...Case Summary Charlotte Beers at Ogilvy & Mather Worldwide (A) Ogilvy & Mather In 1948, David Ogilvy, a 38-year-old Englishman, sold his small tobacco farm in Pennsylvania and invested his entire savings to start his own advertising agency. David Ogilvy imbued his agency’s culture with the same “first class” focus that he demanded of creative work. Employees were “gentlemen with brains,” treating clients, consumers, and one another with respect. Revenues soared in the 1970s, culminating in record double-digit gains in the mid 1980s. The advertising industry boomed, and Ogilvy & Mather led the pack. Nowhere was the agency’s reputation greater than at is New York office, heralded in 1986 by the press as “the class act of Madison Avenue.” Advertising Industry Changes The booming economy of the 1980s shielded the advertising industry from the intensifying pressures of global competition. Companies fought for consumer attention through marketing, and advertising billings grew- on average, between 10% and 15% per annum. However, after the stock market crash of 1987, companies reconsidered the value added by large advertising budgets. Increasingly, many chose to shift resources from expensive mass media and print campaigns toward direct mail, cable, telemarketing, and sales promotion. “Beleaguered” Ogilvy & Mather As clients demanded lower costs and greater service, Ogilvy & Mather-like many large agencies at the time- was slow to make adjustments. In May 1989, WPP Group...
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...Charlotte Beers (Ogilvy & Mather) Case analysis At the point of planning to the launch of the business, the owner of the business is very passionate and usually experienced in the line-of-business; as David Ogilvy was at the age of 38 when he started his own advertising agency in 1948. Ogilvy & Mather, an advertising agency was started in New York and expanded worldwide. By 1991, O&M was ranked the largest marketing company in the world.[1] But there comes a time when a company must look to adapt a change. With competition growing, clients of O&M changed their demands. O&M was a high-cost agency that was failing in controlling their budget and lowering their cost; they failed to see the reason for a change. Due to that fact, O&M had lost few of their multi-million dollar accounts. Many companies may have either filed bankruptcy or have shutdown in the process of losing their clients but O&M was not the type of company that would give up that easily. In 1992, Charlotte Beers was appointed CEO of O&M and a massive change was underway. She was not the type of person who would dwell on the past, but instead look to better the future. Charlotte Beers clearly made an impression on the O&M employees as she had the ability to inspire. But more importantly, she came up with three strategies which turned the company around 360 degrees; Client Security, Better Work/More Often, and Financial Discipline. Yes these strategies were formed for an advertising agency, but if clearly...
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...Charlotte Beers at Ogilvy & Mather Worldwide (A) By Matteo Conta FEMBA 9B Charlotte Beers at Ogilvy & Mather Worldwide (A) Document purpose: suggestions to increase acceptance of Ogilvy & Mather’s new Vison on employees below senior executive management. Problem definition December 1993: Charlotte Beers assesses the progresses made by the company after she became CEO: she realizes that clients love the Brand Stewardship concept, but most employees, below executive levels, have not embraced the newly created Vison. The problem I will focus in this document is the following: the majority of employees did not embrace the new Vison. I will analyze why this is a key problem, why it is happening and I will propose steps to accomplish more acceptance. Analysis Brief Background Major events have shaped the history of the company in the recent years: first the hostile takeover, 1989, then the loss of key accounts and credibility in the business. Many key senior employees have left in the 2 years following the takeover. The company Vison has been: “just keep doing the same thing, just better”, but the world around has been changing. The marketing business has clearly become more global in nature, with "mergers to form mega-agencies and the concept of transporting brands around the world", and customers are demanding for “more service at lower costs”. Re-creation Technically the type of organizational change Beers has to face as new...
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...gasses in contact with the water, a highly efficient method for gas control can be achieved. Membrane contactors are widely accepted to control gas levels in liquids used in the soft drink and brewing industries. Some of the applications that membranes have been used for in these industries are listed below. Brewing O2 removal from blending water • Oxygen can break down the final product if it is not removed from the water used in the blending process. For this reason, O2 specifications are typically less than or equal to 10-ppb. O2 removal of pushing water • In breweries, large volumes of product is left in DE filters and piping. In order to collect and use the product, the brewery will pump water through the system to “push out” the beer. • The O2 specification here is also less than or equal to 10-ppb. Low O2 concentrations are important because the product will absorb any gasses present in the pushing water. Soft Drinks/Coffee/Teas Deoxygenation/Carbonation of blending water • In packaging plants, water and syrup are mixed prior to being bottled or canned. In this application, oxygen is removed from blending water prior to blending. • Carbon dioxide can also be added to liquids for precise control the CO2 levels prior to packaging. Deoxygenation of water used to brew...
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...macro-environment; the outside factors beyond the control of a company. It categorises the environmental influences into six groups: political, economical, socio-cultural, technological, environmental and legal; making up the acronym PESTEL. Analysis Political factors Europe has traditionally been seen as the centre of the beer brewing industry. However, the level of alcohol consumption is gradually declining. This is because many of the key markets within Europe are increasingly more aware of the social and health issues caused by excessive alcohol consumption. Governments are actively campaigning against the abuse of alcohol and the possible consequences of drunk driving, ‘binge drinking’, and the long-term effects related to health. These key factors relate directly to government policies and their decisions towards the European beer market. Economic factors As a result of government intervention, there has been a marked decrease in product sales in public premises. As people are more and more likely to drink at home rather than out to bars, the alcohol sales has shifted from ‘on-trade’, where beer is consumed on public premises, to ‘off-trade’, where beer is purchased by retail and consumed on private property (e.g. at home). This has resulted in the increase of supermarket sales, along with the added incentive of discounted offers made by the competing chains (e.g. Tesco and Carrefour). These factors deal with money and economic activity within the market, making this a...
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...Generation Fucked Up – Danish Drinking Culture. Alcohol consumption is a large part of many cultures, from celebrations at coming-of-age ceremonies to wishing good health on one’s friends. Denmark is a country which does not sway from this notion in the slightest. Denmark, a part of the notoriously-drunk Scandinavian countries, is facing a crisis: Generation Fucked Up. Generation Fucked Up refers to the Danish adolescents, who, heavy with a culture of binge drinking, are spiralling out of control. Who is responsible? Why is it so? And what can we do to stop it. Binge drinking is a concept that is concerning parents in not only Scandinavia, but worldwide. Binge drinking is when people, often young people, go out and consume alcohol at alarmingly high levels, often enough to be hospitalised. This is most prevalent in teenagers. In most parts of the world, it is forbidden to consume alcohol at all until ages 18-21. But in Scandinavian countries, this is not the case. The students of the Norwegian schools are given venues within their institution to consume alcohol. The Swedish teens are sufferers of the Swedish ‘4-day-hangover’ after every weekend and public holiday. And Denmark tops them off with not only the most lax access to alcohol for teenagers, but the highest alcohol consumption, for teenagers, in the world. According to the World Health Organization, the Danish teens are drinking 11.3L of pure alcohol every year. The Danish adults, however, are not as severe. Whilst...
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...second largest brewer,1 announced the friendly takeover of the world’s 51st largest, Royal Grolsch N.V. of the Netherlands, for €816m in cash - 84% more than Grolsch’s value over the previous month. Nick Fell, SABMiller’s Marketing Director, explained the logic of the deal: “[Grolsch is] a fantastic brand. It’s North European, it’s a fantastic product, it’s got unimpeachable brewing credentials and authenticity and credibility. And it’s a damn good product. So for anybody interested in developing their premium beer business, this is an absolute peach of a brand to get hold of… we see huge potential for it in our global footprint, particularly in markets like Latin America and Africa where we’ve got a strong route to market but where the premium beer business is still in its infancy.”2 Grolsch had hitherto focused on developed markets, particularly the UK, US, Canada, Australia, New Zealand and France, in pursuit of its goal of becoming one of the world’s top 10 global beer brands. Groslch was already the world’s 21st largest global brand, measured by international (nondomestic) volume (see Exhibit 1). International volume had grown to account for slightly over onehalf of total volume and, going forward, seemed to offer much more potential. Drinkers often rated Grolsch higher than larger brands, including Heineken, the top global brand as well as the leader in Grolsch’s home market (see Exhibit 2). And Grolsch had started up a state-of-the art brewery in 2004 that could be expanded...
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... Budweiser Executive Summary The current business environment for a piece of the beer industry market is very competitive. Breweries must compete against other breweries, both large and small to remain a viable player in the sale of their beer. Budweiser is a product produced by Anheuser-Busch, an American brewery founded in St. Louis in the mid 1800’s. The intention of the following marketing plan is to not only continue to add to the legacy of Budweiser, but to re-energize the consumer’s appetite for Budweiser and increase the market share of the product. The formula for Budweiser is over 130 years old. The recipe has a unique blend of barley malt, brewer’s rice, yeast, water, and hops. These same five ingredients are what still goes into Budweiser today. We will promote how after 130 years the tried and true tradition of these five ingredients are the building blocks that give Budweiser its uncompromised flavor. In addition to the five ingredients, the seven steps in brewing Budweiser remain the same today. The seven steps are milling, mashing, straining, the brewkettle, primary fermentation, beechwood aging, and finishing (Budweiser Anheuser-Busch). Using the beechwood aging process allows more interaction between the beer and the yeast. This is the unique formulation that has propelled Budweiser into the staple beer which many others have imitated, but not quite duplicated. We will use Budweiser’s unique recipe and brewing process...
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...Ingredients Found In Beer are Beneficial to Our Health Drinking beer for some people who likes to go to the party or just relaxing their body is a habit. However, some people think beer is the alcohol drink that effects bad habit, cause be hangover, and has high risks for some diseases. Besides that, some people consider that consuming beer intake too much can damage the body’s digestive system, kidney, and fetuses of pregnant women. Apparently that drinking beer has positive effects to our health as long as normally consumption though consuming of beer has the bad effects too such as bad habit, hangovers, and addiction. However, several study says that benefits of beer consumption is able to minimize some of disease symptoms. Beer consist of 5 main ingredients (Water, Malt, Barley, Hops, Yeast), but some sources says that 3 of the ingredients (Water, Malt, Yeast) are useful to reduce the risk of kidney stones, diabetes, and gastric acid, which means has certain good effects to our body. The first main ingredient that are useful for beer is 93 percent comes from Water. Water in beer should free and clean from bioligical, physical, and chemical contamination in brewing. Water containing oxygen and soda in beer which able to allow oxygen to the kidney so it will help avoid kidney disease, and give fresh oxygen to kidney stone. You can imagine how importants it is for our body. Researches from Finland has completed their study and says that drinking beer can reduce the risk...
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...Competitive Advantage Mountain Man Beer Company has been true to its core customer base and product quality since the company started in 1925. The company focused their production on Mountain Man Lager beer that mainly attracted blue-collar, middle-to-lower income men ages 45-54. Distinctive bitter flavor and higher than average alcohol content contributed to the company’s brand equity. Mountain Man Lager had a reputation of a quality beer throughout the East Central region of the U.S. and also held the top market position among other lagers in West Virginia. “The sole brand loyalty rate for Mountain Man Lager was 53%, which was higher than the rates of competitive products”(i.e., Budweiser 42% and Bud Light 36%). Mountain Man had mainly relied on grass-roots marketing strategies using the word of mouth to spread its beer quality and taste. They valued local marketing activities that allowed them to experience personal connection with customers. By locally and independently producing quality beer, MMBC was able to create a strong brand for its Lager beer. The company was known as “West Virginia’s Beer” because of its quality, authenticity and “toughness”. B. Market Situation The decline in MMBC’s revenue was mainly due to large competition from wine and spirit drinks, an increase in the federal tax, health concerns and initiatives suggesting moderation and personal responsibility. Consumers have also shifted their tastes toward lighter beer, which had been steadily growing...
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...DESK RESEARCH TO EXAMINE THE INFLUENCE OF MARKETING AND ADVERTISING BY THE ALCOHOL INDUSTRY ON YOUNG PEOPLE’S ALCOHOL CONSUMPTION Research prepared for the World Health Organization by the Centre for Social Marketing at the University of Strathclyde Emma Cooke, Gerard Hastings and Susan Anderson March 2002 Acknowledgements For acquisition and translation of international data: Jill Bain, Marina Biniari, Liliana Carcamo and Ingrid Kajzer. For comments on the final draft: Anne Marie MacKintosh For administrative support: Kathryn Angus and Aileen Paton. CONTENTS Page No 1.0 INTRODUCTION 1 2.0 MANAGEMENT SUMMARY 2 3.0 METHODOLOGY 4 4.0 RESULTS 7 4.1 Advertising 7 4.1.1 Econometric Studies 7 4.1.2 Consumer Studies 11 4.2 Other Forms of Marketing 15 4.3 Developing and Transitional Countries 21 REFERENCES 25 1.0 INTRODUCTION At the World Health Organization Ministerial Conference on Young People and Alcohol in Stockholm (February 2001) considerable concern was expressed about the nature and pervasiveness of advertising and marketing by the alcohol industry. Explicit examples were shown of alcohol promotion exploiting the themes of sexual, sporting and lifestyle success, often in direct violation of advertising codes. Furthermore, many of the advertising examples displayed images of excessive consumption. In addition, the Conference noted...
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...Company (MMBC) is facing declining sales and in the competitive beer industry Prangel must make a quick decision of whether or not to launch a new light beer. Many believe that this decision will cause the company to lose loyal customers, but Prangel sees the potential to tap into another target market. MMBC is successful because of the beer’s strong brand loyalty, distinct customer base, effective marketing, unique taste, and higher than average alcohol content. The problem facing MMBC is that its sales are declining, due to substitute products, health concerns, tax increases, and consumer preference shift. The introduction of a light beer will have both advantages and disadvantages, for example, the product launch will diversify the product line, provide assess to a younger or female demographic. As well there is the opportunity to create a unique light beer that distinguishes itself and maintains brand image. There are many potential disadvantages of releasing the light beer, such as, diluting brand equity, decreasing shelf space for original product, it will be costly to product, it could scare off current customers and there are many strong competitors already in the market. Now one alternative could be to launch the lighter beer with a different name; however, then the cost of launching this product will increase immensely. MMBC’s Mountain Man Lager is well positioned because it serves the largest market of beer drinkers in the United States, which is white males aged 35-49...
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...parks across the United States through the company's family entertainment division, Busch Entertainment Corporation. It is headquartered in St. Louis, Missouri. AB’s objectives as a corporation are: * To increase domestic beer segment volume and per barrel profitability which, when combined with market share growth will provide the source for earnings per share growth and improvement in return on capital employed. * To provide a great tasting fresh beer to our consumers by limiting self life to 110 days, and providing a “born on date” on all our products. * To build a high-performing, diverse workforce, while providing a safe, productive and rewarding work environment, in which all our employees can benefit. * To be a good corporate citizen and good neighbor in every community where we do business and promote the responsible consumption of our products. * To preserve and protect the environment and support communities where we do business, by complying with all applicable environmental laws, regulations, and permits. Products and Services Anheuser-Busch's best known beers include brands such as Budweiser, Busch, Michelob, Bud Light, and Natural Light. The company also produces more than 100 beers, import beers, specialty beers, nonalcoholic brews, malt liquors ( such as King Cobra and Hurricane), and flavored malt beverages (e.g. the Bacardi Silver family and...
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...Excessive drinking has become one with the “college experience” for students and in hand has altered many lives. Students who are a part of the college campus drinking culture are at risk to encounter life threatening experiences due to binge drinking. Binge drinking can be defined as one consuming 4/5 drinks at least once in a two week span. After plenty of observations, I would say that this definition is consumer friendly. With that being said, I think it is safe to say that binge drinking is “normal” and is somewhat expected among college students. So I would assume since excessive drinking is so normal that one would also consider the consequences but as some of us know, that this is not always the case. Binge drinking can lead to impaired judgment and alcohol poisoning. Both can lead to life threatening experiences. Being on a campus that is known for working hard and playing hard, I have noticed that with excessive drinking comes impaired judgment. For instance I have seen students drink way too much and the more they drink, the more their motors skills decrease or their ability to make sound decisions decrease. Basic motor skills are affected due to the consumption of alcohol, especially if you are excessively drinking and this is because alcohol acts as a depressant on the central nervous system. One can lose muscle control, reaction time is impaired, and basic senses are affected as well, like vision and hearing, making someone less aware of danger and injury. That...
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...Virginia’s Beer”. In 2005, despite a 2% drop in annual sales they sold approximately 520,000 barrels and reported revenue close to $50,000,000. Mountain Man Brewing Company’s average consumer is male, above the age of 45 and typically in the middle-to-lower income bracket. With a small number of Mountain Man Brewing Company’s consumers making up a large percent of their sales, it is important for the company to appeal to that small number of consumers, and ensure they are satisfaction to their brand loyal. Competition: Recently, the state of West Virginia repealed the arcane law; allowing retail stores to sell beer at discount prices. This creates pressure on old school regional breweries, like Mountain Man Brewery Company, to try and compete with the “top-dogs” of the industry. Future of the Beer Industry: As beer sales are not largely affected by economic downturns, Sales are however, affected by change in consumer (taste) demand. Current demand: In 2005 light beer accounted for over 50% of total beer sales; putting pressure on Mountain Man Brewery to introduce a light beer line into the market ( or make some other change), in order to remain profitable. Financial Assumptions 1) Mountain Man Brewing Company will only be able to achieve .15% of the light beer industry market share. 2) Mountain Man Brewing Company will spend $1,500,000 on advertising their new light beer in their first year. 3) In association with producing a light beer, Mountain...
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