Redhook Study Case

Topics: Beer, Alcoholic beverage, Brewery Pages: 6 (1469 words) Published: September 15, 2013
* Competitor Analysis.
According to what usually happen in some countries (from Europe and South America), the craft brewing segment is focalized –focused– to the region where companies are placed and their influence area; the map of influence looks very “sectored”, so, for the studied case a craft brewer company placed in Seattle, for example, would have a high presence in Seattle and its region, and it would have very few / almost no consumers, for example, in California, or in the East Coast. Each region would consume its own regional products, mainly.

As soon as a craft brewer company wants to expand its boundaries nationwide for example or decides to go public, conflicts and competition with other regional companies would appear. The market is trending to be more competitive because of this reason.

In the studied example, top-tier and second-tier should not be considered as competition of Redhook. Instead, craft brewer companies are the Redhook competitors: Boston Beer is the main competitor of Redhook.

Also are competitors:

* Sierra Nevada Brewing Co
* Anchor Brewing Co.
* Pete’s Wicked
* Pyramid Ales / Hart Brewing Co
* and so on.

Top-tier and Second-tier brewers could be considered as competitors as soon as those brewer companies start invading craft beer segment with some products.

* Environmental Analysis.
Demography:
In general, beer is massively spread (considered the most popular alcoholic drink in U.S.) and it is a relative low-price drink, compared to wine and spirits.

Craft beers are more expensive than massive beers, anyway, consumers of craft beers are conscious and predisposed to pay this difference: “Drinking craft beer said something about the consumer. It said: “I support local business,” and “I care about quality,” and, ultimately, “I am unique too.””

Consumption is not dependent to age and gender; however it is more frequent in men than women.

One important feature of beverage industry is distribution. Massive beers can be found / bought almost everywhere, in every city and town, so there are no limitations about availability. Craft beers, on the other hand, are locally focused. They can rarely be found / bought outside the influence region.

Sociocultural:
Even when consumption is not dependent to age, it is not allowed to ages minor 21 (I am not sure, if this is the age in U.S.?).

The market for top-tier beer companies shows a greater concentration and increased consolidation in the industry. Massive beers can be found / bought almost everywhere, in every city and town, so there are no limitations about availability. Craft beers, on the other hand, are locally focused. They can rarely be found / bought outside the influence region. Their products have more quality and are more “exclusive”.

Technology:
Top-tier brewery facilities should be very advanced, investing a high percentage of their budgets in leading technology (machinery, fixed assets) and R&D for new products and flavors.

Craft beer facilities should be more conservative about investments in technology and the production recipes (formulas) should stay unchanged across the time. Products from craft beer companies have more quality (raw materials, ingredients) than massive beers.

Macro-economy:
The global financial crisis and U.S. recession are negative conditions for any company. Top-tier beer companies should deal also, with stable demand across several years. Second-line products were probably released (limiting quality of raw materials, packaging and so on) for facing the adverse social situation.

Consumers of craft beers are conscious about higher prices to be paid. Anyway, market share of craft beer companies grew up during the studied period, compared to top-tier beer companies.

Political / Legal:
Even when consumption is not dependent to age, it is not allowed to ages minor 21. Some states could have specific regulations and taxes affecting...
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