Big Brewers Are Sidling into Retail

1
Big Brewers Are Sidling into Retail

1. Issue Legal restrictions
2. Brewers Responses
3. Brew-pubs
4. Licensing
5. Benefits Marketing, shelf space
6. Potential Danger of the strategy

2
Tokyo Café
I. Who are target customers for this cafe and
why? 2. Why is it called Marketing Café and
how does it work? 3. What is the purpose of
using this marketing channel? 4. Is this cost
effective? 5. What is the limitation of this
café for marketing purpose?
3
Wine Distribution (Circa Sep 2008)

• State Response to Supreme Court Ruling in 2005
• More States To Permit Direct Shipping
• Made it hard to order
• Discrimination against Big, Out-of-State Wineries
  (from West Coast)
• http//www.freethegrapes.org
• New Players Amazon.com WSJ NYT
• www.wsjwine.com
• Efforts to Knock Down Shipping Restrictions
• Mixed Success
• Indiana case State cannot bar shipments by
  out-of-state wineries to retailers.
• 4. Learning points Antitrust and Consumer
  Welfare (Slow) Channel Evolution

4
Webvan What went wrong?

• 8.7B market valuation (Nov 1999)
• Model Pick-Pack-Deliver (Groceries)
• First angle Consumer Behavior
• Benefits (Unique Values) Provided by Webvan
• Costs for Using Webvan service
• Are you willing to pay the cost for that benefit?
• Second angle Competition
• Supermarkets Business Model Purchasing power,
  EOS, market coverage
• Webvan Business Model Low, small, and sporadic

5
Webvan What went wrong?

• 4. Third Angle Marketing Channels
• 1. Functions and Costs (FT article)
• 2. Service Output Issues
• 5. Major Lessons (Roger Blackwell)
• 6. Back from the Dead (WSJ article)
• What are the changes?
• Lingering problems?

6
Coke Distribution (circa 2006)

• Historical Background
• - Current system
• - Why current system?
• - Problems of the current system
• 2. What is the key issue?
• 3. Your suggestion

7
Wine Distribution in Iowa

• It is a growing industry 15 (1999) to 325 (2010)
• Current Law Sell Out-of-State wines only through
  distributors
• ? Cost 1.75 a gallon in taxes to out-of-state
  wineries
• Lawsuit State Law is Unconstitutional because???
• Suggested reorganization bill Equal treatment ?
  Everybody pays 1.75 per-gallon tax.
• Upside
• Downside
• 5. Learning points Gap between law and practice
  unawareness

8
Realtors and Online (May 2008)

• Background Information
• - Current system for buying and selling houses
• - Why current system?
• - Problems of the current system
• 2. Emergence of Internet Brokers and Response by
• Traditional Realtors
• 3. Lawsuit in 2005 and a Settlement
• 4. Winners and Losers of the Settlement
• 5. Implications for Marketing Channels

9
Direct Selling Flourishes in China

• Background Information
• - Banned in China in 1998
• - Ban Lifted in 2006
• - Now 8B industry
• 2. Why is it growing so fast in China?
• Potential downsides of direct selling
• 4. Any cross-cultural differences?

10
Nicole Miller Fashion House

1. Mission of Nicole Miller
2. Positioning of the Nicole Miller
3. Target market of Nicole Miller
4. Marketing Mix
5. Product
6. Price Expectation
7. Place Combo
8. Promotion Combo