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.
Market Customization: Market Segmentation, Targeting, and Positioning “Coca-Cola has never disclosed how much it lost in the new Coke fiasco, though bottlers told Mr. Meyers of Beverage Digest that they took a hit of $30 million on unwanted concentrate for new Coke. The company also spent $4 million on market testing and taste comparisons with 200,000 consumers.” http://www.nytimes.com/1995/04/11/business/company-news-ten-years-later-coca-cola-laughs-at-new-coke.html Question: Can the failure of “New” Coke be attributed to shortcomings of Robert Goizueta’s Market Customization strategy. Answer: The Background: From 60% in 1950, Coca-cola’s market share had dropped to 24% in 1983. The market share was mainly lost to Pepsi-Cola. Coca-cola thus, in 1985, decided to introduce a new formula (unpopularly called New Coke) in-order to drive up sales.
The process of pasteurization allowed Anheuser Busch to manufacture beet that could be shipped over long distance without spoiling (Anheuser-Busch Companies, Inc., 2011, para. 2). Coupled with the artificial refrigeration of railcars and trailers Anheuser Busch was able to transport and market nationally (Anheuser-Busch Companies, Inc., 2011, para. 1). Therefore, the company had to develop a
Meanwhile, competitors were springing up everywhere. Then Chet Cadieux had a marketing management revelation—and he began transforming QuikTrip into the company it is today.3 Cadieux refocused QuikTrip's product offerings toward high-volume items such as branded beer, soda, cigarettes, coffee, and candy, and eliminated low-volume items such as canned vegetables. He cut prices as well. He added gasoline sales in the early 1970s, and then made it a major product offering in the late 1980s and early 1990s. Like its other product offerings, QuikTrip takes a lower gross margin on gasoline sales than its major competitors do, but it makes up for the lower margins with much greater volume.4 Today the company's Web site describes QuikTrip as follows: "QuikTrip Corporation is a privately held company headquartered in Tulsa, Oklahoma....QuikTrip has grown to a $9 billion company with 580+ stores in 9 major metropolitan areas.
Midterm Case Study: Mountain Man Brewing Company 1.) Perform a SWOT analysis for MMBC. What is MMBC’s competitive advantage and is it sustainable? Strengths: -“Grass Roots Marketing”-“Best Beer in Virginia” - “Best Beer in Indiana”-Reputation- Blue collar market-East Central Region-Americas Championship lager-Brand Awareness in region compared to that of John Deer and Chevrolet-Quality- Brand loyalty (rate at 53%)-Small sales force to proselytize brand- Brand equity-Off premise locations Weaknesses: - product expansion or variety - declining sales in target market- broadcasting advertisement- female and younger beer drinker segments- Finances- market share. Opportunities: -Expand into different regions blue collard segment- Expand into new market segments in East Region- New products- Female- “First Time Drinkers” Threats: -Aging core- customer segment- Major Domestic producers- light beer- Second tier domestic producers- Wine and spirited drinks companies- federal excise tax rate, increase in national health concern MMBC’s competitive advantage is the companies unique brand equity.
In addition to it some additional challenges faced by the Brita brand were: * Bottled water consumption was growing at a tremendous pace which was the main cause of the Brita brand’s volume decline. Bottled water was expected to surpass carbonated soft drinks as the most popular commercial beverage in the US in 2004. For bottled water (400 brands), 20% of brands were driving 80% of category volume. * The “leaky bucket” issue where customers who bought the product stopped using the brand because these consumers were finding changing filer too onerous job. * Refrigerators with built-in water filtration were going rapidly at an expected rate of at least 2 million units per year from 2005.
financial crisis hit last year. (Associated Press, 2009).” Toyota had recently lost $3.5 billion even though they had the recent growth and financial stability. Losing this amount of money in such a short time period has scared their company and has been the first major downfall since the company started up in 1950 and having a record breaking year previously with 1.7 billion dollars in profits. With a solid growth record for the past 60 years it looked as though this would be very unlikely to happen to Toyota. This illustrates that even a multi-national company such as Toyota is not immune from financial mistakes, even with a strong past performance and competitive product line up.
King of Beers Budweiser Beer has been around since the late 1800s. It has been one of the biggest names in brewery for a long time, and coined the name “King of Beers” in the mid 1900s. This advertisement appeared twice, first, September 7, 1963 in the Saturday Evening Post and second, September 20, 1963 in Life Magazine. This advertisement’s main focus is to show that Budweiser beer is a great way to top off the day, and is targeting at younger men, fun, togetherness, and American spirit. The top headline for the ad says “This calls for Budweiser”.
However, in the late 80s, one of the most serious Coca-Cola competitors, Pepsi, implemented a new marketing strategy and caught up with its market share. The competition of the two companies was primarily based on taste. Pepsi introduced a series of commercials called “The Pepsi Challenge.” Surprisingly, consumers preferred Pepsi over Coca-Cola. Pepsi’s market share skyrocketed. Concerned with Pepsi’s success, Coca-Cola decided to replace its old formula with a sweeter variation and introduced a new product named “New Coke.” The author provided a detailed report about the $4 million budget that Coca-Cola spent on market research.
• The Economy’s issues had crippled the country financially; legalizing Alcohol could provide some relief as a taxable product as it once was. • Another financial burden the US took on as additional cost, was the cost to enforce the law of prohibition. • This cost about a billion dollars during the prohibition