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Example: Craft Beer in the US
Transcript of Example: Craft Beer in the US
-Late 20's - Mid 40's
-'Foodies' Craft Beer Competition Craft Beer Consumers: Bargaining Power LOW of Supplier Bargaining Power of Consumer HIGH Threat of New Entry HIGH Threat of Substitute HIGH Competitive Rivalry MEDIUM -Very Regional
-Local Suppliers -Wholesalers
-Limited Time -Macro Breweries
-Wine and Spirits -Brewers help each other out
-2,751 Breweries in 2012 Market Structure f 4 P's Product: Quality, tasteful beer
convenience stores, liquor
Promotion: Word of mouth,
Price: High price beer segment Federal Tax Production Limits Production Waste Laws and Drinking Age: 21 State Tax Regulations 1.) The American craft beer industry is on a massive upward trend
2.) The US craft beer market is very open
3.) Easily promoted and accepted among target consumer (“Foodies”)
4.) Within the alcohol industry - an industry that is relatively inelastic 1) Inability to establish an effective distribution network
•“cultivation of elite networks is thus crucial to the performance and survival of microbreweries” (Swaminathan 1998, pp. 391)
2)Lack of traditional craft brewery marketing techniques
3)Foreignness could make market penetration difficult Largest Competitors: Budweiser Coors Miller *economy of scale allows for
international competition Sources: http://scholars.unh.edu/cgi/viewcontent.cgi?article=1008&context=honors&sei-redir=1&referer=http%3A%2F%2Fscholar.google.co.uk%2Fscholar%3Fhl%3Den%26q%3Dtop%2Bmicrobreweries%2Bin%2Bthe%2BUS%26btnG%3D%26as_sdt%3D1%252C5%26as_sdtp%3D#search=%22top%20microbreweries%20US%22
Beer Wars. Dir. Anat Baron. Ducks In A Row Entertainment Corporation, 2009. Film
Swaminathan, Anand, (1998), "Entry Into New Market Segments in Mature Industries: Endogenuous and Exogenous Segmentation in the U.S. Brewing Industry," Strategic Management Journal, 19, 389-404. by:
Tricia Oakes Potential Risks for Foreign Firms Entering U.S. Beer Market Rewards of Entering the Craft Beer Market: 2,751 2012: