Case Study

Systems Engineer David Castro, decided to incorporate La Cibeles after some experience crafting beer for friends and friends of friends. It is known as the beer of Madrid. This craft beer company is characterized by recovering the flavors of yesteryear. "La Cibeles" beer is characterized by being produced with a high fermentation that is key to achieve a high quality of the product. Likewise, even at the cost of having shorter expiration period, they get a much more natural beer without any additives/preservatives. For David Castro In Spain there is a beer culture but the sector has great room for improvement. In Spain its very common to find mass production beer brands, whereas it is not usual to find several taps of artisan beers (from different graduations, flavors and different basic beer ingredients). However, more and more passionate beer consumers are demanding this kind of specialization. In fact, true beer lovers seek to try new brands, and craft breweries such as "La Cibeles" are taking advantage of that space. According to a recent study, the consumer of craft beer is an adult, generally male, between 25 and 44 years old who values craft and local products, and who consumes the product in a "mature" way, choosing between several options, and drinks beer whilst socializing with friends. "La Cibeles" beer is 100% national. The hops are brought from Len, while the other fundamental raw materials are from Madrid: the barley is grown in Villaverde and the water is from Madrid, as the production plant is located in Legans. Particularly, the brand La Cibeles also tries to reflect its origin, relating this origin to one of the best-known sculptures in the capital of Spain. Currently, they produce a range of 12 craft beers in barrel and dark brown third glass bottles to keep the product tastes/falvors in optimum condition. The most famous are the following: La Cibeles Rubia; La Cibeles Ipa Dry Hopping; La Cibeles Ipa Dry Hopping; La Cibeles Barley Wine; La Cibeles Ipa Davids Ale and La Cibeles Viejo Madrid. To find this beer, you need to walk to some catering establishments specialized in beer, as well as to some specific supermarket chains in the Community of Madrid, where there are shelves specialized in Premium beers (such as the Hipercor Supermarkets). Due to their handcraft value, they make limited production lots, so they carefully select the points of sale. Consumers can also order online for a few months. Precisely, in their online store they sell packs of 6 craft beers from 10.99 euros or packs of 11 beers + 1 glass for 24.99, which places them well above the thirds of generalist brands and above other artisan brands. On the occasion of the pandemic, and to support the hostelry industry, they have launched a marketing campaign on social networks with videos about the most personal stories of the Madrid bars that sell La Cibeles beer with the slogan # Madrileosalosbares. One of the videos is from a bar in Mstoles called "El inBEERnadero"

Questions:

a) Explain Cibeles segmentation Strategy.

b) Explain Cibeles positioning Strategy. Please consider the use of a positioning map of La Cibeles beer, including at least 2 beer brand names you may be familiar with (i.e.: Generalists like Mahou, Heineken, Cruzcampo, Estrella de Galicia, Estrella Damm, Coronita or handcraft beers like La Sagra (Toledo), La Virgen (Madrid), Cerex (Cceres))

c) Identify the attributes of La Cibeles Marketing mix:

c.1) Product

c.2) Price

c.3) Distribution

c.4) Communication