With the high quality our product and sophisticate marketing plan, Madcap Craftbrew & Bottleworks, Inc. (MCB) has already surpassed the expectation of many of its breadth of distribution. At the same time, to ensure company’s long term viability, management at MCB is committed to increase the sales of Zebra beer to the end consumer through competitive pricing, mass media promotion, and effective distribution.
Even thought people of different age group and demographics find Zebra beer appealing, it is, however, unfeasible to target the Zebra beer to all groups. Limited resources and capital will not allow MCB to deal with the counter attacks from competitors in the mainstream. To avoid such an issue, the management has defined the primary targeted market for the Zebra beer as young professionals age 21-35, who drink premium or super premium beer. The secondary market is considered to be professionals who drink ultra-premium beer. MCB will produces three varieties of Zebra beers; Lager, Peach, and Raspberry; each in its distinctive painted bottles that clearly stand out next to other beer package. MCB will also limit the geographical region in which it will market its product. Shipping cost, lack of preservatives, legal differences among states and limited production contributed to this decision.
As the price of beer in the industry is associated with the type of beer, whether popular, premium, super premium, and ultra premium, by marketing the Zebra beer as a premium and super premium beer, the price has already been dictated by the market. Since the current market price for the premium beer is $4.29 and the super premium beer are $5.59 – $5.99, Zebra’s targeted price will be within this range.
The Term Paper on What Is Meant by Market Failure
Why do some markets fail? Market failure is said to occur when the price mechanism is unable to allocate resources efficiently. Meaning that the forces of supply and demand lead to a net welfare loss in society, that the resources were not used to their maximum capacity. When there is market failure it is down to the government to correct them. Here are five way in which the market can fail • ...
To have an effective promotional campaign, the method of communication being used should target the desired market, grab the attention of the desired audiences, and causing the audience to remember the name of the product while give them a reason to want to try the product. Radio based advertising, point-of-sale and promotional materials, distinct packaging, and incentives for distributor will help achieve the desired result.
With more brand of beer in the market than stores are able to carry, getting distribution for a new beer is problematic. MCB, however, have done very well in gaining acceptance due to its unique packaging. More importantly, management at MCB recognizes the fact that if a beer is not cold, it is not sold and is determined to obtain more facings in the refrigerator than more display.
