Beam Inc.: The Dilution of the Maker's Mark Brand (A) and (B)
Maker’s Mark may be part of a premium spirits portfolio but maintaining its authentic history is still important to the brand. When faced with the challenge of growing demand and an insufficient supply of whiskey, the Maker’s Mark management team needs to decide if diluting their whiskey is the best way to meet demand.
- To highlight the conflict that arises when a company tries to adjust what it thinks might be best for its sales and how those decisions affect various stakeholders;
- To provide an example of a company that makes a public announcement and doesn’t get the reply it was expecting;
- To encourage analysis of a business strategy that may have been flawed and evaluate other possible alternatives that may have been better received;
- To demonstrate how a company can adapt to changes in its industry but maintain their consumer base;
- To encourage discussion about how social media affects business strategies and decisions.