Marketing Plan for Sierra Nevada Brewery

The purpose of this document is to create a commercializeing cast for Sierra Nevada Brewery (SNB) specifically, developing a plan to expand the harvest-home line depth by set up a saucy crop variation that incorporates Sierra Nevadas traditional ale, with the flavor of blackberry. First, objectives are clearly realized, followed by a situational analysis using a SWOT protocol. A grocery analysis is performed found upon the STP procedure, which directly leads to the marketing strategy. Financial projections are provided, along with strategy to implement the marketing plan, which leads to the last segment evaluation and control metrics, which result be used to analyze the efficiency and effectiveness of the marketing plan.SNB is a financially strong comp any(prenominal), as represented by research and their ranking as the 2 maker of maneuver beer in the United States. They impart ranked themselves as being an elite craft beer producer by using high gear- feel ingredi ents, producing esteemed beers, being socially responsible and ethical, and focusing on a recess market. The need and desire to be innovative, in conjunction with SNBs goal to have a brewery on the eastern United States Coast in order to enhance their go forth chain management, led to the proposal to participate the of blackberry bush Ale their first flavored ale. Since SNB has effectively marketed all of their beers, adding the blackberry Ale followed a similar strategy.The target consumers are educated, middle-to-upper-middle enlighten professional men that refer to themselves as beer connoisseurs, and revere artisanal brewing. blackberry bush Ale bequeath be case and marketed as a premier craft beer and placed in urban areas with an upscale atmosphere. Pricing volition be set competitively at $9.59 for a 6-pack of 12oz bottles. Based upon research, trends, and SNBs history, therecommendation is for SNB to launch Blackberry Ale in the first quarter of 2014, mirroring the grand open up of the new East Coast brewery in North Carolina. Blackberry Ale is evaluate to increase SNBs profitability and value thereby, helping to underwrite the change magnitude strength of the SNB family sucker. market Plan for Sierra Nevada BreweryCompany OverviewSierra Nevada Brewery (SNB) was officially founded in 1979, in Chico, calcium. This small, college-town, located 90 miles north of Sacramento, sits at the radix of the Sierra Nevada foothills, for which the brewery is named by and by. What makes this brewery unique is its history. Ken Grossman, the founder and master brewer of SNB, started experimenting with fundamentbrew in 1970, under the forethought of his friends father this is where his passion for brewing beer began to flourish.In 1976, Ken partnered up with Paul Camusi to take home brewing to a high level. Since hops were scarce for home brewers in the 1970s, Ken traveled to Yakima, Washington, to earn whole-cone Cascade hops, which produce a citru s-pine flavor and aroma that makes SNB distinct. SNB is renowned for its illustrious beers, specifically for the hop-forward brewing method, which adds characteristic flavors and aromas to the beers. As the demand for SNBs esteemed beers rapidly began to outpace supply, Ken expanded into a topical anesthetic warehouse, brewing out of defunct stainless steel tanks that he recovered from dairy farms in California and Oregon. Since 1980, SNB has continued to expand and capture a larger portion of the market share.Objectives and GoalsSNB wants to provide high tone of voice beer to consumers throughout the United States furthermore, they want to introduce new specialty mathematical products, such as flavored beers. With the determi race and resources that SNB possesses, they have spotlighted themselves into becoming the top-rated premium brewery in the U.S. correspond to McCurry (2012), Sierra Nevada is the No. 2 U.S. craft brewer in terms of sales behind Sam Adams. It plans to hav e an initial capacity of 300,000 barrels and allow grapher 90 (para. 2). An increasing demand for SNB beer in the Eastern U.S., combined with sumal transportation costs has necessitated the government activity of an East Coast brewery.A major objective of SNB is to build a brewery on the East coast,allowing them to efficiently market their premium beers to implicate all invokes east of the Mississippi River, tour adding value to the overall organization. McCurry goes on to state For a decade, Sierra Nevada served eastern markets very efficiently, using a lot of piggyback rail with refrigerate containers. Bottle-aged beer has to be refrigerated, and its expensive to run across the country, but the company did it very madely. As the market grew in the East and capacity constraints started to be reached in Chico, it became obvious that what is needed is a new brewery and it should be make in the East to address cost and service issues. (para. 9)The addition of an East coast b rewery should strategically placement SNB above Sam Adams, therefore claiming the number one spot in craft beers, and further increasing the SNB brand. Specifically, the objective is to expand their product line and break into the plowing flavored ale market. Situational AnalysisSNB holds a relatively strong position in the beer fabrication. Their strengths are perhaps the organizations sterling(prenominal) asset. SNBs state of the art, on-site R&D Department, has positioned them to be an elite brewery, by providing pristine and innovative beers. This allows them to differentiate themselves from competitors. The investment in the information of brewing made Sierra Nevada widely regarded as one of the most sophisticated research and quality focused breweries in the world (Sierra Nevada, 2013, para. 23). Additionally, SNB prides itself as being a progressive-green and socially responsible company the nations largest private solar array provides 1.5 megawatts of electricity, while the on-site auditorium houses community events.Strengths Weaknesses Opportunities Threats On-site R&D 2 craft brewery Expand to the East coast where SNB has a small presence. Intense competition from separate craft breweries Strong brand name Small company limited resources for promotions and advertising Enhance supply chain management Anti-drinking campaigns Green and socially responsible sustainability One manufacturing location Growing preference of consumers for higher quality craft beers and flavored ales. Health concerns of consumers about beer consumptionOne key element that adds value to SNB is Ken Grossmans consecutive concern for the environment and the community Their installation of four 250-watt co-generation fuel cells realise them a visit from governor Arnold Schwarzenegger. They have long had the first largest private installation of solar panels in the nation. They engage in passionateness recovery, CO2 recovery, water recycling, bought their own cows to eat t heir spent grains, and they arrogatet believe in buying carbon offsets.And now, they have a new composting systemall presented with again, its not the greatest ROI from Grossman, but its the way we want to do things around here, its part of our story. (Chang, 2010, para. 4) SNB sets the bar high for organizations in being ethically and socially responsible. Although SNB can save money by cutting corners, they continue to take the high road and focus on the well-being of the community, as well as the environment.Market AnalysisCurrent trends and selective information indicate craft breweries are gaining market strength. The long term dominance by large beer manufactures is declining. According to Ciccone (2012), In 2011, all top 25 craft breweries experienced increases in revenues. Craft breweries recorded 15 percent growth in volume of barrels shipped, compared to a 1.5 percent decrease in the beer industry overall (para. 2). SNB received atomic number 42 place honors during 2011 in Best-Selling Craft Beers. 2 Sierra Nevada brew Co.Location Chico, Calif. Barrels Sold in 2011 858,000 9.2 percent increase since 2010 Popular Brands Sierra Nevada Pale Ale, Ovila Abbey AlesJulia Herz, Craft Beer chopine Director for the Brewers Association, stated,A light American lager no longer satisfies every try. Americans have substantial a discerning palate, so if its not world class quality, it wont survive (Ciccone, 2012, para. 3). The market for craft beers is growing, and SNB is locating itself to dominate the craft beer market. SNBs strength is becoming more apparent, as they continue to gain market share every year. Clarke (2012) stated that a 2011 study indicated craft beer grew by 16.3%, the largest growth by any beer category furthermore, 11% of craft beers growth arose from new drinkers in 2010, compared to an astounding 46% in 2011. An import element for SNB to consider it that Millennials account for 46% of new craft beer drinkers.The market for craft beer continues to grow at a rapid rate additionally, all of this growth is occurring during difficult economic fourth dimensions. The overall success of SNB can largely be attributed to its marketing strategy. They segmented the market by focusing on beer drinkers in the U.S. market. SNB further segmented the market down to craft beer consumers. The craft beer segment does not include low-income, uneducated, party-oriented beer drinkers. SNB targets virile craft beer consumers, as marketing strategies have indicated that targeting woman can have an adverse effect. Clarke (2012) goes on to show that women are apt to project contemptuous ridicule towards beers that are marketed as being women-friendly, especially if the beer is specifically targeted to them.Specifically, SNB targets College educated, middle-to-upper-middle class professional men, ages 21-44 years old that refer to themselves as beer connoisseurs, and revere artisanal brewing. 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 Craft beer connoisseurs, as they prefer to be called, savor the distinctive taste and aroma of craft beers (Clarke, 2012, para. 6). With the target consumer being established, SNB can effectively position themselves.Craft beer connoisseurs are already assured of the prestigious SNB image therefore, positioning the new craft beer innovation will ensure that consumers perceive the product as a premier, black berry-flavored craft beer, created for the affluent craft beer connoisseur. Marketing StrategySNBs product, a blackberry flavored ale, is the first flavored beer thatthey will produce. There are a lot of new flavors out there, and beer drinkers are spontaneous to try brands they havent tried before because they trust the category, Gatza says. (McCurry, 2012, para. 62). By offering flavored ale, SNB strategically appeals to its current consumer based, as these consumers will want to try the latest creation, while increasing market perceptivity by acquiring new consumers who are intrigued by the new product and want to try it.The new product is Blackberry Ale an amber colored light ale with the subtle flavor and deep notes of blackberry. This premier brew will be packaged in dark glass bottles. Tastings (n.d.) emphatically encourage the use of dark glass bottles, as they subdue the photochemical effect produced by daylight, specifically, the ultraviolet spectrum, which can create off flavors and degrade the freshness of the beer. Additionally, twist-off crowns dont protect beer against oxidation as well as pry-off crowns therefore Blackberry Ale will include pry-off crowns. An adhesive label, containing product information and displaying the illustrious SNB logo, will be applied to each bottle. Finally, the label will display the brand-Sierra Nevada Blackberry Ale thereby, using a family name brand strat egy. Distribution StrategyBlackberry Ale will be distributed strategically through select retailers as to protect SNBs premier image, while increasing market penetration Taprooms Upscale restaurants High-end bars and clubs Gourmet specialty stores Beer and wine bistros Prosperous grocery storesIndirect distribution using established partnerships will facilitate the placement of Blackberry Ale into the selected retailers. This link provides a list of all established distributor partnerships throughout the U.S. http//www.sierranevada.com/distributors/ Pricing StrategySNBs price will reflect a premium price as their products are known for being high-quality and in accordance to the product positioning. They already benefit from having an effective price strategy therefore, Blackberry Ale will be priced in-line with SNBs current beers that arealready on the market, while being competitively priced with SNBs strongest craft beer competition, Sam Adams Blackberry Witbier. Therefore the p rice for Blackberry Ale will be set at $9.59 for a six pack of 12oz bottles.Promotion StrategyIn order to promote the latest addition to the Sierra Nevada line, a multitude of media and promotions will be used to facilitate the products access into the market Advertising PromotionSocial media including Facebook, Twitter, Linkedin, and Google+ Advertising in key magazines The Beer Connoisseur, DRAFT, Ale Street News, Northwest Brewing News, The Celebrator Beer News, massive Lakes Brewing News, Yankee Brew News, Brew Your Own, Beer Advocate , Ask Men, Maxim, Esquire, GQ, Details, and Sports Illustrated Sales PromotionFree 4oz sample coupons (limited time only-90 days)Free 4oz samples when product is only available on-tap (limited time only) $2.00 off precedent coupons (expires after 90 days)Buy 3, get 1 bleak (buy any 6-pack of SNB beer, get 1 free 6-pack of Blackberry Ale-90 day promotion) All promotions will terminate after 90 days of product introduction to assess the effective ness of the promotions and determine future courses of action. Financial ProjectionsThe chart below, provided by the Brewers Association, clearly illustrates the continuous growth of the craft beer industry. Based upon research and the strong financial position of SNB, adding the Blackberry Ale brand to the organization can only increase the profitability and value of the organization. Each time SNB has added depth to the Sierra Nevada line, the company has only prospered financially, and in terms of gaining exposure, which adds value to the organization. Additionally, the community has benefited from SNBs success, as SNB has been proven to be a strong player in social responsibility.SNB anticipates the output signal of a new, East Coast brewery in 2014, will support its objectives, and while increasing the profitability of the organization. The addition of a second brewery strategically adds value tothe organization as it enhances supply chain management, increases awareness, whil e potentially doubling production and capacity. it is estimated that after introduction sales of Blackberry will grow, reaching 1% of SNB beer sales after 1 year. Blackberry Ale is expected to break even and become a profitable product, based on expected sales and costs of introduction into the market. Implementation PlanBlackberry Ale has already passed all necessary guidelines established by SNB. As the fourth quarter quickly approaches, SNB will continue its successful strategy of producing Celebration Ale a super demanded brand that is synonymous with the holiday season. SNB is fearful that launching Blackberry Ale during this time would conflict with the established and successful release of the seasonal Celebration Ale therefore, the launch of Blackberry Ale into the market is planned to coincide with the grand opening of the new brewery, under construction in North Carolina, which is the first quarter of 2014.Evaluation Metrics and ControlSNB has determined it will analyze t he addition of Blackberry Ale, ninety days after the launch of the product into the market. All introductory promotions will terminate after ninety days to access the future profitability of adding flavored ale to the brand line. Additionally, Blackberry Ale will be analyzed again each month, for the next three months to determine how the new product sales without added promotions. After six months, a thorough analysis focusing on sales, market share, brand recognition and profitability will be used as evaluation metrics, to determine the profitability, and future of Blackberry Ale.