Problem statement
• There is an increase in competition from major breweries on the premium beer category.
• Mountain Man brewery has experienced a 2% decline in their sales revenue because of changes in beer drinker’s preference, from a high concentrated alcohol to a light beer premium beer.
Solution
• Increase promotion for Mountain Man Lager in order to reinforce the brand.
• Launch Mountain Man Light to a new target segment such as younger drinkers, middle-high income business man, and woman to be able to increase overall profit of the company.
Justification
Over six years, beer consumption has declined by 2.3% due to health concerns and other spirit based drinks. Light beer sales category in the US has growing at compound rate
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According to the focus group that Mountain Man conduct, Men in early thirties with a medium or a higher income does not correlate Mountain Man Lager with their lifestyle and parties. Young adults in their 20’s thinks that Mountain Man lager is too heavy for them and women just prefer something light. Mountain Man lager only target one segment, that is blue collar workers in the age over 45 years old. Mountain Man breweries should not heavily rely on only one segment because if this segment is declining in sales, it will directly affect them in sales and …show more content…
This will help Mountain Man brand to increase the brand awareness surrounding its target segment. Mountain Man brewery should relate Mountain Man Lager with public events so that it will increase the usage of the product and create brand awareness. Mountain Man can relate their product with the symbol of authenticity of a true West Virginia’s beer. This will create a sense of belonging and increase brand loyalty. In addition to that, Mountain Man can promote their new light beer in an event that could expose the product to new segments. For example, Mountain Man could set up a stall in a music festival events where younger adults in their 20s could actually try out the product. This could relate their product with fun activities and festivals leading to a new brand image of Mountain Man light. The drawbacks of increase in promotion and advertising is that it will reduce the overall income that the brewery get because they will spend it on advertising. Nonetheless this will help to increase brand awareness and usage leading to increase in sales and generates higher profit to counteract the 2% decline in
The company launched an initiative collaborating with the “Lyft”, which will provide free rides for drunk customers [8]. This indicates the amount of dedication the company has towards its customers. It also provides tours to customers across the 12 flagship breweries in the United States [9] and would also help customers with samplers. Any company that values its customers would become a great success and Anheuser Busch has proved this again. It also values its employees making sure every one of them feels like an owner and everybody would work as considering the results to be personal [10]. All these put together has helped the ANHEUSER BUSCH to brew beers that are loved by their customers and in making it the leader of its domain of
95% of beer was distributed through a three-tier system: producer - wholesaler - retailer. Since there were about 6 thousand brands and the retails stores could only carry forty - fifty brands, it was quite difficult to persuade distributors to deal with the MCB products. However, the distinct packing drove much of distributors' attention to Zebra beer.
Belgium is known for a culture of high-quality beer and this concept was formulated by an electrical engineer from Fort Collins, Colorado. The electrical engineer, Jeff Lebesch, was traveling through Belgium on his fat-tired mountain bike when he envisioned the same high-quality beer in Colorado. Lebesch acquired the special strain of yeast used in Belgium and took it back to his basement in Colorado and the experimentation process was initiated. His friends were the samplers and when they approved the beer it was marketed. In 1991, Lebesch opened the New Belgium Brewing Company (NBB) with his wife, Kim Jordan, as the marketing director. The first beer and continued bestseller, Fat Tire Amber Ale, was named after the bike ride in Belgium. The operation went from a basement to an old railroad depot and then expanded into a custom-built facility in 1995. The custom-built facility included an automatic brew house, quality-assurance labs and technological innovations. NBB offers permanent, seasonal and one-time only beers with a mission to be a lucrative brewery while making their love and talent visible. In the cases presented by the noted authors (Ferrell & Simpson, 2008), discusses the inception, marketing strategy, brand personality, ethics and social responsibility that New Belgium Brewing Company has demonstrated. The key facts with New Belgium Brewing Company are the marketing strategy, promotion, internal environment and social responsibility with the critical issues of the public, brand slogan, growth and competition.
The scope of this report is an evaluation of the profitability of each brand. The report does not intend to make recommendations of how invest and promote new products and how to increase brewing capacity.
Michael Messner and Jeffrey Montez de Oca explain that contemporary beer ads represent a desirable male lifestyle to reaffirm masculinity in a time when men are insecure. Their essay, “The Male Consumer as a Loser: Beer and Liquor Ads in Mega Sports Media Events,” goes on to list the reasons for their insecurities: historic and cultural shifts such as deindustrialization, declining real value of wages, feminists and sexual minorities. They support their main point by providing a window to the past as beer ads of the 1950s depicted a desirable lifestyle that was appropriate for post war style of living. By following the transitions of beer ads from the 1950s to now, we could follow the accepted lifestyles of the times during which the ad was made.
"Americans Still Oppose Lowering the Drinking Age." Gallup Poll Briefing. (24 July 2014). Web. 19 Feb. 2016. The article provides the views of those who wish to keep the legal drinking age at 21. It states that almost 75% of Americans are still against lowering the drinking age. They believe that the higher age has reduced drinking and driving accidents. Also stated is the belief that since it has been in act for thirty years it should be left the same. The articles also provides statistics based on the specific classes of Americans who are for or against the issue. The purpose of the article is to show readers the benefits of keeping the drinking age as is. It was published on a website that is used to report new and political issues, therefore, allowing it to draw the attention of many people. It is unique in the fact that it provides surveys and information about the specific kinds of people that were surveyed. This article helps me with my thesis because it provides me with the views of people who do not agree with it, therefore, allowing me to show both sides of the
commercial appeals to the demographic of young, entrepreneurial males who are wanting to become more than what people and society thinks they should be and they not only want to sell their beer but also have an underlying message of pro-immigration.
Monster Beverage Corp. shows that they understand their customers’ needs. They are a successful business with higher growing revenue every year. Their revenues did decrease during the economy’s recent recession (2008...
Everywhere we go we are told what to wear, what to drink, how to look, and so on. Be it by billboards, newspaper, television, magazines, it’s everywhere. That being said, advertisements have a great influence on our lives. While researching ads for a similar products from two different American time periods, I came across two beer advertisements – one from the 1950s and one in the 1990s. In the 1950s, beer advertisements focused their attention on family, specifically how a mother and a father, supporting and maintaining a household, should enjoy beer. Yet, in the 1990s, beer advertisements main focus was on the male consumer. What do men like more than beer? Yes, women. The advertisement industry utilized attractive women to be associated in the ads but have no necessarily affiliation with the product. The difference between these two ads show about American culture is that back then it was about gender roles and nowadays is about sexism. Beer advertisements should not be in local advertisements because the message exhibits stereotypes. Since the early days of time the stereotype o...
To make its point the article uses facts and statistics to prove that teenage drinking is a huge problem in the United States. We learn, "Beer is the alcoholic beverage of choice for kids, preferred by 27% of all children," and, "1.1 billion cans of beer and 300 million bottles of wine coolers were consumed by junior and senior high school students." The article also uses statistics to prove the unfortunate consequences of drinking and states, "In 1997, 3,336 drivers 15 to 20years old died, an additional 365,000 were injured in motor vehicle crashes.
The United States beer industry represents 233 million hectoliters of the world’s 1,501 million hectoliters and is a dynamic part of the United States national economy, contributing billions of dollars in wages and taxes. Within the U.S., the beer market accounts for nearly 50% of total volume of alcohol, with the import specialty and light beer segments driving growth.
As larger beer corporations move toward this growing market, NBB will have to develop measures to maintain market share (Gorski, 2013).
beverages may play a role in the epidemic of obesity." American Journal of Clinical Nutrition
From the Marlboro advertising campaign, which ran from 1954 to 1990, one of the most striking features of this advert is the image of a cowboy. The Marlboro man has become an iconic figure and is associated with a stereotypical rugged outdoor man. This was very effective in terms of generating sells because cowboys are famous for being rugged, cool and tough. Furthermore, most of their targeted customers were men who like to be independent and respected hence resonate well with the used brand image. However, the cowboy image also works well with the second predominant feature of the ad, the slogan "Come to where the flavor is. Come to Marlboro Country." is as if the cowboy is inviting the viewer where he can embrace nature and freedom while escaping stress of a hard life. Also the repetition and the parallel structure of ‘Come t...
There are existing opportunities in the craft beer industry. The competition, however, will be more intensified in the future and this will force companies to provide high-quality beers to attract customers. EXHIBIT 2