Marketing Specialists at Napanee Beer Co

question 142

Essay

Marketing specialists at Napanee Beer Co. developed a new advertising campaign for summer sales. The ads were particularly aimed at sports events where Napanee Beer sold kegs of beer on tap. The marketing group worked for months with a top advertising firm on the campaign. Their effort was successful in terms of significantly higher demand for Napanee Beer's keg beer at sports stadiums. However, the production department had not been notified of the marketing campaign and was not preparedfortheincreaseddemand.Thecompanywasforcedtobuyemptykegsatapremiumprice.
It also had to brew some of the lower-priced keg beer in vats that would have been used for higher-priced specialty beer. The result was that Napanee Beer sold more of the lower-priced keg
beer and less of the higher-priced products that summer. Moreover, the company could not initially fill consumer demand for the keg beer, resulting in customer dissatisfaction. Use open system perspective to explain what has occurred at Napanee BeerCo.