G. Heileman Brewing Co. (A): Power Failure at PowerMaster Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

In June 1991, Heileman announced plans to introduce high-alcohol malt liquor called PowerMaster (PM). Although the company claims messages will be positioned as a high-quality product and sold on the basis of its excellent taste, a minority of supporters and enemies of alcohol quickly attacked the company for targeting low-income, urban black consumers. On the wave of protests, the Bureau of Alcohol, Tobacco and Firearms (BATF), which had previously approved PM product, initiated a review of PM and several other high-alcohol malt liquor products that BATF is in violation of federal law prohibiting brewers from stating or even imply the alcohol content of their products. Shortly thereafter, BATF Heileman asked to remove the word "power" from the label of the Prime Minister. Heileman canceled plans to launch the product. The case involves a targeted marketing and ethical issues. Illustrates the problem faced by many American brewers: How do these companies to increase beer sales in the slow-growing, increasingly saturated market, which is completely dominated by Anheuser-Busch of "Hide
by Stephen A. Greyser, Wendy Schille Source: Harvard Business School 12 pages. Publication Date: September 1, 1991. Prod. #: 592017-PDF-ENG