Overview Who is D.G. Yuengling & Son, Inc? Yuengling is the oldest brewery in America and has remained family owned and operated since 1829. Yuengling has resiliently survived in the most challenging markets by adapting to the modern marketplace while holding true to company and traditional values. At Yuengling, “think differently” isn’t just creative encouragement; it’s a way of business. Where are we? D.G Yuengling & Sons, Inc. operates two breweries in Pottsville, PA, and a third in Tampa, Florida serving 15 states as of 2014. What is our market position? ” In a highly polarized market, Yuengling is considered a “bridge-brand“; appreciated by mainstream and craft beer drinkers alike. Demand increased when market trends shifted and consumers sought out “better beers”, unique in culture and flavor. Our low price-point and mild flavors compete with low-quality daily beers and offers an edge in the marketplace. How are we doing? D.G. Yuengling & Son, Inc. is now the #1 beer producer in America. Our market only consists of 14 states whose demand exceeds that of Boston Beer Co. who previously held the #1 spot and serves all 50 states. So what’s the problem? Growing pains. An exponential increase in demand can be expected as we penetrate new markets and this can bring challenges, especially since the beer market has been increasing 7% over the last couple years. Problem Increased demand is both an opportunity and a problem. There have been problems in the past. When sales skyrocketed in the 1990s, demand grossly exceeded production and Yuengling had to make sacrifices. Choosing to forfeit market share in several states was an unlikely success but it didn’t come without opportunity cost. Growth before Expansion: balancing producti... ... middle of paper ... ... not sell sex or excitement like other alcohol producers. PYTAK, S. J. (2011, October 29). Yuengling extends reach to Ohio, will increase Mill Creek hours. News. Retrieved March 13, 2014, from http://republicanherald.com/news/yuengling-extends-reach-to-ohio-will-increase-mill-creek-hours-1.1224929. This article discusses how Yuengling approaches production of their beer. Pedersen, B. (2013, July 8). ONE-ON-ONE WITH DICK YUENGLING Billionaire brewer plans to keep company lean, nimble and growing in existing markets | Lehigh Valley Business. Lehigh Valley Business. Retrieved March 13, 2014, from http://www.lvb.com/article/20130708/LVB01/307039999/ONE-ON-ONE-WITH-DICK-YUENGLING-Billionaire-brewer-plans-to-keep-company-lean-nimble-and-growing-in-existing-markets. This article goes in depth about how Yuengling managers its debt and expansion plans for a long-term gain.
The company launched an initiative collaborating with the “Lyft”, which will provide free rides for drunk customers [8]. 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 [9] 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 [10]. 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
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-...
Simpson, B. (2008). “New Belgium Brewing (B)” in Ferrell, O. C., and Hartline, Michael D., Marketing Strategy, Fourth Edition, Mason, Ohio: Thompson Southwestern Publishing, pp. 1-5.
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.
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.
Franklin, M. (2013, August 26). Top 15 craft beer breweries in USA. USA Today:The daily meal deal. Retrieved from http://www.usatoday.com/story/travel/destinations/2013/08/10/top-15-craft-beer-breweries-in-usa/2637493/
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.
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...
Compared to the industry as a whole, Mondavi is not responding to the changing marketplace and demands. While there has been some growth in the ultra and luxury premium market segments, the explosion in the last 15 years had been in the popular premium ($3-7 per bottle) and super-premium ($7-14) sector. Mondavi’s own Woodbridge offering is responsible for 76% of its case volume and 57% of its revenue as of 2001, but seemingly exists in isolation amidst all the high-end offerings from the company. Competitors that have established themselves in jug wine, beer, and other spirits are taking advantage of their sales volume and migrating upward. While E&J Gallo, Constellation, and the beer producers may not have the reputation for quality and craft that RMW possesses, their substantial financial weight has allowed them to develop or purchase brands that could compete in the higher altitudes and price segments. Meanwhile, competitors with similar histories in premium winemaking are taking advantage of lower production costs to horizontally integrate, acquire land, and build new wineries in different countries, as Kendall Jackson has done with the Villa Arceno (Italy) and Yangarra Park (Australia) wines.
... 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.
After 1996, the U.S. beer industry had consistent growth with about 3,500 brands on the market in 2002 (Alcoholic Beverages, 2005). The U.S. exported beer to almost one hundred countries worldwide. The beer industry peaked production with 6.2 billion gallons in 2003 (Alcoholic Beverages, 2005). The U.S. beer industry haws over 300 breweries. However, this industry is dominated by three companies: Anheuser Bush (45% of the industry), Miller Brewing (23% of the industry), and Adolph Coors (10% of the industry) (Overview of the U.S. Beer Industry, 2005).
The United States of America has a population of 260 million people. This is a big market with substantial purchasing power. As of 1997, Breckenridge Brewery has only expanded eastwards and the west side of the country is relatively untouched. According to Exhibit 2 in the case study, there were only distributors in 32 states and that leaves a potential to sell to the other 19 states as w...
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.
Price and advertising strategy: PepsiCo Overhauls Statergy. PepsiCo plans on saving 1.5 billion dollars in...