Analyzing the Impact of Weather Conditions on Beer Sales: Insights for Market Strategy and Inventory Management

Purpose: This study analyzes the impact of weather conditions, holidays, and sporting events on beer sales, providing insights for market strategy and inventory management in the beer industry. Research design, data and methodology: Beer types were classified into Lagers and Ales, with further subca...

Full description

Saved in:
Bibliographic Details
Published inAsian Journal of Business Environment (Online) Vol. 14; no. 3; pp. 1 - 11
Main Authors Sangwoo LEE, Sang Hyeon LEE
Format Journal Article
LanguageKorean
Published 2024
Subjects
ARMAX Model
Time Series Analysis
Weather Conditions
Beer Sales
Market Strategy
Online AccessGet full text

Cover

More Information
Summary:Purpose: This study analyzes the impact of weather conditions, holidays, and sporting events on beer sales, providing insights for market strategy and inventory management in the beer industry. Research design, data and methodology: Beer types were classified into Lagers and Ales, with further subcategories. The study utilized weekly retail sales data from January 2018 to August 2020, provided by Nielsen Korea. An ARMAX model was employed for time-series analysis. Results: The analysis revealed that increasing temperatures positively influence sales of Pilsners and Pale Lagers. Conversely, higher precipitation levels negatively affect overall Lager sales. Among Ales, only Stout sales showed a significant decrease with increased rainfall. Sunshine duration did not significantly impact sales for any beer type. Humidity generally had little effect on beer sales, with the exception of Amber Lagers, which showed sensitivity to humidity changes. Holidays and sporting events were found to significantly boost sales across most beer types, although the specific impacts varied by beer category. Conclusions: This study offers a detailed analysis of how weather conditions and specific events influence different beer type sales. The findings provide valuable insights for breweries, beer processors, and retailers to optimize their market strategies and inventory management based on weather forecasts and seasonal events. By understanding the consumption patterns of each beer type in relation to environmental factors, businesses can better anticipate demand fluctuations and tailor their operations accordingly.
Bibliography:KISTI1.1003/JNL.JAKO202421143213552
ISSN:2765-6934
2765-7027