Research Business Operations Craft Beer Bar

Question: Define the topic as a business function. What is its purpose? How will this topic affect the business we are trying to open? Directly apply a plan based on the topic for our business . Answer Purpose The purpose is to open Craft beer bar in Hagerstown city as the third most popular drink in US consumed after tea and coffee is beer. The concept will have European music, wooden seating, and standard glasses for serving beer with different uniform for male and female attendants. A simple decoration as in beer bars and for serving food silverware has to be used (Bethany Conroy). The food served will be according to the localities residing in Hagerstown city. Affecting Business Decision The beer bar business is huge crowd puller in Hagerstown city as each glass served has its own creation and innovation for consumers. The business will bring positive gains as the drink is consumed daily to enrich the taste and celebrate each day. Plan for Business The US beer market is huge for consumers and the market segment is Microbrewery refers to a brewery where 75% of beer is sold outside the shop and produces lees then 15,000 barrels of beer per year. Market Analysis As per the US market it can be seen 22% growth is sales with an overall market rising to 0.5%. The production volume of Craft in 2014 rose to 18% from the last financial year. This shows that beer imported is at 6.9% and the export rate shows 3.6% of brand. The production volume consists of 14.3% as microbrewery segment of beer brand in US. The market size has increased by 2 million barrels and the cans alone have contributed to less than 20% in the total US beer market (Brewers Association). Total Market Share In 2014 the total market share of Crafts was 11%. Total Market The overall beer market rose to $101.5 billion and alone Craft Beer market comprises of $19.6 billion in it alone. The Brewers Association said that the company is performing better from 2013 as 7.89% as compared to 2014. By breaking all records the small and medium sized organization broke all records (Nordrum) Target Market The target market is Hagerstown city while focusing on both men and women. Those customers who prefer malted beer be serving traditional values. The drink can be enjoyed with friends or family. The age group of people is between 21-40 years as they feel it represents a class of section different from non-beer drinkers. As per Mintel report 2013 on millennial state that people between the age group 25-34 years consume brands beer (Chen). Fig: 1 Craft Brew Industry [Source: www. college.usatoday.com] Total Feasible Market The feasibility to open Crafts in Hagerstown city is known to be feasible as the brands is enjoying its market share in against their competitors. Positioning Strategy The competitors of Crafts are Bennys Pub, Always Rons, The Corner Pub etc. and as the brand is opening in Hagerstown city it can use its product features. The strategy is using the ingredients such as malt hop varieties, maple syrup, aloha etc. The customers can opt for traditional beers as they feel beer makes them a different section of consumer altogether (Marsh). Marketing Plan Macro Environment Political Factor Taxation Policy Intervention by Government Social Factor High Purchasing Power Drinking Beer represents social class Capturing the US market Technological Factor Change in price of products Technology Improvement Using local festivals for encouraging people US is the 13th country in world leading to beer consumption Economic Environmental Factor Rising sales in holidays Recycling its product Legal Factor Smoking Ban Change in Drinking and Driving Law Micro Environment Competitors Bennys Pub aim is to come as a stranger and leave the place as a friend by having fostering such a environment Always Rons deals with restaurant, beer cafe and prepared food The Corner Pub owned by Vernon Darryl Sword hosts private parties, celebrations etc. with its spacious interiors (Thecornerpub.net). They have weekly draw at 9 pm everyday for attracting customers. Consumers The Beer drinkers celebrate emotion by gaining on experience by creating social networks and enjoying their drink. They want to enjoy each moment and foster friendship and at times it is compared to wines. Advertising Methods The adverting used while opening Craft Beer the modes of advertisement are online, public speaking and event sponsorship. This helps in connecting with the audience through social media sites such as Facebook, using ads, Google Ad words etc. The word of mouth spreading of information to people in Hagerstown city and sponsoring local events of city will make them popular (Heimonen and Uusitalo). Sales Tools Promotional Activities January Feb Lobster Promotion Live Entertainment Various Events taking place March Happy hour 4-7pm Happy Hour time to be Happy 5-8 pm Live music weekends Tuesdays celebrations Rock Baby Rock April DJ Friday Night Live Music Weekends After Work Timings May Sunday Brunch Free Kids Painting Kids Eating Free on Sundays June Happy Hours July Live Entertainment Flashback Sunday Brunch August Martini Mondays Happy Hour 4-7 September Live Entertainment Double points on purchasing beer as 2x October Live Music on Weekdays Face Painting for Kids November Live Entertainment December DJ sessions Christmas Party For promotions car show can take place by inviting various cars to display in Hagerstown city to entertain the audience. Selling beer at some dollars less than being actual fare displayed in menu for effective means of consuming more to attract more customers. Loyalty Plan The loyalty plan for repeated customers will be 30% off on the next drink for the day. The points earned by them will act as a loyalty purchased credited in their account. The account can be managed by providing a loyalty card used on the next purchase either on food or drink. The points earned will have a validity period of 2 months from using it (Gee, Coates and Nicholson). The points can be earned on combination say one pitcher/mug free with any draught beer. This will make the customer make to make repeat purchase by having an added advantage. References Bethany Conroy, Akron Roots Advertising 2015. "Craft Beer Bar. Downtown Cuyahoga Falls, Ohio.". Craft-beer-bar.com. N.p., 2015. Web. 1 Feb. 2016. Brewers Association,. "National Beer Sales Production Data - Brewers Association". N.p., 2014. Web. 1 Feb. 2016. Chen, Xun Yao. "Why Craft Beer Attracts Millennials And Consumers With Momentum - Market Realist". Marketrealist.com. N.p., 2013. Web. 1 Feb. 2016. Gee, Robert, Graham Coates, and Mike Nicholson. "Understanding And Profitably Managing Customer Loyalty".Marketing Intelligence Planning26.4 (2008): 359-374. Web. Heimonen, Kari, and Outi Uusitalo. "The Beer Market And Advertising Expenditure". Marketing Intelligence Planning 27.7 (2009): 945-975. Web. Marsh, Rebecca. "A New Company Descriptor Takes Us Into A New Era". Marketing Intelligence Planning 29.1 (2011): n. pag. Web. NORDRUM, AMY. "Craft Beer Breaks Double-Digit Market Share For The First Time In US". IBT 2015. Web. 1 Feb. 2016. Thecornerpub.net,. "The Corner Pub - Friendly Irish Pub In Hagerstown, Maryland". N.p., 2015. Web. 1 Feb. 2016.