Miller Lite was the first line extension introduced in the early 1970s. Lite’s success was soon followed in the mid-1970s by Coors Light and Bud Light. These three brands created an entirely new “light beer” category and were so successful that they not only replaced their mother-brands, they cannibalized them. Then came Michelob’s line extension, Michelob Ultra. When Michelob Ultra made its debut in 2002, it was during the Atkins diet, low-carb craze. Its promotional strategy at the time incorporated the tagline, “Lose the carbs. Not the taste.” Its current strategy’s tagline, “Brewed for those who go the extra mile,” along with its other marketing efforts, represent a psychographic segmentation focus on fitting into consumers’ lives as long …show more content…
The article states that “the new offerings fill a void but also pose risks because brand extensions often cut into existing sales”. In fact, after three successful test markets, market research, and analysis of market share, results revealed that 70% of Corona Premier growth was incremental and didn’t cut into sales from Constellation Brands broader beer portfolio (excluding …show more content…
A 6-pack of regular Michelob Ultra costs about 15% more than traditional light beer, add on another 15% to Ultra’s cost for a 6-pack of Michelob Ultra Pure Gold. MillerCoors doesn’t seem to be worried stating that, “We have the original ‘fitness beer’, it’s called Miller Lite”, which at 145 calories and 11g of carbs isn’t a very fit choice. Though when asked about their reduced calorie Miller (MGD) 64, which has only 64 calories and 2.4g of carbs, the company declined to
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-...
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.
As it is known that there is a stigma towards beer produced in particular provinces such as the current perception and appeal towards Albertan produced beer, Big Rock must engage in a marketing campaign to remove the emphasis that Big Rock is an Albertan produced beer. Alternatively, Big Rock should market its brand as a Canadian produced premium beer that takes pride in its ingredients and taste. For example, Alexander Keith’s was originally positioned as an Atlantic Canadian beer but following a vigorous advertising campaign, the brand was still able to maintain the maritime values of being social, sharable and approachable. Alexander Keith’s was subsequently able to communicate these values nationally. Furthermore, Alexander Keith’s emphasis on taste which was possible due educational initiatives such as offering “on-premise” experiences, allowed the brand to become one of the leading premium beer brands in Canada today.
...an ever decreasing demand in the market is not going to bring much success to the company. Light beer is what the market demand and a necessary risk Mountain Man needs to take if they want to attract new consumers. The initial product association between Mountain Man Light and Mountain Man Lager may be confusing to consumers in terms of flavor, but the association with quality ingredients is what should be emphasized. Mountain Man Light needs to set itself apart from other light beers by highlighting their quality ingredients, but they also need to separate itself from the bitterness of Mountain Man by delivering its own distinct flavor. With that said, the names ‘Mountain Man Light’ may not be the best name in terms of separating itself from Mountain Man Lager. Giving the light beer a unique name of its own is something Chris should strongly consider when branding.
Market penetration involves with entering a new market with an existing products (Ansoff, 1957). Red Bull can make changes in the products they offer by introducing different flavours and non-caffeine drinks to penetrate the new market. This diversification of products will show their innovative skills to their customers. The company should improve their existing product and use market research, product adaptation analysis, and legal review to seek expansion for the existing products (McDonald, 2007).
This diversity will make for a powerful word of mouth marketing campaign using social media to spread the word and the television and online advertising efforts offering a money-back guarantee, free samples and community website links. We will focus on both the “Bohemian Mix” from this geographic area that includes people from these ethnic backgrounds in households made up of a mixture of different family members from different age groups, but under age 55, many with pets, who like to try the “newest coffee brew” or product. Their median income is over $56,000 a year and they are upwardly mobile. We also chose the “Young Digeratis” who are made up of the wealthier and younger family mix ages 25 to 44. They like to stand out above others and only accept the highest quality of food and drinks. They drive the most expensive autos and spare no expense on their clothes and
An evaluation of whether or not to launch Mountain Man Light. I will explore the pros and cons of creating a light version of the brew and other strategic options for growth if this brand extension is not launched or if the launch is unsuccessful. I will demonstrate that launching a light beer product shows promise for improved profit through 2010, but that another strategy should be under development during that time frame if MMBC wants to remain competitive for the long term.
Miller Brewing Company is an American beer brewing company founded in 1855. It is owned by SABmiller, which is the second largest brewer in the world behind Anheuser-Busch. The company is most famous for its Miller brand beer, and its varieties. The most popular one is Miller Lite, followed by Miller Genuine Draft, Miller 64, and Miller High Life. In addition to these four popular ones they have ten different more beers. The company currently has seven main brewing locations around the United States. These locations are: Milwaukee, Wisconsin (which also serves as its headquarters); Albany, Georgia; Irwindale, California; Fort Worth, Texas; Eden, North Carolina; Trenton, Ohio; and Chippewa Falls, Wisconsin. The company has been operating successfully for over 150 years now, and is considered to be one of the “big” beer companies in the United States. The competitiveness of the beer market is very similar to the soft drink market, as there are many options and brands to choose from, but the products all go for the same general type of taste. The biggest main competitors for Miller are the other “big” brewing companies, they are the ones that possess the power and size to produce large amounts of products, as opposed to the smaller, but growing craft brew market. The main competition is:
• Economic Environmental Factors: had an effect on the industry. Economic Downturn had impacted the Industry and made consumers price-sensitive (price elastic) and pushing money to other parts of consumers lives. • Porters Model : Direct Rival Competition; Mill Street accounted for 80% of sales and had 40 varieties of beer also sold through LCBO, The Beer Store and the company’s own brewpub. (pg4) It will be hard to gain consumers who are already drinking light beers because they are already loyal to another brand and have no reason to switch. • Launching a light beer would place the product to compete directly with the competition who had produced and sold a much larger quantity of beer (pg4) Porters model: threat of substitution; is high, as the market has other
As stated in the case, “the market for energy drinks was growing; between 2010 and 2012, the market for energy drinks had grown by 40%. It was estimated to be $8.5 billion in the United States in 2013 [and] forecasts projected that figure to reach $13.5 billion by 2018” (pg 5). However, much of this market’s revenue -- 85% in fact -- is dominated by five major brands, while the remaining 15% is split between approximately 30 regional and national companies. (pg. 5). With this saturated market, it might not be best for Crescent Pure to enter as a completely new product to the industry, as there is the possibility that it will be squeezed out of the profit shares by more established brands -- especially if it is not properly secure in its identity. In addition, while the market for energy drinks appeared to be growing at an exponential rate compared to the market for sports drinks -- which increased only 9% in five years and would be at approximately 60% of the rate for energy drinks in 2017 (pg 6) -- the consumers appeared to be wary of partaking in the market for several reasons, which would potentially harm the reach of Crescent Pure. These concerns included rising news reports discussing the safety of energy drinks (pg. 5). Taking into consideration the data provided in the case that concerns reasonings of why consumers choose specific drinks over others, there
The commercial, "The Bug," is an advertisement for Budweiser beer. It takes place in a barroom that is long and narrow, typical of such an establishment in any city neighborhood. The bar itself is on the right of the TV screen, with the required mirror on the wall behind it, and assorted bottles on the counter. The over-all color of the place is dark with a typical wood bar and the colors beige and green, in various shades. In the opening shot, the bartender is setting up drinks on the counter, with the first patron arriving, saying, "How ya doin'?" as he sits down at the bar.
Mountain Man Brewing Company’s revenue has decreased 2% in 2005 within the past year. Challenged by the company’s ability to stay profitable and continue being a market leader in their area of the beer industry among the larger beer labels, the company’s future president, Chris Prangel, has found an opportunity to expand their product line and create a light beer. By doing so, Prangel hopes to utilize the company’s strong brand awareness that MMBC has worked effortlessly to create, and introduce a newer, lighter drink that would take the same ideals and quality that their signature product, Mountain Man Lager, has and introduce a lighter beer into the steadily increasing light beer market. However, in doing so, Prangel is faced with both the
The Mountain Dew case centers on the decision that the BBDO team and Pepsi executives made in regards to the Super Bowl advertisements to be aired in 2000. The creative team came up with 10 possible scenarios. Since their meeting took place in October (4 months prior to the Super Bowl) they had little time to produce the ads. The 10 concepts were quickly whittled down to 5 and the executives wanted to whittle them down to 3 in which to produce. From those 3, the best 2 would be selected to air at the Super Bowl, but all 3 would be run throughout the year. The 5 advertisements that they whittled down to were Labor of Love, Cheetah, Dew or Die, Mock Opera and Showstopper.
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...
Governments across the world take extreme measures to regulate alcohol because it affects the consumer's mind. The Miller deal exposed SABMiller to one of the highest regulated industries in the world. Re-establishing consumer loyalty towards the Miller brand will be made difficult by factors such as nationalism.