Hockley Case Analysis

• Economic Environmental Factors: had an effect on the industry. Economic Downturn had impacted the Industry and made consumers price-sensitive (price elastic) and pushing money to other parts of consumers lives.

• Porters Model : Direct Rival Competition; Mill Street accounted for 80% of sales and had 40 varieties of beer also sold through LCBO, The Beer Store and the company’s own brewpub. (pg4) It will be hard to gain consumers who are already drinking light beers because they are already loyal to another brand and have no reason to switch.

• Launching a light beer would place the product to compete directly with the competition who had produced and sold a much larger quantity of beer (pg4) Porters model: threat of substitution; is high, as the market has other

Unlike competitors, the unique flavours come from a German historic recipe where as the ingredients are obtained locally. Hockley also maintains an affordable price while staying environmentally friendly with canned beers even further differentiating from competitors.

Positioning strategy- Differentiation of other beers through their uniqueness and freshness of ingredients opposed to other brands. Hockley has the competitive advantage through the use of cans as opposed to bottles.

Product line: Launch the new Hockley Classic on its own to further prove that Hockley is moving towards lighter beers and is not only associated with dark beers. Furthermore to drop the Black and Tan product because of its low volume in sales to make room for the Hockley classic and keep up with demands for other beers.

Promotion