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Bell's Brewery:

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by

Michael Wilen

on 15 November 2014

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Transcript of Bell's Brewery:

Defined by the Brewers Association as:
What is craft beer?
1985:
Founded as Kalamazoo Brewing Company by Larry Bell. First 9 employees brewed, delivered, and sold all the beer

1989:
Signed with first wholesaler, when craft beer first started to increase

2003:
Additional brewing facility built

Today:
20 States, 80 wholesalers, 500,000 barrels

The History of Bell's Brewery
Bell's Brewery:
The Path to Success

Utilize:
Umbrella strategy to
market 20+ brands
Business
Objective
MO: Acquisition

Since the characteristic taste of Bell's beer quickly attracts new customers, Bell's brewery should focus more on acquiring new segments of customers
Marketing Objective
Stimulate Demand:
Introduce new beer drinkers to Bell's. Need to increase awareness, Bell's currently relies on word of mouth.

Steal Share:
Advertisements comparing against mainstream beers e.g. Bud Light. Dynamic variables include superior product quality, and seasonal variety.
Source of Volume
STP
Product
Goal: Maximize Profit

Value Pricing: Superior quality and taste

3rd Degree Price Discrimination for 21-year-olds


Price
5 Box Positioning Statement
Small:
Annual production of 6 million barrels of beer or less (approx. 3% of annual U.S. sales
Independent:
Only 25% or less of the brewery can be owned by non-craft brewery
Traditional:
Flavor derives from
traditional or innovative
ingredients and fermentation
1. "Build-Your-Own 6-pack"

with seasonal beers

2. Advertising:
TV hot-spots
Online (social media, music sharing, etc.)

3. Promote seasonal beers in select bars
Ex. Oberon Day
Promotion
Bell's beer is sold at party stores, grocery stores, and taverns/restaurants, such as the Eccentric Cafe
Bell's brewery should expand its sales to the West
Restaurants could host events for various seasonal beers

Place
Dynamic variables:
Seasonal selections, product quality

Distinct strategy:
Focus on two main groups, competitors consumers (acquisition/steal share) and consumers outside the category (acquisition/stimulate demand)

Segmentation variable(s):
Attitudinal, Aspirational

Targeting Strategy:
Differentiated marketing
Consumer Segment 1: "Annie"
Attitude:
Doesn't appreciate beer or have much exposure to beer, excited about recent ability to make alcohol purchasing decisions

"What would make beer more appealing to you?"
3 of the most common survey responses:
- if it was cheaper or more accessible
- if it had a better taste
- if there was more of a variety in taste or flavors
Demographic:
Age 21-24, college student, not much disposible income,
Behavior:
Drinks mixed drinks or cheap beer socially
Need for taste variety
Need for
low price
Consumer Segment 2: "Bill"
Demographic:
Age 35-50, white-collar worker with some disposable income

Behavior:
Works hard at a somewhat monotonous office job, drinks beer after a long day at work
Attitude:
Beer is a reward for making it through a long day,
Aspirational:
Wants some change or excitement, daydreams about changing careers but needs the stable pay to support a family
Wants excitement and change
Current Big Picture
Business Objective:
Marketing Objective:


Source of Volume:
Segment:
Target:
Position:
Retention
Core-competence:
Brewing flavorful,
unfiltered, quality craft beers.
Indirect Length
Intensive Breadth
Minimal Depth
Mission statement:
Brew thoughtfully, creatively and artistically while striving to bring an authentic and pleasant experience to all through their unique ales and beers.
Future Goal:
continue to produce a
variety of quality beers and ales to
satisfy customers.
Seasonal Variety
Year Round Availability
Award Winning Taste
Consumer Survey
Stimulate
Demand
Produce Quality
Beer
Product:
Promotion:
Place:
Word of Mouth
Website
Award-Winning
Quality
Seasonal Variety
Price:
Maximize Profit
Value Pricing
Cans coming soon!
1. Cheaper to produce
2. Can be taken places bottles are not allowed
Main Variable:
Quality Beer
Dynamic Variable: seasonal beers

Concentrated strategy
Quality seasonal
beers for everyday
#1 IPA
#4 Double IPA
#4 Stout
Full transcript