Chase Wine & Beer: Marketing Challenges and Solutions Case Study

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Added on  2023/01/04

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Case Study
AI Summary
This case study analyzes Chase Wine & Beer, a boutique manufacturer and marketer of beer and wine products, examining its marketing challenges and proposing solutions. The study highlights the company's issues with brand image due to market competition and distribution problems. Key issues include ineffective marketing communication strategies and difficulties in achieving wide distribution. Secondary issues involve loss in sales and limited marketing budgets. The study explores alternative courses of action, such as rebranding and acquiring licensing rights for promotional characters. Recommendations focus on in-bar promotions, free samples, and increased marketing budgets for television and online campaigns. The analysis includes justifications for the recommendations, outlines the marketing principles illustrated in the case, and answers specific questions related to the challenges faced by Zara, the use of a brewery website, ethical issues in advertising, and alternative marketing strategies if suggestions are rejected. The document provides a comprehensive overview of the case, including references to relevant literature.
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Assessment
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Table of Contents
INTRODUCTION......................................................................................................................3
1. Summary of the case..........................................................................................................3
2. Key issue in the case..........................................................................................................3
3 Secondary issues.................................................................................................................4
4 Two alternative course........................................................................................................4
5. Recommendation................................................................................................................4
6 Justification.........................................................................................................................5
7 Principles.............................................................................................................................5
8. Answer of all question.......................................................................................................5
REFERENCES...........................................................................................................................7
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INTRODUCTION
The present study is based upon the case study of Chase Wine & Beer which is
marketer of beer and wine products. The study will help to determine the importance of
marketing and examine the issues which is face by the company, along with proposed
solutions.
1. Summary of the case
Chase Wine & Beer is a boutique manufacturer and marketer of a beer and wine
products, also sales small winery in Hunter Valley. The quoted firm is established from five
years and working well. The company has a strong marketing communication channels which
help the firm to meet the define aim. Such that it uses traditional form of marketing that assist
to grab attention of many customers. Also, it sell range of beer product to their customers and
divided the product range is different slots like Gran Castillo (premium priced), CWB Casa
Grande (medium priced), CWB Casa (medium priced) and CWB De la Gente (lower end
price). On the other side, company also face some problem such that due to strong
competition, company did not sustain the brand image and its distribution is also not up to the
mark.
In addition to this, Zara Kiki who is a marketing manager also offer range of solution
and change the marketing style in order to improve the marketing strategy which in turn
improve the results and attracted range of customers as well. As there are many opportunities
were identified through the case study in order to improve the problem and sustain brand
image.
2. Key issue in the case
Due to high competition in market, company did not develop effective marketing
communication strategy which in turn affect the overall brand image of the firm. In
addition to this, there are many competitors which a firm is also faces and as a result,
company did not have a strategy which assist to compete in niche market. Further, it
is necessary for the firm to compete in market due to maintaining brand image (Shah,
Azhar and Bhutto, 2019).
Company also faces another difficulty in order to obtaining the wide distribution and
volume of sales which further allow them to grow further. The company’s owner also
stated that there are many big buyers who are happy to stock but die to non-
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availability of a stock, buyers are sometimes did not happy and this is a biggest
problem which Chase Wine & Beer face. This need to be resolved in order to make
changes.
3 Secondary issues
Loss in the sales and distribution is the secondary issue face by the company because
it affect the results in terms of financial. Therefore, it affect the business brand image
in negative manner (Taoketao and et.al, 2018). Moreover, it is also analyzed that due
to limiting budget, company do not invest much in the advertisement and they do take
out full page ads in the trade press for the liquor industry in order to create the brand
awareness. Moreover, it is also examine that due to this issue, company do not let
others know about the offered product in appropriate manner.
4 Two alternative course
In order to improve the problem, it is suggested to the company to use effective
marketing strategy in order to stay ahead in the competition. For that rebranding and
repositioning is consider the best strategy for the company which in turn attract the
customers and increase the financial performance as well (Katsikeas, Leonidou and
Zeriti, 2019).
Further, Zara also suggested to the owner that they try to buy the licensing rights in
order to use the character like Homer Simpson (The Simpsons) and Kenny
(Southpark) in order to use the wine and beer labels. This in turn increase the
promotion of a company’s product and increase the sales as well.
5. Recommendation
The recommended course of marketing action is as follows-
Zara suggested that the in- bar and in- club promotion at the New Castle and Sydney inner
city bar and club will be helpful in promoting the beers and wine and the company products
as well.
Another major suggestion by Zara was the providing of free samples to be given outside the
currently selected Liqour Land stores which are having the stock of the Chase Wine & Beer
products (Mix and Brand, 2017).
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Further in addition to this another major suggestion was to increase the budget for the
television and online campaign of the rebranded product that is Splash and Fella.
6 Justification
All the three recommendation relating to marketing action are made as all these three actions
are aiming at increasing the sales of the company. Thus, this is very assistive for the company
in order to increase the new branded product of Splash and Fella along with other products as
well. Further in addition to this the use of this marketing action will help company in
increasing the goodwill within the market and beat the competition as well. In addition to this
when the company will make use of the digital and online campaigning then this will attract a
wide range of consumer all over the globe.
7 Principles
The principles of marketing communication that are illustrated within the case study are
Focusing on total consumer experience- this is followed as the company is planning to
rebrand the products to gain more consumer satisfaction.
Marketing communication activity- this principle is followed by the company as they make
use of three marketing communication elements that is personal selling, public relation and
advertising (Patrutiu-Baltes, 2016).
Become a customer centric organization- this principle is also being followed by the
company as they are majorly diverted towards the fulfilling of the need and requirement of
consumers. For attracting a variety of consumer the company is trying to make use of
different marketing strategies like free sample, in- bar promotion and many others.
Use of outside in planning- this principle of IMC is also being followed by the company in
the case study. The major reason for this is that Zara is trying to plan for the development of
the product and rebranding to a great extent. For this she is being doing analysis of the market
and the need of consumer and then makes changes and rebrands the product.
8. Answer of all question
Q1
The problem faced by Zara was that the suggestions of Zara were thought to increase the
marketing communication budget of company. thus, because of this owner Kaiser and Dakota
Smith- Browne thought that this will increase the cost of the company. For the
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implementation of the suggestion of ZARA the owners has to think very high in order to
agree with all these suggestion. The opportunity for Zara was that she had good thinking and
with help of this ability she can come up with more cost effective marketing ideas.
Q2
With help of Balter Brewery website it is assistive for Chase Wine & Beer to make the
website more attractive so that majority of consumers are attracted by viewing the website.
For this company can add all the features of their wines and bear in attractive manner
(Mothersbaugh, Hawkin and Kleiser, 2019).
Q3
The major ethical issue which might be raised by Zara is that they must not focus on
degrading the other competitors when they try to advertise their product and services within
the market. This is because of the reason that Zara must focus on healthy competition instead
of intense competitions.
Q4
In case of rejecting the suggestion of Zara then owners of company must focus on digital or
social media marketing. The major reason for this is that most of people are using the social
media and if Chase Wine & Beer will focus on marketing with help of social media then this
will assist company in increasing its consumer base.
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REFERENCES
Books and Journals
Mix, M. and Brand, C.B., 2017. Marketing management.
Mothersbaugh, D.L., Hawkin, D.I. and Kleiser, S.B., 2019. Consumer behavior: Building
marketing strategy. McGraw-Hill Higher Education.
Patrutiu-Baltes, L., 2016. Inbound Marketing-the most important digital marketing
strategy. Bulletin of the Transilvania University of Brasov. Economic Sciences. Series
V. 9(2). p.61.
Katsikeas, C., Leonidou, L. and Zeriti, A., 2019. Revisiting international marketing strategy
in a digital era. International Marketing Review.
Taoketao, E., and et.al, 2018. Does sustainability marketing strategy achieve payback profits?
A signaling theory perspective. Corporate Social Responsibility and Environmental
Management. 25(6). pp.1039-1049.
Shah, S.A., Azhar, S.M. and Bhutto, N.A., 2019. Halal marketing: a marketing strategy
perspective. Journal of Islamic Marketing.
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