Part 1“A customer-profitability profile highlights those customers a company should drop to improve
profitability.” Do you agree? Explain. Are all customers important? What other options does the
organization have instead of “dropping” the customer?
250-300 words. Please use at least one citation (APA 7 th).
Part 2
During the summer of 2013, the company founder and operations manager of Hockley Valley Brewing
Co. Inc., a microbrewery situated in rural Ontario, were reviewing the company’s product mix. Sales at a
recent summer festival showed a strong demand for light beers, rather than the dark ales that made up
the majority of Hockley’s sales. Not only did the company compete with large multinational brewing
companies, but they faced stiff competition from the established and new microbreweries that were
springing up all over Ontario to meet consumer demand for fresh, local, and unique beers. They had to
decide whether the company should launch a new lager to further penetrate the light beer market; if so,
they also had to make recommendations on pricing, distribution, and promotional strategies for the new
brand.
Hockley Valley Brewing.pdf
Case Study Questions:
1. Perform an external (industry and competition) analysis. What implications can be drawn for the
launch of Hockey Classic?
2. Perform a corporate capabilities analysis. What implications can be drawn for the launch
of Hockley Classic?
3. Evaluate the proposed new product, Hockley Classic. Should Hockley add the product to its line
of craft beers?
4. At what price should Hockley Classic be sold? Why? At this price, what would be the unit
contribution?
5. Evaluate Hockley’s placement alternatives, including the sales needed to break even for The
Beer Store. What distribution strategy do you recommend for Hockley Classic?
In 3 pages, and applying material from the chapter readings of this module, answer the above
questions. Integrate references (minimum of 3). Reply to these questions in essay (not Q & A)
format. Provide a graduate level introduction paragraph, and conclusion paragraph.
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Formatting
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