Sierra Nevada describes their Pale Ale as being unique for its piney and grapefruit aromas. It is a classic, yet it remains new, complex and surprising to thousands of beer drinkers every day. These points of difference are what makes it one of the top leading Ales on the market. However, it is less “exclusive” and more obtainable than some of the higher ranked beers on this list. Sierra Nevada is found in almost every large retailer of it’s kind which is part of their target market strategy and makes the price slightly less than it’s competitors.
d. Describe how your product creates value compared to the competition.
Sierra Nevada expresses their sensory attention to detail for their products. They claim that every day, a panel of trained Sierra Nevada sensory experts taste every beer scheduled to go into the market. They evaluate the flavors to ensure that every bottle meets our rigorous standards of quality at every step of the process from ingredient harvest all the way through bottling. This backs up Sierra Nevada’s mission of value and quality to the beer industry.
Paste Magazine referred to Sierra Nevada’s Pale Ale as “The beer, the myth, the legend, and the pale ale to which all other American pale ales are compared,” during a blind taste test and ranking.
e. Is your product classified as price elastic or inelastic? Explain. Discuss the price sensitivity of different market segments for your product.
E: The price for Sierra Nevada’s Pale Ale is elastic because there are hundreds of substitutes for the product. It is a price sensitive product because it is easily substitutable and a relatively average priced product in its market segment as a large brewery.
f. Describe the product line pricing strategy for your product.
F: The product line pricing strategy Sierra Nevada used when developing their different beers was to create multiple products, such as the Pale Ale, and different variations of beers and brews to maximize profits. For example, if Sierra Nevada only produced and IPA then they would only appeal to consumers who like IPAs. In order to maximize profits Sierra Nevada has brewed dozens of different beers and ales to work in coordination with each other and appeal to more consumers.
Marketing Audit Questions: Managing marketing channels and communicating product ideas: Chapters 15, 17, 18, and 20
18. Channels of distribution Fahad Alqattan
a. How would you describe the distribution channel for your product (direct and/or indirect channel)? Provide an exhibit illustrating channel levels (Figure 15-3,4,5)
A: A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. Sierra Nevada uses various distribution channels including wholesalers, retailers, distributors and even the internet itself.
b. Does your product have an electronic marketing channel? If so, describe it.
B: Pale ale Sierra Nevada have an electronic marketing channel. A unique feature of electronic marketing channels is that they combine electronic and traditional intermediaries to create time, place, form, and possession utility for buyers
c. Does your product have a dual distribution strategy? If so, describe it.
C: Pale ale Sierra Nevada have a dual distribution strategy. Dual distribution strategy also known as Multi-channel distribution involves a business using more than one type of distribution channel in this case, it involves the manufacturer and wholesalers.
d. If your company has a vertical distribution strategy, describe it.
D: Sierra Nevada has a vertical distribution strategy, which is one in which the main members of a distribution channel including producer, wholesaler, and retailer and work together as a unified group in order to meet consumer needs.
e. Does your product exhibit intensive, exclusive or selective distribution? Describe why your product was classified in one of the categories above.
E: Pale ale Sierra Nevada exhibit selective distribution as it lies between intensive and exclusive distribution. It involves using more than one, but lesser than all the intermediaries who carry the company's products.
f. Is there tension in the distribution channel for your product? Why?
F: There is no tension in the distribution channel for Pale ale Sierra Nevada. Tension in channels can be created by the contribution of each channel member.
g. In terms of supply chains, how does your product get to its final customers? Provide an exhibit to illustrate your supply chain (Figure 15.9)
G: A channel of distribution is the route a good takes from its original source to its final customer. From the producer to wholesaler to retailer and final consumer are segments of the supply chain that Pale ale Sierra Nevada go through.
19. Marketing communications and direct marketing —–German Diaz
a. Describe the push and pull channel strategies for your product.
A. The pull strategy for Sierra Nevada Brewery started off by selling beer off the streets. It also used word of mouth to get to consumers. Now that the company has grown,it uses strategies like Oktoberfest, Beer camp and other live music shows.
B. The push strategy the brewery uses is setting up several distribution channels to reach several consumers. Distributors are located in several states like Alaska, California and Florida.
20. Advertising, sales promotion and public relations Kohlden
a. Does your product exhibit both “product advertisements” and “institutional advertisements?” Give some examples of each.
b. What media does your company use to advertise? Give some examples of each.
c. Based on your personal observations, what are some of the most effective ads for your product? Provide ad examples that illustrate your product’s position with a specific target markets. Why do you think these ads are so effective?
d. Does your company use consumer sales promotions for your product? If so, what promotions are used and are they effective? Provide illustrations.
e. Are public relations a part of the promotional mix for your product? If so, describe an example of a public relations piece and state how effective you think the piece was in terms of affecting
the target audience.
f. Describe your product’s social media platform.
A. Product Advertising: Selling of merchandise such as hats, posters, stickers, key chains, bottle openers, and their famous sweaters. Founder and owner, Ken Grossman’s statement on Sierra Nevada’s advertising, “Our advertising comes out of our 12-ounce bottle.”
B. Sierra Nevada’s strategy is not use media as a mean of advertising. Besides a youtube video, they try to stay away from the media and rely heavily on word of mouth for their advertising. http://digitalcommons.calpoly.edu/cgi/viewcontent.cgi?article=1001&context=agb_cs (page 10)
C. In my personal observation I have only heard of Sierra Nevada through word of mouth and merchandise that i’ve seen other people wear. They have established an effective way of advertising without the need of media and commercials. Sierra Nevada has the confidence that their product alone will sell itself. With the absence of media advertisement, they separate themselves from most of their competitors.
D. Sierra Nevada does use consumer sales promotions. They are are renowned for unveiling seasonal beers year round. Examples are, Beer Camp for the spring, Summerfest for the summer, Oktoberfest for the fall, and Celebration for the winter.
E. Public Relations is part of Sierra Nevada’s promotional mix. Their active at bike races and events, which targets that young middle class demographic. They also made endorsements with high end restaurants in the Bay Area. This opened them up to new markets and strengthen their image of being a high end product.
F. Sierra Nevada is involved with Facebook. They use it as a platform when unveiling new beers and upcoming events that they are hosting. It is also a great way to receive feedback from customers as well as spreading that word mouth between consumers.
21. Personal Selling & Sales Management Fahad Alqattan
a. How does your company use personal selling?
· Personal selling is where businesses use sales force to sell the product after meeting face-to-face with the customer. The sierra Nevada sellers promote the product through their attitude, appearance and specialist product knowledge.
b. What kind of personal selling is used? Relationship? Order taker?
· Sierra Nevada uses trade selling as a kind of personal selling, which involves selling the product to the retailers and wholesalers trade sales personnel made regular contact to the wholesaler and retailers and received bulk order from them, trade sales personal work either for wholesaler or manufacturer (Bleier et al., 2013).
c. Describe the sales process (steps in the sale) for your product. How would you sell the product (face to face) to a customer? Is selling more or less important in other parts of your distribution channel?
· There are various steps of the sales process including product knowledge, prospecting, the approach, the needs assessment, the presentation, the close as well as follow up. Moreover, face-to-face help the seller with the ability to make a stronger and more personal connection with customers. This offers you a chance to become real and not just a voice on the other end of the phone. A face-to-face interaction creates a more personalized and vivid experience for potential buyers. In this case, face-t0-face may lead to more sales, which an important part of my distribution channel.
d. What is the USP (unique selling proposition) for your product?
· A unique selling proposition is the defining factor or characteristic that sets a company apart from its competitors. In this case, the USP for Sierra Nevada includes online and offline retailers that aim to communicate their unique selling proposition to shoppers in marketing campaigns, product descriptions, and all other customer touch points (Ginsberg & Bloom, 2004).
and. How do your sales people "create value" for the customer?
· Salespeople act on behalf of their companies by creating value for their firms' customers. Whenever a salesperson goes back to her company with a customer's request, she or he is voicing the customer's needs.
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