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Gordon Biersch Final Project
 

Gordon Biersch Final Project

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An analysis of Gordon Biersch’s business and strategic plan from my consumer behavior marketing course.

An analysis of Gordon Biersch’s business and strategic plan from my consumer behavior marketing course.

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    Gordon Biersch Final Project Gordon Biersch Final Project Presentation Transcript

    • Business Analysis & Strategic Plan Presented by ABC Marketing Inc. Ramon Hernandez Laurern Gruenstein Junior Villaserar Juanita Williams Jason Jenson Ting-Hsin Hsu
    • Date: May 20, 2008 To Mr. Burke, Twenty years has gone fast since the first Gordon Biersch Brew- ery Restaurant was established. As your marketing consultant team, we know your business will embrace many more years of success by giving countless excellent dining experiences to your current and future customers. Due to changes in the economy, technology, and consumer behav- ior, your business will encounter many challenges. Competition has become more severe and consumers are becom- ing more demanding. To keep up the pace of this fast changing society, we recommend several modifications and adjustments to your current marketing strategy. Along with pleasing your loyal customers, these changes will bring in new customers, give them an excellent experience, and make them loyal to your brand as well. Thank you for giving us the opportunity to share in your busi- ness. Sincerely, Ramon Hernandez CEO, ABC Marketing Inc. RamonKHernandez@gmail.com i
    • Ta b l e o f Contents Executive Summary.........................................................i Table of Contents..............................................................ii Current Marketing Strategy...............................................9 Company Analysis............................................................1 Objective History & Background Target Market Product/Service Description Rationale Food and Beverages Positioning Restaurant Design Marketing Mix…………………………………………….10 Features & Benefits.........................................................2 Exhibits................................................................................11 Market Analysis................................................................3 Recommended Marketing Strategy……………...........12 Situation Analysis New Objective Business Environment and Trends...............................4 New Target Market Competitive Analysis.......................................................5 Rationale SWOT Analysis...............................................................6 Positioning...........................................................................13 Marketing Mix.............................................................. 13, 14 Consumer Analysis...........................................................7 Exhibits......................................................................15,16,17 Demographics Attitude Reference…..................................................…………...........18 Behavior Heavy vs. Light Users Consumer Decision Making Process.............................. 8 ii
    • Company Analysis History & Background f ee. • Wine offerings include over 35 selections of red, white and • Gordon Biersch (GB) is an American brewery founded by sparkling wines (both domestic and imported). Dan Gordon and Dean Biersch. • They opened their first GB Brewery Restaurant in Palo Alto, Restaurant Design California in July 1988. • European-style brick and stone passageways, which lead • In 1997, with the goal of producing the most authentic Ger guests from the main entrance to the courtyard restaurant. man-style lagers outside of Germany, they built an 114,000 • Reminiscent of European beer gardens. square feet brewing facility in San Jose, California. • Neutral colors and dark cherry wood tones in the restaurant. • GB Brewery Restaurant now has 27 locations in 17 states. • Very inviting for social gatherings casually sophisticated • Annual Sales: $97 M. dining occasions, and private dining events. • Employees: 2,116. • Each brewery is custom designed to emphasize ease of con- Product & Service Description trol, use, and flexibility. • The Company has developed its menus to offer the guests high quality and freshly prepared food and premium bever ages. • Over 90% of dishes, including all desserts, salad dressings and sauces, are made from scratch. • GBR’s entrées appeal to a broad audience and include a fine selection of USDA choice steaks, fresh fish, chicken, pasta, stir fry, gourmet pizzas, deluxe burgers and sandwiches. • The Company modifies its menu items periodically, gener ally impacting 20% of the offerings per change. • GBR’s breweries produce fresh award winning beer, and serves only premium spirits, fresh squeezed juices and cof- 1
    • Features • Gordon Biersch utilizes the Reinheitsgebot method of brewing, which is a Ger man Purity Law that dates back to 1516 and states that beer can only be made with three ingredients: Barley, Hops, and Water. Since then, yeast has been add- ed to that mix. • Gordon Biersch brews mostly lagers. Lagers use bottom fermenting yeasts and are stored for about five weeks after brewing, which results in a crisper, smoother flavor. • Beer flavors include Hefenweizen, Pilsner, Märzan, Schwarzbier, Blonde Bock, and Seasonal Beer. • Over 90% of dishes are made from scratch. • USDA choice steaks, fresh fish, chicken, pasta, stir fry, gourmet pizzas, delux burgers, and sandwiches. • A constantly changing menu. • Live bands after 8:00pm at certain locations. Benefits • Superior freshly brewed beer. • High quality food made from scratch. • Seasonal menus, daily specials, and frequent menu changes. • Attentive friendly service. • A fun atmosphere. • A place to converse with peers. • Gives back to the community and environment. Corporate social responsibility. 2
    • Market Analysis Situation Analysis Business Environment • Restaurant Industry Growth Trend The National Restaurant Association estimated that the U.S. restaurant industry would experience its fifth consecutive year of real sales growth during 2006. Total sales are expected to be approximately $511 billion in the nation’s approximately 925,000 restaurants. Sales in the full-service segment of the restaurant industry have grown by approximately 5.1% per year between 2002 and 2005, and are expected to reach $173 billion in 2006. Trends • Restaurant Trends estimates that total casual dining chain restaurants grew at an average rate of 5.1% from 2001 to 2004. According to data obtained from the International Council of Shopping Centers, concurrent with the steady growth of ca- sual dining restaurants, there has been an increased focus on restaurant growth in mixed-use developments and lifestyle centers. Mixed-use and lifestyle centers are expected to be a meaningful growth vehicle for developers and the next stage of evolution for traditional enclosed malls. These centers seek to provide consumers with an area to live, work and play in one location and therefore each new unit represents attractive real estate opportunities for full-service restaurants. The National Restaurant Association estimates that consumer spending on food prepared outside of the home as a percent age of total food expenditures has increased from 25.0% in 1955 to 47.5% in 2005. By 2010, food prepared outside the home is projected to account for 53.0% of total food expenditures. It is believed that the growth in purchases of food- away-from-home in recent times is attributable to, among other things, demographic, economic and lifestyle trends, includ- ing the rise in the number of women in the workplace, an increase in dual-income families, the aging of the U.S. popula- tion, an increased willingness by consumers to pay for the convenience of meals prepared outside their homes, the decline in the relative cost of a restaurant meal compared to a home-cooked meal and the emergence of restaurants as “third place” destinations. 3
    • • Market value of casual dining restaurants in the US in 2000 was $379 billion and is expected to grow to $558.3 billion for 2008. Eating places…………………………...376.7 Drinking places…...…………………..…16.5 Managed services......................................38.3 Hotel/Motel Restaurants.……………......27.6 Retail, Vending, Recreation, Mobile…....51.4 Other………………………………….... 47.8 Total $558.3 (in billions) • “Eating Places” segment shows the highest vitality because it amounts to most commercial revenue. Also, three quarters of customers are seated in the dining section. Competing in “Drinking Places” puts GBR at odds with the Bar Market. Sales at full service restaurants are expected to rise 4.3 percent year- over-year. • Trends of significantly low indexes in full service restaurants sales caused by: • High energy costs including gas prices. 4
    • Competitive Analysis Primary Competition Secondary Competition • Nationwide restaurants that specialize in micro brewed beer (2006 • Fast-Food, Drive-Thru, grocery stores, and home cooking. Annual Revenue). • Bars and night clubs. BJ’s Restaurant ($316.1m) Metromedia Restaurant Group ($316.1m) • Gas, insurance premiums, and property taxes. Rock Bottom Restaurants ($283m). Slowing economy limits spending on non-essentials. • Regional competitors in full service segment near GBR locations that microbrew beer. Examples (Near San Jose, CA) Tied House Sonoma Chicken Coop Steelhead Brewery/Restaurant • Other full service restaurants. PF Chang’s Cheesecake Factory Hooter’s Chili’s T.G.I Friday’s Red Robin Chevy’s. 5
    • SWOT Analysis Strengths Weaknesses Opportunities Threats • Demand depends on cosum- • Microbrew beer taste and •Slowing economy limits • Tour of the of the brewing er income. following. spending on non- essentials. process. • Since this industry is so com- • Lucrative industry. Gas prices, property taxes, • Not a highly recognized petitive, there is a high fail- • Customer loyalty and insurance premiums. brand, so each location gives ure rate. • Nordic atmosphere. • Election year creates uncer a local, non-franchise appeal. • Difficult to erase perceived • Up-to-date music. tainty in future economy. image of their restaurant in • Expansion rate is high. • Staff has sex appeal. • Increasing fear of public pla- the mind of the customer. • Opportunities for growth in • GBR popularity growing due es due to terrorism. • Must differentiate restaurant states without GBRs. to beer bottling and distribu- from competition. • To be perceived in the same • Cater to current health trends • Experience is subsequent to tion. category as Red Robin. by creating healthier food uncontrollable factors. • Strong corporate manage- • Food contamination from choices. • Rising labor costs. ment from successful parent suppliers. • Need efficient use of low- • Create GB bars, with limited company. • Irregular shortages of sea cost labor. food options. • They suggest beers to pair food. • Service varies. • To be put in the same with your meal, which con Fluctuates price and avail- • Parking. category with the Grill. sumers enjoy. ability of seafood in store. • Only have 30 stores, can’t • USP- freshly brewed beer. • Increased popularity of at- compete nationally. • Considered expensive food. home gourmet cooking. • Increased work hours duplets free time available to eat at sit-down restaurants. 6
    • Consumer Analysis DEMOGRAPHICS ATTITUDES BEHAVIOR USAGE (sample size 3492) (heavy users vs. light users) • 25 to 49 years old. (69% of • Top two positive GBR attri- • Brand Committed: Many would Heavy users sample: 25-34 30%, 35-49 butes are friendly service and not go anywhere else if this res • Account for a quarter of the con 39%) beer taste. taurant were closed today. sumers. • Not significant on gender: • Customers prefer GBR to com- • 16% of customers frequent GBR • They will frequent GBR more Males:Females :: 56:44. petitors for its stellar beer taste once a week or more. than once a month. • Mainly Caucasian ethnicity. and beer value. • Most popular occasions include • They will recommend GBR to (78%) • Customers prefer competitors business lunches or dinners, others more than once a month. • Average Household size of 2.6 to GBR for menu variety and relaxing meals with spouse/boy • Their favorite things are the mi • Mainly professional and Ex food quality. friend/girlfriend, and fun nights/ crobrew beer and food. ecutive/ Managerial occupation. • Main reasons for visiting GBR: Happy Hours with friends. Light users (51%) the food/menu, the microbrew • Many customers come from their • Account for a quarter of the con- • Household income of $50K+. beer, and closeness to work. local residence (25%) or work sumers. (82%) (46%), and then they go to work • Most of them will frequent GBR or home. once every 1-3 months. • Most parties are 2 people. • They will recommend GBR to others once every 1-3 months. • Their favorite things are the atmo sphere and the microbrew beer. 7
    • 3. Consumer Evaluation 2. Information Search 1. Problem Recognition Target market of Gordon Biersch Consumers evaluate the different brands Consumers look for a casual din- seek out their information mainly in this product category by satisfaction ing place to eat, hang out, have fun, through word of mouth advertising factors: and relax. and through online research. Con- sumers of Gordon Biersch are tech • Friendly service • Prompt speed of • Beer taste service savvy and are social. • Pleasantly comfort- • Portion sizes able atmosphere • Food quality • Clean, well main • Beer value tained facilities • Menu variety • Fresh hot food • Value • Price 4. Outlet Selection & Purchase 5. Post Purchase Evaluation They recommend GBR to friends, They frequent this restaurant be- family, coworkers, and strangers by cause the atmosphere is friendly, word of mouth and through the use comfortable and inviting. The staff of social websites (i.e. citysearch. is quick on their feet and they thrive com, yelp.com, etc). in the fast paced environment. Experience is subjective to uncon- trollable factors (i.e. getting into an argument). 8
    • Current Marketing Strategy Rationale: Objective: GBR currently markets their restaurants largely males and fe- males in the corporate world either married or divorced that • To expand the customer profile. usually come in for casual business lunches or dinners. They • To target heavy users (2x/mo) and loyal customers. have stable incomes, so price is not a big factor. These custom- • To improve the existing customers’ dining experience. ers are the most loyal and contribute to most of GBR’s sales. • To create trend and fashion in new restaurant experi They recognize GBR as a neighborhood gathering place or a ence. place to frequent after work. Marketing to this segment is not • To become the model and leader in casual dining very costly at all because they already know about the res- category. taurant and the company does not have to spend as much on promos to draw them in. Target Market: • 35-49 years old Positioning • White-collar, corporate professionals. • Ethnicity: Diverse • Men and women GBR positions itself to be a “non-national brand”; they are • Life cycle: Single, married, and divorced strategically located in urban areas, neighborhoods, airports, • Household income: $100K-$150K+ and downtown locations. They emphasize “Every Guest, Ev- ery Time,” which is the motto of GBR. It serves as a constant reminder of where the business focus should be. 9
    • Marketing Mix Product • Sign up online (exhibit B)—this promotion is where customers will High quality freshly prepared food and premium beverages receive welcome and birthday E-Gifts, news about the latest happen- Inviting and fun atmosphere ings and events, invitations to tapping parties and brewer dinners, Microbrewery specializing in superior ales and lagers. and special offers exclusive to GB Online Members. • GBR postcards (exhibit C) where people can send them out to Price friends or family, which creates positive WOM for the restaurant. Expensive. Premium prices suitable for middle-upper class and be- • 20 years and 20 prizes celebration (exhibit C)—this promo is cel- yond. ebrating GBR anniversary of being in business for 20 years by giv- ing out 20 various prizes ranging from happy hour for a party of 15, Place GB hat and visor, to the grand prize of a 7-day trip with parties in GBR currently has 27 locations in 17 different states. Located in ur- the 3 Bay Area locations including Happy Hour at GB and a trip to a ban areas, neighborhoods, airports, and downtowns. major league baseball game. Promotion • GBR’s currently has a few local spots and print ads. • Passport Rewards program (exhibit A)—a rewards program for GBR’s customers to sign up for a reward membership card which they can accrue points. Currently it is $1 per point received and there are certain rewards that are given for points reached. For example, if you accrue 350 points the reward for this is a $25 gift card for GBR, 500 points is a $50 gift card, and 750 points is an $80 gift card. For frequent users of the card there are points after that where you can receive fantasy vacations and also participation in the Great American Beer Festival. 10
    • Exhibits Exhibit B: Sign-up Online Exhibit A: Reward Passport Exhibit C: GBR Postcard 11
    • Recommend Marketing Strategy Rationale: • Market to women because where there are women, men will follow. Lur- ing more female customers to the GBR will attract men who will also dine and drink. New Objective: • Concentrate on younger demographics and gain new loyal customers from • Expand current customer profile. here. That way, GBR will get a new loyal clientele base while older demo- • To target light users or prospective customers. graphic discontinues to go out to dine. The more narrow a target niche, the • To create buzz within recommended niche target adence. more the message can be catered, and the more it will resonate with this • To bring in new loyal customers. target market. • Remain consistent with current message. • GBR cannot market their beer to those less than 21 years old. Since beer is a main component that sets GBR apart from their competitors, it seems un New Target Market: likely to place effort trying to attract this younger age group. • Marketing to new customers over 49 years old would not be beneficial bcause those in this demographic are beginning to retire and live on tight • 25-34 years old. social security. Also, they are less likely to visit a loud and busy restaurant • White collar, young professionals. regularly than those who are younger. It is not cost effective to market • Ethnicity: Open them because they are set in their ways, and probably would not change • Women. their loyalty from another store, or GBR if it’s their favorite restaurant. • Life cycle: single, in relationship, and newly-wed. • Current consumer base is mainly Caucasian. Opening the message to try • Household income: $50K+$100K. and reach all ethnicities will increase the population within out target mar- ket. • Someone who aspires to be upper class will shop here to be associated with high status. White collar professionals are more likely to fit this bill than blue collar factory workers. 12
    • Positioning Aim at the younger generations who are heavy internet users and will spread the word by world wide web. The food menu will be changed to a healthier American food, implanting “organic” and “go green” concept. Recyclable “to go” boxes will also be introduced. Concentrate on this new target market by improving menu items. Want women. Women don’t go to GBR for the beer, they go to socialize. Therefore improve atmosphere and menu. Marketing Mix Product Price Place • Food: New menu with even higher quality • Competitive price. • Increase distribution of bear within local food: healthier, organic, fresh ingredients. • Extended happy hour. markets in hopes of promoting GBR. These • Beer: Cater to women with new fresh • Promotional discounts. GBR servers should include local grocery stores, bars, and restau- brewed beer specially customized for female just give the Passport card to every dining rants. customers: strawberry beer and more light client, without making them invest $20. This • Continue to open GBRs in urban locations beers. will make customers choose GBR over anoth- and high traffic hot spots. These include cen- • Atmosphere: Upper class social status ap- er restaurant when posed with indecision on ter of towns/cities and neighborhoods. peal. Maintain the current high society ap- where to go. Servers should remind customers • Continue to open stores far apart from each peal, classy environment to create an opportu- every time to use the card. Just by pushing it, other so as not to be seen as a franchise. Want nity for middle market consumers to feel like they are creating awareness. to be seen as a neighborhood restaurant/local they moved up a social class. Offer wireless hangout. internet (at the bar, dining tables, and patio). • Change the mood of the restaurant for late night business (after 10pm). Promotion-> 13
    • Promotion Quicker response time after signing up for mail-in offers. • Extended Happy Hour. • Offer high-end catering for private parties and company meals. Add two hours past their current Happy Hours. Beer, appetizers, and meals. • Singles night. • Contests to get people involved with creations of new beer flavors/ new labels. Once a month. Half-off drinks for ladies. Section off an area for dancing. Top five selected home brews will go head-to- head in competition. • Posters, Internet banners, key word search, local TV spots, billboards, bus wraps, taxi ads, and display ads in local newspapers and maga- Each will be provided with a professional, zines. home-brewing kit. Emphasize food and social atmosphere. They will meet at the Palo Alto restaurant and the winners will be chosen. • Internet ads in facebook, myspace, and other social networks. New beer label/ flavor created (yearly cycle). • Offer beer/wine tasting nights to young professionals. • Enhance the quality of service by enforcing employee conduct/ Host events at local golf resorts/country clubs. rules. Decorated canopies with live relaxing music. Monthly performance evaluations. • PR (organic beer, go green beer concept, recyclable “to go” boxes). • Radio is not the way to go because it is not a visual medium. The • Personal Selling (bartender, waiter/waitress). benefits o fun atmosphere and great food cannot be shown through words alone. Free tastes of menu items to staff. • No guerilla marketing because GBR is marketed as a classy estab- • Provide GBR coupons and calendars at local museums, exhibits, art lishment. Guerilla marketing is anti-establishment, while GBR is galleries, film festivals, and sporting arenas. trying to be seen as a neighborhood restaurant. • Improve efforts to inform customers of special offers and incentives. 14
    • Exhibits Poster A: Poster B: 15
    • Exhibits Print Ad A: Print Ad B: 16
    • Exhibits http://www.youtube.com/watch?v=Bgn5Z5LitW0 17
    • References http://www.gordonbiersch.com/restaurants/index.php?pg=about http://www.gordonbierschgroup.com/index.php?pg=profile http://www.hoovers.com/gordon-biersch/--ID__122011--/free-co-factsheet.xhtml http://en.wikipedia.org/wiki/Gordon_Biersch_Brewing_Company http://dictionary.reference.com/browse/nordic http://www.123jump.com/ipo/ipo_view/BIER/Gordon+Biersch+Brewery+Restaurant http://0-galenet.galegroup.com.mill1.sjlibrary.org/servlet/BCRC?rsic=PK&rcp=CO& vrsn=162&locID=sjpllib&srchtp=cmp&cc=1&c=1&mode=c&ste=60&tbst=tsCM&t ab=1&ccmp=Gordon+Biersch+Brewery+Restaurant+Group+Inc.&tcp=Gordon+Bier sch+Brewery+Restaurant+Group+Inc.%2C&n=25&bConts=777&ses=1 http://0-galenet.galegroup.com.mill1.sjlibrary.org/servlet/BCRC?vrsn=162&locID=sj pllib&srchtp=glbc&cc=2&c=2&mode=c&ste=60&tab=1&tbst=tsCM&ccmp=Big+R iver+Breweries+Inc.&mst=Gordon+Biersch+&docNum=DC925485&bConts=3 http://proquest.umi.com.libaccess.sjlibrary.org/pqdweb?did=46212704&Fmt=4&VIn st=PROD&VType=PQD&RQT=309&VName=PQD& http://web.ebscohost.com.libaccess.sjlibrary.org/ehost/detail?vid=2&hid=13&sid=40 0e9588-5d51-4419-940e-bc65edaf47d1%40sessionmgr3 18