Analysis of the Situation Stakeholders Analysis: The decision to launch the Hockley Classic will impact the following stakeholders: Consumers * Offered a light craft beer of higher quality than similar imported beers * Increasing their interest in Hockley’s beer offerings Employees * Trained on new policies and procedures to produce the Hockley Classic * More hours available for the employees Owners * Opportunity to penetrate lucrative craft light lager market * Potential opportunity for Hockley to grow and make their brand more well-known Distributors * Collaboration with existing and new distributors interested in selling the Hockley Classic * Opportunity for increased revenue if product is
| Opportunities and Threats Opportunities | Threats | * Expanding flavors- 5 new flavors * Increase the sales by distributing more coupons. * More advertisement to bring back child centered focus * Increase interest in the product | * CSAB policy not to advertise to children 8 years old * Decrease of sales growth * Threat of other companies * Strong competitors in the beverage industry | Critical Issues Lack of effective advertising Needs to add more flavors to increase sales in the company Alternatives Alternative Pros Cons * Increase innovation through offering more flavors | * Creating new Hispanic inspired flavors will target new market and offer new flavors for the current customers | * New research and development costs * Advertising cost | * Increase media advertisement | * Opportunity to gain more revenue from newly market | * Increases cost | * Do Nothing | | |
This process improved profitability through the benefits of “improved outlet store performance, increased sales revenues through better inventory management and tighter risk management controls.” (Business Editors, 2001, p. 1). The second phase of changing the product line came when Levi’s opted to sell their product at Wal-Mart. Levi was looking to Wal-Mart to revive their slumping sales. But in Wal-Mart stores Levi’s current product line would be too expensive. Levi had to come up with an alternative and the Levi Strauss Signature brand was born.
Although they have a large following, their consumers enjoy the Mountain Man Lager for the manly beer it is. The Mountain Man Brewing Company needs to act intelligently and not make decisions based on impulse. Focusing on their only product and perfecting that would guarantee continued success with Mountain Man Brewing. 2. Statement of the Problem Mountain Man Brewing Company is experiencing declining sales because beer drinkers’ preferences have been changing over the years.
Pepsi use the Notional Football League players to help target customers for the diet drinks the company has. The Bold 10 is targeted for men between the ages of 25 and 34 who want to continue to drink Dr. Pepper but have fewer calories in the soft drinks. Apple is a company that keeps growing. The company has found a target audience for each of the products the company sales. Learning what customers want and need can be hard for some companies to master.
If the liquor industry were less regulated, more startups would occur. Applying Porter’s Diamond Model, a larger amount of businesses could stimulate firm rivalry and its related industries due to the framework government has implemented leading to national advantage. According to the LCBO website, the LCBO created a paltry 7 new stores in the province last year. Under privatization, the number of startups would likely increase leading to more opportunities for businesses and investment. This means a larger Ontario GDP and multiplier
So if one of the competitors brought out a new product then Britvic would have to match or beat that new product in order to keep sales up. The Macroenvironment within a company includes more important matters such as; Political and legal, economic, sociocultural and technological issues. The political issues include the legal side within the company, any health policies involving Britvic must be obeyed and the health awareness increased since the year 2000 when the demand for fruit juices rose. Also legislation on age must be taken in account as there are now new laws on T.V advertisement for children under the age of 16 which resulted in no T.V commercials for Britvic. The state of the economy also greatly affects the sales as in 2008 there was a decline in sales when the market dropped.
New brewing companies coming into Moncton and locating themselves near Pump House is a potential threat. A similar brewery so close to Pump House could cause buyers to become curious in other products, redirecting business away from Pump House. In addition if suppliers ad licensees decide they would like a higher commission of Pump House sales it would force Pump House to rethink its strategy to keep its suppliers from straying from its products. A large part of Pump House is its specialty beers. Beer is comprised of four main ingredients: malt, water, yeast, and hops.
In 1997, PepsiCo started to increase their revenues again by changing their product mix through acquisitions and divestitures. They acquired Aquafina, to compete with Coke in bottled water and to adapt to the consumer trend to eat healthier. Spun off their fast food chains Taco Bell, KFC, and Pizza Hut but secured a lifetime contract to always sell Pepsi keeping their distribution channels. They would again respond to consumer trend to eat and drink healthier by acquiring Quaker Oates in 2001, during the
4. What actions would you recommend to Carlos Fernandez to help Grupo Modelo sustain or improve its competitive position, especially its international operations, and its long-term financial performance? The characteristics of global beer industry depends on the following factors * Extremely competitive * Few large companies producing many labels * Growth rate: the industry will continuue to grow at a small rate This global beer industry continues to be extremely competitive as more big brands are entering into the market. Most large companies also have multiple private label brands to target different tastes and needs of consumers throughout the world. There are a lot of challenges that this industry is facing.