Whiskey And Cheddar Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Whiskey And Cheddar Case Solution

DECISION OPTIONS

Launch New Product with Branded Ingredients.
Launch New Product without Branded Ingredients.

Alternatives and Its Evaluation

The feasibility of all the alternatives is based on a number of factors, such as: the ability of profitability generation, per unit price chances of success and so on.

Alternative-1: Launch New Product with Branded Ingredients:

One of the alternatives for the company is to launch a new product with branded ingredients. The Advantages and Disadvantage of launching this product are as follows:

Advantages:

The company would be able add new product in its product line.
By launching a new product the company would be able to improve its profitability.
The company would be able to improve its brand image.
Reduces the fixed cost of new products.
Low promotional cost.

Disadvantage:

The company has to carry out sufficient promotional activities to attract the customer and to bring awareness to the customers about its new product.
It requiresan additional investment.
The company would have to pay royalty fees.

Alternative-2: Launch New Product without Branded Ingredients:

Another alternative for the company is to launch a new product without any branded ingredients. The Advantages and Disadvantage of launching this product are as follows:

Advantages:

The company would be able to add new product in its product line.
It would improve the company’s brand image and would allow the customers to try new flavors, which ultimately improves the company’s customer base.

Disadvantage:

Due to a number of competitors in the market; the company wouldn’t be able to generate an additional revenue.
It requires high additional investment in comparison to the launch of a branded ingredient products.
High advertisement cost would be required.

Alternative-3: Direct selling To Consumers Online

Another alternative for the company is not to unveil the new product and to consider direct selling online to the customer. The Advantages and Disadvantage of this alternative are as follows:

Advantages:

High-profit margin in comparison to retail selling.
Saves various margins of whole sellers and retailers.
Increasing the trend of online purchasing.
No additional cost.

Disadvantage:

Dependency on a limited product line.
It would reduce the consumer base of the company, because the consumers want to try new products.
The online selling has only a 2% contribution in overall revenues, which shows that 98% of sales of the company are generated through retail channels.

Recommendations and Action Plan

Based on the analysis, the company is suggested to implement the alternative one which is launching a new product with branded ingredients. The reason behind the suggestion of alternative-1 is that it would bring additional profit in the company’s revenue as well as provide a new flavor to the customers, which ultimately improves the company’s consumer base. The target audience of the company is upper class so the customers would pay even higher prices to buy the product. Branded ingredients would also improve the quality of the cheese that would easily attract the customers. The company is also recommended to focus on selling directly to the customers through the online channels, because the trend towards the online selling ids increase day by day. Selling through online and retail would enable the company to capture the market easily.

Action Plan

In order to launch the new product with branded ingredients; the company hires additional staff and provides training on how to make the new cheese. After that, the company buys equipment, raw material and other things that are necessary for the production of the product. Furthermore, the company advertises its products on social media and other communication channels in order to acknowledge the customer about the new product of the company. The company also make sure that the product of the company would available at every store as well as through the website of the company

SWOT analysis

Strengths:

One of the strengths of Caesan Cheese Cooperative is comprised of almost 300 families as well as a famous cheese maker who expeditionary. The company uses different almost all channels in order to distribute its products, i.e. retailor, whole seller and selling via the internet. The company has a number of items in its product line. Caesan’s 2018 revenue was more than %50 million and sales was 98% from its retail business. A strong relationship with the supply chain members is one the major strength of the company that enables the company to maintain its consumer base and competitive position in the market. The company has won the number of awards. Caesan was awarded almost 11 awards by 2018 from reputable associations (Sammut-Bonnici &Galea, 2015). The company is continuously focusing on innovation and trying to bring new flavor to the market that meets the consumer need.

Weaknesses:

Caesan brand awareness is low among the consumers as compared to the other national brands i.e. only 25%unaided brander call;Internationale and shada recall of 45%to55%. The company is facing pressure in order to reduce its price in order to remain competitive which ultimately impacts on the profitability of the company. The company has a small portfolio in comparison to its competitors. The company offers its products in the U.S market only.

Opportunities:

One of the underlying opportunities for the company is to improve its brand awareness in the target customers, which ultimately impacts the profitability of the company as well as allows it to maintain its competitive position in the market. The company has an opportunity to offer its products internationally and to increase its product line. Another underlying opportunity for the company is to perform a merger with the PR-U and add products in its product line.

Threats:

The U.S, cheese market is composed of a number of dominating player, which is one of the major threats for the company. The competitors have strong brand image with a variety of products, which attracts the customers and ultimately reduces the consumer base of the company...........................

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Whiskey And Cheddar Harvard Case Solution & Analysis