This will make it easy for Larry to keep his beer supply fresh, and his inventories low, which reduces his overall cost structure. In the end, this will allow him to provide a higher quality product, at a price comparable to Bud Light and Miller Lite. Higher quality at a lower price will, over time, in our estimation, allow Larry to capture additional market share from his competition. Along with the market advantages Larry will have, the marketplace in the two Delaware counties project to increase population age 21 and over for at least the next 8 years. This growth will provide a consistent base of current loyal consumers, as well as potential new consumers.
Dr Pepper Snapple Group, Inc 1) How would you characterize the energy beverage category, competitors, consumers, channels, and DPSG’s category participation in late 2007? The characteristic of the energy beverage category 2007 is that market was growing slow. Today market is also small and dominant by Red Bull because Red Bull was one of the first energy drinks. Being one of the first in market was huge advantage for Red Bull over competitors. Moreover, in the late 2007 the market was still growing up with variety kinds of energy beverage products.
Brand positioning was seen as its best leverage as Coke Zero competes in a category where factors such as price, costs, competition and distribution are relatively unchanging. A Needscope assessment revealed that the Needstate ‘Vibrancy’ was indicated the largest segment of ‘Needs’ opportunity for beverages. However, diet colas are sold in the ‘Control’, ‘Composure’ and ‘Tranquillity’ space, which are less brand desirable and represent less ‘Needs’ opportunity in the beverages sphere. Furthermore, Coke Zero’s target audience was young adults 16-29, for whom the notion ‘living life’ wielded a greater influence than ‘exercising self-control’, a notion synonymous with ‘diet’. Thus, it was necessary to reposition Coke Zero to recapture the attention of their target audience and successfully compete with Pepsi Max.
Analysis of the Situation Stakeholders Analysis: The decision to launch the Hockley Classic will impact the following stakeholders: Consumers * Offered a light craft beer of higher quality than similar imported beers * Increasing their interest in Hockley’s beer offerings Employees * Trained on new policies and procedures to produce the Hockley Classic * More hours available for the employees Owners * Opportunity to penetrate lucrative craft light lager market * Potential opportunity for Hockley to grow and make their brand more well-known Distributors * Collaboration with existing and new distributors interested in selling the Hockley Classic * Opportunity for increased revenue if product is
Question 1 In order for successful expansion of the new line of energy drinks that Snazzy Sodas are promoting careful considerations in the marketing strategy will feature. (Armstrong 2012 p52) The market targeting strategy has to maintain a customer centred motivation. Through dividing distinctive markets by processes of individual and personal characteristics, wants needs and behaviours of the consumer the basis of the marketing segmentation is established (Armstrong 2012 pp52-55). From this position greater classification of the market segments can be maintained. The target market for the energy drink would redevelop and associate with varied amounts of current markets to carefully build and generate profitably whilst upholding customer value.
In the field of marketing, the primary objective of an organization is to satisfy the consumer needs. It is very obvious, however, that not all consumer needs can be satisfied. By identifying its potential subsets or target markets, the organization can concentrate its efforts on certain needs of the specific groups of potential consumers. In this case of the Cabana Boy Flavored Rums, young adults with legal age of drinking are the primary target market for this product. The Cabana Boy Flavored Rums is a product brand of flavored light-alcoholic beverage.
Overly strong flavorings are perceived as offputting, with subtle flavors having more general appeal as they enable the beer undernotes to shine through. Vodka flavors are set to become more focused on subtle and natural flavors as consumers become more refined in their tastes and increasingly prejudiced against poorer quality, cheaper flavored vodkas which have a more syrupy, sweeter taste. In contrast to other alcoholic drinks markets, the flavored alcoholic beverage category is relatively new, ensuring that consumers have fewer preconceived ideas of what flavors should be available. In addition, there are no well known base flavors to the drinks, so manufacturers are free to produce a wide range of flavor mixes in their products. Flavor trends in alcoholic drinks continue to evolve as companies seek to meet changing consumer tastes, expand into new consumer groups and bring more sophistication to brands in the face of high levels of brand competition.
The company’s competitive advantage is a combination of the Brand loyalty, core customer market, Brand Image, “Grass Roots” Marketing which is more effective in there region than competitors. 2.) What has made MMBC successful and distinguished it from the competition? MMBC has been successful and has distinguished itself from the competition in many ways. The reputation for quality beer and brand
PepsiCo has shown the best current ratio and is able to pay off their debts, which Coca-Cola does not have that and is struggling to pay off their debts. However, Coca-Cola has a higher retained earnings percentage, which means that it is able to have funds available for future growth of the company. The hope for both companies is to provide their financial statement with better information presented over their competitor giving the ability to earn more investors. PepsiCo and Coca-Cola do not need to be at war with each other as they have what it takes to get people to use both products, no matter what. Keep in mind, that it is the people’s choice whether or not to support a company and decide whether to invest in the company not competing against each
The selling price would only increase because the absolute value of -2.5 is 2.5 which are greater than 1 meaning it is elastic and an increase in price leads to a reduction in total revenue. So, to increase total sales revenue, the firm should lower the selling price. b. What happens to the demand for beer if the price of soda falls by 2%? Explain your answer.