BSB126 Marketing Plan - Grade: 6 PDF

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BSB126 Marketing Plan Student Number: Total Word Count: 2075 Marketing | October 2019

I. Situational Analysis

Green Beacon Brewery is a craft beer company located in the heart of Brisbane, founded in 2013, Green Beacon has since become a very popular beer amongst Australians, winning the Australia Craft Beer Award Champions three years in a row. Green Beacon aims to captivate a large and diverse target market by producing various types of craft beer, with beers ranging from lager, stout, ale, pale ale and more fruity beers such as passionfruit and blood orange for the consumers that don’t necessarily favour beer. Although the beer industry is exceptionally large and is being swallowed by large corporations such as Lion, SAB, Coca Cola and Woolworths (Mortimer, n.d.), there is still an opportunity for Green Beacon to grow and expand. If you refer to Appendix 1, a SWOT analysis has been conducted for Green Beacon Brewery.

The macro-environment is pivotal in the success of a brand. Australian drinking culture is massive with ‘approximately 41% of the population (aged 14 years and over) drink alcohol at least once per week, including 6% of the population who drink daily’ (NCETA secondary analysis, 2018). With this large culture of drinking there is a highly competitive market out there, with beer being one of the most popular choice amongst Australians, more favoured by men rather than women as ‘Beer is consumed by 59% of men, compared to only 20% of women’ (Morgan, 2018). The current social trend is boutique beer (craft beer), which is ‘brewed to create interesting, complex flavours’ by relatively small and independent breweries (Hawkes, 2013). This social trend of craft beers creates a large opportunity in the market for Green Beacon Brewery.

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Craft beer has significantly grown since 2015, with the overall craft beer drinkers increasing by 5% (Watson, 2018). In 2015, 29.1% of females were participating in drinking craft beer throughout the year, which has since increased to 31.5%, in comparison to the 68.5% of males drinking craft beer (Watson, 2018). Craft beer is not only appealing to males but is also recruiting women, opening a whole new opportunity for craft beer companies. Women have been proven to favour lighter and more fruity beers, with men leaning towards the darker beers. Green Beacon Brewery have already catered to this demand by producing their 7 Bells Passionfruit Gose, Wayfarer Tropical Pale Ale and The Whaler Blood Orange IPA for the consumers that like the lighter beers, for example, females. On the other end of the spectrum they have Grappler Lager, Penny Porter Stout and Mainstay American Amber for the consumers who prefer a fuller or darker beer.

II. Marketing Goal

Locally increase brand awareness and market share by 10% through market development by 2021.

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III. Marketing Strategy

TARGET CUSTOMERS In terms of geographic segmentation, the target customer needs to be one that appreciates the quality of craft beer, and with the price of Green Beacon beer being on the higher side, the target customer needs to be on the wealthier side of the spectrum. Green Beacon Brewery is located in Teneriffe which is a younger, high class and modern suburb in the heart of Brisbane. Featuring many local produce shops and cafes, Teneriffe is known for their bars, restaurants and scenery, with the residents appreciating their local companies and visitors coming to visit the unique places Teneriffe has to offer. With Green Beacon being in this location they are in the centre of their target market – younger, higher class and appreciative customers. The market segment used to identify Green Beacon’s target customer is demographic segmentation. The target customer is a male or female in their late 20s who earns a middle to high income and lives in the center of Brisbane. The reasoning behind targeting both male and females is because although more males drink craft beer, over the past four years the number of males has been steady whereas even though there are less females drinking craft beer, that number has been increasing since 2015 (Watson, 2018). Green Beacon’s pricing is quite on the higher side, the preferred target customer would need to have a middle to higher income to not only be able to afford it but because higher income customers are drawn to higher quality products, therefore the target customer is more likely to appreciate a more expensive, quality tasting beer.

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VALUE PROPOSITION

Craft beer is becoming more and more of a popular trend, customers are getting bored of your average beer and are being drawn to the uniqueness, exclusivity, quality and independence of craft beer (Kelsey, 2018). To make sure the marketing strategy is a success, Green Beacon needs to highlight these aspects to their consumers. Green Beacon amplifies the idea that their beers are quality with their slogans on their website being ‘Don’t drink it because it’s craft beer, drink it because it’s good beer’ and ‘We’re not doing this because we love beer, we’re doing this because we love great beer’ (Green Beacon, n.d.). With Green Beacon Brewery being the first of the new generation of breweries to open in the city in 2013, it is extremely reputable and well known, winning Champion status three years running at the Australian International Beer Awards, it appeals to customers as a ‘must try’ or ‘bucket list’ type of experience, along tours stopping at the brewery.

The following is a proposed positioning statement that embodies the target customer and value proposition. “For individuals that have impeccable taste and are looking for high-quality beer, Green Beacon offers the most flavoursome and exclusive variety of craft beer in Brisbane. Green Beacon prides themselves on their locally and carefully brewed beers, focusing on customer satisfaction.”

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IV. Tactics

PRODUCT Green Beacon’s beers are uniquely crafted and differ from any other brewery, this unique and exclusivity is extremely good for the marketing strategy. One way Green Beacon could alter their product is advertise their fruitier beers to women, considering the number of females drinking craft beer is growing, Green Beacon could take advantage of this and advertise specifically to women by showcasing feminine packaging and advertisements drawing in more customers. To further cater this idea, Green Beacon could partner with the Breast Cancer Foundation and do the pink packaging in Breast Cancer awareness month, 1st of October to the 31st of October.

PRICE When creating a marketing plan, the five critical C’s of Pricing should be considered, this includes cost, competition, channel members, company objectives and customers. Cost involves the price of which companies pay to create and supply their product, both direct costs and fully loaded costs (overhead costs). Cost based pricing is the most common pricing strategy, although as a consumer, cost is irrelevant to their buying decision as they never know the cost (Scale Finance, n.d.). Competitor based pricing relies on the competitor’s retail price, for example, a lot of big retail stores will advertise that they will beat the price of other companies. Although this can be a good pricing strategy in instances where companies are selling the same physical product as another, it’s not the most suitable strategy for Green Beacon as they pride themselves on their uniqueness of their beers.

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Channel members involve the ‘middle men’ of a company, this is only if a company users third parties to get their product to the customer. For example, companies who aren’t a physical retail store may sell their products to a retailer to than further sell to the customers; another example is how Green Beacon not only sells directly out of their brewery but also supplies to bottle shops and bars. Company objectives can also significantly impact how a business prices their products. If one of a company’s objective is to earn ‘x’ amount of profitably, their prices would have to be suitable to achieve this goal.

Contrasting to cost based pricing, customer value-based pricing is reliant on setting a price based on the buyers’ perceptions of value (Claessens, 2015). Measuring this type of pricing is a particularly difficult process as deciding what value a person will attach to a product is not simple. The target customer that was identified was someone who appreciates quality and earns a middle to higher income. For the most success, Green Beacon should apply value-based pricing, by setting a higher price allows the product to be seen of higher value resulting in the product attracting the right target customer.

DISTRIBUTION To deliver their product to consumers, Green Beacon uses two different distributional channels: direct channel and indirect channel (one intermediary). Direct channel is when the business handles the product from both manufacturing and delivery to the customer. Green Beacon has a brewery where customers can purchase their beer straight from the source. This is a successful way of distributing their product because Green Beacon is in control from start to finish allowing for the most efficient and viable methods as well as achieving a better connection with their customer base (Ross, 2019). Alternatively, Green Beacon also uses indirect channeling with one intermediary. This involves ‘another party entrusted with the manufacturer's products and customer interaction’ (Ross, 2019), Green Beacon does this by directly selling their product to BSB126 MARKETING PLAN

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bottle shops, restaurants and bars who then further sell the product to the customers. Indirect distribution channels add extra costs, vendors and bureaucracy, overall increasing the cost to the consumer and taking control out of the manufacturers hands (Ross, 2019).

There are three ways to frame channel distribution intensity, these consist of intensive, selective and exclusive. Intensive distribution is the highest both number of channels and volume within each channel, an intensive product example is Smiths Chips, they are a low-cost product that is sold across many selling opportunities. Selective distribution is next, it involves of fewer intermediary’s but continues to sell a large volume of goods. Exclusive distribution is for limited products as it’s a low volume and very few channel approach, an example of this would be a brand like Gucci where you can only buy the product in exclusive and selected shops. Green Beacon currently uses a selective distributional channel, their beer is sold nationally in a large volume but only through one intermediary: straight from the manufacturer to the retailer, as well as straight from the manufacturer to the customer.

Green Beacon already distributes straight to the consumer through both online, in store and distributes through third parties such as Dan Murphy’s and Albion Hotel. The average crowd at a 2019 Brisbane Lions football game hosted at the Gabba is 24,741 people (Afl Tables, 2015), currently there are bars serving the general beers on tap such as XXXX’s Gold and Iron Jack. Green Beacon could target a larger group of known beer drinkers by setting up a Green Beacon tent that exclusively sells Green Beacon beer. Not only does this increase brand awareness but it also separates Green Beacon from the currently sold beer at the bar, allowing consumers to perceive Green Beacon beer’s as a higher quality product.

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PROMOTION The following promotions, budgeting at $50,000, will allow Green Beacon to spread brand awareness and capture the target customer by drawing on the Breast Cancer Foundation.

1 in 3 Australians are actively using Instagram (Cowling, 2019), with 64% of them aging 18-29 years old (West, 2019) and 70% of users earning an income between $49,999 to $75,000+ (West, 2019). With Instagram being this popular amongst Green Beacon’s target market it is highly recommended that they advertise on this social media platform. On Instagram, you can promote your business amongst a selected target audience, if you refer to Appendix 3 you will see an example. Please refer to Appendix 2 for costs.

The next promotion that is ideal in both growing the market segments as well as promoting the brand is a partnership with the Breast Cancer Foundation. For the month of October, Green Beacon will package their beers in pink for breast cancer awareness month, refer to appendix 4 for an example, this pink not only spreads awareness but also catches a female’s attention in-store. Females aged 30 – 49 watch an average 1.4 hours of TV between 6pm and midnight (OZTam, 2016), because this is our target market for this campaign, an advertisement for Green Beacon will be run during prime time, please refer to Appendix 2 for cost. By running this add not only is Green Beacon’s reputation increasing but it is also giving consumers an incentive to buy the product as 10% of profits will go to the Breast Cancer Foundation.

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V. References AFL Tables. (2019). Attendances 2019. Retrieved from https://afltables.com/afl/crowds/2019.html Channel Nine. (2016). Nine Network 2016 Ratings Report. Retrieved from https://www.nineentertainmentco.com.au/2016/11/28/09/28/nine-network2016-ratings-report Claessens, M. (2015). Customer value-based pricing – pricing based on Customer value. Retrieved from https://marketing-insider.eu/customer-valuebased-pricing/ Cowling, D. (2019). Social Media Statistics Australia – August 2019. Retrieved from https://www.socialmedianews.com.au/social-media-statistics-australia-august2019/ Dan Murphy’s. (2019). Search Results. Retrieved from https://www.danmurphys.com.au/search? searchTerm=pale+ale&filters=beerstyle(pale-ale),bottleclosure(can),variety(craftbeer) Food Bev Media. (2019). Asahi buys Australian craft beer maker Green Beacon Brewing. Retrieved from https://www.foodbev.com/news/asahi-buys-australian-craft-beermaker-green-beacon-brewing/ Green Beacon. (2019). Green Beacon. Retrieved from https://www.greenbeacon.com.au Hawkes, W. (2013). Crafty marketing doesn't make a craft beer. Retrieved from BSB126 MARKETING PLAN

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https://www.goodfood.com.au/drinks/crafty-marketing-doesnt-make-a-craftbeer-20130520-2jvlz Kelsey, R. (2018). 2018 Australian Craft Beer Survey Results. Retrieved from https://www.beercartel.com.au/blog/2018-australian-craft-beer-survey-results/ Kirkegaard, M. (2019). Green Beacon sales rumours finally true. Retrieved from https://www.brewsnews.com.au/2019/08/21/green-beacon-sale-rumoursfinally-true/ Lokomotion. (2014). How much does a TV commercial cost?. Retrieved from http://lokomotion.com.au/tv-commercial-costs-part-one/ Lumen. (n.d.). Channel Strategy Decisions. Retrieved from https://courses.lumenlearning.com/boundless-marketing/chapter/channelstrategy-decisions/ Morgan, R. (2018). Wine most popular, but beer most drunk. Retrieved from http://www.roymorgan.com/findings/7550-wine-most-popular-but-beer-mostdrunk-201804060631 Mortimer, G. (2017). Why Craft Beer Is Going Corporate. Retrieved from https://theconversation.com/why-craft-beer-is-going-corporate-85668 NADK. (2019). How Often Do Australians Drink Alcohol?. Retrieved from https://nadk.flinders.edu.au/kb/alcohol/consumption-patterns/frequencyconsumption/how-often-do-australians-drink-alcohol/ OzTam. (2011). Frequently Asked Questions. Retrieved from https://oztam.com.au/FAQs.aspx BSB126 MARKETING PLAN

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Ross, S. (2019). Direct vs. Indirect Distribution Channel: What's the Difference?. Retrieved from https://www.investopedia.com/ask/answers/052115/whatdifference-between-direct-and-indirect-distribution-channel.asp Rudder, A. (2019). Local & National TV Advertising Costs & How to Advertise 2019. Retrieved from https://fitsmallbusiness.com/tv-advertising/ Scale Finance. (n.d.). The 5 Critical C’s of Pricing. Retrieved from https://scalefinance.com/the-5-critical-cs-of-pricing/ The Canmaker. (2018). Craft beer cans go pink to support breast cancer awareness. Retrieved from https://www.canmaker.com/online/craft-beer-cans-go-pink-tosupport-breast-cancer-awareness/ Visit Brisbane. (2019). Things to do New Farm Newstead and Teneriffe. Retrieved from https://www.visitbrisbane.com.au/information/articles/activities/things-to-donew-farm-newstead-and-teneriffe?sc_lang=en-au Watson, B. (2018). Shifting Demographics Among Craft Drinkers. Retrieved from https://www.brewersassociation.org/insights/shifting-demographics-amongcraft-drinkers/ West, C. (2019). 17 Instagram stats marketers need to know for 2019. Retrieved from https://sproutsocial.com/insights/instagram-stats/

BSB126 MARKETING PLAN

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VI. Appendices APPENDIX 1 Strengths -

Large product line – appeals to different demographics Boutique beer Quality driven Brisbane based – uses local suppliers Product is accessible Local target market

Weaknesses -

Opportunities

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Open new breweries across Brisbane Growing market segments e.g. Females Expanding product line Acquiring rival brewers Sale to large brewing operator

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-

-

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Access to the brewery is limited – only brewery is in Teneriffe Beers are quite expensive Lack of product promotion Exterior of shop front isn’t recognizable Limited parking

Threats Strong competition There are cheaper options available Other companies have already highly branded themselves, for example XXXX’s beer is ‘Australia’s typical beer’ Economic downturn Loss of sales to competitors Changes in regulatory environment e.g. government changes laws about making beer – no more than 5% Shift in consumer taste

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APPENDIX 2 Objective

Task -

Post an advertisement on Instagram

-

Fill in the form and create the

Cost $736.49/day with maximum estimated reach being 220,000 people per day

target audience: An advertisement on

In total $11,047.28 Location: Brisbane

Instagram app to spread brand awareness

Interests of sports, beer, drinking, alcoholic beverages, bars, entertainment, breweries Age: 18 – 50 Gender: Male & Female - Create a pink packaging design for the product October batch. -

Promote breast cancer awareness month, as well as increasing brand awareness to females.

-

$10,000 for studio production with built sets (Lokomotion, 2014).

Promote the cause on a TV commercial showcasing Green

$5 per 1000 views

Beacon beer – For every ‘pink

(Rudder, 2019)

packaged’ beer bought 10% will go

20 second commercial on Channel

to the Breast Cancer Foundation

Nine in prime time with an average

TV commercial will be aired at

of 100,000 views ($500/day) played

prime-time TV – 6:00pm to

once a night every week

10:30pm (OzTam, 2011)

($3,500/week) for every week in October is $14,000

In total $24,000

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APPENDIX 3

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APPENDIX 4

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