Marketing Marketing

Marketing

Marketing

Background

MountainMan Beer Company (MMBC) is a beer company located in West Virginia inUnited Sates, a business owned by a family and a leadingmanufacturer of premium lager beer in Central and East America forover fifty years. It is well known for blue collared employees. Itexperienced 2% decrease revenue in 2005 as a result of the rise inpopularity among the young generation. The consequence of thisdecline and potential decline a younger MBA student Chris Prangelcame up with the idea of introducing a new brand of light beer in theattempt of the counteracting problem.

Objective

Theprincipal aim of the research is to determine how the demographicfactors of the new drinkers will affect the new product. To ascertainthe loyalty of the young generation to the existing and to find outhow each young person is willing to spend on the light beer in anattempt to know whether indeed young generation forms the bettertarget for the new brand of light beer. To investigate out how sixenvironmental factors and Porter’s five force model help Chris tocome up with a strategy to introduce a new product in MMBC

Inthis case study, I would recommend that Chris uses all the twoapproaches primary and secondary. The secondary quantitative approachis used to figure out economics trends, statistics of the younggeneration in the United States and taking useful material fromprevious marketing research like articles, encyclopedia, textbooks,and competitor’s products. The reason I strongly suggest

  • He will become more informed on the potential market size

  • Possible to know the number of customers who will be loyal to the new brand

Study

Source /type

objective

Outcome

studying the target market

Primary/quantitate

-To determine target market for the new light beer.

-The loyalty to the existing brands, demographic of the new drinkers and how much they spend on the beer in comparison with the older consumers

Effects of brand name on new products

Primary/qualitative

-Brand name to use on the new product

-Collection of conceptual data for the ideal development of product –The company must use “Premium Light by Mountain Man” for its new beer

Studying the target mainstream channel

Secondary/quantitative

-Determine target mainstreams distributing channels

– Collection of data concerning the main beer distribution channels around the country

-Increased revenue and the total income

2-A The three organizational (or team) domains

Theorganizational (or team) domains are as follow:

Organizational Domain

Coca-Cola

Super Shampoo

Market sector

-It is a worldwide company and therefore targets customers from all over the world. As a result, it has a vast market for its products.

-Belong to an Indian marketer known as Suresh Venkataraman who targets rural areas for his Super Shampoo. So the primary market for this product is rural people. The size of the market, therefore, small

Raw Materials

– The main raw materials are water, nutrients and non-nutrients sweeteners that are purchased from different companies.

-The company requires large amounts of raw materials because of its size. These raw materials are expensive.

– Utilizes locally available raw materials, cheaper labor, and low operational cost. These materials include deionized water, Mackanate CP special, Sodium Lauret-1 Sulfate, Mackester EGMs, Mackaline 426 among others.

Competition

Coca-Cola faces stiff competition from the other beverage companies such as Pepsi for the past century. Therefore the prices of Coca-Cola brands have not gone very far above that of its competitors.

Super Shampoo competitors: it faces competition from top three shampoo brands in India which include, Clinic plus a cosmetic brand from HUL, Head and Shoulder and Chick brand from Cavin Care.

2-B Six Environmental Factors

TheSix Environmental Factors are as follow:

Cultural forces

Demographic factors

Economic factors

Political factors

Natural forces

Technological factors

Company Six environmental factors factors

Coca-Cola

Super Shampoo

Demographic Factors

The primary factor considered here is age. For instance, the company decided not to advertise its brands on the children channels as they contain high levels of sugar that is harmful to kids

-Most users are adults from the southern part of India

Economic Factors

-Sometimes inflation increases production cost making the company increase its commodity price. With this there is tendency of losing customer who cannot afford their products

– The FGCM, under which Super shampoo falls is the fourth largest economic sector in India.

Political factors

-Most of the political factors affecting coca cola are those associated with the laws and regulations which company has to follow to avoid problems with authorities

-Indian government has played a key role in the production of Super Shampoo through construction of passable roads in the rural areas the main target market. Again government has introduced SEZ policies in rural areas.

Technological Factors

-With the help of the technology Coca Cola Company has entered into the other markets such as music field. For instance they have partnered with Spotify to promote the music around the globe

-The production of the products has been further enhanced by the simplification of technology where the foreign parties are involved in high technological advancements

Natural Forces

-Coca Cola Company could face problems as far as raw materials are concerned. To counteract this problem the company is looking for ways of improving their packing in the process utilizing less raw materials.

-Super Shampoo currently is not experiencing shortage of raw materials. They are readily available and cheap.

Cultural Forces

-world population is increasing every day and as it increases so does the market of the coca cola company products.

-Population has greatly increased, more young people have jobs and can afford to buy the Product.

2-CPorter`s Five Forces Model

ThePorter’s Five Forces Model is as follow:

Potential entrants (potential of mobility)

Substitutes (threats of substitute)

Suppliers( supplier power)

Buyers (buyer power)

Industry Rivalry

Coca-Cola

Super Shampoo

Threat from the potential competitors

-Coca-Cola does experience high pressure on this sector

– High pressure expected from products such as anti-dandruff and cosmetic

Buyers bargaining power

-Individual consumers do not experience pressure on coca cola

-The pressure is still high due to presence of too many choices

Substitute products threat

-Also in this sector, Coca-Cola does not encounter too much. Pressure. However, there are several soft drinks and juice in the market today that may pose threat to coca cola in future.

-High due to availability of products as Shikakai Mehendi and Ritha

Bargaining power of supplier

– Also, no pressure in this area because the suppliers of the primary raw material are not differentiated or concentrated

-It is also high due availability of so many products in the market such as Sunsilk and Pantin

Rivalry from other producers

-There is a lot of pressure in this area because Pepsi specifically offers a stiff competition.

– Stiff competition from producers such as Sunsilk and Garnier.

References

Eskandari,M. J., Miri, M., Gholami, S., &amp Nia, H. R. S. (2015). FactorsAffecting the Competitiveness of the Food Industry By Using PortersFive Forces Model Case Study in Hamadan Province, Iran.&nbspJournalof Asian Scientific Research,&nbsp5(4),185-197.

Hassan,D. N., Amos, A. A., &amp Abubakar, O. A. (2014). An evaluation ofmarketing strategies undertaken by Coca Cola Company as amultinational corporation in Nigeria.&nbspJournalof Business and Management,&nbsp3(2),5-10.

Mohanty,S. (2012). Indian Shampoo Brand Positioning: Multi DimensionalScaling Approach.&nbspInternationalJournal of Computing and corporate research,&nbsp2(5).

Sipos,E. (2013).&nbspBrewingArizona: A Century of Beer in the Grand Canyon State.University of ArizonaPress.

Tse,A. C. B. (1999). Factors affecting consumer perceptions on productsafety-The case of nondurables.&nbspJournalof International Consumer Marketing,&nbsp12(1),39-55.

Marketing Marketing

Marketing

Marketing

Background

MountainMan Beer Company (MMBC) is a beer company located in West Virginia inUnited Sates, a business owned by a family and a leadingmanufacturer of premium lager beer in Central and East America forover fifty years. It is well known for blue collared employees. Itexperienced 2% decrease revenue in 2005 as a result of the rise inpopularity among the young generation. The consequence of thisdecline and potential decline a younger MBA student Chris Prangelcame up with the idea of introducing a new brand of light beer in theattempt of the counteracting problem.

Objective

Theprincipal aim of the research is to determine how the demographicfactors of the new drinkers will affect the new product. To ascertainthe loyalty of the young generation to the existing and to find outhow each young person is willing to spend on the light beer in anattempt to know whether indeed young generation forms the bettertarget for the new brand of light beer. To investigate out how sixenvironmental factors and Porter’s five force model help Chris tocome up with a strategy to introduce a new product in MMBC

Inthis case study, I would recommend that Chris uses all the twoapproaches primary and secondary. The secondary quantitative approachis used to figure out economics trends, statistics of the younggeneration in the United States and taking useful material fromprevious marketing research like articles, encyclopedia, textbooks,and competitor’s products. The reason I strongly suggest

  • He will become more informed on the potential market size

  • Possible to know the number of customers who will be loyal to the new brand

Study

Source /type

objective

Outcome

studying the target market

Primary/quantitate

-To determine target market for the new light beer.

-The loyalty to the existing brands, demographic of the new drinkers and how much they spend on the beer in comparison with the older consumers

Effects of brand name on new products

Primary/qualitative

-Brand name to use on the new product

-Collection of conceptual data for the ideal development of product –The company must use “Premium Light by Mountain Man” for its new beer

Studying the target mainstream channel

Secondary/quantitative

-Determine target mainstreams distributing channels

– Collection of data concerning the main beer distribution channels around the country

-Increased revenue and the total income

2-A The three organizational (or team) domains

Theorganizational (or team) domains are as follow:

Organizational Domain

Coca-Cola

Super Shampoo

Market sector

-It is a worldwide company and therefore targets customers from all over the world. As a result, it has a vast market for its products.

-Belong to an Indian marketer known as Suresh Venkataraman who targets rural areas for his Super Shampoo. So the primary market for this product is rural people. The size of the market, therefore, small

Raw Materials

– The main raw materials are water, nutrients and non-nutrients sweeteners that are purchased from different companies.

-The company requires large amounts of raw materials because of its size. These raw materials are expensive.

– Utilizes locally available raw materials, cheaper labor, and low operational cost. These materials include deionized water, Mackanate CP special, Sodium Lauret-1 Sulfate, Mackester EGMs, Mackaline 426 among others.

Competition

Coca-Cola faces stiff competition from the other beverage companies such as Pepsi for the past century. Therefore the prices of Coca-Cola brands have not gone very far above that of its competitors.

Super Shampoo competitors: it faces competition from top three shampoo brands in India which include, Clinic plus a cosmetic brand from HUL, Head and Shoulder and Chick brand from Cavin Care.

2-B Six Environmental Factors

TheSix Environmental Factors are as follow:

Cultural forces

Demographic factors

Economic factors

Political factors

Natural forces

Technological factors

Company Six environmental factors factors

Coca-Cola

Super Shampoo

Demographic Factors

The primary factor considered here is age. For instance, the company decided not to advertise its brands on the children channels as they contain high levels of sugar that is harmful to kids

-Most users are adults from the southern part of India

Economic Factors

-Sometimes inflation increases production cost making the company increase its commodity price. With this there is tendency of losing customer who cannot afford their products

– The FGCM, under which Super shampoo falls is the fourth largest economic sector in India.

Political factors

-Most of the political factors affecting coca cola are those associated with the laws and regulations which company has to follow to avoid problems with authorities

-Indian government has played a key role in the production of Super Shampoo through construction of passable roads in the rural areas the main target market. Again government has introduced SEZ policies in rural areas.

Technological Factors

-With the help of the technology Coca Cola Company has entered into the other markets such as music field. For instance they have partnered with Spotify to promote the music around the globe

-The production of the products has been further enhanced by the simplification of technology where the foreign parties are involved in high technological advancements

Natural Forces

-Coca Cola Company could face problems as far as raw materials are concerned. To counteract this problem the company is looking for ways of improving their packing in the process utilizing less raw materials.

-Super Shampoo currently is not experiencing shortage of raw materials. They are readily available and cheap.

Cultural Forces

-world population is increasing every day and as it increases so does the market of the coca cola company products.

-Population has greatly increased, more young people have jobs and can afford to buy the Product.

2-CPorter`s Five Forces Model

ThePorter’s Five Forces Model is as follow:

Potential entrants (potential of mobility)

Substitutes (threats of substitute)

Suppliers( supplier power)

Buyers (buyer power)

Industry Rivalry

Coca-Cola

Super Shampoo

Threat from the potential competitors

-Coca-Cola does experience high pressure on this sector

– High pressure expected from products such as anti-dandruff and cosmetic

Buyers bargaining power

-Individual consumers do not experience pressure on coca cola

-The pressure is still high due to presence of too many choices

Substitute products threat

-Also in this sector, Coca-Cola does not encounter too much. Pressure. However, there are several soft drinks and juice in the market today that may pose threat to coca cola in future.

-High due to availability of products as Shikakai Mehendi and Ritha

Bargaining power of supplier

– Also, no pressure in this area because the suppliers of the primary raw material are not differentiated or concentrated

-It is also high due availability of so many products in the market such as Sunsilk and Pantin

Rivalry from other producers

-There is a lot of pressure in this area because Pepsi specifically offers a stiff competition.

– Stiff competition from producers such as Sunsilk and Garnier.

References

Eskandari,M. J., Miri, M., Gholami, S., &amp Nia, H. R. S. (2015). FactorsAffecting the Competitiveness of the Food Industry By Using PortersFive Forces Model Case Study in Hamadan Province, Iran.&nbspJournalof Asian Scientific Research,&nbsp5(4),185-197.

Hassan,D. N., Amos, A. A., &amp Abubakar, O. A. (2014). An evaluation ofmarketing strategies undertaken by Coca Cola Company as amultinational corporation in Nigeria.&nbspJournalof Business and Management,&nbsp3(2),5-10.

Mohanty,S. (2012). Indian Shampoo Brand Positioning: Multi DimensionalScaling Approach.&nbspInternationalJournal of Computing and corporate research,&nbsp2(5).

Sipos,E. (2013).&nbspBrewingArizona: A Century of Beer in the Grand Canyon State.University of ArizonaPress.

Tse,A. C. B. (1999). Factors affecting consumer perceptions on productsafety-The case of nondurables.&nbspJournalof International Consumer Marketing,&nbsp12(1),39-55.