Madcap Case Analysis
Considering 4 elements of the marketing mix and the case discussion of the general trends in the industry, it seems that MCB is experiencing problem with place and determining its target market. The case provides many examples of the company's difficulties in gaining more retail locations, maintaining sufficient inventory level, and, the most important, improper positioning of its product, which impeded the MCB to reach its potential customers.
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.
According to the case, the problem with production was the lead time. Due to the timing in supply of the painted bottles and the lengthy brewing process, the company could not provide beer to their distributors at any time they needed it.
The company could not afford to distribute its product to other states than Ohio, Kentucky, and Indiana because bottle taxes and shipping costs would eat up all the profit.
It was noticed that if the beer is displayed in a refrigerator or a cold box, the sales were higher so the company was willing to double the commission for distributors if they could place Zebra in cold boxes
The beer brands were classified as popular, premium, super premium, and ultra-premium. The distinguishing factor determining if brands belonged to different classes was whether beer was produced by four largest companies (Anheuser-...
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... other hand, exploring new areas to distribute Zebra, the company might potentially run into a situation described by Rob Daumeyer from Cincinnati Business Courier. According to the article, when Madcap introduced its three types of beer, they ."..were caught short when they discovered Heidelberg Distributing Co. ordered 6000 cases as an introduction." (Daumeyer 1) They did not expect such popularity and could not effectively handle it.
Daumeyer, Rob. "Beware of Too Much Business" Cincinnati Business Courier (June 1996): 9pars. 28 June 1996
Mullins, John W., et al. Marketing Management. 5th Edition, New York: McGraw Hill, 2002
Rosental, David W., Twells, Richard T. Madcap Craftbrew & Bottleworks, Inc.: Zebra Beer - It's Not All Black and White. Miami University, 1999
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The company launched an initiative collaborating with the “Lyft”, which will provide free rides for drunk customers . 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  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 . 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
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.
This report addresses the issue of whether Amsterdam Brewery should invest and promote new products or continue to focus on current products. And, whether Jeff Carefoote should pay attention to whole brands or spent expense to increase brewing capacity. The report describes a strategic plan to ensure Amsterdam Brewery’s competitiveness in the market.
Intrigued by the opportunity of owning his business, Larry Brownlow must decide whether a distributorship opportunity with Coors is a worthy venture. To aid Larry with 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 entire trust and take a significant financial risk. Therefore, we can reasonably assume that Larry will go forward with this investment as long as he can recover his initial investment and earn a salary that exceeds his current annual income. After calculating the possible financial income and analyzing sensitive variables, we suggest Larry takes this opportunity.
Legal production of near beer used less than 1/10 the amount of malt, 1/12 the rice and hops, and 1/13 the corn used to make full-strength beer before National Prohibition. (Blocker 7)
Deutsche Brauerei has been a family owned and operated corporation for 12 generations, which has created a high level of focus and control. Each generation has kept the management and operations processes relatively simple, centered on brewing practices and quality. Deutsche Brauerei’s rapid growth in recent years can be attributed to several factors. First and foremost, the company’s success is centered on the product itself, which has won numerous quality awards and is quite popular in Germany. Another contributing factor to the recent growth may have been a bit inadvertent. The purchase of new equipment in 1994, which was necessary as a result of a fire that destroyed the old equipment, allowed the company to increase brewing capacity and efficiency. Finally, Deutsche Brauerei’s decision to enter the Ukranian market in 1998 contributed significantly to the rapid growth. The collapse of the U.S.S.R. brought market reforms, and Deutsche Brauerei jumped on the opportunity to enter the fragmented beer industry, capture the large population and capitalize on the prime location in Europe. Lukas Schweitzer was savvy enough to hire local expert Oleg Pinchuk away from a competitor as the marketing manager, and Oleg was instrumental in building the business in Ukraine by securing accounts and implementing the field warehousing to support distributors. Deutsche’s beer was hugely popular in the Ukraine almost immediately, and volume sales more than offset the depreciation of the Ukrainian currency. Sales in Ukraine accounted for 28% of Deutsche’s total sales, and skyrocketed from 4,262 euros in 1998 to 25,847 euros in 2001.
How these factors enabled MMBC to create such a strong brand; and why, despite its strong brand, MMBC was experiencing a decline in 2005. I will show that the decline is due to changes in beer drinking patterns, markets, and demographics in the region as well as the U.S. in general.
In an effort to increase demand for and sales of its products, Heineken has begun to analyze the need for a different marketing strategy. One of the chief problems Heineken currently faces is that it is perceived differently from market to market. Although Heineken has consistently been marketed as a premium brand it is seen in the United States and Asia as a beer for only special occasions instead of daily consumption. In Latin America the brand is seen as just one of a many of undifferentiated European imports.
There are several different types of commercial beer, consisting of pilsner, lager, ale, stout, light, low-carb, malt liquor, dry, ice-brewed, bottled, draft, and non-alcoholic. Further, the U.S. market has been divided in to three categories: super premium, premium, and popular-priced (Alcoholic Beverages, 2005). In 2002, the U.S. Market Share Reporter stated that light beer consumed 40.1% of the beer market, premium held 25.9% of the market, and popular-priced beer held the remainder.
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...
I would recommend to the Boston Beer Company not to use more space and equipment necessary to meet the expected demand for the product. This will minimize labor, material, energy and equipment use dedicated to this product and lower the financial risks. I would also recommend that they do not over buy on specific materials such as bottles and cans. This is an unavoidable financial expense but minimizing the quantity of the initial order and staging out future orders can help reduce the initial financial impact. Also, Boston Beer Company can increase or decrease future orders based on reception of the new product. The last recommendation would be to continue with their plan of a limited release in New Hampshire and Massachusetts to gauge the market and gather feedback from its customers (Frost, P. 2017). This will be valuable information needed to make the decision to continue or discontinue production of this product. If reception is well received for the limited release, planning for a national release can
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.