Boston Beer

2172 WordsFeb 3, 20109 Pages
Part1 The main decision problem for Boston Beer Company is whether or not it should remain in the light beer market. This is followed by four subsidiary decision problems if the answer to main problem is yes: should BBC create a new light beer brand, and if so what positioning should it take, should they keep Lightship, and if yes, should BBC maintain or change Lightship’s positioning. The research problems are as follows: it is profitable for BBC to remain in the light beer market, what are the growth trends, what role does light beer play in the retail scene, what types of people drink light beers, what are their values, is the positioning of Lightship in line with what light beer drinkers seek, and if not it is feasible to change its…show more content…
A light product would increase sales in restaurants and bars. Furthermore, retailers are allocating more shelf space to light beer in response to its heightened popularity. More shelf space equates to more opportunities for sales. Finally, Miller projected that consumers would upgrade their preferences to high-end brands. As a quality craft beer company, BBC will definitely enjoy increased profitability should this outlook become true. BBC should re-enter the light beer market by first abolishing the Boston Lightship brand. Not only is it an economical burden (fewer than 3,000 cases in sales does not meet the 5,000 cases cut off point), but also its brand image is virtually non-existent, and its product design contrasts with the values of light beer drinkers. While the weak image can be bolstered with increased marketing efforts, a flaw in the product design would be too much to fix. Therefore, a new light brand is proposed. This new product should differ from Lightship in many aspects. Firstly, the new product should incorporate the brand Samuel Adams. This will create brand awareness with an already well respected product. Extensive marketing efforts during the introduction of the product phase should be used to help the new brand pick up speed. Additionally, incorporating the Samuel Adams image will satisfy the desire of drinkers for social status. While the

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