PRO-FORMA MARKETING BUDGET19 PLAN CONTROL19 SOURCES21 EXECUTIVE SUMMARY This paper examines opportunities for Brewery Vivant, a regional brewery in Grand Rapids, Michigan, to increase sales to reach their target of 5,000 barrels a year. An analysis of the company’s market positioning within the industry, current marketing mix, SWOT analysis and interviews were conducted. Brewery Vivant is part of the craft brew industry, a segment that continues to outpace overall beer consumption. There are numerous brewers within the local community, some of whom are growing quite rapidly.
This suggests an optimistic outlook for this segment, though material costs, particularly imported hops, can be a risk to profitability. In addition, many beer enthusiasts are also home brewers. An examination of Brewery Vivant’s marketing mix indicated that the product is strong and corresponds with their price positioning, distribution is covered by multiple distributors and expanding out even to Chicago. The recommendation presented in this paper is for Brewery Vivant to boost sales by increasing awareness of the brand and encouraging dining at their pub.
The promotional efforts should focus on the following: * Encourage craft beer fans to visit the pub * Attract food enthusiasts (“foodies”) – a new target market * Promote the upcoming outdoor expansion Recognizing that Brewery Vivant is a small business, promotional activities will need to remain low cost. With this in mind the communication channels will leverage social media, publicity and activities at the pub. A focus will be on incentives to visit Brewery Vivant and can range from coupons to hosting events. For instance, beer and food pairing sessions would help attract “foodies” who might otherwise not consider visit a brewery.
COMMUNICATING WITH THE CUSTOMER1.0 What is Integrated Marketing Communication?"Integrated marketing communication simply recognises the need to plan and build-up all relevant marketing communications so that they work together in harmony to greatest effect with greatest efficiency"Pickton and Broderick (2001)In its simplest form, it is the "process of integrating all elements of marketing ...
Brewery Vivant’s goal may be considered modest, but their chosen path is remain a great company, not a large one. The recommendations provided in this paper will help ensure their goal is achieved. Part I – STRATEGIC PLANNING BUSINESS MISSION * Strategic Business Unit Brewery Vivant is a brewery that also has a pub, with a vision to make craft beer and offer a food that complements it. The focus of their plan will be to have business growth in sales from 2,750 barrels per year to 5,000. The intent is to do this through a combination of promoting their beer election, food choices and unique brewery environment. * Core Benefits Brewery Vivant offers a unique selection of Belgian-inspired brews for craft beer enthusiasts with a cuisine is meant to complement the beer and vice versa. The location of East Hills is an up and coming neighborhood, with little boutiques and specialized restaurants in walking distance popping up. Brewery Vivant, located within East Hills, is formed from a refurbished funereal home which offers unique ambiance to food and beverage selections. INTERNAL SITUATION ANALYSIS Customer: User Profiles * Market Segments
By volume, 80% of craft beer was enjoyed by white (non-Hispanic) consumers, over half of them in the 21-44 year age bracket. More than 75% earned at least $50,000/year, and 43% were college-educated. This market segment strengthens Brewery Vivant ability to sell higher class beer with complementary food, because this market is looking to spend money on quality, something this brew company prides themselves on. Despite its continued growth, the craft beer industry faces a mounting awareness that reaching lower-income and multicultural beer drinkers may represent a challenge for further growth (http://www. everagemedia. com, 2013).
* Motivators for Customers The biggest motivator to customers of Brewery Vivant at this time is the ability to provide of good beer at a competitive price. For those who know it, additional motivators would be the ambiance of the location, and the food choices they offer, but because this is a lesser known motivator, Brewery Vivant would like to focus on the promotion of these things. * Customers’ Unmet Needs Some customers may wish for wine or liquor options; this is something that the owners of Brewery Vivant are not interested in at this time.
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Having a specialized focused allows them to have the best possible products. Also, there are no thrifty options for food which some customers may desire. Food is selected based on quality and its ability to pair with the beers that are offered; the owners want to stick with their high standards. * Purchase decisions Men typically in their mid-20’s on up are the main customers who make the decision to purchase their product. They do see a big spectrum of ages purchasing their beer. While men are the majority of customers, women are a growing market and mostly Caucasians.
Brewery Vivant’s price point and style tends to attract a more educated consumer. (Kris Spaulding, Brewery Vivant 2013) * Current and potential customers The current customers include a loyal customer base that returns often and is very interested in Brewery Vivant beer. They also attract beer enthusiasts who buy cans in regional specialty liquor shops. Foodies are a potential new customer segment, who may become attracted to Brewery Vivant’s cuisine and appreciate how the beer complements the food. * Geographic Aspects
Brewery Vivant is currently a single building in Grand Rapids. There are plans to upgrade the building with an expansion and to provide a green beer garden. The brewery itself is a 20 barrel, three vessel brew house, with 20, 40 and 60 barrel cylindrical conical fermenters. (Brewery Vivant, 2013) They distribute their product regionally and in the urban Chicago and Detroit area. * Frequency and Quantity The frequency of visits by patrons to Brewery Vivant varies. The goal would be to increase the frequency through a more loyal customer base.
They currently have a loyalty program called The Monk Club, but it could be added to and improved upon. The “quantity of use” for beer varies from person to person, as expected with a brewery. The goal of the brewery would be to increase the quantity consumed per visit- safely. Marketing Strengths and Weaknesses: * current market Share and Expected Market Growth Brewery Vivant’s current market share is relatively small, selling 2,750 barrels (a barrel is 2 kegs) per year (Brewery Vivant, 2013).
1. Introduction: The retail industry plays a significant role in the development and growth of overall economy of a nation. In countries such as UK, retailers have positioned themselves in such a way that they are able to cater all types of customers’ needs and wants. (Economic Survey, 2012). The major retailers of UK are Tesco, Sainsburys, Asda, John Lewis, Marks and Spencer etc. Even when the ...
Their target growth is to distribute 5,000 barrels per year to MI and the greater Chicago area.
They are also looking for other possible small regions for growth, but they keep in mind the concern that the size of their current facility may not be able to keep up with demand. * Current Competitive Advantages In addition to their unique product offering of Belgian craft beer, Brewery Vivant also has a sustainable competitive advantage with their packaging and production. The use of cans is more sustainable than glass due to lower transportation costs, which provides both economic and environmental efficiency. The cans are also a differentiator in the craft brew category, standing out among the typical glass on the shelves.
Another advantage is that any store that sells craft beer typically carries their beer. They are in all major supermarkets and many small retailers – about 40% in major ones and 60% in small. They are on tap or sold in cans at numerous bars and restaurants as well. Overall, Brewery Vivant sells about half of their packaged beer to stores/retailers and half to bars/restaurants. (Kris Spaulding, Brewery Vivant 2013).
Their most impressive competitive advantage is their customer service, with a knowledgeable staff, many of whom are certified Cicerones.
They are able to meet customer needs and questions and retain a high loyal customer base. Brewery Vivant’s main improvement opportunity lies with advertising and sales promotions. They need more marketing for brand recognition, because a lot of people don’t know who they are or that they are also a pub that serves food. Currently Brewery Vivant does not have a big budget to fix this problem and is looking for inexpensive ways to correct it. Managerial Strengths and Weaknesses * Corporate Culture Brewery Vivant’s culture is highly entrepreneurial; the owners also helped start New Holland.
Their philosophy, as stated on their site is: Against traditional philosophy of running a business, we have purposefully planned and designed our brewery to keep it small. We have chosen to take the path to become a great company, not a large one. Brewery Vivant’s Mission Venn Diagram * Skills and Weaknesses of Managers A major strength that they have is that most staff members are Cicerone certified (Brewery Vivant, 2013).
Executive Summary This report contains a marketing plan for a new and affordable repair shop in the San Antonio market. The new shop will be launched in the market and will tend to all types of customer’s needs, such as; tune-ups, engine diagnostic (free), oil change, engine cleaning, will be an exclusive high end smart watch. The gold and platinum watch with marble dial will be launched. The use ...
The word Cicerone is the chosen word to distinguish individuals with proven expertise and knowledge in selecting, acquiring, and serving beer.
Only individuals who have passed the test of knowledge and tasting skill can call themselves a Cicerone. This is a similar term to that in the wine world, sommelier (www. cicerone. org, 2012).
While the cicerone certification is a strength some managers and staff hold, other mangers and staff are relative new, so training and consistent messages are a concern which can temporarily weaken the staff as a whole. Financial Strengths and Weaknesses * Current Profits, Cash Flows, Cash Reserves, Debt Capacity In 2012 Brewery Vivant theoretically made just over $200K in profits which was just above 8% net income.
Since much of that was tied up in inventory rather than cash in the bank, their bank account generally has about $20-35K in it. They have the business because they love beer and the community, not because they make a lot of money. This is different than many other alcohol-related businesses. As with many small craft breweries, their margins aren’t big since the distributor gets most of the mark-up to the retailer and they pay a lot of alcohol-related taxes. (Kris Spaulding, Brewery Vivant 2013) * Company’s Hurdle Rate and Required Rate of Return Brewery Vivant doesn’t have a formula to calculate their hurdle rate.
They look at where their cash is and if they can afford to spend capital. Decisions are based on how well those things match and how badly they need the equipment, enhancement or anything else. They have chosen to avoid borrowing more from the bank if possible and so far they have been able to do that after their initial start-up costs. (Kris Spaulding, Brewery Vivant 2013) EXTERNAL SITUATION ANALYSIS Competitors: Their Influence * Principal Competitors Microbrewery: A brewery that produces less than 15,000 barrels (17,600 hectoliters) of beer per year with 75% or more of its beer sold off-site.
Introduction 961 Beer has a fascinating history which illustrates to aspiring entrepreneurs that with hard work and determination, even crazy business ideas are able to succeed. At a time when building were being destroyed and the city of Beirut, Lebanon was in shambles, the founders of 961 Beer decided to move forward with founding Lebanon’s first craft brewing company – a surprising fact because ...
Microbreweries sell to the public by one or more of the following methods: the traditional three-tier system (brewer to wholesaler to retailer to consumer); the two-tier system (brewer acting as wholesaler to retailer to consumer); and, directly to the consumer through carryouts and/or on-site tap-room or restaurant sales. (Brewers Association, 2013) Brewpub: A restaurant-brewery that sells 25% or more of its beer on site. The beer is brewed primarily for sale in the restaurant and bar. The beer is often dispensed directly from the brewery’s storage tanks.
Where allowed by law, brewpubs often sell beer “to go” and /or distribute to offsite accounts. Note: BA re-categorizes a company as a microbrewery if its off-site (distributed) beer sales exceed 75%. (Brewers Association, 2013) Contract Brewing Company: A business that hires another brewery to produce its beer. It can also be a brewery that hires another brewery to produce additional beer. The contract brewing company handles marketing, sales, and distribution of its beer, while generally leaving the brewing and packaging to its producer-brewery (which, confusingly, is also sometimes referred to as a contract brewery).
Brewers Association, 2013) Regional Brewery: A brewery with an annual beer production of between 15,000 and 6,000,000 barrels. (Brewers Association, 2013) Regional Craft Brewery: An independent regional brewery who has either an all malt flagship or has at least 50% of its volume in either all malt beers or in beers which use adjuncts to enhance rather than lighten flavor. (Brewers Association, 2013) Large Brewery: A brewery with an annual beer production over 6,000,000 barrels. (Brewers Association, 2013) * Direct and Indirect Competition Brewery Vivant is considered a Brewpub.
Their direct competition would be other brewpubs in the area, including but not limited to Harmony Brewing Company, Founders Brewing Co. , Rockford Brewing Company, Grand Rapids Brewing Co. , HopCat, The BOB and Perrin Brewing Co. Brewery Vivant indirectly competes with larger breweries and pup style restaurants in the Grand Rapids area including but not limited to Flanagan’s Irish Pub, Green Well Gastro Pub, Pub 43, and Bull’s Head Tavern. * Market Shares Held by Competitors Craft brewers sold an estimated 11,468,152 barrels of beer in 2011, up from 10,133,571 in 2010 (Brewer’s Association, 2013).
"WHAT IS QUALITY?" QUALITY MANAGEMENT STRATEGIES ASSIGNMENT 1 A MSC IT MANAGEMENT Martin Gallin agh 10 th February 2003 What is Quality? NB: Throughout text, Product = Both Product/Service. Definitions Using the correct Tools (resources: raw materials, machinery, time and people) in the right way so that they are converted to the required outputs. It is in the process that quality is made or ...
Their biggest local competitor, Founders Brewing Company has been around for over 15 years in the Grand Rapid’s area and has built up a large following. Starting small, this company is now expanding at an incredible rate, where in 2012 they brewed more than 74,000 barrels of beer and are expected to make 140,000 barrels in 2013. (Ellison, 2012) * Stand Out Competitors’ Products or Services One major feature that the competitors have that allows their product to stand out is name recognition. Many of the other Brew Pubs in the area have been around longer, and have established their name in the community, which can create more loyal customers. Ease of Entry into the Market This market is not as easily entered as a normal pub this is because of the added brewery aspect the start up cost is much higher. Money would need to go into additional equipment and unique beer recipes need to be created and tested. It costs roughly $450,000 to $800,000 to start a small brewery and finding distributors willing to take on unproven brands can be onerous. Brewpubs can cost a few million dollars, depending on their size. (David Kesmodel, Wall Street Journal, 2009) Another cost for new entrants to consider is a liquor license which is $250 per year for Beer and Wine.
There are also added taxes based on the quantity of beer produced and sold. (Department of Labor & Economic Growth, 2013) * Product Positioning Brewery Vivant is a higher end Brew Pub and they would like to continue further into that direction, where they combine distinct beer flavors with good, high quality food. They are and want to continue to position themselves as an environmentally friendly company that not only produces beer and has wonderful food to pair it with, but also one that leaves no ecological footprint * Strength of Suppliers, Buyers and Distributors
Brewery Vivant suppliers are strong, getting most of the yeast from Belgium and other parts of Europe. They like to stick with suppliers who are environmentally aware and true to the flavors of old style Belgium beers. Their hops are from Czech Republic, France, Germany, Slovenia, USA and their grains are from Canada, France, Germany, UK, or the USA. (Brewery Vivant 2011) Michigan does not allow self distribution so they have 4 distributors, Kent Beverage for the West MI market, Rave for the Detroit metro area, Imperial for the rest of the state and Windy City for Chicagoland. Kris Spaulding, Brewery Vivant 2013) The buyers are an area where Brewery Vivant would like to increase their strength. They build profits on how many people are willing to purchase their product. Whereas they are profitable now, they are looking to increase their buyer strength and continue to expand. One factor that affects the buyer is the pricing of the product. Below is a price comparison of some Brewery Vivant competitors in the IPA style, and primarily includes local craft breweries. The pricing of $9. 99 is utilizing the price ending tactic and while $9. 9 for a package is in line with competitors, there are less cans, and thus less ounces provided per package. In addition, the cans are a package differentiator. * Threats of Substitute Products or New Entrants With Breweries there is always the threat of substitute products. The basic products and types of beer stay the same where as flavors, aromas, clarity, body and conditioning vary. Because there are so many different way and recipes to make the same type of product there is a large threat of substitute products and new entrant competitors.
There are the home brewers who could do it themselves but then there are the regulations that go along with selling it. Industry Analysis * Product Life Cycle The Product Life Cycle of a brewery is development, introduction, growth, maturity and decline. Current Brewing Vivant is in the growth stage of the cycle. It started with the development of the recipes, taste testing and design of its product and has since moved to the introduction when it opened the brewery in 2011. Currently they are looking to increase their market share. Product Life Cycle Graph Economic Structure There are 21 breweries, beer pubs, and other beer competitors in the Grand Rapids area. This creates a wide variety of competition for Brewery Vivant. (Experiencegr. com, 2012) Breweries in the United States have been on the rise in recent years, at most recent count they are at an all time high as of last year. * Attractiveness of the Industry’s Size, Growth, and Profits In the Grand Rapids area craft breweries have grown. Being a higher end market and often perceived as luxury brand products makes craft brew beers more attractive.
Growth of the craft brewing industry in 2011 was 13% by volume and 15% by retail dollars while domestic craft brews decreased. (Brewers Association, 2013) Current Brewery Vivant revenue is about $750,000 brewery and $1,600,000 in the pub, with food being about half of the 1. 6 million and beverages the other half for pub sales. They expect to grow about 10-20% above that for the pub and plateau. (Kris Spaulding, Brewery Vivant 2013) External Environmental Analysis * New Technologies Beer making has been around since the 6th Millennium BC and has minimal changes to the “how” in the creation of it.
That being said there has been a surge of new technologies when it comes to being green; whether that means anything from reducing water waste to electricity. The new technologies have has such a positive effect on Brewery Vivant thus far. Brewery Vivant is the only LEED brewery in the universe. According to a pair of studies that offer the first broad-scope examination of the economics of green buildings, green buildings really do it all: lower operating costs, boost rental rates, increase sales values and even improve occupancy rates. (Adam Austin, Business Week 2012).
It is our belief that any new technologies would only improve our product. * Government Regulations Until recently, nearly all federal regulations involving alcohol were issued by the Treasury Department Bureau of Alcohol, Tobacco, and Firearms (BATF), established by the Federal Alcohol Administration Act of 1935 and the 1968 Gun Control Act. However, in 2002, under the Homeland Security Act, the Bureau was divided. The part remaining in the Department of the Treasury was renamed the Alcohol and Tobacco Tax and Trade Bureau (TTB).
A new Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) was formed in the Department of Justice.
The TTB is responsible for administering and regulating the operations of distilleries, wineries, and breweries, as well as importers and wholesalers in the industry. (Apex Publishing, 2012) Some of the specific functions TTB is responsible for as related to beer brewing include: Brewery Application Approval: To qualify as a brewer you must complete and submit to TTB the appropriate forms along with any other required documentation. TTB will usually complete our screening and processing within sixty days of receipt of a completed Brewers Notice packet (Apex Publishing, 2012).
Excise Tax Collection: U. S. Government involvement in the beer industry also includes taxation. The current federal excise tax on beer, in effect since January 1, 1991, is $18 per barrel for 31 gallons. However, a reduced tax rate applies, at a rate of $7 per barrel, to the first 60,000 barrels of beer removed for consumption or sale by brewing companies that do not produce more than 2,000,000 barrels of beer per calendar year. The federal excise tax regulations also include other rules, including for removals without tax payment and inter-brewery purchases. (Apex Publishing, 2012)
Labeling and Advertising Approval: The TTB implements and enforces a broad range of statutory and compliance provisions to ensure that alcohol products are created, labeled, and advertised in accordance with Federal laws and regulations. Brewers must follow the labeling and advertising requirements found at 27 CFR Part 7, Labeling and Advertising of Malt Beverages and 27 CFR Part 16, Alcoholic Beverage Health Warning Statement. (Apex Publishing, 2012) Brewery Vivant’s owners were originally workers at New Holland Brewery, they knew about the regulations when entering into their own business and were therefore thoroughly prepared for them. Effects of Inflation, Recessions, Credit, and Currency Exchange Inflation has been significantly driving up the cost of beer since over a year ago. A six pack of Dogfish Head is now at $12, when a person was paying around $11 just 2 years ago. (THFBEER_NATE, 2009) This happened for a couple of reasons. First, economic pandemonium. Notice in the first chart below that dollar is down from where it was two years ago, and has been plummeting in recent months. Now note the second chart below gold is inversely proportionate to the dollar. Were the dollar back on the Gold Standard, instead of fiat, the two currencies would rise together.
When the dollar falls, prices rise. If comparatively speaking to the global economy, a dollar is still a dollar but really only buys 1/2 of what it is, a merchant must double the cost of their product to adjust, as do suppliers of raw goods that go into the product, leading to exponential and at time, hyperinflation. Globally, gold as currency is trustworthy while the dollar (or any fiat currency) is not. (THFBEER_NATE, 2009) Commodities such as grain, corn, etc. are historically the first to rise (limited quantity) and thus, beer is quite prone to the ills of inflation.
The micro brewer’s product must rise more than the Big Boys because he has less purchasing power. They cannot negotiate as much as a brewer who buys 100 times more malt at each pop. (THFBEER_NATE, 2009) Market collapses have historically permanently affected the cost of goods. You will never again see a gallon of gas sell for a buck. On the other hand, a second cause can lead to inflation that may be temporary. I refer to them as “acts of God,” i. e. hurricanes, floods, or droughts. (THFBEER_NATE, 2009) The craft beer industry is still reeling from 2008? s hop shortage.
The hops did come back with a vengeance in 2009. Although there were was such an abundance of crop that they were actually left on the vine to rot the price did not decrease. (THFBEER_NATE, 2009) * Future Population Composition Brewery Vivant would like to extend its population that they serve into the “Foodie” group; allowing people to not just come for the different types of beer on tap, but also the unique, high class food that it offers. * Social or Cultural Trends The trend in the area has been a great surge of brewpubs opening in the area. This saturation can only have a negative effect on the company.
SWOT SUMMARY Strengths (internal) * They have a strong brand image that they are striving for- they know WHAT they want to be, and are working to get there. * LEED certified brewery. * Strong educated staff, who are passionate about what they do. * Loyal customer base * Focus in the type of brews they wanted to use, more of a method then a recipe they want to use. | Weaknesses (Internal) * The owners do not have a desire to grow huge and expand nationally. While this is not necessarily a weakness, it is definitely an area that competitors with this desire may pass them in. Low awareness, especially outside of the Grand Rapids area. * Location * Distribution network| Opportunities (External) * Brewery Vivant is the only LEED certified brewery in the world- this is an opportunity because there is room to market this and grow externally. * Grand Rapids was named Beer City USA, and Experience Grand Rapids, the Destination Marketing Organization (DMO) for Kent County is partnering with all of the local breweries in 2013 to begin a local campaign to ensure that Grand Rapids wins this title again. * Craft brewing is growing while domestic beer production is decreasing. The awareness that is associated with being in the Beer City USA. * There are events in the area to participate in that give free advertising. | Threats (External) * There are many emerging competitors in the Grand Rapids area. This is especially so since Grand Rapids has been named Beer City USA. * With Beer Tourism becoming a really hot item, breweries all over America are actually competing with Brewery Vivant. * Home Brewers in the area are growing * Potential for increased regulations and taxes. | WHAT ARE THE REAL, ROOT PROBLEMS?
The real root problem that Brewery Vivant is experiencing is with their brand image. They currently believe they are only being viewed as a bar that sells beer; however, they are so much more than that. Brewery Vivant needs help to create a better way to promote their brand of their Belgian-inspired beer with their high quality food to the community without having a large marketing budget. CONSIDERATION OF ALTERNATIVE STRATEGIES Considering the Ansoff Matrix: * Market Penetration Considering the Ansoff Matrix, Brewery Vivant has an opportunity to penetrate the market by increasing their current product usage.
It was expressed that Brewery Vivant does not have or is not interested in spending a large amount of their budget on a large marketing budget. Their values are more in line with bringing higher class beer and food together while helping the community. One way that Brewery Vivant can increase their market share in their existing market is to participate in community events, such as restaurant week, The Wood Age Beer Fest, The Festival Street Party and Beer Week. These events are beneficial because the marketing is taken care of by the event team and Brewery Vivant can benefit from more brand awareness. Market Development It was expressed that Brewery Vivant might be interested in extending their beer distribution to new geographic areas; however, they would like to stay within the Greater Grand Rapids and Chicago area. Expanding to a new area would be beneficial to reach their goal of 5,000 barrels sold. They would not however expand their food product line, because this would not align with their local community value. * Product Development To continue to stick with their value of pairing quality food and beer together, Brewery Vivant has opportunity to expand their current menu to their existing market.
For example, they can expand their seasonal beer calendar in addition to continuously introducing new entrees. * Diversification Although diversification could be a valuable strategy to increase market share, Brewery Vivant would not benefit from this approach if they want to stick to their current values. An example of how they could implement this would be to enter the spirits and wine market. Considering other strategies: * Re-Position Current Product Mix According to Kris Spaulding, co-owner of Brewery Vivant, there is a large opportunity to re-position Brewery Vivant in the marketplace as a “foodie” destination.
The brewery is known for beer, but many do not realize that their menu goes beyond the basic pub grub. Grand Rapids is becoming a food and beer destination and there is a chance to capitalize. In addition, Brewery Vivant is very passionate about being a sustainable business. Many people do not know this, so sustainability is another area that the brewery can focus on to re-position themselves in the eye of the consumer. * Market Position Brewery Vivant currently is positioned as a niche craft brewer. This is primarily because they are focusing of a specific style of their brewing, the Belgium style.
Another factor of the market position is focusing on their LEED certification. They are the only one in the WORLD with this title in the brewing market, which leaves room to capitalize and grow; which could help in sustainability. * Marketing Mix Brewery Vivant is not at this time looking to preempt portions of their marketing mix. For example, they rely heavily on their Meijer, Family Fare and other beer specialty stores for their distributors and to keep the authentic style of their Belgium beer. They will maintain their current supply chain, including imported hops. Global Marketplace At this time Brewery Vivant is not interested in entering the global marketplace. They are more passionate on concentrating on being a local community atmosphere where their high quality food is a main focus, along with their regional beer distribution channel. Therefore, they have room to grow in this current market. Part II TACTICAL MARKETING MIX IMPLEMENTATION Brewery Vivant is in the process of improving their venue with an outdoor beer garden. In order to increase sales, Brewery Vivant will need to get the word out about the new improvements.
In addition, there is a large opportunity for the brewery to capitalize on food sales in addition to beer. They have a unique cuisine that is not typical “bar food. ” This cuisine can attract the foodie crowd if the proper marketing strategies are implemented. Promotions * Promotional Objectives and Tasks 1. Increase foodie customers 2. Increase awareness about venue improvements. * Advertising and Selling Emphasis The relative emphasis will be on low cost advertisements and promotions, which in turn will increase sales. Brewery Vivant does not have a large advertising budget, so many of the efforts will be of the grassroot nature. Trade Versus Consumer Promotions The campaign and recommendations will be consumer focused. Advertising * The advertising message will be to promote the space as a destination for both food and beer. Because there will be new additions to the venue, Brewery Vivant should reach out to a new customer segment as well as encourage the current customer base to continue to return. Trade Promotions * Trade promotions will not be utilized. Consumer Promotions * Consumer promotions will be utilized, especially promotions to encourage beer and food pairing.
We recommend that the loyalty program, entitled the Monk Club, include beer AND food discounts. Public Relations * A variety of public relations efforts shall be utilized to maximize the Brewery Vivant brand to the public eye. Press releases, feature articles, and word of mouth are all great sources of PR that can be capitalized upon to help promote the business. * Social Media, including but not limited to Facebook and Twitter will be main sources of spreading the advertising message. Publicity * There is a great deal of opportunities that exist for Brewery Vivant to gain publicity.
It is important that the brewery continue to participate in community events such as Grand Rapids Restaurant Week, and citywide promotions such as Cool Brews. Hot Eats. (sponsored by Experience Grand Rapids, this promotion is a match made in heaven for the goal of bringing more foodies into Brewery Vivant. The only rule of the promotion is that participating restaurants must pair food with beer. ) * In addition to continuing this participation, Brewery Vivant must be creative in coming up with new ideas that customers both new and existing will find interesting.
We recommend that Brewery Vivant host pairing sessions that teach individuals how to pair food with beer of the Brewery Vivant variety. Hosting educational sessions like that described can be fun for the customer and also educates them so that they are more likely to return to an establishment that serves both quality food AND beer. * On site events are also important promotional tools. We recommend that Brewery Vivant host an opening day party for their new beer garden. This party could include promotional giveaways and encourage customers to engage with the brand via social media channels through contests and promotions.
It may also be beneficial for Brewery Vivant to bring in live music to the venue. * Advertising in food publications in addition to the beer publications that Brewery Vivant is currently promoting in is an important avenue to explore to achieve the goal of becoming a destination for food as well as beer. * Brewery Vivant has a very sustainable and green business model. It is our recommendation that they seek out sustainability publications and groups of consumers that are interested in sustainability to promote their brand to. Selling Currently there is one staff member that handles marketing, PR, sales, and other aspects of Brewery Vivant. With the launch of the new venue improvements and increased promotional volumes, we would suggest that Brewery Vivant hire an intern or part time staff member to support these initiatives. In addition, there may be a future need for additional servers. Aside from these recommendations, the current sales structure is satisfactory. Customer Service * Brewery Vivant prides itself on having a knowledgeable staff base. All servers are Cicerone Certified. As sales increase, staff may need to increase as well.
It will be important to ensure that new and old staff alike stays abreast with industry trends and continuing education in order to provide the best possible customer service. * Because Grand Rapids is Beer City USA, there has been a large increase in Beer Tourism over the past year. Tourists are traveling long distances to visit the many breweries in Grand Rapids. With that, many of the customers that visit Brewery Vivant may be tourists from out of town (this will be even more so after the launch of the national Pure Michigan commercial for Grand Rapids in June).
There is a new program being launched in Grand Rapids in August called the Certified Tourism Ambassador program. This program will help frontline employees better serve the public. We recommend that Brewery Vivant employees become Certified Tourism Ambassadors for Grand Rapids (CTA Network. ) Direct Marketing * The internet will play a large role in the marketing of Brewery Vivant. The target market is aged 21-44, which aligns with the market that has a large internet presence. PRO-FORMA MARKETING BUDGET The promotional efforts outlined above are expected to support an 80% growth in sales: from 2,750 to 5,000 barrels of beer a year.
Being a small enterprise, many of the promotional efforts will be low cost initiatives such as social media and pr. The primary promotional costs will be in advertisements for events, such as the opening of the outdoor expansion, ongoing events and food promotions. The promotional budget is below. PLAN CONTROL This business plan will be measured by increased beer and food sales. In addition, the effectiveness of the promotional activities will be indicated by ad response rates, such as coupon redemption, social media analytics and attendance of events in the new space expansion.
The following illustrates projected growth rates in terms of barrels and revenue: Annual Revenue Annual Beer Sales Growth The anticipated sales increases are based on the production capacity of the brewery, optimistic outlook of the growing craft brew market, sales relative to regional competitors and positive impact Brewery Vivant’s building improvements will have on attracting existing patrons more often and new customers. SOURCES * Clark, Jim. “Who is the New Beer Consumer. ” Beverage Media. Beverage Media Group, 01 May 2012. Web. Retrieved February 2013. lt;http://www. beveragemedia. com/index. php/2012/05/who-is-the-new-beer-consumer-brewers-ready-to-say-ihola-and-more-to-expand-reach/> * Spaulding, Kris. “Brewery Vivant. ” February and March 2013. Email and Personal Interview. * Cicerone. 2012. Web. Retrieved February 2013 <www. cicerone. org> * “A Passionate Voice for Craft Brewers. ” Brewers Association, 2013. Web. Retrieved February and March of 2013. <www. brewersassociation. com> * Ellison, Garret. “How to Flirt with Bankruptcy. ” Mlive. com, Oct. 5, 2012. Web. Retrieved February 2013. lt;http://www. mlive. com/business/west-michigan/index. ssf/2012/10/founders_15-year_anniversary. html> * Kesmodel, David. “In Lean Times, a Stout Dream. ” Wall Street Journal, 3/18/2009 Web. Retrieved February 2013. < http://online. wsj. com/article/SB123733628873664181. html> * Department of Labor & Economical Growth. State of Michigan, 2013. Web. Retrieved February 2013. < http://www. michigan. gov/documents/dleg/MLCC_Code_and_Rules_343265_7. pdf> * Aston, Adam. “It’s true: Green buildings do boost sales, rental and