Creemore Springs

Introduction: This bailiwick summary considers the Richard Ivey School of Business mooring Creemore Springs Brewery: Branding Without Advertising prepared by Mark . Creemore Springs vice President of Marketing, Howard Thompson, express issue is whether to expand susceptibility of the Creemore Springs brewery from 27,000 hectoliters to 50,000 hl. nerve center Issue: Creemore Springs has been profitable from the first year of operation solo is experiencing a production bottleneck - the brew house requires an outburst to accommodate a 50 hl kettle. A $3 one million million with child(p) enthronement would allow production to slightly reiterate to 50,000 hl. The company has built its brand as a beer that is discoered quite than using traditional beer trade strategies. Creemore Springs must(prenominal) not alienate its brisk clients with aggressive, off message marketing while growing its guest base and thus gross revenue to justify the depreciate of th e intricacy Recommendations: Creemore Springs must expand. While a uppercaseital investment of this magnitude does constitute a risk for a relatively small business, the risks that not expanding represent are greater.

Thompson himself stated the brass for growth when he identified the challenges faced with capping production, including stock-outs, existence unable to supply existing customers who open another bar, and challenges reversing a cap without further brand damage. Creemore risks damaging existing customer relationships and organism unable to fulfill demand from fully booked partners if dexte rity is not increased. Exhibit 3 outlines t! otal brew capacity in Ontario by brewery, for a total capacity of 24.750 million hl. Creemores expanding upon to 50,000 hl remains unreal in terms of the overall beer market place The cost of expansion of $3 million dollars while not negligible is manageable. Depreciated over 10 years, the annual cost to operations of the expansion would be $300,000 dollars a year, plus interest costs at slightly $99,000 a year, financed...If you want to get a full essay, primp it on our website: BestEssayCheap.com

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