Case Teaching Package
A case teaching package is available for this case. It includes strategies for case presentation, key concepts, solutions to the assignment questions in the case, and suggestions for the most effective ways to work this case into your course.
Length
This case is
38 pages in length and its case teaching package is
14 pages.
Abstract
The structure and conduct of those competing in the beer industry is reviewed while tracing the cost structures and competitive pressures placed on those associated with this global industry. Long-term demographic trends, society's changing attitudes towards alcoholic beverages and lifestyle changes are presented as well as the drinking patterns in the world's overseas markets. Particular emphasis is placed on the rise of the microbrewing segment and how the "Big Beers" are responding to the opportunities provided by this new niche.
Linkages to Textbooks or Journal Articles/Fit Within a Course
This case is a background industry note for cases dealing with the beer industry and especially for the Plank Road Brewery's Iguana Beer cases and the Marketing T. Paul's T-Towne Beer case. This case and the cases for which it was written can be used in advanced level marketing management courses and the graduate-level introductory marketing course.
Study Questions
Given the nature of the beer brewing process, to what degree can a firm obtain product differentiation or a technological advantage over its competition?
Many brewers speak of their beer's &qout;premium quality," good taste or freshness. To what degree are these attributes under the control of the particular brewer making these claims? What can be done to insure that a brewer's beer is good tasting and fresh?
The beer market possesses a number of flavor segments. What product attributes seem to separate one flavor segment from the other? Which segments are the most important ones in which to compete and which attributes seem to separate one flavor segment from the other? Which segments are the most important ones in which to compete and which ones are competitively less attractive? Are these segments distinct and to what degree are particular brands interchangeable with each other?
What changes have occurred in the beer industry's basic economic structure? What do you think the industry's structure will be like ten years from now?
The need for market share has historically been a driving force in the beer industry. To what degree do you believe marketshare is still extremely important in this industry?
What factors have caused the beer industry's microbrewer segment to grow at such a rapid rate? Which of those factors can and cannot be duplicated or captured by the industry's macrobrewers? In competing against the microbrewers, what particular advantages does a macrobrewer have?
How important is product promotion in the selling of beer in America? What are the elements in a brewer's sales promotion mix and which ones appear to be the most important?
Determine at which stage the beer industry is in its product and/or industry life-cycle. Are there any segments of this industry which are in different stages of their life-cycles? If so, what marketing strategy and tactics are associated with these different cycles? Assuming you are the brand manager of Anheuser-Busch's Elk Mountain Amber Ale and Elk Mountain Amber Lager, what marketing strategy recommendations would you make?
What opportunities and threats face those who compete in the beer industry? In your opinion would this be particularly attractive industry to enter?
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