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Cathy Siskind-Kelly and Rob Kelly founded Black Fly Beverage Co. to meet the growing demand for

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Cathy Siskind-Kelly and Rob Kelly founded Black Fly Beverage Co. to meet the growing demand for premium coolers in the Ontario market. They wanted to differentiate their product from other spirit coolers by using natural ingredients and chemical free sweeteners, economically friendly packaging, and a brand name that represented northern Canadians. Furthermore, the final product would be less saccharine than competitors. Black Fly established a micro-distillery in the heart of downtown London, Ontario for maximum exposure and promotional opportunities, unlike many competing manufacturers due to the higher cost of real estate. To further capitalize on this competitive advantage, Black Fly partnered with a nearby sporting and special events …show more content…

It would also give them time to define the actual demand for their product, which has not been fully established yet. This way they could develop a plan to increase labor and either/or move into a bigger production facility to increase manufacturing capabilities. Black Fly has not long had their “general listing status”, and would likely not be given leniency for failing to meet the- stringent benchmarks LCBO. By creating a new flavor that consumers dislike it could potentially hurt Black Fly’s brand image and influence possible customers to purchase their competitors’ similar products. One negative aspect of not developing a new product would be that they fail to capitalize on the opportunity of increasing market share during a time of extreme growth and high consumer interest. The second alternative would be for Black Fly to create the Spiked Ice product line. This action involves high risk, with the possibility of high reward. Due to the fact that there are no products like this on the Northern Canadian market Black Fly would potentially see very large profits. Another benefit with developing this product, as opposed to another flavor of the current product, would be that it would not cannibalize the cranberry-blueberry sales. Disadvantages include that the summer seasonality aspect mentioned in this case infers volatile sales. Furthermore, producing the Spiked Ice product would require Black Fly to move to a new production facility that would cost

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