Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.
Subject category: Marketing
Published by: NACRA - North American Case Research Association
Published in: "The Case Research Journal", 1999
Length: 20 pages
Data source: Field research

Abstract

In May 1997, the three owner-executives of Madcap Craftbrew & Bottleworks, Inc, were attempting to define the position of their product, Zebra Beer, in the brewing industry. Zebra Beer was offered in three varieties: Zebra Peach, Zebra Raspberry, and Zebra Lager. The recipes for the beer had been handed down from the great-great-great-grandmother of the owners, and establishment of the brewing company had been a family dream for generation. The beers had won a number of prestigious awards for their flavor and quality. Industry conditions, however, made it difficult to be successful as a craft brewery. Distribution was difficult to obtain, both at the distributor and the retail level. Numerous other microbrews and craftbrews were available, and competition was stiff. Industry analysts were forecasting an industry ''shake out''. Sales had not lived up to the expectations of the owners, and they were faced with a decision to continue to position their beers as expensive craftbrews that generated little volume, or to re-position them as more mainstream ''super premium'' beers that generated more volume but required significant investment in promotion at the cost of gross margin.

About

Abstract

In May 1997, the three owner-executives of Madcap Craftbrew & Bottleworks, Inc, were attempting to define the position of their product, Zebra Beer, in the brewing industry. Zebra Beer was offered in three varieties: Zebra Peach, Zebra Raspberry, and Zebra Lager. The recipes for the beer had been handed down from the great-great-great-grandmother of the owners, and establishment of the brewing company had been a family dream for generation. The beers had won a number of prestigious awards for their flavor and quality. Industry conditions, however, made it difficult to be successful as a craft brewery. Distribution was difficult to obtain, both at the distributor and the retail level. Numerous other microbrews and craftbrews were available, and competition was stiff. Industry analysts were forecasting an industry ''shake out''. Sales had not lived up to the expectations of the owners, and they were faced with a decision to continue to position their beers as expensive craftbrews that generated little volume, or to re-position them as more mainstream ''super premium'' beers that generated more volume but required significant investment in promotion at the cost of gross margin.

Related