Stack Brewing: A little Brewing in the Big Nickel Harvard Case Solution & Analysis

Stack Brewing: A little Brewing in the Big Nickel Case Study Solution

The case illustrates the dilemma faced by the Stack Brewing Company, a new entrepreneurial business, that has started selling the craft beer in as mall town in Canada.Due to the quality, taste and high brand awareness of the product in the market, the company has received the government grant to expedite and expand the business operations.In such situation, the company despite of having the high brand awareness is facing the dead lock between choosing the right channel and player to expand the business. Since the business depends on distribution, the management is struck between choosing the bottled beer business or Kegs selling to the restaurants and hotels. Also, it faces the challenge of choosing the differentiation point and value proposition to develop distinct brand image in the market and also to compete with the existing computations so to sustain the operations. Lastly, the company faces the challenge of managing the overall marketing strategy, along with the communication plan and other components to position the brand in the market.

In such situation and under such challenges, it is recommended, that the company should adopt the communication strategy to develop market position and to capture additional new markets. Since the company has already strong presence on Social media, the company can channel that advantage to build a strong brand image and market position, leading to the development of sustainable operations.

Keywords:  Entrepreneurial Activities, Craft Beer, SWOT analysis.

Introduction

Stack Brewing started its operations after analyzing the growing success of crafted beer in South Ontario and Montreal.The company started its operation in 2012, by offering the crafted Beer to the two market segments namely stores through bottle beers and in restaurants and hotels through Kegs.The company entered the Sudbury’s market as the initial market for the business which have a limited number of residents and constitutes a small population of South Ontario. While entering into the market, the company utilized the social media digital medium to develop the brand awareness and also adapted the promotional strategies like discounts and free trails in the market to make a strong position and brand name in the market.

Since Stack Brewing is a new entrant in the market, it has faced certain disadvantages in terms of distribution cost and relationship with the hotels and restaurants which other existing players had developed strongly.In addition, since beer is a legacy or constitutes a part of culture in Ontario, the company faced the challenge of syncing and aligning with the taste and perception of the customers, due to strong adherence and brand loyalty of the consumer with the existing brands.

Stack Brewing A little Brewing in the Big Nickel Harvard Case Solution & Analysis

Though the company faced rigorous competition, operational hurdles and marketing plan inefficiency, however, it receives the government grant to expand and expedite its business operation.This has been due to the strong brand awareness that Stack Brewing has developed in the market. Now since the company has received the government grant and has also succeeded in penetrating into the market, the major challenge which Stack Brewing now faces is the adaption of right marketing and distribution strategy which would allow the company to flank the competition and would lead to strong brand recognition, trail and market penetration.

Problem Identification

1.      The major challenge the company faces is the selection of the right communication strategy which will allow Stack Brewing to reach out to the right customers while developing the product in the market.

2.      In addition, the company also faces the challenge of developing a right marketing plan including promotional strategies, competitive advantage, and value proposition to distinguish itself from the competitors.

3.      Lastly, since the company is new in the market, it faces the challenge of developing strong and extended distributor relationship in order to penetrate aggressively in the market. In addition, the company also faces the issue in choosing the right product to expand through the offered aid.

Opportunity

  • Since the market of Ontario has shown a positive sales margin in the initial half of the business’s initiation, the company has the opportunity to expand its business more aggressively in the market. The rising trend of crafted beer also depicts the changing behavior of the customer and shift towards the crafted beer.
  • Also, the company has strong brand awareness in the market, which offers the advantage to the company in expanding its product reach and portfolio more aggressively into the existing markets, adopting the market penetration strategy to achieve more market share....................

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