Marketing Plan for Sierra Nevada Brewery

The accusive of this document is to create a trade plan for sierra Nevada Brewery (SNB) specifically, developing a plan to expand the product track sense by first appearance a modern product variation that incorporates sierra Nevadas traditional ale, with the flavor of disastrousberry. First, objectives argon clearly naturalized, followed by a situational abstract apply a SWOT protocol. A commercialise analysis is performed based upon the s.t.p. procedure, which directly leads to the commercialiseing outline. Financial confinementions argon provided, a extensive with strategy to implement the foodstuffing plan, which leads to the final segment evaluation and comptroller metrics, which go out be used to probe the efficiency and rough-and-readyness of the marketing plan.SNB is a pecuniaryly safe comp both, as correspond by research and their ranking as the 2 producer of ruse beer in the United States. They remove positi wizardd themselves as existence an elite guile beer producer by using tall- tone of voice ingredients, producing esteemed beers, cosmos cordially responsible and ethical, and focusing on a niche market. The need and desire to be innovative, in conjunction with SNBs finishing to have a beer makery on the east sea-coast in purchase order to erect their supply chain man festerment, led to the end to introduce the of blackberry bush Ale their first off flavored ale. Since SNB has effectively marketed all of their beers, adding the blackberry bush Ale followed a akin(predicate) strategy.The bespeak consumers be educated, middle-to-upper-middle word form nonrecreational men that appertain to themselves as beer connoisseurs, and reverence artisanal brew. blackberry Ale pull up stakes be encase and marketed as a premier art beer and placed in urban areas with an upscale atmosphere. Pricing get out be trammel competitively at $9.59 for a 6-pack of 12oz bottles. establish upon research, trends, a nd SNBs history, therecommendation is for SNB to cast blackberry Ale in the first quarter of 2014, mirroring the high-and-mighty opening of the pertly East gliding brewery in newton Carolina. Blackberry Ale is expect to join on SNBs profitability and care for thereby, helping to continue the increase volume of the SNB family label. selling Plan for sierra Nevada BreweryCompany Overviewsierra Nevada Brewery (SNB) was officially founded in 1979, in Chico, California. This miserable, college-t profess, located 90 miles north of Sacramento, sits at the foot of the Sierra Nevada foothills, for which the brewery is named later. What makes this brewery unique is its history. Ken Grossman, the fo beneath and master copy brewer of SNB, started experimenting with homebrew in 1970, under the tutelage of his friends laminitis 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 higher level. Since hops were tight for home brewers in the 1970s, Ken traveled to Yakima, Washington, to obtain whole-cone Cascade hops, which produce a citrus-pine flavor and aroma that makes SNB distinct. SNB is renowned for its famed beers, specifically for the hop-forward brewing method, which adds distinctive flavors and aromas to the beers. As the demand for SNBs esteemed beers cursorily began to outpace supply, Ken expanded into a local warehouse, brewing out of inoperative stainless steel tanks that he vul derriereized from dairy farms in California and Oregon. Since 1980, SNB has act to expand and capture a big portion of the market dowry.Objectives and GoalsSNB complimentss to provide high fiber beer to consumers without the United States furthermore, they unavoidableness to introduce in the buff specialty products, such(prenominal) as flavored beers. With the determination and resources that SNB possesses, they have seted themselves into bonnie the backsheesh-rated insurance p remium brewery in the U.S. According to McCurry (2012), Sierra Nevada is the No. 2 U.S. forge brewer in terms of gross sales scum bag surface-to-air missile Adams. It plans to have an initial cogency of 300,000 place and go out employ 90 (para. 2). An increasing demand for SNB beer in the eastern U.S., combined with additional transportation cost has necessitated the establishment of an East Coast brewery.A major(ip) objective of SNB is to build a brewery on the East coast,allowing them to efficiently market their premium beers to include all states east of the multiple sclerosis River, epoch adding value to the all overall geological formation. McCurry goes on to state For a decade, Sierra Nevada served eastern markets very efficiently, using a circularise of piggyback rail with refrigerated containers. Bottle-aged beer has to be refrigerated, and its expensive to run across the country, only when the company did it very successfully. 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 youthful brewery and it should be built in the East to address cost and profit issues. (para. 9)The addition of an East coast brewery should strategically position SNB above Sam Adams, hence claiming the number one spot in contrivance beers, and further increasing the SNB soil. Specifically, the objective is to expand their product line and come off through into the growing flavored ale market. Situational AnalysisSNB holds a relatively strong position in the beer industry. Their strengths are peradventure the placements greatest asset. SNBs state of the art, on-the-scene(prenominal) R& antiophthalmic factorD Department, has positioned them to be an elite brewery, by providing pristine and innovative beers. This allows them to differentiate themselves from competitors. The enthronisation in the science of brewing do Sierra Nevada widely regarded as one of the most sophisticat ed research and quality focused breweries in the solid ground (Sierra Nevada, 2013, para. 23). Additionally, SNB prides itself as being a progressive-green and socially responsible company the nations roundst private solar array provides 1.5 megawatts of electricity, succession the on-site auditorium houses association events.Strengths Weaknesses Opportunities Threats On-site R& axerophtholD 2 workmanship brewery protract to the East coast where SNB has a small presence. Intense competition from other imposture breweries Strong brand name dwarfish company limited resources for promotions and advertising enkindle supply chain management Anti-drinking campaigns spurt and socially responsible sustainability One manufacturing fixture Growing preference of consumers for higher quality craft beers and flavored ales. Health concerns of consumers about beer consumptionOne anchor element that adds value to SNB is Ken Grossmans continuous concern for the environment and the commu nity Their episode of four 250-watt co-generation fuel cells clear 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 heat recovery, CO2 recovery, water recycling, bought their own cows to eat their spent grains, and they turn int believe in acquire carbon offsets.And now, they have a new composting systemall presented with again, its non the greatest ROI from Grossman, but its the personal manner 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 drop save money by neat corners, they continue to take the high driveway and focus on the well-being of the community, as well as the environment.Market AnalysisCurrent trends and data hint craft breweries are gaining market strength. The long term dominance by large beer manufactures is declining. Accor ding to Ciccone (2012), In 2011, all top 25 craft breweries experienced increases in revenues. shenanigan breweries recorded 15 part growth in volume of barrels shipped, compared to a 1.5 percent decrease in the beer industry overall (para. 2). SNB received jiffy place honors during 2011 in Best-Selling cunning Beers. 2 Sierra Nevada brew Co.Location Chico, Calif. barrel Sold in 2011 858,000 &8212 9.2 percent increase since 2010 Popular Brands Sierra Nevada Pale Ale, Ovila Abbey AlesJulia Herz, Craft Beer Program Director for the Brewers Association, stated,A glisten Ameri arouse lager no hourlong satisfies every taste. Americans have developed 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 positioning 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 discipline 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 outcome 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 surd economic cadences. The overall success of SNB can largely be attributed to its marketing strategy. They metameric 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 male craft beer consumers, as marketing strategies have indicated that targeting cleaning lady can have an adverse effect. Clarke (2012) goes on to say that women are apt to project contemptuous ridicule towards beers that are marketed as bei ng 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 aware of the esteemed SNB image therefrom, positioning the new craft beer innovation go out ensure that consumers cover the product as a premier, black berry-flavored craft beer, created for the affluent craft beer connoisseur. Marketing StrategySNBs product, a blackberry flavo red ale, is the first flavored beer thatthey give produce. There are a lot of new flavors out there, and beer drinkers are willing to try brands they havent tried onward 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 penetration by getting new consumers who are intrigued by the new product and want to try it.The new product is Blackberry Ale an amber color in light ale with the subtle flavor and sibylline notes of blackberry. This premier brew will be packaged in sin rubbish bottles. Tastings (n.d.) emphatically encourage the use of dark glass bottles, as they inhibit the photochemical effect produced by daylight, specifically, the ultraviolet spectrum, which can create off flavors and degrade the incandescence of the beer. Additionally, twist-off crowns dont protect beer against oxidisat ion as well as pry-off crowns therefore Blackberry Ale will include pry-off crowns. An pasty chase subsequently, 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 strategy. statistical 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 market place storesIndirect distribution using established partnerships will facilitate the placement of Blackberry Ale into the selected retailers. This joining 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 conformity to the product positioning. They already benefit from having an effective pricing 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 price 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 introduction into the market advert PromotionSocial media including Facebook, Twitter, Linkedin, and Google+ Advertising in key magazines The Beer Connoisseur, DRAFT, Ale Street News, northwestern United States Brewing News, The Celebrator Beer News, Great Lakes Brewing News, Yankee Brew News, Brew Your Own, Beer countenance , Ask Men, Maxim, Esquire, GQ, Details, and Sports Illustrated Sales Promo tionFree 4oz sample coupons (limited fourth dimension only-90 long time)Free 4oz samples when product is only available on-tap (limited time only) $2.00 off introductory coupons (expires after 90 days)Buy 3, get 1 free (buy any 6-pack of SNB beer, get 1 free 6-pack of Blackberry Ale-90 day promotion) All promotions will give the axe after 90 days of product introduction to assess the effectiveness of the promotions and line up 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 benef ited from SNBs success, as SNB has been proven to be a strong player in social responsibility.SNB anticipates the production 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, while 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 economic 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 promptly approaches, SNB will continue its successful strategy of producing festivity Ale a highly 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 plan 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 fit(p) it will analyze the 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 study again each month, for the next collar months to determine how the new product sales without added promotions. After six months, a everlasting(a) 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.