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AMSTERDAM BREWERY
BUSINESS PLANNING
BY:
Kyle Hahn
Septyan Himiwan
Emil Grande
Danny Diep
Brittany Millard
MKT2260
Jim Neubauer
Section 320
Friday April 08th, 2016
Table of Contents
SWOT …………..…………………………………….………………………….…………… 1-2
Competitor Analysis…………….…………………..………………………………….…...... 2-3
The Market Opportunity …………………………………..………………...…………….….. 4
Targeted Segments …………………………………..………………..……………….........….. 5
Positioning ………….……………..……………………………………………..……....…… 5-6
Marketing Plan Objectives …….…………………………………………..………………... 7-8
Product Strategies …….……………………………………………………………….…... 9-11
Pricing Strategies …….…………………………………………………………..………... 12-14
Distribution Strategies …….………………………………………………….…………... 15-17
IMC Strategies …….…………………………………………………………..…………... 18-20
Implementation Plan …….………………………………………………………………... 21-23
Financial Analysis …….…………………………………………………………………... 24-25
Appendix……………………………..……………………………..………………..………… 26
Appendix A…………………………………………………...................................... 26-29
Appendix B……………………………………………………………………..…… 30-31
Appendix D………………………………………………………………………..… 32-34
Appendix E………………………………………………………………………..… 35-36
Appendix F………………………………………………………………………..… 37-41
Appendix G………………………………………………………………………..… 42-45
Appendix H………………………………………………………………………..… 46-50
Appendix I…………………………………………………….…………………..… 51-53
Appendix J……………………………………….………………………………..… 54-62
Appendix K………………………………………………………………………..… 63-65
Appendix L……………………………………………………………………….…..… 66
References……………………………..……………………………..……………………. 67-72
1
SWOT
For Amsterdam Brewery’s SWOT analysis, the team has identified various strengths,
weaknesses, opportunities and threats related to Amsterdam Brewery has a whole company
internally and externally. There will be the key highlights in the report and detailed information
(See appendix A-2) and a SWOT chart. (See appendix A-1)
Strengths: The key highlights of Amsterdam Brewery’s strengths are that they have been
in business for 30 years and are not new to the craft beer industry (The Amsterdam Brewery
Story, n.d.). The second strength is that Amsterdam Brewery offers free taste testing and tours
around their location, with the ability to book the time and date of when you want to tour their
location (Brewhouse Brewery Tour Registration, n.d.). Third strength is that Amsterdam
Brewery has over 20 different kind of craft beer sold within their store location (Amsterdam
Brewing Company, n.d.). The fourth strength is that Amsterdam Brewery uses all natural
ingredients to make sure their craft beer is high quality (In The Tanks, n.d.).
Weaknesses: Weaknesses that Amsterdam Brewery encounters are that they don’t have
an actual target market to appeal towards (Garbarino, n.d.). The second weakness is that
Amsterdam Brewery is only able to brew a limited amount of beer (48,000 hectolitres)
(Garbarino, n.d.).
Opportunities: The main opportunity is that millennial prefer craft beer over normal
beer (Fromm, n.d.). The second opportunity is that craft beer sales are currently on the rise from
the previous year by 12.8% (NATIONAL BEER SALES & PRODUCTION DATA, n.d.). The
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last opportunity is that Amsterdam Brewery can sell to more retailers around Ontario. (Beer sales
in grocery stores, n.d.)
Threats: The main threat to Amsterdam Brewery is that larger and local beer companies
can be a threat to Amsterdam Brewery, which can impact sales. The second threat that
Amsterdam Brewery faces is that the price of Amsterdam beer is higher than the amount of mL
you get back compared to other competitors such as Great Lakes Brewery. (Amsterdam
Boneshaker, n.d.), (Great Lakes Brewery, n.d.)
Competitor Analysis
Amsterdam Brewery has four main competitors, first one is Mill Street Brewery they
offer signature beers. This selection of beer is offered as intensive distribution meaning it is in
most stores that beer is sold unlike their specialty beers.
Mill Street Brewery stands out by sponsoring many events and offering a wide selection
of over 60 unique beers that have won over 100 different awards (About us, 2015). They not
only brews beers and sells them but they own their own pubs called Mill Street Brewpub (See
appendix B-1). They don’t partner very often with events or activities, which somewhat
diminishes their “Local” presence (See appendix B-2).
A very unique trait that Steam Whistle offers is their vintage vehicles, they describe it as
“The car you drive, like the beer you hold in hand, reflects your unique character and personal
style.” These cars are used for events and transportation. Maintaining a fun yet vintage
appearance, they stick with traditional brewery techniques for best natural tastes. Steam Whistle
has their beer offered worldwide which is a strength. Steam Whistles weaknesses would be that
their drive for quality rises the prices quite a bit and they don’t have a diversified product line
3
like many others. Steam Whistle holds up to their standards and believe one beer is good enough
if the quality is there (Steam Whistle, 2014).
Great Lake Brewery offers a wide selection of Year Round beers with creative names and
logos that are served in LCBO’s, Craft beer restaurants, Bars and Pubs. Alongside their Year
Round, they offer seasonal beer that are there for a limited time. Unique feature they offer is
Tank Ten, which is where they give the makers the green light to make whatever they would
like. They also have what they call Project X and Collaborations. Great Lakes Brewery is very
interactive with events and social media. A drawback is offering such a wide selection for those
who want a familiar beer might feel intimidated (Great Lakes Brewery, 2014).
Left field brewery is known for offering their top seller craft beers in not only tap but
draft too. This is beneficial to those who may prefer beer on tap rather than in bottle or the other
way around. A downfall for them is that they have only been around for 3 years (See appendix
B-3), they are still getting used to the rapid beer market changes and learning to integrate
themselves.
Their competitors think outside the box and strive for success. A common ground they
have is a wide range of selection. Participating/hosting events helps them bring their local
presence up and help others discover craft beers. Amsterdam Brewery is rated a 4.6 stars out of 5
on Google (See appendix B-3), customers are enjoying the local aspect that they bring and the
quality of craft beers. Their success is an opportunity to expand into a bigger environment such
as MLSE, where they can attract more of the defined target determined and inform current and
new customers about who they really are and what they have to offer. There is a saturated
competitive market with lots of benefits to offer so Amsterdam Brewery needs to stand out.
4
The Market Opportunity
In this section the team will describe the marketing opportunity based on internal and
external factors as well as the competitor’s situation. The marketing opportunity that has been
chosen is to integrate Amsterdam Brewery’s top three selling products (All Natural Blonde,
Boneshaker IPA, and Big Wheel Deluxe) in the Air Canada Centre.
Amsterdam Brewery has a weakness which is the lack of target market. Based on
secondary research the team has discovered that millennial have the most potential when
describing our market. Currently millennial ages 19-30 tend to drink more craft beer compared to
other age segments (Taylor, 2016). The team has calculated with primary research that in the
GTA 637.170 millennial watch sports in a stadium or arena such as Air Canada Centre (See
appendix D-1)
Steam Whistle and Mill St. whom are Amsterdam Breweries competitors are currently
integrated into MLSE. However Mill St. has a much lower rating on Google compared to
Amsterdam Brewery, (See appendix B-3) Steam Whistle has only one type of beer therefor there
is not much room for customer’s preferences. Amsterdam on the other hand has 9 seasonal /
year round beers, and 3 of them have won awards such as the Canadian Brewing Awards and
Ontario Brewing Awards (Amsterdam Brewery, n.d)
One of their strengths is that Amsterdam Brewery is a high quality craft beer company
that offers all natural ingredients. This clarifies the millennial behaviors which are enjoying all
natural ingredients and high quality products.
However, Amsterdam Brewery has a lack of brewing capacity of only 48,000 hectoliters
annually. This is a downfall that Amsterdam Brewery need to focus on once profit from the
integration of MLSE starts growing.
5
Targeted Segments
As mentioned in the first meeting currently Amsterdam Brewery has no specific target
market. The company is currently targeting those at any ages who enjoy great tasting beer and
willing to try specialty beer (Garbarino, 2016. Kknowing to whom the company is targeting its
product is crucial as once the targeted segment is identified, the company will be able to execute
the marketing plan that fits to the targeted audience (Kaleikini, 2009). There are three ways of
defining the target market-by identifying demographics, psychographics and geographic (Porta,
2012). Identifying behavioral response such as knowing in what occasion the audiences enjoy the
product will also help Amsterdam Brewery to specify its profile audience. ( See appendix D-
1&D-2)
Positioning
Positioning Base: The positioning base for Amsterdam Brewery focuses on the
millennial age group. The behavioural aspect of this group is enjoyment of watching live sports
within an arena. The area of focus is downtown Toronto which Amsterdam Brewery has a
prominent local presence.
Positioning Statement: “For the millennial age group (19-30) who enjoys live sports, the
Amsterdam Brewery offers a high quality craft beer with a premium price. Unlike the other local
craft breweries in Toronto, Amsterdam Brewery provides craft beer with all-natural ingredients
and a distinctive taste.”
The positioning statement is emphasized on targeting the millennial age group who are
sports fans in Toronto. The all-natural ingredients and distinctive taste of Amsterdam Brewery’s
products is the best aspect compared to its competitors (See appendix A-1). Since Amsterdam
Brewery has an advantage of having the all-natural ingredients against its competitors, this
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feature will help on top of having a high quality taste plus premium pricing for the millennial age
group.
Based on the proposed target segment, the key benefit for Amsterdam Brewery is the
unique taste. This aspect will be distinctive for the millennial group as they can consider it as
fresh and enjoyable craft beer. The millennial age group also seek strong value for their
preferable craft beer and does not care about having a higher price (Brewers Association, 2015).
This gives Amsterdam Brewery the advantage against its competitors because the brand is
perceived as having high quality with a premium price. Having a strong history within Toronto
also increases value for millennial. (See appendix E-2).
Perceptual Map
The perceptual map illustrates the placement where each brand stands in terms of
customer ratings from Google and average price of their craft beer per millilitres. The whole
perceptual map is an illustration that supports the positioning statement. The ratio between these
two variables can determine how the brands are doing in the market and how customer see them
as (See appendix E-3).
In the perceptual map, Amsterdam Brewery has an advantage against most of its
competitors. The map demonstrates that Amsterdam Brewery has a 4.6/5 in terms of customer
rating and a $6.37 (per mL). It makes Amsterdam Brewery a high quality brand that has
premium pricing. To conclude Amsterdam Brewery’s placement in the perceptual map, it
portrays an appeal to the millennial audience. Millennial preferring a brand that has a high
quality and premium price is met by Amsterdam Brewery’s rating and price point.
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Marketing Plan Objectives
In this section the team will be stating the six main objectives for the marketing plan with
rationale (See appendix F-1).
For the financial objective the team chose to have the objective of increasing the overall
revenue by one million dollars in 12 months. According the Amsterdam Brewery financial
summary, Amsterdam Brewery made a total of 15 million in 2015 and combined the top three
products made over ten million dollars in 2015 therefore keeping the success of the top three
products is crucial.
For the product objective the team chose to redesign the packaging for MLSE
partnership. This is good because in the survey question 10 that asks if respondents were likely
drink beer if it was brewed locally on a scale from 1-5, 28.7% of respondents gave a rating of 5
in which gives MLSE a reason to do this because people like locally brewed beer and it would
look good for the organization to support local businesses.
In terms of pricing, Amsterdam Brewery will offer the target audience a 10% discount in
order to achieve an increase of 20% repeat purchase. This will be done before October 2016 and
the start of June.
The promotion objectives that the team chose is to increase awareness by 9% and
increase trialability by 7%. In the survey the team found that Amsterdam was ranked third in
awareness behind Steam Whistle and Mill Street Brewery. In order to get trialability Amsterdam
Brewery must gain more awareness and attract repeat buyers.
The distribution objective is creating this partnership with MLSE to sell Amsterdam’s top
three products. If Amsterdam integrates with MLSE it will give them access to sports arenas as
well as restaurants and hotels and be Amsterdam’s fifth distribution channel. The weakness it
8
can mitigate is the unset target market as MLSE has a diverse fan base. The threat is that Steam
Whistle and Mill Street are already sold in MLSE stadiums therefore making it harder for
Amsterdam to solidify themselves within that channel.
9
Product Strategies
The strategies that are formulated by the team is to fulfill the product and financial
objective. Creating an appeal for the customers is critical for the Amsterdam Brewery’s products
and brand image (See appendix G-2). The marketing opportunity is to integrate the top 3
products of Amsterdam Brewery with the MLSE.
Exclusive Packaging - The main product strategy for Amsterdam is to have an exclusive
packaging with the MLSE. The idea is to associate the sports teams with the labelling on the
craft beer bottles. Amsterdam Brewery’s bottles will have a nice design with the team logos
(Maple Leafs, Raptors, FC, Marlies) on them. It will also interpret that the craft beers are
associate with MLSE. This will change customer perception towards Amsterdam Brewery’s
products. Having an exclusive package will change customer’s perception towards the brand in a
positive manner (See appendix G-4).
According to an info graphic article, “Smart packaging help its targeted consumers feel
and emotional attachment to a brand” (Jarski, 2014). The influence of an exclusive packaging
towards consumers is highly effective. Not only it has an increase of perception towards the
brand, it also gives an emotional appeal. Creating the exclusive package can make an impression
towards the consumers of how they can enjoy the craft beer with their favorite team(s). How the
taste will fulfill their enjoyment and make the event much more entertaining.
Loyalty Cards - The second strategy for Amsterdam Brewery is to offer customers loyalty cards.
Providing loyalty cards towards customers can benefit both organization as well as the
consumers. This program can allow Amsterdam Brewery to collect consumer demographic
profile and the types of products they purchase and the location they purchased it. By collecting
the database of the users, Amsterdam Brewery will be able to provide product recommendations
10
for the customers and inform them with the upcoming promotions through their interest. (See
appendix G-3)
There are a lot of benefit for using the loyalty card program. Firstly, it has been proven to
boost growth within an organization. Statistics show that there are numerous amount of
industries that has been proven to be successful. Secondly, it increases companies’ reputation.
The program ensures loyal customers to keep buying the products and provides more value for
the clients. Thirdly, it will increase the sales by enticing awards and collecting points. By this
strategy, the customer has an option to increase their purchase because of the promotions. Lastly,
it provides market research and buying behaviours of different customer personas. This can
allow Amsterdam Brewery to provide specific awards in what they are interested in (Marketing
Land, 2014).
These strategies are particular for the millennial age group. Amsterdam Brewery has a
weakness of not having a specific target audience (See appendix A-1). Therefore, focusing the
strategy towards sports fans will benefit both Amsterdam Brewery and the MLSE organization
(See appendix G-1). The exclusive packaging can emphasize in the sports fans that MLSE is
associated with. While the loyalty cards program is crucial for knowing more about the
consumers through repeat purchase and their buying behaviour. It will also benefit the customers
the longer they are with Amsterdam Brewery because of the promotions that are offered.
The main goal of achieving an increase of a million dollars for the financial objective for
the first 12 months of launch is highly possible with the help of the product strategies. The
MLSE teams being associated with the brand through the exclusive packaging on the craft beer
bottles can give the millennial age group a chance to enjoy watch their favorite teams play as
much as they want. It also increases credibility of Amsterdam Brewery within the target
11
audience because of the association. The loyalty card program will add to the benefits that it will
provide towards the loyal consumers as well as the new ones. It is a win on all sides with the
proposed product strategies.
12
Pricing Strategies
This section will discuss the chosen pricing strategy Amsterdam Brewery will choose.
After primary and secondary research the team has discovered the best suited pricing strategy for
our craft brewery is premium pricing.
Premium Pricing - A strength for Amsterdam Brewery is that it is perceived as a high
quality brand that offers high quality product therefore it is believed that Premium pricing is best
suited for the pricing strategy. Due to findings from previous primary and secondary research,
clients have been known to purchase beer at a higher price if they can see the value and quality
of the item. From the craft beer survey it had been determined that 34.3% of beer consumers who
answered the survey are likely to purchase a beer at a higher price if it is offering all the listed
benefits such as all natural or organic (See appendix H-1). Amsterdam has a great opportunity to
allow a higher price since most arenas and stadiums charge an above average prices, this would
increase the total sales since it is a higher cost (See appendix H-2).
Price point recommendations:
When comparing Amsterdam Brewery to its competitors, they had a cost of $6.37 (per
mL) similar to their competitors who almost all ranged in the $6.00 level. (See appendix B-
3) Their highest rated beers (All Natural Blonde, Big Wheel Deluxe, and Boneshaker IPA) are
all ranging around the same as their competitors who are already integrated with MLSE (See
appendix B-3 and appendix H-10). The competitors offer their bottled beer at $6.25 and their
draught at $7.75 (See appendix H-13). Amsterdam Brewery beers will be served at the same
price range of $6.25 per bottle and $7.75 per draught, it will not only increase the value of the
product and the perception of the company but it will show that they are premium items (See
appendix H-3). It had been discovered that premium pricing was the best match, because it is a
13
higher price which most view as a quality aspect. (See appendix H-4) It will maintain the local
image for Toronto's sports teams. Since spectators travel distances to watch games there must be
an experience to go with it. Their well-known hockey team, the Toronto Maple leafs would be a
great example as to why some would go far to watch a match, people watch games for the teams
and not for the location. (Koreen, 2015)(See appendix H-5). The process to be accepted into
MLSE is in progress and should be completed by the end of June, 2016. A weakness is that there
are some well-known brands currently with MLSE, luckily they stick in with a similar price
range. (See appendix H-6) A weakness could also be the lack of customer knowledge, the survey
results were mock trialed in Ottawa, and the rest of the findings were stats on Toronto. We found
that our Ottawa mock trial was decent but made Amsterdam Brewery range 3rd whereas the
online findings determined otherwise. The surveys done in Ottawa showed a higher “I don’t
know the brand” percentage over “I know the brand” (See appendix H-14). Research finds that
through our past knowledge and history local Torontonians know the brand quite well. (See
appendix H-9) When comparing Amsterdam Brewery to local brewers, it is noticeable that they
have a larger selection of bottle and draft types over other companies. (See appendix B-3)
Price promotion recommendations:
Amsterdam believes that the quality of the beer should stand for itself, discounting it would
give a lower impression. Something that differentiates Amsterdam Brewery to its competitors is
after a purchase of 2 beers or more we will give them a custom made Bandana with Amsterdam's
logo and the sporting teams. To make 1000 bandanas it will cost us $12690, 00 (See appendix H-
7), which saves us 70%. This increases the likeliness to purchase and persuades customers to
purchase more beer. The bandana promotion would be done between October until March (See
appendix K-1)
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Price segmentation recommendations:
A type of price segmentation that could be used for Amsterdam Brewery and MLSE is
10% off all Amsterdam Brewery beers for students over the ages of 19 with student card and
identification and the custom made loyalty card given to them upon registration. The craft beer
survey discovered that 35.9% of 19-22 year olds go to arenas/stadiums to watch events (See
appendix H-15 and appendix H-8). Since most of our age groups were 19-22 and were students
this would be very beneficial to not only the MLSE arenas but to our company awareness (See
appendix H-16).
Consumer price sensitivity levers recommendations:
Amsterdam Breweries craft beer has degree of which the price of the product would
affect the consumer's behaviours for purchasing it. It is an item that chose quality and a great
local presence (See appendix H-11). There is some emotional attachment when it comes to
maintaining a local trait, some think it is better to support locally made products especially since
Amsterdam Brewery has been around for over 25 years. (7 reasons why you should: Support
your local brewery & drink craft beer, 2012). There can be found sentimental value when
customers are proud of being Torontonians, attending their local games with their favourite local
craft beer brings and at home feeling. This can be seen through advertisements and personal
experiences. The value to be attached when purchasing a craft beer would be to impress your
friends, purchasing something of such a high quality with such a wide selection can add a sense
of pride. This all involves the sensitivity lever that many would assume doesn’t apply to craft
beers.
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Distribution Strategies
Distribution Recommendations:
In this section the team will discuss distribution recommendations the team has come up
in order to expand Amsterdam Brewery’s distribution channel with two different distribution
recommendations for Amsterdam Brewery’s products.
1. To obtain a new business to business partnership to carry Amsterdam Brewery’s
products.
Rationale: The reason why this is a recommendation is because the team is attempting to
implement Amsterdam Brewery’s products into another business which is not retail.
2. To deliver Amsterdam Brewery products to consumer’s location (Home delivery)
Rationale: Technology is slowly taking over within our generation, a good way to cope
with technology is to have online ordering of craft beer or beer that delivers straight to
the consumer’s doorstep instead of having consumers physically go to store locations.
Business to Business Recommendations:
As for business to business recommendations that the Ultimate Draft Team has come up
with three different businesses that Amsterdam Brewery can potentially partner up with. The
three potential business to business relationships that the Ultimate Draft Team can partner up
with are MLSE, OVO Festival and El Furniture Warehouse (bar/restaurant). Weaknesses will be
discussed and how the weakness can be overcome to fit with the business to business
recommendations, and competitor risk will also be discussed. Key highlights will be discussed in
the main report and detailed information is found within the appendix (See appendix I-3)
16
1 MLSE (Maple Leaf Sports Entertainment)
Starting with MLSE, this is a great choice for MLSE as they provide high quality craft
beer which is currently on the rise of 12.8% in sales in year 2015 (NATIONAL BEER SALES &
PRODUCTION DATA, n.d.). This is great for them as it allows them to target their
demographic. The team has primary data it shows that 74/106 (See appendix I-1) respondents do
go to arenas to watch sports.
One weakness that is faced is that when partnering with MLSE brewing capacity can be a
problem. One way to overcome this problem is to increase brewing capacity by upgrading their
current brewing production line and storage space. (Wisconsin Brewing Increases Production
Capacity, 2015)
2 El Furniture Warehouse
For the second business to business opportunity, El Furniture Warehouse is a great
opportunity due to the demographic that attend this bar/restaurant. It is also a great place to get
cheap food and beverages for under $5, whereas Amsterdam Brewery’s canned and bottle
beverages fit within El Furniture Warehouse’s menu price range. (El Furniture Warehouse Menu,
n.d.)
The weakness when partnering with El Furniture Warehouse is that there will be different
competitors within the restaurant. A way to overcome this is by educating the workers at El
Furniture Warehouse. (Dirkes, 2014)
3 Music Festivals (OVO Festival)
The concert industry has a demographic that the team is currently aiming for, which the
OVO Festival is a great opportunity for Amsterdam Brewery to get into. (See appendix D-2)
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For Amsterdam Brewery to go into the concert industry is that alcohol consumption age
(19) can be an issue. Another key highlighted weakness is that there are other beer companies
partnered with OVO Festival which can affect Amsterdam Brewery in sales.
18
IMC Strategies
In this section, the team will discuss how Amsterdam brewery could accomplish the
marketing communication objective as stated earlier “To increase the awareness of the
Amsterdam Brewery’s brand by 22% by the end of October 2016. The team has also crafted four
recommended marketing communication elements and how those four elements could be
integrated into one campaign to fulfill Amsterdam Brewery’s market opportunity.
There are three IMC strategies that will be strategically beneficial for Amsterdam
Brewery in order to build awareness of the audience, those IMC elements are direct response,
sales promotion and advertising.
1. Direct response
Direct response (social media) will benefit Amsterdam Brewery in many ways such as
creating online exposure, showcasing the product, handling direct communication by building
relationship with customers and delivering customer service via social media, as well as gaining
insight from the audience by monitoring positive and negative feedback about the company
hence immediate action will be able to be mitigated (Bennet, 2014).
The team recommend Amsterdam Brewery to leverage the use of social media by posting
the content more frequently in weekly basis based on the schedule that the team has crafted
(Please see appendix J-1)
2. Sales Promotion
Repeat customers handle 25%-40% of the total revenue of a business (Uzunian, 2013).
This means that when Amsterdam Brewery is focusing to attract new consumer, they must not
neglect their current customers. However, cutting down prices has another negative impact
19
which is lowers image perceived by consumer (Martin 2009). As the team can’t risk the
Amsterdam Brewery high quality image, the team has come up with some sales promotion
techniques that will benefit Amsterdam Brewery, such as:
b. Sampling
Sampling will allow potential target market to examine and experience the product
without risk (Sales Promotion, 2006). Giving free sampling will also stimulate immediate
purchase by consumers as they will be able to decide which beer that they prefer to purchase
without guessing. The team recommend Amsterdam Brewery to hold the event touring around
the brew house more frequently
c. Contests
One of the sales promotion techniques is contests. Contests will build excitement about
product or brand amongst consumers. They will be able to participate and express their thought
or ideas through contest to win a prize. This will definitely increase the overall brand image as
well to the audience. The team has come up with an idea regarding contest that will build
awareness amongst consumer as well as enhance the brand image. Finding from primary
research that majority of the audience is enjoying outdoor activities such as running, skiing as
well as playing hockey (See appendix J-4 Respondents also conveyed that most of them (70%)
watch sports game in stadium (See appendix J-4).
4. Advertising
Both type of advertising- traditional and modern media- have to be integrated in order to
build more awareness towards consumer. Traditional media such as billboard and transit
advertising will create massive awareness toward Amsterdam Brewery as they will be installed
20
in strategic locations. This is also backed up with facts that most respondents in primary research
are commuting by bus and car in daily basis.
The digital advertising such as paid search engine marketing (SEM) will create higher
visibility on the internet due to fact that 73% of people who are looking for specific information
will directly go to search engine as soon as they go online (Andrikopoulos, 2013). This will work
strategically as the team found it from primary research that 93% of respondents are using
smartphone and 74% of them are using laptop as their daily media access. (Please see appendix
J-2 for Amsterdam Brewery web assessment)
To integrate the whole IMC elements into one message, the team has chosen a theme that
will be implemented for the whole campaign. The team decided to go with “celebration” theme.
The concept of celebration is chosen because the targeted segment (millennial) are known for
being experience seeker (Dio, 2015). The team has designed some IMC execution sample that
will be implemented for each IMC elements.
21
Implementation Plan
Product Strategy
In this section the team has listed all the activities that Amsterdam Brewery needs to do
based on four marketing recommendation (product, price, distribution and IMC) . Each activity
is detailed with description, schedule, cost, industry contact information.
Product Implementation Plan
Exclusive Packaging - The design of the new package for the bottles of All-natural Blonde and
Boneshaker will be provided by team UDT and Amsterdam Brewery needs to contact The
Equipped Brewer by June and they will have the labels printed by the end of July 2016. The lead
time of the new package before executing is also in July. By August, the new package is ready.
Throughout the execution time, the customers will be able to purchase the newly packaged beer
in the MLSE outlets during events (See appendix K-1).
Loyalty cards – The implementation for the loyalty program will be with the company Vicinity
(loyalty card for businesses). The proposal will be during June 2016 and approval in July. The
lead time is August and execute in October (See appendix K-1).
Pricing Strategy
Student Discount - The student discount cards will be made by Vicinity (Loyalty card for
businesses) and will be released June 2016 and will get approved by July. (See appendix K1)
Bandana Promotion: The MLSE bandanas will be launched around the end of October
throughout March 2016, they will be made by Spreadshirt. (See appendix K-1)
Distribution Strategy
Partnership with MLSE – The proposal for the partnership will be done in June 2016. Request
for approval is in July, lead time will be in August and September. The distribution of
22
Amsterdam Brewery’s products will be in October throughout the next following months (See
appendix K-1).
This distribution of the products will be done by the Director of Retail and Operations (See
appendix K-2).
IMC Strategies
Social Media – The social media has 4 outlets (Facebook, Twitter, Instagram, Youtube). All of
these will have a lead time during June 2016 (See appendix K-1). The execution of posting
content on these social media outlets is going to be in July 2016 throughout the months after.
Billboard – The billboard advertising has a lead time during October 2016. Execute the
advertising during November, December and March (See appendix K-1). The marketing
department of Amsterdam Brewery will conduct all the billboard advertising (See appendix K-
2).
Transit – Transit advertising has a lead time during November 2016. Execution will be
conducted by marketing department of Amsterdam Brewery on December, January and March
(See appendix K-2).
Sales Promotion – The sales promotion has a lead time during August 2016. Execute the
promotion on September 2016 until January 2017 (See appendix K-1). The prizes will be sent
out on February 2017 (See appendix K-2).
Metrics
The metrics that are mentioned will be the key indicator for the profit of Amsterdam
Brewery. The goal is to increase all these metrics to have a successful marketing plan.
Revenue - From the 2015 financial, Amsterdam Brewery currently resides on having
$15,237,312 on overall revenues for all the products.
23
Gross Profit margin per product - All of Amsterdam Brewery’s products has gross profit
margin of 48% based on the 2015 financial summary.
Units sold in total - Amsterdam Brewery sold 5,856,000 total units based on the 2015 financial
summary.
Increasing these three factors can meet the financial objective which is to increase the
overall revenue of Amsterdam Brewery by approximately a million dollars.
24
Financial Analysis
In this section the team discuss the forecast for the sales throughout the year for
Amsterdam Brewery’s top 3 product in its new distribution channel (MLSE- Air Canada Centre).
The forecast will be calculated in ATAR format (Please See appendix L-1 for definition and
explanation of ATAR model)
Starts with awareness, the team assume that due to heavy marketing communication
campaign that Amsterdam Brewery has done throughout the year, the team has forecasted that
there will be 21% increase of the brand awareness, making the number into 72% roughly
458,762 thousand of the target market aware of the brand (See appendix L-1 to see the complete
calculation).
The team measure the trialability based on primary research (See appendix L-1to see
detailed calculation). The team has discovered that 25% of the 458,762 thousand population of
target market (114,599 number of people) willing to purchase the product.
For the availability, the team has discovered that Air Canada Centre will be accessible for
30% in which the target market reside in (city of Toronto). That will narrow down the number of
customer who will actually purchase the product into 34,380 people.
The team has made an assumption based on the sales promotion that Amsterdam Brewery
has done (free bandana, contests and loyalty card) it will make the number of repeat purchase
increased to 50%, hence the team assumed that the second purchase of the product will be as
much as 17,190. Throughout the year, the team has calculated the forecasted sales that will be
around 223,468 people who purchased the top 3 products in MLSE.
The risk that the team has identified for the calculation is that the number of percentage
may vary. For example the number that the team assumed for awareness might be slightly lower
due to accuracy of people that actually see the advertising media. The team has assumed that
25
there will be also some slight errors regarding repeat purchase since the team has based it on
roughly estimation.
During one year timeframe, the team has calculated the net income earned through
distribution in Air Canada Centre which is $ 271,205. The net income is calculated based on the
revenue of the top 3 products subtracted by the expenses of the entire marketing campaign. See
appendix L-2 to see the full calculation of income statement.
The team suggested that Amsterdam Brewery, recalculate using ATAR model in the next
two month after the marketing plan is implemented to check the accuracy of the calculation.
26
Appendixes
Appendix A (SWOT)
A-1
Strengths:
- 1 Been in business for over 25 years.
(The Amsterdam Brewery Story, n.d.)
- 2 Offers taste testing and tours of their
brewing locations (Brewhouse
Brewery Tour Registration, n.d.)
- 3 Has over 20 different kind of craft
(Amsterdam Brewing Company, n.d.)
- 4 Craft beer is created using all natural
(In The Tanks, n.d.)
Weaknesses:
- 5 Does not have a specific target
market. (Garbarino, n.d.)
- 6 Has brewing capacity of 48,000
hectolitres. (Garbarino, n.d.)
Opportunities:
- 7 Millennial do drink craft beer.
(Fromm, n.d.)
- 8 Beer sales are on the rise since 2015
(NATIONAL BEER SALES &
PRODUCTION DATA, n.d.)
Threats:
- 10 Smaller and larger beer companies
- 11 Amsterdam Brewery charges more
money for the amount of canned beer.
(Amsterdam Boneshaker, n.d.), (Great
Lakes Brewery, n.d.)
27
- 9 Selling craft beer at retail stores
around Ontario. (Beer sales in grocery
stores, n.d.)
A-2 (Detailed information)
Strengths
- 1 The main strength of Amsterdam Brewery is that they have been founded in 1986,
meaning that Amsterdam Brewery has been in business for over 25 years it shows that
they have experience within the brewing industry and are definitely not a start-up
company. (The Amsterdam Brewery Story, n.d.)
- 2 The second strength is that Amsterdam Brewery offers taste testing and tours of their
brewing locations. You are able to go to their website and book a date and time to when
you want to go to their location for a tour. The location of tour is only at one location in
Toronto, which is at 245 Queens Quay West Toronto, Ontario. (Brewhouse Brewery
Tour Registration, n.d.)
- 3 The third strength is that Amsterdam Brewery has over 20 different kind of craft beers
that they sell within their store location, moving more into the specifics, Amsterdam
Brewery used to have a total of 94 different craft beers, but they currently have 57 craft
beers that they sell at their location. (Amsterdam Brewing Company, n.d.)
- 4 The fourth strength is that Amsterdam Brewery’s craft beer is created using all natural
ingredients which provides a high quality tasting beer for their customers, there are no
preservatives and is never heat pasteurized. (In The Tanks, n.d.)
28
Weaknesses:
- 5 Main weaknesses that Amsterdam Brewery faces, the first and most important weakness
is that Amsterdam Brewery does not have a specific target market, this means that they
are selling to anyone they are able to reach to instead of appealing to one specific
demographic to cater their product towards. (Garbarino, n.d.)
- 6 The second weakness that Amsterdam Brewery encounters is that they currently have a
brewing capacity of 48,000 hectolitres. Compared to Mill Street, one of Amsterdam
Brewery’s competitors, Mill Street can brew a lot more beer than Amsterdam Brewery
because Labatt (large beer company) has bought out Mill Street which will expand their
production and brewing capacity. (Garbarino, n.d.)
Opportunities:
- 7 The main opportunity for Amsterdam Brewery, the main opportunity is that millennial
do drink craft beer, the age group that tends to drink more craft beer are people aged 19-
30 year olds, within that age group, consumers say that craft beer tastes better than
regular beer. With a unique 2,592 craft beer sold, they all fit perfectly when targeting
millennial. (Fromm, n.d.)
- 8 The second opportunity is that craft beer sales are on the rise since 2015 which it has
been going up by 12.8% in the year of 2015. This shows that people are indeed
purchasing craft beer over the other beers which sales have only gone up by 0.2%.
(NATIONAL BEER SALES & PRODUCTION DATA, n.d.)
- 9 The last opportunity is that Amsterdam Brewery can make their craft beer more
accessible by selling them at retail stores around Ontario. There are currently 60 grocery
stores authorized to sell beer, and over the upcoming years there will be up to 450
29
grocery stores that will be authorized to sell beer. This gives Amsterdam Brewery an
opportunity to get their product out to more retailers. (Beer sales in grocery stores, n.d.)
Threats:
- 10 Amsterdam Brewery also faces threats as a company, the first and main threat to
Amsterdam Brewery are smaller and larger beer companies. The reason why larger and
smaller beer companies are a threat to Amsterdam Brewery is that sales of craft beer can
go down due to sales going to a different company that is not Amsterdam Brewery. A
way for Amsterdam Brewery to make sure they gain and maintain sales is by increasing
the accessibility of their products and possibly more sales.
- 11 The second threat is that Amsterdam Brewery charges more money for the amount of
canned beer. For example, Amsterdam Brewery sells a 473mL canned beer for $3.10,
while Great Lakes Brewery sells their Canuck Pale Ale 473mL for $2.65. Taking a closer
look at rating of both companies, Amsterdam Brewery has a rating of 4.6/5 while Great
Lakes Brewery has 4.7/5. People will most likely choose Great Lakes Brewery because
of their greater rating, and lower price. A solution to this threat is by having taste testing
which will allow consumers to test out Amsterdam’s products which will show the reason
why Amsterdam Brewery’s products are more expensive, which is due to the natural
ingredients and high quality of the craft beer. (Amsterdam Boneshaker, n.d.),
(Great Lakes Brewery, n.d.)
30
Appendix B (Competitor Analysis)
B-1 They have three Brewpubs so far, one in Ottawa, one in Pearson (the Airport in Toronto)
and one in Toronto but they also have what they call a Toronto Beer hall which is located within
the Brewpub.
B-2
Mill Street only has 4 monthly events as seen on their website. (Mill Street Brewery, 2015)
Whereas Steam Whistle has over 8 events a month (Steam Whistle, 2014).
B-3
31
32
Appendix D (Targeted Segments)
D-1 Proposed target audience profile
Proposed Target Audience for Amsterdam Brewery
Demographics Age: 19-30
Gender: Male & female
Education: Secondary, post-secondary (full time or part time students)
Occupation: Part time or full time
Marital Status: Single, married and common law relationship
Household Income: Around 49,363.60 annually (Elkins, 2015)
Psychographics Activities: Socializing, live sports, social media and attending events
(MarketingChart, 2013)
Interest: Sports, entertainment and connecting with peers
Opinion: Social, quality drinking
Geographic Region: North America / Canada
City: City of Toronto (Urban area)
Behavioral
Response
Occasion for use: Events, sports, games, socializing and partying
Key benefits: Quality of beer, great taste, local presence, and all
natural ingredients
The Demographic profile that Ultimate Draft Team has chosen is Millennial. Based on
2013 Time Magazine article, millennial are those who were born in 1980 to 2000 (Stein, 2013).
The team proposed that targeted audience will also consist of both male and female who are
currently participating in post-secondary education such as Colleges or Universities or in the
work force.
As for psychographics, the audience that the team proposed for Amsterdam Brewery are
mainly people who enjoy socializing during their free time. Millennial are also known for having
a high priority in terms of connecting with peers, and social media has become one of the most
vital way to connect with their peers (Investopedia, 2014). As they usually share photos, opinion,
read a review of product on the internet, they are hugely influential amongst peer on social media
33
(Morrison, 2014). The team also targeted those who enjoy activities such as socializing,
watching live sports, attending events such as festival and concert-anything related to socializing.
The team decided that the quality of the beer will be key benefit that the audience are
going after as well as the unique taste of the beer. The proposed target audience will be
consuming the product in occasion that has social ambient such as casual party and watching
sports game
Mainly due to Amsterdam Brewery prominent local presence, the team are focusing on
the geographic profile of the downtown area of Toronto as well as the surrounding GTA (Greater
Toronto Area, this will allow Amsterdam Brewery to target the proposed target market that the
Ultimate Draft Team has set.
34
D-2
35
Appendix E (Positioning)
E-1
Positioning Base
Amsterdam Brewery’s strength is having an incredible history within the Toronto area, being
over 30 years in business will be crucial for the millennial age group. The other strength that will
vary is having an all-natural ingredients make Amsterdam Brewery’s products distinctive with its
competitors (See appendix A-1). The millennial age group need an aspect of craft beer that will
stand out with all the other organizations that produce beer.
E-2
Positioning Statement
Amsterdam Brewery also has a strong history within Toronto. Millennials value experiences
over physical products (Brewers Association, 2015). Being around for more than 30 years in the
business is an aspect that Amsterdam Brewery can show to the millennial age group. It is critical
for the target audience to know about the history Amsterdam Brewery has in their hometown.
Having years and years of locally crafting brew for beer lovers is an important role for the
millennial age group. Millennials love brands that support their local communities and would
rather purchase from them over competitors (Brewers Association, 2015).
E-3
36
37
Appendix F (Marketing Plan Objectives)
F-1
Type of
Objective
Objective Rationale
Financial To increase the total sales
revenue of Amsterdam
Brewery by one million dollars
based on the 2015 financials in
the first twelve months
As stated the Air Canada Centre sold
500,000 litres of beer (500,000 litres of
beer sold each year at Air Canada Centre.
(2011, October 9). Retrieved April 04,
2016,) and this can help us achieve this
7% growth in overall revenues. This
percentage is feasible because with the
addition of MLSE Amsterdam Brewery
will have a total of five distribution
channels making the 7% increase very
attainable The main focus on the
marketing goal is to increase the profit
when introducing Amsterdam Brewery’s
products to the MLSE organization.
Product To have MLSE exclusive
packaging
Using MLSE exclusive packaging the
Amsterdam Brewery is gaining value and
increasing customer perception of the
Amsterdam Brand. Partnership marketing
38
has the potential to gain new customers in
new targeted segments as stated in this
report. Packaging has a big effect on
buying behaviours. Certain color, visual
and texture could actually affect customer
decision when they try to compare it with
competitor or stimulate immediate
purchase due to self-association or
emotional factor. {Lane, T. (n.d.). How
Does Packaging Affect Consumers?
Retrieved April 03, 2016} Packaging can
also affect the customer’s perception of
the brand and with a company like MLSE
with the good image should drive up sales
for Amsterdam Brewing Co. {How
Strategic Partnership Brand Marketing
Can Boost Business. (2011, July 15).
Retrieved April 03, 2016,}
Pricing To give a discount of 10% to
our target audience in order to
Maintaining the average price of the craft
beers can attract more consumers because
of the price appeal. Although the strategy
will be premium pricing, consumers
39
increase repeat increase
awareness by October of 2016
already have a high quality perception of
the products (See appendix B-3) by
discounting the price to our targeted
demographic will increase Amsterdam’s
brand aware
IMC I Objective 1: To increase the
awareness of the Amsterdam
Brewery’s brand by 7.1% by
the end of 2016
According to the team’s research data
findings, Amsterdam Brewery’s products
do not get enough recognition in the
market against its competitors. Having
this objective to guide the product trial
strategy for the top 3 products towards the
market can increase the overall awareness
of these products as well as the company.
This will be done through the IMC Mix
elements and traditional media.
IMC II To increase Amsterdam
Brewery’s product trial of the
top 3 products (All Natural
Blond, Bone Shaker and Big
Wheel) by 9% by September
To increase trialability means the potential
for more return customers which can
result in more potential sales which will
contribute to the financial objective
40
2016 in order to acquire enough
new customers for the 7% total
revenue increase by the end of
2017
Distribution To create a partnership with the
MLSE (Maple Leafs Sports &
Entertainment) to allow for
Amsterdam’s 7% revenue
increase by the end of 2017
Amsterdam Brewery having MLSE as a
partner in the distribution channel can
give the organization a chance to market
towards the target that are sports
enthusiasts; when partnering with MLSE
it gives Amsterdam Brewery access to
more than just the Air Canada Centre and
other sports arenas; it gives Amsterdam
Brewery access to Maple Leaf Square
which in turn gives the Brewery
admission into places such as: LCBO,
e11even, Real Sports Bar, Longo’s, as
well as different hotels and condo
buildings giving Amsterdam more access
to more consumers This will benefit
MLSE because it taps into the local
brewery market which can potentially
41
boost their company image by supporting
local businesses (Skok, M. (2014, April
10). How Small Companies Can Get
Big,Fast. Retrieved April 04, 2016). In
doing so this can help them boost their
customer base and bring in more
potentially loyal customers in which will
help their bottom line.
42
Appendix G (Product Strategies)
G-1 Growth Strategy (Ansoff)
Market Penetration: Increasing the market share of certain product(s) in an existing
market
Rationale: The proposed growth strategy for Amsterdam Brewery to be positioned in is the
existing market where market penetration will be initiated. The MLSE already has a wide range
of audience that enjoy sports. Amsterdam Brewery is looking to position their selves to have a
growth within that existing market.
G-2 BCG Matrix
Star
 All Natural Blonde
Question Marks
 Downtown Brown
 Amsterdam Seasonals
43
 416 Lager
Cash Cows
 Boneshaker IPA
 Big Wheel Deluxe
Dogs
 Adventure Brews
 Fracture
The products in the BCG matrix is based on Amsterdam Brewery’s 2015 financial summary.
Star: The Definition of a star is high market share with high growth. The all natural Blonde is
considered a star because it generates the most revenue of all the products and represents 43% of
the sales and it is also Amsterdam’s flagship product
Question marks: These three products are considered question marks because all three of these
products have a lot of money spent to make them but combined they only generate 19% of total
sales
Cash Cows: These two products are cash cows because they both bring in enough revenue to
balance out production costs and together they combine for 34% of total sales
Dogs: Adventure Brews and Fracture are considered dogs because combined they only represent
4% of sales; as well the production costs for adventure brews can cost anywhere from $2.95-
$5.95 and to make fracture production costs $2.95
G-3 Augmented product assessment
44
Core Product – All-natural ingredients
Actual Product – beer bottles, cans, lager
Augmented Product – exclusive packaging, loyalty cards
Rationale: Amsterdam Brewery’s benefit with its competitors is the All-natural ingredients that
its products carry. The actual product includes beer bottles, cans and lager. The augmented
product is the exclusive packaging and loyalty cards that Amsterdam Brewery is proposing for
product strategy. The style that the products will be focused on is sports-themed for the MLSE
teams’ fans.
G-4 Product analysis
ANALYTIC BONESHAKER BIG WHEEL ALL-NATURAL
BLOND
45
Target IPA Regular lager
drinkers
Light beer drinkers
Feature Citrus, flavour, high,
IBU, touch of
caramel
Aromatic, rich
flavour
Crisp, Light
Benefit Fresh, drinkable
strong beer
Enjoyable and easy
drinking
Nice to pair with
food, light drinking
Life Cycle Maturity/Growth Maturity/Growth Maturity/Growth
Rationale: The product analysis will determine the type of consumer that drinks the beer and
which product they prefer in a regular basis. The Boneshaker targets IPA drinkers, Big Wheel
with regular lager drinkers and All-natural Blond with the light beer drinkers. The Boneshaker
has a citrus more of a sweet taste flavor. Big wheel has an aroma that enhances the taste it is also
rich in flavor. The All-Natural Blond has a crisp and light taste. The benefit for Boneshaker is it
is fresh, strong alcohol content but very drinkable because of the good taste. Big wheel is
enjoyable and is to drink. All-natural Blond goes well with food and is very light to drink. Every
product is in their maturity and growth stage.
46
Appendix H (Pricing Strategies)
H-1
H-2 The average bottle of Tankhouse Ale by Mill Street is 341 mL and sells for approximately
$2.33.(See appendix B-15) When ordering a Tankhouse Ale in a bottle at the Air Canada Centre
it will cost $6.25 which is over double the cost (See appendix B-16)
H-3 All three of the beers will need to be increased in price to ensure a match to the average
price of other beers if served with MLSE and to make a high quality appearance.
H-4 Although MLSE offers some of our competitors, Amsterdam Brewery has an advantage by
being the first local Toronto Brewery.
H-5 Giving them a pleasurable experience from the local quality beer, to the Toronto vibes, and
finishing it off with the memorable experiences. There will certainly be benefits when it comes
to merging with MLSE, not only does the location suit our target but it also allows our target to
learn more about Amsterdam Brewery.
H-6 That can drive sales away, but once Amsterdam’s beer is in MLSE and gets marketed
properly there should be no complications.
47
H-7
48
H-8 This was the highest ranking, and out of 84,556 (University of Toronto/Enrollment , 2014)
currently enrolled students at University of Toronto there would be approximately 2,335 students
(See appendix H-17). Students would pay $6.97 from the 10% discount for a beer instead of
$7.75.
H-9 "We hope that through reflecting on our history and continuing our passion for authenticity,
the brewpub will become a destination for the people of Toronto and it's visitors" says Jeff
Carefoote, owner and operator of the Amsterdam Brewing Company (Johnson, 2012).
H-10 It is easy to adjust any minor price issues to ensure they fit well in the arenas and
stadiums.
H-11 It is an item that one does not require purchasing on a regular basis, and it isn’t a necessity
but it is more of a luxury.
H-12
H-13
49
H-14
H-15
H-16
50
H-17
51
Appendix I (Distribution Strategies)
I-1
I-2
Graph Source:
http://media.ticketmaster.com/en-us/img/static/ticketlogy/images/2012_Concert_Trends_v11.pdf
I-3
1 MLSE
Rationale: The main reason being that the audience that sports and entertainment cater towards.
Craft beer is also the rise of 12.8% in sales in the year 2015 (NATIONAL BEER SALES &
PRODUCTION DATA, n.d.). Also during our findings and data collection through surveys,
52
Ultimate Draft Team has identified that 74 (69.8%) of 106 respondents (See appendix I-1) have
said they in fact do watch sports in a sports arena. The respondents are aged 19 and over that
have consumed beer before.
Weaknesses: One weakness with MLSE is that brewing capacity will not equal with the amount
of people who attend the sporting event at MLSE, a way to overcome this problem is to increase
brewing capacity is by increasing the amount of tanks (to increase to allow greater production)
and production line technology (Wisconsin Brewing Increases Production Capacity, 2015)
before attempting to partner with MLSE so the problem can be fixed before the partnership.
2 El Furniture Warehouse
Rationale: El Furniture Warehouse is trying to target a younger demographic (Ipsum, 2014),
specifically those who go out for a drink or want a place to hang out with friends. El Furniture
Warehouse’s food and beverage menu are all under $5 in price, which in this case, some of
Amsterdam Brewery’s caned and bottled craft beers (Boneshaker, All Natural Blonde, Brown
Ale, etc.) are all under $5 which fits within El Furniture’s menu (El Furniture Warehouse Menu,
n.d.).
Weakness: The weakness that Amsterdam Brewery may run into while partnering with El
Furniture Warehouse is that there will be other smaller and larger beer and craft beer
competitors. For example, El Furniture Warehouse also sells Bud Light, Guinness beer cans, etc.
A way to overcome this is by educating the workers at El Furniture Warehouse and allow them
to become experts with Amsterdam Brewery’s products as it will allow the employees to explain
to the customers what is great about Amsterdam Brewery’s craft beer, such as the natural
ingredients, as this can increase product sales, product awareness and customer satisfaction.
53
(Dirkes, 2014) Another way to compete with El Furniture Warehouse’s current beer/craft beer
partners is by having discounts and/or special offers (What to do when your competitor lowers
their prices, n.d.), such as a cosmetic giveaway with the purchase of Amsterdam Brewery’s craft
beer.
3 OVO Festival
Rationale: The Ultimate Draft Team believes that this is a good opportunity for Amsterdam
Brewery because people who attend concerts also fit within our target audience, which are
people aged 19 to 35 and can be either male or female. As of 2011 and 2012, the age groups 18-
24 and 25-34 are most dominant when it comes to attending live concerts (See appendix I-2).
Weakness: A weakness for Amsterdam Brewery to go into the concert industry is that people
who attend live concerts need to be legal age to consume beer, and sometimes live concerts do
not have an age restriction to attend the concert. Another weakness is that there are other beer /
craft beer competitors within OVO Festival. A way to overcome the competitors is also by
having discounts or sales on Amsterdam Brewery products within OVO Festival. (What to do
when your competitor lowers their prices, n.d.)
54
Appendix J (IMC Strategies)
J-1
Social Media Assessment
Amsterdam Brewery - Facebook, Instagram, Twitter, Youtube
o Facebook(11.2k likes)
o Instagram(10.8k followers)
o Twitter(27.2k followers)
o YouTube (40 followers)
Social media strategy
Facebook
Rationale: In Canada Facebook is the most popular social media site. In a 2015 Study 59% of
respondents use Facebook. Even though Amsterdam Brewery is already on Facebook, they
should be more interactive with their followers and keep them updated.
Linkedin
Rationale: Linkedin was the second highest social media used in Canada at 30%, therefore
Amsterdam Brewery should create a Linkedin page.
55
2) content mind map for Amsterdam Brewery
3) Content calendar for one week, including:
Weekly content calendar (June 2016) example
Platform: Facebook, Twitter and Instagram
Date 11
Monday
12
Tuesday
13
Wednesda
y
14
Thursd
ay
15
Friday
16 Saturday 17 Sunday
Platf
orm
FB
TW
IG
FB
TW
IG FB
TW
FB
TW
IG
DAY OFF TW
FB
IG
56
Topi
c
“Toronto and
Amsterdam
Brewery”
Posta picture
of Amsterdam
Beer with a
background of
iconic place in
Toronto
Check in Posting
upcoming
events
Re-
tweetin
g and
answeri
ng
posts
on AB’s
Announceme
nt of the
winners
(all social
media
platform)
DAY OFF Postsome
pictures about
Amsterdam beer
and hockey game
With hashtag
#SundayFunday
J-2
Amsterdam BreweryWebassessment
1) SMART website objective
To increase the website traffic by 12% by simplifying the navigation of the website by the end of
2016
Rationale: improving the interaction with existing and potential consumers can help Amsterdam
Brewery’s awareness towards the public and also brings up the sales.
2) Top 3 key messages to get across to the target market while visiting website.
1. We are original
2. Visit the Amsterdam Brewery’s restaurant to experience a whole new level of local craft
beer
3. We use all natural ingredients
3) All of the content areas (pages/topics) to include on the website.
Title
Location
Contact
Menu (beers, beverage, food)
Social media
Site map
Policies and rights
Terms and conditions
57
4) All of the navigation tools that needs to be include on the website.
Custom search bar (powered by Google or in-site)
Site Map
Biographies
5) Wireframe recommendation
58
J-3
IMC execution detail
IMC Media & Execution
As the team has mentioned in the first instalment of IMC execution plan, Pattison and Clear
Channel Canada will be two advertising agencies who provides out of home media advertising for
Amsterdam Brewery. Pattison will provide interior advertisement cards for TTC (bus) and transit shelter
meanwhile Clear Channel Canada will assist with outdoor advertising using billboard.
For the transit advertising the team has decided to focus on Bus advertising as 47.1% of the
respondents from primary research saying that they commute using bus in daily basis
. There will be two face type of transit advertising, one is half showing (with 831 number of
faces) and the other one is full showing with 1662 number of faces
59
The team has decided to advertise with transit advertising three times in a year,one full month for
each (further will be explained in the next section: campaign calendar). Based on the calculation by the
UDT team, the team estimated that the cost for advertising with Pattison would be $ 66,629 for three
months period-two months with dull showing and one month with half showing.
60
Clear Channel Canada will be assisting Amsterdam Brewery with billboard advertising. The team
has proposed to launch the campaign through billboard for three full months throughout the year. The
team has decided to locate the advertising material in Gardiner & Sherburne due to its strategic location
within the downtown Toronto.
For billboard advertising, there is a production cost ($ 2,800) for one advertisement and $ 3,890
installation fees. The team has calculated that to advertise with billboard Amsterdam Brewery needs to
add $ 89,625 for three months. Throughout the year.
61
Cost of billboard adsfor3 months
62
Appendix J-4
63
Appendix K (Implementation Plan)
K-1
K-2
Action Who Time How Contact person
IMC
Social
media
Web
developer/soci
al media
June (time
lead)
July-May
(execution)
During the
lead time
develop the
content for
each of the
social
media
platform in
June based
on the
execution
IMC
example
Publish the
content
based on
IMC
calendar.
Billboard Marketing
department of
Production of
creative
execution of
Contact
Pattison
and hand
Pattison
Bree Williamson
64
Amsterdam
Brewery
billboard –
October
Execution
and
installation -
November
out the
example
for
execution
(billboard)
Corporate Receptionist
905-282-6800
bwilliamson@pattisonoutdoor.co
m
Transit Marketing
department of
Amsterdam
Brewery
Production of
creative
execution of
billboard –
October
execution and
installation -
November
Contact
Pattison
and hand
out the
example
for
execution
(billboard)
Clear channel Canada
(Kevin Leslie Vice President,
Operations & Production)
20 Dundas Street West, Suite
1001
Toronto, ON M5G 2C2
(416.408.0800)
Sales
Promotio
n
Dave Martin
Director, Retail
Sales &
Operations
And social
media
department
September to
January for
the contest.
End of
January
2017-
announcemen
t of winners
Publish the
contest on
social
media and
restaurant
with flyers
during the
lead time
(September
-January)
and
announce
the winners
by the end
of January
2017.
Action Who Time How Contact person
Product
Designing the
exclusive
packaging
Production
Coordinator /
Lead time-
June
The production
division contacts
the The
Kristen Corbisiero
Managing Editor of
65
Packaging
Supervisor
Execution-
July
Equipped
Brewer
or 518-635-0375.
Executing
exclusive
packaging to
Boneshaker
and All
Natural MLSE
Production
Coordinator /
Packaging
Supervisor
Lead time-
August
Execution-
September
Amsterdam Brewery
production
Getting
loyalty card
from vicinity
Lead time
– June
Execution-
Get the
card ready
- July
Contact vicinity
for discussing
the partnership
on loyalty card
BUSINESS
INQUIRIES OF
VICINITY
1-855-292-9766
info@vicinityrewards.ca
Student
Discount
Director of
Finance &
Admin
Lead time
in – june
Start to apply
the student
discount
Distribution
(MLSE)
Director, Retail
Sales &
Operations
Get the
proposal
done by
June and
send it in
June.
Approval
in July
August is
the lead
time
(preparing
the product
to be
distributed
to MLSE)
Distribute
the product
to MLSE
66
Appendix L (Financial Analysis)
L-1
L-2
67
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Toronto Blue Jays, Raptors developing devoted fan base willing to follow when the team hits the
road. (n.d.). Retrieved April 08, 2016, from http://news.nationalpost.com/sports/mlb/toronto-
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the-road
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Amsterdam Brewery - Jim Final Deliverable (1)

  • 1. AMSTERDAM BREWERY BUSINESS PLANNING BY: Kyle Hahn Septyan Himiwan Emil Grande Danny Diep Brittany Millard MKT2260 Jim Neubauer Section 320 Friday April 08th, 2016
  • 2. Table of Contents SWOT …………..…………………………………….………………………….…………… 1-2 Competitor Analysis…………….…………………..………………………………….…...... 2-3 The Market Opportunity …………………………………..………………...…………….….. 4 Targeted Segments …………………………………..………………..……………….........….. 5 Positioning ………….……………..……………………………………………..……....…… 5-6 Marketing Plan Objectives …….…………………………………………..………………... 7-8 Product Strategies …….……………………………………………………………….…... 9-11 Pricing Strategies …….…………………………………………………………..………... 12-14 Distribution Strategies …….………………………………………………….…………... 15-17 IMC Strategies …….…………………………………………………………..…………... 18-20 Implementation Plan …….………………………………………………………………... 21-23 Financial Analysis …….…………………………………………………………………... 24-25 Appendix……………………………..……………………………..………………..………… 26
  • 3. Appendix A…………………………………………………...................................... 26-29 Appendix B……………………………………………………………………..…… 30-31 Appendix D………………………………………………………………………..… 32-34 Appendix E………………………………………………………………………..… 35-36 Appendix F………………………………………………………………………..… 37-41 Appendix G………………………………………………………………………..… 42-45 Appendix H………………………………………………………………………..… 46-50 Appendix I…………………………………………………….…………………..… 51-53 Appendix J……………………………………….………………………………..… 54-62 Appendix K………………………………………………………………………..… 63-65 Appendix L……………………………………………………………………….…..… 66 References……………………………..……………………………..……………………. 67-72
  • 4. 1 SWOT For Amsterdam Brewery’s SWOT analysis, the team has identified various strengths, weaknesses, opportunities and threats related to Amsterdam Brewery has a whole company internally and externally. There will be the key highlights in the report and detailed information (See appendix A-2) and a SWOT chart. (See appendix A-1) Strengths: The key highlights of Amsterdam Brewery’s strengths are that they have been in business for 30 years and are not new to the craft beer industry (The Amsterdam Brewery Story, n.d.). The second strength is that Amsterdam Brewery offers free taste testing and tours around their location, with the ability to book the time and date of when you want to tour their location (Brewhouse Brewery Tour Registration, n.d.). Third strength is that Amsterdam Brewery has over 20 different kind of craft beer sold within their store location (Amsterdam Brewing Company, n.d.). The fourth strength is that Amsterdam Brewery uses all natural ingredients to make sure their craft beer is high quality (In The Tanks, n.d.). Weaknesses: Weaknesses that Amsterdam Brewery encounters are that they don’t have an actual target market to appeal towards (Garbarino, n.d.). The second weakness is that Amsterdam Brewery is only able to brew a limited amount of beer (48,000 hectolitres) (Garbarino, n.d.). Opportunities: The main opportunity is that millennial prefer craft beer over normal beer (Fromm, n.d.). The second opportunity is that craft beer sales are currently on the rise from the previous year by 12.8% (NATIONAL BEER SALES & PRODUCTION DATA, n.d.). The
  • 5. 2 last opportunity is that Amsterdam Brewery can sell to more retailers around Ontario. (Beer sales in grocery stores, n.d.) Threats: The main threat to Amsterdam Brewery is that larger and local beer companies can be a threat to Amsterdam Brewery, which can impact sales. The second threat that Amsterdam Brewery faces is that the price of Amsterdam beer is higher than the amount of mL you get back compared to other competitors such as Great Lakes Brewery. (Amsterdam Boneshaker, n.d.), (Great Lakes Brewery, n.d.) Competitor Analysis Amsterdam Brewery has four main competitors, first one is Mill Street Brewery they offer signature beers. This selection of beer is offered as intensive distribution meaning it is in most stores that beer is sold unlike their specialty beers. Mill Street Brewery stands out by sponsoring many events and offering a wide selection of over 60 unique beers that have won over 100 different awards (About us, 2015). They not only brews beers and sells them but they own their own pubs called Mill Street Brewpub (See appendix B-1). They don’t partner very often with events or activities, which somewhat diminishes their “Local” presence (See appendix B-2). A very unique trait that Steam Whistle offers is their vintage vehicles, they describe it as “The car you drive, like the beer you hold in hand, reflects your unique character and personal style.” These cars are used for events and transportation. Maintaining a fun yet vintage appearance, they stick with traditional brewery techniques for best natural tastes. Steam Whistle has their beer offered worldwide which is a strength. Steam Whistles weaknesses would be that their drive for quality rises the prices quite a bit and they don’t have a diversified product line
  • 6. 3 like many others. Steam Whistle holds up to their standards and believe one beer is good enough if the quality is there (Steam Whistle, 2014). Great Lake Brewery offers a wide selection of Year Round beers with creative names and logos that are served in LCBO’s, Craft beer restaurants, Bars and Pubs. Alongside their Year Round, they offer seasonal beer that are there for a limited time. Unique feature they offer is Tank Ten, which is where they give the makers the green light to make whatever they would like. They also have what they call Project X and Collaborations. Great Lakes Brewery is very interactive with events and social media. A drawback is offering such a wide selection for those who want a familiar beer might feel intimidated (Great Lakes Brewery, 2014). Left field brewery is known for offering their top seller craft beers in not only tap but draft too. This is beneficial to those who may prefer beer on tap rather than in bottle or the other way around. A downfall for them is that they have only been around for 3 years (See appendix B-3), they are still getting used to the rapid beer market changes and learning to integrate themselves. Their competitors think outside the box and strive for success. A common ground they have is a wide range of selection. Participating/hosting events helps them bring their local presence up and help others discover craft beers. Amsterdam Brewery is rated a 4.6 stars out of 5 on Google (See appendix B-3), customers are enjoying the local aspect that they bring and the quality of craft beers. Their success is an opportunity to expand into a bigger environment such as MLSE, where they can attract more of the defined target determined and inform current and new customers about who they really are and what they have to offer. There is a saturated competitive market with lots of benefits to offer so Amsterdam Brewery needs to stand out.
  • 7. 4 The Market Opportunity In this section the team will describe the marketing opportunity based on internal and external factors as well as the competitor’s situation. The marketing opportunity that has been chosen is to integrate Amsterdam Brewery’s top three selling products (All Natural Blonde, Boneshaker IPA, and Big Wheel Deluxe) in the Air Canada Centre. Amsterdam Brewery has a weakness which is the lack of target market. Based on secondary research the team has discovered that millennial have the most potential when describing our market. Currently millennial ages 19-30 tend to drink more craft beer compared to other age segments (Taylor, 2016). The team has calculated with primary research that in the GTA 637.170 millennial watch sports in a stadium or arena such as Air Canada Centre (See appendix D-1) Steam Whistle and Mill St. whom are Amsterdam Breweries competitors are currently integrated into MLSE. However Mill St. has a much lower rating on Google compared to Amsterdam Brewery, (See appendix B-3) Steam Whistle has only one type of beer therefor there is not much room for customer’s preferences. Amsterdam on the other hand has 9 seasonal / year round beers, and 3 of them have won awards such as the Canadian Brewing Awards and Ontario Brewing Awards (Amsterdam Brewery, n.d) One of their strengths is that Amsterdam Brewery is a high quality craft beer company that offers all natural ingredients. This clarifies the millennial behaviors which are enjoying all natural ingredients and high quality products. However, Amsterdam Brewery has a lack of brewing capacity of only 48,000 hectoliters annually. This is a downfall that Amsterdam Brewery need to focus on once profit from the integration of MLSE starts growing.
  • 8. 5 Targeted Segments As mentioned in the first meeting currently Amsterdam Brewery has no specific target market. The company is currently targeting those at any ages who enjoy great tasting beer and willing to try specialty beer (Garbarino, 2016. Kknowing to whom the company is targeting its product is crucial as once the targeted segment is identified, the company will be able to execute the marketing plan that fits to the targeted audience (Kaleikini, 2009). There are three ways of defining the target market-by identifying demographics, psychographics and geographic (Porta, 2012). Identifying behavioral response such as knowing in what occasion the audiences enjoy the product will also help Amsterdam Brewery to specify its profile audience. ( See appendix D- 1&D-2) Positioning Positioning Base: The positioning base for Amsterdam Brewery focuses on the millennial age group. The behavioural aspect of this group is enjoyment of watching live sports within an arena. The area of focus is downtown Toronto which Amsterdam Brewery has a prominent local presence. Positioning Statement: “For the millennial age group (19-30) who enjoys live sports, the Amsterdam Brewery offers a high quality craft beer with a premium price. Unlike the other local craft breweries in Toronto, Amsterdam Brewery provides craft beer with all-natural ingredients and a distinctive taste.” The positioning statement is emphasized on targeting the millennial age group who are sports fans in Toronto. The all-natural ingredients and distinctive taste of Amsterdam Brewery’s products is the best aspect compared to its competitors (See appendix A-1). Since Amsterdam Brewery has an advantage of having the all-natural ingredients against its competitors, this
  • 9. 6 feature will help on top of having a high quality taste plus premium pricing for the millennial age group. Based on the proposed target segment, the key benefit for Amsterdam Brewery is the unique taste. This aspect will be distinctive for the millennial group as they can consider it as fresh and enjoyable craft beer. The millennial age group also seek strong value for their preferable craft beer and does not care about having a higher price (Brewers Association, 2015). This gives Amsterdam Brewery the advantage against its competitors because the brand is perceived as having high quality with a premium price. Having a strong history within Toronto also increases value for millennial. (See appendix E-2). Perceptual Map The perceptual map illustrates the placement where each brand stands in terms of customer ratings from Google and average price of their craft beer per millilitres. The whole perceptual map is an illustration that supports the positioning statement. The ratio between these two variables can determine how the brands are doing in the market and how customer see them as (See appendix E-3). In the perceptual map, Amsterdam Brewery has an advantage against most of its competitors. The map demonstrates that Amsterdam Brewery has a 4.6/5 in terms of customer rating and a $6.37 (per mL). It makes Amsterdam Brewery a high quality brand that has premium pricing. To conclude Amsterdam Brewery’s placement in the perceptual map, it portrays an appeal to the millennial audience. Millennial preferring a brand that has a high quality and premium price is met by Amsterdam Brewery’s rating and price point.
  • 10. 7 Marketing Plan Objectives In this section the team will be stating the six main objectives for the marketing plan with rationale (See appendix F-1). For the financial objective the team chose to have the objective of increasing the overall revenue by one million dollars in 12 months. According the Amsterdam Brewery financial summary, Amsterdam Brewery made a total of 15 million in 2015 and combined the top three products made over ten million dollars in 2015 therefore keeping the success of the top three products is crucial. For the product objective the team chose to redesign the packaging for MLSE partnership. This is good because in the survey question 10 that asks if respondents were likely drink beer if it was brewed locally on a scale from 1-5, 28.7% of respondents gave a rating of 5 in which gives MLSE a reason to do this because people like locally brewed beer and it would look good for the organization to support local businesses. In terms of pricing, Amsterdam Brewery will offer the target audience a 10% discount in order to achieve an increase of 20% repeat purchase. This will be done before October 2016 and the start of June. The promotion objectives that the team chose is to increase awareness by 9% and increase trialability by 7%. In the survey the team found that Amsterdam was ranked third in awareness behind Steam Whistle and Mill Street Brewery. In order to get trialability Amsterdam Brewery must gain more awareness and attract repeat buyers. The distribution objective is creating this partnership with MLSE to sell Amsterdam’s top three products. If Amsterdam integrates with MLSE it will give them access to sports arenas as well as restaurants and hotels and be Amsterdam’s fifth distribution channel. The weakness it
  • 11. 8 can mitigate is the unset target market as MLSE has a diverse fan base. The threat is that Steam Whistle and Mill Street are already sold in MLSE stadiums therefore making it harder for Amsterdam to solidify themselves within that channel.
  • 12. 9 Product Strategies The strategies that are formulated by the team is to fulfill the product and financial objective. Creating an appeal for the customers is critical for the Amsterdam Brewery’s products and brand image (See appendix G-2). The marketing opportunity is to integrate the top 3 products of Amsterdam Brewery with the MLSE. Exclusive Packaging - The main product strategy for Amsterdam is to have an exclusive packaging with the MLSE. The idea is to associate the sports teams with the labelling on the craft beer bottles. Amsterdam Brewery’s bottles will have a nice design with the team logos (Maple Leafs, Raptors, FC, Marlies) on them. It will also interpret that the craft beers are associate with MLSE. This will change customer perception towards Amsterdam Brewery’s products. Having an exclusive package will change customer’s perception towards the brand in a positive manner (See appendix G-4). According to an info graphic article, “Smart packaging help its targeted consumers feel and emotional attachment to a brand” (Jarski, 2014). The influence of an exclusive packaging towards consumers is highly effective. Not only it has an increase of perception towards the brand, it also gives an emotional appeal. Creating the exclusive package can make an impression towards the consumers of how they can enjoy the craft beer with their favorite team(s). How the taste will fulfill their enjoyment and make the event much more entertaining. Loyalty Cards - The second strategy for Amsterdam Brewery is to offer customers loyalty cards. Providing loyalty cards towards customers can benefit both organization as well as the consumers. This program can allow Amsterdam Brewery to collect consumer demographic profile and the types of products they purchase and the location they purchased it. By collecting the database of the users, Amsterdam Brewery will be able to provide product recommendations
  • 13. 10 for the customers and inform them with the upcoming promotions through their interest. (See appendix G-3) There are a lot of benefit for using the loyalty card program. Firstly, it has been proven to boost growth within an organization. Statistics show that there are numerous amount of industries that has been proven to be successful. Secondly, it increases companies’ reputation. The program ensures loyal customers to keep buying the products and provides more value for the clients. Thirdly, it will increase the sales by enticing awards and collecting points. By this strategy, the customer has an option to increase their purchase because of the promotions. Lastly, it provides market research and buying behaviours of different customer personas. This can allow Amsterdam Brewery to provide specific awards in what they are interested in (Marketing Land, 2014). These strategies are particular for the millennial age group. Amsterdam Brewery has a weakness of not having a specific target audience (See appendix A-1). Therefore, focusing the strategy towards sports fans will benefit both Amsterdam Brewery and the MLSE organization (See appendix G-1). The exclusive packaging can emphasize in the sports fans that MLSE is associated with. While the loyalty cards program is crucial for knowing more about the consumers through repeat purchase and their buying behaviour. It will also benefit the customers the longer they are with Amsterdam Brewery because of the promotions that are offered. The main goal of achieving an increase of a million dollars for the financial objective for the first 12 months of launch is highly possible with the help of the product strategies. The MLSE teams being associated with the brand through the exclusive packaging on the craft beer bottles can give the millennial age group a chance to enjoy watch their favorite teams play as much as they want. It also increases credibility of Amsterdam Brewery within the target
  • 14. 11 audience because of the association. The loyalty card program will add to the benefits that it will provide towards the loyal consumers as well as the new ones. It is a win on all sides with the proposed product strategies.
  • 15. 12 Pricing Strategies This section will discuss the chosen pricing strategy Amsterdam Brewery will choose. After primary and secondary research the team has discovered the best suited pricing strategy for our craft brewery is premium pricing. Premium Pricing - A strength for Amsterdam Brewery is that it is perceived as a high quality brand that offers high quality product therefore it is believed that Premium pricing is best suited for the pricing strategy. Due to findings from previous primary and secondary research, clients have been known to purchase beer at a higher price if they can see the value and quality of the item. From the craft beer survey it had been determined that 34.3% of beer consumers who answered the survey are likely to purchase a beer at a higher price if it is offering all the listed benefits such as all natural or organic (See appendix H-1). Amsterdam has a great opportunity to allow a higher price since most arenas and stadiums charge an above average prices, this would increase the total sales since it is a higher cost (See appendix H-2). Price point recommendations: When comparing Amsterdam Brewery to its competitors, they had a cost of $6.37 (per mL) similar to their competitors who almost all ranged in the $6.00 level. (See appendix B- 3) Their highest rated beers (All Natural Blonde, Big Wheel Deluxe, and Boneshaker IPA) are all ranging around the same as their competitors who are already integrated with MLSE (See appendix B-3 and appendix H-10). The competitors offer their bottled beer at $6.25 and their draught at $7.75 (See appendix H-13). Amsterdam Brewery beers will be served at the same price range of $6.25 per bottle and $7.75 per draught, it will not only increase the value of the product and the perception of the company but it will show that they are premium items (See appendix H-3). It had been discovered that premium pricing was the best match, because it is a
  • 16. 13 higher price which most view as a quality aspect. (See appendix H-4) It will maintain the local image for Toronto's sports teams. Since spectators travel distances to watch games there must be an experience to go with it. Their well-known hockey team, the Toronto Maple leafs would be a great example as to why some would go far to watch a match, people watch games for the teams and not for the location. (Koreen, 2015)(See appendix H-5). The process to be accepted into MLSE is in progress and should be completed by the end of June, 2016. A weakness is that there are some well-known brands currently with MLSE, luckily they stick in with a similar price range. (See appendix H-6) A weakness could also be the lack of customer knowledge, the survey results were mock trialed in Ottawa, and the rest of the findings were stats on Toronto. We found that our Ottawa mock trial was decent but made Amsterdam Brewery range 3rd whereas the online findings determined otherwise. The surveys done in Ottawa showed a higher “I don’t know the brand” percentage over “I know the brand” (See appendix H-14). Research finds that through our past knowledge and history local Torontonians know the brand quite well. (See appendix H-9) When comparing Amsterdam Brewery to local brewers, it is noticeable that they have a larger selection of bottle and draft types over other companies. (See appendix B-3) Price promotion recommendations: Amsterdam believes that the quality of the beer should stand for itself, discounting it would give a lower impression. Something that differentiates Amsterdam Brewery to its competitors is after a purchase of 2 beers or more we will give them a custom made Bandana with Amsterdam's logo and the sporting teams. To make 1000 bandanas it will cost us $12690, 00 (See appendix H- 7), which saves us 70%. This increases the likeliness to purchase and persuades customers to purchase more beer. The bandana promotion would be done between October until March (See appendix K-1)
  • 17. 14 Price segmentation recommendations: A type of price segmentation that could be used for Amsterdam Brewery and MLSE is 10% off all Amsterdam Brewery beers for students over the ages of 19 with student card and identification and the custom made loyalty card given to them upon registration. The craft beer survey discovered that 35.9% of 19-22 year olds go to arenas/stadiums to watch events (See appendix H-15 and appendix H-8). Since most of our age groups were 19-22 and were students this would be very beneficial to not only the MLSE arenas but to our company awareness (See appendix H-16). Consumer price sensitivity levers recommendations: Amsterdam Breweries craft beer has degree of which the price of the product would affect the consumer's behaviours for purchasing it. It is an item that chose quality and a great local presence (See appendix H-11). There is some emotional attachment when it comes to maintaining a local trait, some think it is better to support locally made products especially since Amsterdam Brewery has been around for over 25 years. (7 reasons why you should: Support your local brewery & drink craft beer, 2012). There can be found sentimental value when customers are proud of being Torontonians, attending their local games with their favourite local craft beer brings and at home feeling. This can be seen through advertisements and personal experiences. The value to be attached when purchasing a craft beer would be to impress your friends, purchasing something of such a high quality with such a wide selection can add a sense of pride. This all involves the sensitivity lever that many would assume doesn’t apply to craft beers.
  • 18. 15 Distribution Strategies Distribution Recommendations: In this section the team will discuss distribution recommendations the team has come up in order to expand Amsterdam Brewery’s distribution channel with two different distribution recommendations for Amsterdam Brewery’s products. 1. To obtain a new business to business partnership to carry Amsterdam Brewery’s products. Rationale: The reason why this is a recommendation is because the team is attempting to implement Amsterdam Brewery’s products into another business which is not retail. 2. To deliver Amsterdam Brewery products to consumer’s location (Home delivery) Rationale: Technology is slowly taking over within our generation, a good way to cope with technology is to have online ordering of craft beer or beer that delivers straight to the consumer’s doorstep instead of having consumers physically go to store locations. Business to Business Recommendations: As for business to business recommendations that the Ultimate Draft Team has come up with three different businesses that Amsterdam Brewery can potentially partner up with. The three potential business to business relationships that the Ultimate Draft Team can partner up with are MLSE, OVO Festival and El Furniture Warehouse (bar/restaurant). Weaknesses will be discussed and how the weakness can be overcome to fit with the business to business recommendations, and competitor risk will also be discussed. Key highlights will be discussed in the main report and detailed information is found within the appendix (See appendix I-3)
  • 19. 16 1 MLSE (Maple Leaf Sports Entertainment) Starting with MLSE, this is a great choice for MLSE as they provide high quality craft beer which is currently on the rise of 12.8% in sales in year 2015 (NATIONAL BEER SALES & PRODUCTION DATA, n.d.). This is great for them as it allows them to target their demographic. The team has primary data it shows that 74/106 (See appendix I-1) respondents do go to arenas to watch sports. One weakness that is faced is that when partnering with MLSE brewing capacity can be a problem. One way to overcome this problem is to increase brewing capacity by upgrading their current brewing production line and storage space. (Wisconsin Brewing Increases Production Capacity, 2015) 2 El Furniture Warehouse For the second business to business opportunity, El Furniture Warehouse is a great opportunity due to the demographic that attend this bar/restaurant. It is also a great place to get cheap food and beverages for under $5, whereas Amsterdam Brewery’s canned and bottle beverages fit within El Furniture Warehouse’s menu price range. (El Furniture Warehouse Menu, n.d.) The weakness when partnering with El Furniture Warehouse is that there will be different competitors within the restaurant. A way to overcome this is by educating the workers at El Furniture Warehouse. (Dirkes, 2014) 3 Music Festivals (OVO Festival) The concert industry has a demographic that the team is currently aiming for, which the OVO Festival is a great opportunity for Amsterdam Brewery to get into. (See appendix D-2)
  • 20. 17 For Amsterdam Brewery to go into the concert industry is that alcohol consumption age (19) can be an issue. Another key highlighted weakness is that there are other beer companies partnered with OVO Festival which can affect Amsterdam Brewery in sales.
  • 21. 18 IMC Strategies In this section, the team will discuss how Amsterdam brewery could accomplish the marketing communication objective as stated earlier “To increase the awareness of the Amsterdam Brewery’s brand by 22% by the end of October 2016. The team has also crafted four recommended marketing communication elements and how those four elements could be integrated into one campaign to fulfill Amsterdam Brewery’s market opportunity. There are three IMC strategies that will be strategically beneficial for Amsterdam Brewery in order to build awareness of the audience, those IMC elements are direct response, sales promotion and advertising. 1. Direct response Direct response (social media) will benefit Amsterdam Brewery in many ways such as creating online exposure, showcasing the product, handling direct communication by building relationship with customers and delivering customer service via social media, as well as gaining insight from the audience by monitoring positive and negative feedback about the company hence immediate action will be able to be mitigated (Bennet, 2014). The team recommend Amsterdam Brewery to leverage the use of social media by posting the content more frequently in weekly basis based on the schedule that the team has crafted (Please see appendix J-1) 2. Sales Promotion Repeat customers handle 25%-40% of the total revenue of a business (Uzunian, 2013). This means that when Amsterdam Brewery is focusing to attract new consumer, they must not neglect their current customers. However, cutting down prices has another negative impact
  • 22. 19 which is lowers image perceived by consumer (Martin 2009). As the team can’t risk the Amsterdam Brewery high quality image, the team has come up with some sales promotion techniques that will benefit Amsterdam Brewery, such as: b. Sampling Sampling will allow potential target market to examine and experience the product without risk (Sales Promotion, 2006). Giving free sampling will also stimulate immediate purchase by consumers as they will be able to decide which beer that they prefer to purchase without guessing. The team recommend Amsterdam Brewery to hold the event touring around the brew house more frequently c. Contests One of the sales promotion techniques is contests. Contests will build excitement about product or brand amongst consumers. They will be able to participate and express their thought or ideas through contest to win a prize. This will definitely increase the overall brand image as well to the audience. The team has come up with an idea regarding contest that will build awareness amongst consumer as well as enhance the brand image. Finding from primary research that majority of the audience is enjoying outdoor activities such as running, skiing as well as playing hockey (See appendix J-4 Respondents also conveyed that most of them (70%) watch sports game in stadium (See appendix J-4). 4. Advertising Both type of advertising- traditional and modern media- have to be integrated in order to build more awareness towards consumer. Traditional media such as billboard and transit advertising will create massive awareness toward Amsterdam Brewery as they will be installed
  • 23. 20 in strategic locations. This is also backed up with facts that most respondents in primary research are commuting by bus and car in daily basis. The digital advertising such as paid search engine marketing (SEM) will create higher visibility on the internet due to fact that 73% of people who are looking for specific information will directly go to search engine as soon as they go online (Andrikopoulos, 2013). This will work strategically as the team found it from primary research that 93% of respondents are using smartphone and 74% of them are using laptop as their daily media access. (Please see appendix J-2 for Amsterdam Brewery web assessment) To integrate the whole IMC elements into one message, the team has chosen a theme that will be implemented for the whole campaign. The team decided to go with “celebration” theme. The concept of celebration is chosen because the targeted segment (millennial) are known for being experience seeker (Dio, 2015). The team has designed some IMC execution sample that will be implemented for each IMC elements.
  • 24. 21 Implementation Plan Product Strategy In this section the team has listed all the activities that Amsterdam Brewery needs to do based on four marketing recommendation (product, price, distribution and IMC) . Each activity is detailed with description, schedule, cost, industry contact information. Product Implementation Plan Exclusive Packaging - The design of the new package for the bottles of All-natural Blonde and Boneshaker will be provided by team UDT and Amsterdam Brewery needs to contact The Equipped Brewer by June and they will have the labels printed by the end of July 2016. The lead time of the new package before executing is also in July. By August, the new package is ready. Throughout the execution time, the customers will be able to purchase the newly packaged beer in the MLSE outlets during events (See appendix K-1). Loyalty cards – The implementation for the loyalty program will be with the company Vicinity (loyalty card for businesses). The proposal will be during June 2016 and approval in July. The lead time is August and execute in October (See appendix K-1). Pricing Strategy Student Discount - The student discount cards will be made by Vicinity (Loyalty card for businesses) and will be released June 2016 and will get approved by July. (See appendix K1) Bandana Promotion: The MLSE bandanas will be launched around the end of October throughout March 2016, they will be made by Spreadshirt. (See appendix K-1) Distribution Strategy Partnership with MLSE – The proposal for the partnership will be done in June 2016. Request for approval is in July, lead time will be in August and September. The distribution of
  • 25. 22 Amsterdam Brewery’s products will be in October throughout the next following months (See appendix K-1). This distribution of the products will be done by the Director of Retail and Operations (See appendix K-2). IMC Strategies Social Media – The social media has 4 outlets (Facebook, Twitter, Instagram, Youtube). All of these will have a lead time during June 2016 (See appendix K-1). The execution of posting content on these social media outlets is going to be in July 2016 throughout the months after. Billboard – The billboard advertising has a lead time during October 2016. Execute the advertising during November, December and March (See appendix K-1). The marketing department of Amsterdam Brewery will conduct all the billboard advertising (See appendix K- 2). Transit – Transit advertising has a lead time during November 2016. Execution will be conducted by marketing department of Amsterdam Brewery on December, January and March (See appendix K-2). Sales Promotion – The sales promotion has a lead time during August 2016. Execute the promotion on September 2016 until January 2017 (See appendix K-1). The prizes will be sent out on February 2017 (See appendix K-2). Metrics The metrics that are mentioned will be the key indicator for the profit of Amsterdam Brewery. The goal is to increase all these metrics to have a successful marketing plan. Revenue - From the 2015 financial, Amsterdam Brewery currently resides on having $15,237,312 on overall revenues for all the products.
  • 26. 23 Gross Profit margin per product - All of Amsterdam Brewery’s products has gross profit margin of 48% based on the 2015 financial summary. Units sold in total - Amsterdam Brewery sold 5,856,000 total units based on the 2015 financial summary. Increasing these three factors can meet the financial objective which is to increase the overall revenue of Amsterdam Brewery by approximately a million dollars.
  • 27. 24 Financial Analysis In this section the team discuss the forecast for the sales throughout the year for Amsterdam Brewery’s top 3 product in its new distribution channel (MLSE- Air Canada Centre). The forecast will be calculated in ATAR format (Please See appendix L-1 for definition and explanation of ATAR model) Starts with awareness, the team assume that due to heavy marketing communication campaign that Amsterdam Brewery has done throughout the year, the team has forecasted that there will be 21% increase of the brand awareness, making the number into 72% roughly 458,762 thousand of the target market aware of the brand (See appendix L-1 to see the complete calculation). The team measure the trialability based on primary research (See appendix L-1to see detailed calculation). The team has discovered that 25% of the 458,762 thousand population of target market (114,599 number of people) willing to purchase the product. For the availability, the team has discovered that Air Canada Centre will be accessible for 30% in which the target market reside in (city of Toronto). That will narrow down the number of customer who will actually purchase the product into 34,380 people. The team has made an assumption based on the sales promotion that Amsterdam Brewery has done (free bandana, contests and loyalty card) it will make the number of repeat purchase increased to 50%, hence the team assumed that the second purchase of the product will be as much as 17,190. Throughout the year, the team has calculated the forecasted sales that will be around 223,468 people who purchased the top 3 products in MLSE. The risk that the team has identified for the calculation is that the number of percentage may vary. For example the number that the team assumed for awareness might be slightly lower due to accuracy of people that actually see the advertising media. The team has assumed that
  • 28. 25 there will be also some slight errors regarding repeat purchase since the team has based it on roughly estimation. During one year timeframe, the team has calculated the net income earned through distribution in Air Canada Centre which is $ 271,205. The net income is calculated based on the revenue of the top 3 products subtracted by the expenses of the entire marketing campaign. See appendix L-2 to see the full calculation of income statement. The team suggested that Amsterdam Brewery, recalculate using ATAR model in the next two month after the marketing plan is implemented to check the accuracy of the calculation.
  • 29. 26 Appendixes Appendix A (SWOT) A-1 Strengths: - 1 Been in business for over 25 years. (The Amsterdam Brewery Story, n.d.) - 2 Offers taste testing and tours of their brewing locations (Brewhouse Brewery Tour Registration, n.d.) - 3 Has over 20 different kind of craft (Amsterdam Brewing Company, n.d.) - 4 Craft beer is created using all natural (In The Tanks, n.d.) Weaknesses: - 5 Does not have a specific target market. (Garbarino, n.d.) - 6 Has brewing capacity of 48,000 hectolitres. (Garbarino, n.d.) Opportunities: - 7 Millennial do drink craft beer. (Fromm, n.d.) - 8 Beer sales are on the rise since 2015 (NATIONAL BEER SALES & PRODUCTION DATA, n.d.) Threats: - 10 Smaller and larger beer companies - 11 Amsterdam Brewery charges more money for the amount of canned beer. (Amsterdam Boneshaker, n.d.), (Great Lakes Brewery, n.d.)
  • 30. 27 - 9 Selling craft beer at retail stores around Ontario. (Beer sales in grocery stores, n.d.) A-2 (Detailed information) Strengths - 1 The main strength of Amsterdam Brewery is that they have been founded in 1986, meaning that Amsterdam Brewery has been in business for over 25 years it shows that they have experience within the brewing industry and are definitely not a start-up company. (The Amsterdam Brewery Story, n.d.) - 2 The second strength is that Amsterdam Brewery offers taste testing and tours of their brewing locations. You are able to go to their website and book a date and time to when you want to go to their location for a tour. The location of tour is only at one location in Toronto, which is at 245 Queens Quay West Toronto, Ontario. (Brewhouse Brewery Tour Registration, n.d.) - 3 The third strength is that Amsterdam Brewery has over 20 different kind of craft beers that they sell within their store location, moving more into the specifics, Amsterdam Brewery used to have a total of 94 different craft beers, but they currently have 57 craft beers that they sell at their location. (Amsterdam Brewing Company, n.d.) - 4 The fourth strength is that Amsterdam Brewery’s craft beer is created using all natural ingredients which provides a high quality tasting beer for their customers, there are no preservatives and is never heat pasteurized. (In The Tanks, n.d.)
  • 31. 28 Weaknesses: - 5 Main weaknesses that Amsterdam Brewery faces, the first and most important weakness is that Amsterdam Brewery does not have a specific target market, this means that they are selling to anyone they are able to reach to instead of appealing to one specific demographic to cater their product towards. (Garbarino, n.d.) - 6 The second weakness that Amsterdam Brewery encounters is that they currently have a brewing capacity of 48,000 hectolitres. Compared to Mill Street, one of Amsterdam Brewery’s competitors, Mill Street can brew a lot more beer than Amsterdam Brewery because Labatt (large beer company) has bought out Mill Street which will expand their production and brewing capacity. (Garbarino, n.d.) Opportunities: - 7 The main opportunity for Amsterdam Brewery, the main opportunity is that millennial do drink craft beer, the age group that tends to drink more craft beer are people aged 19- 30 year olds, within that age group, consumers say that craft beer tastes better than regular beer. With a unique 2,592 craft beer sold, they all fit perfectly when targeting millennial. (Fromm, n.d.) - 8 The second opportunity is that craft beer sales are on the rise since 2015 which it has been going up by 12.8% in the year of 2015. This shows that people are indeed purchasing craft beer over the other beers which sales have only gone up by 0.2%. (NATIONAL BEER SALES & PRODUCTION DATA, n.d.) - 9 The last opportunity is that Amsterdam Brewery can make their craft beer more accessible by selling them at retail stores around Ontario. There are currently 60 grocery stores authorized to sell beer, and over the upcoming years there will be up to 450
  • 32. 29 grocery stores that will be authorized to sell beer. This gives Amsterdam Brewery an opportunity to get their product out to more retailers. (Beer sales in grocery stores, n.d.) Threats: - 10 Amsterdam Brewery also faces threats as a company, the first and main threat to Amsterdam Brewery are smaller and larger beer companies. The reason why larger and smaller beer companies are a threat to Amsterdam Brewery is that sales of craft beer can go down due to sales going to a different company that is not Amsterdam Brewery. A way for Amsterdam Brewery to make sure they gain and maintain sales is by increasing the accessibility of their products and possibly more sales. - 11 The second threat is that Amsterdam Brewery charges more money for the amount of canned beer. For example, Amsterdam Brewery sells a 473mL canned beer for $3.10, while Great Lakes Brewery sells their Canuck Pale Ale 473mL for $2.65. Taking a closer look at rating of both companies, Amsterdam Brewery has a rating of 4.6/5 while Great Lakes Brewery has 4.7/5. People will most likely choose Great Lakes Brewery because of their greater rating, and lower price. A solution to this threat is by having taste testing which will allow consumers to test out Amsterdam’s products which will show the reason why Amsterdam Brewery’s products are more expensive, which is due to the natural ingredients and high quality of the craft beer. (Amsterdam Boneshaker, n.d.), (Great Lakes Brewery, n.d.)
  • 33. 30 Appendix B (Competitor Analysis) B-1 They have three Brewpubs so far, one in Ottawa, one in Pearson (the Airport in Toronto) and one in Toronto but they also have what they call a Toronto Beer hall which is located within the Brewpub. B-2 Mill Street only has 4 monthly events as seen on their website. (Mill Street Brewery, 2015) Whereas Steam Whistle has over 8 events a month (Steam Whistle, 2014). B-3
  • 34. 31
  • 35. 32 Appendix D (Targeted Segments) D-1 Proposed target audience profile Proposed Target Audience for Amsterdam Brewery Demographics Age: 19-30 Gender: Male & female Education: Secondary, post-secondary (full time or part time students) Occupation: Part time or full time Marital Status: Single, married and common law relationship Household Income: Around 49,363.60 annually (Elkins, 2015) Psychographics Activities: Socializing, live sports, social media and attending events (MarketingChart, 2013) Interest: Sports, entertainment and connecting with peers Opinion: Social, quality drinking Geographic Region: North America / Canada City: City of Toronto (Urban area) Behavioral Response Occasion for use: Events, sports, games, socializing and partying Key benefits: Quality of beer, great taste, local presence, and all natural ingredients The Demographic profile that Ultimate Draft Team has chosen is Millennial. Based on 2013 Time Magazine article, millennial are those who were born in 1980 to 2000 (Stein, 2013). The team proposed that targeted audience will also consist of both male and female who are currently participating in post-secondary education such as Colleges or Universities or in the work force. As for psychographics, the audience that the team proposed for Amsterdam Brewery are mainly people who enjoy socializing during their free time. Millennial are also known for having a high priority in terms of connecting with peers, and social media has become one of the most vital way to connect with their peers (Investopedia, 2014). As they usually share photos, opinion, read a review of product on the internet, they are hugely influential amongst peer on social media
  • 36. 33 (Morrison, 2014). The team also targeted those who enjoy activities such as socializing, watching live sports, attending events such as festival and concert-anything related to socializing. The team decided that the quality of the beer will be key benefit that the audience are going after as well as the unique taste of the beer. The proposed target audience will be consuming the product in occasion that has social ambient such as casual party and watching sports game Mainly due to Amsterdam Brewery prominent local presence, the team are focusing on the geographic profile of the downtown area of Toronto as well as the surrounding GTA (Greater Toronto Area, this will allow Amsterdam Brewery to target the proposed target market that the Ultimate Draft Team has set.
  • 38. 35 Appendix E (Positioning) E-1 Positioning Base Amsterdam Brewery’s strength is having an incredible history within the Toronto area, being over 30 years in business will be crucial for the millennial age group. The other strength that will vary is having an all-natural ingredients make Amsterdam Brewery’s products distinctive with its competitors (See appendix A-1). The millennial age group need an aspect of craft beer that will stand out with all the other organizations that produce beer. E-2 Positioning Statement Amsterdam Brewery also has a strong history within Toronto. Millennials value experiences over physical products (Brewers Association, 2015). Being around for more than 30 years in the business is an aspect that Amsterdam Brewery can show to the millennial age group. It is critical for the target audience to know about the history Amsterdam Brewery has in their hometown. Having years and years of locally crafting brew for beer lovers is an important role for the millennial age group. Millennials love brands that support their local communities and would rather purchase from them over competitors (Brewers Association, 2015). E-3
  • 39. 36
  • 40. 37 Appendix F (Marketing Plan Objectives) F-1 Type of Objective Objective Rationale Financial To increase the total sales revenue of Amsterdam Brewery by one million dollars based on the 2015 financials in the first twelve months As stated the Air Canada Centre sold 500,000 litres of beer (500,000 litres of beer sold each year at Air Canada Centre. (2011, October 9). Retrieved April 04, 2016,) and this can help us achieve this 7% growth in overall revenues. This percentage is feasible because with the addition of MLSE Amsterdam Brewery will have a total of five distribution channels making the 7% increase very attainable The main focus on the marketing goal is to increase the profit when introducing Amsterdam Brewery’s products to the MLSE organization. Product To have MLSE exclusive packaging Using MLSE exclusive packaging the Amsterdam Brewery is gaining value and increasing customer perception of the Amsterdam Brand. Partnership marketing
  • 41. 38 has the potential to gain new customers in new targeted segments as stated in this report. Packaging has a big effect on buying behaviours. Certain color, visual and texture could actually affect customer decision when they try to compare it with competitor or stimulate immediate purchase due to self-association or emotional factor. {Lane, T. (n.d.). How Does Packaging Affect Consumers? Retrieved April 03, 2016} Packaging can also affect the customer’s perception of the brand and with a company like MLSE with the good image should drive up sales for Amsterdam Brewing Co. {How Strategic Partnership Brand Marketing Can Boost Business. (2011, July 15). Retrieved April 03, 2016,} Pricing To give a discount of 10% to our target audience in order to Maintaining the average price of the craft beers can attract more consumers because of the price appeal. Although the strategy will be premium pricing, consumers
  • 42. 39 increase repeat increase awareness by October of 2016 already have a high quality perception of the products (See appendix B-3) by discounting the price to our targeted demographic will increase Amsterdam’s brand aware IMC I Objective 1: To increase the awareness of the Amsterdam Brewery’s brand by 7.1% by the end of 2016 According to the team’s research data findings, Amsterdam Brewery’s products do not get enough recognition in the market against its competitors. Having this objective to guide the product trial strategy for the top 3 products towards the market can increase the overall awareness of these products as well as the company. This will be done through the IMC Mix elements and traditional media. IMC II To increase Amsterdam Brewery’s product trial of the top 3 products (All Natural Blond, Bone Shaker and Big Wheel) by 9% by September To increase trialability means the potential for more return customers which can result in more potential sales which will contribute to the financial objective
  • 43. 40 2016 in order to acquire enough new customers for the 7% total revenue increase by the end of 2017 Distribution To create a partnership with the MLSE (Maple Leafs Sports & Entertainment) to allow for Amsterdam’s 7% revenue increase by the end of 2017 Amsterdam Brewery having MLSE as a partner in the distribution channel can give the organization a chance to market towards the target that are sports enthusiasts; when partnering with MLSE it gives Amsterdam Brewery access to more than just the Air Canada Centre and other sports arenas; it gives Amsterdam Brewery access to Maple Leaf Square which in turn gives the Brewery admission into places such as: LCBO, e11even, Real Sports Bar, Longo’s, as well as different hotels and condo buildings giving Amsterdam more access to more consumers This will benefit MLSE because it taps into the local brewery market which can potentially
  • 44. 41 boost their company image by supporting local businesses (Skok, M. (2014, April 10). How Small Companies Can Get Big,Fast. Retrieved April 04, 2016). In doing so this can help them boost their customer base and bring in more potentially loyal customers in which will help their bottom line.
  • 45. 42 Appendix G (Product Strategies) G-1 Growth Strategy (Ansoff) Market Penetration: Increasing the market share of certain product(s) in an existing market Rationale: The proposed growth strategy for Amsterdam Brewery to be positioned in is the existing market where market penetration will be initiated. The MLSE already has a wide range of audience that enjoy sports. Amsterdam Brewery is looking to position their selves to have a growth within that existing market. G-2 BCG Matrix Star  All Natural Blonde Question Marks  Downtown Brown  Amsterdam Seasonals
  • 46. 43  416 Lager Cash Cows  Boneshaker IPA  Big Wheel Deluxe Dogs  Adventure Brews  Fracture The products in the BCG matrix is based on Amsterdam Brewery’s 2015 financial summary. Star: The Definition of a star is high market share with high growth. The all natural Blonde is considered a star because it generates the most revenue of all the products and represents 43% of the sales and it is also Amsterdam’s flagship product Question marks: These three products are considered question marks because all three of these products have a lot of money spent to make them but combined they only generate 19% of total sales Cash Cows: These two products are cash cows because they both bring in enough revenue to balance out production costs and together they combine for 34% of total sales Dogs: Adventure Brews and Fracture are considered dogs because combined they only represent 4% of sales; as well the production costs for adventure brews can cost anywhere from $2.95- $5.95 and to make fracture production costs $2.95 G-3 Augmented product assessment
  • 47. 44 Core Product – All-natural ingredients Actual Product – beer bottles, cans, lager Augmented Product – exclusive packaging, loyalty cards Rationale: Amsterdam Brewery’s benefit with its competitors is the All-natural ingredients that its products carry. The actual product includes beer bottles, cans and lager. The augmented product is the exclusive packaging and loyalty cards that Amsterdam Brewery is proposing for product strategy. The style that the products will be focused on is sports-themed for the MLSE teams’ fans. G-4 Product analysis ANALYTIC BONESHAKER BIG WHEEL ALL-NATURAL BLOND
  • 48. 45 Target IPA Regular lager drinkers Light beer drinkers Feature Citrus, flavour, high, IBU, touch of caramel Aromatic, rich flavour Crisp, Light Benefit Fresh, drinkable strong beer Enjoyable and easy drinking Nice to pair with food, light drinking Life Cycle Maturity/Growth Maturity/Growth Maturity/Growth Rationale: The product analysis will determine the type of consumer that drinks the beer and which product they prefer in a regular basis. The Boneshaker targets IPA drinkers, Big Wheel with regular lager drinkers and All-natural Blond with the light beer drinkers. The Boneshaker has a citrus more of a sweet taste flavor. Big wheel has an aroma that enhances the taste it is also rich in flavor. The All-Natural Blond has a crisp and light taste. The benefit for Boneshaker is it is fresh, strong alcohol content but very drinkable because of the good taste. Big wheel is enjoyable and is to drink. All-natural Blond goes well with food and is very light to drink. Every product is in their maturity and growth stage.
  • 49. 46 Appendix H (Pricing Strategies) H-1 H-2 The average bottle of Tankhouse Ale by Mill Street is 341 mL and sells for approximately $2.33.(See appendix B-15) When ordering a Tankhouse Ale in a bottle at the Air Canada Centre it will cost $6.25 which is over double the cost (See appendix B-16) H-3 All three of the beers will need to be increased in price to ensure a match to the average price of other beers if served with MLSE and to make a high quality appearance. H-4 Although MLSE offers some of our competitors, Amsterdam Brewery has an advantage by being the first local Toronto Brewery. H-5 Giving them a pleasurable experience from the local quality beer, to the Toronto vibes, and finishing it off with the memorable experiences. There will certainly be benefits when it comes to merging with MLSE, not only does the location suit our target but it also allows our target to learn more about Amsterdam Brewery. H-6 That can drive sales away, but once Amsterdam’s beer is in MLSE and gets marketed properly there should be no complications.
  • 51. 48 H-8 This was the highest ranking, and out of 84,556 (University of Toronto/Enrollment , 2014) currently enrolled students at University of Toronto there would be approximately 2,335 students (See appendix H-17). Students would pay $6.97 from the 10% discount for a beer instead of $7.75. H-9 "We hope that through reflecting on our history and continuing our passion for authenticity, the brewpub will become a destination for the people of Toronto and it's visitors" says Jeff Carefoote, owner and operator of the Amsterdam Brewing Company (Johnson, 2012). H-10 It is easy to adjust any minor price issues to ensure they fit well in the arenas and stadiums. H-11 It is an item that one does not require purchasing on a regular basis, and it isn’t a necessity but it is more of a luxury. H-12 H-13
  • 54. 51 Appendix I (Distribution Strategies) I-1 I-2 Graph Source: http://media.ticketmaster.com/en-us/img/static/ticketlogy/images/2012_Concert_Trends_v11.pdf I-3 1 MLSE Rationale: The main reason being that the audience that sports and entertainment cater towards. Craft beer is also the rise of 12.8% in sales in the year 2015 (NATIONAL BEER SALES & PRODUCTION DATA, n.d.). Also during our findings and data collection through surveys,
  • 55. 52 Ultimate Draft Team has identified that 74 (69.8%) of 106 respondents (See appendix I-1) have said they in fact do watch sports in a sports arena. The respondents are aged 19 and over that have consumed beer before. Weaknesses: One weakness with MLSE is that brewing capacity will not equal with the amount of people who attend the sporting event at MLSE, a way to overcome this problem is to increase brewing capacity is by increasing the amount of tanks (to increase to allow greater production) and production line technology (Wisconsin Brewing Increases Production Capacity, 2015) before attempting to partner with MLSE so the problem can be fixed before the partnership. 2 El Furniture Warehouse Rationale: El Furniture Warehouse is trying to target a younger demographic (Ipsum, 2014), specifically those who go out for a drink or want a place to hang out with friends. El Furniture Warehouse’s food and beverage menu are all under $5 in price, which in this case, some of Amsterdam Brewery’s caned and bottled craft beers (Boneshaker, All Natural Blonde, Brown Ale, etc.) are all under $5 which fits within El Furniture’s menu (El Furniture Warehouse Menu, n.d.). Weakness: The weakness that Amsterdam Brewery may run into while partnering with El Furniture Warehouse is that there will be other smaller and larger beer and craft beer competitors. For example, El Furniture Warehouse also sells Bud Light, Guinness beer cans, etc. A way to overcome this is by educating the workers at El Furniture Warehouse and allow them to become experts with Amsterdam Brewery’s products as it will allow the employees to explain to the customers what is great about Amsterdam Brewery’s craft beer, such as the natural ingredients, as this can increase product sales, product awareness and customer satisfaction.
  • 56. 53 (Dirkes, 2014) Another way to compete with El Furniture Warehouse’s current beer/craft beer partners is by having discounts and/or special offers (What to do when your competitor lowers their prices, n.d.), such as a cosmetic giveaway with the purchase of Amsterdam Brewery’s craft beer. 3 OVO Festival Rationale: The Ultimate Draft Team believes that this is a good opportunity for Amsterdam Brewery because people who attend concerts also fit within our target audience, which are people aged 19 to 35 and can be either male or female. As of 2011 and 2012, the age groups 18- 24 and 25-34 are most dominant when it comes to attending live concerts (See appendix I-2). Weakness: A weakness for Amsterdam Brewery to go into the concert industry is that people who attend live concerts need to be legal age to consume beer, and sometimes live concerts do not have an age restriction to attend the concert. Another weakness is that there are other beer / craft beer competitors within OVO Festival. A way to overcome the competitors is also by having discounts or sales on Amsterdam Brewery products within OVO Festival. (What to do when your competitor lowers their prices, n.d.)
  • 57. 54 Appendix J (IMC Strategies) J-1 Social Media Assessment Amsterdam Brewery - Facebook, Instagram, Twitter, Youtube o Facebook(11.2k likes) o Instagram(10.8k followers) o Twitter(27.2k followers) o YouTube (40 followers) Social media strategy Facebook Rationale: In Canada Facebook is the most popular social media site. In a 2015 Study 59% of respondents use Facebook. Even though Amsterdam Brewery is already on Facebook, they should be more interactive with their followers and keep them updated. Linkedin Rationale: Linkedin was the second highest social media used in Canada at 30%, therefore Amsterdam Brewery should create a Linkedin page.
  • 58. 55 2) content mind map for Amsterdam Brewery 3) Content calendar for one week, including: Weekly content calendar (June 2016) example Platform: Facebook, Twitter and Instagram Date 11 Monday 12 Tuesday 13 Wednesda y 14 Thursd ay 15 Friday 16 Saturday 17 Sunday Platf orm FB TW IG FB TW IG FB TW FB TW IG DAY OFF TW FB IG
  • 59. 56 Topi c “Toronto and Amsterdam Brewery” Posta picture of Amsterdam Beer with a background of iconic place in Toronto Check in Posting upcoming events Re- tweetin g and answeri ng posts on AB’s Announceme nt of the winners (all social media platform) DAY OFF Postsome pictures about Amsterdam beer and hockey game With hashtag #SundayFunday J-2 Amsterdam BreweryWebassessment 1) SMART website objective To increase the website traffic by 12% by simplifying the navigation of the website by the end of 2016 Rationale: improving the interaction with existing and potential consumers can help Amsterdam Brewery’s awareness towards the public and also brings up the sales. 2) Top 3 key messages to get across to the target market while visiting website. 1. We are original 2. Visit the Amsterdam Brewery’s restaurant to experience a whole new level of local craft beer 3. We use all natural ingredients 3) All of the content areas (pages/topics) to include on the website. Title Location Contact Menu (beers, beverage, food) Social media Site map Policies and rights Terms and conditions
  • 60. 57 4) All of the navigation tools that needs to be include on the website. Custom search bar (powered by Google or in-site) Site Map Biographies 5) Wireframe recommendation
  • 61. 58 J-3 IMC execution detail IMC Media & Execution As the team has mentioned in the first instalment of IMC execution plan, Pattison and Clear Channel Canada will be two advertising agencies who provides out of home media advertising for Amsterdam Brewery. Pattison will provide interior advertisement cards for TTC (bus) and transit shelter meanwhile Clear Channel Canada will assist with outdoor advertising using billboard. For the transit advertising the team has decided to focus on Bus advertising as 47.1% of the respondents from primary research saying that they commute using bus in daily basis . There will be two face type of transit advertising, one is half showing (with 831 number of faces) and the other one is full showing with 1662 number of faces
  • 62. 59 The team has decided to advertise with transit advertising three times in a year,one full month for each (further will be explained in the next section: campaign calendar). Based on the calculation by the UDT team, the team estimated that the cost for advertising with Pattison would be $ 66,629 for three months period-two months with dull showing and one month with half showing.
  • 63. 60 Clear Channel Canada will be assisting Amsterdam Brewery with billboard advertising. The team has proposed to launch the campaign through billboard for three full months throughout the year. The team has decided to locate the advertising material in Gardiner & Sherburne due to its strategic location within the downtown Toronto. For billboard advertising, there is a production cost ($ 2,800) for one advertisement and $ 3,890 installation fees. The team has calculated that to advertise with billboard Amsterdam Brewery needs to add $ 89,625 for three months. Throughout the year.
  • 64. 61 Cost of billboard adsfor3 months
  • 66. 63 Appendix K (Implementation Plan) K-1 K-2 Action Who Time How Contact person IMC Social media Web developer/soci al media June (time lead) July-May (execution) During the lead time develop the content for each of the social media platform in June based on the execution IMC example Publish the content based on IMC calendar. Billboard Marketing department of Production of creative execution of Contact Pattison and hand Pattison Bree Williamson
  • 67. 64 Amsterdam Brewery billboard – October Execution and installation - November out the example for execution (billboard) Corporate Receptionist 905-282-6800 bwilliamson@pattisonoutdoor.co m Transit Marketing department of Amsterdam Brewery Production of creative execution of billboard – October execution and installation - November Contact Pattison and hand out the example for execution (billboard) Clear channel Canada (Kevin Leslie Vice President, Operations & Production) 20 Dundas Street West, Suite 1001 Toronto, ON M5G 2C2 (416.408.0800) Sales Promotio n Dave Martin Director, Retail Sales & Operations And social media department September to January for the contest. End of January 2017- announcemen t of winners Publish the contest on social media and restaurant with flyers during the lead time (September -January) and announce the winners by the end of January 2017. Action Who Time How Contact person Product Designing the exclusive packaging Production Coordinator / Lead time- June The production division contacts the The Kristen Corbisiero Managing Editor of
  • 68. 65 Packaging Supervisor Execution- July Equipped Brewer or 518-635-0375. Executing exclusive packaging to Boneshaker and All Natural MLSE Production Coordinator / Packaging Supervisor Lead time- August Execution- September Amsterdam Brewery production Getting loyalty card from vicinity Lead time – June Execution- Get the card ready - July Contact vicinity for discussing the partnership on loyalty card BUSINESS INQUIRIES OF VICINITY 1-855-292-9766 info@vicinityrewards.ca Student Discount Director of Finance & Admin Lead time in – june Start to apply the student discount Distribution (MLSE) Director, Retail Sales & Operations Get the proposal done by June and send it in June. Approval in July August is the lead time (preparing the product to be distributed to MLSE) Distribute the product to MLSE
  • 69. 66 Appendix L (Financial Analysis) L-1 L-2
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