Case Critique: Black Fly Beverage Company Inc( Richard Ivey School of Business, University of Western Ontatio

671 Words Oct 28th, 2008 3 Pages

Black fly is enjoying a comfortable growth, their product has been well received by consumers and they have also benefited from positive feedback from the media. Now would then be a very good time to undertake an expansion as the company would take advantage of the momentum and exposure it currently has to introduce new products or features to the market. Let’s evaluate the different options available to Black fly.

First Alternative: Launching a new Flavour:
Launching a new flavour of an existing product has been the most common expansion initiative taken by companies in the food and beverage industry. It is a conservative approach as it usually does no require a significant
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The LCBO is then the best resource a company can use when it comes to product/industry feasibility as it carries out a stringent assessment of quality, price and market potential for each new product.
Therefore there is an opportunity and a market potential for this new product since the LCBO is willing to provide shelf space for the Spiked Ice, furthermore it has a provided a firm commitment for a 4 months order.

The “Spiked Ice” also has the potential “real” additional revenues since it is a different product and can also target consumers who are not typically fond of vodka coolers (i.e. consumers that prefer drinking beer but whom during the summer month would quench their thirst on a freezee with a vodka twist) Allowing the company to increase and diversify its customer base.

This initiative however does require a significant capital investment to upgrade the production facilities and the company would be facing a significant loss should the product not generate enough sales however the company has commitment from LCBO for a large quantity which will also help them boost the roll out of the new product. Also from a managerial/organizational perspective the company has proven that it is capable of successfully undertaking similar projects.

I would recommend the company to launch the “Spiked

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