Madcap Craftbrew and Bottleworks, Inc. needs to develop a strong brand image, increase sales and revenue and build brand loyalty.
Analysis of the case
The origins of the Zebra beer could be traced back to the Decker family, who lived in the Aslace region between Germany and France around 1857. This German family has immigrated to United States and wanted to establish brewery in the Cincinnati area. However, the lack of capital and an arrival of the prohibition era put their dreams on hold. Eventually three member of the family: Rick Sietz, Jerry Decker & Chad Seitz decided to establish as well as grow their family business. By May of 1997, the three members were still devoted to the success of their company, …show more content…
There has also been some interest in Georgia and Florida area. Therefore, the next step would be to launch the Zebra brand on the West coast, beginning with California. The company is well aware that there is a high level of demand for the Zebra beer on the West Coast since they have been receiving numerous inquiries as to the availability of the beer. Contracting with the West coast brewery for manufacturing and distribution will allow MCB to benefit from an increase in sales, brand awareness and revenue growth while trying to establish itself as a long-term competitor in the profitable beer market.
MCB should also repackage the Zebra brand beer to take advantage of the less expensive paper label. I fee that this will increase per case margin and eliminate the problems with the bottle supply coming out of Mexico. It has been estimated that MCB could save between $0.50 - $1.00 per case by using standard bottles with paper labels. Also, the distributors and retailers perceive the paper labels to be of a better quality. Therefore, MCB should take advantage of this perception and savings by changing from painted bottles to those with paper