From the Case Study Example below:
(1) Carry out SWOT analysis using a SWOT matrix and generate potential
Strategies that could reverse Clatterbridge's fortunes?
(3) Briefly explain any other actions that you believe the organization should take to make this viable?
Clatterbridge Brewery was established over 100 years ago by Clarence Clatterbridge in Northampton. The business has changed hands over its many years of existence but is currently owned by Charles and Freddy Meddler who bought the business 4 years ago. The brothers in their mid fifties have moved from jobs in education and car sales to explore their desire for a new life style and to exploit their hobby of home brewing. The company is private limited and the brothers own the major share of equity. Charles is operations manager and Freddy is Managing Director and responsible for sales.
Clatterbridge are brewers of traditional beers selling to a localized market in the North East of England. They have had mixed success over the years but more recently they are faced with increasing competition from the large breweries and an increasing number of imports in a market that too is declining. In the last three years sales in the business have declined to such an extent that a loss is predicted for the current year. This will be the first time that the company has made a loss. They have paid little attention to the market trends in lagers, beers and beverages and have carried out no market research as the brothers, strongly believe that 'traditional ales' are desired by customers and word of mouth the best means of communicating their product to their local market. "It's a product that speaks for itself", says Freddy. "Our market are our local pub goers. We have some staunchly loyal supporters for our own brand." Their own label brew is successful but has been seeing declining sales. Their contract brewing however has become a large part of Clatterbridge's activity, however they have experienced little success here.
One of their main problems that has affected their profitability has been poor productivity. Charles has become weary of trying to keep the production schedule on target and it is on this point that the brothers have been arguing. Freddy has brought in 70% increase in orders that have to be ready for the Christmas period. Charles knows that he is unable to fulfil these orders, given the quality of product that they can produce, the age of the bottling plant and poor condition of the machinery and that the brewing equipment is currently used at full capacity.
Waste is a problem at the brewery. Charles estimates this in the region of 10%. At the bottling plant, Charles has lost 5% of the product due to poor fill accuracy, labeling misalignment and poor packaging . A further 2% had been lost in handling and shipping. Customer complaints have increased. In their hurry to fulfill orders, product has been wrongly labeled and wrong orders have been sent to customers. Returns from customers remain high with a 5% rejection rate. Clatterbridge have had to let down a number of major customers through their inability to keep to delivery dates in the past. Freddy blames Charles for not fulfilling orders. Charles has blamed personnel in purchasing for supplying inferior materials: poor yeast cultures, hops from Eastern Europe and ineffective cleaning reagents for cleaning the brewing vessels. Personnel in the purchasing department have in turn blamed Freddy for putting increased pressure on reducing material costs to maximize profit.
Staff turnover is high, training for staff is not seen as a priority, work conditions are uncomfortable as there is less money to invest in the upkeep of the building. Salaries are however, competitive within the industry. Some of the key members with good product knowledge of the brewing process had been made redundant when the Meddler brothers bought into the business. Many of those that stayed resented their colleagues from being forced to leave and have not agreed with Charles' approach to brewing. Charles has not taken on board their advice and they have since given up trying to contribute and have not paid attention particularly to issues of cleanliness of bottles, clean down of the brewing equipment and yeast culture development. Charles is unaware of the resentment that has built up and feels that since staff are being adequately paid their should really be nothing to grumble about.
2. Organization and Structure
2.1 The Organization
The organization has a traditional management structure. The Company's management organization is as follows:
? Freddy Meddler Managing Director and Sales & Marketing Director
? Charles Meddler Operations Director
? Gillian French Financial Controller
? Dave Martin Purchasing Manager
? Ann Davis Administration Manager
The Company employs 40 people in total.
2.2 The Manufacturing Process
The manufacturing process used at the brewery is traditional and uses the following processes:
Grist to the mill
Barley is used soaked and then roasted in kilns to make malt. Kilning browns the malt, which adds color and flavor to the beer at a later stage. The roasted malt is then milled to a powder, or grist - hence "grist to the mill".
Making the mash
The grist is mixed with hot water to form a porridge-like slurry - called a mash. This is pumped into a mash tun (a large copper vessel) where it stays for about an hour at a constant temperature of 65°C. The result is a solution that brewers call sweet wort (pronounced "wert").
The sweet wort is now transferred to what is really a giant kettle, traditionally called a copper. Here, the sweet wort is boiled and the hops added. Boiling continues for about an hour, after which the filtered solution - now called just "wort" - is transferred to the fermenting vessel.
Pitching the yeast
The fermentation process is started by adding - or pitching - a carefully measured quantity of yeast to the wort. The yeast converts sugar into alcohol while at the same time producing large amounts of carbon dioxide, which gives beer its characteristic sparkle. Ale yeasts generally ferment for up to five days at around 18°C and rise to the top of the fermenting vessel.
Refining the beer
The liquid produced in the fermenting vessel is beer. It is either bottled or if it's destined to be a 'real ale', it's put straight into casks. There is still a small amount of yeast in the beer at this stage and this will perform what is called a secondary fermentation. This gives the beer its final, desired taste. The last ingredient to be added to each cask is finings, which helps settle the yeast and clear the beer ready for drinking. There are several varieties of finings but the most traditional is isinglass, the dried swim bladder of the sturgeon fish!
 Own brand - 'Clatterbridge ale'. This is available in bottle and cask. This has a long mellow fruity taste.
 Contract brews for customers - Clatterbridge also brew beers for contract customers such as supermarkets and hotel chains. Here customers branding and beer name applies.
3. Sales and Profitability
The sales and profit figures for the past four years are as follows:
Year Model Sales (£,000) Profit (£,000)
Current (C) Own Label 200 40
Contract 410 40
C-1 Own label 220 50
Contract 300 45
C-2 Own label 230 70
Contract 100 25
C-3 Own label 310 80
Contract 70 30
4. Benchmarking Exercise
Clatterbridge have conducted a basic benchmarking exercise to compare themselves with six other similar manufacturers based in the UK. The results are shown below:
Benchmark factor Clatterbridge Competition Average
Profits (% of sales) 1.82% 6.5%
Contract £0.90 £0.20
Own label £0.50 £0.25
Contract £1.20 £1.35
Own label £2.50 £2.50
Marketing support (pa)
Contract £3K £10K
Own label £5K £40K
Delivery times (weeks)
Contract 3 2
Own Label 6 2
Scrap rates 15% 5%© BrainMass Inc. brainmass.com October 24, 2018, 7:42 pm ad1c9bdddf
Response is 802 words including a table.
A Variety of Marketing-Related Multiple Choice Questions
Markets are similar to products with respect to life-cycle concepts. All of the following are considered to be stages that markets pass through in market evolution EXCEPT ________.
_______ measures a product's handling costs from the time the product reaches the warehouse until a customer buys it in the retail store.
Direct Product Performance
Direct Product Profitability
Most products are established at one of four performance levels: low, average, high or superior. For example, mountain bikes come in a variety of sizes and physical attributes. When a consumer purchases a mountain bike costing $1,000 she/he expects the bike to perform to specifications and to have a high ________ meeting the promised specifications.
An alternative formulation to customer equity is provided by Blattberg, Getz, and Thomas. They view customer equity as being driven by three components: acquisition, ________, and add-on selling.
By adding more channels, companies can gain three important benefits. First, they can increase their market coverage, second, they can lower channel costs by moving to a lower cost channel, and third they can provide ________.
a. effective dollar costs/sale
b. increased volume of sales
c. more customized selling
d. increased exposure
Your product enjoys high brand loyalty and high involvement in the category. Your product has perceived differences that consumers recognize between brands. Your product is one of the few that its consumers choose before selecting the retail store/Web site to purchase the product. Which promotion strategy would hold the greatest opportunity for incremental sales for your product based upon the consumer criteria above?
Companies that practice ________ are implementing a total market orientation and are likely to be the most successful.
reactive market orientation
proactive marketing orientation
both reactive and proactive marketing orientation
"invent and market"
A customer's decision to be loyal or to defect is the sum of many small encounters with the company. Consulting firm Forum Corporation says that in order for all these small encounters to add up to customer loyalty, companies need to create ________.
a reward program
a branded customer experience
strong word-of-mouth promotions
a top-notch advertising campaign
____________is the set of measures that helps quantify, compare, and interpret marketing performance.
customer performance scorecard
________ is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.
A ________ strategy involves the manufacturer using its sales force and trade promotion money to induce intermediaries to carry, promote, and sell the product to end users.
none of the above
The formula for the break-even calculation is ________.
fixed costs/(variable costs - price)
(price - variable costs)/fixed costs
fixed costs/(price - variable costs)
fixed costs/unit sales
When McDonald's used mystery shoppers to assess stores' internal speed standards, McDonald's was using which of the following steps to improve its marketing intelligence system?
A company can train and motivate the sales force to spot and report new developments.
A company can network externally.
A company can motivate distributors, retailers, and other intermediaries to pass along important intelligence.
A company can take advantage of government data sources.
Marketers must be concerned with transportation decisions. Transportation choices will affect product ________, on-time delivery performance, and the conditions of the goods when they arrive, all of which affects customer satisfaction.
none of the above
One of the don'ts of questionnaire construction is to ensure that fixed responses do not overlap. Which of the following is the best illustration of a problem that this "don't" might cause?
A consumer must describe a cartoon about buying a car.
An income question asks for an income designation in one of the following income categories: $0-$20,000, $20,000-$40,000, or $40,000 and above.
A consumer is asked whether or not he or she could spy on another consumer's shopping experience.
A consumer is asked to describe a recent event will driving.
________ can be defined as the differential effect that brand knowledge has on consumer response to the marketing of that brand.
Consumer-based brand equity
Function-based brand equity
Service-driven brand equity
Mission-driven brand equity
Customers must see any competitive advantage as a ________ advantage for it to be effective.
Consumer reference prices includes all of the following EXCEPT:
last price paid
Sony's former president, Akio Morita, wanted everyone to have access to "personal portable sound," so his company created the Walkman and portable CD player. Which of the following planning aids most likely assisted Mr. Morita with his vision?
The mission statement.
A SWOT analysis.
Knowledge of customers.
If a marketing manager employs such marketing techniques as online buzz, student ambassadors, cool events, and street teams to reach target markets, the manager is most likely appealing to the ________ market.
The ________ is the rate at which the buyer forgets the brand.
One of the benefits of interactive marketing is that it is highly accountable and its ________ can be easily traced.
________ requires that everyone in the organization buy into the concepts and goals of marketing and engage in choosing, providing, and communicating customer value.
Integrated marketing communications
All of the following are considered to be advantages of online research EXCEPT ________.
online research is inexpensive
online research is prone to technological problems and inconsistencies
online research is more versatile
online research is faster
Three pillars that point to the brand's future value, rather than just reflecting its past, are differentiation, energy and relevance. Differentiation, energy and relevance combine to determine what is called Energized Brand ________.
Many countries have ________ industries to create greater competition and growth opportunities.
According to "The Law of the Few", three types of people help to spread an idea like an epidemic. They include connectors, salesmen, and ___________.
During which step of the segmentation process would the marketer group customers into segments based on similar needs and benefits sought by the customer in solving a particular consumption problem?
Step 1: needs-based segmentation
Step 3: segment attractiveness
Step 2: segment identification
Step 7: marketing-mix strategy
With regards to product-line pricing, companies normally develop product lines rather than single products and introduce price steps. The seller's task is to establish ________ quality differences between these price steps.
A conventional marketing channel comprises an ________, wholesaler(s), and retailer(s) each acting in his own self-interest.
Marketing is not a department so much as a ________.
branch of economics
Once the target market is defined, the marketer needs to obtain specific names. The company's best prospects are customers who have bought in the past. Additional names can be obtained by purchasing a list of names. The better lists include overlays of ________ and ________ information
c. financial/buying groups
The majority of sales representatives require encouragement and special incentives. To increase motivation, marketers reinforce intrinsic and ________ rewards of all types.
According to the illustrations describing the product life cycle, during which stage of the cycle is there a strong likelihood that negative profits will be the norm?
________ communicates to the market the company's intended value positioning of its product or brand.
In which of the following dimensions of holistic marketing might we find the focus on the marketing mix tools?
Socially Responsive marketing
If a marketing researcher selects the most accessible population members, he or she would have selected the ________ sampling method.
________ is a comprehensive systematic, independent, and periodic examination of a company's or business unit's marketing environment, objectives, strategies, and activities with a view to determining problem areas and opportunities and recommending a plan of action to improve the company's marketing performance.
________ can be defined as the ability to alter channel members' behavior so that they take actions they would not have taken otherwise.
From a branding perspective, "green marketing" programs have not been entirely successful. ________ has been cited as one of the obstacles that must be overcome for "green marketing" programs to be more successful.
Resistance by the youth segment in the marketplace
The three major considerations in price setting includes, costs set as the "floor," ________, and customers' assessment of unique features establishing the price ceiling.
competitors' prices and the price of substitutes provide an orientation point
competitors' prices establishes a "target price" goal
the price of substitutes establishes a "target price"
none of the above
When Coca-Cola sold only one kind of Coke in a 6.5-ounce bottle, it was practicing what is called ________.
National populations vary in their age mix. At one extreme is _________ a country with a very young population and rapid population growth.
A brand manager is concerned that his organization's brand image and physical sales are slipping in the marketplace. The manager has decided to query consumers about the health of the brand and try to discover ways to leverage the brand's equity. Which of the following terms will most likely provide the structure and process for the manager's investigation?
A brand demographic matrix analysis.
A brand positioning study.
A brand audit.
An organizational audit.
A high market penetration index suggests that ________.
the price of the product or service is too high with respect to competition
it would be great time to expand distribution outlets
there will be increased costs of attracting the few remaining prospects
mistakes have been made in selecting the correct promotional alternatives
Which of the following terms matches to the phrase "it is a single business or collection of related businesses that can be planned separately from the rest of the company"?
Niche market unit.
Strategic business unit.
Diverse business unit.
Growth business unit.
One of the reasons new products fail is ________.
competitors who fight back hard
lack of marketing expertise
If a buyer is loyal to two or three different brands of soap, this buyer's loyalty status can be described as being among the ________.
Which of the following is by far the most popular American leisure activity in that it is preferred by 35 percent of adults who participate in such activities?
Traditional brick-and-mortar retailers are responding to the growth of e-commerce by providing and emphasizing a ________ as a strong differentiator to stay at home shopping.
celebrities on premises
expert advice in selecting
wider selection of merchandise