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Marketing Strategy for Dixie Brewing Company.

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Introduction

Marketing Strategy for Dixie Brewing Company Market Analysts and Promotional Specialists, Incorporated (M.A.P.S) was hired by the Dixie Brewing Company to research their marketing methods after sales fell. It was decided that shelf positioning was a major factor for influencing sales and therefore a marketing plan was constructed to test this. Internal or External Validity? There are two specific kinds of validity that are relevant to experimentation, internal and external validity. Internal validity refers to the extent to which the effect observed was a result of the experimental variable and no other factors (Churchill and Iacobucci, 2002). External validity refers to whether the cause and effect relationships found in the experiment can be generalized (Malhotra, 1999). The marketing research design made by M.A.P.S for Dixie Brewing Company can be classified as a One-Group Pretest-Posttest Design. In this design, a pretreatment measure was taken where the original shelf positioning was observed. The convenience store was exposed to the treatment where the alternative layout was introduced. A post treatment measure was taken. The design may be symbolized as: O1 X O2 The treatment effect can be shown by O2-O1 (Mc Daniel and Gates, 2002). ...read more.

Middle

On average Miller, Bud and Dixie Light decreased by 1.7%, while Coors and Coors Light remained constant. There were two exceptions to this trend, Dixie and Miller Lite, where sales increased. However, Dixie sales increased by five times more than that of Miller Lite, resulting in Dixie being the overall best seller. Before taking into consideration the effect of the location of the beers, external influencing factors other than shelf positioning must be considered. Such factors could include: previous advertising; price advantage; packaging design and taste, all of which would have an impact on the consumer and therefore affect the hierarchy of sales of Dixie down to Dixie Light. Considering the effect of the M.A.P.S. treatment no definite conclusions can be drawn from the results. In the case of Dixie and Miller Lite, change in location of the brands did increase sales. This however defeats the object of the exercise as the change in position of Dixie Light has decreased sales by 1% whereas Miller Lite, the main competitor, noticed an increase in sales. This shows that the M.A.P.S. treatment did not produce its desired outcome. ...read more.

Conclusion

By conducting a general questionnaire, non - specific to the 'Dixie' brand for security reasons, it could enable the researcher and company to identify other factors that may need to be tested, for example, price, awareness of the product. Ideally the questionnaire could be conducted on the shop floor in the beer aisle to ensure the correct audience is targeted. It will have to remain short to keep customer attention and be in multiple choice format making it quick and easy to answer. In addition to this, if the Dixie Brewing Company have their own website, they could incorporate a more personalised questionnaire to discover customer views on their products, particularly with reference to taste of the products. Alternative products could be produced and taste tests carried out, however this would be an expensive process so pretests and prior research will have to be carried out to sum up cost benefit analysis. From the results of the questionnaires, it is possible to determine what influences consumer decisions, therefore some changes can be made to not only the research design but also the product. The alternative research design outlined above will provide more reliable results, therefore making the experiment more internally valid, because as far as possible, other influencing factors have been removed. ...read more.

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