Ale-8-One Analysis
Ale-8-One CASE ANALYSIS
Situation Analysis
[T]-National brand such as Coke and Pepsi-Chain grocers are less enthusiastic about returning | [O]-Expand distribution through independent distributors-Mandatory bottle deposit law | [W]-Bad service for supermarket account -No national brand name-Fail to keep up with trends; marketing and distribution-Limited distributions-Brand image for low income people-Informal management structure-No joint marketing effort with independent distributor-Truck drivers also work as sale representatives-Expensive-No production cost control | [S]-Has loyal customers in Kentucky-Good relationship with Elizabeth town plant-Full service vending system-Unique products |
Company’s current:
a. Financial position * Sales grow every year * Small company *
b. Marketing position * Word of mouth * Local connection * Higher price than competitors * Restrict marketing budget
c. Management critique * Conservative * Does not believe in mass advertisement * Family-owned * Overlapping duties * Incompetent
5. Determine if the Company has distinctive competencies * Kentucky brand * Returnable bottles
6. Determine if the Company has sustainable competitive advantages * Taste
Problems
Alternatives 1.
Industry Trends
-Small, family owned stores are disappearing. Shift to largr chain hypermarket
How can u improve distributions
BOD plum 1. Rec2: Don’t you want to fix your brand image that it is a drink for lower-income people first before implementing push strategy? 2. Rec1: What kind of packaging (bottles, cans, returnable bottles, etc.) will you offer to those customers further away from Winchester, since returnable bottles might be hard to manage? 3. Since 58% of the soft drink users are female. Do you think Ale-8-One should change packaging design in order to attract potential female customers? 4. Do you think manager’s competency is
Situation Analysis
[T]-National brand such as Coke and Pepsi-Chain grocers are less enthusiastic about returning | [O]-Expand distribution through independent distributors-Mandatory bottle deposit law | [W]-Bad service for supermarket account -No national brand name-Fail to keep up with trends; marketing and distribution-Limited distributions-Brand image for low income people-Informal management structure-No joint marketing effort with independent distributor-Truck drivers also work as sale representatives-Expensive-No production cost control | [S]-Has loyal customers in Kentucky-Good relationship with Elizabeth town plant-Full service vending system-Unique products |
Company’s current:
a. Financial position * Sales grow every year * Small company *
b. Marketing position * Word of mouth * Local connection * Higher price than competitors * Restrict marketing budget
c. Management critique * Conservative * Does not believe in mass advertisement * Family-owned * Overlapping duties * Incompetent
5. Determine if the Company has distinctive competencies * Kentucky brand * Returnable bottles
6. Determine if the Company has sustainable competitive advantages * Taste
Problems
Alternatives 1.
Industry Trends
-Small, family owned stores are disappearing. Shift to largr chain hypermarket
How can u improve distributions
BOD plum 1. Rec2: Don’t you want to fix your brand image that it is a drink for lower-income people first before implementing push strategy? 2. Rec1: What kind of packaging (bottles, cans, returnable bottles, etc.) will you offer to those customers further away from Winchester, since returnable bottles might be hard to manage? 3. Since 58% of the soft drink users are female. Do you think Ale-8-One should change packaging design in order to attract potential female customers? 4. Do you think manager’s competency is