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Big Brewers Are Sidling into Retail 1.Issue: Legal restrictions 2.Brewers’ Responses: 1.Brew-pubs 2.Licensing 3.Benefits: Marketing, shelf space 4.Potential.

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Presentation on theme: "Big Brewers Are Sidling into Retail 1.Issue: Legal restrictions 2.Brewers’ Responses: 1.Brew-pubs 2.Licensing 3.Benefits: Marketing, shelf space 4.Potential."— Presentation transcript:

1 Big Brewers Are Sidling into Retail 1.Issue: Legal restrictions 2.Brewers’ Responses: 1.Brew-pubs 2.Licensing 3.Benefits: Marketing, shelf space 4.Potential Danger of the strategy

2 Tokyo Café I. Who are target customers for this cafe and why? 2. Why is it called “Marketing Café” and how does it work? 3. What is the purpose of using this “marketing channel”? 4. Is this cost effective? 5. What is the limitation of this café for marketing purpose?

3 Wine Distribution (Circa Sep 2008) 1.State Response to Supreme Court Ruling in 2005 1.More States To Permit Direct Shipping 2.Made it hard to order 3.Discrimination against Big, Out-of-State Wineries (from West Coast) http://www.freethegrapes.org 2.New Players: Amazon.com; WSJ; NYT www.wsjwine.com 1.Efforts to Knock Down Shipping Restrictions -Mixed Success -Indiana case: State cannot bar shipments by out-of-state wineries to retailers. 4. Learning points: Antitrust and Consumer Welfare; (Slow) Channel Evolution

4 Webvan: What went wrong? 1.$8.7B market valuation (Nov 1999) 2.Model: Pick-Pack-Deliver (Groceries) 3.First angle: Consumer Behavior  Benefits (Unique Values) Provided by Webvan  Costs for Using Webvan service  Are you willing to pay the cost for that benefit? 4.Second angle: Competition  Supermarkets: Business Model; Purchasing power, EOS, market coverage  Webvan: Business Model; Low, small, and sporadic

5 Webvan: What went wrong? 4. Third Angle: Marketing Channels 1. Functions and Costs (FT article) 2. Service Output Issues 5. Major Lessons (Roger Blackwell) 6. Back from the Dead (WSJ article): What are the changes? Lingering problems?

6 Coke Distribution (circa 2006) 1.Historical Background - Current system - Why current system? - Problems of the current system 2. What is the key issue? 3. Your suggestion

7 Indie Movie Distribution (circa 2009) 1.In the Past: Make a great movie, distributors will line up. 2.Now: Distribute it yourself  Play directly to the friendly audience  Pull marketing 3.Why? Economic downturn and tight credit 4.Goal: Prime the pump 5.Divide up the pie: You pay for distribution, you keep the profit 6.Two websites for doing research on movie industry 1.http://www.variety.com/http://www.variety.com/ 2.http://www.videobusiness.com/http://www.videobusiness.com/

8 Realtors and Online (May 2008) 1.Background Information - Current system for buying and selling houses - Why current system? - Problems of the current system 2. Emergence of Internet Brokers and Response by Traditional Realtors 3. Lawsuit in 2005 and a Settlement 4. Winners and Losers of the Settlement 5. Implications for Marketing Channels

9 How H-P Reclaimed Its PC Lead Over Dell I.Hiring Todd Bradley from PalmOne II.“HP is fighting on the wrong battlefield”  Shift of Channel Focus (ex: Store-exclusive notebook) III. Migration of PC demand: Desktops  Laptops IV. H-P needed to convince shoppers that retailer was The better channel choice  Shift of PC Positioning: Product Focus  User Focus (“The Computer is Personal Again”) V. Promotion Shift: More Pull  More Push*

10 12 Promotional Strategies** Promotional Strategies** Pull Strategy Manufacturer Channel members Final users (consumer or industrial) Final users (consumer or industrial) Channel members Manufacturer Push Strategy 1* 2 3 *Numbers indicate sequence of flows Promotion flow Negotiation flow Product flow 1 2 3

11 Dell’s Strategy for Growth 1.Current Market Portfolio 2.Advantages of Dell Model 1.Cost efficiency of direct model 2.Customization & Responsiveness 3.Focus on detail 3.Three-Step Growth Strategy 4.New Frontier: Consumer Electronics

12 Dell’s Strategy for Growth 5. Three Main Challenges for CE Market 1.No Customization and Less Responsiveness 2.Will People Buy Direct? 3.Dell’s Brand Equity for CE Product Mike George 6. Playing the OEM game (back page) - Who are customers? - Upside & Downside - Response from resellers and small manufacturers

13 Nicole Miller Fashion House 1.Mission of Nicole Miller 2.Positioning of the Nicole Miller 3.Target market of Nicole Miller 4.Marketing Mix 5. Product: 6. Price: Expectation 7. Place: Combo 8. Promotion: Combo


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