Introduction Hockley Valley Brewing (Hockley) has come to the conclusion that light beers are more popular than dark ones. Since its dark beers have always been its flagship product, Hockley has a decide whether it should change its marketing mix to adapt to the latest market trend. Their proposed solution, should they decide to follow through with it, is Hockley Classic, a light lager.
SWOT Analysis
Strengths:
• Have a talented brewer, who is from a German family with lots of experience in brewing
• Spent lots of time researching industry (Competitors, consumers, retailers)
• Packaged product in cans, which are superior and cheaper than alternatives
• Has best-selling dark craft beer in Ontario
• New facility to produce beer, which has been…show more content… • Hockley Classic takes longer to produce
• Factory production costs of Hockley Classic are 50% more than ales
• Factory doesn’t have enough capacity to produce Hockley Classic and all their current products
Opportunities
• Supported by local Orangeville residents
• Craft beer producers are represented by Ontario Craft brewers, who help promote all producers
• Consumers believe craft beer is of higher quality
• Market share for craft beer has more than doubled in the past decade
• Craft beer sales growth was the highest in LCBO stores, and grows 10% across all retail channels annually
• Light beer was the best seller beer in Ontario and North America
• Consumers prefer local, cheaper brands
• Hockley has a great relationship with LCBO, which helps to get prime in-store space
• Microbreweries given full control over final price point by retailers
• Proposed price for Hockley Classic is less than its competitors
Threats
• LCBO, brewery storefronts, The Beer Store only major outlets allowed to sell beer
• The Beer Store is owned by large multi-national beer companies
• Mill Street Brewery and Steam Whistle both produce lager in same market with great success
• Both competitors have brewery storefronts in prime
