Scaglia Swot Analysis

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- Price:

In my opinion the most adequate price policy would be price skimming, described as a strategy used by a business to charge the highest initial prices that customers are willing to pay, then reduce its prices after the demand of the first customers is satisfied in order to attract another, more price-sensitive segment. This strategy is useful when the higher price is interpreted as a sign for high quality, which tourists and locals are willing to pay when they perceive the difference in terms of taste, culture, identity and authenticity. With different LIB companies competing in the same market, Scaglia needs a slightly different and higher price in order to insinuate the products uniqueness and higher quality. Organizations often use this technique to recover from the costs to create the product.

- Place:

The supermarket sector is a more price-sensitive environment; this is why I would not advise Scaglia to start selling its new local identity products here. In order to sell its product it would need to offer promotions, which is not the best way to enter a business when aiming to offer a high quality product which differentiates itself from competitors. This would only create confusion in customers’ minds. I would therefore recommend to initially only offer the product in hotels, restaurants and bars, especially those at beaches, where tourists spend the majority of their time while on vacation (from late in the morning to around 8pm). Likewise, locals are more willing to spend more on beer when eating out, rather then at home. Once the product has reached break even and the demand of the initial customers is satisfied, it could then introduce its signature local identity beer in supermarkets, by offering a special promotion such as buy 2 bottles and get the 3rd for half price, and still keep offering limited editions and seasonal beers exclusively in RHC environments. This would then make the product available to a more price-sensitive segment as described above in the product section.

- Promotion:

In order to create visibility along beaches, Scaglia could enhance campaigns such as designing bottle shaped beach showers or changing rooms. Furthermore, the company could create billboards, banners, sky ads and posters on the beach and use the radio. This last media channel should be used especially between 12 – 8pm when the majority of tourists lie on the beach. Banners could be designed for ferries and planes travelling to and from Corsica, and as exterior ads for buses and shuttles on the island. In order to further create brand awareness and recognition, the business could sponsor events such as festivals and family activities. Additionally, Scaglia should advertise itself in the Corse Matin, which is a newspaper read by both tourists and locals. Nonetheless, the company could advertise itself in bars and restaurants by customizing these environments with branded beer coasters, umbrellas, menu supports, ashtrays, etc. The business could design a monetary incentive plan for sales people in order to boost sales, and non-monetary incentive plans, such as a free trip to Corsica or a free trip to the brewery, to attract more customers during the lower-season periods such as the beginning (April) and ending of the summer season (October). Lastly, I highly recommend creating a strong social media image, as this has increased in recent years and it is the easiest and cheapest way to reach out to a large amount of customers.

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