Pabst Competition
Now Viewing Pabst's competition in: Breweries (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
What types of marketing are most effective for the company? - Brewery marketing addresses the consumer and includes TV, radio, print, and billboard advertisements, and sponsorships of sports and music events.
What advantages or challenges does the company have getting and keeping distributors? - Breweries compete for wholesaler attention, time, and sales efforts. Larger breweries contractually keep some distributors from carrying competing brands.
How important are above-premium, premium, and value brands to the company’s portfolio? - The industry generally prices according to three main categories: above-premium (also called “super-premium”); premium; and value (“budget”). Companies typically have multiple price points in their product portfolios.
What are the most significant sources of competition? - Competition comes from national, regional, and local brands; wine, especially lower priced; and non-alcoholic drinks.
How frequently does the company offer discounts to gain sales? - Competition can lead brewers to offer discounts from their standard (frontline) prices.
What consumer groups does the company target with its marketing? - Males 20 to 44 are the heaviest consumers of beer, but consumption by women is increasing.
Is the company targeting particular ethnic groups? - Some US brewers are using bilingual packaging to appeal to large ethnic groups domestically.
What community relations programs does the company invest in? - Breweries gain PR benefits with “responsible drinking” and other campaigns promoting social good.
Competitive Landscape
The major driver of demand is consumer leisure activity. The profitability of individual companies depends on marketing, distribution, and operational efficiency. Large companies have advantages in marketing and sales, production economies of scale, and influence with distributors. Small companies can compete effectively by developing specialty products and serving a local or regional market. Average annual revenue per worker is $625,000, but is typically around $140,000 in small companies.
Business Challenges
CRITICAL ISSUES
Dependence on Changing Consumer Demand - Brewery production depends on consumer demand, which reflects current tastes, social trends, and demographic shifts. Domestic demand for US beer has been declining for a decade, decreasing US brewery industry revenue 30 percent. Brewery production fell 10 percent over the same period and per capita consumption was flat. Growth in the population of US males between 20 and 44, the heaviest consumers of beer, is projected to be flat from 2000 to 2010.
Competition from Imports - Imports constitute a growing share of the market for brewery products. US imports of malt and beer more than doubled in a decade and grew over 30 percent in only five years. Imports now account for 15 percent of the national market for malt and beer, up from 8 percent a decade ago.
Industries Where Pabst Competes
- Beverages
- Alcoholic Beverages
- Brewers(primary)
- Alcoholic Beverages
