Bierbrier Brewery Company’s SWOT Analysis

The problem statement and definition

Bierbrier Brewery is a medium sized company located within the Griffin town, south of a city center called Montreal district. The corporation was incorporated recently and it is relatively new in its start up phase. This company faces stiff competition from the already well-established companies. Bierbrier Brewery newly created brand also encounters strong competition from imported brands that are available in the market. Besides, penetrating the already saturated beer and beverage market is one of the major problems that the company has to deal with. The company has to apply new marketing communication mix in order to remain competitive and to amicably deal with high cost of production that beer manufacturers currently face.

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SWOT analysis

Bierbrier Brewery is operating in a highly lucrative and a fast growing small-scale brewery market. One of this firm’s strengths is the ability to quickly respond to the needs of the market and offer a unique brew in such a highly competitive market (Simpkins, 2008). Moreover, aggressive marketing alongside the capacity to offer quality brew enables the company to quickly position itself within the industry and claim a reasonable market share. Equipped with knowledge on local markets and low cost manufacturing expertise, the company aims at penetrating global market. Nevertheless, Bierbrier Brewery must acknowledge that it is still small and medium sized with little experience but faces stiff competition from large and well-established companies.

Strengths

  • The company depends entirely on diversified market segments. This ensures that Bierbrier Brewery does not exclusively rely on one specific market segment.
  • Aggressive direct selling and other marketing strategies with clear goals and objectives
  • Full-bodied flavor brew that have stronger taste than mainstream brands sold by two major companies namely Molson and Labatt
  • Bierbrier Brewery brand has a strong pricing strategy which puts it above mainstream brands within the industry
  • The adoption of strong marketing campaigns with clear strategies and objectives

Weaknesses

  • The company still lacks reputation compared with most marketplace competitors
  • Being a new firm in the industry, the introduction of Bierbrier Brewery values, practices as well as personnel is a serious challenge
  • The company still lacks financial capabilities compared with industrial competitors
  • Bierbrier Brewery lacks clear-cut distribution channels for its products
  • Bierbrier Brewery faces technological challenges particularly in the adoption of internet.

Opportunities

  • The estimated value of the beer industry presents a higher prospect for the growth of newly created firms such as Bierbrier Brewery. The $8 billion industrial value together with $3 billion worth of its target marketplace presents a growth prospect for this company.
  • The growth in small breweries like Bierbrier also presents a growth opportunity for this company.
  • The continued appreciation of high quality brew and the integration of the new brew into the mainstream presents growth prospects for Bierbrier Brewery

Threats

  • The greatest threat faced by Bierbrier Brewery is the competition from the well established companies in the market and importers of strong brew brands
  • The fast growth experienced in the beer market does not only threaten Bierbrier Brewery but also other medium sized firms which saturate the market through increased competition
  • The adoption of vertical integration by the already established companies so as to totally control suppliers and product line market also poses a threat to the newly established companies such as Bierbrier Brewery
  • Intolerable pricing schemes by big companies that enjoy economies of scale may also occur and pose significant threat to Bierbrier Brewery market operations

Situation analysis

Currently, Bierbrier Brewery is experiencing a marketing growth of unsurpassed nature. This has been brought about by various factors including rapid growth in the brewery sector, unique product, advanced pricing strategies and product differentiation (Simpkins, 2008). The total value of the market is estimated to be over $8 with approximated local market growth of $3 billion. This current drive and the company emphasis on direct marketing present an opportunity for Bierbrier Brewery to attain its goal of increasing sales while maintaining low-cost of production. The implementation of the modern low cost production technologies coupled with market knowledge have enabled Bierbrier Brewery to produce affordable brew tailored towards satisfying customers’ needs.

Even though there are well-established chains of manufacturers producing mainstream brands, the beverage market still needs medium-sized firms producing special brands with unique flavors that satisfy customers’ tastes. In other words, there is still market for most products that Bierbrier Brewery company offer. The company must produce high quality and affordable products in order to be above both the local and international competitors. The marketing mix that the company utilizes must also strategically position it within the market. Given the fact that Bierbrier Brewery Company will be operating in a competitive market, the marketing strategies and tools used must enhance its competitive advantage.

Various alternatives

Key to the success of any company is the market penetration and expansion strategies. The corporation ought to excute aggressive nonstop product promotion including individual advertising and publicity so as to augment its shares in the market. In essence, the company will need promotional tools that are aimed at the identified target markets. The company should use a combination of marketing tools including sales promotion, personal selling, direct marketing as well as advertising. Most important, Bierbrier Brewery should make good use of internet or e-marketing communication strategies to increase its presence in the global market.

Targeted market

According to Simpkins (2008), Bierbrier Brewery major targeted souks are the metropolitan blue-collar individuals who value excellent tipple or bevarges. Based on the number of Montreal urban centre population, the company should majorly focus on urban working class which constitutes larger portion of its market (Simpkins, 2008). The working class constitutes of the administrative personnel who want to have enjoyable time for socializing whilst drinking quality refreshing beverages. However, the potential groups of customers are those found in the suburbs of Montreal, located within Quebec districts. These customers often spare long hours socializing while appreciating first-class beer.

Evaluation

Personal selling is the key success of the company in the last one year of operation. Therefore, aggressive personal selling and direct marketing is highly required. Even though investing in marketing communication may seem risky at the moment, the benefits derived from such investments could be attained later. The company marketing communication mix should combine various tools to enhance Bierbrier Brewery brand image and increase its total market share.

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Recommendations

The company should emphasize on the production of high quality beer that differentiates it from the mainstream brews. Besides, Bierbrier Brewery should apply appropriate marketing communication mix that focuses on building brand image and increases market share. For Bierbrier Brewery to remain competitive, it must adopt effective and efficient distribution channels that will enable rapid response to customers’ placed orders and demands. This will enable Bierbrier Brewery to be available in marketplaces where competitors have not yet exploited.

Conclusion

As a small and upcoming company, Bierbrier Brewery should focus on increasing its market share and sales. In addition, the company should focus on low cost production while investing heavily in marketing. Most important, the company should use internet or e-marketing communication strategies to increase its presence in the market. The adoption of low cost technologies will enable Bierbrier Brewery to produce affordable and quality products that will increase its competitive advantage.

Reference

Simpkins, H. J. (2008). Bierbrier Brewery. Montreal, Quebec: Concordia University Press.

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