Moosehead Beer Case Study

MOOSEHEAD BREWERIES

• What market entry strategy should Moosehead Brewery adopt in order to efficiently enter the Quebec beer market?

• What implementation issues must be addressed in order to ensure Mooseheads smooth, sound and ultimately successful entry into the Quebec beer market?

• What promotional strategies should Moosehead carry out in order to establish the Moosehead lager as a premium tasting beer at a reasonable price?

PROBLEM IDENTIFICATION

• Everyone of legal drinking age who may consider purchasing beer

TARGET MARKET

• There is $2 billion in beer consumed in Quebec each year (60 million 24-bottle cases)

• In Quebec, liquor can be sold by private retailers• ¾ of beer purchased is for home consumption• Quebec has lower liquor taxes and more

strict laws• Unused capacity in Moosehead production

facilities

KEY FINDINGS

• Close proximity to Quebec• Unused capacity in production facilities• Sole proprietorship• Quality product• Established distribution both nationally and internationally• Long history

STRENGTHS

• Relatively small compared to major, national breweries

• Labelling costs

WEAKNESSES

• Quebec has lower liquor tax than other provinces• Quebec has the 2nd largest beer market in Canada• Drinking age is 18• Established brand awareness that can be built upon• High interest of Quebec retailers• Market share to build upon

OPPORTUNITIES

• Regional pride of beer drinkers• Communication/cultural barriers • Lobbying by smaller Quebec microbreweries• Provincial law discrepancies • Interprovincial trade barriers• Lack of correct labelling and advertising

THREATS

ALTERNATIVE #1Position Moosehead Exclusively using

an Indirect Approach

• Non invasive in it’s appeal to potential consumers

• Assures availability of inventory

• Exclusive availability of the products

ADVANTAGES

• Ignores numerous sectors of potential target market

• May make some consumers angry due to lack of product availability

• Only creates minimal brand awareness

DISADVANTAGES

Intensive Distribution using an Indirect Approach

ALTERNATIVE #2

• Product reaches entire target market

• Generates higher sales due to increased traget market exposure

• Creates brand awareness/recognitionthroughout Quebec

ADVANTAGES

• Could be seen as an invasion of an out of province product(regional pride)

• Supply shortage is product is successful

• Overexposure may lead to consumer complacency

DISADVANTAGES

Selective Distribution with an Indirect Approach

ALTERNATIVE #3

• Maintains Mooseheads image

• Controls the flow of merchandise

• Retailers have a strong incentive to sell the products because there is less

competition from other retailers

ADVANTAGES

• Potential misinterpretation of market research could lead to placing Moosehead in the wrong place

• Less control on pricing

• Not as much exposure as intensive marketing

DISADVANTAGES

• 1) Position Moosehead Exclusively using an Indirect Approach

• 2) Intensive Distribution using an Indirect Approach

• 3) Selective Distribution with an Indirect Approach

ALTERNATIVE OPTIONS

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• (2008). Retrieved November 13, 2009, from Times&Transcript: http://timestranscript.canadaeast.com/

• (2009, July 31). Retrieved November 13, 2009, from Agriculture and Agri-Food Canada: http://www.agr.gc.ca/

• Grewal, Levy, Persaud, Lichti. (2009). Marketing- Canadian Edition. McGraw-Hill Ryerson Ltd.

• Inquiry Into the Quebec Beer Market. (2009, November 05). Retrieved November 13, 2009, from Competition Bureau: http://competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/00786.html

REFERENCES

MERCI!

-GROUP C-Jesse AldridgeClaire GaigalMatt HumanSunny Ling

Crystal Thorleifson

THANK YOU!