The energy beverage companies are targeting same group of people as Red Bull and it is hard to make significant increase in profit. To make more profit companies should target diverse types of consumers to differentiate your company from the other companies in the same branch. The heavy consumers of energy beverages are consist of males between 12 and 34 ages. In this market is high brand loyalty which means that average consumer is limiting his/her choice to only 1.4 different brands. The convenience stores and supermarkets are the dominant off-premise retail channels for energy beverages.
Introduction: This case summary considers the Richard Ivey School of Business case ‘Creemore Springs Brewery: Branding Without Advertising’ prepared by Mark . Creemore Springs Vice President of Marketing, Howard Thompson, stated issue is whether to expand capacity of the Creemore Springs brewery from 27,000 hectoliters to 50,000 hl. Core Issue: Creemore Springs has been profitable from the first year of operation but is experiencing a production bottleneck - the brew house requires an expansion to accommodate a 50 hl kettle. A $3 million capital investment would allow production to almost double to 50,000 hl. The company has built its brand as a “beer that is discovered” rather than using traditional beer marketing strategies.
Weakness Innovation – Labatt has one of the strongest R&D facilities especially since they are funded by Anheuser-Busch InBev N.V. Even though they are the best, they lack in producing new types of beer instead of focusing on one type of beer which is made by grain. This is a weakness because many of its competitors are increasing production on new taste of beer. Production Cost – The production cost for Labatt is very high because they have different production line for Ontario and Quebec. In Quebec the Labatt Bleue is only 4.9% while the Beer in rest of Canada is 5% for Labatt Blue.
Unit 3 Assignment 2 Task 1a Carrying out a swot analysis for Tesco Strengths • The strengths for would be: • It is a powerful brand • It has a reputation for value for money and a wide range of products all in one store. • It is the UK’s largest supermarket with over 26% Market share • They are able to increase there market share • Cheaper then most supermarkets Weaknesses would be: • Tesco is not be able to provide a better service in books then Whsmith as they are more specialist in this region • Tesco controls its own massive empire which could lead to some weaknesses as due to the huge span of control from bureaucracy • They do not specialise and focus on one particular market like other companies, which can have a negative affect • They have competitors such as Morrison’s Opportunities would be: • They could expand more • Provide cheaper prices then Asda • Having special offers • Having lots of variety • Merging or forming a strategic alliance with another organisation would be a great way to improve their services Threats would be: • Other supermarkets would provide similar products • Some company’s would sell cheaper products then Tesco • They have competitors such as Asda • They have a growing public concern and annoyance that Tesco is threatening the smaller retailer Political • The price of petrol changing • There is growing concern that Tesco is getting too big • The organisation is driving out the competition • An increase in unemployment due to a downward turn in the world economic • Trading policies • Employment Law Economical • Impact on sales of the credit crunch • Exchange rates • Inflation • Interest Rates Social • An increase in immigration from Eastern Europe resulting in a demand for new goods • Changes in fashion • Lifestyle changes • Branding • Health and welfare
Indeed there was a “fit” between the McAulsan breweries and the external environment. At the time there were very little local microbreweries offering a distinctive taste from the big breweries. If the customer wanted to taste something he would have to purchase imported beer at a premium. McAuslan fit nicely in this niche brewing distinctive beer locally at a cheaper price than imports. McAlsan beer also had the added value of being brewed without any additives or preservatives.
where Red Bull is forbidden. Initially this was also the problem in the , where Red Bull was only allowed to be sold after its harmlessness had sufficiently be proven. 3.2 Economical Aspects Red Bull faces little exposure to economic cycles as it is a special drink, serving a niche market. Their target market are sportsmen/women as well as hard working people, who need a “push up”. There are few substitutes and through their well positioned advertisements their sales are increasing.
Threat of new entrants: Since bottled beverage market is huge specifically in the United States, it would be challenging for a new company to start up fresh since the products and services they have to offer may not be much different than what’s already available in the market. Since brand differentiation will be low, it will result as the threat of new entrants being low. Bargaining power of suppliers: The bargaining power of suppliers will be significantly low because there are about “50 manufacturers in the United States” (Gamble, 258). The suppliers don’t have much power since there is a wide range of available suppliers with whom any of big four companies can start business with. Bargaining power of buyers: Customers will also have a low bargaining power since water is an essential need of survival however they do have the option of choosing between different type of beverages; water, soda or energy drinks like Gatorade, protein shakes etc.
PepsiCo have outperformed Coca Cola by earning annual revenue of $29.2 billion compared to Coke’s annual revenue of $21.9 billion in 2004. (Coca Cola Company, 2005)2. The contributing factors of the fall to second place in 2004 was Coke’s unwillingness to strike a balance between tradition and changes, loss of its objective of placing it’s consumer as first priority has left the company unable to adapt to consumer’s demands on new drinks, from sports drinks, New Age teas to gourmet coffees, that have eaten into the cola king's market share. Being undifferentiated targeting, it had made the company more susceptible to competitive inroads. While PepsiCo have diversified into healthier products and snack food business, Coca Cola have fell in marketing investments (advertising and marketing research) to maintain short term profit.
Porter’s five force analysis (Appendix C) shows high levels of competitive rivalry, buyer power and threat of substitutes. Barriers to entry were also not high enough to ward off competitors. A primary reason for high competitive rivalry was excess capacity. We can see from case Exhibit 3 that the seasonality in Russia was higher than in the US in 1921. High levels of impulse buying at kiosks versus home consumption (only 3% home consumption versus 30% in the US) caused the seasonality, which led to excess capacity.
Another point is that bottled water is no healthier than tap water. People misunderstand that bottled water is clean and pure. However, there are chemicals that are released from the plastic that is a huge problem that most people don’t realize how it can be harmful to their bodies. Can you imagine buying an item for 10,000 more expensive than its original price? However, you are probably making this unreasonable decision almost every day.