Mountain Man Beer

4c. What is the likely future of competitive brewers? What is MMBC 's market/competitive position?

4. Maintain brand equity with the distinctive bitter flavor and slightly higher-than-average alcohol content of Mountain Man Lager.

     In this paper I will be talking about the U.S. beer industry and in short an overview of the brewing industry worldwide. I will talk about the barriers to entry, economies of scale, government intervention, pricing, current market trends, product differentiation, and imports. The focus being mainly on the U.S. brewing industry oligopoly. The U.S. brewing industry has three major players: Anheuser-Busch, SAB Miller, and Coors/Molson. Anheuser-Busch is currently the largest brewer in the world, producing over 100 million barrels a year. Anheuser-Busch currently owns over 50% of the market in the United States, with Miller trailing behind at 20% and Coors at about 11% with the rest of the market occupied by imports and craft breweries. When analyzing any industry, how easy it is for newcomers to enter the market is a great importance. If there are high barriers to entry

In a world where large, corporate breweries rule the market, craft beer is created to please an audience that applauds the styles, techniques and flavors. Though craft beer can be purchased through several different outlets, the best place to thoroughly enjoy the entire experience of the specially made beer is in the brewery where it was made. The article titled, “In Lean Times, a Stout Dream” in The Wall Street Journal1 states that, despite the hard economic times and consequent consumer cutbacks, sales of craft beer, the industry 's fastest-growing segment, rose

One of the weaknesses to distributing Coors beer in the two counties is the competition of other domestic and microbrew beers. Although the consumer and retailer willingness to buy Coors beer is high, will they actually purchase Coors beer when it becomes available to them? The questionnaires have strong feedback for Coors beer in the Delaware counties but people may become biased by their customer loyalty to other beer brand. There is a big enough marker share for Coors to be implemented, but will Brownlow be able to succeed in this competitive industry.

Q.5 What other changes would you suggest to Grolsch’s historical Strategies?  I suggest that Grolsch use a global strategy in the future. They should continue to offer the standard products of the Grolsch premium Lager and

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

Our first reason for not introducing the light beer is because it goes against the company culture. Many members of upper management do not support Chris’s decision to launch a light beer, creating disjointed opinions and feelings that will reduce output or the willingness to create a shared goal. For instance, John Fader, the Vice President of sales feels that the light beer will take away time, resources, and attention from their Lager. In order to produce a new product, the whole company must think in a like-minded manner. Chris’s decision is based on optimistic assumptions instead of facts. If he implements his decision MMBC may alienate its most loyal customers, which would destroy its 53% brand loyalty. Brand equity is increasingly important so destroying it would make MMBC less competitive. Also, MMBC’s authenticity comes from its Lager product. Therefore by altering the product to appeal to a more general audience it would diminish the created authenticity. It is apparent from Exhibit 6B, consumers prefer mainstream light beer brands such as Bud Light, Miller Light, Coors Light. Thus, MMBC (as a non mainstream brand) would have difficulty penetrating this market. In addition, we feel

Mountain Man Lager is currently offered by MMBC and is considered a premium beer product. Lager beer is generally seen to be in the mature stage of the product life cycle, and this carries implications for MMBC in terms of proposing appropriate measures to address the declining sales of its

With this plan Chris expects that MMBC regains the beer market leadership in the U.S. East Central Region.

Craft beer should not only be sold as premium beer among graduates and people with income of more than 75000 USD but also to people with moderate income.

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

5. Create perception from customers to be as an excellent value for money and more reasonably priced than their competitors’ products.

Although sales of premium brands have fallen in a steady response to the growing popularity of the craft beer. The industry revenue has been stable over the past 5 years. As a result, from 2011 to 2016 the industry revenue is expected an increase and growth annually at 6.7 percent over the five years,with a total of $39.5 billion . (IBISWorld iExpert) In the long-term, these numbers are expected that grow 0.9 percent annually within the next five years. The potential growth will be seen in the traditional and premium beer sector. As a response, the giant companies in the industry Anheuser-Busch InBev and MillerCoors look forward into the merges and acquisitions as a strategy to maintain market dominance. The strategy is based on the

Strengths:The largest producer; Improved productivity; strategic with foreign producers; Two independent distribution Weaknesses:Low volume of sales of nonbeer products; Antitrust restrictionOpportunities:Positive volume growth of beer sales; New and attractive market Threats:Rising foreign firms’ competition; Tariffs elimination; Rising imported ingredients cost