Since the decision of establishing a company is made, it is done with the intention to expand, to grow, to gain a good position in people`s mind, in order to be more than just a company but a brand in which people could feel comfortable. Now, I will present a case in which a bad decision, maybe caused by a bad marketing research or the lack of one, can lead the company to a failure.

This case focuses on the purchase of “Cerveceria Suramericana” ( an ecuadorian Brewery) by AMBEV  (a multinational Brewery which is the 5th largest brewery in the world). This multinational brewery decided to buy “Cerveceria Suramericana” in 2003, when this company was already well-known for their products, like the beer “Biela”. This ecuadorian beer company had worked hard for many years to compete and gain market against the company “Cerveceria nacional”, producer of “Pilsener” beer, which is identified as the ecuadorian beer. So hard was the effort made by “Cerveceria Suramericana” that it started to gain a lot of customers, it had such a good position in people`s mind that people started to say “let`s have a biela” referring to the desire of having a beer. But in the time of the purchase of the company, AMBEV decide to rename the product in order to introduce to Ecuador one of their popular products that is “Brahma beer”.

The problem lies in the fact that this decision made AMBEV to start from zero and to try again to earn the market that “Cerveceria Suramericana” already earned, and meanwhile they let a lonely “Pilsener” to monopolize the ecuadorian market, and to own the space of that company that once was so well positioned, and now is still trying to regain what once was theirs.