made, thus making new discoveries and innovations in this field impractical. The effect of this is to limit the knowledge base of the astronomy field, while also enhancing the regurgitation of data and provision of redundant and irrelevant study findings (NRC, 2011). The essence of rese arch is to promote new enquiries and discoveries in certain field, with a view to creating new knowledge, while also enhancing creativity and innovation in solving the problems associated with the field (Berriman & Groom, 2011). With a continued publication of more papers using the archived data sets, the hope of new discoveries and innovations in this field is extinguished. The increased volume of archived astronomy data has also caused performance degradation of various astronomical data institutions such as NASAââ¬â¢s Infrared Processing and Analysis Center (IPAC) and Infrared Science Archive (IRSA), through affecting their reporting abilities (Berriman & Groom, 2011). Following these performance degradation issues, a need for alternative archival techniques has risen. One such alternative archival technique is graphical processing units (GPUs), which is a technique developed to enhance the output of an image that occurs on a display device (Berriman & Groom, 2011). Neverthele ss, while this technique is meant to help in reducing the inefficiencies associated with large volumes of archived astronomical data, the technique has proved to be ineffective due to various reasons. First, the technique is only applicable in graphic-like
Tuesday, November 19, 2019
Should our society continue to enforce compulsory monogamy on this Essay
Should our society continue to enforce compulsory monogamy on this segment of unwilling individuals, or does this approach no longer represent an enlightened view of love and relationships - Essay Example Monogamy is mostly not a choice as the systems of cultural conformity tend to make us believe. This can be evidenced when someone tries to do something out of monogamy and he or she faces numerous forms of resistance. The legal arrangements almost allover the world is pro monogamy. Those who tend to go astray from these institutional arrangements are punished in one way or another. Legal marriage, for example, does not adapt non-monogamy neither does divorce and custody courts. The courts will even punish this both financially and denying custody of children to the party which went astray from monogamy (Wardle 43). In the social setting, a non-monogamy arrangement is considered immoral. This is a result of the heavy social pressure where everyone is expected to be monogamous. In some cases, a person can be disqualified from public office when they admit that they are non-monogamous. The society has, therefore, put a lot of pressure onto the practice of monogamy such that any other arrangement is considered cheating. The guilt that accompanies non-monogamy arrangements is felt even in those places where non-monogamy is fine (Wardle 49). There is a class of people opposed to compulsory monogamy. Among them are the sex workers. Whether they are male or female, sex workers are considered by our culture and the society at large as impure, and they face lots of stigma as a consequence (Bax 12). They are, therefore, not viewed as fit for a monogamous relationship. Governments even criminalize any sex worker relationships be it exploitative or not. This can be evidenced by the passage of anti-pimping laws aiming at criminalizing the act of benefiting from proceeds of sex work even when one is not the sex worker (Burston 67). Men who are in gay relationships often face promiscuity allegations from all corners. These allegations are mostly
Sunday, November 17, 2019
The Two Party System Essay Example for Free
The Two Party System Essay What are the advantages and disadvantages of the two-party system in the UK? The two- party system is not a new practice in British politics. Britain has been living under a two party system since the mid-seventeenth Century. However, this system is still a foundation of most ideas of British politics. Other than America, Britain is one of the only major countries that have a two party system. What are the advantages and disadvantages of this system? Is Britain afraid to change its system? If this system has been around for so long, it is because it has many advantages. First of all, the system advantages big parties with more seats. When a party wins an election, whether he has won by a majority or not, he gets a majority of seats. For example, when Labour won in 1997, they got 60% of the seats, although they had not won the election by a majority. This advantages the party because more seats mean more power and they can then impose their ideas on other parties and always be sure to pass legislation. This leads to our second advantage; a stronger executive. With this majority of seats, the party can, as we said before, pass on their laws easily, but also resist ministers. This advantages the voter as he is sure that the party he voted for will be making the law. For example, if Mr. Smith voted for Labour in the 1997 elections, then he is obviously in favour of their ideas and laws. So, when they make new decisions when they are in power, Mr. Smith is likely to be in favour of them, and so has a better chance of having the legislation passed. The voter is therefore privileged. Another advantage is that the voter has a clear choice. Because there is only one party elected, the elector can follow what the party is doing, i.e. whether it is keeping its promises or not. If the party does not do what it promised it would, then the voter can then hold it responsible at the next election. And because there is no coalition in British Government, then only one party can be responsible. For example: Lets say Conservatives promise during their campaign to make sensible decisions during conflicts. Then comes a conflict between Ireland and Northern Ireland. Conservatives, now in power, decide to bomb Northern Ireland. Because of this, the conflict becomes much harsher which leads to a war between Britain and Northern Ireland. The voter is then aware of the mistake Conservatives have made, and therefore can dismiss Conservatives at the next election. Although the two party system has these advantages, it seems to have more disadvantages. First of all, voters have a very limited choice when it comes to elections. In Britain there are various parties, but only two have been in power until now: Labour and Conservatives. Therefore, the voter seems to be obligated to choose between one and the other. And since they are opposites, they have completely different views. Its black or white. There is the party of Liberal Democrats, but the number of people voting for them is too little to be taken into consideration (hence the two-party system). For example: If Labour are arguing that Health Services should be 100% public and Conservatives want it to be 100% private, what will Mrs. Johnson do if she wants it half/half? It will be very hard for her to know who to vote for. The choice is too limited and therefore the two party system should be changed. Secondly, we may think that having a one party government makes it stronger and more stable, but in fact, in times of crisis, coalition is vital. And it is hard to believe that millions of individual voters all consciously coordinate and have the same ideas than the party. It is true that during the two great wars and during the 1931 economic crisis, British Government had to resort to coalition. It is too hard for one party alone to make all the decisions at times of war. Another drawback of the two party system is that all other parties are disadvantaged; the number of seats are not proportional to the percentage of votes a party has won. If a party wins an election, whether he had a majority of votes or not, he will get a majority of seats. This is unfair and undemocratic. Other parties get a very small number of seats and so hardly get a say during conferences. For example: Lets say during the 2003 elections, Labour get 44% of the votes, Conservatives get 31%, Liberal Democrats get 18% and the last 7% go to various parties. Labour are going to get 60% of the seats, Conservatives around 20%, Liberal Democrats around 10% and the rest will go to the other parties remaining. This is unfair as Labour did not get a majority of votes, and therefore should not win a majority of seats. The strongest disadvantage of this two party system is the First Past the Post election system. In Britain, the party who wins the election is the one that gets the most votes. If Conservatives get elected with 41% of the votes, while Labour got 36%, Liberal Democrats got 21% and remaining parties got 2%, then Britain will have a Government that only 41% of the country agrees with. Therefore 59% of the country will be dissatisfied. This is absurd and completely undemocratic. In France, a candidate can only be elected if he has an absolute majority (over 50% plus one vote). This way, it is certain that at least half of the population is satisfied. Moreover, the President has to elect a Prime Minister from the opposite party. Therefore there is a coalition between the two parties and voters are contented. Although the electoral system in Britain hasnt changed in years, it seems that there are more disadvantages than advantages in it. It is treating parties unequally, and this is unacceptable for a 21st Century Society. I think it is important to change this system, and then we will have a better chance of expressing our opinions through our elected parties. Politics is about freedom of expression and this system completely spoils our freedom. A State without the means of some change is without the means of its conservation. Edmund Burke
Thursday, November 14, 2019
Comparing Dystopian Distress in Brave New World, Player Piano, and The
Dystopian Distress in Brave New World, Player Piano, and The Giverà à à à à Novels of the same subject matter may have decidedly unique ways of expressing the authors' ideas. Yet, dystopian narratives such as "Brave New World" by Aldous Huxley, "Player Piano" by Kurt Vonnegut, and "The Giver" by Lois Lowry share many similarities in how the novels end. Throughout the genre of dystopian literature, each story has common ambiguous patterns that leave the reader unsure as to specific details at the conclusion. Oftentimes, this effect is achieved by leaving gaps in information, or presenting two different possibilities by which the tale could close. Even more enigmatic is a complete lack of conclusion all together; that is, the book concludes so abruptly that the reader is left to infer from her own thoughts and opinions what really happened to the main characters and the rest of society. One pattern commonly expressed in the end of dystopian novels is a situation in which foreshadowing throughout the novel gives tantalizing hints of what might be; usually, conclusion clues seem to imply a continual downfall of society. These stories portray a supposed utopian society in which one character, usually the protagonist, rebels against his commnuity and what it stands for, often times to bring about a specific change. One man or woman dares to be different. Three such examples that incorporate strong hints of premonitory information are "Brave New World", "Player Piano", and "Anthem". The novels often begin by introducing aspects of the corrupt society. For instance, in Aldous Huxley's account of a futuristic society, the world is made up of cloned castes of individuals, their entire futures determined at the point of their labora... ...three step patterns leading to societal downfall or gradual improvement, many dystopian novels achieve an ambiguous effect by their close. Each piece of literature leaves out one vital details that could determine exactly what happened, leaving the reader to infer what occurred based on his own thoughts and opinions. Oddly enough, this ironic way of ending continues with the overall themes of the books, showing that as one must make his own decision regarding interpretation of the novel's conclusion, all of the world's people must be left to choose their own fate. Works Cited Atwood, Margaret. "The Handmaid's Tale". Boston: Houghton, 1986. Huxley, Aldous. "Brave New World". New York: Harper & Row, 1969. Lowry, Lois. "The Giver". New York: Laurel-Leaf, 1993. Rand, Ayn. "Anthem". New York: Signet, 1946. Vonnegut JR, Kurt. "Player Piano". New York: Dell, 1983.
Tuesday, November 12, 2019
Beer Industry Marketing Analysis Essay
The Beer makes up most of the alcoholic beverage industry, with a 74% volume in 2002 (Alcoholic Beverages, 2005). The production of beer around the world has increased from 36. 85 billions gallons in 2000 to 38. 78 billion gallons in 2003 (Alcoholic Beverages, 2005). Beer production has been a part of society close to the beginning of civilization. A Mesopotamian tablet dating back to 7000 B. C. contains a beer recipe named ? à §wine of the grain (Alcoholic Beverages, 2005). In 1292, a Czech Republic town produced its first pilsner beer. A prominent beer brand, Pilsner Urquell, brewing dates back to the early thirteenth century. Beer is produced with a mixture of mashed barley, malt, and rice or corn. U. S. brewers use filtration systems as well as add additives to stabilize the foam and allow long lasting freshness. Bottled or canned beer is almost always pasteurized in the container in prevent the yeast from further fermentation. After 1996, the U. S. beer industry had consistent growth with about 3,500 brands on the market in 2002 (Alcoholic Beverages, 2005). The U. S. exported beer to almost one hundred countries worldwide. The beer industry peaked production with 6. 2 billion gallons in 2003 (Alcoholic Beverages, 2005). The U. S. beer industry haws over 300 breweries. However, this industry is dominated by three companies: Anheuser Bush (45% of the industry), Miller Brewing (23% of the industry), and Adolph Coors (10% of the industry) (Overview of the U. S. Beer Industry, 2005). MARKETS BASIC PRODUCT/SERVICE OFFERINGS There are several different types of commercial beer, consisting of pilsner, lager, ale, stout, light, low-carb, malt liquor, dry, ice-brewed, bottled, draft, and non-alcoholic. Further, the U. S.market has been divided in to three categories: super premium, premium, and popular-priced (Alcoholic Beverages, 2005). In 2002, the U. S. Market Share Reporter stated that light beer consumed 40. 1% of the beer market, premium held 25. 9% of the market, and popular-priced beer held the remainder. Here is a brief description of the most popular types of commercial beers: ? à «Lager: a high carbonated beer, containing a low alcohol content, with a pale, medium-hop flavor ? à «Stout: a thick, dark beer, almost like syrup ?à «Porter: a sweet, malty flavored brew with a farley high alcohol content ? à «Malt Liquor: a mostly malt based containing high amounts of fermentable sugars ? à «Light: a reduced calorie brew made by decreasing the grain amount used when brewing or by adding enzymes to break down the starch content in the beer (Alcoholic Beverages, 2005). One small segment of the beer industry is the micro brews. This segment as well as brewpubs had a double-digit increase in the U. S. throughout the early 1990? à ¦s (Alcoholic Beverages, 2005). However, this increase started to decline toward the end of the 1990? à ¦s. This was mostly due to overexpansion. This did not stop all the microbreweries from continuing to open in the U. S. which allowed this market to show considerable growth. In 2002, the U. S. reportedly had 396 microbreweries, 46 regional specialty breweries, and 994 brewpubs (Alcoholic Beverages, 2005). III. MARKET STRUCTURE AND ATTRACTIVENESS Market Structure The three major players in the brewing industry, Anheuser-Bush, Miller, and Coors Co. , have started increasing their market shares at the expense of smaller national brewers. The alcoholic beverage industry has gone through a consolidation period since the consumption rate has declined over the past few years (Overview of the U. S. Beer Industry, 2005). One of the markets that have flattened in this industry is the domestic beer market. This industry has hit a mature stage where consumption rates have flattened. This caused price increases to help suffering companies increase its profit margins (Overview of the U. S. Beer Industry, 2005). This along with increased vertical integration and inherent production economies makes it very difficult for a inefficient major industry player to compete nationally. The market that is dominating the brewing industry is the micro brewers. This group has found a niche market in the beer industry and has steadily driven the market share upwards. These companies normally target the smaller market segments and do not try to compete with the large industry brands. To achieve such successful profit margins, the micro brewers have the production process under contract with a regional brewer (Overview of the U. S. Beer Industry, 2005). Attractiveness The attractiveness of the beer industry is steadily growing. However, it is not growing in to area of large domestic brewers. This area of the beer industry has hit a flat consumption growth. The area that is become more attractive is the micro brews. From 1999 to 2002, the micro brew market grew almost 11 percent in the U. S. (Future of â⬠¦Ã¢â¬ ¦ Specialty Beer, 2004). This has caused the major companies in this industry to break into this niche market by combining forces with smaller companies or penetrating the market with a new micro brew product line. This niche market remains attractive to any investors due to the fact that the micro brew consumers will not react negatively to higher prices or price increases (Overview of the U. S. Beer Industry, 2005). The other area in the beer industry that continues to flourish is the international beer market. From 1999 to 2003, the market share for imports grew from 9. 1% to 11. 9%, respectively (Future of â⬠¦Ã¢â¬ ¦ Specialty Beer, 2004). Not only does the increase in market share hinder the domestic brewing companies, but the average case for imported beer is $24. 27 and for domestic beer is $16. 47 (Beer Report, 2003). This shows that imports sales are much higher due to increase in market share. As well, from a revenue stand point the international market has a higher attractiveness over the domestic market. From this, U. S. beer firms have penetrated into the international market by joining with international brewing companies to become American distributors for their brands. The continuing growth of U. S. beer firms penetrating international beer markets are due to the continuance of licensing agreements, direct exports, and foreign investments (Alcoholic Beverages, 2005). IV. Porter? à ¦s Five Forces Model A good way to look at the beer industry is by using the Porter? à ¦s Five Forces Model. This analysis will help analyze the attractiveness of the industry as well as discuss the ease of entry and exit. Threat of Substitutes: Substitutes for this market include wine and distilled spirits. The wine industry consists of grape wine, sparkling wines, brandy, and fermented dinks (Alcoholic Beverages, 2000). Most distilled spirits are based on name brand products including vodka, gin, rum, whiskey, and liquors and cordials. Both of these markets have a major capability of expanding due to international exports. Another substitute for the domestic beer market is the higher priced brewed beverages including micro brews or imports. Though these products do carry a much higher price, the customers willing to pay higher prices are capable of using a substitute. Threat of New Entry: The threat of new entry in this market is relatively low. The legal costs and economics of scale in the manufacturing and distribution areas of the beer market are strongly weighed to successfully compete (Overview of the U. S. Beer Industry, 2005). This prohibits most potential entrants. Buyer Power: Since there are many different competitors and substitutes in the alcoholic beverage industry, the buying power is in the hands of the buyer. The only approach to sway the consumers buying behavior is through advertising and marketing. Supply Power: Some breweries in the U. S. hold no supply power. All the company is responsible for is brewing the beer. On the other hand, the large domestic beers, for instance Coors Brewing Co. , have a manufacturing plant where it controls of the manufacturing process with it products. Companies who have this capability hold huge amounts of supply power. This sometimes eliminates manufacturing costs from another company. Intra-Industry Rivalry: Competitive rivalry remains strong amongst the three leading companies in the beer industry, Anheuser-Bush, Miller, and Coors. These three companies battle against each other through advertising and market share. The micro brews in the beers industry also compete against each other to hold a competitive advantage over other products at that level. This area of the beer industry competes as well using advertising, packaging, and market share. Political Variables/Trends There are quite a few political variables to consider in the beer industry. The first issue in this industry is the implementation of taxation on alcohol sales. Governments around the world strong believe in taxation on alcohol to both increase revenue and decrease consumption (Alcoholic Beverages, 2005). This trend has been effective since the consumers continue to purchase the products no matter how high the prices. The U. S. has had the lowest tax rates on its alcohol sales compared to other countries. In 1991, the tax rate on beer doubled to $18 per barrel, equally 16 to 32 cents per six pack (Alcoholic Beverages, 2005). This was a sharp increase from its previous tax rates. The next political view most companies have had to deal with in the alcoholic beverage industry is the issue of alcohol abuse. Many companies have to monitor how it markets its products to now allow the persuasion of binge drinking or excessive drinking. The National Institute of Alcohol Abuse and Alcoholism estimates costs of $140 billion per year relate to alcohol abuse (Alcoholic Beverages, 2005). Drunk driving has been another issue that beer companies have come under attack in relation to beer sales. The government has pasted several laws in the past to stricken the drink and driving laws. The U. S. Senate passed a law to decrease to legal blood-alcohol level from . 10 percent to . 08 percent. As well, a bill was passed regulating the legality of having open containers in a moving vehicle. This was passed in the Senate making it illegal to have any open containers in a moving vehicle. Marketing to minors was another issue that several beer companies got slammed with in 2004. Lawsuits were filed stating that some of the marketing tactics in the beer companies commercial were intention targeting underage drinkers (Lawsuits, 2004). The courts argued that the material used in the commercial ads were young video games and models ? à §chosen to appeal to underage consumers (Lawsuits, 2004). Some of the brewing firms decided to implement underage drinking warnings in its ads to cover itself from any future litigation Economic Variables/Trends The economic trend in the large domestic beer market has pretty much flatten entering in the maturity stage in the product life cycle. This will mean that sales will mostly stay consistent with little increase. Unless the major companies can try to dominate the niche markets in the beer industry, they will need to use advertising and marketing to drive sales. The fear of consumers switching to a substitute product like the micro brews could be present. Thus, branching out into that niche market would help the companies to gain higher market share and increase sales. Social Variables/Trends The major social trend in the beer industry is the ? à §low carb craze (MacArthur, 2004). Americans have entered into a low-carb phase. Beer sales decrease a good amount following the introduction of this phase into the American food markets. Anheuser-Busch had a heading start when this phase started since it was the first to implement a low-carb beer, Michelob Ultra, into the alcoholic beverage industry. This sparked a spin off with other major companies and soon mostly all major players in the industry had developed a low-carb beverage (MacArthur, 2004). Anheuser-Busch, Coors Brewing, and Miller were putting together a $300 million media campaign supporting any brands that help avoid a beer belly (MacArthur, 2004). In 2003, Bud Light still led the market with an increase from 2. 6% to 8. 1% while Coors Light volume decreased from 0. 6% to 8. 5% of the market share (MacArthur, 2004). Technological Variables/Trends Technology in this industry is mainly computer based focused. Companies use computer software and equipment to allow for efficient production of the products being manufactured. Also, increase in technology variables could mean better advertising strategies due to the technology created. On top of being used to speed up the production and efficiency of service, new technology also has been used to pull well-defined reports that become useful with inventory and point-of-sale purchases. V. ECONOMIC PROFITABILITY ASSESSMENT VI. MARKET POWER DISTRIBUTION AND PERFORMANCE VII. TARGET RECOMMENDATIONS
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