1. The Business of Brewing II
March 12, 2018
Rick Cox

2. Marketing
The activities that are involved in making people aware of a company’s products, making sure that the products are available to be bought, etc. (Merriam-Webster Dictionary)

3. Benchmarking
Something that can be used as a way to judge the quality or level of other, similar things (Merriam-Webster Dictionary)
Keeping score
Knowing where you are in the market
Ranking
Tracking yourself and competitors on goals

4. Benchmarking (cont)
Benchmarking is not only used for sales, but also for outputs and inputs
Just like in life, make small, attainable goals/benchmarks in order to see success in your endeavors

5. The 4 P’s Price Be competitive in pricing in the market
Pricing should be based on cost of materials plus labor
Remember you are not trying to get rich on one bottle/6-pack/pint/keg

6. The 4 P’s Product Use of quality raw materials Differentiation is key
Know your product
How is it set apart from others?
What makes your beer/brewery different from others?
How is it similar?
This helps keeps you honest in the marketplace

7. The 4 P’s Promotion Use of newspaper/periodicals Use of radio
Targets some key demographics/age groups
More expensive
Sometimes less productive
Discuss pros and cons
Use of radio
Much like newspaper
Use of social media
Very inexpensive
Little to no control of what is said
Word of mouth

8. The 4 P’s
Placement
Marketplace is concerned with profit per square foot
End caps, displays and “action alleys” are best placement

9. Branding Creating who you are in the market
With all of the craft beer brands out there, unfortunately, the beer in the bottle will not sell itself.
Created with the combined creative energies of brewers, graphic artists and copywriters.
Ex: Oscar Blues Brewery; river sports and bicycling. Sierra Nevada; mountain sports, hiking. Budweiser; self proclaimed “king of beers”.

10. Branding (cont)
You must think about what it all means for who you want to be in your market
You must think about what it will mean to your patrons and consumers
You are your brand
Every decision you make reflects on your brand

11. Make your brand worth remarking about
BE REMARKABLE!
Make your brand worth remarking about

12. Know your target audience
Are you looking to sell to Millennials?
Is your target market “lawn mower beer” drinkers?
Do you want to promote craft beer to middle aged adults looking for something different?

13. DO YOUR REASEARCH
No matter your target market, know them better than they know themselves.

14. Research There are multiple sources of information: Internet
Google Analytics
Census Bureau
Local Chambers of Commerce
Surveys
Free and paid

15. Remember A.I.D.A. Attention Interest Desire Action
Draw positive attention to your brand
Even negative attention can be a good thing if spun the right way
Interest
Make people interested to see what you have going on at your brewery
Desire
Create a desire for your product, i.e. brew different styles
Action
Create a call to action, support a cause that means a lot to you and the community as a whole

16. Functions of a Brewery
Everyone plays a part

17. Management function
Management plays a vital role in the brewery. Not only do they make difficult decisions, pay bills and order materials, they also take care of other vital roles.
Parts of the Management function
Sales
Sales management, delivery personnel, bartenders, etc.
Promotion
Encompasses everyone in the brewery, but mainly those in direct contact with the public and retail outlets
Advertising
P.O.S. (point of sale) materials, social media management, apparel, etc.

18. Operational Management Activities
Set performance objectives
Set productivity expectations
Setting operational strategies
Design of products and services
Planning and controlling
Improvement of operations over time
Corporate social responsibility

19. 3 core functions of business
Marketing
Product and service development
Operations function

20. 3 support functions of business
Accounting and Finance
Human resources
IT functions

21. KEEP IN MIND…
In most startup businesses, breweries included, the owner usually takes care of all of these functions themselves until more persons are able to be added to the payroll

22. Outputs Include the following: Products Services Raw materials Kegs
Bottles
Cans
Etc.
Services
Point of Sales (P.O.S.) materials, etc.

23. Inputs
Information
General
Legal
Recipes
Etc.
Customers

24. Characteristics of an operation
Volume – How much product is produced
Variety – What type products are produced
Variation of Demand – Seasonal demands
Degree of visibility of product – How many locations (or packaging) is the product available in

25. Questions??