Root Distillery

STRATEGIC ANALYSIS

                                                   (CASE STUDY 2)

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SUBMITTED TO:- Marcel Joaquin          SUBMITTED BY:- Gursewak Singh(7827655)

ANSWER1:-

According to me, Deep Root Distillery can achieve its goal of $80,000 in per year income. I think it is differentiated enough from its competitors. Deep Root Distillery provides products with a unique value that will attract the customers. It is a supplier to itself and is connected to the industry that it relies on for supplies, giving it leveraging power. It has tapped into a tourist customer’s base that has a high profit potential. It has room to expand like their demand for a mail order options, it has sufficient production capacity as it has built up a $40,000 stockpile in its first year of production. On the other hand, Deep Root Distillery received positive feedback trip advisor, a popular site for tourists.

ANSWER2:-

1)  In year 2005, Deep Root Distillery acquired full organic certificate from Atlantic Certified Organic.

2) After certification Deep Root Distillery started to produce more organic fruits.

3) Compiled with PEILCC and Canadian food Inspection agency to acquire all necessary approvals for perfect Distillery.

4) The initiative four product were well received in the market and had started to began good profile with the customers.

According to me, in this question I need to describe the SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of the Deep Root Distillery.

STRENGTHS OF DEEP ROOT DISTILLERY:-

• Company has ability to produce good quality products.
• DRD has a captive source of organic fruits.
• Has worked through the regulatory requirements.
• It has succeeded in creating loyal customer base in the market.

WEAKNESSES OF DEEP ROOT DISTILLERY:-

• Deep Root Distillery dependent on the tourist market.
• There is no major marketing or advertising budget available.
• Limited product range.
• The product choice strategy is not clear.

OPPORTUNITIES:-  

• PEI has a positive external reputation for good quality organic or natural products that DRD can yet capitalize on to a greater extent.
• No major direct competitor in the spirit market in PEI, since the few PEI based distilleries are so far emphasizing mostly different products.

THREATS:-

• There is high competition in the market that the company has to readily respond the competitors in terms of quality product on efficient price.
• Numerous substitutes available in the tourist souvenir market.

ANSWER3:-

The DRD is a mini player in the market beverage industry, and not mature with the markets growing competition. However, the company has been using its own resources to complete in the market, and offer the product that could complete the product in the market. Company has many ideas to advertising their products but the budget of the company is not enough for higher level promotion.

There are number of marketing tricks that will help Deep Rood Industry in marketing:-