The Bud Light brand is second to none when it comes to light beer and a good time. Although, first considered a flop in the United States after its introduction in 1982, Bud Light surged up the charts after a rebranding effort in 1986. The “Gimme a Light” campaign by the D’Arcy McManus & Mansius agency altered the brands path forever. Since then, Bud Light has drastically increased its market share while still maintaining its success in the global light beer and beverage market.
The purpose of this research paper is to analyze Sam Adams and the global craft beer market. I will apply microeconomic models to analyze the supply and demand conditions for Sam Adams, its price elasticity of demand for products, cost of production and the overall market. There will be recommendations to maximize future profits and sustain success for Sam Adams. In this paper I will also analyze the craft beer industry and recommend actions for better management of supply and demand, improving the cost of production and the different barriers of entry that Sam Adams can utilize to impact its future in the craft beer industry. Applying the concepts of variable and fixed costs, I will make recommendations for its output decisions and profitability that will help them succeed in a monopolistically competitive market structure. In the conclusion of this paper I will make recommendations to manage future production and sustain its success, as well as evaluate the business structure and effective decision-making strategies. The craft beer industry is a monopolistic competition because it has the ability to allow many firms to produce similar good or services, but it at the same time allows each firm to make independent production decisions and differentiate their product from the competition by creating its own pricing.
2. Locations – Refers to the significance of where one thing is in relation to another. The study of location is basically how many physical characteristics (harbours, riviers, fertile plains, and mountaineous terrain) affect human settlement, and the way places are used.
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
Anheuser-Busch “is among the global company’s largest and most technologically capable breweries” (About, n.d.). On Anheuser-busch.com, you can find a lot of information about the company and their products. The headquarters of Anheuser Busch is located at One Busch Place St. Louis, MO 63118 (About, n.d.). The most known beer families that they produce are the Budweiser and bud light Family. There are numerous brands that Anheuser-Busch produces aside from Budweiser and Bud light. Initial searching for Bud Light Company because most of my family is enthralled by this beer, and upon further researching the beer brand, it was surprising to find that it was actually owned and manufactured by another company, Anheuser-Busch, that also manufactured
New Belgium brewery has increasingly grew throughout the years since their development in 1991. Despite the dominance of the “Big Three” (Budweiser, Miller, and Coors), NBB needs to be aggressive and strive to invest in the attractive beer industry in able to grow more. If positioned correctly, NBB and its main brand, Fat Tire, can continually grow. An evaluation of the industry, the business itself, its brands, and the customers and competitors is needed in order to be continuously successful.
Developments of a more appealing offer for each segment so that the customers are more likely to be delighted or at least satisfied. Positioning is the process of placing the product in a clear distinctive and desirable place in the mind of the competitors in order to gain an upper edge.
Branding is the life blood of any product. A company’s product success is determined by it’s brand strategy. Hammond (2015) mentions that “A dynamic and memorable brand strategy must include both the brand personality (visual: graphics, colors, images, etc.) and the brand positioning (messaging: the words used to bring brand to life). That said, the brand personality and positioning should make consumers aware of the product being offered. (BOOK CITE) states that “A company lives or dies based on brand awareness. Consumers cannot buy products that they don’t know exist.” Therefore, proper branding and packaging strategies are deployed by companies in order to sell their product successfully. In the case of Pipeworks Brewing
Within the craft beer market, consumers have many products to chose. A product is anything offered within a market that which fulfills a want or need (Armstrong & Kotler, 2015). In 2012, over 1,750 breweries operated in the United States (U.S.), with over 1,920 the following year (Brewers,
Asia Pacific Breweries (APB) is the leading beer brewery in the Asia Pacific region. The company’s most iconic product, Tiger Beer, is notably one of Singapore’s most successful brands in the world and is valued at S$820 million.
First of all, penetration pricing is the major determinant of the price and that is employed when the product managers have to give most of the value to the customers and keeps a small margin. Chatime decided use penetration pricing where set a lower price of milk tea than the eventual market price to attract
The organization I have chosen to analyze is Ninkasi Brewing Company. “Back in 2005, neither Jamie Floyd nor Nikos Ridge knew exactly where their friendship would lead. What they did know was it would probably center around beer” (Ninkasi, n.d.). In 2006, brewing became a reality for these two friends as they made their first batch of Total Domination IPA inside a leased space within a German restaurant in Springfield, Oregon. Once the small brewery was established and equipped with a 15-barrel brew house, the two decided to name their
Branding has been effectively used as a strategic tool for marketing by innocent smoothies and that helps the company to maintain its share in the market or in keeping its competitive position. Innocent has developed its brand image by providing excellent satisfaction, by being genuine, healthy and socially responsible in the eyes of their consumers and once the image is developed, they were able to attract the customers. It is because of brand and its perceived value that consumers are loyal and committed to the Innocent products and they do not look for any substitutes (Ginden, 1993). Customers also perceive it less risky in buying a brand product with which they are emotionally attached. It is more important for products like innocent drinks which the customers have to consume and which has direct impact on their health and body.
Place – Place is also very important in the terms of business because before opening the business they should consider the location properly that are they targeting the proper market according to their business. Place must be easy accessible for customers, suppliers etc.