G. Heileman Brewing Company
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G. Heileman Brewing Company faces the problem of being among the top five brewers in the United States, but having a market share which is well below the top three. At this point, companies in this segment can gain market share by drawing existing customers away from competing brands within the same product category, or by offering new products which bring new customers to the company's products, and possibly into the product as a whole. Thus companies introduced 'dry' and 'light' beers in order to appeal to consumers who did not otherwise drink beer, or who did not consume as much as the manufacturers desired.This was the attraction to introducing PowerMaster. Heileman already markets Colt 45, a malt liquor which contains significantly higher alcohol per volume than traditional beer. However, Heileman perceived a market for a beer-like product which had an even higher alcohol content, and thus created PowerMaster as a way to gain market share. Certainly market research indicated that consumers of Colt 45 might well be drawn to the increased alcohol of PowerMaster. It should be noted that PowerMaster contains less alcohol than a serving of wine, and considerably less alcohol than a serving of "hard" liquor. Heileman introduced PowerMaster in order to gain market share and attract customers to its brand. It is possible that consumers will simply switch from Heileman's current malt liquor offering (Colt 45) to PowerMaster, but the company may also draw customers fro
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rMaster both in the name and on the label. This could lead observers to conclude that Heileman was taking unfair advantage of the legal environment in order to capture additional market share, and that the market share it sought to capture was a particularly vulnerable minority.
The activists who take exception to Heileman's marketing strategy and the company itself must come to terms with the fact that the company develops and markets alcoholic beverages. The company obviously has accepted this as its mission and seeks to maximize its profits by providing products to consumers which meet their demand for such beverages. It is in the company's best interest to increase demand wherever possible, and to market its products to the various market segments where it is likely to receive the greatest return on its investment.
Activists, on the other hand, are concerned that the relatively low cost of malt liquor and the fact that Heileman is targeting the African-American community in particular will result in an erosion of that community. It is the position of the activists that PowerMaster will harm community members, and will do so without causing similar harm to other communities because Heileman chooses not to market to thos
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Some common words found in the essay are:
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Approximate Word count = 1250
Approximate Pages = 5 (250 words per page)
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