Bayern Brauerei Essay

708 Words3 Pages
I. Executive Summary II. Point of View: The group will take the point of view of Maria Ober, the Bayern Brauerei managing director’s niece, who is about to join the board of directors’ meeting for the first time. III. Case Context: Company Background The Bayern Brauerei was founded in 1737 by Gustav Ober. It was entirely owned by the Ober clan and had been in the family for 12 generations. The company was located in a village just outside Munich, Germany. Bayern Brauerei produced two varieties of beer: dark and light, for which it won excellent awards consistently over the years. The company’s modern equipment was capable of producing 700,000 hectoliters of beer per year. Because of its improvements and slightly larger size, the new equipment increased the potential of the brewery. After the Berlin Wall fell in 1989, Germans were permitted to move freely between the eastern and western portions of Germany. August Ober, the managing director, envisioned to penetrate the eastern Germany market. The following year, he hired Max Leiter as the company’s sales and marketing manager to position Bayern’s beer in die neuen Bundeslander (the new federal states, Lander). In 1993, German consumers accounted for all the company’s sales, of which 81% were in western Germany and 19% in the new federal states mainly. The eastern Lander had accounted for most the unit growth in Bayern’s sales over the years. The company served its markets through a network of independent distributors. These distributors purchased beer, stored it temporarily in their own refrigerated warehouses, and sold it to their customers at the end of the distribution chain. Max Leiter had embraced a different strategy in Eastern Lander. Industry Analysis Germans are renowned to have a strong history of loyalty to their local brewers. Most breweries in Germany have been typically small and

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