Blue moon brewing company Research

Document Type:Research Paper

Subject Area:Economics

Document 1

Stagnation of markets in industrialized countries has led to major beer firms to diversify their markets in developing countries (Garavaglia & Swinnen, 2018). As such, the global market is becoming intensely concentrated moving towards international monopoly and oligopoly. Blue moon brewing company is a subsidiary of millers Coors which brews witbier Belgian style known as blue moon Belgian white. Blue moon brewing company is one of the principal multinational brewers with diverse market globally. The platform of the corporation holds joint ventures. The company is apparently being possessed by MillerCoors. Consequently, the brewing industry has fundamentally evolved becoming worldwide beer market with awards of world beer cup champion as a massive brewing company. Apart from Belgian white variety, the corporation avails a diverse array of products such as blue moon summer ale, blue moon pumpkin ale, blue moon winter abbey ale, cocoa brown ale, Belgian table pils, white IPA and pale moon (Oliver, 2011). As such, the corporation avails essentially numerous distinctive flavors that are introduced in seasonal basis. Beer is made mainly from water, yeast, hops and malted barley and it is the global most consumed alcoholic beverage. The overall annual beer production in America is nearly 224 million hectoliters with annual generation of revenue about $100 billion based on data in 2011 (Foundation, 2016). As such, blue moon brewing company as a subsidiary of MillerCoors has been availing massive beer inside the MillerCoors field since 1995 foundation by Keith Villa. Consequently, technological advancement has been instrumental in the growth of the corporation in large-scale manufacturing, distribution, and marketing of its broad gamut of products and influenced competition in the industry.

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In addition, development in technology has transformed the industry from domestic to the multinational industry. Brief history and background. Historically, earliest brewing in Canada and United States was ale brewing, consequently, immigrants influenced the production of large beer across Canada, Mexico and United States. The invention of mechanical refrigeration aided in continuous production and pasteurization was widely adopted by brewers in nineteen century. Belly side Belgian white was originally created by Keith Villa who was a brewer in Sandlot Brewery at Coors Field Colorado. He then launched Blue moon brewing company in 1995. Since the launching, the firm has experienced significant success in addition to reinforcement on craft beer popularity. percentage of alcohol (Foundation, 2016). Furthermore, additional to the firm seasonal brews, it produced a pale moon in 2008 Blue moons brewing company brand image.

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The organization prides itself on its ideal brand image which reinforces a philosophy brewing as an art and blue moon only brews specialty high-quality beer. The corporation has focused on strategic marketing effort and structure establishing an artificially crafted awareness and marketing programs with dominant on high-quality seasonal brewing. The sale success of blue moon was enhanced by developing a non-traditional marketing communication strategy. As such, the organization strategically segments its market effectively to increase the aptitude of the brand to filtrate into easily and establish its target market. According to Keith (2011), the organization spent $24 million on advertising that year. The organization has created awareness on blue moon brand through using different execution and methods such as the use of local event campaign, charity campaign and social media campaign. According to Swinnen (2011), United States beer industry has evolved and changed in shape and sized.

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The number of brewing corporations continued to emerge and using information technology as a vital platform in diversifying their business globally. On the other hand, off-trade breweries distribution encompass distribution of blue moon through online stores, wholesalers and retail stores in which the market is projected to experience fundamental emerging and developing economies on the basic account of low to the medium purchasing power of potential consumers (Garavaglia & Swinnen, 2018). As such, Blue moon breweries company has attained its distribution through international placement, (harvest moon, honey moon, rising moon, full moon and pale moon), developing blue moons seasonal brews, bear type distribution based on region and ideal 24, 12, 40, and 6 pack. Competitive insight. Vital strategies are adopted by blue moon Breweries Company including the introduction of products with the high potential market such as blue moon white; and enhancing product innovation to give novelty of the brand as well as expanding the company’s global platform (Garavaglia & Swinnen, 2018).

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The major players encompass, Boston beer company, vagabond. Secondly, mural project campaign enhances positive attitude towards blue moon brewing company and blue moon products through philanthropy reinforcing the image and establishing chances for earned publicity. In addition, mural fosters consumer motivation through enticement and keeps the costs manageable. Thirdly, rescue team charity campaign in which the corporation provides assistance to individuals inflicted by a disaster, therefore, developing a strong brand position and image as well as diversifying the target market company's beverages (Oliver, 2011). Thus, according to Brew's association and Brewers Almanac, annual production of beer in the United States has declined. Nevertheless, whilst decreasing beer production holistically, the absolute sale of craft beer such as blue moon Belgian white has been rising for the past five years. According to Garavaglia & Swinnen (2018), the overall blue moon product franchise has acquired great power, the overall franchise increased by 7 percent in 2016 compared to 5% an in 2014.

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Currently, blue moon brewing company sales-to-retail (STRs) dropped by single digits because of blue moon seasonality production. The organization annual net income is about $1. billion Garavaglia & Swinnen (2018). Non-GAAP net income measure grew by about 10%. in America market (Garavaglia & Swinnen, 2018). Consequently, retail sales of craft rose by 10 percent reaching $23. billion which accounted for nearly 23 percent of the $107. billion of American beer market. The growth of sales today has largely been as a result of pricing rather than an increase in consumption (Garavaglia & Swinnen, 2018). Consequently, the raw material costs are relatively much lower than the packaging cost in brewing process, federal and state taxes as well as advertising costs (Keith, 2011). Blue Moon Brewery Company approximates that nearly $30 was turned as exercise tax in federal government per barrel of beer sold. Summary and conclusion International beer corporations have undergone a stable process of consolidating through acquisition and mergers focused on attractive diverse market prices (Keith, 2011).

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Therefore, a dramatic increase in beer market has been subjected to the constant analysis by the legal system in conjunction with national regulators due to absolute fear of dominance in anti-competitive practices. The blue moon brewing company’s breweries are specialty or seasonal. In addition, the competition is within micro-breweries and macro-breweries ion both craft and regular beer. Regional craft brewers initiated awareness of craft beers giving a competitive advantage to micro-breweries. Blue moon marketing structure and strategy enhance attaining of the corporation goal and objectives and dramatically increase blue moon sales (Keith, 2011). The goal of the strategy is to foster awareness of blue moons brand and establish an ultimate buzz in Philadelphia region. Nevertheless, Blue Moon Brewery Company has the following weaknesses based on SWOT analysis: Blue Moon Corporation has few brewing sites, it is also facing EEO accusation, it has been involved in a series of cases concerning the authenticity of its crafted beer and experience union workers dispute.

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Oxford: Oxford University Press. Swinnen, J. F. M. Briski, D.  Hit & Run Blog, 2016-6. Foundation, 2016) (Garavaglia & Swinnen, 2018).

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