Zima is Clear Carbonated, malt-based beverage, was launched in 1992. It was completely outside of the Coors Umbrella with Laura Sankey as the product manager of the brand.
Whereas, Coors is a brewing company, the quality and taste of Coors resulted in a significant regional success from the beginning.
The united states beer industry is an extremely competitive market. When analyzing the beer market. Coors lies 3rd in the Beer Industry with 10.6% of overall market share.
Zima was initially successful in 1994, by targeting younger drinking crowd’s motivated to be different. Behind the slogan “Zomething Different”.
But later sales started to drop, and Zima did not live up to Coors management short-term expectations. The growth leveled off and
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- Source of Volume: The current marketing objective for Zima is Acquisition and by not utilizing their parent brand, Coors Brewing Company, they are following with a sort of steal share activity in the sense that they are trying to enter the market as an alternative to beer.
- STP - Segment:
Main Variable: Socialization beverage for getting together.
Dynamic Variable: that ZIMA has is the refreshing, cool taste along with the price that stays competitive with the national brands.
- Target: ZIMA’s new advertisements would be targeted at beer drinkers.
To refine further, we can determine the current target to be competitive brand users when we consider our source of volume. However, by not relating Zima to the Coors Brewing Company, you are also targeting that group.
The revenue for ZIMA will increase If it directly competes against National Beer than when comparing to the Premium Brand, this is because the amount of market share and customers that National Brand holds is much greater than the Premium Brand.
Currently National Brand holds $50B in revenue while Premium holds $3B.
- Position:
- Situation Analysis:
• Strengths:
- Refreshing.
- Non-beer unique beverage, alternative to beer. •
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4. Action Plan/Marketing Strategy? - The Clearly Refreshing Campaign would help leverage Zima’s Core Competence of their refreshing taste. - This Campaign would bring awareness of Zima’s product among customers. So maximum investment is made in this Campaign. - The Availability of Zima is the area in which it suffers the most, as Zima being very rare or unavailable. Therefore, more investment would be investing in the Convenience Stores channel. This would allow Zima’s availability to be promoted at over a million outlets throughout the country.
- The ancillary investments are Nicer Gourmet and The W Campaign. Although I did not achieve as much exposure as that of the Clearly Refreshing Campaign and the Convince Stores channel would allow.
- At the same time investing in the Nicer Gourmet channel and The W Campaign to see how it catered as the highly sophisticated consumer base, which would amplify Zima’s as the drink of choice for sophisticated customers.
- Please go through The Big Picture Simulation - Simulation Count
Quality of products can be quoted as one prime quality that can be observed in both the companies. Manufacturing products that are environmental friendly is another common and a beautiful aspect that is common among the two companies. Molson Coors, being an old company is driven mostly by its values whereas Anheuser Busch is moving forward with the motto of “dreaming big” [1]. Both the organizations treat the employees in a good manner making them feel like they are a part of the organization and providing them with the necessary amenities required. Passion and Integrity are a few ground values on which both the companies rely on. Values such as Creativity of Molson Coors sometimes result in a product that might not gain popularity among the customers which would result in the loss of time, thinking and money invested in getting the product out. On the other hand, Anheuser Busch is growing popularity day by day by setting up high goals and working hard to make its presence
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From our research, Anheuser-Busch is content with being the number one beer company in the world, increasing sales each year in operation. We found that Anheuser-Busch met many views associated with the world, business, and behavioral dimensions. The company also displayed its stability as we reviewed one of its most successful products Budweiser, owned by Anheuser-Busch, under the marketing view and the financial view. Not only do they hold almost half of the market share in the industry but their stock prices, sales volume, and net sales have all increased from 2002 to 2003. We also looked at Budweiser in terms of geography and culture. We found due to the fact that the "western" countries consume the majority of beer, it only makes sense that Anheuser-Busch concentrates on that market. Along these lines, another key goal that is also important to Anheuser-Busch is to boost other beer markets that are located in other cultures, where at the time beer is not a major consumption.
Using consumer survey information, we devised a metric for calculating and projecting Coors market share. While only 300 customers were surveyed (Research Study G), we made an assumption that this sample sufficiently represented the preferences of the greater population in the two-county market area. We also assumed that attitudes toward Coors were equally distributed amongst consumer weekly beer consumption levels. Then, we forecast Coors market share by multiplying the percentage of people with a certain preference by the Coors purchase percentage for that preference. We projected an anticipated market share range, between 13.7% and 21.5%, illustrated in Exhibit 2.
So what’s the problem? Growing pains. An exponential increase in demand can be expected as we penetrate new markets and this can bring challenges, especially since the beer market has been increasing 7% over the last couple years.
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... them. The expansion into other areas in the world is something that the company is constantly considering. Expanding their advertising and marketing to reach those individuals in the United States that have not “experienced” the craft beer industry is a constant tactic the company considers. There are also potential environmental threats that the company realizes and considers while making their business decisions.
As larger beer corporations move toward this growing market, NBB will have to develop measures to maintain market share (Gorski, 2013).
By following the strategy that I have given, we can monitor the sale of our product. Once we see an increase in revenue, we can increase our advertising campaign to directly penetrate household markets through TV and/or radio. All of these numbers and strategies seem to line up for a successful product.
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Lack of brand awareness. Our company has a strong image in other countries. But as we introduce our product into our new market where we may not have competitors with similar products, we may have competition with a variety of related products. We will address this issue with heavy and aggressive promotion emphasizing in our products’ nutrition facts.
Due to the fact that changing times imply as well a change of society and its changing wants and needs, companies have to be aware that a brand’s position should be adapted to a newly developed lifestyle. “All brands need to be revital-ized on a regular basis in order for them to be kept fresh, vital, and relevant to the contemporary market.” (Keller/Sterthal/Tybout 2002, p. 86).