Case report of Aviary Brewery Inc.

Topics: Marketing, Alcoholic beverage, Beer Pages: 7 (1566 words) Published: February 6, 2014


Marketing Case Report
And
Marketing Plan

MARKETING CASE REPORT
OF
AVIARY BREWERY INC.

I. Time Context
When E.O #273 and RA 6956 was implemented, the hike of tax increased rapidly from June to July 2011 (P1.30 – P2.30) and Increased again in May 2012 (P2.30 – P2.60).

II. Point of View
As the CEO of the Company, I can see that the company was greatly affected by the implementation of the increased of tax of alcoholic drinks, which has the largest market share of the company and is the leading product of the company. This problem can affect many aspect of the business.

III. Control Problem
ABI Inc; as one of the leading manufacturer/distributors of alcoholic drinks would produce massive production of alcoholic drinks that would result to increase of its tax payable. And this tax will be passed to the consumers that will effect to the increase of price of the product.

IV. Secondary or Sub Problems
The company experienced severe cost pressure; prices of the raw materials have escalated at extremely rapid rates. They lack promotional strategies; they focus only in below-the-line promotion, and the supplies of their ingredients are imported from different countries that will higher their cost of production.

V. Objectives
a.i. To lessen the cost of production.
a.ii. To promote more the above-the-line campaign of the company. a.iii. Invite more investors to invest in the company

VI. Areas of Consideration

Strengths

Imported ingredients
Leading manufacturer/distributor of alcoholic beverages
Has the largest market share of liquor market
Quality of the product

Weaknesses

Low promotional strategies
High production cost
Government laws
High prices of raw materials
High tax rates
Expensive supplies of ingredients
High prices of alcoholic beverages

Opportunities

Setting budget plan for above-the-line promotion
Sustain large market share
Sustain leading manufacturer/distributor

Threats

Companies profitability because of the increasing of tax
Competitors
Decreased production of alcoholic drinks

.
VII. Alternative Course of Action

Plan
Advantages
Disadvantages

Set budget for above the line promotion

widespread of information
Increase in Sales and Demands

Costly
Information to competitors
Canvass a Cheaper Supplier of ingredients

Low cost
Location of new supplier
Building new relationship between the suppliers
The quality/ taste of the product can be changed

Bring product internationally
Location of suppliers are near
Can increase the sales
Expansion
Globally competitive
Costly
Big competitors

VIII. Decision Criteria
Set budget for above the line promotion
It can increase the demand and sales of the product
Broad range of audience
Inform audience
Attract potential customer/ consumers
Making the leading product be familiar to public

Canvass a Cheaper Supplier of ingredients
It will lessen the expense of production

Invite more investors
Inviting more investors will increase the cash of the company that can be used as an asset to the business. IX. Recommendation
The company is greatly affected by the law that was implemented by the government in 2011. This affects the production of the company, profitability, and many other factors. This is the main problem that the company encountered. And this issue can hardly be change because it is in the law and should never be violated because it can make bigger problem of the company. One way to overcoming this problem is to increase their sales. And to increase the sales, we recommend that the company should set budget for promotional strategy. One promotional strategy is advertising where there is a broad audience that can be informed to the product, it may be costly but it will have a great influence on sales and demand depending on how the advertisement is being delivered. This will help them promote their leading product, or can...
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