Marketing Strategies / Strategic Marketing Case Study

The US Beer Industry: Adding Cheer to Beer

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Abstract:
In 2005, the $78 billion US beer industry had more than 300 breweries but was dominated by three major producers Anheuser-Busch, Miller Brewing and Adolph Coors, which together controlled 80% of the market. However, in the first half of 2005, the US beer industry saw flat consumption trends, a decline in volume and higher costs. Beer's share of the US alcoholic beverage market had declined. The three major players were also facing stiff competition from imports, a shift in consumer preference to other beverages, and from the craft beer industry which was the only growing market segment in the domestic beer industry. This case study discusses how the major players have used innovative advertising to enhance the image of the beer, create brand awareness among consumers and to differentiate their products in the beverage market.

Pedagogical Objectives:

• To discuss the dynamics of the US beer industry
• To discuss the strategies adopted by major players to make a comeback
• To understand the factors affecting the US beverage market.

Keywords : US beer industry, Brewing industry, Craft brewing industry, Types of beer, Beer industry scenario in US, Growth of light beer, Low carbohydrate beer, Mixed drink concoctions, Marketing Strategies Case Study, Wine and spirit market, Blue laws, Mexican beer, Beer advertising strategy, Beer packaging, No after taste beer, Beer making process