Scaglia Swot Analysis

1. Scaglia SWOT – Analysis:

1. Segmentation criteria / Target market:

I would recommend that Scaglia  creates a LIB product, which fulfills the needs of both tourists and locals in Corsica. By entering these two segments, the business would ensure a year round production. In other words, tourists would boost sales in high-season, whereas locals, could push sales during the winter, which remains off-season.

Characteristics of target market:

Tourists (over 2 million during the summer time) and locals (250,000 people):

1. Positioning:

I would recommend Scaglia to position its brand as an authentic, local business, which offers a unique essence of Corsica: “Experience the unique tastes of Corsica” (several options to choose from, to satisfy different consumers’ needs – please see product description for further information). Additionally, the company should position itself as a family business model, which is involved in every step of the manufactory; from creating the product to distributing it.

1. Porter’s strategy:

I would recommend the business to choose the Focus strategy - Differentiation, defined by Porter as an approach to concentrate on particular niche markets by understanding the dynamics of that market und unique needs of customers within it. The key to success is to add value to the product or service as to increase differentiation, therefore demonstrating a better understanding of your customers’ needs. This strategy is usually recommended for small businesses, which are not able to serve a broader market, because if they do, they risk competing against better-resourced corporations.

1. Product:

I would recommend that Scaglia creates a signature local identity beer with a degree of alcohol between 4º and 5º, which is classified as a luxury beer. This segment overall enjoys a higher average consumption rates (1 or more beer per day, especially during the summer time), as it has a lower alcohol level than for example special beers (5º of alcohol or more) and is therefore easier to drink. This type of beer is undeniably on the rise and should therefore be available all year around. Additionally, Scaglia could offer limited editions and seasonal products, in order to fulfill more customers’ needs and wants. This strategy would create several options so that beer drinkers would have more than one choice. In other words, this would mean that tourists and loyal regular customers would always have the opportunity to consume the traditional signature beer, but at the same having a further option to experience a new product (a different taste of Corsica). This strategy should offer different characteristics (such as different color, brewing techniques) and capture the essence of seasonal Corsican flavors, such as offering for example a refreshing blend of citrus in the summer time and a slightly richer flavor chestnut blend in the winter time). The shape of the signature beer should be a small glass bottle, as the majority of LBI consumers prefer bottles to canned beer (only, 10,2%). Traditionally, consumers associate bottled beer with higher added value. The color of the beer should be dark brown; in order to protect the beer from UV rays as to guarantee its quality. Still, the company could think of a unique shape, in order to attract consumers’ attention and differentiate itself from the competitors, as this does not have serious consequences. However, for a seasonal or limited product the company could consider a canned beer, as recent studies have proved that canning is more convenient and practical (less expensive; easier to produce; facilitates transportation; more environmentally-friendly, etc.) but also better for a beer’s quality, as cans prevent heat, light and air from getting in. However, if the company should go for a canned limited or seasonal beer, it is imperative beforehand to train everyone in the distribution channel (especially people who are directly upselling the products to the costumers, such as sales assistants in shops or food and beverage servers in RHC sector), the reason being, the majority of people have a different perception of a canned beer and don’t know the advantages of it, but only associate only negative characteristics to it.