The Adolf Coors Company is one of the world’s largest brewing companies in the world, and third largest brewing company in the United States. But what makes Coors different from other brewers is its unique advantages and disadvantages in the brewing industry. Coors maintains a certain brand image or “mystique” that – while positively influencing the company – also causes some strategy problems.
The first main problem for Coors is distribution. Coors is branded as a cold, fresh beer and has profited from this immensely in their sales. There are several factors that contribute to this brand image and are ultimately advantages to the company. However, some of these advantages come at a cost. While Coors’ “pure Rocky Mountain spring water” has been emphasized by the company for over a half century, this water comes from 60 springs on company-owned land where its brewery is in Golden, Colorado. In order to be true to their image, Coors does not want to brew any beer without the fresh “spring water” of the Rockies. This means Coors is in a bind if interested in shipping beer to parts of the United States such as the east coast. Not only would the beer be extremely expensive to ship over 1500 miles, there is another problem with the idea of shipping the brews across America from a single plant: Coors does not pasteurize their beer. They claim that the heat the beer would experience during a normal ship would harm the taste of the beer. This means that shipments of their unpasteurized beer need to be kept cold the duration of the ship to stay fresh. However, concern about the 25-30 million barrel ceiling on capacity at the Golden, Colorado sites makes it an intriguing prospective to expand sites considering the recent yearl...
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...h the beer may be as “fresh” as Coors claims, companies that do pasteurize their beer are able to ship it across America without the worry and hassle of keeping it cold throughout the duration of the ship. I mentioned reasons as to why this poses some potential problems for the company earlier in this assessment. It’s no mistake that Coors has gained the reputation they have – and it’s mostly a worthy appraisal of the company. As a customer, seeing the extent to which Coors goes to maintain a fresh, unique, brew would make me want to try their product over other “typical” breweries. However, the very reasons that has led to success for Adolph Coors Company, is also the very reasons why Coors faces potential growth problems.
Aside from the problems that Coors’ is dealing with as a result of their pledge to “freshness,” what other problems does the company face.
The strengths of Creemore Springs are their access to natural spring water, unique recipe, and reputation for producing high quality beer. This reputation has earned them numerous awards since their induction in 1987. Creemore Spring’s weaknesses is their current, complex cleaning process which results in broken and chipped bottles. Opportunities available to Creemore Springs include the municipal sewer service that would provide them with financial savings when disposing of their effluent water. The current threats to Creemore Spring’s successful operation are the two major beer brands that control 90% of the beer market and the bottle cleaning contracts lack of quality control.
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
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.
Ferrell, O. C. (2008). “New Belgium Brewing Company(A)” in Ferrell, O. C., and Hartline, Michael D., Marketing Strategy, Fourth Edition, Mason, Ohio: Thompson Southwestern Publishing, pp. 463-470.
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.
By increasing the SKU count of core products in conjunction to decreasing the SKU count of seasonal products, Big Rock will be able to solidify and further build upon brand awareness associated with the Big Rock label. More specifically, it is suggested that Big Rock increases the number of SKUs in its top three selling products; Grasshopper, Traditional and Honey Brown to spread brand awareness on a national scale. Increasing the number of SKUs for core products beyond the top three reputable beer labels will increase the level of awareness towards the diverse number of core product offerings which is synonymous with the Big Rock
Business Problem and Recommended Solution Intrigued by the opportunity to own his business, Larry Brownlow must decide whether a distributorship opportunity with Coors is a worthy venture. To aid Larry in his decision, the following pages provide an assessment of this business opportunity. With a limited research budget of $9,500 (p.143), careful selection of reports was essential to obtain both the necessary data to project profitability (e.g., revenues, cost of sales, other expenses, Coors projected market share, retail pricing data) and to provide a qualitative, consumer-focused perspective that would give these quantitative projections a solid foundation. Considering the given financial background, if Larry does not go forward with this investment, we assume he will choose to continue earning annual income from his trust at $40,000 per year (p.143). However, if he goes forward with the investment, he will cash in on the entire trust and take a significant financial risk.
Mountain Man has many unique factors that add value to their brand. First and foremost, Mountain Man is family owned and therefore perceived as being high quality and considered a legacy product. The lager also has a reputation of being a miner’s beer and many people seem to drink Mountain Man in an attempt to connect with previous generations. Their fathers and grandfathers drank Mountain Man and they want to drink it too. Mountain Man lager is respected for its old school, regional brew characteristics (strong, dark, and bitter). The beer’s primary consumers are mainly blue-collar men who are in the middle-to-lower income bracket and over the age of 45. Due to these unique qualities, Mountain Man had created a str...
... 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.
Craft beer sales saw significant growth between the years of 2009-2012 and they are expected to continue the upward trend. Interestingly, the economic downturn did not seem to affect the craft beer market despite the higher price of craft beer over mass-marketed domestic beer. In fact, craft beer is experiencing growth in sales that other beer categories are not. (Clarke, 2012; Pierre, 2013) This growth has been attributed primarily to millennials. Millennials (born between 1981- 1995) have been described as conscious of affordability and quality in their product choices but also seek to express themselves through their choices. (Rigik, 2012) According to the Brewer’s Association, 46% of new craft beer drinkers are millenials (Clarke, 2012).
Strives to be the leader in micro brewing while maintaining the core values it started with and had employee buy in even before it went” 100 % employee owned in2013” (Gorski, 2013).
The beverage industry is highly competitive and presents many alternative products to satisfy a need from within. The principal areas of competition are in pricing, packaging, product innovation, the development of new products and flavours as well as promotional and marketing strategies. Companies can be grouped into two categories: global operations such as PepsiCo, Coca-Cola Company, Monster Beverage Corp. and Red Bull and regional operations such as Ro...
1.Red Bull differentiates itself in not only the soft drink industry by focusing on energy drinks solely, but also in the business industry, seeing how their strengths, weaknesses, opportunities for improvement, and threats all seem to blur together . The fact that Red Bull is seen as a luxury and sports drink is a strength, weakness, opportunity, and threat within itself (Kansara, 2); being labeled as such sets Red Bull apart from their competitors, pushing them into one field and industry to prosper in and be associated with, leaving them opportunity to determine the way that industry will grow as they are the pioneers but also threatening their hopes for expansion. In a nutshell, in order for Red Bull to truly work towards their mission
As well as mounting political persecution of its products, like they are facing today. They must rely on past experiences to get through, but likely will need to start studying the new trends to stay relevant. Learning from Others Coca-Cola has been able to learn not just from their own blunders, but from other beverage companies they’ve acquired for either product expansion or for resources they have that could help them.
This competitive advantage has been rendered sustainable as other players have found it difficult to catch up with the company's competitive strategy. In spite of this clear advantage, it was noted that the company faces some challenges being the world leader in soft drink distribution. The canning and bottling of the product which is done in many countries have now fallen into the hands of independent companies, thus it becomes hard for a given company to control the quality of the packaging