Republic of the Philippines

Cavite State University

CCAT Campus
Rosario, Cavite
(046) 437-6659/ (046) 437-9505 to 9508
cvsu.rosario@gmail.com
www.cvsu-rosario.edu.ph

DEPARTMENT OF MANAGEMENT STUDIES

In Partial Fulfillment of the Subject Requirement

Product Management

A Case Analysis of
“ The Consolidated Brewery Corporation ”

Submitted by:

Grace Josephine D. Manuel

Heaven Grace R. Allegre
Juvy Ann V. Sarmiento
Hansley J. Salazar
Lovely C. Villa

Submitted to:

Richard P. Perez

April 2021
I- SUMMARY OF THE CASE
The Executives of The Consolidated Brewery Corporation are having discussion
about the launching of their products while the Chairman was just listening the
conversation, The market research director, Marlo Benitez was the pirated employee from
P&G and the one whose against in the way of the other executives wants about
launching their products, according to him they have first to go through the basic steps,
conducting a Focused group interview, Consumer attitude survey and Test market,
whether if they fail at least they will know where to start all over again.
The Sales manager, Joe Pineda was the former employee of San Miguel Corp.
His confident in launching simultaneously some of the four products that might compete
SMC Products such as the Macho light beer to match lagerlite, A Macho regular pitted
against the regular San Miguel, A Macho Dark to fight Cerveza Negra, and an export-
quality Macho to compete with also to the export product of SMC, He doesn’t in favor
to Mr. Benitez wants.
Peter Go Liao, the finance manager, reminded that they already incurred P256 Million in
investments on plant and equipment, and over P86 Million in loans from their banks
with the rate as sky high and re-ticking away like monstrous taxi meter and his
concerned was to go ahead with the launching so that they start getting some revenues.
David Tiu, the production manager just laughed to what Mr. Benitez suggestions,
and said to Mr. Joe to take the market researcher director to the beer house that would
be best form of market research according to him with sarcasm.
The Chairman Mr. Carlos Lim intervened and asked Mr. Benitez for how long will the
series of test take and how much will the whole thing cost? The market researcher
replied it will take about 9 to 12 months and cost P220 thousand and he already has a
memorandum. However the chairman addressed the group to pause a little before
plunge into the launching, he asked to talk again after one week. He wanted to all his
executives to review the whole thing and put thoughts together, keep an open mind.
Mr. Benitez given a chance to go for his research to make them convinced
together with his proofs.
II- TIME CONTEXT: The time when Mr. Benitez the market research director disagree
to the other managers about launching their products.

III- VIEWPOINT: Market researcher director Mr. Marlo Benitez for Marketing Strategy
in market research through test market, focused group interview, customer attitude survey.

IV- PROBLEM: There is a need to conduct of marketing research through test market to
ensure that the product will be penetrate or reasonable to buy by the market.

V-OBJECTIVES:

Need: To find out through the marketing research, who are the possible consumer of the
product, Sales analysis , and information regarding competition

Want: To improve the company’s competitiveness and become one of the leading brand
that provides quality products.

VI- AREAS FOR CONSIDERATIONS- SWOT

STRENGTHS

1. The Consolidated Brewery Corporation has a capability to provide enough funds for
product development that will become an advantage to defeat the competitors.

2. The company has a well-experienced managers whose an experts in their respective

field which is very advantageous for the company in decision making.

3. The company has four types of beer products to launch simultaneously to compete San
Miguel Corporation products.

WEAKNESSES

1. One of the managers Mr. Marlo Benitez disagree the launching that caused of delay
in product launching, generating of income, and the loans in banks are continue adding
interest.
2. The Consolidated Brewery Corporation will have to incur another cost of P220,000 for
Mr. Marlo Benitez 9-12 months research and test series in the market.

3. Afraid to take the risk and be rejected in the market.

4. The company has a loans in banks that interest as sky high eventually they have to
pay for it even though the money from loans are no longer gain profit for the company.

OPPORTUNITIES

1. There is a development of sales in the market and the company because of having an
expert in sales management came from rival company that has a knowledge on how to
make products more advance and better to other competitors.

2. There is an increase in the market and the company if they can offer cumulative
discount to the intermediaries to take advantage to the competitors so that it will tend to
repeat buying and gain customer trust and loyalty . It would be a great opportunity to be
more profitable if all the executives work together.

3. The opportunity to widen the products by putting it in the convenience store so that
the consumers easily find the products.

THREATS

1.There is a possibility that the products to launch might be rejected in the market or
the consumer don’t like in it.

2. There is a chance to face loss if the company do not meet the customer expectations.

VII- ALTERNATIVE COURSES OF ACTION

ACA #I: There a need for further market research in product development through test
market to have an information coming from the consumer about their preference in
regards to products.
The Test Market launch would be carefully monitored for such aspects :Initial purchase
and penetration of the target market, repeat purchases by the target market after one, two,
three months, depending on the product; attitudes toward the new brand versus
competitive brands, Recall advertising message and Reaction of competition ( in terms of
pricing, sales promotion, or frequency of advertising in the test market area). The
common strategy use by company with newly products to launch, Test market is similar
to the market launched but only difference is, it will starting at the small scale of
consumer after that they will continue to the other places to broadening the product, and
also the only representative of the national for the type of product being launched.

Advantages:

1. It will increase the sales of the company

2. Using the test market it would be a lower chance to face loss because everything will
be monitored.

3. More confident to fight competitors

4. Through test market it can give the firm a clear “GO” or “NO GO” signal for
launching the product nationwide.

Disadvantages:

1. The Company will incur additional cost for test market

2. It will take time for test market

ACA #II: There is a need for Focused Group Interviews a qualitative type of interview,
that the main output is the investigation of consumer motivation and the development of
insights that could lead eventually to successful marketing of the product. It will come
up to market segmentation through demographic that also considers ages, status so that
they will know what product corporate to the consumers.

Advantages:

1. Focused Group Interviews are particularly effective for products with psychological
overtones or status symbolism.
2. Results of the interview may be used as a basis of checking against a bigger,
statistically projectable base.

Disadvantages:

1. This company will render additional cost for the focused group interview.

2. The firm will give payment for the professional fee of psychologist interviewer it is
also costly.

ACA #3:There is a need for consumer attitude surveys, a large-base survey of households
using a structured questionnaire, can also be used for any type product or service. they
are used to discern consumer trends for an existing product, or to discover consumer
needs and wants that could lead to formulation and development of an entity new
product.

Advantages:

1. In brief consumer attitude surveys try to determine attitudes toward the product,
buying patterns and etc., that will help the company in decision making.

2. Market surveys are not too costly or expensive.

Disadvantages:

1. The effectiveness of the surveys are ultimately depends on the quality of the analysis
of survey results and their imaginative application on product development.

2. Costs of a consumer attitude survey vary, depending on the total number of

respondents, the geographical reach of the survey with this type the company will hardly
predict of how much are going to render for it.

VII- RECOMMENDATION:

The ACA#1 is the best concept to use in solving company conflicts in The
Consolidated Brewery Corporation because in this area where, they are really lacking, the
company must conduct market research through Test Market that would be best in
launching new product in the market, given that it carefully monitored the following:
initial purchase and penetration of the target market; repeat purchases by the target
market after a month and more depending on the product; attitudes toward the new
brand versus competitive brands, and reaction of competition. this is the smartest
concept to use over the rest of two ACA because it can predict if the firm will “ GO”
or “NO GO” for launching and this maybe a little bit costly but it can give assurance to
be profitable.

VII- PLAN OF ACTION

Time Person- in -
# Action Description Frame charged

Test Market, Focused Group Determine the brand 9-12 Market

1 Interviews, Consumer awareness level, attitude months researcher
Attitude surveys toward the product etc.

Considers the demographic, 1-2 Sales

2 Do the market segmentation
psychographic, behavioral, months management
and geographic
segmentation to determine
How, what, why and when
To sell

funding the company Depending

Capable to finance the expenses in product on Finance
3 Product development development whether it is approval management
for the equipment or plant of the
board

Product operations and The one who manufactures Depends Production

4 manufacturing with compliance to the on the management
standard operating job order
procedures
Developing and Overseeing the operations of
implementing market the entire marketing 6-8 Marketing
5 strategies and objectives, activities of the company months management
provides much needed ,thus better decision can be
feedback to top management made