Boston Beer Company case write up

1029 words 5 pages
33 Ryan Koziol MGM 404 09/19/13

Boston Beer Company Analysis

Boston Beer Company founded in 1984, along with many other big league giants have decisions to be made in regards to the direction they wish to take their brand. Brand extension or brand stretching is a marketing strategy in which a firm marketing a product with a well- developed image uses the same brand name in a different product category. Brand extensions have been used successfully by many corporate giants, such as Arm & Hammer with the starting product being baking soda and extensions such as laundry detergent. However, extending the brand isn’t always as lucrative as it may appear. Arizona,
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It also hurts their brand awareness. In terms of price point, I don’t think it advisable to lower the price in order to appeal to a wider consumer base. BBC is known for quality, higher priced craft beers. Lowering their prices to appeal to a mass market could be detrimental to their brand equity in the long term. “Lightship” should be discontinued because it isn’t contributing to BBC in terms of brand equity, brand loyalty, brand awareness, or financially. Apart from their climax of sales in 1991 of 12,000 cases, the steady decrease in sales should be indicative of consumer’s feelings towards the “lightship” product. The “lightship” product has failed even given fair opportunity to compete in the marketplace. Therefore, I would abandon the name “Boston lightship” and try competing in the light beer market place under different promotional & packaging techniques. I think its imperative that Boston Beer Company does compete in the light beer segment of the market for several reasons. Although Sam Adams “regulars” account for a large portion of sales, these consumers also typically have a portfolio of other beers in which they indulge including light beers. This is an opportunity for Sam Adams “regulars” to still keep their brand loyalty, and experience that inner self worth without sacrificing the qualities

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