Bill Gray's Tap Room

Bill Gray’s Tap Room
Brockport, NY
BUS 441.1: Marketing Management
May 15, 2015

Introduction
Brockport, NY is a small village in Upstate New York that is home to a State University
called The College at Brockport. There are many service industries that are locally and nationally
owned that provide various services to the seasonal college population as well as the local
permanent population. The local marketing-services firm our group has chosen to do marketing
research on is a company that is regionally based and caters to both the student and local
populations. The company is Bill Gray’s Tap Room in Brockport, NY. In this report we will first
do a brief situation analysis that discusses the industry background, company and product
background, competition review, and consumer review. We will then explain the information we
gathered through a survey about different aspects of the Tap Room’s service locally and what we
found. Lastly we will provide executive recommendations based on our findings that we feel
would be helpful so that the Tap Room can increase its market share and profitability.
Situation Analysis
Industry Background
Bill Gray’s Tap Room which is adjacent to Bill Gray’s restaurant is a self-described
“Sports Bar, Grill & Billiard Hall connected to the restaurant.”i
The Tap Room is a branch
location of Bill Gray’s Inc. based in Webster, NY and is categorized as being in the Restaurant,
Bars, and Food Services industry.ii
The US restaurant, bars, and food services industry includes
more than 600,000 establishments (single-location companies and units of multi-location
companies) with combined annual revenue of about $520 billion.iii
Demand is driven by
consumer tastes and personal income and the industry is highly fragmented: the top 50
companies account for about 20 percent of industry revenue. iv
As the country continues to
1

recover from the great recession, so has the economic health of the industry since 2009. US
retail sales for food services and drinking places, an indicator of restaurant and bar sales,
increased 9 percent in the first three months of 2015 compared to the same period in 2014.v
Revenue (in current dollars) for US food services and drinking places is forecast to grow at an
annual compounded rate of 5 percent between 2015 and 2019.vi
Current trends in this industry include offering healthier food options, using locally
produced products, catering to local tastes (especially in regards to the growth in small micro-
breweries, especially in New York State) , and using location based marketing.vii
Although
alcohol items have higher profit margins than food items, food was in the late 1990’s
increasingly being emphasized more than drinks do to alcohol sales reduction due to increased
health concerns. Renewed interest in wine, martini bars, and sports bars helped stave off a
continued decline of the adult beverage industry at the end of the century, stopping the sales
slippage with 2000 totals of $11.9 billion.viii
Company and Product Information
Bill Gray’s is a company that was started as a small fast food restaurant that specialized
in hamburgers and hotdogs in 1938.ix
It is a regional chain to the Rochester, NY area with 17
locations currently. It’s first “Tap Room” addition that sold alcoholic beverages in a sports bar
setting was opened in 1972.x
The Brockport Tap Room location was opened as an addition to the
previously opened restaurant next door in August of 2013. There are currently three Tap Room
locations around the region. Bill Gray’s has approximately 300 total employees with annual sales
estimated at $7 million.xi
The Brockport location is considered a branch full service restaurant
and has 23 employees.xii
Bill Gray’s as a brand is perceived as a fast food chain similar to
2

McDonalds or Burger King, but more attuned to local tastes. Inexpensive fast food that is more
prized for convenience then a high degree of quality.
The Tap Room is a somewhat unique setup because of its strong connection with Bill
Gray’s the fast-food restaurant and its attempt to also be a separate entity as a family friendly
sports-bar. It is large and spacious, well-lit with an abundance of televisions and pool tables. It is
a fully stocked bar with over 30 types of beers available on tap and bottled. xiii
When we visited
the establishment, we found it to be designed to resemble a larger chain of corporate sports bars
such as Applebees or Buffalo Wild Wings. There are bartenders that service the bar area and a
wait staff that service tables. Food is provided by the Bill Gray’s restaurant next door and uses
the same menu items. The prices are comparable to other local bars and fast food restaurants. It
is located in a strip mall plaza off the Main Street in Brockport in an area of retail and service
development outside of the downtown area. It is far enough away from the college to not receive
a majority of its business from students, so it tends to be considered much more of a “townie” or
local establishment. Advertising is minimal and usually just using social media such as
Facebook, or in direct relation to marketing by Bill Gray’s restaurant usually in local
newspapers.
3

Data Collection
Profiles of Customers Surveyed
Figure 1 Figure 2
Survey Results
Bill Grays Tap Room is located in a convenient place that makes it easy for you to
visit
Strongly
Agree
Agree Neutral Disagree Strongly
Disagree
Total
44% 36% 12% 8% 0% 100%
4
Participants: After completing the study it was found that the average age of the
participants was 23.76 years old. The oldest participant was 42 years old and the
youngest was 18. Of those surveyed, all had at least their high school diploma although
the majority had or were working on completing their bachelor’s degree. As figure 1
shows, males accounted for 56% of those surveyed and as figure 2 displays, 12 out of
the 25 interviewed stated that they rarely visit Bill Grays Tap Room. Additionally,

Bill Grays Tap Rooms physical facilities were visually appealing
Strongly
Agree
Disagree
Total
44% 35% 17% 4% 0% 100%
When asked if Bill Grays Taproom has a unique location
Strongly
Agree
Disagree
Total
4% 12% 60% 16% 8% 100%
/
Bill Grays Tap room serves quality food and beverages every time you visit
Strongly
Agree
Disagree
Total
8% 60% 24% 8% 0% 100%
5
Place: From the above information, it has become apparent that customers of Bill Grays
Tap Room enjoy the convenience of its location and they believe that the physical
facilities are visually appealing. However, most of those surveyed would not agree that
the location is in a unique area and it’s fairly distance proximity to the village may be one
of its downfalls.

Bill Grays Tap Room gives you prompt service
Strongly
Agree
Disagree
Total
12% 36% 52% 0% 0% 100%
/
The services offered were reasonably priced
Strongly
Agree
Disagree
Total
20% 52% 16% 12% 0% 100%
I got great value for every dollar I spent at Bill Grays Tap Room
Strongly
Agree
Disagree
Total
16% 28% 52% 4% 0% 100%
/
6
Product: As displayed by the above table, a majority of those surveyed agreed that the
food and beverages served at Bill Grays Tap Room were of quality. The results for if the
Tap Room gave prompt service however were slightly underwhelming and may be an
area to approve on.
Price: As for the overall price at Bill Grays Tap Room the results were generally
agreeable or neutral. Most agreed that the prices were reasonable but when it came to the
value per dollar the results were relatively neutral. So, although the value may not be the
best in the area, the price was still considered fair.

The materials associated with the services (pamphlets, signage's, ect.) are visually
appealing
Strongly
Agree
Disagree
Total
8% 12% 40% 40% 0% 100%
Bill Grays Tap Room keeps their customers informed about when the services will
be performed
Strongly
Agree
Disagree
Total
4% 28% 52% 16% 0% 100%
/
7
Promotion: Promotion was among some of the lowest rate questions of the survey. 40%
of those surveyed disagreed that the materials associated with the service are visually
appealing and many were very unfamiliar with any promos or ads.

Overall Observations
Of the 25 people surveyed, many went to Bill Grays Tap Room for the proximity and the
experience. One interesting thing uncovered though is that most of those surveyed admitted that
they rarely visit the Tap Room. Some of the top rated questions in the survey dealt with
convenience, hours of operation and the building appeal both inside and outside. On the other
hand, the lowest rated questions in the survey were dealing with the lack of promotion for Bill
Grays Tap Room and the relatively generic location of being in a strip mall.
Competitive Summary
Essentially the bill grays tap room has to be broken into two segments when surveying the
competition. During the day the establishment is a fast food burger joint with a variety of
sandwiches, and other quick to make food. While at night they portray a different atmosphere
and attempt to attract the bar scene with their tap room setup. For this reason their direct
competitors vary greatly, and anything from bars in the area to the coveted Jimmy Z’s are to be
considered as direct competitors. Below is a list of what their competitors in the area are.
1. Stoneyard Brewing Company (Bar w/restaurant)
2. Jimmy Z’s (Burger joint)
3. 58 Main (Bar w/restaurant)
4. Barbers grill ( Bar w/restaurant)
5. C&S saloon (Bar w/restaurant)
8

6. Rocco’s (Bar)
7. Other fast food is indirect competitors in the area.
The biggest thing to realize with the competition listed above is all of them are very similar to
one another except for Jimmy Z’s which has nothing to do with alcohol. When surveying the
competition, and analyzing using the 4 P’s of the marketing mix, what’s realized is the prices of
all the products fall within a couple of dollars of one another making it almost irrelevant to the
consumer decision process, when considering the products offered the competition all offers
burgers, wings, fries, much of which is representative of your typical bar food. Bill grays, and
Jimmy Z’s happen to be on the lower spectrum of quality in comparison, because the bars that
are serving food are sit down restaurants during the day. In other words if you want something
quick you will pay a couple dollars less, and get your burger and fries from Jimmy’s and Bill
Gray’s. When considering location during the day all the competitors listed are on the same road,
and the placement truly doesn’t have much impact on the consumer. At night however Bill
Gray’s is at a severe disadvantage. The main source of business for this area is the college
students, and on the weekends there is a “Drunk bus” that ships students back and forth from the
school to the bars. Bill Gray’s happens to be a good 20 minute walk from the closest bus stop to
them, whereas all the other competitors are within 5 minutes to the closest stop. In essence it’s
hard for the tap room to pull a significant amount of people to their establishment with the extra
distance involved. Lastly the promotion of these establishments is mainly word of mouth
advertising. The hottest places to go are highly dependent on what the “buzz” around the school
may be. With that said the tap room is the newest place in the area, and hasn’t been able to
establish itself in the eyes of the student crowd as a fun place to get a drink. Many of the other
establishments on the list have been around since the 90’s and before, and have developed a
9

strong relationship with the students, and the community drawing in even the locals to the night
life.
Consumer Review
Demographics
The thing about the tap room at bill grays is it welcomes people of all ages, occupation,
education level, and gender to enjoy their services. Literally you could walk in and see
someone’s children enjoying a burger and fries, or seeing that 70 year old pool shark just
drinking a beer and enjoying himself for a couple hours. Due to this it’s hard to segment its
consumer base on demographics. With Brockport being a college town there is however a small
pull towards that market segment due to the large population of students that live there, and
enjoy drinking. Generally their main audience is going to consist of low income, 21-28 year old
men and woman in college, and who enjoy drinking a beer without being toppled over like
would happen at many of the other establishments. During the day the tap room enjoys
consumers from every age group, on the low to medium income levels who are just looking for a
quick bite to eat.
Psychographics
The life styles of the patrons will greatly vary as well, when you think about it bars attract people
from all walks of life. To portray a general lifestyle of a consumer at the tap room I look at
where they make their money. First is alcohol, and in Brockport the students drink a lot of it.
With this in mind taking the average lifestyle of a student at the school would be the closest
representation to the majority of the tap room’s customers. They will generally be part time
workers, so they have a lot more free time than your general person. This allows for this
10

particular individual to make spastic choices, when deciding where they want to go.
Unfortunately for the tap room this means your business will be very inconsistent throughout the
week, but on the weekends they should expect to make a killing. Their Friday and Saturday
nights will generally involve drinking to help alleviate the accumulated stresses from school, and
make a good reason to go out and meet people, or enjoy time with their friend.
Behavioral
The psychographic segmentation of our group directly correlates to the data we have collected,
and expanded on the behavioral characteristics. According to our surveys we had an average age
of about 24 years of age, and of those, 12 out of 25 people reported they rarely go to the
establishment with only 8 out of 25 stating they go about 2 times per month. This solidifies what
was mentioned earlier about the inconsistent business they generally receive. Also while looking
at the data we collected, the majority of the questions answered had the largest percent select
neutral. This could mean a multitude of things, but the general consensus to me is the patrons are
ok with mediocrity. This could also say the consumers lack loyalty, because apparently the tap
room is giving them nothing to be loyal about. In the end you see a majority of people unwilling
to frequent the establishment, so the tap room in general has a long road ahead of them to get
consumers committed to their business.
Recommendations
With Bill Gray’s Tap Room being a bar in a small college town, these results really aren’t too
bad. Considering the total population is a little over 8 thousand (Census data 2013) while school
is out of session and closer to 14,000 when school is in session (8,413 minus 2,200 students that
commute)xiv
. While 14 thousand may seem more promising for the business to have for 3
11

quarters of the year, most of those students are underage and serving them in the establishment
would warrant police activity. So assuming an average attendance of ten thousand in the town
that can legally drink, the numbers are a little bit better.
While not in the survey, most students that were talked to were unaware of whether or not Bill
Gray’s had a twitter or Facebook account. Being more in tuned with the younger demographic
could help to create more brand awareness, loyalty, and satisfaction for the consumers while also
offering exclusive coupons to those that follow the firm on the websites. The free promotion
could cut back on advertising costs and appeal to the younger consumers. Even promotions on
Yik Yak, which are anonymous, could aid the company, as long as they focus on “Guerrilla”
advertising to make sure the Yaks aren’t down voted and erased from the site. Promotional tags
like “Bill Grays’ has (insert beer) on tap! My day has been made” or “$4 drafts, count me in!” as
long as they aren’t too frequent, and over bearing for the users on the popular anonymous social
website.
The majority of those that responded to have been to the Tap Room, and spent money there, are
mostly male. So advertisements that would bring in women would be beneficial to the
establishment moving forward which could include an emphasis on mixed drinks, drink specials
(to appeal to the college aged female), and advertising foods with centered around cheese
because women aged 18-34 always respond well to that. With beer primarily a masculine
beverage, advertising more fruit beers (to keep the “Tap Room” part of the bar still correct)
would help to bring in a more feminine crowd.
Another thing that could change with the Tap Room moving forward would be to appeal to the
younger generation of college aged students. The bar crawl bus that is, in part, run by the school,
12

glosses over the Bill Gray’s Tap Room in favor of Barbers, Stone Yard, etc. Advertising in
schools would be illegal, but advertising the Bill Gray’s name wouldn’t. Emphasizing lunch
deals that may accept the school’s dining dollars would beneficial to Bill Gray’s (but would
require some negotiations) and would take a page out of RIT’s Tiger Money deals that work with
most establishments nearby in Henrietta. Having signs located around campus that indicate how
far of a walk it is could help more students ration if they want to go while also creating brand
awareness.
Finally, Bill Gray’s should adapt to their environment. While it may not look good for their
brand image, the firm should consider dropping their prices and quality in favor of “drunken
food” or they should commit to premium pricing, as of right now, most of those surveyed said
that they didn’t notice either way whether or not they were getting great value for their dollar,
and most of those surveyed agreed that it was reasonably priced but 28% were still on the fence
either way. Jimmy Z’s has done a great job marketing their product to students by offering
delivery specials and being involved with the school’s promotions, while also appearing on every
free t-shirt the school gives away. Mimicking their style should help to create a bidding war for
the space on t-shirts while utilizing the company’s resources to overpowering the business with
one location.
Conclusion
Brockport, New York, for all intents and purposes, is a college town located between
Rochester and Buffalo. With the population doubling in size every August, the opportunity to
profit should usually lie somewhere between the last quarter and the first quarter of every year.
But with the consistent turnover of college students, comes newer students which can help to
13

keep the age of the typical consumer younger than most suburban communities in Western New
York. Capitalizing in the service industry can lead to more profits than being in the product
industry (more customers in the service industry than in the school-related product industry) and
more brand loyalty. Although the Bill Gray’s Tap Room is in a, rather, peculiar location
considering that it’s not on Main Street or 4th
Section Road, may be tough to evoke sales, the
location is still very close to more than half of the population.
Bill Gray’s Tap Room
Product (1-4)/Place (5-7)/Price (8-9)/Promotion (10-12)/Service (13-25)
1) Have you heard of BILL GRAY’S TAP ROOM?
Yes No
2) How often do you go to BILL GRAY’S TAP ROOM?
Once a month Twice a month More than twice a month Rarely
3) How much money do you spend at BILL GRAY’S TAP ROOM during one visit? _________
4) What is your main reason for going to BILL GRAY’S TAP ROOM?
- Bill Gray’s Tap Room proximity or convenience of location
- Importance of occasion
- Price
- Quality of service
- Quality of Bill Gray’s Tap Room experience
5) BILL GRAY’S TAP ROOM is located at a convenient place that makes it easy for me to go them.
1 2 3 4 5
Strongly Neither agree Strongly
disagree nor disagree agree
14

6) BILL GRAY’S TAP ROOM is open at times during the day that make it convenient for me to go
there.
1 2 3 4 5
7) The services offered by BILL GRAY’S TAP ROOM are reasonably priced.
1 2 3 4 5
8) I get great value for every dollar that I spend at BILL GRAY’S TAP ROOM.
1 2 3 4 5
9) I think the products at Bill Gray’s Tap Room is…..:
1 2 3 4 5 6 7
a. Bad ___ ___ ___ ___ ___ ____ ____ Good
b. Unfavorable ___ ___ ___ ___ ___ ____ ____ Favorable
c. Negative ___ ___ ___ ___ ___ ____ ____ Positive
15

d. Unattractive ___ ___ ___ ___ ___ ____ ____ Attractive
e. Not likable ___ ___ ___ ___ ___ ____ ____ Likable
f. Not effective ___ ___ ___ ___ ___ ____ ____ Effective
10) Please circle the appropriate number in response to the following statements about the :
Definitely Definitely
“Yes” “No”
I will consider coming to Bill Grays 1 2 3 4 5 6 7
I will go there if I see an ad from
Bill Grays. 1 2 3 4 5 6 7
I will go Bill Gray’s Tap Room instead of
another place. 1
2 3 4 5 6 7
Reliability (13-15)/Responsiveness (16-18)/Assurance (19-20)/Empathy (21-23)/Tangibles (24-26) 13)
BILL GRAY’S TAP ROOM provides you with the same quality of service every time you visit.
1 2 3 4 5
16

14) BILL GRAY’S TAP ROOM performs the service right the first time; they never give me bad
service.
1 2 3 4 5
15) The employees in Bill Gray’s Tap Room are consistently courteous to you.
1 2 3 4 5
16) BILL GRAY’S TAP ROOM keeps their customers informed about when the services will be
performed.
1 2 3 4 5
17) The employees at BILL GRAY’S TAP ROOM give you prompt service.
1 2 3 4 5
18) Employees at BILL GRAY’S TAP ROOM are never too busy to respond to your request.
1 2 3 4 5
17

19) The behavior of the employees at BILL GRAY’S TAP ROOM instills confidence in you about their
service.
1 2 3 4 5
20) The employees at Bill Gray’s Tap Room have the knowledge to answer
your questions.
1 2 3 4 5
21) When you have a problem, the people at BILL GRAY’S TAP ROOM show a sincere interest in
solving it.
1 2 3 4 5
Strongly Neither agree Strongly Agree
Disagree nor disagree
22) The BILL GRAY’S TAP ROOM has your best interests at heart.
1 2 3 4 5
18

23) The employees of the BILL GRAY’S TAP ROOM understand your specific needs.
1 2 3 4 5
24) The Bill Gray’s Tap Room physical facilities are visually appealing.
1 2 3 4 5
25) The Bill Gray’s Tap Room’s employees appear neat.
1 2 3 4 5
26) The materials associated with the service (such a pamphlets, signage’s, folders, letterhead etc.) are
visually appealing.
1 2 3 4 5
19

Additional Questions:
27) The Bill Gray’s Tap Room layout is unique
1 2 3 4 5
28) The Bill Gray’s Tap Room has a unique location
1 2 3 4 5
28) I would’ve liked to have seen a separate Bill Gray’s Tap Room establishment
1 2 3 4 5
service.
1 2 3 4 5
20

service.
1 2 3 4 5
21

i
Brockport Tap Room Page - www.BillGrays.com. (n.d.). Retrieved April 25, 2015, from
https://www.billgrays.com/index.cfm?Page=Brockport Tap Room
ii
Bill Gray's Inc. (n.d.). Retrieved April 25, 2015, from
http://subscriber.hoovers.com.ezproxy2.drake.brockport.edu/H/company360/overview.html?companyId=13003371
iii
Restaurants, Bars & Food Services Industry Description. (n.d.). Retrieved April 25, 2015, from
http://subscriber.hoovers.com.ezproxy2.drake.brockport.edu/H/industry360/description.html?industryId=2003
iv
Restaurants, Bars & Food Services Industry Description. (n.d.). Retrieved April 25, 2015, from
http://subscriber.hoovers.com.ezproxy2.drake.brockport.edu/H/industry360/description.html?industryId=2003
v
Restaurants, Bars & Food Services Industry Forecast/Indicators. (n.d.). Retrieved April 25, 2015, from
http://subscriber.hoovers.com.ezproxy2.drake.brockport.edu/H/industry360/overview.html?industryId=2003
vi
Restaurants, Bars & Food Services Industry Forecast/Indicators. (n.d.). Retrieved April 25, 2015, from
http://subscriber.hoovers.com.ezproxy2.drake.brockport.edu/H/industry360/overview.html?industryId=2003
vii
Restaurants, Bars & Food Services Trends and Opportunities. (n.d.). Retrieved April 25, 2015, from
http://subscriber.hoovers.com.ezproxy2.drake.brockport.edu/H/industry360/trendsAndOpportunities.html?industryId=2003
viii
The Official Trade Orginization of the Nightlife and Club Industry. (n.d.). Retrieved April 25, 2015, from
http://www.nciaa.com/content.aspx?page_id=22&club_id=160641&module_id=29898
ix
Our History. (n.d.). Retrieved April 25, 2015, from
http://web.archive.org/web/20100920131300/http://billgrays.com/our_history.asp
x
Our History. (n.d.). Retrieved April 25, 2015, from
http://web.archive.org/web/20100920131300/http://billgrays.com/our_history.asp
xi
Bill Gray's Inc Company Overview. (n.d.). Retrieved April 26, 2015, from
xii
Bill Gray's Inc Company Overview. (n.d.). Retrieved April 26, 2015, from
xiii
Brockport Tap Room Page - www.BillGrays.com. (n.d.). Retrieved April 25, 2015, from
https://www.billgrays.com/index.cfm?Page=Brockport Tap Room
xiv
"College+at+brockport+total+students - Google Search."College+at+brockport+total+students - Google Search. N.p., n.d. Web. 13 May 2015.
<https://www.google.com/search?safe=off&espv=2&q=college%2Bat%2Bbrockport%2Btotal%2Bstudents&oq=college%2Bat%2Bbrockport%2Btotal
%2Bstudents&gs_l=serp.3...44091.51360.0.51521.39.27.1.7.7.0.194.2703.9j14.23.0.msedr...0...1c.1.64.serp..17.22.1937.nQFSdhb66Qo>.

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