...Budweiser Case Study Solutions CASE STUDY BUD VERSUS BUD 1. Assess Anhueser-Busch’s effort to reach an agreement with the Czechs to invest in Budvar. What, if anything, should the American company have done differently? Some efforts made to reach agreement were- a) Busch wrote to Czech promising to invest capital in brewery , marketing expertise and share management. b) Czech government sold all stakes except Plezensky Prazdoj because all that competed directly with Budvar. c) Anheuser-Busch thought to capitalize by investing in Budvar and also the trademark issue was resolved. d) To win over Czechs regarding the matter of taste, Busch spent $1 million on a cultural center in Ceske Budejovice. e) In 1992, the Czech Government decided to get involved in the industry privatization process. American Company should have focussed on the taste of the beer, as the taste was better in Europe. Also,for Czech’s the geographical origin was important, so Anhueser-Busch should have introduced their beer with a different name in Czech. 2. Do you agree with Anheuser-Busch’s decision...
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...Coors, Inc | | | Case # 4 South Delaware Coors, Inc. 10/28/2008 Problem Statement Which research studies should Larry ask Mason and Associates to complete? Upon consideration of the research study results, is this new business venture a go? Alternatives Larry has several different options to choose from with respect to research studies that can be completed. As long as he stays at or under his $15,000 budget he can request that any combination of studies be completed by Mason and Associates. Larry was presented with 9 different research studies that may be of assistance to him in deciding whether or not this truly is a ‘golden’ opportunity. The second part of the problem statement requires only two alternatives: To go ahead with the business, or to make a no-go decision. Recommendation/Discussion It is recommended that Larry choose the following studies for Mason and Associates to complete: • Study A: National and Delaware Per Capita Beer Consumption for 1988-1992 in Gallons • Study C: Estimates of Coors’ Market Share for 1990-1995 • Study E: Beer Taxes Paid by Delaware Wholesalers for 1988 and 1989 in the Market Area • Study F: Financial Statement Summary of Wine, Liquor, and Beer Wholesalers for Fiscal Year 1988 • Study H: Retailer Study (if the retailers don’t stock the product, consumers will not get it!) • Study I: Survey of Retail and Wholesale Beer Prices The total cost of the studies completed would come to...
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...appears to be a general shift in preference among consumers to prefer other types of alcoholic beverages to beer. In addition to losing sales to a different beverage option, Budweiser is losing market share in the U.S. beer market. At its peak in 1988, Budweiser sold 50 million barrels. In 2013, consumption was down to 16 million barrels and market share had decreased from 14.4% to 7.6% in ten years. Part of this is due to cannibalization of sales from other Budweiser products, such as Bud Light. This shows a macro change in consumer preferences, favoring options with fewer calories to help combat weight-gain. Another big reason for the decrease in sales is due to consumers switching to the craft beer market. In 2015 sales for craft breweries were estimated at 24.5 million barrels (a 13% increase since 2014) and dollar-sales were just over $22 billion (a 16% increase from 2014). These sales have given the craft brewery industry a 21% share of the beer market. This increase in sales is not coming from a single competitor. There are 4,269 breweries in operation in the U.S. as of early this year, which is the most in U.S. history. This makes the fight difficult for Budweiser, as they are fighting another trend with consumers moving away from the macro-brand that they represent to small, local breweries. Budweiser is fighting (and currently...
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...Big Buck Big Pharma Case Study Big Bucks, Big Pharma pulls back the curtain on the multi-billion dollar pharmaceutical industry to expose the insidious ways that illness is used, manipulated and in some instances created, for capital gain. Using excerpts from drug company advertisements as well as news reports on the pharmaceutical industry, the documentary raised important questions and presents options for the consumer empowerment. The film examines how direct-to-consumer advertising of medications is a fairly recent innovation that has led to a sharp increase in the sales of prescription drugs. Americans are encouraged to “ask your doctor” for name brand drugs numerous times throughout the day. Doctor’s report that sometimes patients will request a medication they have seen advertised without even knowing what condition or symptoms it is meant to treat. Advertisements in fact provide very little information about prescription drugs. Instead, the drugs are emotionally branded by associating their names with images of happy people, living fulfilling lives, in beautiful settings. Other pharmaceutical advertisements present normal aspects of life as serious medical conditions, leading healthy people to believe that they need unnecessary, and potentially harmful, and prescriptions. Throughout the case study there were several different section: Branding Drugs, Swimming in Pills, Disease Mongering, No Free Lunch, and A Healthier Prescription. In the section Branding Drugs...
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...Design thinking can be defined as a process by which businesses empathize with the situation and needs of the consumers so that they are able to produce goods and offer services that meet these needs. Therefore, design thinking is a protocol for solving emergent problems and discovering new ways and opportunities through which a business can improve and better its performance (Martin, 2007 P. 198). My Own Definition of Design Thinking Design thinking is the process of contextualizing business problems within the design framework. In this framework, the business leader envisions the problem at hand in a pictorial form and places all elements of the problem in its place. They then explore means to be used to link the problem with an amicable solution that will favor the needs of the consumers, who are the stakeholders that benefit the business. Application of Design Thinking in a Business Organization The concept of design thinking can be applied in a business context and as a leadership strategy to enable leaders to define the processes of their business in the most effective ways possible. However, the process of design thinking requires the leader to engage in a step-by-step process when applying the underlying...
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...Chapter 16 Today’s Promotional Techniques Chapter Contents Brief Chapter Outline 16.3 Other Teaching Resources 16.4 What’s New in this Edition 16.7 Lecture Outline and Lecture Notes 16.8 PowerPoint Slide Show 16.46 Transparency Acetate Notes 16.50 Casing the Web 16.54 Developing a Promotional Strategy for Biltmore Estate Answers to Video Case Questions 16.57 The Art Of Motoring – Mini Usa Lecture Links 16.58 Lecture Link 16-1: Subliminal Advertising 16.58 Lecture Link 16-2: Autowrap Mobile Advertising 16.58 Lecture Link 16-3: Dealing with Changes in Personal Selling 16.59 Lecture Link 16-4: Sampling Works Wonders 16.59 Lecture Link 16-5: Viral Marketing Used to Promote Yu-Gi-Oh! 16.60 Critical Thinking Exercises 16.61 Critical Thinking Exercise 16-1: Identifying Product Placement 16.61 Critical Thinking Exercise 16-2: Advertising Appeals 16.62 Supplemental Cases 16.64 Supplemental Case 16-1: Waking Up the Coffee Industry 16.64 Supplemental Case 16-2: The New Breed of Salesperson 16.67 Brief Chapter Outline CHAPTER 16 Today’s Promotional Techniques GETTING TO KNOW DAN WIEDEN OF WIEDEN AND KENNEDY I. PROMOTION AND THE PROMOTION MIX. II. ADVERTISING: PERSUASIVE COMMUNICATION. A. The Growing Use of Infomercials. B. Advertising and Promotion on the Internet. C. Global Advertising. III. PERSONAL SELLING: PROVIDING PERSONAL ATTENTION...
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...The issue cannot be resolved with a simple either/or decision. Cost revenue analyses need to be done and decisions made in the hard, cold lights of profitability. There is no question that significant cost savings can be realized from having standardized products, packages, brand names, and promotional messages but this makes sense only if there is adequate demand for the standardized products: costs must be balanced with demand. On the other hand, if the cost of an individualized product when evaluated against price/demand characteristics within a market exceeds potential profit, then it is ridiculous not to consider other alternatives including not marketing the product at all. To differentiate for the sake of differentiation is no solution, and realistic business practice requires a company to strive for uniformity in its marketing mix whenever and wherever possible. Economies of production, better planning, more effective control, and better use of creative managerial personnel are all advantages of standardization. 2. Define the country-of-origin effect and give examples. Country of Origin Effect (COE) can be defined as any influence that country-of-manufacturer has on a consumer’s positive or negative perception of a product. Today a company competing in global markets will manufacture products worldwide and, when the customer is aware of the country of origin, there is...
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...This case deals with the ethical dilemma that Tobacco manufactures face when selling tobacco products in third world countries. First, there is the ethical dilemma of business versus health. The opening and development of the tobacco business in Third World countries like China, Malaysia, Indonesia, India and Africa, is considered against the health consequences of tobacco use which according to an Oxford University epidemiologist, has estimated to cost 3 million lives annually rising to 10 million by 2050 without effective tobacco control program A second ethical dilemma is employment versus impoverishment, where the opportunities for work in the tobacco industry are considered against a background of malnutrition. This is a problem that is certainly worth consideration, but with those who have the power to change things reaping huge profits, I am not sure if anything will be done. 1. Use the model in Exhibit 1 as a guide and assess the ethical and social responsibility implications of the situation described Exhibit 1 is a decision tree. A model for incorporating ethical and social responsibility issues into multinational business decisions. The decisions are decided by the users’ responses to a number of relevant questions regarding the matter at hand. The first question the model asks is whether the decision efficiently optimizes the common good or benefits of the business firm, society, the economy, and the individual. From the tobacco business standpoint, the answer...
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...Question 1 (i): Using the data from the case (and any other source available), carry out for the European brewing industry a PESTEL analysis. What do you conclude? Beer has been a part of the social fabric of cultures around the world for thousands of years. Even today beer ranks as the third most popular beverage in the world next to water and tea. Considered one of the oldest drinks, the origin of beer dates back to 6000 B.C. With low-cost strategies and lack of marketing and product innovations all created a very stable situation guaranteeing high returns on investments for most breweries in Europe. However, this situation has been changing dramatically and the industry has witnessed different brewing styles over the last decade. The market entry of large multinational breweries resulted in shrinking demand due to changing consumer preferences, the emergence of more aggressive competitive strategies and rapid changes in important distribution channels have created growing competitive pressures for European breweries. An industry that was used to stability must now find its way in an increasingly turbulent market environment. First of all, I need to evaluate the macro environment of the industry. The most suitable tool to analyze the broad macro-environment is the PESTEL analysis. In the PESTEL analysis environmental influences are categorized into political, economical, social, technological, environmental/ecological and legal aspects. It helps to identify how future trends...
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...Case New Belgium Brewing (B) New Belgium Brewing: Developing a Brand Personality * Background NEW BELGIUM’S INITIAL MARKETING STRATEGY The idea for the New Belgium Brewing Company began with a bicycling trip through Belgium. Belgium is arguably the home of some of the world’s finest ales, some of which have been brewed for centuries in that country’s monasteries. As Jeff Lebesch, an American electrical engineer, cruised around that country on his fat-tired mountain bike, he wondered if he could produce such high-quality beers back home in Colorado. After acquiring the special strain of yeast used to brew Belgian-style ales, Lebesch returned home and began to experiment in his Colorado basement. When his beers earned thumbs up from friends, Lebesch decided to market them. The New Belgium Brewing Company opened for business in 1991 as a tiny basement operation in Lebesch home in Fort Collins. Lebesch wife, Kim Jordan, became the firm’s marketing director. New Belgium beers quickly developed a small but devoted customer base, first in Fort Collins and then throughout Colorado. The brewery soon outgrew the couple’s basement and moved into an old railroad depot before settling into its present custom-built facility in 1995. The company’s standard line has grown to include Sunshine Wheat, Blue Paddle Pilsner, Abbey Ale, Trippel Ale, 1554 Black Ale, and the original Fat Tire Amber Ale, still the firm’s bestseller. Today, New Belgium Brewing is America’s third largest...
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...Heineken International Table of Contents Introduction Market Analysis Market Segmentation Product Positioning Impact on the Consumer Consumer Decision Process Marketing Mix Market Plan Assesment Introduction It’s a competitive world out there! Having a business and understanding the ways to market and advertise to your consumers. What ideas should companies come up with to help or guide consumers into buying their product? Heineken International is one of the world’s most recognized brewers; their brand is therefore associated with socialization and having fun. In the face of changing beverage consumption, advertising restrictions, and a blurring of its positioning among self-owned and competing beverage labels, Heineken’s marketers decided to use the company’s strong brand equity to expand into adjacent markets and provide consumers with new ways to interact with the brand. The research paper will look at ways Heineken International has grasped the sales and marketing concept, with production, competitive pricing, target marketing and market segmentation. Heineken Market Analysis: Company- Beers and Lagers, that’s what Heineken specializes in. Founded in 1864 by Gerald Adrian Heineken, it’s a Dutch based company that now owns over 125 brewers in more than 70 countries. It brews and sells more than 170 international premium, regional local and specialty beers, including Tiger Beer, Zagorka, Star, Starbrno and Heineken Pilsner. It was...
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...decisions and actions required for a firm to achieve strategic competitiveness and earn above average returns. The goals of corporate strategy are challenging not only for large firms like Microsoft but also for small local computer retail outlets or even dry cleaners. I hope to offer a concise description of strategic alliances as well as a picture of who is participating in them and why. The states of affairs that encouraged this “rising era of collaboration” will be reviewed and the necessary steps in formulating alliances. Examples of companies that are or were involved in strategic alliances will be discussed, others of which were thriving and the others of which they were not. This paper is not intended to serve as a comprehensive study of strategic alliances. Introduction Corporate alliances, which are now called “strategic”, are in fact not new. Westinghouse Electric and Mitsubishi were allied for seventy years. The alliance between Ford and Mazda dates back to 1931, when Toyo Corg Kogyo (Mazda’s predecessor) asked for help to manufacture a three-wheeled vehicle in Japan. What are new are the resurgence of alliances and the scope of activities they embrace. In the 1990s, strategic alliances were a key factor in organization existence. Strategic alliances reflect an unstable economy. They are an attempt to offer stability to the environment....
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...RESEARCH TECHNIQUES CLASSIFICATION Uni-bi variant techniques • Uni-variant analysis – Frequency Tables (qualitative) – Descriptive Statistics (quantitative) – Summary Tables • Bi-variant analysis – Contingency Tables – Correlation analysis – Variance analysis Research Techniques II 2 Multivariant analysis techniques DESCRIPTIVE TECHNIQUES Factor Analysis Correspondence Factor analysis Cluster Analysis Output Association / Reducing dimensions Typology EXPLANATORY TECHNIQUES Varian Analysis Regression Analysis Discriminant Analysis CHAID AID Conjoint Analysis Multidimensional Analysis Research Techniques II Output Experiment results Prediction / Classification Segmentation Ideal Product Image / Positioning 3 VARIANCE ANALYSIS ONE FACTOR A random design is that where random simples are selected for each treatment. Yij = µi + εij where Yij: it is the answer of observation j who has received the treatment i µi: it is the mean of the treatment i, and εij: it is a specific random part for each observation Hypotheses: H0 : µ1 = µ2 = . . . = µp Ha: At least two treatments have different means. Assumptions: 1. The probability distributions of the p populations follow a normal distribution. 2. The variances of the p populations are equal. 3. Samples are selected randomly and independently from the populations. This model could be also expressed as the following: Yij = µ + τi + εij Where µ: it is the general mean, and τi: it is the differential effect of the treatment i. H 0 : τ...
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...Written By | Greg Stine The Nine Principles of Branding Supplemental Information for the Branding Essentials Workshop 2 4 6 9 12 14 16 18 20 23 26 29 32 Branding at a Glance Branding: What Is All This About, Anyway? Branding Principle #1: Keep It Simple Branding Principle #2: Mass-Produced Word of Mouth (PR) Builds Brands Branding Principle #3: Focused Brands are More Powerful Branding Principle #4: Differentiation is Key Branding Principle #5: The First Brand Advantage Branding Principle #6: Avoid Sub-brands at All Cost Branding Principle #7: Perception vs. Quality Branding Principle #8: Be Consistent and Patient Branding Principle #9: Write Out Your Brand Definition Discovering More Than Just Your Brand About the Author Table of Contents 2 Branding at a Glance By Greg Stine President of Polaris, Inc. The success of a product, service, individual, business, organization, or even a city is based on being perceived as unique. Look at any market leader and you’ll find they each own a place in the consumer’s mind. They have positively differentiated themselves from the rest of the competition. Branding is creating that individual niche in the consumer’s psyche and owning it. More than just marketing, branding is the entire effect that creates a memorable identity. A successful branding program is also based on differentiating yourself as unique. Effective branding creates a perception that there is no other product, service...
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... | |Lilia Gutnik, Tom Huang, Jill Blue Lin, Ted Schmidt | |Spring 2007 | INTRODUCTION The traditional broadcast television advertising model is based on the 30-second ad that regularly interrupts TV shows. Most viewers find these ads boring and intrusive, but until recently were forced to endure them in order to watch the show. With the advent of digital video recording (DVR) and the growing popularity of TiVo, television viewers are no longer a passive audience. DVR technology allows viewers to fast-forward or skip ads. According to a study done by the major television networks in 2005, 90% of viewers surveyed said they skipped all or most of the commercials. In addition, one of the most desirable demographics (18-34 year old males) are moving away from television all together, and spending more time using more interactive forms of media, such as video games. The peak time of day for game console usage coincides directly with primetime network programming, much to the chagrin of network executives as well as advertisers. Attempting to fight the loss of a passive audience, in 2001 a group of 28 plaintiffs including Disney, Paramount Pictures, ABC, NBC, CBS, and others sued SonicBlue, a former TiVo competitor. They claimed that the company's commercial-skipping technology...
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