1. Basic information Name: Postřížiny Brewery in Nymburk Limited Liability Company Address: Pražská 581 288 25 Nymburk Czech Republic Company owner: PavelBenák (100%) Articles: - goods purchase in order to its sale and goods sale - beer and malt production - molasses, non-alcoholic and special beverages production - pasturage and pasturage mixture production Postřižiny Brewery, Limited Liability Company, is amiddlesize local brewery size with a long history. It was found in 1785. Czechpeople became aware of the brewery thanks to the close connection with the famous writer BohumilHrabal, who lived here from 1919 to 1947 and who wrote a book “Postriziny” based on the stay here. The book was cinematized by the famous director JiriMenzl.
1.1 Mission „Our Postřižinské beer, a drink for everyone“ Mainobjective: Increaseexport to Germany to 30 thousandhl by theendoftheyear 2012. ExportswillincludeGold Bohemia Beer - 330 ml, Nymburk Can - 0.5 liter, Gold Bohemia Beer - 330 ml (6 pack). Customers are median incomes and low incomes. Thereisownbeershop in thebrewerybuilding Thebreweryregularlyorganizesvariousevents(open day, Postřižiny Express,...)
2. Situation at our markters The brewery successfully increased sale into Norma chain. The main exportable country: Germany, Sweden, France, Denmark, Romania, Finland and Russia. In 2009 the companysuppliedsupermarkets such as Penny Market, COOP Centrum, Ahold, Plus Discount, Norma, Billa and Kaufland.
2.1 Our customers
2.2 SWOT analysis Strengths
Long tradition (116 years) and literally famous brewery (Bohumil Hrabal)
Long partnership with Czech multiple chain stores
Broad beer portfolio (8 sort)
longlastingvolume production, strongknow-how
Innovated production technology
Non foreign capital, 100% domestic capital
Well-content and motivated staff
37 beerawardsandevaluations in the last 10 years
Open and friendly to customers, partners and very good Public Relation
Possibilityof buying base materials for beer production (malt) from the neighbouring supplier
2.2 SWOT analysis Weakness
Small percentage interest on the Czech market
Net profit in theyear 2009 only 401 thousand. CZK (500% decreasecompared to 2007)
1 revolvingloanand 1 medium-term loan
Weak promotional activities and missing marketing strategy
The lack of capital for marketing and promotion
Lowreactions towards the market needs considering amount, assortment and tastes of the brewery products
Absence of non-alcoholic beer
2.2 SWOT analysis Opportunities
Slowdown of competitive business
Price decline of primary commodities
Consumerincrease of beer per year
EU support to traditional manufacturing industries
2.2 SWOT analysis Threats
Price cuts by competitors
Reduce the consumption of beer
Newcompetitors on market
Increasingbase materials prices
Inaccessibilityof capital (loans)
Decreasingconsumers purchasing power
Entryof supra-national competition with cheap products in the local market
2.3 Competition Supra-national breweries BigCzech breweries (Pilsnerand Budweiser) and international firms producing beer of good quality.
2.4 Marketing research 106 liters per personannual beerconsumption in Germany, total 93 mio hl. Drink beer almost 70% of the population. 54% of Germans drink beer at least several times a week Bottledbeerispreferred 75 %preferonlyonebrandandbetterdomesticbrands
3. German beer market There are about 60 domesticbeersbrandsin Germany. Directcompetitorsare Budvar, BreznakandPilsnerUrquellfromCzechrepublic, fromforeigncountriesthereare especiallyGuinnessandCarlsberg. Indirectcompetitors are domesticbeerproduction in thelow/medium pricerange.
4. Marketing mix The company brews 6 kinds of lager, 2 kinds of dark beer and special kinds of beer. Types of beer: Doktorova 8° Postřižinské výčepní Pepinova desítka Tmavý ležák Postřižinské pivo 11% Francinův ležák Něžný Barbar Bogan Gold Bohemia Beer Nymburk LagerBeer
It is sold under the name “Postrizinske pivo” in the domestic market and under the registered marks “Gold Bohemia Beer” and “Nymburk Lager Beer” for export. Beeristappedinto 30 and 50 l barrels, 0.33 and 0.5 l bottlesandintotanks.
The beer has got durability from 30 days up to 1 year according to the way of manufacturing and final preparation.
Delicious, sweet-bitter balanced beer, harmonious, gently sparkling, honey-gold colour with rich and creamy foam
The biggest volume on business takes Bohemia Goldbeer
Wrappingbeerproduction 2009 in hl (bottle, barrel, tin)
Sort variety production (draughtbeer, lager, light, special)
4.2 Distribution Directdistributionchannels (dealers, ownbeershop, restaurants) Penny Market, COOP, Ahold, Norma, Aldi, Metro, Lidl, Rewe, Edeka Thebreweryisveryflexibleandoperative, ownsseveraltrucksthatwithin a short period oftimemay drive beer to terminalsordirectly to thefinalcustomer, depending on theagreement. Attheplacewheretheproductwillbe sold (in a particulartradechain) willbelocatedsales support items (leaflets, POS and POP materials).
4.2 Distribution Beforesellingwewillprovidetraining to chainstoremanagers, promotionalmaterials, tasting, samples, support andservice. Beerwhichisgoing to beexportedistreated by specialtechnologies to longeritsshelflife. So thefinalpriceisincreased.
4.3 Economic indicators and price
4.3.1 Price Estimated price of 0,33 l Bohemia Gold Beer is about 0,45 – 0,50 € Estimatedpriceof 6 pack 0,33 l Bohemia GoldBeerisabout 2,5 – 3 €
4.3.2 Financial status The brewery is financed from its own sources and bank credits. The brewery carries out financial analyses with the help of ratio index and in the bases of it the board decides how to handle the sources
4.3.3 Analysis of profitability Returnofsales - blue b) Returnofcosts - red c) ROA – Return on Assets - green d) ROE - Return on Eqity - violet e) ROI – Return on Investment – lightblue
4.3.4 Profit analysis
4.3.5 Sales targets by segments Sales plan in thousands of euros
4.4 Promotion and communication How is the selling of the product arranged? Personalselling (dealers) Customercontacts (marketing data, email, mobile phone) Retail Wholesale
4.4.1 Advertising Advertising in regional media Radiospots Billboards Internet (homepage, banners) Use of well-known writer‘s name (BohumilHrabal) and his masterpiece (Postriziny) which was cinematized for promoting beer on the labels and promotion materials
4.4.2 Promotion and sales
Taking part in qualityfoodproductcompetition
Beerdays (tastingbeer, contests, samples)
Mats, tablecloths, umbrellas, mugswith logo
Free of charge tastings
4.4.3 How to promote – summary
Homepage link on retail web pages (lidl.de, norma.de, rewe.deetc.)
Radio in store – trailer
Trailers at the place, where the products are sold – drinks and beer department (POS, POP materials)
Boot actions and repetitive actions for example: Christmas, Valentines Day, Easter, 2+1, 3+1
Competition for a weekend in the Czech republic once a year
PR articlewiththeintroductionof a productandcompany in theGermangourmetmagazine (Apetit, Gourmet, etc)
Press conference (invite the target group of professional journalists and ifluential people
5. Results During the evaluation how is our beer successfull in the German market, we can measure: - the sales effect - communication effect Selling is more easily measurable effect, we take control and monitor an increase on our bank account. The communication effect is usually evaluated through research. We hard tried to create a good marketing plan outline , our marketing plan is a living document.