Describe difference between lcbo stores and loblaws stores

Assignment Help Marketing Management
Reference no: EM132475022

This question need to be done with the help of case study below:

Dealing in a Duopoly

A smartly dressed young Collingwood professional exits his Subaru, having pulled into the parking lot at Side Launch Brewing Company. All signs indicate an active type of individual. The mud-encrusted tires of both his car and the mountain bike perched on its rooftop, and a variety of active brand stickers adorning the rear window, would suggest he's more than just a weekend warrior. Upon entry to the brewery, he waves familiarly to Laura, who's hosting the retail outlet in the building, and Laura waves back like a good neighbour would. The young man makes a beeline to the well-stocked Side Launch refrigerator and pulls out a box of the bright yellow Wheat beer cans. Laura and the man exchange pleasantries as the transaction is carried out, and he's on his way out the door in moments. If all Side Launch sales could be so easy, so frictionless ... so autonomous. But, alas, neither Side Launch nor any brewery can have total control of every sale of its product and still reach any level of scale.

Alcoholic beverage producers have two distinct retail channels-on-premises, the sale of product through bars, pubs, restaurants, and the like; and off-premises, the sale of product through liquor stores and vendors. As mentioned in the previous chapter, the thousands of licensees (bars, restaurants, and pubs) scattered around its geographical reach provide Side Launch with enormous opportunity to sell cans and kegs where people gather to enjoy a cold one outside of the home (on-premises). But for the other segment of the market (off-premises), Side Launch and all other brewers in Ontario have minimal choice. "It's a duopoly," states Chuck Galea, VP Sales and Marketing. "You have LCBO [Liquor Control Board of Ontario] primarily, and the Beer Store." The irony is that the Ontario government regulates the production and distribution of beer and operates the 660-plus LCBO stores in the province, but The Beer Store is a privately owned retailer that operates 450-plus stores and serves as distributor to LCBO and 20,000 licensees in the province.

The relationship between a small private craft brewer like Side Launch and a massively powerful entity that is both the regulator and retailer, LCBO, is predictably complicated. "The LCBO, on the one hand, is great for craft in that they do promote us, and they are the major retailer in the province, but they have a bit of hard row to hoe in that craft beer is their fastest-growing segment but it is their lowest margin," explains Garnet Pratt, CEO. "So when it comes to allocating shelf space they've got a bit of a battle: their customers want more craft, but every inch of shelf space they give to craft, they have to take away from something that is more profitable."

Recently grocery stores have been allowed to enter the beer-selling picture, and the government has mandated 450 licences can be granted in Ontario by 2018. "Loblaws will get some of those licences and yes, we'll have three of our styles of beer in every single Loblaws store with a licence," claims Garnet confidently. However, in defence of her craft beer brethren (she sits on the board of Ontario Craft Brewers), she says, "A lot of the small breweries, they could never supply all Loblaws stores, they just don't have enough beer."

For Side Launch, the relationship with retail is bittersweet as it finds itself benefiting from a standardized and consistent retail channel for its growing brand but is still somewhat encumbered by the regulator, which ultimately plays a role in influencing that demand.

  1. Using retail classification terms discussed in the chapter, describe the difference between LCBO stores and Loblaws stores now selling beer in Ontario.

Reference no: EM132475022

Questions Cloud

Complete the sheet for bonds : Complete the Sheet for Bonds assuming The bonds were issued when the market rate of interest was 7% and sold for $89,322.
Describe positive organizational behavior : Describe positive organizational behavior you are contributing in your workplace (or previous workplace).
Estimate the size of the market for a product : What information can you find that will help you to estimate the size of the market for a product?
Aspects of research methods : Which aspects of research methods did you find most applicable to your life? Name one or two issues that you would be interested in studying using research
Describe difference between lcbo stores and loblaws stores : Using retail classification terms discussed in the chapter, describe the difference between LCBO stores and Loblaws stores now selling beer in Ontario.
Problem - Statement of cash flows : Prepare a complete statement of cash flows using the indirect method as discussed in class. Disclose any noncash investing and financing activities in a note
Determine what is the contributed capital : Would the market price per share of stock increase, decrease, or remain the same, if the company declared a 2-for-1 stock split on December
Explain how governments would be considered agents : Therefore, the alcohol marketing channel takes on more of an agency structure. Explain how governments would be considered agents in this structure.
What are some of the inputs to production : What are some of the inputs to production that Michael must manage within his supply chain?

Reviews

Write a Review

Marketing Management Questions & Answers

  Detail the costs of implementing your two marketing assets

Describe the asset briefly along with the cost. Determine how the cost will be allocated towards strategy, development, advertising, analytics,and post-campaign

  Can a soda really make the world a better place

Read the case "Pepsi: Can a Soda Really Make the World a Better Place?" on pages 495 to 497 of the textbook and prepare answers to the questions below. Do not answer the questions at the end of the case in the textbook.

  Explain the distinction between push and pull media

Explain the distinction between push and pull media. What is the significance of control in terms of using websites to market products?

  Provide numerical reasoning to support your claim

Is the following statement accurate? Please provide a numerical reasoning to support your claim.

  You have worked at this organization for over 10 years and

you have worked at this organization for over 10 years and feel totally unappreciated. you have not received a

  Assess the external threats affecting this corporation and

write an eight to ten 8-10 page paper in which youchoose the two 2 segments of the general environment that would rank

  Marketing channels as possible

With a low budget, would a marketer have to cut out some marketing channels or use as many marketing channels as possible?

  Explain concepts of interlaced scan and progressive scan

Explain the differences between NTSC and PAL TV/video formats - Explain the concepts of the interlaced scan and progressive scan in the video formats - how they work and what are the pros and cons of them respectively.

  Define the term supply chain

What is the task environment?What is meant by holistic marketing?What is the Product Market Expansion Grid? Define Market Opportunity Analysis (MOA)

  What marketing tactic can companies use to create empowering

As discussed in the 4th recorded lecture on the book "Unconscious branding," how can companies inspire connections of people sharing with other people? Please provide specific examples of companies who have successfully done this?

  Do you agree that cohort segmentation is effective

Do you agree that cohort segmentation is effective in developing communications for various consumer groups? Explain why or why not.

  Explain forms of e-commerce

Explain Forms of e-commerce and which type is most applicable for organizations you interact with regularly

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd