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The United States Beer Industry
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Executive Summary 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. Input-Processing-Output Model for Budweiser Mission Statement of Budweiser Budweiser's mission is to be the number one beer company in the world by enriching and entertaining an increasing global audience. To deliver a substantial amount of 15% return to our shareholders, we will add to life's enjoyment through our products, services, and relationships. In addition our goal is to increase sales by 25% each year. Organizational Dimensions of Budweiser World Dimension Geographical View: Anheuser-Busch is a global enterprise with distribution centers in the United Kingdom, Japan, Canada, and Spain. Civilization View: Due to Anheuser-Busch's global distribution, the company itself cannot represent only one single civilization. If fact, the company is made up of many different civilizations, including the United Kingdom, Japan, Canada, and Spain. One of the main reasons that these particular countries have a distribution center may be due to their culture. The people there view beer as a favorable product that everyone should be able to enjoy, and one of the reasons the product is popular may be because of that belief. This provides an enormous market for the beer industry. Behavioral Dimension Culture View: Since Anheuser-Busch is a global enterprise, there are many different cultures represented in their workforce. By embracing a well-diversified workforce, Anheuser-Busch promotes a well-rounded organization. Employees are more likely to have self-motivated goals that are inline with the company's goals of the company, and without satisfied employees the company would not maximize its profits.
The two organizations explained in this assignment are “Anheuser Busch” and “MOLSON Coors”. Anheuser Busch is a multinational company brewing more than 100 brands in the United States and holds a 45.8 percent of the beer market share1. The company is recognized as the No. 1 brewing company by Fortune magazine – “World’s Most Admired Company”2. Dreaming Big, Unity and Culture are the three main driving values and guiding principles which account for the success the company has achieved during the years1. All these combined with the dedication and motivation
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.
In a period of nine years, Rahr has been able expand the beer brewing business greatly. It has increased from two thousand barrels of beer annually to twenty thousand beer barrels per year. The Rahr and Sons Brewing Company has been a significant phenomenon in the beer-brewing sector, where it has acquired over
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.
Organizations often talk about themselves and their products when marketing to customers. The reality is that prospective customers do not care about you or your product -- they care about themselves. How much time does Budweiser's commercial spend focusing on beer? Absolutely none. Instead, the ad focuses on portraying a heart-warming relationship that every single viewer can connect with. Budweiser makes itself relevant to those watching the commercial simply by creating that experience. So stop focusing your marketing strategy on your company, product, service or yourself. Instead, develop a message that highlights what you are offering means to the targeted customer’s life.
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.
As larger beer corporations move toward this growing market, NBB will have to develop measures to maintain market share (Gorski, 2013).
commercial appeals to the demographic of young, entrepreneurial males who are wanting to become more than what people and society thinks they should be and they not only want to sell their beer but also have an underlying message of pro-immigration.
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.
Adolphus Busch was a salesman, and perhaps the greatest ever heard of in America. Granted that he knew good beer and ever sought after it, the fact remains that he did not know how to make it at all. In the same course of time he found men who did, but that was a mere detail. He sold the bad almost as efficiently as he sold the good. He could have sold anything. At one point in the early career of Anheuser Busch, its product was so inferior that St. Louis rowdies were known to project mouthfuls of it back over the bar. Adolphus kept on selling it, and it became better, and eventually the best in America.
As we learn from the case study, the Lincoln Electric Company is the largest global manufacturer of machines for welding, which are used in all kinds of construction projects. This means that the company has a large global presence and many employees, so its culture affects thousands of its workers. Even though it is now 2014, the company still has a large market share and very satisfied employees, so clearly the culture leaves employees satisfied and motivates them to work hard for the company.
Monster Beverage Corp. shows that they understand their customers’ needs. They are a successful business with higher growing revenue every year. Their revenues did decrease during the economy’s recent recession (2008...
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...
The Boston Beer Company is able to obtain relatively low-cost funds for their working capital and expenditures. The company is constantly in search of the lowest cost items without suffering the quality of their products. The company has thrived and has been able to expand to become successful due to their ability to achieve this.
... 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.