Boston Beer Company Case
BOSTON BEER COMPANY: LIGHT BEER DECISION
_Background Information_: The Boston Beer Company, which was founded in 1984, had a very diversified thriving product line which entailed about twenty different kinds of beers. Their product was available in over nineteen various countries and used a network of around four hundred distributors. Revenues grew from 21 million dollars to 210 million dollars from inception to 1997.
_Problem and Opportunity Identification_: As a result of the company's product line and its variety, the company encountered issues sustaining and upholding of their products such as Lightship - which has been withering in recent years and which doesn't have the volume like other products to sustain distribution. Since the light beer business that Lightship belonged to was one that was rapidly growing, the Boston Beer Company felt the need to investigate its products disappointment. The research to do so took place in different forms such as competition, market, and financial analyses, customer surveys, and finally deep emotional analysis using the ZMET technique.
_Alternatives_: One option the research team is considering is introducing a new light beer into their product line. It is understandable that since the high-priced light beer industry is one of the biggest and rapidly growing field in the beer industry, the Boston Beer Company wants to occupy and take advantage of this field to further enhance its name and maintain its market share and its standing. However, there are issues in terms of positioning and marketing of this product. The product needs to be communicated as a light, rich, fun beer and targeted at a different audience that entails women. In addition to the fact that this option might cause conflict in terms of the brand image being a macho rough beer brewer, using it doesn't solve the problem for Lightship if Lightship is going to be kept in the market offerings.
Another option the research team considered was repositioning
_Background Information_: The Boston Beer Company, which was founded in 1984, had a very diversified thriving product line which entailed about twenty different kinds of beers. Their product was available in over nineteen various countries and used a network of around four hundred distributors. Revenues grew from 21 million dollars to 210 million dollars from inception to 1997.
_Problem and Opportunity Identification_: As a result of the company's product line and its variety, the company encountered issues sustaining and upholding of their products such as Lightship - which has been withering in recent years and which doesn't have the volume like other products to sustain distribution. Since the light beer business that Lightship belonged to was one that was rapidly growing, the Boston Beer Company felt the need to investigate its products disappointment. The research to do so took place in different forms such as competition, market, and financial analyses, customer surveys, and finally deep emotional analysis using the ZMET technique.
_Alternatives_: One option the research team is considering is introducing a new light beer into their product line. It is understandable that since the high-priced light beer industry is one of the biggest and rapidly growing field in the beer industry, the Boston Beer Company wants to occupy and take advantage of this field to further enhance its name and maintain its market share and its standing. However, there are issues in terms of positioning and marketing of this product. The product needs to be communicated as a light, rich, fun beer and targeted at a different audience that entails women. In addition to the fact that this option might cause conflict in terms of the brand image being a macho rough beer brewer, using it doesn't solve the problem for Lightship if Lightship is going to be kept in the market offerings.
Another option the research team considered was repositioning