Gaining Commercial Advantage Francis Patton

Who am I to talk to you….!! 25 years in the industry Strong links to Cask Strong links to industry bodies Lecturer at Leeds Metropolitan University

So what’s going on...? Change in Industry Structure - TISC 2004/BISC Change in leases - Change in pricing - Change in ownership - Change in approach Opportunity

So what’s going on....? Change Socially - Sustainable Communities Act - Big Society - Localism – supermarkets - Pub is the Hub Opportunity

So what’s going on...? Change of Products - Growth of cask - Growth of local brands - Sourcing - Range in pub companies - 94% within 40 miles Opportunity

So what’s going on...? Change in route to market – Brands/products need “store front” – Rise in off trade stocking – Rise of DDS – Access to pub companies/brewers up 29.8% Opportunity

So what’s going on...? Innovation - Project William - Enterprise/Punch/Admiral - Social Networking - Apps - Cyclops Opportunity

The Local Rumours of my death have been greatly exaggerated Localism is alive and flourishing

The issues Are you as businesses set up commercially to take advantage of the opportunity? – Training 2.3 out of 5 Internal 51% say could do better/need support External 65% say could do better/need support – Debt servicing 1.2 out of 5 – 43% don’t use social networking – 65% have no pub – 28% don’t know production costs – Brand awareness

Success v Failure 56% failure rate in first 4 years Seven pitfalls – Started for the wrong reasons – Poor management – Insufficient capital – Location – Lack of planning – Overexpansion – No website

Strategy/Business Plan “Thinking like the big boys, playing like the small ones.” Every business needs a clear strategy/business plan Every business needs to create competitive advantage Every business needs a vision of success backed up by financials Every business needs help

MissionObjectives External Analysis Internal Analysis Strategic Choice Strategy Implementation Competitive Advantage The Strategic Management Process

6-13 The Strategy Clock

7-14 Approaches

Methods Acquisition Merger Joint Ventures/alliances Franchising/licensing Management contracting

Help SIBA Cask Marque Cyclops CAMRA Consultants NED’s Universities PITH Regional Business Support

The future is bright The future is beer And local beer at that