Introduction
Hammer Wines is a company run by Marilyn and Colin Hammer. The company currently has insufficient space for the new ordered stock due to the overstock of DUNKLES, DURST, FASS and HELLES beers in the warehouse. Clearing slow moving stocking and increase warehouse sales turnover is critical. Therefore, a trial has been conducted to consider the possibility of online communication with customers to improve sales.
This report is being produced in order to analyze the sales figure of Hammer Wines to examine the efficiency and effectiveness of online communication in comparison to the traditional posting surface mail. It is being compiled for the purpose of elaborating the deeper insight to the marketing strategies. Furthermore, possible recommendations to boost Hammer Wines sales performance have been provided.
Marketing Strategies
Hammer Wines normally sent brochure to existing customers through traditional surface mail. However, they realized the time consumed on developing and distributing the brochure is costly. For this reason, a trial of moving to online communication has been run. The factors for consideration, which have been considered, have been discussed below.
• Comparison Before and After Campaign
As can be seen in Figure 1.1, traditional brochure mail-outs and e-mail strategy have successful in generating beer sales. It shows that sales of all products have risen over the campaign period, which is clearly a positive result. HELLES beer has sold the most cartons during the campaign with increase sales by 489%, followed by DUNKLES with 181%. Overall, marketing strategy on using online communication has quadrupled the sales, whereas campaign in traditional way has increased the amount of quantity sold by near...
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...itional brochure mail-outs and the e-mail strategy, have successful in generating the sales of DUNKLES, DURST, FASS and HELLES beers. Undoubtedly, online communication through e-mail has the greatest impact on sales. Therefore, better financial performance can be achieved if Hammer Wines focuses on one marketing strategy in the future, which is online communication.
Recommendations
From the sales data prepared by Hammer Wines based on the sales of beers during the campaign week, these recommendations can help to improve the company’s financial performance and profitability:
1. Focus on one marketing strategy only that is through online communication.
2. Execute promotion regularly as it is proven to have huge impact on sales.
3. Maintain updated customer list in order to connect with customers, inform newest updates about the company and also to avoid bounce e-mail.
The beer brands were classified as popular, premium, super premium, and ultra-premium. The distinguishing factor determining if brands belonged to different classes was whether beer was produced by four largest companies (Anheuser-...
The scope of this report is an evaluation of the profitability of each brand. The report does not intend to make recommendations of how invest and promote new products and how to increase brewing capacity.
The United States of America has a population of 260 million people. This is a big market with substantial purchasing power. As of 1997, Breckenridge Brewery has only expanded eastwards and the west side of the country is relatively untouched. According to Exhibit 2 in the case study, there were only distributors in 32 states and that leaves a potential to sell to the other 19 states as w...
In recent years Anheuser-Busch has faced increased competition in the U.S. market. As a result of this increased competition the company has been looking overseas for growth and increased profits. The American market is a relatively stagnant market for Anheuser-Busch. There is very little growth in America and 94% of Anheuser-Busch’s sales occur inside America (Anheuser-Busch, 1999). Anheuser-Busch also has the resources to compete with any European brew in the European market. In many countries in Europe, Anheuser-Busch has begun to gain some market share and turn some profits. The Amer...
The customer support and customer service functions are more than departments; they are part of an essential strategy for growing your business. In the modern business climate, customers expect answers to their questions immediately. When the right information is available anytime, from anywhere in the world, customers are more likely to have a positive experience, thus customer loyalty will be increased. It is a known fact that the cost to obtain a customer is ten times higher than to maintain and keep existing customers. (Gouran, Dennis, W.E. Wiethoff, & J.A. Doelger. (1994). Mastering communication. 2nd ed. Boston: Allyn and Bacon.) Not in Reference Pg.
The company has self organizing team and use groupware, emails and blogs to communicate with the customers.
The global wine industry is being influenced by numerous factors, specifically consumer demand and changes in the way wine is produced and sold (Old vs. New). In regards, consumers and producers have shifted away from the traditions of the Old World and have transitioned to accept the innovating techniques the New World has brought to the wine industry, thus the challenge the new world is presenting upon the old.
Compared to the industry as a whole, Mondavi is not responding to the changing marketplace and demands. While there has been some growth in the ultra and luxury premium market segments, the explosion in the last 15 years had been in the popular premium ($3-7 per bottle) and super-premium ($7-14) sector. Mondavi’s own Woodbridge offering is responsible for 76% of its case volume and 57% of its revenue as of 2001, but seemingly exists in isolation amidst all the high-end offerings from the company. Competitors that have established themselves in jug wine, beer, and other spirits are taking advantage of their sales volume and migrating upward. While E&J Gallo, Constellation, and the beer producers may not have the reputation for quality and craft that RMW possesses, their substantial financial weight has allowed them to develop or purchase brands that could compete in the higher altitudes and price segments. Meanwhile, competitors with similar histories in premium winemaking are taking advantage of lower production costs to horizontally integrate, acquire land, and build new wineries in different countries, as Kendall Jackson has done with the Villa Arceno (Italy) and Yangarra Park (Australia) wines.
The craft beer market is primarily composed of the middle class beer consumer that appreciates a fine tasting brew and is willing to pay a little more for it. Craft beer consumers are typically male, white and in the 25-45 age group (Clarke, 2012; Pierre, 2013). Further demographic data suggests that the craft beer consumer is also likely to be college educated and to earn an income of $50,000 or more per year (Clarke, 2012). 80% of craft beer is drunk by white consumers, more than half of which are in the 21 -44 age group (Clarke, 2012; Pierre, 2013). While it would be understandable to concentrate marketing efforts on the white, male, and middle class consumer, there is definitely potential to expand into other demographics. Marketing professionals could expand the craft beer market by appealing to the Latino beer consumer. Many major corporations such as Nissan, McDonald’s, and Wal-Mart are marketing to the Latino market as they can see that the profit potential is vast (Rigik, 2012). I...
In the short space of a generation, the American wine industry has maintained the tradition of boldness, innovation, creativeness, and success. American wineries that have been successful cannot rest on those successes, however. The industry and its competitive forces continue to change and members of the current industry will survive only if they are able to anticipate and deal with these changes. While there are significant threats to the American wine industry, there is also a large domestic and worldwide market of potential consumers who have yet to enjoy the fine taste of America’s wines.
Lamb, C. W., Hair, J. F., McDaniel, C. D., & Wardlow, D. L. (2009). Essentials of marketing (6th ed.). Cincinnati, Ohio: South-Western College Pub..
Additionally, consumers in the United States have begun an era of drinking more beer than wine or hard alcohol. As more beer is being consumed, sales are sky rocketing for not only local beers such as Budweiser, Lagunitas, or Heineken; but imported beers have begun to make popular appearances on shelves in stores more often. With this drastic change in the United States, international brewing companies in various countries will experience amplified demand for not only international products but a greater need for exported ingredients as well. Moreover, in the next few years the demand for imported beer will increase dramatically.
Deutsche Brauerei has been a family owned and operated corporation for 12 generations, which has created a high level of focus and control. Each generation has kept the management and operations processes relatively simple, centered on brewing practices and quality. Deutsche Brauerei’s rapid growth in recent years can be attributed to several factors. First and foremost, the company’s success is centered on the product itself, which has won numerous quality awards and is quite popular in Germany. Another contributing factor to the recent growth may have been a bit inadvertent. The purchase of new equipment in 1994, which was necessary as a result of a fire that destroyed the old equipment, allowed the company to increase brewing capacity and efficiency. Finally, Deutsche Brauerei’s decision to enter the Ukranian market in 1998 contributed significantly to the rapid growth. The collapse of the U.S.S.R. brought market reforms, and Deutsche Brauerei jumped on the opportunity to enter the fragmented beer industry, capture the large population and capitalize on the prime location in Europe. Lukas Schweitzer was savvy enough to hire local expert Oleg Pinchuk away from a competitor as the marketing manager, and Oleg was instrumental in building the business in Ukraine by securing accounts and implementing the field warehousing to support distributors. Deutsche’s beer was hugely popular in the Ukraine almost immediately, and volume sales more than offset the depreciation of the Ukrainian currency. Sales in Ukraine accounted for 28% of Deutsche’s total sales, and skyrocketed from 4,262 euros in 1998 to 25,847 euros in 2001.
Within the wine industry, it is often thought of as having a low threat of entrants based on a historical understanding. In the Old World, the use of technology and automation is avoided as well as the use of strategic advertising and promotion methods. In addition, a highly regulated production system is implemented for certain inputs of the industry, which introduced a low threat of new entrants. However, the threat has risen in the New World due to the investment in technology and automation based production as well as an increased budget for advertising. The ability to start an independent, high-end winery takes a large physical and financial capital investment.
In the beer game, the two main problems that cause high inventory or backorder costs associated with the ordering policy of each participants; are the uncertain demand and the lack of communication between different participants in the game who are the retailer, wholesaler, distributer and manufacturer. In order to operate the supply chain efficiently, the participants of the beer game should be in a coordination to fulfill the customer demand.