Group 3 Chick Beer

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NATIONAL UNIVERSITY

Manila, Philippines

ISSUES FOR DEBATE: MANAGEMENT DECISIONS AND STRATEGY FORMULATION

CASE 3: CHICK BEER

A. Possible concerns or problem


Possible concerns or problems related to Chick Beer's management decisions and
strategy formulation could include:
1. Using stereotypically feminine images and language: Chick Beer's branding and
marketing approach especially targets women. This strategy could be regarded as
enforcing gender stereotypes and alienating other consumer groups, including potential
customers who are males who would be interested in the product.
2. Brand exclusion: The term "Chick Beer" itself may be interpreted negatively by women
or as condescending, reinforcing gender stereotypes and restricting the brand's appeal to a
particular demographic. This can cause unfavorable reactions and harm the brand's
reputation.
3. Narrow Target Market: By focusing just on women, Chick Beer could be reducing the
size of its possible clientele and market share. The fact that many women like a wider
variety of beer varieties than only those generally associated with a feminine brand may
be overlooked by this method.
4. Chick Beer's dedication to social impact and business responsibility may be called
into question. The brand's attempts to promote women's concerns outside of marketing
initiatives, such as funding women's education, assisting women in the brewing business,
or promoting gender equality, may be questioned by stakeholders. Maintaining credibility
and a favorable brand impression will need a sincere commitment to these issues.

These are only a handful of the potential issues or worries that may develop during
the process of making management decisions and formulating a strategy. Managers can be
better equipped to make wise decisions that will support the success of their firms by knowing
these challenges.
Several ethical dilemmas might come up throughout the process of making
management decisions and formulating a strategy, in addition to the challenges or problems
already stated. Managers may have to make choices that harm customers, staff, or the
environment, for instance. In these situations, it is crucial for managers to thoroughly assess
the ethical implications of their actions and to act in the best interests of all stakeholders.
Making management decisions and developing a plan is a difficult and complex task.
However, managers may improve their chances of making wise decisions that will support the
success of their businesses by knowing the potential issues or concerns that may develop and
by being conscious of the ethical implications of their choices.

GROUP 3  Lorena, Lucena, Macaraig, Pineda, Seno, Tantoy, Vallo  MGA19B


NATIONAL UNIVERSITY
Manila, Philippines

B. Possible strategy and decision/s that must be made by the company.


According to an article written by Paula Forbes, chick beer is a beer that is marketed
to ladies. The product is using the usual lady things such as color pink, little black dress logo,
low carbs, and six-pack purse-like packaging. From this, it seems like chick beer tried to be
different, unique, and distinctive from other beer brands which they expected to gain loyal
customers as they specifically identify women as their target market, but contrary to what
they expected, it created problems for their product image and brand value. As much as the
chick beer management wanted to innovate, they should have conducted thorough study about
this kind of perception.
With the identified problems, it is mostly concerned with the product’s stereotyping
of gender which involves perception of what they want and what they like to purchase,
restricting brand to certain demographics, and boxing the brand image to a particular target
market. With the improving perception and mindset of consumers, stereotyping is something
really big for a lot of people which causes the problem of chick beer, that is why it is
advisable that the product’s management should ensure the following:
1. Product offering inclusivity: inclusivity means considering all gender perceptions, all
types of individuality and behavior, and ensuring that there is no one being left behind or
outcasted. With the strategy that chick beer has implemented, they should try to improve
the branding of their products. According to the case study provided, although chick beer
is marketed to women, it does not equate that their beer has lower alcohol effect than the
usual, with that, they should focus more on offering distinct features such as taste, quality,
and price than dividing possible market demographics to appeal unique to customers.
2. Widen the target market: in connection with the stereotyping issue, it limits the number
of possible customers. It was stated that women drink 25% of beer sold in the US in
which chick beer probably expected that they would get that by creating beer designed
specifically for women. It can be true to some extent, but looking deeper, this strategy
limits the target market as it boxes the product solely for women and outcasts other
potential customers. With this crisis, chick beer management should ensure to slowly
target a lot more customers by improving their product and making it available to
everyone and not centered to any specific demographic group. Although from a business
perspective, it is good that they have identified their target market, they should make it
more friendly and open for other types of gender.
3. Provide more genuine dedication and commitment to all stakeholders: chick beer
attempted to support women’s concern which may be questionable as it may appeal that
they are just doing it out of marketing to gain more customers. With this, the company
should ensure to be involved in more programs that support women and other gender
types to protect the company's image. Consumers are now inclined to what is happening

GROUP 3  Lorena, Lucena, Macaraig, Pineda, Seno, Tantoy, Vallo  MGA19B


NATIONAL UNIVERSITY
Manila, Philippines

around them and are much more selective with the product that they support. With this,
being true to the value, programs, and involvement of the company is a great strategy to
retain stakeholders and attract more customers.
4. Conduct thorough research and continuously seek customers’ feedback: one of the
key strategies for a business to grow and go along with the demand of customers is by
continuous research and seeking customer’s feedback. With research study, the
management can identify the behavior and perceptions of different kinds of customers
which they can use to improve and deliver quality products. Also, customers’ feedback
can fill in the gap of information that the business needs to create enhancement to their
existing products, and most importantly it is the source of primary data that they need for
their products and operations.

Discussion Questions:
1. Is the name and packaging of Chick Beer patronizing to women, or is it empowering to
turn what has been, at times, a derogatory term on its head?
The perception of the name and packaging of Chick Beer can vary depending on
individual perspectives and personal experiences. Some may find it empowering to reclaim a
term that has been used “derogatorily”, while others may view it as patronizing or
perpetuating stereotypes. It's crucial to acknowledge that there is a range of perspectives on
this matter. Proponents of Chick Beer might argue that the name and packaging aim to
challenge the male-dominated beer industry and create a space that is more inclusive for
women. They might view it to celebrate femininity and cater to women who enjoy beer but
have felt excluded or marginalized by traditional beer marketing strategies. However,
detractors could counter-argue that the name "Chick Beer" sustains gender stereotypes by
linking women exclusively to a specific kind of beer or implying that women require a
separate product. They may contend that this reinforces the notion of women as a niche
market and implies that women should only consume products explicitly designed for them.
But in the end, whether the name and packaging of Chick Beer are perceived as empowering
or patronizing is subjective and differs from individual to individual. It is essential to actively
listen to diverse perspectives and have meaningful discussions about gender representation
and marketing to gain a better understanding of the various viewpoints on this matter.

2. How effectively does Chick beer create differentiation to draw in female beer drinkers?
How successful do you think the grand could be?
Breweries have been increasing their effort to appeal to women consumers as they
realize that this market segment is significant and growing. Creating differentiation is a
common marketing strategy for businesses to attract specific target markets. For the business

GROUP 3  Lorena, Lucena, Macaraig, Pineda, Seno, Tantoy, Vallo  MGA19B


NATIONAL UNIVERSITY
Manila, Philippines

to be successful, it is essential to consider conducting market research, understanding


customer preferences, and competing with the current market trends.
Some breweries have tried to stand out from the competition when it comes to
attracting female beer drinkers by developing branding, packaging, or marketing strategies
that are feminine – one attempt at this is Chick Beer. In this case study, a beer named Chick
Beer was developed by a woman and exclusively marketed for ladies. It aims to challenge the
perception that beer is primarily a male-dominated beverage and to create a more inclusive
drinking experience. The brand's marketing focuses on themes such as empowerment,
independence, and breaking gender stereotypes.
While some female beer drinkers may find the Chick beer concept appealing and feel
more connected to the brand, however, some may not find it compelling and not influenced
by gender-specific marketing. Gendered marketing can be convincing for some products, but
Chick Beer is an exception. Chick Beer has drawn a lot of criticism and unfavorable remarks,
and they didn't seem to meet consumer demand until their company no longer operates. In the
end, the success of Chick Beer or any similar brand in attracting female beer drinkers depends
on many factors, including the quality of the beer, the overall brand experience, the success of
marketing and communication strategies, and the target market preference.

3. What recommendations would you have for Shazz Lewis to enhance her chances of
success in the beer market?
With all the criticisms that Chick Beer has received throughout its release to the
market, it is evident that recommendations should be considered by Shazz Lewis to enable the
enhancement of her product and truly succeed within the beer market. The first and crucial
aspect that Lewis should enhance to guarantee her success within the beer market is
understanding her target market. This was one of the main issues of Chick Beer’s negative
criticism as it has yet to fully understand the market that she was targeting, which is why to
change these criticisms positively she should conduct much more extensive research one that
appeals to the preferences, habits, and needs of its consumers.
In line with this, another factor which was heavily criticized was the quality, taste,
and marketing of Chick Beer. It was advertised as a beverage which is lighter than usual beer
and has smooth notes which prevents or lowers the drinker’s chance of burping. Many took
this description as somewhat offensive as it comes off as belittling the consumers themselves.
In order to address such negative connotation and misunderstanding between the market, it
may help if Lewis seeks to address the tastes and quality that her consumers would want from
further research, in terms of marketing Lewis can seek to find a more fun alternative way to
introduce her product to consumers that will not seem to cause a misunderstanding. It is
important to remember that female beer drinkers vary from their form of expression, the

GROUP 3  Lorena, Lucena, Macaraig, Pineda, Seno, Tantoy, Vallo  MGA19B


NATIONAL UNIVERSITY
Manila, Philippines

product was introduced in such a stereotypical way of a woman's view which caused the
uproar of negative comments, which is why Lewis can also enhance this by introducing
different varieties of the brew and packaging which would encompass all types of female beer
drinkers and address the issues at hand.
Additionally, a factor might lead to issues with Chick Beer's management decision
and strategy formulation. To properly maintain the brand's reputation and authenticity, Chick
Beer's management decisions and strategy development are crucial. Building a solid and
sustainable brand reputation requires striking the ideal balance between appealing to the
target audience and upholding integrity and authenticity. The success of every firm depends
on excellent financial management, which is another important factor. Chick Beer's
management choices and the design of its plans should consider variables including pricing
tactics, cost control, revenue generation, profitability, and long-term financial viability.
Finally, customers now demand firms to show that they are committed to sustainability and
social responsibility. Chick Beer's management decisions and strategy formulation should
incorporate sustainable practices, ethical sourcing, environmental considerations, and
community engagement to align with these expectations.
To sum up, to enhance her chances of success in the beer market, Shazz Lewis should
focus on thorough market research, refining the target audience segmentation, developing
unique beer offerings, and building a strong brand identity. Prioritizing product quality,
establishing strategic partnerships, embracing sustainable practices, fostering consumer
engagement, exploring collaborations, staying ahead of market trends, and ensuring sound
financial management are also key recommendations. By implementing these strategies,
Shazz Lewis can position Chick Beer for success and stand out in the competitive beer market

References:
Gerdemen, D. (17 October 2019). ‘Chick Beer’ for Women? Why Gender Marketing Repels More
Than Sells. From https://hbswk.hbs.edu/item/chick-beer-for-women-why-gender-marketing-repels-
more-than-sells?
fbclid=IwAR1xXGCig9lIbf8BE24QEUPEt7H8ntDUyuvlcpQv4kot1bZZ33fKMlGYvtw

GROUP 3  Lorena, Lucena, Macaraig, Pineda, Seno, Tantoy, Vallo  MGA19B

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