Boston Beer Case
2.
Boston Beer showed a promising growth as a company with a dozen reps in 1989 to a company going public in 1995, which was considered to have made a mark in the specialty brewing business. It successfully changed the consumer preferences from cheaper beers made by large breweries to expensive specialty brewers within its niche. With their variety of crafted beer, Boston Beer captured a niche market and proved itself a number of times by winning numerous competitions for its best taste. It placed itself correctly in the market and with rightly target advertising campaigns with captured its target audience, therefor following the 4 P’s rightly. With a portfolio so strong it was only fair for investors to see a potentially successful venture …show more content…
But later it took steps to change its strategy from using other micro breweries to owning its own breweries which made its profits go down but as with any growing company it slowly made its way up. Now although it looked like it couldn’t keep up with the initial stock price but its controlled growth approach helped it have good profit during the year 2007 and ultimately showed great profits (increase in stock price to $ 109 by 2010) to those investors who kept faith and stood along by building a financially strong company. Also on a different note most investors with diversified portfolios generally make sure to invest in companies only after they see a trend in its stock …show more content…
It was this differentiation that helped it earn a special place in the market and with consumers. Its advertisements were targeted to audience who appreciated a locally grown and brewed beer. But today with many giant brewers also coming up with a line of specialty beers, Boston Beer must constantly try to differentiate itself with quality, taste etc. Competing with these brands was never Boston Beers forte because it saw itself in a different market but it must make sure that the aura of richness they created in the peoples mind is not lost. This is because consumers not only relate to the quality of the product but also its uniqueness, and Boston Beer must constantly reinvent itself in this market to make sure they are ahead of the market in this category. Therefore as long as its positioning, differentiation and segmentation strategies are strong within its niche market it will continue to be effective against the giant
Boston Beer showed a promising growth as a company with a dozen reps in 1989 to a company going public in 1995, which was considered to have made a mark in the specialty brewing business. It successfully changed the consumer preferences from cheaper beers made by large breweries to expensive specialty brewers within its niche. With their variety of crafted beer, Boston Beer captured a niche market and proved itself a number of times by winning numerous competitions for its best taste. It placed itself correctly in the market and with rightly target advertising campaigns with captured its target audience, therefor following the 4 P’s rightly. With a portfolio so strong it was only fair for investors to see a potentially successful venture …show more content…
But later it took steps to change its strategy from using other micro breweries to owning its own breweries which made its profits go down but as with any growing company it slowly made its way up. Now although it looked like it couldn’t keep up with the initial stock price but its controlled growth approach helped it have good profit during the year 2007 and ultimately showed great profits (increase in stock price to $ 109 by 2010) to those investors who kept faith and stood along by building a financially strong company. Also on a different note most investors with diversified portfolios generally make sure to invest in companies only after they see a trend in its stock …show more content…
It was this differentiation that helped it earn a special place in the market and with consumers. Its advertisements were targeted to audience who appreciated a locally grown and brewed beer. But today with many giant brewers also coming up with a line of specialty beers, Boston Beer must constantly try to differentiate itself with quality, taste etc. Competing with these brands was never Boston Beers forte because it saw itself in a different market but it must make sure that the aura of richness they created in the peoples mind is not lost. This is because consumers not only relate to the quality of the product but also its uniqueness, and Boston Beer must constantly reinvent itself in this market to make sure they are ahead of the market in this category. Therefore as long as its positioning, differentiation and segmentation strategies are strong within its niche market it will continue to be effective against the giant