just behind Coors Light Defying the Traditional Product Life Cycle Theory - Going by standard marketing practices one would say that Budweiser finds itself in a decline phase due to its continued drop in sales over the last 25 years - But some would argue that brands like Budweiser and Coca-Cola defy standard theory due to brand identity and customer equity ,12derived from a loyal customer base - Anheuser-Busch is a master at identifying Budweiser as a true national beer, with a great American legacy, and a commitment to American values - The Budweiser brand also maintains a huge customer equity – they fell to Number 3 in the U.S. market in 2012 yet still sold over 108 million cases13 - A profitable market position allows for more precise sales forecasting - The merger of Anheuser-Busch and InBev in 2008 benefited the Budweiser brand in that it is now available in over 80 markets worldwide14 ,4,5,6 http://anheuser-busch.com/index.php/our-heritage/history/ ,3
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. Mountain Man Lager is distinctive because of its’ bitter flavor and slightly higher-than-average alcohol content. The company has made a profit since 1925 until 2005 about 80 years by having a loyal core customer base and building on its brand equity. It is sustainable as long as they keep or increase their core customer market without jeopardizing the brand image. 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.
They can do somehow a better job in making sound investments and control the marketing with their products. I see that there were some challenges from some years especially when PepsiCo and Coco-Cola were at a war to compete each other with their businesses. Coca-Cola and PepsiCo are a few years apart, but both of them are well known and have such popularity with people drinking their sodas. Coca-Cola has been trying to surpass PepsiCo in their annual sales; however, from review, PepsiCo somehow has the highest number in their annual sales than Coca-Cola. 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.
Case Study Series: What’s Working in Marketing & Selling Professional Services Crisis Averted: Proactive Sales Effort Stops Training Organization’s Revenue Loss By M. Sharon Baker Overview When Tony Jace took over in March 2009 as chief executive officer of Crisis Prevention Institute, he was looking forward to continuing the organization’s 28 consecutive years of revenue growth. But he quickly learned that the previous management team hoped to grow revenues by entering into new markets and had invested heavily to do so. And that plan was failing. The Wisconsin-based crisis training organization was facing a revenue decline of several hundred thousand dollars for the year and Jace needed to act quickly. Situation Jace knew achieving a 29th year of revenue growth in a very uncertain economic climate would be tough.
The second would be to hire a marketing expert to help increase the publicity of the bar. And lastly, the lounge could start to have weekly live entertainment from big name artists. Hiring a marketing expert to increase publicity and popularity is the recommendation. The best possible scenario is that the Chapters lounge would regain its popularity and the amount of guests will increase exponentially causing the amount of monthly revenue to go up by 88% in the first year. The worst scenario is that the publicity doesn’t help and people continue to go to the other bars and this would cause the revenue to keep dropping.
Cons: Retails could by less baking soda and could probably decide to sell baking soda at a higher price, which could deter some existing costumers from buying again. Option 2: Since a 40% of consumers use coupons when purchasing baking soda the brand director could attempt to increase consumer promotions. Pros: There has been some success in the past to this method and there is also an emerging trend of coupon clippers as mentioned in the case. Cons: This would lower the amount of revenue per unit sold and although consumer like to use coupons when purchasing baking soda, a heavy user of the product only purchases 5 times a year. Option 3: Increase the turnover rate of baking soda by introducing freshness indicator in the small 8oz packages of baking soda.
The first stage is the introduction stage; this stage is the most expensive to businesses because it is the launch of the new product. The product is new to the market, therefore the sales are low. Coca-cola expects this to happen as it does with all new products. Coca-cola is a family, well trusted brand that has been around for many generations. Merging the coca-cola product with an alcoholic beverage is brand new to the company and will require many different advertisements and promotions to get this product in the public eye.
According to the case, as we see above in exhibit 1, Corona has become one of the world’s top ten selling beer brands and Corona Extra has turned out to become the top selling imported beer in the United States according to exhibit 2, even though the company has allocated $300 million to renovate its production facilities, they have to make sure to distinguish which brand would be the winner and how the company could execute their plans to sell that winning brand in various markets around the world. The company has to come up with different strategies for different markets and accordingly set budgets to increase production facilities. Hence an appropriate budgeting of the capital for production has to be foreseen by the company and prioritized accordingly as a high demand from a certain territory may cause the company to fall short on supply and hence a loss of market to competitors and potential revenues to the company. Therefore a proper allocation of resources has to be made with appropriate forecasting. Another issue which arose in 1991 was the doubling up of the federal excise tax on beer in the United States which caused a slight decline of 15% to the sale of Corona in the US.
Contents Introduction 2 PART A: 3 Neptune Gourmet business model 3 Strengths and weaknesses of the Neptune business philosophy 3 Opportunities and threats 4 Neptune vision statement 5 PART B 6 Consequences of launching a lower price brand 6 Neptune position in the next two years with only a single premium brand 7 Part C: 9 Radical change from premium products to value priced products 9 Brand extension strategies 10 Recommendations 10 References 12 Introduction Neptune Gourmet Seafood, North America's third-largest seafood producer. It has the intention of maintaining its premium image and is obsessed in investing in new technology in an effort to surpass its competitors from Peru, China and Japan. For that reason, the company has invested in a multi-millions state-of-the-art fishing boats equipped with modern technology of harvesting fish in an environmental friendly way and capable of preserving the catch for days before selling to the consumers. This has increased their market advantage and the company has been able to maintain its premium image. Unfortunately, the technology has resulted to an unpredicted increase in supply of the seafood and consequently their inventory of finished goods has shot up to sixty days supply which is twice the normal levels and close to three times a year ago.
Because of this phenomenon, Heineken wishes to reposition their flagship brand as a younger, trendier beer and capture more of the 21 to 30 year old beer-consuming market. To achieve this goal, Heineken has hired Group 1 to conduct research on this target market and determine why college students buy beer. By defining the construct of a beer purchase and conducting qualitative and quantitative research Group 1 can help Heineken to reposition their brand to better suit a trend toward young, college-aged drinkers. Problem Definition Heineken has traditionally always been a beer for a mature demographic (Schmutt 2010); but recently, many of Heineken’s main competitors have begun to market their mature brands to a younger audience. Heineken too wants to capitalize on this growing trend of young (21-30 year old) drinkers, but lacks the research capabilities to carry out this task.