Craft Beers

Craft Beers (Ch 10)
Brewing craft beer is both an art and a science, and Sonia Collin, a Belgian researcher, is trying to devise a give this highly perishable beer a longer shelf life. If successful, brewers can ship more beer longer distances. Hoping to boost exports of homegrown products, the Belgian government is investing $7 million for research, with $1.7 million of that allocated to Ms. Collins research. The $250,000 tasting machine in her laboratory identifies the chemical compounds in a sample of beer, which allowed researchers to recommend using organic ingredients, adjusting the oxygen and yeast levels, and reducing the time the beer spends at high temperatures in the brewing process. Although pasteurization and bottling methods allow giants like Heineken and Anheuser-Busch to export their brews, aficionados prefer the more delicate flavor of craft beers. But craft brews dont travel welltime and sunlight are its worst enemyso they are limited to local distribution. Most craft beers lose flavor in less than three months.
1.Describe the current marketing mix (4Ps) for a Craft Beer company.
2.Discuss two concepts covered in the chapter that best relate to this case and how. 
3.Describe the distribution channel needed for a craft beer to travel from Belgium to your city or town. How many channel levels will be involved? 
4.Discuss the options facing Belgian craft brewers who want to sell their products in the United States if the researchers do not discover a way to sufficiently extend the shelf life of craft beers. 

part 1:

Decision 1
Special:
Chose Facebook/Twitter pages Google AdWords, Google AdWords create higher visibility, and Facebook/Twitter utilizes the huge expansion and acceptance of social media.

Sales Force:
Adjusting sales force my increased mass merch to accommodate for expected growth.

Product:
Increased advertising budget significantly to promote the product. Went with an even spread of types of advertising, except benefits, to try and get our advertising to as many people as possible. Also increased our promotion allowance and promotion spending as a way to get people excited about the product. 


Decision 2
Special: 
Buying for whole family selected young family to engage with facebook special decision, larger percent of market, both adults and children marketed to.

Took out the alcohol to make it non-drowsy

Sales Force: 
Decreased drug stores and indirect because of decrease in overall market share. Increased Mass Merch and Grocery Stores sales force due to large increases in overall market distributions.

Product: 
Decreased MSRP by $0.04 in order to attract more customers that dont want to pay as much

We decreased the advertising budget to accommodate increases elsewhere (sales force). Switched to comparison to Besthelp because more people were comparing it to Allround than Dryup. We completely rearranged advertising due to customers receiving a mixed signal. Because it is a mature product, we put a lot of focus (40% respectively) on benefits and reminder, while decreasing focus on primary and comparison (10% respectively). 

Increased promotion to $6M from $4M to attract more customers. Decreased promotion allowance from 17% to 15%, because 17% was much higher than industry average.


Decision 3:

Special:

Publish a clear blogging policy, prohibiting the disclosure of confidential or proprietary information, and requiring a disclaimer when employees write about anything that might be construed as the views of the company. 
This will establish a clear policy that will prevent this kind of thing from happening again. Because no policy existed before, it would be unwise to fire Jason without having pre-established rules.

No reformulation.


Sales Force:
Decreased indirect sales and increased grocery to reflect where we are making the most sales

Product:
Decreased MSRP to $5.39 to keep moving towards lower price. Decreased volume discount to 25% from 30% to compensate for decreased MSRP. Increased advertising and promotion costs proportionally with left over income.

THIS ROUND WENT TERRIBLY AND WE DONT KNOW WHY. Ok it didnt go terribly, we just flatlined instead of improving.


Decision 4:

Special:
Volume discount = 10%
This will encourage high volume sales. Normal volume sales will generate 30% discount, while high volume sales will generate 40% discount.

New Product - Allright: non-drowsy allergy product. Because this is the first on the market, it will grow quickly. It also will not compete with Allround because cold and allergy have different target markets.

Sales Force:
Lowered indirect and increased mass merch and grocery store as usual to accommodate growth

Product:
Allround: kept MSRP the same since prices were increasing (many consumers historically said it was too expensive). Left advertising the same. Increased Promotion slightly with leftover money.

Allright: Entered MSRP at 3.95 to be competitive with other brands. Focused campaign on primary and benefits to spread awareness of new product, with a slight focus on comparison to the current market leader. Put a fair amount of advertising funds into promotion.

Stock and income went down due to introduction of new product, but sales skyrocketed due to the combination of the two.


Decision 5:

Special:
Did not opt to discontinue a brand already invested a lot of money and growth potential is high. 
To accommodate the poisoned families, we removed all tampered product from stores and offered compensation to the affected families. In addition, we decided to spend the extra money and modify our packaging to clearly alert the user to not take tampered goods.

Sales Force:
Decreased sales drugstores and mass merch to follow current trends and cut costs

Product:
increased price of Allright because customers were concerned at how cheap it was. Also increased comparison advertising to combat believe, decreased primary and benefits to accommodate change.

Decreased advertising and promotion spending on Allround but kept the same spending for Allright. This cut costs but kept advertising and promotions at a reasonable rate to encourage continued sales
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