Hockley organization
Introduction
Hockley organization may achieve its market expansion by properly concentration on specific factors that determines the company’s success capabilities within its target market. The organization can only understand such factors if they explore both internal and external structures of the company. The primary objective of exploration is to find out the ability of the organization to deal with its expansion requirements. It also aims to determine if the organization can handle market issues that follow the expansion initiative. The various issues that should be considered include corporate capability analysis, industry and competition analysis, new product pricing and evaluation, and evaluation of company placement alternatives.
External (industry and competition) Analysis
Hockley has demonstrated to have better business performance. The company deals in the production and selling of both hard and soft beers. In this case, the company works on products and services that can be consumed. As such, they have an advantage since such products always have a ready market. The sector, however, is characterized by competition from both private and public companies (Dunn, 2014). Therefore, the organization needs to take into consideration that its news lager soft beverage will meet the sales target when the competition matter is appropriately handled. Also, the organization is likely to face a high level of competition from house-hold Breweries Companies since it operates internationally and locally. Steam Whistle companies and Mill Street Breweries are likely to be the two top competitors of the organization. The company’s competitive structure is under threat because the company produces and supplies numerous brands to the market. However, the newly launched lager will enjoy a fair share of market competition because of the mentioned competitors. However, proper marketing strategies should be put in place by the company so that the product can better perform in the market.
Corporate capabilities analysis
The corporate capabilities of the company can only be known after evaluating its internal strength in dealing with external influences. Hockley has an excellent approach when it comes to dealing with marketing strategies. Dunn (2014) argues that the company not only studies the purchase trends of the customers but also offers low prices products compared to its competitors. The company’s marketing strategies provide the organization with strong corporate capabilities and get positive results when it realizes a new product to the market. Also, the previous success of the company in the market offers support to organizational capability to have a positive influence in its target market when launching a new product. Hockley has been receiving continuous progress due to its business model. Hence, the company is capable of ensuring that the planned product in the market achieves positive outcomes.
Evaluation of new product
The new product that the organization intends to launch to the targeted market is a light beer. There is a potential increase in the demand for the product in the summer festivals. There is also an opportunity because of the growing demand for a light beer. The new product has numerous strengths that are going to be beneficial in the market. The lower price point of the product will make it penetrate easily in the market. Also, it is likely to enjoy the support of loyal customers and because of the reputable organization. As such, the company should continue to launch the new light beer to motivate the beer sales in the market.
Price of Hockley Classic
The new product should be sold at 2.55 dollars per 473ml. The primary reason behind the pricing of Hockley Classic is because of the competitive environment that the company operates. The organization operates in a sector in which the market declares the price value of the product. Such a market limits the producers and suppliers since they cannot charge higher or lower than the equilibrium value. As such, the company should do a detailed exploration of the market to determine the price of the product. The company should aim to understand the competitive structure, the selling patterns for the product within the target segment, and the nature of the target customers. The competitors such as Muskoka Brewery charges 2.65 dollars while Lake Bay Brewing Companies charge 2.85 dollars for the same 473ml (Dunn, 2014). As such, the new product should be sold slightly below what is offered by competitors.
Evaluation of Hockley’s placement
Internet would be the Hockley’s placement alternative. This would help reduce the unnecessary cost that might have been used in the company’s supply chain system for the product to reach the target market. The model would ensure the immediate breaking of even for The Beer Store. Break-even is often identified when the total revenue of the company reflects a zero profit. The break-even would be assessed based on the sale of a single can of Hockley Classic. In this case, the total cost for a single can is 1.62 dollars, and a hundred unit sales will earn the organization a break-even of approximately 162 dollars. The value which is obtained will be the value of the attained product sales minus the accumulated sales profit. The use of retailers and wholesale distribution is also the best strategy that should be used by the company. The distribution model is aimed to cut off the cost that would have been incurred in the inventory management of the product.
In conclusion, Hockley should go-ahead to release the new product because it has potential in the lucrative light lager market. This would be spearheaded by the reputation of the company and its business model. The lower price would play an essential role in making the beer penetrate the market. Lastly, the company should also use advertising to promote the new product.