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Madcap Craftbrew Case Analysis

833 words - 4 pages

IssuesIn 1997 the co-owners of Madcap Craftbrew and Bottleworks, Inc rolled out three flavors of a craftbrew from a handed down family recipe. The company spent $250,000 in development and sold 6,000 cases as an introduction to Heidelberg Distributing Co. The beers won prestigious awards for the flavor and quality of beer. However, industry conditions would prove success difficult as a craft brewery. With the competition with microbrews and craftbrews available, distribution was difficult to obtain at both the distributor and the retail level. Sales were not as expected and forced the owners to consider their products' positioning. Currently the product position was that of an expensive ...view middle of the document...

The income from the beer sales was reinvested in its growth.(Understanding Madcap's product development, production, and the pricing strategy to compete competitively in the craft brewery market and although the successful launch and stellar awards after the launch will have a significant impact on the company and the positioning of the company's product.AlternativesStrategic options for Madcap with respect to improving sales of the Zebra brand would have been in the test market and the target of women beer drinkers. Women may not be the largest percentage of beer drinkers in the US, but could possibly have a significant impact on the craftbrews and premium beers. In the initial testing stages, women may not have been considered.Another alternative would have been marketing more toward creating a loyal following. Current marketing techniques in radio advertising proved that should the advertising not remain consistent, the brand would appear to be more of a fad and consumers will enjoy the beer for an undetermined short period of time and be on to the next of the many competitors in the craft brewery business. Madcap could have considered other forms of media, specifically print, in locally and nationally run publications.Finally, distribution was successful at the start of the launch of the Zebra brand. It is possible that some negotiations could have been made with Heidelberg Distributions upon the sale of the 6,000 cases. It may have been possible to take the...

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