Executive Summary - Coors’ prominence in the beer industry has always been overshadowed by its bigger competitors like Budweiser, Miller and Molson, but new insights unearthed by this report may pave new roads for a more exciting future. The first part of our analysis describes the typical Coors drinker as an aged 25 to 44 male light beer drinker consuming almost seven bottles a week. He also works in a managerial or professional occupation earning over $30,000 annually. Coors’ three competitors also exhibit a similar consumer base with the exception of Molson being predominantly regular beer consumers. These conclusions are tested to be statistically significant. The second part of our report tests for associations. In the end …show more content…
Inversely, this describes the positive skewness in tracking the frequency of Coors consumption (Exhibit 2), as mean number of drinks consumed is 6.82 while the median is 6 and hence identifies the effects of outliers due to a few consumers with extremely high consumption. Furthermore, data also provides us with consumer information on major competitors as indicated to be Budweiser, Miller and Molson (Exhibit 5) which is consistent with the findings on brand loyalty showing those three brands to dominate the industry in the beer market (Exhibit 1). Therefore, three substitute brands may have a potential overlap with the market audience of Coors. This can be demonstrated in observing substitution effects of major competitor Budweiser as their users prefer Miller, Michelob and Coors when the Budweiser product is unavailable (Exhibit 6). Additionally, Coors’ second leading competitor Miller substitution rates show users willing to shift to Budweiser, Coors, and Michelob when the Miller brand is not offered (Exhibit 7). Finally, another major Molson substitution data depicts users moving to Samuel Adams, Heineken, Coors and Budweiser when Molson is unattainable (Exhibit 8). In general, it is observed that Coors and its competitors have an overwhelming substitution effect where beer consumers switch interchangeably between several brands, suggesting brands may have similar consumers associations. As compared to the Coors loyalty customers, Miller, Budweiser and Molson
Wholesale price per gallon for beers has been calculated on the basis of Study I and H. From Study H we learned that Coors beer is more expensive than the Miller, Miller Lite and Budweiser. From Study I we learned that Miller, Miller Lite and Budweiser is priced at US$ 3.29 per 6-pack and the somewhat more expensive beer Michelob is priced at US$ 3.68 per 6-pack.
Brownlow could decide to proceed with the research project/ feasibility study and at the same time seeking a partnership to share in the financial, management, legal and operations responsibilities.
Sales from restaurants—including Starbucks, Dunkin' Donuts, and McDonald's, which carry premium brews—grew at a compound annual rate of 15.2% from 2001 to 2006, as supermarket sales rose only marginally. Activist investor Nelson Peltz is pressuring Kraft to divest slow-growing Maxwell House. But Kraft vows to stick with the $1 billion-a-year brand. Another worry: Only 37% of 18- to 24-year-olds drink coffee, reports the National Coffee Assn., vs. 60% of those 40 to 59 and 74% of folks over 60. (Crown, 2007)
We must verify whether this focused strategy will highlight shared values of the middle-aged, blue-collar persona and the younger, point of entry target without alienating our current consumers. Since there is a dominant social element to our father-son scenario, we can conduct primary, qualitative research in the form of focus groups to verify that men and their sons can enjoy our product in the pub setting, and can develop an emotional bond amongst one another to Roaring Fork Beer. Our two strategies focus on Psychographic, Geographic and Demographic segmentation. Based on the association to blue-collar (psychographic), middle-aged males (demographic) in the Colorado area
Market researchers would like to know if customers prefer a well-known brand over a generic brand of soft drink…
Molson Coors is a thriving international brewing company that has nine Signature Brew drinks and 123 Special Brew drinks that ranges from non-alcoholic to alcoholic (Molson Coors Brewing Company, 2016b). They have multiple markets around the world which contributes to the success of the company in the brewing industry. This report analyzes Molson Coors’ internal and external environments which determines their position in the brewing industry. It also discusses strategies the company uses in order to be successful in their industry. Molson Coors shares the industry with its main competitors but has its own uniqueness that makes its business stand out. Molson Coors is a successful business that presents opportunities for economic growth.
Human resources inspect the mix and number of individuals in an establishment (CWMIF, 2012). Cobra needs to ensure that the human resource management department is a business role of the establishment, where all undertakings are examined through planning, recruiting training, education etc. (Zivkovic et al., 2014). Figure 4 shows Cobra employee numbers at 5, and Molson Coors at 17,400 at the end of 2016 (Molson Coors, 2016). This can be linked with Mintzberg managerial roles, where he states the actual conduct of managers is determined by their environment (Mulder, 2016). This can be applied both to Cobra and Molson Coors, as if they want determined mangers they need to keep them employees happy and working for the company.
2. MMBC is ignoring the shift in the consumer segment for beer companies. 21-27 year olds are spending more on liquor and most have not yet developed brand preference.
The industry is predominantly led by three companies; Coca Cola, Pepsi, and Dr. Pepper Snapple Group (also commonly referred to as RC or 7 UP by consumers). Each of these companies has strong players in multiple beverage categories. Furthermore, there is numerous other store, local, and regional owned brands depending on where you are. This creates a high number of substitute products throughout the beverage industry in all its categories. For example, in a typical carbonated soft drink aisle at Walmart you might find up to nine different brands of each beverage flavor. Interestingly, at Walmart each brand will tend to have a different price point. However, if you go to Target you may only find three brands per flavor and typically they are priced in line with one another. The high number of available substitutes often leads to a pricing war. When companies compete on price, often the consumer wins. The result of interpreting that competition is a learned behavior by consumers to be sensitive to temporary promotional pricing. Ultimately, the high number of available substitutes makes the beverage industry elastic in short bursts throughout the
The soft drink industry in the United States is a highly profitably, but competitive market. In 2000 alone, consumers on average drank 53 gallons of soft drinks per person a year. There are three major companies that hold the majority of sales in the carbonated soft drink industry in the United States. They are the Coca Cola Company with 44.1% market share, followed by The Pepsi-Cola Company with 31.4% market share, and Dr. Pepper/Seven Up, Inc. with 14.7% market share. Each company respectively has numerous brands that it sales. These top brands account for almost 73% of soft drink sales in the United States. Dr. Pepper/Seven Up, Inc. owns two of the top ten
Molson Coors ability to create loyal customers contributes to the company being one of the worlds largest brewery companies bringing in $5.6 billion a year in sales. The company employs 11,000 employees with 10 breweries in 3 different countries. Although the company only produces 40 brands of beer, two of them, Coors and Coors Light, were appointed top beer brands form the national customer loyalty study for three consecutive years. SABMiller, who acquired the Miller Brewing Company in 2002, produces over 200 beer brands and brews in over 60 countries. The company decided to specialize in premium brands of beer and were compensated in 2006 with a 19% increase in revenue. The company prides its self on emphasizng the fewer carbohydrates and better taste its line of beers has compared to its competitors. The company proves this with winning the Miller Light Taste Challeng, a point-of-sale taste test. Another competitor of Anheuser-Busch is Heineken NV. Heineken produces 170 beer brands and owns 115 breweries in 65 different countries with 65,648 employees. The company specializes in lagers, speciality beers, light beers, alcoholic-free beers, and soft drinks. Although competition with these companies is combative, Anheuser-Busch (ABI) continues to be the leader in brewery with higher revenues and net income. The company employs over 30,183 in 27 breweries compared to the industries average of 480
Adolph Coors company is a brewery with a long history. It was founded in 1873 and managed to make it through Prohibition by diversifying into near beer, malted milk, cement, and porcelain. Starting in 1958 the company brewed only one beer “Coors Banquet”. In 1978 when it introduced Coors Light, it only took 7 years for this light beer to become 40% of the company’s revenue building brand and to become the second best-selling light beer on the market.
By 1980 Anheuser-Busch, Miller Brewing, Pabst, and Stroh’s were the main four that made up nearly 80% of the market. By the mid-nineties it was down to three major players: Coors, Miller, and Anheuser-Busch. The beer industry includes packaging manufacturers, shipping companies, agriculture, and other businesses who depend on brewing. The American brewing industry employs approximately 1.66 million Americans today. There are generally three tiers of beer suppliers in the United States: domestic giants like Anheuser-Busch and Miller, importers, and craft brewers.
Throughout most of its history, the Coors Brewing Company (Coors) has been a regionalized brewer within the United States, specializing in high-quality beer through by virtue of its source water selection, stringent production standards, and cold filtered brewing approach. As the company expanded its distribution to new markets within the U.S. in attempt to gain market share, it made a strategic decision to maintain a majority of its brewing operations at its primary production facility in Golden, Colorado. This decision was based upon the desire to preserve its core production strengths through close family control. However, as the company desires to expand its market presence beyond the
The author chooses t0 write the report about Anheuser-Busch’s Bud Light because it is the best-selling beer in the world. In this report the author has outlined in detail the current status by using the SWOT and PESTLE analysis of the company Anheuser-Busch