Monday, May 20, 2019
Madcap CraftBrew and Bottleworks Company Case Analysis
As this lineament study begins, Madcap Craftbrew & Bottleworks, Inc. finds itself at the crossroads of having to make critical strategic marketing and promotional decisions regarding its Zebra beer brand. In this paper, the situation will be evaluated in-depth, and tends of action will be chosen based on the synopsis of the available dataProblem StatementThe problem facing Madcap at the present term is the fact that despite positive consumer feedback and strong results in test markets, the Zebra brand is not as productive as it could/should be in order to generate sufficient revenues (Rosenthal & Twells, 1999).Primary Critical IssuesMadcap has to bring off with several primary critical issues, some of which be inherent in the craft brewing industry, as well as some that are unique to Madcap itself. In summary, these issues are as follows (Rosenthal & Twells, 1999) Microbrew drinkers are typically not brand loyal, making the development of a strong core market effortfulOnly a small percentage of beer drinkers are microbrew drinkersBeverage distributers usually do not handle to stock large quantities of craft/microbrews in their retail locations, which results in less product available for sale, which keeps vividness sales lowThe Zebra brand is not widely recognized, nor does a large marketing budget liveCurrent packaging characteristics (the painted bottle, imported from Mexico) have been causing production delays and prompting concerns from retailers who place a higher value on beers with paper labels on the bottlesZebra is priced lower than competitors such as Sam Adams, placing it in a lower perceived value category than competitors brewsEvaluation of AlternativesGiven the challenges posed by the microbrew industry itself, as well as the practical options available to Madcap, the following alternatives, and the viability of each, are as followsEmploy the unexampled marketing strategy that has been successful in Bloomington test marketing efforts , which includes lower product pricing, more distributor incentives, and more advertising expendituresContinue with the current positioning and marketing strategyProposed Course of ActionThe course of action that Madcap should take in this situation, from a strictly strategic point of view, is the employment of the Bloomington plan, with the excommunication of price adjustments. This choice was made for several key reasons first, the unconventional and volatile nature of the microbrew industry demands transport thinking and creative marketing second, price point should be evaluated to avoid pricing the product in such a way as to lower its perceived value in the eye of the consumer. These strategies fight back the potential to achieve the desired goals of Madcap in the short and long term.References(Rosenthal & Twells, 1999) (Rosenthal D W Twells R W 1999 Madcap Braftbrew & Bottleworks Inc Zebra Beer-Its Not All Black and White)Rosenthal, D. W., & Twells, R. W. (1999). Madcap Cra ftbrew & Bottleworks Inc Zebra Beer-Its Not All Black and White. Richard T. granger School of Business Administration, North American Case Research Association.
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