J&B Case Study

In: Business and Management

Submitted By sammc724
Words 1459
Pages 6
EXECUTIVE SUMMARY
J&B has seen a steady decline in sales over the last two decades. To reverse this trend a new brand image is needed. This requires an ambitious new marketing campaign which highlights the new brand image. Creating a new brand image aimed at young people will increase brand loyalty and drive up sales and provides a solution for the foreseeable future.
II. CURRENT SITUATION
The purpose of this report is to describe a new marketing strategy for J&B, a business struggling with decreasing sales and profits. Analyzing trends and a market analysis help identify problems that need attention and identifies opportunities. Using a functional strategy and scrutinizing the product, price, place and promotion help assess the issues at hand. Symptoms of a downfall include decrease in market share, loss of sales, and decline in taste.
III. PROBLEMS
J&B struggles in part from poor brand management. The administrative staff changed several times contributing to internal instability. Brown spirits are trend sensitive. The sales of brown spirits fell from 2.1 million cases in 1991 to 975,000 in 1990. Advertising expenses increased from $3.50 per case in 1980 to $6.99 in 1990. The doubled advertising expenses still facilitated a 50% decrease in sales. Brown spirits has an aging consumer segment. In 1978 the average scotch consumer fell between ages 40-50. Dying baby boomers represent a majority of the consumer base.
IV. SWOT ANALYSIS
Refer to table 1 for SWOT analysis.
Core competencies include brand acknowledgement and high purchasing power. Most consumers already recognize this product. High purchasing power helps purchase materials at the cheapest possible price, consequently reducing the cost of production. J&B possesses potential to produce a “go-to” drink. An increased understanding in marketing, advertising, sales, and research and…...

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