Asahi Breweries, Ltd. is a brewery and soft drink company based in Tokyo, Japan since 1949. The Japanese market beer consisted of two important product segments: conventional beer and Happoshu also known as low-malt beer. Prior to the post –war era, there were only two beer companies: Kirin and Asahi.
Kirin had been the leader of the Japanese beer industry from 1953 until the 1980s, holding nearly two-thirds of Japanese beer sales with a hugely popular product, Kirin Lager Beer. Asahi was at the third position with only 10% market share along with its competitors; Sapporo and Suntory companies.
By 1988, Kirin's market share dramatically decreased by 10%, to 50%, following Asahi's introduction of Asahi Super Dry in 1987. Since its introduction, Super Dry has set a new de facto standard in Japanese brewing, attracting beer drinkers’ attention to Asahi and creating a momentum toward Asahi that never flagged. Over the years, Super Dry has continued to expand its popularity. Between 1986 and 1998 Asahi increased its production capacity fourfold, and captured 39.5 percent market share, surpassing Kirin’s share of 38.4 percent. Since ever, Super Dry has majestically positioned Asahi as leader of the conventional beer market.
In 1998, Happoshu beers entered in the war. They contained a low level of malt and thus qualified for a significantly lower tax rate. By 2000, Kirin with Tanrei brand had taken leadership in the happoshu market, captured over 49 percent of the low ma-malt liquor market, with the rest of the market split equally between Suntory and Sapporo. Asahi was the major brewery without a happoshu product. In sharp contrast to its competitors, Asahi aggressively eschewed the happoshu segment, preferring instead to follow the s...
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...s after maturity would either decline or become victim of a competitive coup d’état if there is no innovation. Imperatively, Asahi would need to review its strategies and probably invest in Happusho market if it want to maintain its equilibrium point. Not only because of the promising flowers on this market but also because of some demographic and economic factors.
For the last 13 years, the beer market has been shrinking in pace with Japan’s economic decline and shrinking population. The era of conservative or loyal customers buyers are eclipsing. Consumers are always looking for new trend and cheaper new genre beer beverages, and the happoshu market is known for that quick delivery.
As investors or observers it’s pretty much easier to be attracted by a market but sometimes people don’t ask themselves, not all attractive market is good opportunity for all firms.
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.
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.
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...
The productivity of the equipment for the company is comparable to that of their key competitors. It is a little different of a process than that of the larger domestic beer companies, it still is able to maintain a comparable system with the other brewing companies.
The aim of this report is to examine Innocent Drinks position within the market and to see how their position of strength can be built upon, both in the current market and any potential new markets.
Heineken expands constantly and recently has purchased Hartin, 4th largest brewer in China, and invested $33M in convertible bond of Tsing Tao Brewery. Heineken’s partnership with Budweiser in Italy allowed Budweiser to brew, market, and distribute “Heineken” and make use of Budweiser’s distribution network in Europe.
Relationships with interest groups and the public policy makers has been one of the many things that the Boston Beer Company has strived to maintain and expand. The company realizes that these relationships are critical for the future success of the company. Being in the brewing industry the policies and publics opinion can influence the changes in future policies and procedures that would affect the industry. Developing and maintaining the relationships with the interest groups as well as the policy makers could prove to be very beneficial to not only the company but the brewing industry as a whole.
However, entering into a market as different as Japan is not without its risks, and must be ensured to be successful, with the help of market research, marketing, and operational theories, lest the new venture become a very costly mistake. Target Consumer Market When moving to a market with a consumer culture so different from the home market, a company must be careful to analyse its target audience in detail, to avoid costly cultural faux pas. To get a good feel for the Japanese culture, a good place to start would be the experts in the cultural studies field. Hofstede’s cultural dimensions, created during his in-depth GLOBE study of the cultures of the world, gives a good comparison between the priority differences between Japanese and English culture. A detailed analysis of the cultural differences will be given in the ‘Marketing Issues’ section of the report.
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.
... 70% of their volume produced outside of their home country. Imports pose a threat to the market share that companies like Anheuser-Busch, Miller, and Coors have in the domestic market. It should be the domestic industry’s top priority to try to merge into the overseas markets. There will be many growth opportunities lost and the potential for other foreign companies to take much of the control of the global market share if the major domestic industry’s players do not merge into these markets.
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).
Diageo has long been the front-runner in the premium drinks business. Its brands include Guinness, Smirnoff, Bailey's, Johnnie Walker, and Cuervo complimented by broad range of local and specialty brands from around the world. In 2002, Diageo held a 15% (United States-Spirits, 2002) market share and was by far the leading manufacturer of spirits in the United States followed by Pernod, and Fortune Brands, Inc. The market is expected to have 9.8% (Huddleston, 2005) growth in the next three to four years, so new entrants may find the going hard unless they have capital to sustain themselves.
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.
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...