Premium Essay

Market Cannibalization


Submitted By nisreen91
Words 383
Pages 2

Similar Documents

Premium Essay

Mountain Man Brewing Company’s history, Mountain Man Brewing Company is experiencing declining sales in response to changes in beer drinkers’ preferences. Mr. Prangel’s response to this problem is introducing a “light beer” form of the popular Lager. In the past six years, the “light beer” industry as increased at an annual rate of 4% while sales of traditional beer has been declining annually by 4%. Although this seems like a probable solution, there are two major problems Mr. Prangel is facing: 1.) Mountain Man’s current target market will not approve of this new beer, and 2.) bringing in a light version of the Mountain Man Lager could ruin the brand image and ultimately destroy the company. Mountain Man’s biggest target market currently, and pretty much since it started in 1925, is males ages 45-54. Most of these males are blue-collar, hardworking males. It has been known as “West Virginia’s Beer” known for its authenticity, quality and its toughness. To the younger beer drinkers, the market the light beer appeals to, view Mountain Man beer as too strong and a “working man’s” beer. Not only do the younger beer drinkers have their negative thoughts about Mountain Man developed, but the blue-collar customers account for a huge percentage of sales. The brand loyalty rate for Mountain Man Lager is 53% which is higher than any of its competitors. The “light beer” appeals to the younger generation, especially the females, and Mountain Man Lager has always appealed to the older, rugged, blue-collar male...

Words: 1206 - Pages: 5

Premium Essay


...Belgium-based InBev and U.S.-based Anheuser-Busch would results in various synergies. The first one would be global expansion and increased geographical presence. The expanded company would be geographically diversified, with leading positions in the world's top five markets - China, U.S., Russia, Brazil and Germany - and balanced exposure to developed and developing markets. The combination of Anheuser-Busch and InBev would also result in significant growth opportunities from leveraging the companies' combined brand portfolio and would have an unmatched portfolio of imports, local premiums and local core brands. This would increase marketing power. Global production and distribution network would lead to cost reduction and revenue growth. Considering the highly complementary footprint of the two businesses, such synergies would largely be driven by sharing best practices, economies of scale and rationalization of overlapping corporate functions. The deal would create the world’s largest beer maker generating $36 billion in net sales by producing 460 million hectolitres of their popular beers. It would be close to impossible to market every Inbev brand because of high costs, market preferences, cannibalization, etc., therefore Inbev should use a focused Brands strategy. With such a diversified portfolio the company should prioritize and focus its energy and money on a few Brands and invest most of its marketing money on the most profitable brands. InBev must continually...

Words: 289 - Pages: 2

Free Essay

Blue Ocean Strategy

...Blue Ocean Strategy Paper KT/421 What is Blue Ocean Strategy and its importance Blue Ocean strategy is a strategic form of marketing which ideal model is to be different in a new market place. Blue Ocean strategy goal is to create a new way of marketing instead of common forms of marketing such as competiveness. Another one of Blue Ocean strategy goal is to set the pace with unique products with profit gain in new markets. Blue Ocean believes in leaving the ways of Red Ocean which is characterized by unmorally hills of competitions. Blue Ocean strategy is imperative because most prospects in Red Ocean established market places are consistently reducing. Today’s technology has drastically improved industrial production which is now allowing suppliers to produce product at a massive amount in a short amount of time. Blue Ocean is also important in the American Market. In the American Market brands are becoming more and more similar. Therefore, customers are no longer basing their purchase decisions on brands but more so on prices. Product or Service that night be considered a Blue Ocean Strategy An acceptable example of a Blue Ocean Action is Apple’s iTunes. In 2003 Apple confused into the agenda music amplitude as a provider and benefactor of agreeable – and signaled the end of the antecedent innovation, the CD. Apple created iTunes as online account area customers could download legal, top superior songs for a actual reasonable price. ...

Words: 777 - Pages: 4

Free Essay

Chess Board

...In a seller’s market, buyers must adopt new tools and strategies to compete effectively on a new playing field. Consolidating supplier markets, rising energy prices and the growing demand for raw materials in emerging markets have fundamentally changed the purchasing framework. Suppliers are more powerful than ever, which means buyers must adjust quickly to a new playing field. A.T. Kearney developed The Purchasing Chessboard—a compilation of insights and experience from thousands of purchasing projects performed worldwide—to help procurement professionals master the tools of their trade. The Purchasing ChessboardTM Buying in a seller’s market Since the 1980s, most procurement professionals have operated in a buyer’s market. Using relatively simple tools—RFIs and RFPs, bundled products and services, and multi-year contracts—companies could negotiate from 1 to 3 percent annual price reductions from suppliers. But this “golden age” of purchasing appears to be over. The ongoing consolidation of the supplier market, rising energy prices and the increasing demand for raw materials from emerging markets means more companies are in a seller’s market. And buyers must adopt new tools and strategies to compete effectively on a new playing field (see sidebar: A New Playing Field on the next page). New Strategies in a Seller’s Market In a seller’s market, old purchasing strategies such as pitting suppliers against one another, or simply requesting...

Words: 369 - Pages: 2

Premium Essay

Aldi & Lidl

... in recent years it is evident that the strategy of these two companies has tilted in favor of the Greenfield investments. There are various factors responsible for both Aldi & Lidl in choosing Greenfield investment as a primary market entry strategy. Some of these factors are as mentioned below:  Degree of freedom: Greenfield investment involves setting up business in the manner as perceived by the investors. They are free to choose their own suppliers, channel of distribution and so this freedom allowed the two companies to change required strategy whenever required in order to adapt to different market conditions in different countries. This strategy involves few rules, regulations, licensing issues that allowed the company to cash in on the brand name, which means ability to attract new customers with relatively low costs.   Resource & efficiency: Since Germany had already been exploited, the companies¶ seeked for ways of acquiring resources at much lower rates. So by choosing this stategy , , would help them to compete in the markets with major supermarkets and hypermarkets as they could drive down the costs of products that would lead to attracting more cunsumers loyalty . This could enable them to maximize their market share. Other Factors: Political developments: the end of communism 1990¶s allowed for privatization and expanding their business in international fields had become much easier as a result,. Technological aspects: Developments...

Words: 1159 - Pages: 5

Free Essay

Impact of Internet Advertising on Consumer Buying Behaviour

...Developing a Rural Market e-hub The case study of e-Choupal experience of ITC B. Bowonder, Vinay Gupta and Amit Singh Abstract ICT has potential to make significant inroads in a traditional agrarian economy like India. Indian agro-sector has been exploiting the benefits to ICT. Innovative ICT application platforms are being created by private sector players in conjunction with local farmers. One such private initiative has been by ITC Ltd in the state of Madhya Pradesh. It has helped the farmers in many ways, such as developing of local leadership, shared ownership of the assets created in this initiative, access to the latest knowledge for the agro-sector, sustainable income levels and skill development for productivity improvement. This initiative from ITC[1] has become a benchmark today in the ICT initiatives in agro-sector. Several best practices can be learned from this initiative, namely: § ease of replicability and scalability § customization to meet the specific local needs and § organizational commitment. The success of e-choupal has heralded a new era in the Indian agro-sector. The work needs to be carried forward and replicated in the other untapped areas. Creating business channels that can create a win-win situation both business and farming community has enormous economies of scope. Once a channel is created it could be used for many products and services as shown in this case study. The main reasons for the success of the platform have been the involvement of...

Words: 7556 - Pages: 31

Premium Essay

Chapter 1

...which individuals and groups obtain what they need and want by creating and exchanging items of value. 2. [pic]A distributive system: Marketing is viewed as a process whereby in a democratic society, operating within a free market or mixed economy, there evolves a system of distribution that facilitates transactions resulting in exchange and consumption. 3. [pic]A functional area of management: Marketing is seen as a functional area of management, usually based in a particular location within the organisation, which uses a collection of techniques, for example, advertising, public relations, sales promotion and packaging to achieve specific objectives. 4. [pic]An overall business philosophy: Many firms see marketing as the keystone of their business. Marketing is viewed not as a separate function, but rather as a profit-orientated approach to business that permeates not just the marketing department but the entire business. The central mission of the organisation is seen as the satisfaction of customer requirements at a profit (or, in not-for-profit sectors, at a maximum level of efficiency or minimum level of cost). This is achieved by focusing the attention of the entire organisation on the importance of the customer and the needs of the market-place. 5. [pic]A targeting or allocation system: Marketing is perceived as the way any organisation or...

Words: 574 - Pages: 3

Premium Essay

Competitive Strategies

... Competitive Strategies: Energizer vs. Duracell By LaShonda Griffin BUS 508- Contemporary Business Dr. Laura Jones November 5, 2012 Abstract ​The U.S. offers a free market where businesses are able to have free enterprise to open and operate an ideal to provide a product or service to the public. There are many businesses that offer similar products and create competition. Consumers are able to have the options in the marketplace. Energizer and Duracell are two companies that offer similar products to consumers. Energizer has been around since 1986 and has grown into a mutli- billion dollar company within the last decade. Duracell first got started in the 1920’s from two scientists, and finally become a brand in 1964. This paper will discuss the two companies’ background, the competition between the two, and how they will thrive to compete in the market place in future. Energizer ​Energizer is formerly known as Eveready Battery Company and changes its name in the late 1980’s. By the 1990, Energizer has established their brand and had over 30 percent of the domestic market. They were trailing Duracell by 10 percent, who at that time had 40 percent of the domestic market. Energizer is the manufacturer of dry cell batteries and flashlights, with a full line production of in three major categories: alkaline, carbon zinc, miniature and rechargeable batteries. They produce more than...

Words: 965 - Pages: 4

Premium Essay

From Scotch Whisky to Chinese Sneakers: International Commodity Flows and New Trade Networks in Oshikango, Namibia by Gregor Dobler

...Session 6 Article Summary—From Scotch Whisky to Chinese Sneakers: International Commodity Flows and New Trade Networks in Oshikango, Namibia by Gregor Dobler Development of new trade networks feeding consumption have developed, influencing the way Africa integrates into the global economy. Dobler analyses different trade networks that link Oshikango, Nambibia to the world through four case studies on Scotch whisky, Brazilian furniture, Japanese used cars and Chinese sneakers commodities. Through the case studies, he exemplifies how there has been a shift from old colonial domination of trade to new manufacturing countries or trade routes, as well as the essential role of migrant entrepreneurs in these routes. The similarity underlying the different trade networks is that while the people involved in them are of different ethnicity or country of origin, they share the same profit-seeking motive and the opportunities in the international system shape them to become successful examples as facilitators of global trade. Another key concept from the article is that of global integration via consumption. As trade booms in the town of Namibia, it invariably fuels consumption in the town and Africa as a whole. Consumption choices are a means of self-expression in relation to the world and more Africans aspire towards commodities that reflect social standing and a ‘better life’. This thus creates new dependencies on the trade networks to fulfill these desires. Scotch Whisky Trade ...

Words: 971 - Pages: 4

Premium Essay

Rogers Chocolates

... With these strong margins RC can afford to use two level distribution to further create demand without the costly expense of additional store fronts. While RC’s brand recognition is strong within the Victoria area, by utilizing distribution methods other than direct retail, RC can increase brand awareness outside the local geographic area. The main detractor of increased wholesale sales is the degradation in margin due to added channels of distribution. Nevertheless, increased revenue by expanded distribution will offset decreased margins. Additionally, by first “testing the waters” through distribution in other markets, RC can better target direct markets in which to serve. Open New Storefronts in Western Canada Roger’s Chocolates should utilize one of their core-competencies of the “retail experience,” to increase penetration in different markets. While opening new stores can be...

Words: 887 - Pages: 4

Free Essay

50p Tax Hike Analysis

...50P Tax Hike Analysis Econ201 2/12/14 50P The 50P tax was a brilliant idea at one point or another. However in this current economy and the market failure this, in my opinion, this is not a piece of legislature that will help anything. The tax was made to help bring in revenue and to make the higher income people to pay their fair share. This seems to be a popular idea that the wealthier individuals aren’t paying their fair share of taxes although the wealthy pay the largest amount of taxes. Majority tax The 50P tax is no different; it raises taxes in a tough economic time and that is always a bad idea it doesn’t matter who the tax is on. When you raise taxes you actually decrease revenue and hurt the economy. To strengthen a stalling economy the “Fed” should pull back as much as possible without causing too many ripples. This would let the free market have reign and give a steady boost to the economy. The 50p plan is one that I like to call simple complex simple or a Majority tax.  £35,000 should pay tax around 20%. Income up to £150,000 you will pay tax at 40%, and any income you get above £150,000 you will pay tax at 50% which is where the 50p rate comes from. Great Britain had done away with that policy earlier, but it looks like it is back and here to stay. The total needed to handle Great Britain’s national debt is pitiful compared to America’s but they are two different countries and can’t be compared on that basis. Pros There are some good things to the 50P...

Words: 830 - Pages: 4

Premium Essay


...Global Business Strategy A firm employing a global business strategy operates in several markets around the world, but offers the same product or service with only minor changes in the local market. These businesses are typically very centralized, with the research and development and decision making taking place in the home country. Coca-Cola uses a global business strategy. It offers the same product worldwide and the firm's decision making is centered in the United States. Multidomestic Business Strategy Firms employing a multidomestic business strategy operate worldwide, but in a very different manner than global firms. Multidomestic firms are highly decentralized, with strategies and decisions being made large in the local market. For example, a firm using a multidomestic strategy may develop different products in different markets and it will usually leave the marketing in specific countries up to the local offices. Local offices tend to have a great deal of autonomy and freedom. Sponsored Links Manufacturers From China Inquire for Lower Prices in China Contact Quality Manufacturers Now! Advantages The advantage of a global strategy is that it allows for greater efficiency. Because everything is centralized with a global strategy, there is no duplication of duties. Furthermore, it is possible to produce goods in one location and to export them worldwide. The...

Words: 334 - Pages: 2

Free Essay

Ethnocentrism and Self-Reference Criterion

...the Euro-Disney’s losses in the first year. The people of Paris who are not very familiar with American cartoons, lavish expenditure on the construction which exceeded $340 million than the expectations. Expensiveness, Olympics in Barcelona and various customs of French were not taken into consideration. French government quotas on non-French movies. Ignoring cultural aspects of French are the factors of Euro Disney’s poor performance in the first year. Chinese people lack of knowledge of Disney characters. Size of the park. Not exciting or similar to Chinese amusements parks are the factors for the Disney venture’s loss in Hong Kong. Q2. These factors are foreseeable and controllable. The proper market research could avoid many of the factors. When exploring international markets the cultural aspects must be considered. For example French have their own cartoon characters, promoting them along with the existing Disney mark characters could bring the locals close to the project. Economic situation of the marketing segment should have been taken into consideration to avoid the migration of customers. There should be something exciting in such parks to draw the customers in a new launch. In Hong Kong this is the first mistake which is not addressed. Ignoring self-reference criterion and Ethnocentrism is what seems to me is the major fault. This can be rectified; it is evident from the Paris Disney improvement. Q3. Ethnocentrism is the main issue in Euro Disney development. The...

Words: 685 - Pages: 3

Premium Essay

To What Extent Is Globalisation Deemed to Be More of an Opportunity or Threat to Businesses?

...The definition of globalisation is the growth of a business or organisation on international/global scale. Globalisation is the integration of the national economies into the international economy through trade, investment, migration, capital flows and spread of technology. One reason why globalisation can be deemed to be more of an opportunity is that the one outcome of globalisation is that the business can become more cost efficient. With increased competition the business can react to the change in market conditions by becoming more competitive themselves through being more efficient. Increased efficiency can be a result of the business reducing sales and increasing output in order to achieve economies of scale. This will allow the business to produce more products allowing sales to increase if there is demand available for the products whilst reducing the average costs per products. Another way in which the business may become more efficient is that there is an increased level of innovation within the business. Large business can be differentiated from their competitors through the innovation displayed by their products and product range demonstrating the ideas of the business, also with innovation increasing the quality of the workforce will increase as they employees will try to perform to their best standards in order to become more competitive this will allow waste to decrease reducing the costs of the business which in turn will help improve profits. Another reason...

Words: 1009 - Pages: 5

Premium Essay

Sasktel - Case Study center where a professional caregiver or physician is able to monitor the client’s personal health at anytime of the day. SaskTel’s executive committee recently approved a proposal to launch LifeStat into the Canadian healthcare market place. Pat Tulloch, senior director of marketing for SaskTel, was given the task of developing a marketing plan for this new health-monitoring device. Tulloch was presented with a difficult challenge. She had to develop this plan within two weeks after the proposal was approved and then present her marketing plan it to the executive committee for review. The overall problem she is faced with is to decided on how SaskTel will manage its distribution and promotional decisions as well as conducting financial analysis to visualize the product’s profit potential. 2. Situational Analysis a. Strengths: Expertise in Communication: SaskTel has been operating for roughly 100 years specializing in the telecommunications industry, providing their customers with voice, data and dial-up high-speed Internet, web hosting, text messaging, cellular, wireless, etc. If SaskTel were to utilize their prior knowledge about telecommunications, they would be able to gain a competitive advantage in the up and coming market for telemedicine. Popularity/Familiarity with Consumers: SaskTel is already offering a wide range of telecommunication support for Saskatchewan citizens. The Saskatchewanian people have already built...

Words: 1059 - Pages: 5