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Growing and sustaining brand equity
Growing and sustaining brand equity
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Mountain Man Brewing Company Case The purpose of this case study is to explore the implications for expanding the products offered by Mountain Man Brewing Company (MMBC) from one product, Mountain Man Lager, to adding a Light version of the beer. This paper will evaluate the following: 1. The positioning statement of MMBC; including what has made MMBC successful and how MMBC distinguishes itself from competitors. I will argue that quality and authentic West Virginia family recipe created a brand that differentiates the lager from competitors. 2. 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. 3. 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. Mountain Man Brewing Company’s Positioning in the East Central Market According to Alvin J. Silk, a positioning statement is designed to define who are a company’s customers, what set of needs does the product fulfill, and why is the product the best one to fill those needs (2006, p. 90). I found this question challenging because a positioning statement should define “the place the firm wishes to occupy in its’ targe... ... middle of paper ... ... I believe these types of products would tap into the quality that Mountain Man Lager is known for and seem like a better fit with the Brand Mountain Man is famous for. This would also open up opportunities to extend the brand into brew pub restaurants, which have become very popular in recent years. I think that Mountain Man’s unique distinctive history and brand recognition could be used to create a memorable restaurant experience. The main point of this argument is that MMBC should continue to explore opportunities to improve profit. In a mature market, I believe the worst thing MMBC could do is to settle for the “status quo”. References Abelli, H. (2007). Mountain Man Brewing Company: Bringing the brand to light. (2069) Boston, MA: Harvard Business School Publishing. Silk, A. J. (2006). What is Marketing? Boston, MA: Harvard Business School Publishing.
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
...the Massachusetts company into a household brand." Food and Drink Summer 2009: 130+. Gale Power Search. Web. 18 Mar. 2014.
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...
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.
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).
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.
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 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...
Keurig Green Mountain in many ways has delivered on all of key goals and priorities. Green Mountain Coffee (GMC) has welcomed a significant number of new brands into the Keurig® family; launched the Keurig® 2.0 system and accelerated new product innovation; implemented continuous productivity and efficiency enhancements throughout the company’s operations; and began the process of globalizing the Company with the launch in the U.K. At the same time, we generated significant value for shareholders by investing behind organic growth and returning nearly $1.2 billion to shareholders via dividends and share repurchases.
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.
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.
The craft beer market is primarily composed of the middle class beer consumer that appreciates a fine tasting brew and is willing to pay a little more for it. Craft beer consumers are typically male, white and in the 25-45 age group (Clarke, 2012; Pierre, 2013). Further demographic data suggests that the craft beer consumer is also likely to be college educated and to earn an income of $50,000 or more per year (Clarke, 2012). 80% of craft beer is drunk by white consumers, more than half of which are in the 21 -44 age group (Clarke, 2012; Pierre, 2013). While it would be understandable to concentrate marketing efforts on the white, male, and middle class consumer, there is definitely potential to expand into other demographics. Marketing professionals could expand the craft beer market by appealing to the Latino beer consumer. Many major corporations such as Nissan, McDonald’s, and Wal-Mart are marketing to the Latino market as they can see that the profit potential is vast (Rigik, 2012). I...
Competitive Positioning is defined as how you will differentiate your products or services thereby creating a value for in the market. A good positioning is influenced by market profile, customer segments, competitive analysis and methods of delivering value. (Marketingmo, 2014)
The activities consisted in the process of identifying a problem that has to be addressed in marketing or an opportunity to increase the brand image of a business or to increase sales volume by having an increased reach in advertising and formulating a strategy based on extensive market research, segmentation and supporting data is known as positioning in terms of marketing. Positioning is formulating a strategy using tactical development phases to carry out a goal to attain an organizational objective.
This competitive advantage has been rendered sustainable as other players have found it difficult to catch up with the company's competitive strategy. In spite of this clear advantage, it was noted that the company faces some challenges being the world leader in soft drink distribution. The canning and bottling of the product which is done in many countries have now fallen into the hands of independent companies, thus it becomes hard for a given company to control the quality of the packaging