Part1 The main decision problem for Boston Beer Company is whether or not it should remain in the light beer market. This is followed by four subsidiary decision problems if the answer to main problem is yes: should BBC create a new light beer brand, and if so what positioning should it take, should they keep Lightship, and if yes, should BBC maintain or change Lightship’s positioning. The research problems are as follows: it is profitable for BBC to remain in the light beer market, what are the growth trends, what role does light beer play in the retail scene, what types of people drink light beers, what are their values, is the positioning of Lightship in line with what light beer drinkers seek, and if not it is feasible to change its …show more content…
A light product would increase sales in restaurants and bars. Furthermore, retailers are allocating more shelf space to light beer in response to its heightened popularity. More shelf space equates to more opportunities for sales. Finally, Miller projected that consumers would upgrade their preferences to high-end brands. As a quality craft beer company, BBC will definitely enjoy increased profitability should this outlook become true. BBC should re-enter the light beer market by first abolishing the Boston Lightship brand. Not only is it an economical burden (fewer than 3,000 cases in sales does not meet the 5,000 cases cut off point), but also its brand image is virtually non-existent, and its product design contrasts with the values of light beer drinkers. While the weak image can be bolstered with increased marketing efforts, a flaw in the product design would be too much to fix. Therefore, a new light brand is proposed. This new product should differ from Lightship in many aspects. Firstly, the new product should incorporate the brand Samuel Adams. This will create brand awareness with an already well respected product. Extensive marketing efforts during the introduction of the product phase should be used to help the new brand pick up speed. Additionally, incorporating the Samuel Adams image will satisfy the desire of drinkers for social status. While the
The author chooses t0 write the report about Anheuser-Busch’s Bud Light because it is the best-selling beer in the world. In this report the author has outlined in detail the current status by using the SWOT and PESTLE analysis of the company Anheuser-Busch
Cons- It will cost the company $4.69 more per barrel to produce a light beer. There is no guarantee the new product will be a success. It could possible hurt the brand name.
Brand plays a key role in the beer-purchasing process, along with taste, price, special occasion,
Using clever and borderline juvenile material Bud Light has seen much success in their targeted consumers in American males of the ages 18-49. With great success we believe Bud Light has the potential to increase its reach and share by advancing marketing opportunities to females and exploiting their other product lines. In doing so Bud Light must take a different approach from its perceived masculinity to an all-around and more suitable approach to our female audience.
The next project was bottling Gordon Biersch signature beer and retailing it. This had three biggest challenges: this project was entirely Gordon’s baby and demanded time and attention; secondly the freshness of the bottled beer versus the freshly brewed was an issue for which they decided the beer would have a shelf life no longer than three months. Thirdly and the most exciting challenge was the head-to-head competition with other microbreweries and premium beers. Despite the tough competitive environment, Gordon Biersch aimed to achieve 11% of the market in three years (by 1996). This retail venture required huge investment, thus they decided to start small to prove to the investors that they could pull it off.
According to Boston Beer Portfolio (1997) showing that Boston Lager and Seasonals have grown by 5% and 10% respectively since 1996. Moreover, if we take a look at Exhibit 7 showing men preferences over regular beer we will see that 45% of weekly servings are SAM (Boston Beer Product). People may rely on their past experience of drinking regular beer by BBC and take a chance to try light beer by the same company, switching from Bud and Amstel to Lightship.
The memorandum will analyze the proposed new product launch of Mountain Man Light (MMLight) for Mr. Chris Prangel, the future owner of the Mountain Man Beer Company (MMBC). More specifically, the memorandum will consider the advantages and disadvantages of launching MMLight, as well as a cost-volume-profit analysis of the proposed new product launch. The memorandum will conclude with recommendations for Mr. Prangel’s consideration.
a) The consumers’ tastes were changing. According to the case, the beer consumption had declined by 2.3% due to the competition from wine and spirits-based drinks. What’s more, an increase in federal tax as well as health concerns also caused the decline of the sales of beer.
Boston Beer, in response to consumers’ preference changes to more flavorful and bitter tasting brews, was founded in 1894. Boston Beer implements a “quality at any cost” strategy with a strong emphasis on product differentiation and implementing quality ingredients into its products. For instance, Boston Beer was the first company to employ a stamped freshness date on its bottles and ingredients are imported from around the world. Additionally, Boston Beer relies heavily on contract brewing to gain competitive advantages. Boston Beer’s contract brewing strategy results in lower overhead and transportation costs, as well as
When purchasing beer, customers have a wide variety to choose from. This provides customers with some power, as there are no switching costs between choosing one beer over another. Interbrew could focus on differentiation in order to combat this. They could market their premium beer
Anheuser-Busch, InBev is a Brazilian-Belgian beverage and brewing corporation headquartered in Leuven, Belgium. In 2016, the company acquired SABMiller to widen its operations. InBev is estimated to command a global market share of 28 percent. Further, the company’s brand portfolio includes soft drinks and beer, such as Corona, Budweiser, Stella Artois, Beck’s, Leffe, and Hoegaarden. InBev plans to launch a new alcoholic product into the market to attract back consumers who have moved away from products, such as Budweiser and Bud Light. This paper seeks to analyze the facility layout of AB InBev regarding how to address production of the alcoholic drink.
Asahi Breweries’ market performance in the past three years had amazed the Japanese business community. Being a marginal player before 1986, the company had recorded an increase of 71.9% beer sales volume in 1988 while the whole industry grew only 7.6%. At the same period, the company’s market share grew from 10.5% to 20.6%. The company’s current flagship product is its Super Dry beer, a revolutionary beer with an appealing and a distinct sharp taste. Accordingly, Asahi’s competitors have also moved into the dry beer market and attempted to capitalize the surprising profitable opportunity. Thus, Asahi has encountered many challenges resulted from the high growth rate of sales and emerging competition. Asahi’s capital infrastructures and
Overall future of the beer looks tough as four main brewers are experiencing overall decline in business performance. There has been a drop in sales and yet new shift in customers´ preferences. Effective competing approaches are no longer a matter of differentiation of regular beer but increasing a variety of low-alcohol products.
Competition in Belgium is huge in beer market. According to the MarketLine Industry Profile article (2014), “the beer market in Belgium is consolidated, with the top four players controlling 78.9% of the market. Some large beer producers have begun to employ brand management strategies in order to ensure their brand is identifiable to the public. This is
A Project on Marketing Strategy adopted by UBL for Kingfisher Beer A Project on Marketing Strategy adopted by UBL for Kingfisher Beer CONTENTS 1. Executive Summary 2. History, Contents, Classification and Types of Beer and its Making 3. Board of Directors 4.