Elixir Microbrewery Business Plan


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Finalist presentation @ IIM - Lucknow for business idea that uses agricultural produce

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Elixir Microbrewery Business Plan

  1. 1. Symbiosis Institute of Management Studies Team : Undercover Consultants Siddhartha Sankar Banik Bhanu Pratap Singh V A L O R A C I O N
  2. 2. Our Approach What are we serving? Who’ll buy it? Why would they buy it? How will they know about it? VALORACION Undercover Consultants
  3. 3. Our Approach What are we serving? Who’ll buy it? Why would they buy it? How will they know about it? VALORACION Undercover Consultants
  4. 4. Our Approach What are we serving? Who’ll buy it? Why would they buy it? How will they know about it? VALORACION Undercover Consultants
  5. 5. Our Approach What are we serving? Who’ll buy it? Why would they buy it? How will they know about it? VALORACION Undercover Consultants
  6. 6. What are we serving: Need Gap & Feasibility Analysis N E E D G A P Present Beer Market in India • Only one kind of beer - Commercial Lager • Supply-chain Issues − Fluctuating Temperatures − Poor Storage − Transportation issues • Bottled beer as old as 5 months before reaching customer • Bottled Beer is chilled just before consumption • Sulphur dioxide used as preservative Our Offering • Wider Choice and Better Quality beer • Produce limited quantities of beer each day • No bottling • High concentrations of Vitamin B6 • Chemical and Preservatives free Production of Raw Material in India • Wheat : 9.2 crore metric tonnes* • Barley : 17 lakh metric tonnes* Market Size of microbrewery industry: Rs. 125 crore** Social Considerations • Disposable income in hand of young Indian population • Indians mainly hard liquor consumers Legal Considerations • Licence from the excise department needed • Time consuming task – separate brew and sell licences Cost Considerations • Rs. 6 crore on average to set up a microbrewery** Political Considerations • Haryana, Karnataka and Maharashtra give out licence** Technical Considerations • 2 years to train a student of microbiology*** • 3 schools that provide a degree in brewing technology*** * Source : Refer Appendix 2 VALORACION Undercover Consultants Slide 5 of 14
  7. 7. Who’ll buy it? Age Socio-economic Class Professionals 25 years - 45 years VALORACION Leisurely TrendSetter Footloose Globetrotter Behavioral traits Psychographics Social Accomplished individuals Variety Seeking Loyal Undercover Consultants Socially Connected Tech savvy Slide 6 of 14
  8. 8. Why would they buy it: Elixir Beers About Elixir • A great beer, simply put, is fresh and flavourful. We aim at offering freshly brewed beer of different varieties that is handcrafted by our master brewer for the privileged few who appreciate the taste. Over the period of your visit, let us tempt your taste buds with delicious bursts of flavour • Shrug off the stress, slip out of the heat, leave boredom behind and free your mind to wander through myriad avenues of pleasure. Indulge yourself in a variety of activities designed especially for your entertainment with refreshing Elixir Product Offering • Elixir der Adam – Apple Cider • Elixir der Weizen – Wheat Beer • Elixir der Café – Coffee Bear Value Proposition • Freshly brewed beer from the casks of Elixir is targeted at spirited youth in search of handcrafted, world class and high quality beer to be enjoyed with friends VALORACION Undercover Consultants Slide 7 of 14
  9. 9. Reach - Rope-in - Retain: Mar-Com for Elixir • • • • • • Objective : Reach - Rope-in - Retain Direct advertising of alcoholic beverages is prohibited in India All marketing collateral will refer to Elixir Beer indirectly Promo cards to be distributed through newspaper vendors and distributors Online media would be used for advertising and promotion Promotional activities will be below-the-line Promo cards VALORACION Undercover Consultants Slide 8 of 14
  10. 10. Reach Out: Online Media Activities • A Foursquare app where users can promise to buy an Elixir beer for a friend. Users then get a notification when the friend ‘checks in’ to the microbrewery, and users can buy them a beer – the bartender receives a notification and serves them • The ‘JUST CHILL’ contest. Tag all best buddies in the comment box of the Elixir Beer Page and the one with the longest list will be crowned as the winner • Create your Elixir. Crowd-sourced beer made through voting on ingredients to the name of the beer • ‘Untappd’ is a kind of Twitter for beer lovers, where users say what and where they’re drinking. No beer marketers seem to have used it for marketing purposes yet • Suggest a beer - User suggests an Elixir Beer flavor for a friend. If they like it, user gets points. Accumulated points can be redeemed for discounts VALORACION Undercover Consultants Slide 9 of 14
  11. 11. Rope-in: Beerlympics Guzzle Relay Teams of 4 people line-up against each other, chugging their glasses of Elixir beer – the next person from the team can start drinking only once an empty glass is placed safely on the head. Spill beer on the napkin or head and 10 seconds will be added to player’s total time Jenga The classic 54-block tower with a deliciously evil twist, beer Jenga tests your physical and mental skills. Players take turns to remove two blocks from an increasingly unstable tower of blocks - except, every Jenga piece gets them progressively inebriated Darts Test dart throwing skills in this version of the favorite pub pastime. Stack up seconds with a quick chug, collect points based on aim Beer Pong Elixir Beer filled cups arranged in a triangular shape at either end of a table; the objective of the game is simple: throw the ping pong balls in beer cups and drink VALORACION Undercover Consultants Slide 10 of 14
  12. 12. Retain: Below-The-Line Promotions • • • • • • Organize Beer Festival and promote home brews Margins can be boosted significantly by creating combos of Elixir beer and food ‘Happy Hour’ prices and Group offers will help normalize demand during lean hours Special discounts to loyal customers will help retain them Sponsor radio contests and give away coupons and passes to the microbrewery Induce trials using sample shots at Farmer’s markets [https://www.facebook.com/PuneFarmersMarket] Goodies & Take-aways Bags VALORACION Umbrella Undercover Consultants Pen drives T-Shirts Slide 11 of 14
  13. 13. Pros & Cons of Integrated Marketing Campaign Media/ Activity Pros Cons Promo Card Distribution • Wider reach through newspaper • Targeted reach through distributors • Goes unnoticed • Depend on mood of the distributor Online Media • Create pull for the customers • Instant feed back is received • Campaign can be changed if negative reviews are received • Demand prediction based on advance bookings • Cost involved in development of apps is high • Tie ups with payment gateways is complicated • Competitors may hijack the campaign (replication and negative reviews) BTL activities • Up selling because group of people encouraged • Extended hours spent by customers • Cross selling of merchandise • Poor event promotion may lead to poor response, may lead to failure of campaign • Opportunity loss because of space constraint • Managing huge crowd is difficult Marketing Campaign • Less costly because of chosen media mix • Future cash flows ensured • Newer customers and wider publicity • Drop in level of service because of huge crowd • Loyalists may feel left out VALORACION Undercover Consultants Slide 12 of 14
  14. 14. Cost Effectiveness Activity Detail Cost (in Rs.) News paper Vendors 5 Vendors * Rs. 100 * 6 Days 3,000 Promo Card Distributors 5 Distributors * Rs. 200 * 3 Days 3,000 Application Development Payment Gateway tie up (PayU) 20,000 One time Setup Rs. 6000+ AMC Rs. 2400 Rent of Space for Event Merchandise + Printing 10,000 Rs. 25000 + Rs. 10,000 Event Manager Radio Tie Up 35,000 5,000 Barter Deal 0 Total • • 8,400 84,400 • • # - Please refer Excel sheet All estimates based on Qualitative interviews Expected increase in sales (%): 85# ROI (Increase in Sales to Marketing Investments): 2.07 # VALORACION Undercover Consultants Slide 13 of 14
  15. 15. Thank You
  16. 16. Appendix 1 : The Brewing Process VALORACION Undercover Consultants
  17. 17. Appendix 2 : References * http://www.mcxindia.com ** http://articles.economictimes.indiatimes.com/2013-03-16/news/37767224_1_microbrewery-craft-beer-brew-beers *** http://businesstoday.intoday.in/story/the-story-of-the-indian-microbrewing-industry/1/190231.html VALORACION Undercover Consultants