Background
The Coors Brewing Company focuses on beer production and has adopted a globalization strategy by developing preferred tastes in its designated markets worldwide. The company’s brands include Miller Life, Coors Light, Coors Original, Keystone Brands, Blue Moon, Killian’s, Zima, and Molson, among many others. The company has operations in the United States, Canada, and the United Kingdom. The business markets itself strategically as premised on shared responsibility and integrity (Molson Coors, n.d.).
Coors Brewing Company made strategic alliances with NASCAR and the NFL, which have made the company’s brands popular among the fans of these sports events. The company aspires to be the market leader in product development and innovation, and as such has created innovative beer bottle and can designs such as those comprising can vents and frost brew liner. Coors Brewing Company merged with Molson Brewers Company to form Molson Coors Brewing Company in 2005. Subsequently, the company merged with Miller Brewers Company in 2008, thus forming MillerCoors brewing company (Molson Coors).
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The company’s main competitor is Budweiser Brewing, and the company faces a significant challenge resulting from the impacts of increasing imports in the market. Furthermore, market trends are constantly changing, and the company faces the challenge of countering such changes in its business process. The key strategies employed in achieving the company’s goals and objectives include advertising, research, and marketing. The company develops advertising strategies that are in stride with competing companies in the industry; therefore, ensuring that the company preserves and grows its market share (Molson Coors). This ensures the company’s brands are not confused with similar products. Meanwhile, research and marketing are critical activities in the identification of the demographics and consumer’s trends for the company’s brands; hence aiding in the development of products that suit the best satisfy customers’ needs and tastes.
Marketing Mix Strategies
Product
The Coors Brewing Company offers various differential brands designated for various markets. The company has used product development and diversification through strategic sourcing techniques, whereby products are developed for various markets on the basis of preferential tastes in designated local markets. This strategy has enabled the company to capture significant markets and cater for diversified needs and tastes; thus, consequently increasing the company’s customer base through addressing the various styles and tastes of their consumers (Lamb, 2012). Furthermore, Coors brewing company has developed unique products for its local and international markets taking into consideration respective local markets needs and preferences.
The product placement in local and international markets strategy has enabled the company to command a significant percentage of the market, consequently positioning itself as a market leader in the beer industry. In so doing, Coors brewing company has invested towards product development strategies thus further increasing the company’s consumer base through product differentiation from competitors. Therefore, the company offers unique products in various markets, both locally and internationally.
The product strategy is implemented through incremental sales of Coors Light, in contrast to Coors Original (Molson Coors). This is attributable to the fact that light beers are more preferred than the other brands. The Blue Moon brand is perceived as an import and has continued to grow in popularity and has become a familiar brand in bars. Additionally, the Keystone premium, light and ice are sold at lower prices when compared to the other Coors brands and are targeted at the younger consumer base that is willing to sacrifice taste and save some money.
Price
Price is a crucial factor in the company’s marketing strategy; therefore, prices are evaluated with the aim of giving customers the best prices for their products (Lamb, 2012). Particularly, Coors Brewing Company has taken the initiative to offer affordable and competitive prices for its products. This strategy has enabled the company to provide products that are affordable to the upper and lower classes in the various local and international markets. As such, the consumer base has increased leading to an increase in sales and revenue.
Coors brewing company appreciates the fact that there are various classes of consumers; therefore, different brands of beer have been developed with the aim of satisfying each class and market (Molson Coors). The company has developed various brands that offer differential prices that cater for all social-economic strata and markets. Furthermore, the company has set price levels for its products, making sure that they are competitively priced within the consumer’s range (Molson Coors). This strategy has enabled the company to increase demand for its products; while at the same time maintaining the existing customers.
The company’s price strategy is implemented through lower pricing for products, such as Coors Light, which is more dominant than Coors original; hence it is priced lower and uniformly across the market. Additionally, Coors brewing company does not include prices in designate product advertisements but reiterates upon the qualitative and taste aspect of its products (Molson Coors).
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Place
Product placement is essential for successful development of a strong consumer base (Lamb, 2012). Coors brewing company has embraced this fact through the placement of its products both in the local and international markets. The company has diversified its markets through the cultivation and development of international markets, where its products have been strategically placed to compete with respective foreign markets’ local products. This strategy has been reinforced through the creation of designated products for specific areas or socio-economic demographics.
Product placement in both local and international markets has been reinforced through the development of efficient and reliable distribution channels, which have enabled products to be delivered in the respective markets in a timely manner. This has eliminated the incidents of demand exceeding supply at any given time. Products are packaged in various packs such as six-packs, twelve-packs, twenty-four packs, and forty-ounce bottles (Molson Coors).
This strategy enables the company to service the respective markets with the optimal products that meet the consumers’ preferences, taste and affordability. The company has implemented the placement strategy through widespread marketing of Coors Light, which is readily available in all bars, convenient stores and restaurants. Moreover, product distribution is done through the engagement of independent distributors; therefore, making product deliveries prompt and timely.
Promotion
Product promotion familiarizes consumers with the company’s products (Lamb, 2012); as such, Coors brewing company uses memorable commercials and advertising strategies to ensure that customers are informed and persuaded to purchase the company’s products. Significantly, Coors brewing company sponsors popular sports initiatives and events including NASCAR, NFL, rugby and soccer among others (Molson Coors). The association of the company with such popular sports affiliates has promoted its products leading to increased beer sales during and after sports events.
Coors brewing company advocates responsible alcohol consumption, whereby it urges its consumers to drink moderately. The company also advocates greener brewing strategies aimed at environmental preservation. These strategies are asserted through the company’s initiative of developing production methods that are aimed at conserving both energy and water throughout the enterprise (Molson Coors). Coors Brewing Company advocates the safe use of its products and aspires to be increasingly environmentally responsive in the company’s operations, both locally and internationally.
The implementation of promotional strategies is realized through substantial advertising. Free merchandise, commercials, and billboards are significantly utilized to inform and educate the public with regard to the company’s products. Beers tend to have a personal selling aspect; essentially, beers sell themselves. Consumers are loyal to the company’s brands and do not require the company to persuade or push them towards consuming designate company products (Lamb, 2012). As such, sales promotion efforts are not a significant factor in this respect; however, prices remain constant.
Conclusion
Coors brewing company has targeted every market segment through the development of diversified products that cater for the various demographics, tastes and needs. The company offers sustainable and competitive prices for its products; therefore, maintaining its existing consumers and attracting new ones. Though the company does not distribute its products directly, the involvement of independent distributors makes the deployment of products more efficient and cost-effective.
The development of a comprehensive marketing mix is aimed at realizing the company’s vision of being a market leader in the brewing industry. This is achievable through investments in innovation and brand development aimed at growing the company’s market globally.
