Craft beer makers make small profits as a result of their hard work because they constantly need to invest in order to be able to keep up with legislations imposed by larger companies. The fact that the number of beer connoisseurs is much smaller than the number of individuals who believe that they like beer and who are likely to drink anything that is in front of them is one of the principal issues with craft beer. In order to make their products available to a wider public, small breweries need to invest in advertising and need to present beer aficionados with the elements that differentiate their beer from more common beer types. It is difficult to assess the effects that such a strategy would have on their profits, as a dedicated brewer is even likely to end up spending much of his or her profits on advertising techniques. With…… [Read More]
Many different herbs and spices were used to flavor beers in these unique mixtures. Historian Tesoro says, "Among other things, juniper berries, sweet gale, blackthorn, oak bark, wormwood, caraway seed, aniseed, bay leaves, yarrow, thorn apple, gentian, rosemary, tansy, Saint-John's-wort, spruce chips, pine roots - and above all henbane found their way into these Grut mixtures" (Tesoro). Many of these herbs could be dangerous in even small amounts, and some, like henbane, could provide hallucinations. Because of this, beer began to be viewed superstitiously.
One of the superstitions that began to swirl around beer and beer brewing was the legend of the "beer witch" or "brew witch." Supposedly, these witches cursed the ingredients and could spoil a batch of beer. Superstition surrounded the brewing process, and of course, sanitation was not what it is today, which also contributed to the failure of many a batch of early beer. Since brewing…… [Read More]
We will briefly examine the history of some of these companies to analyze the reasons for their success and failure.
Anheuser-usch is the number one beer company not only in the U.S.A. ut in the world. The company was founded more than 150 years ago by a German immigrant, Adolphus usch. Its flagship product -- udweiser beer was introduced 120 years ago. The company has survived such traumas in its history as the prohibition years, increase in taxes by the government, changing trends in customer tastes as well as continuing competition from domestic as well as international beer companies. After the second quarter results of 2001, the company declared record earnings and sales. This was their eleventh consecutive quarter of double-digit growth. In terms of beer volume, the company shipped 62.6 million barrels of beer in 2001, up 2.1 million barrels or 3.5% over the previous year. A summary…… [Read More]
Brewing companies must therefore not only fight for incremental market share with competitor's brands, but must address the issue of consumers trading down by highlighting the appeal of the premium brand vs. The budget brand.
Game theory comes into play in the beer market because the mainstream beer market has been static for many years. hile the import and craft beer segments have grown steadily in recent years, the mainstream market has stagnated. Thus, the mainstream beer market has become a zero-sum game. This has increased the focus in the industry on lifestyle advertising in an attempt to steal customers from competing brands. This is doubly important because all companies must contend with limited capacity for price increases and therefore can improve margins primarily through cost reductions. This leaves all major brands with recipes that involve cheap ingredients in sparse quantities -- there is little differentiation in terms of product…… [Read More]
The commercials make no references at all to the holistic qualities of the product itself. By contrast, the Coors Light commercials also emphasize the special patented 'freshness label" that indicates when the beer is perfectly chilled. The commercials also make explicit references to the clarity and purity of the mountain springs depicted in the product labels.
The Coors Light commercials seem to combine three specific marketing messages: (1) the sports-minded "regular-guy" appeal of the main characters; (2) the sports-minded orientation of the characters and the implied testimonials about the product from the NFL coaches; and (3) the freshness and optimal coldness feature of the freshness label. The Dos Equis commercials ignore the characteristics of the product and focus exclusively on the messages and connotations implied about the character of the individual presented as the representative consumer of the product. However, that element is multi-dimensional in that it presents…… [Read More]
EBBD Simulation seems to be successful at its goal in helping people understand how the Bull-whip effect actually impacts people who are in charge of ordering products for distribution to customers. The Bull-whip effect demonstrates that fluctuations in orders build as they head upstream in a supply chain, so that small fluctuations in demand can cause huge fluctuations in supply at the top of the chain. These fluctuations, in term, can impact availability, which has an effect on demand. Therefore, rather than supply and demand creating a linear graph, fluctuations actually cause supply and demand to create a wave shaped pattern with increasing wave height that grow in relation to fluctuations in demand.
One of the interesting things about the EBBD simulation is that it focused on the problems experienced by the end-user. It provided a simulation with four potential small-craft brewers and how a local business owner would deal…… [Read More]
eer and Civilization
eer Production and the irth of Civilization
At various points in human history, developments in civilization have occurred due to various catalysts. Eighteenth century was characterized by the emergence of the Enlightenment, where secularization and rationalization became the dominant forms of socio-political thinking. Nineteenth century, meanwhile, was known for giving way to Industrial Revolution, leading to the emergence and development of modernism and capitalism that prevailed from the 20th century to the present. Despite these catalysts and developments in civilization at every point in history, the question of how civilization began is an interesting inquiry, allowing us to understand when humanity had truly begun its ascent towards higher social and intellectual progress.
One of the theories presented about the origin of civilization is the theory that the production of beer served as the catalyst for a new civilization to begin. eer production, was traced back 10,000 years…… [Read More]
Beer is as synonymous with German culture as watches are to Switzerland. The centrality of beer to German culture is owing to centuries of tradition, long before the unification of Germany in 1871. Although beer consumption in Germany has declined over the last several decades, beer continues to be a defining feature of modern German economic, social, and even political life.
Background and Pre-Modern German Beer
According to the German Beer Institute, beer has been brewed in Germany for about three thousand years. Until the 8th century CE, most beer was brewed at home for personal consumption. Because it is a domestic food product, and gender roles assigned women to domestic chores, brewers were almost exclusively women during the days of the Teutonic tribes. As Christianity penetrated Germany, brewing shifted toward semi-professional and eventually professional status. Christian monasteries and nunneries brewed the first commercial beers in Germany, using the proceeds…… [Read More]
Bud Light beer which is to be introduced in Turkish market. The paper has covered all the important sections of the marketing research proposal including background to the research problem, product and industry profile, internal and external analysis, research approach and methodology, and technical appraisal using timeline and cost analysis for the project.
The purpose of this paper is to present a complete marketing research proposal for Anheuser-Busch that wants to introduce its top rated brand, Bud Light beer in Turkish market. The marketing research proposal starts with the definition of the problem statement and proceeds by describing the product profile, market snapshot, SWOT analysis, and competitive patterns for Bud Light beer. The second section gives a brief explanation to the research objective and possible research questions that can be answered for the purposes of this study. The "esearch Approach' section presents a comprehensive description of the methodological framework including…… [Read More]
oland Beer Company
Score Card Performances
Customer Value Perspective
Process or Internal Operations Perspective
Learning and Growth Perspective
Creation of customer creation turnovers for assessment
Creating avenues where customers are able to meet their places of need
Assessment and increment of the customer values
Measuring performance processes
Improving on productivity of clients
Performance of assessments on metric operations
Satisfying various needs of employees
etaining large numbers of employees for increased performance
Maximizing organization in order to foster increased performance
Creation of an organizational culture that sustains high performance
Maximizing on technological approaches in order to foster quality and sustained productivity
Customers are a central concern in every business establishment. In order to arrive at an equitable business, customers should be accorded the best services in the market. Customer access to varied services enables the organization, like onald Beer Company, to live within a balance of the income rates…… [Read More]
After reading the first two chapters of the book, it is evident that Bennett is overwhelmed with the amount of information she acquired regarding ale and beer brewing in the late medieval period. Ale, Beer, and Brewsters in England: omen's ork in a Changing orld 1300-1600 is heavily saturated with historic information to the point that it is difficult to keep up with Bennett's arguments and train of thought, and easily causes the reader to lose focus and interest in the subject. Additionally, Bennett employs too many examples, which further adds to the historical saturation of the text.
Another issue arises through Bennett's inclusion of women within this historical context and within the brewing industry. Because Bennett focuses largely on the brewing industry and the changes therein, which affected all brewers regardless of age or sex, references to women seems tacked on and out of place. By focusing on what…… [Read More]
oland Beer Company
Strategies to realize the objectives, measures, and targets
The achievement of targets is the main goal within oland Beer Company. The company has implemented various objectives and strategies in order to achieve the set goals. Beer is one of the lucrative and tentative products in the present market. The present states of marketing strategies and options are related to the general performance of operations in the market. Many factors hinder productivity and sustenance of increasing performance in oland Beer Company. In order to ensure equitable achievement of the goals and objectives, the company has involved the following strategies (Dealtry, 1992).
Education and training
Education is one of the pillars that have sustained productivity of oland Beer Company. Through education, the company has managed to engage different parameters of difficulties and challenges. The prospect of having a stable state manufacturing and production is gained through the…… [Read More]
The objective of this study is to examine the differences in beer consumption in countries throughout the world and to attempt to provide an explanation for the differences in country consumption of beer.
Summary of eer Consumption Throughout the World
According to the Kirin Institute of Food and Lifestyle Report (2011) on Global eer Consumption by Country in 2010, global beer consumption "amounted to 182.69 million kiloliters in 2010, up 2.4% from the previous year, marking the 25th consecutive annual increase." (Kirin News Release, 2011) In addition, it is reported that China "remained the largest beer-consuming country in the world for the eighth consecutive year, consuming 5.9% more beer in 2010 than in 2009." (Kirin News Release, 2011) It is reported that NAFTA has provided its members "access to a beer market worth an estimated $73.36 billion dollars in 2002. (McGowan, ndp.42) The U.S. rewing industry is reported…… [Read More]
These criteria refer to the technical capacities (of producing beer through traditional brewing methods) and to the "first rate quality control capabilities." Taking into account the fact that oston eer sells a variety of products and not just one type of beer, it is safe to state that the flexibility of production provided by the contracts signed with various breweries represents an efficacious marketing choice.
The competition in the industry is harsh. In order to keep its position on the market oston eer uses various techniques. One of them is represented by the aggressive promotion. Another one refers to the construction of the brand identity, with a strong focus on the top quality of the provided products as well as on the active involvement in the life of the communities. A third strategy which the company appeals to is represented by the choice to use independent distributors who distribute…… [Read More]
A possible strategy for this group is to market Lightship as 'the healthy beer,' its 'less calorie' function becoming the 'reason to believe' that indeed, Lightship is a healthy beer and is BBC's response to the increasing awareness on the health benefits of drinking a Boston Beer.
Results of the field study support these suggested improvements in the marketing strategy of Lightship. Assessment of the light beer segment and results from the customer analysis showed two important findings that put BBC's light beer sales problem in the proper perspective: (1) "Core craft drinkers" of beers such as Boston Beer are not light beer drinkers, and (2) "No one had ever heard of" Lightship -- that is, as summarized in the study, BBC has a "great product" but has "no brand awareness" (9).
Thus, recommendations mentioned earlier are further reiterated. To address the main issues generated from the analyses, BBC must…… [Read More]
Continuing to expand these operations however would pose significant advantages for both parties. Some of these benefits are succinctly presented below:
The American brewery would face limited risks and these would be shared between franchisor and franchisee
Historical data on franchising operations reveal significant rates of success, explained primarily by the mutual interest of both parties franchise owner will be more inclined to promote the edhook Ale beer than an average wholesale distributor
Disadvantages are also incurred in the process and some of them are presented below:
edhook Ale Brewery would have to offer support to its Nigerian partners in the form of training or even funding
The American brand would be handled by foreigners and a negative result of the operations in Nigeria could materialize in a damaged reputation for edhook Ale Brewery
Both cases of wholesale distribution and franchise operations present advantages as well as limitations. Their ultimate…… [Read More]
This process, however, should be enriched with additions that would turn it into a fair international scheme and enforced by additional bodies.
Associated Press. 2004. De Beers Pleads Guilty in Price Fixing Case. July 13th edition, http://www.msnbc.msn.com/id/5431319/
Crossette, B. 2000. eport on Angola Sanctions is Challenged in the UN. The New York Times, March 16th Edition, http://www.globalpolicy.org/security/sanction/angola/report2.htm
De Beers corporate website, Accessed March 09, http://www.debeersgroup.com/en/Sales-and-distribution/Best-Practice-Principles/
Global Witness. 1998. A ough Trade: The ole of Companies in the Angolan Conflict. http://www.globalpolicy.org/security/natres/diamonds/1998/12rough.pdf
Nocera, J. 2008. Diamonds are Forever in Bostwana. The New York Times, August 8th Edition, http://www.nytimes.com/2008/08/09/business/worldbusiness/09nocera.html?pagewanted=1&_r=4&ref=business
Olson, D.W. 2002. U.S. Geological Survey. Mineral Commodity Summaries, http://minerals.usgs.gov/minerals/pubs/commodity/diamond/270302.pdf
Porter, M., Marciano, S. And Warhurst, a. 2007. De Beers: Addressing the New Competitiveness Challenges. Harvard Business School, Case study: 9-706-501.
Smith, J. 2003. Conflict Diamonds: esolving Africa's Worst esource Wars. Stanford - Program in Writing and hetoric.
United Nations. 2000. Fowler…… [Read More]
However, there are also smaller importers for specialty brews such as Paulaner operating in Malaysia as well. hile a smaller company will have more limited distribution, it will distribute specifically to the same types of establishments favored by Corona's target market, and German brews are generally not competing directly with Corona.
AB InBev owns 50% of Modelo at this point. There is the possibility that the company may decide to purchase the remainder of Modelo. If they do not, they are still something of a threat because brands such as Budweiser and Stella Artois, while positioned as mainstream brews in their domestic markets, are generally positioned as premium brands in export markets, the same tactic that Modelo employs for Corona. This puts those brands in direct competition with Modelo. It is interesting to consider that as long as AB InBev owns 50% of Modelo, they are unlikely to compete too…… [Read More]
At the same time, loans and borrowings have decreased in value from 2008 to 2009 with 14%. The decrease is explained in the note 40 to the Heineken N.V. balance sheet: the most important contribution to this is given by the repayment of some of the company's unsecured bank loans: the value of the unsecured bank loans in 2009 was 47.4% lower than in 2008. The approach that Heineken has taken towards its medium and long-term loans shows a prudent strategy aimed at reducing its debt-financed activity in favor of an increase in the shareholders' equity. The latter is accounted for mostly by the company's net profit in 2009, a net increase of 387% as compared to 2008.
Some of the profitability ratios are useful in evaluating the company's performance at the 2009 moment. The net profit margin will be calculated by dividing the net profit value by the total…… [Read More]
He spent approximately two decades continuing his work in the domain, even with the fact that he did not earn a lot out of the enterprise. He published several illustrated books, such as the "Encyclopedia of Tibetan Symbols and Motifs" and the "Handbook of Tibetan Buddhist Symbols." These two have had a heavy influence on Newar art and on Buddhist art as a whole, as he observed that even though his practice was relatively ignored in the UK, people in India and Nepal were particularly fond of his art. He collaborated greatly with artists in Asia from there on and the fact that he spent most of his time in the UK did not stop him from keeping Buddhist art forms alive in the est.
One of the most interesting facts regarding Beer is that he does not necessarily see his involvement in the world of art as an opportunity…… [Read More]
It is constructed, as its name indicates, on the five forces which define and characterize the competition within the industry. These forces are as follows:
The bargaining power of buyers
The bargaining power of suppliers
The threat of substitute products
The threat of new entrants
The competitive rivalry.
a) the bargaining power of buyers
At an individual level, the buyers do not have a bargaining power in the meaning that they cannot negotiate the price of a beer, nor can their consumption decision influence the company. Nevertheless, when they put up a united front and are considered a group, the bargaining power of the buyers increases significantly.
Throughout the past decades, the bargaining power of the buyers -- as a group -- has gradually increased and their needs and wants have significantly impacted the industry. The information in the previous section is evidence in this sense. For instance, the changing…… [Read More]
This is the goal of struggling readers. A dependent reader takes only a peripheral interest in the text. He gives it the minimum of his attention and approaches it only because he is forced. It is as though he is reading against his will and fighting all the way.
Beers provides an anticipation guide, but I don't necessarily agree that such a guide is very constructive or helpful. It deals solely with crass generalizations, and whether attitudes held before reading the text are still ascribed to after reading the text. For the most part, students' attitudes are going to be superficial and having them partake in an exercise of superficiality is likely to be counterproductive.
Beers argues that performing such activities will help to encourage students to become more involved with the reading. It will help them to engage their prior knowledge and challenge them to think. Beers recommends making…… [Read More]
products or service of your chosen organization, and two (2) key factors in the organization's external environment that can affect its success. Provide explanation to support the rationale.
De Beers is the world's famous diamond company, established in 1888, with proficiency in exploration, mining and marketing of diamonds. More than 20,000 employees make contribution to the communities in which we work. De Beers carries out profitable business which helps the government reach their aims of turning natural resources into natural wealth and is working to provide good long-term development for Africa. Anglo American and the Government of the epublic of Botswana are the two shareholders of De Beers, 85% and 15% respectively. This company is made up of fully owned partnerships, investments and subsidiaries. It is involved in most of the diamond chain value such as exploration in four continents, mining in Namibia, Canada, South Africa and Botswana; valuation, arrangement,…… [Read More]
Figure 2, 2009 Global beer Products egmentation provides an analysis of the distribution of 2009 sales of beer by type. Corona is considered a Lager and is in the most crowded area of the market, making differentiation difficult. Grupo Modelo's decision to concentrate on its channel alliances and partnerships is critical for their long-term growth in such a consolidating and challenging market. In a sense Grupo Modelo has chosen to seek out a services-based strategy to gain a competitive advantage by creating such strong alliances in its channels. This is an excellent decision on their part as it is clear the market is consolidating and losing differentiation by product.
Figure 2: 2009 Global Beer Products egmentation
2009 Global Market hare
Low and non-alcohol
ources: (Mayers, 2007) Analysis of EC Filings by Grupo Modelo (2009 -- 2010)
Defining…… [Read More]
Greg Smith's Beer in America: The Early Years -- 1587-1840: Beer's Role in the Settling of America and the Birth of a Nation, is a wonderfully smart and charming look on the history of beer and its connection to how America was founded and evolved into what it is today. Gregg Smith's account is an energetic recapping of early American history. It depicts beer as a foremost player, and vividly recreates the cultural and political background out of which it rose. One of the most significant but little-known characteristics of early American history is the part of beer in America's founding and formative years.
This decisive version of beer's effect on people and events that fashioned the birth of a nation dumbfound all who read it. Smith presents many key facts and events that in some way or form are connected to beer. Starting with the pre-colonial era and finishing…… [Read More]
De Beers and the Global Diamond Industry
The De Beers case study brings out a company that struggled to fit into the dynamics of the diamond market. The company enjoyed a satisfactory growth because the over sixty years that it made and controlled the supply of diamond. De Beers achieved this by adopting a number of manipulative strategies. These strategies included preventing smuggling of diamond, aligning all producers, and preventing stockpiling of diamonds. The focus of the company was to quash all the attempts of competition that may arise from all quarters. However, this strategy seemed not to work any longer after the new mining firms started selling their products through the open market and not through de Beers' Central Selling Organization (CSO). The new competitors were attempting to polish and cut diamond outside De Beers' value chain.
Describe the key mechanisms De Beers used to manage the…… [Read More]
Organizational vision with a global outlook had to replace the agency's reliance upon a successful dynamic within its internal organizational culture. Clients had to understand what Ogilvy could provide for their own brands, in a unique fashion, and to do this Ogilvy had to have a strong reputation or brand.
What is your assessment of the process Beers and her team went through to create the vision?
Although Beers' expansive vision statement was a seismic attitudinal change for the company, Beers deployed a fairly participative management style in achieving this vision. She was intent upon bringing many members of Ogilvy's senior executives into the debate, as she was still an outsider to the organization and thus did not wish to act in an entirely autocratic manner. By doing this, Beers focused on creating open chains of communication, to fully integrate the various divisions and members of the organizations, all of…… [Read More]
Charlotte Beers' work on the field of using corporate branding and imaging controlling factors within the government sector has been characterized in many ways as an example of what can go wrong when appropriate conditions and tactics do not come together as expected. Many commentators have specifically identified these efforts as an example of the miscalculation as to how to utilize corporate strategies for the benefit of larger national interests (Perlez, 2002).
In this memorandum, we outline how Ogilvy & Mather can and should undertake a direct reconsideration of this negative experience and convert it to a positive message of global promotion and opportunity for our many world clients. The current person in the position of undersecretary for public diplomacy comes from a government relations background -- arguably signaling that the U.S. government has all be decided that there is no value at this time in improvident the U.S.'s image…… [Read More]
All of these factos then contibute to the complexity of hiing senio intenational positions, and undescoe the HR issues that ae going to cause difficulties in the hiing pocess.
De Bees' ecuiting pocess is going to have to focus on those pofessionals in citical skill gap positions that ae accustomed to being in an industy that has complex ethical tade-offs that need to be made, yet has the necessay initiative level to attack manual pocesses that need to be updated to me maket-competitive instead of catel-sustaining. This becomes moe concete when the consideations ae taken into account of hiing a new geneal manage fo one of the company's many diamond fields in Afica. Anyone fom a manufactuing backgound will find the pocesses in these diamond fields achaic and nealy impossible to apply advanced Six Sigma planning techniques to, much less measue in any meaningful way. Thee ae also no eal…… [Read More]
This can only be accomplished by first focusing on the entire value chains' unmet needs, and given the monopolistic approaches of De Beers in this industry, channel partners and retailers will have many unmet process needs that once served could turn into a significant competitive advantage. The initial visits to each export market would need to be on a regular basis to build trust with each member of the value chain and also stabilize distribution channels first, and second, looking for innovative and creative ways to make adaptation and customization strategies successful in each market. Only by working to create these unique competitive advantages and most importantly, building trust throughout the entire value chain can a new market entrant be financially viable against cartels like De Beers in the long run.
Question 2 - Operations Management Questions for creating De Beers as a New Brand
Part I Process Map: Using…… [Read More]
In that situation, I could get a much better idea of when I could expect the backlog to clear and why the supplier was unable to meet my order requirements. I could also have used that information to convey to my customer my expectations of when I would be able to fulfill their orders. Having this ability to extract information would be very helpful. "While one strategy may work for a majority of companies, it may not be the best strategy for your organization" (Neal, 2010). It seems impossible to develop strategy without having strong forward and backward communication.
After this simulation, I was left with mixed feelings about computer simulations. It did help me understand the numbers, but the lack of ability to engage in meaningful communication left me extremely frustrated. I was also frustrated by some of the simulations limitations. Is there another source for root beer? Is…… [Read More]
Excellent Beer & Beverage Distributors
FROM: Ross Terna, Manager of Purchasing
Re: Quotes on Dock & unloading improvements
I am summarizing the information that we received from Acme Material Handling and Jones Construction regarding their quotes/bids on the work we requested. ~RT
ACME MATERIAL HANDLING QUOTE:
• 1 Acme Speed Roller Conveyor system
• Operating Specs: conveyor speed: 3 ft / second, Max spot load: 250 lb., length 45 ft., width, 3.3 ft.
• Price: $225,000
• Delivery: within 3 weeks upon receipt of order, 20% due on order, 80% due 45 days upon delivery
JONES CONSTRUCTION QUOTE:
• Demolition and rebuild loading dock to include 7.5 ft expansion on length.
• All labor, materials, and other expenses included in price: $175,000.
• Construction starts within 10 days of receipt of order and 10% payment. Estimated construction time is 21 days, with 50% due at…… [Read More]
At any rate, this approach would be highly congruent with Heineken's existing approach to branding given its current repertoire of 170 international brands and strategic partnering with local beer manufacturers. Such a partnership might be the best way for Singha to avoid being acquired outright by Heineken in the future as it continues to juggernaut-like march to global domination of the beer market.
Finally, because it is well established that bright sunlight can harm the taste of beer, it would appear reasonable to conclude that the brown-glassed Singha bottles protect their contents better than the clearer green glass used by Heineken. For tropical markets such as Thailand where product can be exposed to the harsh rays of the sun during transport or otherwise, the marketers at Heineken would be well advised to either darken the color of their glass containers or incorporate some ultraviolet protection in their bottles to avoid…… [Read More]
asically, without yeast which creates the alcohol, there would be no wine, at least not with an alcoholic base.
The progress of fermentation can be monitored or controlled in several ways. The most simple method is to observe the activity in the fermentation vessel. Sometimes in a laboratory setting, fermentation is often followed by weighing the fermentation vessel at various intervals which results in a record of the weight of carbon dioxide gas lost and exactly how much sugar remains in the vessel. The most popular form of control is a measurement of the density of a sample of the fermenting juice which can be accomplished by using a hydrometer which measures the remaining sugar's percentage in weight.
As to the taste of wine that results form this complex series of chemical manipulations by a chemist or fermentation specialist, the time required for complete fermentation of grape juice, either white…… [Read More]
Australia is considered to be a major beer drinking country, something that has traditionally provide a robust market for producers. Inter-state trade barriers have allowed for brewers in each state to flourish, something that benefitted James Boag, with its small domestic market in Tasmania. Boag's was able to use this strength to support its expansion endeavours, which ranged from the rest of Australia to as far away as the United States (Gale Group, 2004). The company faces some major challenges in the environment, including a social trend away from industrial beer, something that is forcing breweries both in Australia and around the world to seek out new opportunities. There are opportunities out there, however, a function of globalization and the information economy that increases the ability of companies to expand overseas and lowers the costs associated with marketing and market entry when they get there.
There are…… [Read More]
global branding of Stella Artois
Porter's 5-forces analysis of the beer industry
Bargaining power of buyers
The bargaining power of buyers is very high in the beer industry. Consumers have many choices, spanning from other alcoholic beverages to other brands of beer, including smaller labels as well as the major brands. Also, beer is not strictly a necessity. Consumers can conceivably 'do without' if the price is too high.
Bargaining power of suppliers
The bargaining power of suppliers is also very high in the beer industry. Beer companies are critically dependent upon obtaining specific input goods to create their brews. They need a high volume of input goods to produce their product, and they need a timely and steady supply. Good relationships with bottlers and distributors are also required to take the product to market.
Competitive rivalry is extremely high. All of the major beer brands are fighting…… [Read More]
Carlsberg also have the largest stable of brands in the country, and nationwide blanket distribution. Lastly, Corona has experience in dealing with Carlsberg, with whom it has distribution agreements Russia, Central Asia, Turkey and a number of other countries around the world.
Corona faces intense competition from InBev (now a-B InBev after its merger with Anheuser-Busch). InBev has a different model for international expansion, comprised of purchasing breweries all over the world. This secures the company local production and distribution. It has the potential to shut Corona out of its distribution chains, reducing Corona's ability to compete in some markets. In addition, two of a-B InBev's global brands -- Budweiser and Stella Artois -- compete directly with Corona is most markets as imported superpremium beers.
There are three tactics that Modelo can employ in order to compete against a-B InBev. The first is to shore up its distribution channels. If…… [Read More]
Corona Beer (Modelo)
Identify and discuss the trends in the global beer markets.
Driven by the rapid consolidation of breweries and channel-based selling organizations the global beer markets continue to experience flat or slow growth. With the cost of entry into this industry high from a capital investment standpoint, accentuated by high interest rates, the overall industry growth rates continue to be flat with differentiation at the product level contributing little to overall market growth. The key to gaining market share in the global beer industry today are distribution and selling alliances. Alliances and partnerships on the sell-side of breweries are very high priority, as are continued investment in information systems and technologies to streamline the supply chain operations (Sahin, obinson, 2002). Gaining greater supply chain efficiencies can significantly increase overall profitability by reducing stock-outs by minimizing pricing and delivery inaccuracies and increasing product quality. The brewery industry has as…… [Read More]
For intermodal exports such as bottling factory equipment we will utilize CPT (carriage paid to) and CIP (carriage and insurance paid to) in place of CIF for all modes of transportation including intermodal.
A in some negotiations we will use FOB (free on board) for bottling plants that purchase from us directly at a buyer named port of export where we quote the buyer a price that will cover all costs up to and including the loading of goods aboard a vessel.
Pro Forma Invoice - During the initial export transaction, we will utilize the pro forma invoice.
Pro forma financial statements and budgets marketing budget selling expense
Actual selling expense 6/30/2004 $0
Projected selling expense 6/30/2005 $450,000 advertisement promotion expense
Actual advertisement expense 6/30/2004 $0
Projected selling expense 6/30/2005 $150,000 distribution expense
Actual distribution expense 6/30/2004 $0
Projected distribution expense 6/30/2005 $104,000 product cost
Actual product cost 6/30/2004 $0…… [Read More]
They are able to extract premium pricing for what is otherwise an undifferentiated product, evidence of the brand's strength
The company is consistently profitable and has maintained a steady growth trajectory, including organic profit growth
Strong management has successfully negotiated Heineken through rapid consolidation and industry maturation, taking the company from a regional Dutch brewery to a global powerhouse in a few decades.
Heineken is a strong company, as evidenced by their track record of success. They have built a simple core of strengths by focusing on the beer business, refusing to be sidetracked by any distractions. This has allowed them to develop a relatively simple growth strategy and maintain it. The core of Heineken's strength is its ability to execute simple strategies very well.
Overleveraged…Heineken's expansions have left it with a balance sheet more suitable for a growth firm with high R&D costs, as opposed to a firm…… [Read More]
You are a police psychologist for a major metropolitan area. You are also a member of its hostage negotiation team. You have been called to a crisis incident at 3:15 P.M. On a Friday. It is in a residential area about three blocks from a middle school and a public library. The information you have at this time is that the subject is a 42-year-old male who is holed up in his house with his wife, son, and a family friend. He has murdered his next-door neighbor and is threatening to kill those in the house if his demands are not met. One of his demands is for immunity from the murder charge if he surrenders without harming any of the people in the house. His other demands are a case of beer and some fast food. He wants his demands met or "something will happen."u
Introduction…… [Read More]
Corporate Social esponsibility (CS) refers to the relationship between a business and the society and how can both can benefit mutually through a joint partnership. Caroll (1991) suggests four different aspects to be a part of CS and they are economic, legal, ethical and philanthropic. The economic aspect is the basis on which the business is built while legal responsibilities are encoded in law. Ethical responsibilities include doing what is right and just and above everything, philanthropic responsibilities include being a good corporate citizen and doing something good to the society and environment that has nurtured the business.
In this discussion, the CS activities of two companies in the same sector are analyzed. The first company is Asia Pacific Breweries that owns the Tiger Beer brand of products and the second one is Carlton & United Breweries that manufactures the Victoria Bitter brand of beer. A close analysis reveals…… [Read More]
Global randing of Stella Artois
Interbrew's centuries of experience in brewing, beer distribution and sales are all exemplified throughout their global dominance of worldwide beer consumption as presented in the case The Global randing of Stella Artois (eamish, Goerzen, 2012). With an exceptionally high price/Earnings ratio (P/E Ratio) indicating investor confidence in their brand, operations in 80 nations, with the top 10% of markets globally accounting for 86% of sales and 61% of volume production being generated by North America, Interbrew has a solid platform to build their future marketing, selling and product development strategies on. Despite a slow to no-growth level of performance for the global beer markets of just 1 to 2%, investor confidence continues for Interbrew and their performance over the time period of the case study, further signaling the strength of their operations and strategy execution (Marinov, Marinova, 1998). Interbrew faces the challenge of profitably growing…… [Read More]
Creative Business Thinking
Key Activities: There are two key activities in the microbrewery business. These are making beer and selling beer. The two are distinct processes, and are only loosely related. The beermaking process is fairly simple, and there are only so many ways to reinvent that wheel. So the key success factor with that activity is to brew beer that has no technical flaws, but also that has a character that appeals to the modern beer drinker. This means building a portfolio with a mix more lighter, more approachable beers and more full-flavored beers that appeal to beer geeks, like the sour program highlighted in on the Kickstarter site.
The second key activity is marketing. Beer distribution is a challenging business. Laws differ from state to state but there is often a third party involved, the distributor. Even with a distributor, microbreweries need to find ways to generate publicity…… [Read More]
This can hurt the company's ability to reach out to consumers. (Berghoff, 2009)
There are four categories of risks that must be considered when evaluating Boston Beer to include: clear enough, alternative futures, the range of future and true ambiguity. Clear enough is when there is a focus on ensuring that everyone understands the company and the different products. In the case of Samuel Adams, consumers can recognize and enjoy the brand. The challenge will occur when tastes change and how this will affect the way they see the company in the future. This is when the firm must be able to quickly introduce new products to address these needs (creating a clear enough image in the mind of customers). Over the last 15 years, this has been taking place with the introduction of new brands (as this is the most important aspect of their business model). (Bamforth, 2012,…… [Read More]
Businesses strive to influence product and service differentiation -- fully aware that the phenomenon occurs in the mind of the customer. Additive to differentiation of brands, products, and services, retailers are increasingly focused on differentiation of their stores as shopper destinations (Flint, 2010). Indeed, differentiation is a key element in the microbrewery industry, in which the customers' capacity for making product distinctions is foundational to competitive strategy. As a case in point, this paper will discuss the relation between differentiation and service-supply chain management in the microbrewery industry.
Service-dominant logic. As businesses move away from a product-focused to a customer-centric orientation, a service dominant logic has developed into a throughline (Flint, 2010). That is to say that, upon close examination of business configurations, service and servicing emerge as primary components of the value proposition -- fundamental components of the value chain. For their part, supply chain managers (SCM)…… [Read More]
The two basics to keep in mind is that managerial accounting should be used early and often and not just internal stakeholders should be heeded and listened to (Tutor2U.net, 2013).
In conclusion, Thai Airlines would benefit greatly from an entrenched and well-managed managerial accounting framework. It should supplement and complement both the financial accounting mechanisms of Thai Airlines as well as general process management, general product management, marketing, other accounting matters and general business decision making for Thai Airlines. Part and parcel of all of that is integrating stakeholder's expectations and conversely managing the expectations and perceptions of those same stakeholders is also vital on a number of levels. However, if all of the above is managed and managed well, then the outcomes for firms like Thai Airlines that use managerial accounting effectively will tend to be very good.
Holtzman, M. (2013, May 12). Managerial Accounting for Dummies…… [Read More]
creative) proved initially quite difficult. However, with vision and perspicuity in an extreme situation of her own, this chief executive was able to turn the fortunes of the firm around. Ogilvy's success today shows that the embracing of change, the only expected constant in business, is key to a successful visionary strategy. In one 2001 interview Beers said, on the subject of advertising, "The whole idea of building a brand is to create a relationship between the product and its user," that is unique. She was able to reconstruct just such a relationship between an advertising agency's own clientele and its particular, own new brand as an agency and the Ogilvy creative ethos. Just like the Dove women at the helm of the newly designed campaign, the restructured Ogilvy firm is striking, realistic, yet has a clear message and creative vision. (Starr, 2001)
Bennis, arren. (1994) On Becoming…… [Read More]
S. Constitution is on the side of the distilled spirits advertisers. The right to advertise is constitutionally protected commercial free speech under the First Amendment (Distillers spirits advertising in perspective). The First Amendment protection afforded to distilled spirits advertising is equal in scope to the First Amendment protection afforded to the advertising of all other legal products and services, certainly wine and beer.
Many believe that advertisers should not be allowed to target underage audiences with products that are harmful to their health even if it means limiting constitutional protection because many children are not capable of making good choices. Research shows that youth exposure to alcohol advertising increases awareness of that advertising, which in turn influences young people's beliefs about drinking, intentions to drink, and drinking behavior (Alcohol advertising on television, 2001 to 2003: more of the same).
Opponents of advertising alcohol on television are growing more vocal as…… [Read More]
Price Elasticity and De Beers Diamond Engagement Rings
According to the online guide to economics, Investopedia, price elasticity is generally determined by the need of the consumer for a particular good or service. "Elasticity varies" among products because some products "may be perceived more essential" to the consumer. Products that are necessities tend to be more insensitive to price changes because consumers feel that they must "continue buying these products despite price increases." (Investopedia, 2005)
hat is defined as a necessity, of course, may vary from consumer to consumer. Clearly, food, shelter, and protection from the elements are all necessities. Not everyone needs caviar when money is tight, sometimes canned tuna fish will do -- but nor do many people exclaim, 'diamond prices are going down, let's get engaged -- twice!' Thus, how does one assess the price elasticity of a diamond engagement ring, as produced by a De Beers…… [Read More]
South African Breweries
There are a few important trends in the international brewing industry. The first is consolidation (Fletcher, 2011). With slowing demand in major markets, many large brewers are seeking to do two things: improve their economies of scale and gain access to new markets. This has led to successive rounds of consolidation in the industry, with most of the world's largest brewing companies now global conglomerates of strong regional brands. For SAB, this has meant not only consolidating the firm's home territory of Africa, but exploring options outside the continent as well.
The second major trend in the international beer industry is that growth has shifted to emerging markets. In the major beer-drinking markets, consumption is either stagnant or shrinking, and this has led to a quest for growth elsewhere. Many emerging markets have large populations and as these markets become more attuned to beer drinking, some of…… [Read More]
Many problems surface for companies such as Anheuser-Busch because the company believes that their 'global' presence means they can act and do what ever it is they think is best. Such an attitude does not work well in China, because of the hundreds of brewers that provide cheap beer on a regional and local basis. Many Chinese citizens would rather drink their local beer than the 'global' beer for two reasons, once of which is loyalty but the other which is price. These are two factors that the global company has to consider when entering the Chinese market.
One of the most prevalent problems experienced by Anheuser-Busch (or any brewery) in China could be the lack of a coherent, comprehensive distribution network.
Events to consider when attempting to distribute a product that quickly loses its appeal, flavor and freshness (such as beer) would normally entail scheduling refrigerated trucks for pick-up…… [Read More]
There are a number of trends in the global beer industry. One is consolidation, where firms are using mergers and acquisitions to enter new markets and to achieve economies of scale. For a brewer like Modelo, consolidation means that the company becomes smaller relative to the industry's top firms. Modelo has does not compete (at least with Corona) on a cost-leadership strategy, so this trend does not matter much for production economies of scale but it does matter for marketing economies of scale. Corona is also leading a trend of premium beer brands competing in the marketplace. Products such as Stella Artois, Hoegaarden, Heineken and (in international markets) Budweiser are competing with this strategy in this is one of the most important growth markets in the industry.
Modelo's international expansion was made possible through the use of strategic partnerships with distributors. These partnerships allowed Modelo to penetrate internationally markets…… [Read More]
Alcohol and Youth
According to the Center on Marketing and Youth (CAMY), states are not doing very much in terms of keeping adolescents and other youth from being over-exposed to alcohol-related advertisements on television. The liquor and beer companies are clearly interested in getting young people started with their particular brand, and through television commercials those companies make beer and liquor seem very "cool" to impressionable young people. This paper reviews and critiques the literature on youth and alcohol-related advertising on television -- including peer-reviewed scholarship from several sources.
Youth Exposure to Alcohol Advertising
The Center on Alcohol Marketing and Youth -- a component of the Johns Hopkins Bloomberg School of Public Health -- reports that the amount of advertising on television that specifically targets youth rose by 38% between 2001 and 2007. About one in five alcohol advertisements was placed on programs that attracts young people ages 12 to…… [Read More]
Modelo needs to chart a course for the company's future. The longstanding objective is to move Modelo into the top five of brewers in the world. As of 2005, Modelo remained outside of the top six. The company has 52 of the domestic market and is the best-selling imported beer in the United States, 50% ahead of next-best seller Heineken. The most significant underlying problem with respect to global market position relates to the company's ownership structure, specifically whether it will come under the A-B banner eventually or participate in some other way in the ongoing industry consolidation.
In the domestic market, Modelo faces a secondary problem in that its leading competitor FEMSA is improving its market position by controlling distribution channels and by promoting high quality subsidiary brands. FEMSA has been gaining market share steadily in Mexico while Modelo has been losing share. The domestic market…… [Read More]
E-businesses challenged create trust customers. People don't send money strangers . ead article: Mangiaracina,
When considering a business model for you company it is highly important to pattern it on that of other successful companies that are also based online. Jeff Beer's article "Outlook 2011: The new dotcom boom" provides several case studies of online companies with robust business models that have proven records of success. The unifying factor of all organizations mentioned, and the ones that provide the most tangible examples of success, Groupon and Twitter, is that their models are all based on solid marketing. One of the most critical elements of marketing for online businesses is to create a sense of community with one's customer base. Doing so in turn increases that customer base by readily involving more members of the general population as part of an organization's community. However, there are a set of management concerns…… [Read More]
Marketing Strategy Problem - In 1-2 pages, describe the Use course concepts in your explanation. For example, from the organization's perspective and the consumer's perspective, explain whether this problem is one of affect and cognition, behavior, environment, or a combination.
The company that is under consideration here is SABMiller Inc. The current situation with SabMiller Inc. is that the company has consolidated its efforts and has focused on a merger and acquisition strategy in order to capture the market and in order to develop its product line in accordance with local tastes.
However recently the situation is pointing to stagnancy in its growth as its Miller operations in America are not growing as expected by the management. Moreover the company is facing difficulties in developed country markets as these are already saturated. And at the same time it has not been able to make inroads into young markets such as…… [Read More]
The constituent company's presence in China is geographically complementary, so that their respective distribution networks can be used to build each other's brands in their respective strongholds. Further, cost synergies of $1.5 billion annually are expected to accrue (Anheuser-Busch, 2008).
These claims are reasonable. There is little geographical overlap between the different brands. In particular in China, A-B is strong in the northeast, while InBev is strong in the southeast. The two companies are also complementary, with A-B strong in North America and InBev strong in Europe and South America. The experience of InBev in its previous major move in North America (the acquisition of Labatt's in Canada) was that it was able to build market share for InBev global brands by using the existing Canadian distribution system. Therefore, their expectation of replicating this success in the U.S. is reasonable. The claim of cost synergies is, however, questionable. hile InBev…… [Read More]
While the authors contend through cited research that the rational for formalizing organizational hierarchy can in various structural contexts be effective, they revert back to the triad factors of strategy, systems and structures to continually make their point regarding how change must be systemic. They don't see change as an add-on; rather it must emanate out of the culture of an organization to be successful (Oxman, Smith, 2003).
In the article Memo to: CEOs (Simons, Mintzberg, Basu, 2002) the authors mix metaphor and meaning to communicate in a direct, blunt style ot CEOs regarding how they need to lead their companies not as figureheads, but as actual leaders. The entire article resonates with how critical it is for CEOs to see their businesses as continually improving, adding in key functions and requirements over time but still staying focused on broader objectives. The call to leadership is also consistently shown throughout…… [Read More]
Porter's generic strategies began life as a matrix grid featuring low cost and differentiation strategies, which could either be mass market or niche in nature (QuickMBA, 2010). A fifth strategy, hybrid, has been hypothesized by some, noting that there are instances where a firm could be argued to practice some combination of differentiation and low cost.
The Swatch Watch has a differentiated strategy. While not a high end watch, it does have a strong brand, with a unique brand proposition.
The McDonalds Value Meal is essentially a hybrid. All McDonalds product is low cost by the definition of its industry, and the value meal accents the low cost element. However, McDonalds has a high level of differentiation within its industry. It has a healthy 20% net margin, which indicates that it does not follow a true cost leadership strategy -- it could cut prices quite a bit more…… [Read More]