This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.1. Introduction
This report presents an analysis and evaluation of the opportunity to increase the competitiveness of the company by investing in the new system (BrewPub) for brewing craft beer (draught beer). To support the owner decision, the quantitive and qualitative analysis has been analyzed. The qualitative analysis was separated into different functional areas as well as the quantitive and business solution model. The calculations are highlighted in the report and summaries of the same can be found in the appendices.
The owner of an existing restaurant/tavern located near the University of New Mexico is facing a decision-making problem regarding an opportunity requiring a total of $150,000 that will help to increase the competitiveness of his business. The opportunity requires the owner to invest in new technology for an in-house brewing system producing high quality craft beer, thus increasing production capacity and enabling the owner to possible serve the whole sale market.
Overall goal and objective
The primary objectives of the feasibility study are to produce valuable and objective information, and to recommend the best alternatives to enable the business owner to make an informed investment decision. In particular, this study aims to:
• Define the overall goal and objectives of the new business operation unit.
• Define the business strategy for the next three years of the operation of the new business unit,
• Define how different functional strategies including marketing, innovation, operations, organization, and finance.
• Provide recommendation based on critical success factors and key performance indicator.
• Proposed an implementation plan for the first six months.
2.1 Marketing Management and Decision Making
According to Chandrasekar (2010), the marketing decision and strategy generally fall into the four controllable categories of 4Ps: Product, Price, Place, and Promotion. The goal is to make a marketing decision based on the customer in the target segment to create value and generate a positive response.
Product – The Indian Pale (ALE), Pale (Lager) and Pale/Bitter (Ale) were chosen because of the popularity in US. The combining market share is for 30% of craft beers sales (Wandel, 2015).
Price – (NEED TO SURVEY COMPETITORS)
Place – The location is in Chestnut Hill Massachusetts was chosen because the location next to the Shopping malls, Movie theatre, up-scale residential complex, and 5-7 mins walking distance from Boston University.
Promotion – The craft beer consumer is in the group of young, and more educated type of typical beer drinker (Mourdoukoutas and Siomkos, 2010). The sale promotion will...
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