Вы находитесь на странице: 1из 6

Group 3 Mark1012 : Case study Open a pub and the drinkers will pour in.. or will they? 1.

Story/ Product/Contex: YAOYAO Story: - The Stirling Hotel is a pub located in the town of Stirling in Adelaide Hills, in South Australia. It has a close proximity to the city centre of Adelaide (approximately 10 minutes drive).It was built in 1899 and faced 3 immediate competitors; The Bridgewater Hotel, The Aldgade Pump Hotel and the Crafters Inn. - 10 years ago, the hotel fell on hard times and was brought by locals Brett and Sarah Matthew, who had a passion to restore the place. Product: - Beer (with a target market of males ages 20-40) Context: - Beer sales have fallen in Britain since 1979 by 49% - Volume of Beer sold is at its lowest levels since the great depression despite a 50% rise in population - This is due to changes in both Macroeconomic and Microeconomic environments: Macroeconomic environment Microeconomic environment - Cultural - Suppliers Increase in female drinking Increased costs due to with preference of increases in the costs of wine/spirits ingredients (eg, barely, malt Decline in after-work male etc) drinking habits - Customers Health and safety attitudes Consumer tastes have towards alcohol changing changed with a move - Political towards caf culture as Increase in government opposed to binge drinking

taxes on beer 2. Situation Analysis: CAROL We can view the situation from 2 perspectives: customers and competitors in the alcohol industry. Customers: The Stirling Hotel has followed the changes that have occurred to most other pubs. The focus is off beer and onto spirits and wines, food, entertainment The market has changed significantly (The market for beer used to be predominately males above 20) New market has opened for women who prefer spirits and wine. Thus the number of customers for beer has decreased Competitors in the alcohol industry: Wines and spirits (due to an increase in female drinkers) sales have increased. They are now substitutes for beer. Thus to remain profitable pubs which are selling beer must become more competitive and expand their services. The Stirling Hotel has 3 competitors and in order to keep up with the competition, they have gone for differentiation and superiority. Improvements in atmosphere and products (high quality products and services) has taken the focus away from the product, beer

3. Core Issue: HARVEY

Core issue: Adapting to changes in the market inorder to establish a successful target market to ensure that demand continues - Build a better mouse trap and the world will beat a path to your door Market Awareness: If nobody knows you exist and have built a mousetrap, no one will know that there is a path worth beating. Actual Needs: If people do not have a mouse problem, they do not need a mousetrap. Perceived Needs: People who have mice, but are not aware of their existence, will not be interested in your mousetrap. Likewise, people who think mice are "the cutest little things" are not good prospects. Definition of Better: Prospects will buy your product only if they agree it is better. Someone who is style-conscious may consider a mousetrap that is 10 percent more effective at catching mice, but 20 percent less attractive, to be inferior. For that prospect, a better mousetrap comes in designer hues. The Effort of Beating the Path: If customers believe it offers only a 1 percent improvement over other mousetraps, they likely will not travel through miles of untamed jungle to get to your door. The phrase has turned into a metaphor about the power of innovation - If you have a better idea than your competitors then you will be more successful than them. Creating a good or service is only the first step. This case shows the vital importance of marketing and promoting. You cannot sell one good to the whole market. This is very difficult as the market consists of different consumers with different tastes, need and wants. Thus there is a need to segment the market and analyse the different needs and wants of each segment. A target market should then be selected and the firm should focus on this section of consumers. Once a target market has been chosen they can then position themselves in that market using positioning strategies which allow that market to define the product on its important attributes.

4. Theories: LINDA Evaluating market segments:

- Size and Growth: collect and analyse data on different segments that are purchasing the product. Look for the one with the right size and growth. - Structural attractiveness: look at structural factors of the segment that may affect the profitability in the long run. - Marketing Company objectives and resources: The segments other 2 characteristics must match the companys own objectives and resources. This is where beer has failed. The market segment that beer is directed towards is young males where low prices have appealed to them due to their lower incomes. However, pubs increased the prices of beers in order to fulfil their own objectives of maximising their profits. The pubs inability to draw customers has led to a change in market, with elderly people (ages 40+) now the hotels main customers. Thus the target market of beer, although attractive should be replaced with another segment. Product Positioning: - Product positioning involves influencing how the product is

defined by the consumers on important attributes. This is done by influencing their perceptions of the products image or benefits that make it different from its competitors. This can be done by focusing on:

5. Summary/Solutions: PAT SUMMARY: - The sales of beer have decreased - This is due to the market changing. The people that go to pubs are no longer predominantly males over 20. They are now the elderly (40+). - changing environment: taxes, health concerns etc - Build a better mousetrap and the world will beat a path to your door - theories: Evaluate market segments, Product positioning

Product positioning Product positioning involves influencing how the product is defined by the consumers on important attributes. This is done by influencing their perceptions of the products image or benefits that make it different from its competitors. - Evaluate various market segments for beer ( Market research: Looking at various trends in other international markets general decline) - Choose the most suitable target market (Picking a market where they are most likely to maximise sales and record high revenue) - Choose one attribute to focus on in the existing market. (examples: Product class: The premium, more expensive beers have become more popular in bars as they suit the preferences of drinkers. Thus increasing the class of the product could be one solution. Product attributes: change the packaging or image to a more sophisticated one, to fit the target market of pubs) - Market beer towards that segment. Recommendation: