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. 2.) What has made MMBC successful and distinguished it from the competition? MMBC has been successful and has distinguished itself from the competition in many ways. The reputation for quality beer and brand
Urban Outfitters Continuing Case Study: Marketing a business. Explain why Sears or Wal-mart cannot effectively create a trendy counterculture image. Wal-Mart is better known for their lower prices and to do this they buy in big volume. Whereas the trendy market merchandise is more expensive; although Wal-Mart could buy this type of merchandise they would have to charge more. That is not what they offer or how they have in the past represented their company.
What works in the home country generally may not necessary work in the host country. Wal-Mart boosts its reputation with a well established supply chain management and a pool of highly trained employees which they called ‘associates’. Perhaps one of its more obvious strengths is the strong branding that it has in association with high quality, low price products. Having said, its global expansion is still limited due to economic and political instability in countries where it serves as well as stiff competition it faces with local rivals. Initially, Wal-Mart depends very much on its ethnocentrism approach.
Evaluation of strategy: Peter McAuslan ensured that the focus of the business was correct in the context of the customers, competitors and industry trends. McAuslan was able to identify a focus, that is to offer a more distinctive taste than the big Canadian brewers. This fit right into customer context as his beer was welcomed by patrons who appreciated his beer with an imported taste at a lower price. At the time, microbrewery competition was very limited in the microbrewery sector and the industry trend was toward regular mainstream beers offered by the big 2 breweries: Molson and Labatt beer. Indeed there was a “fit” between the McAulsan breweries and the external environment.
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. However, Coca-Cola has a higher retained earnings percentage, which means that it is able to have funds available for future growth of the company. The hope for both companies is to provide their financial statement with better information presented over their competitor giving the ability to earn more investors. PepsiCo and Coca-Cola do not need to be at war with each other as they have what it takes to get people to use both products, no matter what. Keep in mind, that it is the people’s choice whether or not to support a company and decide whether to invest in the company not competing against each
As mentioned earlier, Larry possesses a competitive advantage in his pursuit of a beer only business. This narrow focus will allow him to control costs, and invest money not only in his relationships with the retailers, but also in local marketing and advertising campaigns, especially targeting the market segments who are value conscious, environmentally friendly, and believe in the American dream (giving people something to believe in). Everyone needs something to believe in, and this basic human need for connection can be fulfilled through affiliation with Coors. Another competitive market edge for Larry is the proximity of the Virginia production plant to Delaware. This will make it easy for Larry to keep his beer supply fresh, and his inventories low, which reduces his overall cost structure.
Heineken’s 3 step approach When Heineken enters a new market, it follows a basic set of steps designed to maximise its potential profits in that market: It often begins to export its beer into that market as a way to boost brand familiarity and image. If sales look promising, it then licenses its brands to a local brewer. Doing this allows Heineken to build its sales further while simultaneously becoming more familiar with local distribution networks If this relationship also yields promising results, Heineken then either buys partial ownership of the local brewer or forms a new joint venture with that brewer. The end result is a two-tier arrangement with the more expensive Heineken label at the top of the market and the lower priced local brands at the bottom, all sharing a common brewery, sales force and distribution network. Consider Heineken’s approach, by answering the following questions: What are the specific factors that enable Heineken to use this 3 step approach, and make it difficult for other firms to copy it.
In a highly competitive business world, on a firm’s priority list is the subject of increasing profit and reducing cost. One might than pose the question, has this put them out of business (mom and pop store)? The answer is absolutely not, but rather, they too benefit from cheaper prices as they continue to buy in bulk and continue to operate as the name suggest, convenient
Threats include media scrutiny as to the caffeine content of the drinks as well as misuse by some individuals using the drink as a stimulant irresponsibly. One of the most popular energy drinks on the market is Nero, a line of beverages with sexy packaging that are designed to assist your body throughout the day. Strengths of Nero beverages include; a relatively successful following and attractive packaging. Weaknesses include the fact Nero is not organic and thusly doesn’t appeal to that part of the market, as well as what the actual ingredients are in which provide energy. Opportunities are the growing energy drink market as well as the possibly expansion of their flavor line.
They also improved the label design of the bottle. They were placed in Alternative Beverage Category where at the time Coke and Pepsi did not have a share in the market. Snapple was in the middle where it was neither like Coke with unhealthy drinks nor the healthiest drinks in the market. As for the Price, it applied premium pricing for its successful products which enabled it to be profitable and cover losses from failures. Its Promotion method was one of the key elements that made the company achieve success.