Ale-8-One Analysis

Topics: Marketing, Vending machine, Term Pages: 3 (593 words) Published: September 17, 2012
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...
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