On
February 11, 2013 Beam Inc. announced that they would be lowering the alcohol
content in their Maker’s Mark bourbon by 3% to 84 proof instead of the standard
90 proof. The dilution of the alcohol
content was intended to address a supply issue. Makers Mark sales increased by
14% in 2011 and 15% in 2012. The plan was that Makers Mark would temporarily
lower the alcohol content to keep up with the increase in sales while at the
same time expand their distillery operations. However, Makers forgot to account
for the customer backlash.
Bourbon
drinkers flocked to the internet in droves to voice their outrage at the
watering down of their product. To the customers delight Maker’s Mark promptly issued
a statement. “Over this past week we have been extremely humbled by the
overwhelming response. Our customers have spoken loud and clear and we have
heard them. Effective immediately, we are returning to 90 proof, which it has
always been since we started. We are starting that tomorrow morning at the
distillery (Rob Samuels).” Ultimately the decision means that customers would occasionally
rather put up with a shortage or a price hike then have the quality of their
product diminish.
As a strategic
sourcer and procurement provider this is something that you must always keep in
mind when sourcing a product. Ultimately both the client and the end user must
be satisfied with the product. It’s a fairly simply philosophy if the end user
of the product is not satisfied they will no longer want to buy it. You can’t
just diminish the quality of a product and expect the same results. Just like
in this case many times the customer would rather pay more or occasionally deal
with supply issues then have their product tampered with.
Post A Comment:
0 comments so far,add yours