Well-known companies have already proven that they can differentiate their brands and reputations, as well as their products and services, if they take responsibility for the well-being of the societies and environments in which they operate. These companies are practicing social responsibility in a manner that generates significant returns to their businesses. Social responsibility makes a company more competitive and reduces the risk of sudden damage to the company’s reputation and sales (O.C. Ferrell, 2012). New Belgium Brewing saw social responsibility as part of a continuing process of building value.
Hence, there is no real threat to see a new comer eroding the whole market profits by heating up internal rivalry. • Performance in the soft drink industry is highly related to brand reputation and consumers highly value it and are mostly brand loyal. Entrants should heavily invest in advertising and merchandising to establish a strong brand awareness. • Network externalities: Pepsi and Coke have a large installed base: they handle both concentrate production and bottling through their own
Coke versus Pepsi (Cola Wars) The “Cola Wars” between Coca- Cola and Pepsi is not the new case, this rivalry is the buzzword not only in the industry but also for the whole globe because both companies are reaping the lions share because of their unique products but by keep facing the intense rivalry from their own industry peer but Coke has some key advantages that are the outcome of implementing the Porter’s five forces model and that implementation give the edge to coke over Pepsi. To analyze that rivalry, Michael Porter five forces model that describe the strategies for businesses to further expand their business and clientele by keep keenly observing their rivalry’s pros and cons. According to the porter this keen observation is highly inevitable to develop and devise the strategy that has the features not only to solve the current puzzle but also to further strengthen the business. Porter five force model is multifaceted that does not only evaluate the industry status in perspective of open market but also has the characteristics to analyze the rivalry, threats as well as to explore the opportunities to reap the benefit of competitive advantage. To be precise, Porte’s five force model will be discusses in the perspective of business rivalry, bargaining power and close substitute respectively.
Case Study New Belgium Brewery Social Responsibility and Ethics Management MGMT 325 Activity 1.3 Case Study New Belgium Brewery 1. What are the ethical issues in this case? The ethical issues in this case revolve around the core values of New Belgium Brewing Company. NBB is promoting a beer culture with responsibility, and enjoyment for beer in a kindling, cultivating, balancing and trusting environment. New Belgium Brewing Company was founded on the ethics of sustainability and social responsibility.
The article further discusses a new marketing campaign they will be starting in 2011. This article is important to management because Miller Coors LLC revenue has been declining and the Chief Marketing officer has recognized this and is attempting to increase future income by capitalizing at the time when beer sales are at its highest. This is also important for management because they have recognized they need new product development strategies as well as diversification. General Analysis The current management trend is that management recognizes that they still have a high market standing, however their sales are down, and they must be innovative, to be a leader in introducing new products. Peter and Donnelly (2009), state” some of the most successful business organizations are here today because many years ago they offered the right product at the right time to a rapidly growing market (p.6)”.
Adolphus started as a salesman who sold brewing materials to Anheuser. Adolphus then soon worked his way into the household business and up the business ladder, and ultimately became a partner and in conclusion, the company’s president. With high hopes, and aspirations, Adolphus was considered to be the powerful force of the company that would finally alter it into a manufacturing giant. Because of this, many people see Adolphus Busch as the originator of the business, and the “Father of Budweiser.” (www.beerhistory.com) (www.streetdirectory.com) It was clear that Adolphus was a man of great ideas. His early ambitions involved a national beer market as well as a national beer that would demand to practically every taste.
This is the first time the brand will offer a non-beer alternative since the conception of Molson Breweries in 1786. The following paper will provide a detailed marketing strategy to build brand loyalty and ensure success of Molson Canadian Cider. Situation Analysis: Strengths: Molson Canadian has been a trusted, nationwide, household name for decades. Through their long history and deep Canadian roots, Molson Canadian has been able to leverage brand awareness and loyalty by capitalizing on a society that is high in nationalism. They have maintained a strong market share that currently rests at 35.2% (Reference 2) for total volume of beer in Canada.
According to Bloomberg Business Week, Coca-Cola remains the best globally recognized brand across all industries for years, while Pepsi’s brand ranked number 25 in the year 2008. Thus, Coca-Cola is able to charge premiums for its syrup concentrates due to its larger market shares and better brand name recognition. In order to compete against Coca-Cola and increase revenue, Pepsi has diversified its businesses as I stated above into other markets such as snacks, chips, and breakfast foods, with its core business focusing on soft drinks. Undoubtedly, the company’s strongest and most identifiable brand is indeed Pepsi but it has a certain advantage over Coca-Cola since it is more diversified. On April 9, 2009, Coca-Cola Company reported cash and cash equivalent to be $6,816,000,000 and on December 26, 2009, Pepsi reported cash and cash equivalent to be $3,943,000,000.
With the two core values of Tosco: None tries hard for customers and treat them as we want them to treat (2005).Tesco is beautifully driven by its quality service and standard products. Its emphasis mainly on understanding needs of customers through highly trained and motivated employees to guarantee customer satisfaction. Tesco’s mission and vision shows that the company is driven by loyal customers (2006): [TEO3]. As the retail industry profit is steadily increasing and profiting by cash cows, Tesco’s strategic position is alaysed in this report. Dominating food and grocery retail market by almost three-fourth of all sales accounted, Tesco cemented its place to be largest retailer in UK.
The Industry as a whole strives to reduce costs. The DCF approach -“When customers insist on our brands for reasons other than price, when they view our products as clearly superior to other appliances.” Ex: Super efficient refrigerator program. Also “building competitive advantage by continuing our expanding worldwide enterprise at all levels, and to leverage its best practices and Whirlpools cumulative size”. Innovation is also very important competitive advantage. Whirlpools were able to go to the position of a leader in its industry because of three things: Cost efficiency – focused