Marketing Plan for Sierra Nevada Brewery

The purpose of this document is to perform a trade plan for sierra Nevada Brewery (SNB) specifically, developing a plan to broaden the carrefour line attainment by launching a new product variation that incorporates sierra Nevadas traditional ale, with the touch of blackberry. First, physical objects ar clearly realized, followed by a situational digest using a SWOT protocol. A food market analysis is performed found upon the STP procedure, which directly leads to the marketing strategy. Financial assureions ar provided, along with strategy to implement the marketing plan, which leads to the final segment evaluation and ascendance metrics, which lead be used to analyze the efficiency and effectiveness of the marketing plan.SNB is a financially gruelling smart set, as represented by question and their ranking as the 2 producer of business deal beer in the linked States. They have positi wizd themselves as universe an elite fraud beer producer by using risque-qu ality ingredients, producing esteemed beers, being socially prudent and ethical, and focusing on a niche market. The need and desire to be innovative, in articulation with SNBs goal to have a beer makery on the east bank in order to enhance their supply chain management, led to the end to introduce the of berry Ale their runner flavored ale. Since SNB has effectively marketed all of their beers, adding the berry Ale followed a similar strategy.The target consumers are educated, middle-to-upper-middle class professional men that uphold to themselves as beer connoisseurs, and venerate artisanal brewing. blackberry bush Ale testament be packaged and marketed as a premier wile beer and keisterd in urban areas with an upscale atmosphere. Pricing will 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-class honours degree derriere of 2014, mirroring the grand opening move of the new eastmost Coast brewery in North Carolina. Blackberry Ale is expected to increase SNBs positivity and assess thereby, helping to continue the change magnitude strength of the SNB family brand. Marketing Plan for sierra Nevada BreweryCompevery Overviewsierra Nevada Brewery (SNB) was officially founded in 1979, in Chico, California. This small, college-town, located 90 miles north of Sacramento, sits at the foot of the sierra Nevada foothills, for which the brewery is named after. What makes this brewery unique is its history. Ken Grossman, the founder and master brewer of SNB, started experimenting with categorybrew in 1970, under the tutelage of his friends pay back this is where his passion for brewing beer began to flourish.In 1976, Ken deviatenered up with Paul Camusi to take home brewing to a broad(prenominal)er level. Since hops were scarce 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 illustrious beers, specifically for the hop-forward brewing method, which adds distinctive flavors and aromas to the beers. As the demand for SNBs esteemed beers rapidly began to outpace supply, Ken expand into a local 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 quality beer to consumers without the United States further more than, they want to introduce new medium products, such as flavored beers. With the de termi commonwealth and resources that SNB possesses, they have positioned themselves into becoming the elapse-rated premium brewery in the U.S. According to McCurry (2012), Sierra Nevada is the No. 2 U.S. barter brewer in terms of sales behind Sam Adams. It plans to have an initial cleverness of 300,000 barrels and will employ 90 (para. 2). An increasing demand for SNB beer in the easterlyern U.S., combined with additional transportation costs has necessitated the establishment of an eastbound 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 admit all states east of the manuscript River, charm 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 kvetch with refrigerated containers. Bottle-aged beer has to be refrigerated, and its expensive to run across the country, besides the company did it very successfully. As the market grew in the East and capacity constraints started to be r to each oneed in Chico, it became obvious that what is needed is a new brewery and it should be build in the East to address cost and service issues. (para. 9)The additio n of an East coast brewery should strategically position SNB above Sam Adams, therefore claiming the make out one spot in slyness beers, and further increasing the SNB brand. Specifically, the objective is to expand their product line and break into the growing flavored ale market. Situational AnalysisSNB holds a relatively strong position in the beer industry. Their strengths are perhaps the organizations greatest 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 science of brewing made Sierra Nevada widely regarded as one of the most sophisticated research and quality focused breweries in the beingness (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 , succession the on-site auditorium houses companionship 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 other craft breweries Strong brand name Small company limited resources for promotions and publicize 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 continuous concern for the environment and the community Their installation of four 250-watt co-generation provide cells earned 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 change recovery, CO2 recovery, water recycling, bought their own cows to e at their spent grains, and they seizet 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 flush toilet 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 data 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 percentage growth in volume of barrels shipped, compared to a 1.5 percent decrease in the beer industry overall (para. 2). SNB received encourage place honors during 2011 in Best-S elling Craft Beers. 2 Sierra Nevada Brewing Co.Location Chico, Calif. set Sold in 2011 858,000 9.2 percent increase since 2010 Popular Brands Sierra Nevada disgusted Ale, Ovila Abbey AlesJulia Herz, Craft Beer Program Director for the Brewers Association, verbalise,A light Ameri squeeze out lager no longer satisfies every taste. Ameri derrieres have developed a subtle 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 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 compute 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 economical eras. The overall success of SNB can largely be attributed to its marketing strategy. They part the market by focusing on beer drinkers in the U.S. market. SNB further segment the market down to craft beer consumers. The craft beer segment does not imply low-income, uneducated, party-oriented beer drinkers. SNB targets male craft beer consumers, as marketing strategies have indicated that targeting woman 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 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(a) 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, feeling 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 prestigious SNB envision therefore, positioning the new craft beer innovation will ensure that consumers compass 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. thither are a lot of new flavors out there, and beer drinkers are involuntary 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 penetration 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 full-bodied notes of blackberry. This premier brew will be packaged in blackened glass 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 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 apply to each bottle. Finally, the label will display the brand-Sierra Nevada Blackberry Ale thereby, using a family n ame brand strategy. 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 drink bistros Prosperous grocery storesIndirect distribution using established partnerships will accelerate 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 radiate 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 Witbie r. Therefore the price for Blackberry Ale will be set at $9.59 for a six pack of 12oz bottles.Promotion StrategyIn order to call down the latest addition to the Sierra Nevada line, a multitude of media and promotions will be used to facilitate the products entre 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 celebrater Beer News, Great Lakes Brewing News, Yankee Brew News, Brew Your Own, Beer Advocate , pick out Men, Maxim, Esquire, GQ, Details, and Sports Illustrated Sales PromotionFree 4oz sample coupons (limited time just now-90 days)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 isolated (buy any 6-pack of SNB beer, get 1 free 6-pack of Blackberry Ale-90 day promotion) each(prenominal) promotions will terminate after 90 day s of product introduction to assess the effectiveness 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 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 suppl y 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 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 derriere quickly approaches, SNB will continue its successful strategy of producing jubilancy 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 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 a nd ControlSNB has determined it will analyze the addition of Blackberry Ale, xc 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.