We explained how Joe has just bought into a small craft brewery that closed its doors during COVID. He had just hired you as the new brand manager to help get his business going and build a full marketing plan, which important as he needs to go to the bank to get a loan to so his has the proper cash flow to run the business.

Again he has asked for your help in rebranding the company and the beers that they sell. The plan is to also launch a new brand called The Sour Seed into the Ontario market. It is a crowded field in the craft beer category, but it this beer made with Crabapples and there is no other product like it in the market, with its tart (sour) but sweeter taste profile. He is launching this product in a 473ml sized can into this market segment where prices range from $2.25 to $3.50.

So in completing the business plan Joe, needs your help in answering the following questions.

1. Pricing

In trying to think about what price point Joe should launch some other new beers, like an IPA, you have just showed him a video from MyLab on SmashBurger to give his some knowledge on Pricing Strategy.

First of all what is Unique about the way a SmashBurger is cooked?

SmashBurger wanted to be a premium price product vs McDonalds and other fast food outlets. Why could they charge this premium?

In setting up their menu of pricing their product, they wanted to be different from other Fastfood outlets. First explain what they said was their pricing strategy in how they present their menu and second, what was the magic price point for consumers to order a burger?

In reviewing this with Joe, you need to explain that there are two main strategies you can price a new product. State what is the difference between Market Penetration and Market Development?