Case Study: Premium Peter
1. How could shifting or refining the market strengthen Pure Blonde’s current competitive advantage? Discuss the advantages/disadvantages of redefining its market as low-carbohydrate instead of premium.
Firstly, Pure Blonde’s success is due to the popularity of the brand in the premium beer customer sector and the Pure Blonde is a differentiated product which the beer is positioned as a ‘premium full strength beer and that just happened to be low – carbohydrate.’ Furthermore, the packaging is also one of the factors that gain the competitive advantage in the market. The packaging was in the high quality condition with a green, European style bottle and gold stylish label. However in the year of 2010, there are a lot of competitors move into the premium and low carbohydrate markets the competitor product seems to be less differentiation between brand and due to the competitor product the Pure Blonde product resulting a decrease in brand loyalty from their actual consumer. But the Pure blonde came out strategies to expand its distribution to certain services such as bars, clubs, café and restaurant instead of selling the product in a liquor store. Obviously, the product had redefined its market as low carbohydrates instead of being premium so there are advantages and disadvantages of redefining the product market place such as:
Advantages: Explore more new potential customer:
Pure Blonde firstly came out with a premium beer, but due to the competitor had increased in the industry, the Pure Blonde decided to shift the product market position from Premium to a Low-Carbohydrate Beer so with this opportunity this might explore more new customer because the Pure Blonde started with a premium beer so there is lack of interest for the customer that love the low – carbohydrate beer and with the Pure Blond shifted into a new market this will able to provide some low carbohydrate beer lover to try the product and gain more profits by attracting more new customer.
Firstly, Pure Blonde’s success is due to the popularity of the brand in the premium beer customer sector and the Pure Blonde is a differentiated product which the beer is positioned as a ‘premium full strength beer and that just happened to be low – carbohydrate.’ Furthermore, the packaging is also one of the factors that gain the competitive advantage in the market. The packaging was in the high quality condition with a green, European style bottle and gold stylish label. However in the year of 2010, there are a lot of competitors move into the premium and low carbohydrate markets the competitor product seems to be less differentiation between brand and due to the competitor product the Pure Blonde product resulting a decrease in brand loyalty from their actual consumer. But the Pure blonde came out strategies to expand its distribution to certain services such as bars, clubs, café and restaurant instead of selling the product in a liquor store. Obviously, the product had redefined its market as low carbohydrates instead of being premium so there are advantages and disadvantages of redefining the product market place such as:
Advantages: Explore more new potential customer:
Pure Blonde firstly came out with a premium beer, but due to the competitor had increased in the industry, the Pure Blonde decided to shift the product market position from Premium to a Low-Carbohydrate Beer so with this opportunity this might explore more new customer because the Pure Blonde started with a premium beer so there is lack of interest for the customer that love the low – carbohydrate beer and with the Pure Blond shifted into a new market this will able to provide some low carbohydrate beer lover to try the product and gain more profits by attracting more new customer.