Applied Marketing Management - Essay Example

Madhaven Brewing Company Market Madhaven Brewing is a brew pub that markets unique craft beers such as a rye dry stout and a lavender IPA, both being its flagship. It sells to beer lovers, perceivably male who fall within the young adult age group (20 to 35 years old) and stays in Colorado, USA. Beer typically appeals to men with such demographic profile because women are more eclectic when it comes to tastes (Gallup and Gallup 229). Furthermore, beer eventually becomes less engaging for older drinkers especially older women (Gallup and Gallup 229).

Since macro-brewed beers are likely to be less expensive than craft beers because of the traditional processes (Canestorp), craft beers would most likely attract beer aficionados who are more adventurous, and thus willing to spend more for beer. The craft-beer industry is steadily growing (McKinney) which is why it would be favorable to exploit local markets effectively while taking competition into consideration (15). SWOT Strengths Strong start-up (establishing local presence in a booming industry) Highly differentiated products Initiative for an online presence Weaknesses Weak brand image since it is still a small growing brew pub Inadequate promotional tactics Less experienced with food Only caters to a certain demographic type Opportunities Exploit the Internet and such other technological advances to strengthen the market presence Exploit other local markets Entrepreneurial spirit to explore on other product options Weakening industry for macro-brewers Threats Cash flow may not be strong enough for product exploration Growth of competition in the craft brewing industry Price competition Competition with established and highly profitable macro-brewing companies Government intrusions Works Cited Canestorp, Dustin.

“Hawking the Wares – How Bartenders Sell Craft Beers.” ArticleBase. ArticleBase, 8 Jan. 2011. Web. 21 Feb. 2011. . Gallup, Jr. and George Gallup. The Gallup Poll: Public Opinion 2002. USA: The Gallup Organization, 2003. Web. 21 Feb. 2011. . McKinney, Ann. Real business plans & marketing tools: including samples to use in starting, growing, marketing, and selling your business. USA: PREP Publishing, 2003. Web. 21 Feb. 2011. .