Introduction Hockley Valley Brewing (Hockley) has come to the conclusion that light beers are more popular than dark ones. Since its dark beers have always been its flagship product, Hockley has to decide whether to change its marketing mix to adapt to the latest market trend, or to keep steady in its current course. Their proposed solution, should they decide to follow through with it, is a new light lager called Hockley Classic.
SWOT Analysis
Strengths:
• Have a talented brewer, who is from a German family with lots of experience in brewing.
• Owners spent lots of time researching industry (Competitors, consumers, retailers).
• Packaged product in cans, which are superior and cheaper than alternatives.
• Has best-selling dark craft beer …show more content…
Dark beer typically sells more when it’s colder, so the time of year has likely skewed the results, and the premise of the owner’s quest for change. Here are some other implications given the facts of Hockley’s situation:
• Competing microbreweries have storefronts in popular locations, so if relations with retailers ever worsen, their competitors can sell through storefronts, while Hockley cannot.
• Craft beers have the highest sales growth in LCBO stores, and Hockley has a great relationship with them, so that could lead to an even stronger partnership between the two companies
• Hockley sells as much as they can produce, and Hockley Classic will take longer to produce than their other products, so they will sell a smaller amount unless they can increase their output
• Hockley Classic cans at The Beer Store’s boutique-style locations will likely be given poor in-store locations, as the owners of the stores will want to promote their own brands over others
• With access to its shareholder’s expansive newspaper network, Hockley can afford to advertise more than its competitors for a fraction of the price, and thus can have an easier time raising awareness for its new
SWOT Analysis
Strengths:
• Have a talented brewer, who is from a German family with lots of experience in brewing.
• Owners spent lots of time researching industry (Competitors, consumers, retailers).
• Packaged product in cans, which are superior and cheaper than alternatives.
• Has best-selling dark craft beer …show more content…
Dark beer typically sells more when it’s colder, so the time of year has likely skewed the results, and the premise of the owner’s quest for change. Here are some other implications given the facts of Hockley’s situation:
• Competing microbreweries have storefronts in popular locations, so if relations with retailers ever worsen, their competitors can sell through storefronts, while Hockley cannot.
• Craft beers have the highest sales growth in LCBO stores, and Hockley has a great relationship with them, so that could lead to an even stronger partnership between the two companies
• Hockley sells as much as they can produce, and Hockley Classic will take longer to produce than their other products, so they will sell a smaller amount unless they can increase their output
• Hockley Classic cans at The Beer Store’s boutique-style locations will likely be given poor in-store locations, as the owners of the stores will want to promote their own brands over others
• With access to its shareholder’s expansive newspaper network, Hockley can afford to advertise more than its competitors for a fraction of the price, and thus can have an easier time raising awareness for its new