Dallas Brewing Company

Agenda Company Overview The PEST and SWOT Analysis Target Market SWOT and TOWS Target Market Product positioning and Value statement Final design of Marketing mix Product description Pricing Strategy Distribution Plan Promotion Plan Q&A 3-5 Second Introduction narration before I go into the slide Presentation:

Center Locations: Headquarter: Dallas, TX 3-5 Second Introduction narration before I go into the slide Presentation: Dallas Brewing Company is located in Dallas, TX. Southwest

Dallas Brewing Company (DBC) Overview The New Dallas Brewing Company will be one of the leading producers of craft creating a better beers lite, or microbrews in the Dallas/Fort Worth, Texas. The company was started in 2010 by two brother Jeff Emerson, an electrical engineer, and his Brother, Bob Emerson who is the firm’s Accounting director. The brothers were inspired by the beers and ales of Southern while watching Television there. The company’s signature beer, Long Horn Lite. $100 million Start-up Budget. The brothers Jeff an Bob are from the famous electronic family Emerson Electronic. 3-5 Second Introduction narration before I go into the slide Presentation: Dallas Brewing Company is located in Dallas, TX. Southwest

PEST & SWOT ANALYSIS 3-5 Second Introduction narration before I go into the slide Presentation:

PEST ANALYSIS Political –Economic - Social -Technological The U.S. has had the lowest tax rates on its alcohol sales compared to other countries. In 1991, the tax rate on beer doubled to $18 per barrel, equally 16 to 32 cents per six packs (Alcoholic Beverages, 2010). This was a sharp increase from its previous tax rates. The U.S. Senate passed a law to decrease to legal blood-alcohol level from .10 percent to .08 percent. As well, a bill was passed regulating the legality of having open containers in a moving vehicle. This was passed in the Senate making it illegal to have any open containers in a moving vehicle. A cause for a stagnant beer market has been partially attributed to the federal excise tax hike in 1991 within the United States. Beer is also a heavily taxed consumer product. The largest cost in the price of beer is the tax that is placed on it by local and state governments, so for a company to survive in this industry they would have to be able to manage all of the high costs. As the economy slows, beer consumption shifts from premium brands to “popular priced” brands. Overall beer sales tend to be recession-proof. During economic downturns, beer sales remain flat without decline. 3-5 Second Introduction narration before I go into the slide Presentation:

PEST ANALYSIS Political –Economic - Social -Technological DBC also uses sun tubes to provide natural lighting to the plant, again cutting down on energy costs. DBC offers each employee, after one year of employment, a bike that can be ridden to work. There are over 71 breweries alone in Tx. (Per the Brewers Association). The median household income in Texas is $46,856.00 (US Census Bureau). Brewing Company uses information technology to create value beyond cutting costs, and specifically, IT helps future-proof our organization by using. Technology in this industry is mainly computer based focused. Companies use computer software and equipment to allow for efficient production of the products being manufactured. Also, increase in technology variables could mean better advertising strategies due to the technology created. On top of being used to speed up the production and efficiency of service, new technology also has been used to pull well-defined reports that become useful with inventory and point-of-sale purchase. 3-5 Second Introduction narration before I go into the slide Presentation:

SWOT ANALYSIS Strengths – Weaknesses – Opportunities - Threats STRENGHTHS Variety of beers produced for all age group. Texas second in the nation in beer consumption; Texans drank 9.2 percent. Mini Keg Sophisticated and ample channels of distribution High preference and brand loyalty for beer Craft brewers have had continuous growth over the past three years. WEAKNESSES Narrow distribution of products throughout the country. Low brand recognition Low productivity Lack of prior exposure to the market Larger company could acquire 3-5 Second Introduction narration before I go into the slide Presentation:

SWOT ANALYSIS Strengths – Weaknesses – Opportunities - Threats According to U.S specialty beer market regional shares of volume (2009-2010), we can see that the beer market of both of Oklahoma, East Central Texas House and Austin have been stable. Low calorie Beer (Society is pushing for a “healthy” beer. Hispanic consumers are growing rapidly. Career males aged 21-35, possibly supervisors or managers. Higher level of market to capture in Texas beer market. THREATS Anheuser-Busch, Inc, Miller Brewing Company, Coors Brewing Company. Are three big companies occupied almost 80% of beer market. Increase in Drunk –drinking laws Mergers and acquisitions of other breweries Alternative products are increasing Older people prefer consuming wine to beer due to health problems. Beer Taxes (Currently 67%) 3-5 Second Introduction narration before I go into the slide Presentation:

SWOT / TOWS S-O STRATEGIES – W-O STRATEGIES – S-T STRRATEGIES W- T STRATEGIES TOWS Matrix Opportunities Threats Weaknesses: Strengths SO Strategies: ST Strategies: Adjust pricing strategy to offset excise taxes. The TOWS tool combines the ingredients of SWOT (our assessment of the internal and external environments, which used the EFAS and IFAS tables) in a way that can suggest some strategies. It matches external opportunities and threats facing a particular company with that company’s internal strengths and weaknesses to result in four sets of possible strategic alternatives. Have we got some examples of some strategies? SO Strategies ST Strategies WO Strategies WT Strategies Source: Adapted from Long-Range Planning, April 1982, H. Weihrich, “The TOWS Matrix—A Tool for Situational Analysis.” and Wheelen and Hunger WT Strategies: Increase preventative education expenses to maintain good public image. Low calorie beer have a lot market basic, the favorite beer will change that

Any Questions ???? Summary up the presentation and the floor is open for questions.