Hockley Valley Brewing Co. Inc.
(7 pages of text)
During the summer of 2013, the company founder and operations manager of Hockley Valley Brewing Co. Inc., a microbrewery situated in rural Ontario, were reviewing the company’s product mix. Sales at a recent summer festival showed a strong demand for light beers, rather than the dark ales that made up the majority of Hockley’s sales. Not only did the company compete with large multinational brewing companies, but they faced stiff competition from the established and new microbreweries that were springing up all over Ontario to meet consumer demand for fresh, local and unique beers. They had to decide whether the company should launch a new lager to further penetrate the light beer market; if so, they also had to make recommendations on pricing, distribution and promotional strategies for the new brand.
This case best serves as an introduction to a marketing management module in an introductory undergraduate business course. Its objectives are the following:
- To conduct an industry and competitive analysis and a corporate size-up.
- To build on the introduction of the various components (product, placement, price, promotion) of a marketing framework.
- To calculate unit contribution and breakeven for the introduction of a new product.
- To design a marketing plan and to make a decision/recommendation about whether to go ahead with the new product.
Accommodation & Food Services
Canada, Small, 2013
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