Madcap Craftbrew Promotional Plan
1. Target Market
In the Cincinnati area, the target market would be university or college students, young professionals and professionals not more than 45 years of age. Craft beer industry trends shows that more young people prefer craft beers and Cincinnati hosts the University of Cincinnati together with other colleges and universities to constitute a target market for Zebra beers. The expansion of the market to include professionals not more than 45 years old is a response to the geographic location of the market. Cincinnati forms part of the Southwestern region of the US, which has the smallest existing market for craft beers. This means that Madcap has to expand its market in order to gain a greater market share necessary to allow the company to achieve long-term viability amidst the impending shake out of craft brewers.
2. Distributors
In the Cincinnati area, tapping a wide range of distributors is necessary to reach the wider target market of the company through a two-tiered channel of distribution. Two-tiered distribution means that the company has to contact directly retailers for exclusive or non-exclusive distribution of their products. Targeted distributors are those that cater to the market of craft beer such as high-end bars and clubs, four and five star restaurants and hotels, membership clubs, and similar distributors as primary channels of distribution and mass marketing channels as secondary distributors. In order to gain positive responses from these distributors, the company needs to develop high value for its Zebra brand. By bringing Zebra beers to the areas where the target market commonly goes, the probability of the market taking interest and trying the beer increases. The association of the brand with these venues would also support the maintenance of the product price under super premium price at .99 for a six-pack.
3. Task & Objective
Overall, the promotional plan involves two tasks for simultaneous accomplishment. One is the identification and selection of high-end distributors. Apart from the target market of these distributors matching the target market of the company, the number of target consumers that the establishments can draw need consideration. Selecting distribution establishments able to draw the target market in large numbers and providing an environment conducive to the consumption of craft beer will gain preference. Another criterion for selection is the possibility of these distribution channels in engaging in exclusive distribution or at the least preferred sales of Zebra beers. Gaining a distribution channel with all these three criteria would greatly contribute to the achievement of the sales target of the company for its craft beer brand.
The other activity is building on brand equity. This is necessary in order for the company to have value that it can use to negotiate with distributors for the general distribution of its products, preferred sale of its beer products or exclusive distribution of Zebra beers. Achieving this necessitates television advertising in local or regional stations, local celebrity endorsements, hosting of special local events, as well as the continuation of its radio commercial stints. The objective of intensifying its promotional plan is to gain the interest of its target market, get them to try the product, develop a good impression of the product and brand, recommend the brand to their peers, regularly visit distribution establishments selling the product, and remember the brand when they grow old.
Ultimately, the goal of simultaneously doing these activities is to develop a higher degree of brand and product loyalty with the target consumers while they are young in order to keep them as regular consumers in the future. This allows the company to establish a market base in the long run.
4. Percent of Sales
In Ohio, there is small margin of market share shared by small craft brewers. The medium and large breweries have taken control of 95.7 percent of the market with only 4.3 percent shared by small breweries. During the shake out, Madcap aims to remain in the industry as well as capture majority of the 4.3 percent market share. With regard to brand, 33 percent of the market is shared by other brands apart from the brands of the medium and large breweries. Madcap expects to gain majority of this 33 percent market share in the future. With its promotional plan, the company targets to gain an average increase in sales of 5 percent every year.
5. Budget Method
Madcap needs to increase its advertising budget to 3 to 5 percent of the projected sales for television advertising, local celebrity endorsements, special local events hosting, and radio advertising. It also has to optimize its limited budget through networking with the business community since the market is relatively small to gain their support in terms of endorsements and distribution. Using percentage as budget method instead of a definite amount ensures that the budget allocation would always depend upon the revenue generated by the firm. Since the company has a limited budget it is not rational to set a definite amount especially if the amount is more than what the company can afford to allocate for advertising, more so since it has failed to achieve its target sales in the Cincinnati market.
6. Advertising
The advertising budget will cover four types of advertising. First is television advertising in local networks to be aired in shows catering to the target market. Although, this involves greater cost, this would also result to greater brand and product exposure to draw higher brand recognition when they visit the distribution establishments. The advertising content should be classy and fun to draw the attention of the target market. Second is local celebrity endorsement that could also constitute the television advertisement. Normally, this involves great cost but local celebrities involve lower cost for the company and there are means of obtaining endorsements through familial or community ties especially if the owners are well known in the community. Third is the hosting of special events in the locality. This draws a wide range of market segments but selecting the type of event to host could still support the development of linkage of the brand with its target market. Fourth is continuation of radio advertising. Since this worked for the company for some time but it may need to change its approach by focusing more on the brand instead of the company owners to support brand loyalty since the company name is different from the brand.
Credit:ivythesis.typepad.com
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