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Running Head: MKTG PLAN - THE BOSTON TEA
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Running Head: MKTG PLAN - THE BOSTON TEA
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Business Plan: The Boston Tea
Team A
Executive Summary
The Boston Beer Company’s products are one of the most
recognized brands in the alcoholic beverage market, especially
in the craft beer market. But the trends in the craft spirit market
are changing and we are on the verge of a change similar to the
one the market experienced in the craft beer market 7 -8 years
ago and the Boston Beer Company with it unique expertise can
make a difference and substantial profits, as it did with the
Craft beer market.
What we have accomplished?
The Boston Beer Company’s goal is to becoming the leading
supplier of Better Beer market and we have become the largest
supplier of quality craft beer. We are proud to have introduced
into the market world-class variety of traditional and innovative
alcoholic beverages under brand names Samuel Adams, Angry
Orchard and Twisted Tea. The company’s growth has been
fueled by both alcoholic and non-alcoholic beverage, but more
so by the hard ciders. But the trends in the spirits market are on
the cusp of a new change. The spirits market is going through
newer disruptive new innovations. The Boston Brewing
Company, with its unique expertise, experience of reshaping
craft beer market can be a disruptive force in the Craft Spirit
market.
Therefore, we propose to introduce a new craft spirit, a
moonshine, under the name “THE BOSTON TEA”.
Who are our customers
Traditionally spirits have been consumer mostly by men,
especially older men. But recently consumer interest has risen
in moonshines and craft spirits. The consumers mostly young
men and women between the ages 25-44 are increasingly
gravitating towards the high quality spirits with unique flavors
rather than just plain spirits. The increase in the number of
manufacturers of moonshines in the southern United States and
their popularity among the consumers reflects this trend (The
Boston Beer Company, Inc., 2017)
How big is the market
The Spirit market in United States is approximately $7.5 billion
in 2017 and the craft spirit market accounts for only 0.5% of the
sales. But we need to remember that the craft spirit market has
very near market origin. The global Craft Spirit markets is
expected to grow at a staggering rate from 2017 to 2025 to more
than $80 billion dollar business and United States is projected
to account for nearly 53% of that sales. The opportunity for a
tremendous growth in this market is potentially huge.
What’s our strategy goal
Boston Beer Company has always had the goal of becoming the
number one producer of the quality beer in the better beer
category and we accomplished this by offering customers
unique and quality beer. We will employ the same strategy
employed for the craft beer market i.e, make early inroads into
the craft spirit market and garner a large market share. The
strength of the Boston Beer company is in the quality of its
products, the unique experience it offers, the distribution
channels it has and strong relationships that it has with the
suppliers, wholesalers distributors. We will leverage all these
qualities to make inroads into the craft spirit market The
(Boston Beer Company, Inc., 2017).
Introduction.
The Boston Brewing company, is the largest craft brewers in the
United States. In 2017, Boston Brewers have sold approximately
3.8 million barrels of its products. The company since its
humble beginnings has revolutionized the craft beer market.
Along with the top 10 craft beer makers, it accounts for 30% of
the U.S. Craft beer market. One of the corner stones of its
philosophy is that “Change is good.” The Boston Beer Company
would like to bring the same philosophy to the American Spirits
Market. Therefore, The Boston Beer Company has decided to
invest in the venture of brining in a moonshine local to the
South Asian and African countries to capitalize on the growing
interest of American consumers in the moonshine spirits. The
name of the product will be “The Boston Tea”.
Why this business and Why Now?
Moonshine always had been part of American history. To
rephrase Joe Michalek, president of Piedmont Distillers Inc.,
Moonshine embodies intrinsically American Spirit and its
history. Moonshine had a very large impact on the heritage of
America. Another important aspect of Moonshine is that it gives
consumers of spirit experience that is very unique and euphoric.
These two qualities are main reasons why Moonshines are
showing a resurgence in the American Market. In October 2016,
the American Craft Spirits Association cited 1,315 active craft
distillers in the U.S., accounting for $2.4 billion in annual retail
sales, a growth of 28 percent over the previous five years (Wolf,
2017). But of these Moonshine spirits account only for 0.5% of
the $7 billion spirits market. Therefor the potential for growth
is huge. They have come a long way since the days of
prohibiton. People are showing interest in a product that was
historically illegal. It’s a part of American history and people
are queuing to experience it. We can incur this from the growth
in the local moonshine distillers.
Who’s going to buy?
The company’s strategy is to market it new product, The Boston
Tea, primarily in the metropolitan areas, women and younger
demographics. Moonshines have garnered popularity in the
Southern states of United States and have very little presence in
the rest of the market regions. We are going to adopt the same
strategy as we did with the craft beer market i.e, get into these
markets early, leveraging our distribution network and garner a
large market share.
Company Analysis
Origins and Background
The Boston Brewing Company was founded in 1984 by Jim
Koch when he began the making the first batch of lager in his
kitchen. From its humble origins, it had grown to be the most
well-known and the largest craft beer brewer in United States. It
went public in 1995. The company now has 1505 employees and
has a market cap of $3.505 billion and trades at $300.90 per
share as of June 6, 2018. Its head quartered in Boston,
Massachusetts. In 2017, the company has sold more than 60
beers under Samuel Adams brand names, more than twenty
flavored malt beverages under the Twisted Tea brand name,
nearly 20 hard cider beverages under Angry Orchard name and
five hard sparkling waters under the Truly Spiked & Sparkling
brand name. It has reported that it had sold nearly 3.8 million
barrels of its products(The Boston Beer Company, Inc., 2017).
Location
It owns breweries in 5 states in Boston, Cincinnati,
Breinigsville, Los Angeles, Miami. The company’s beer
products are graded to be in the better beers. Better beers tend
to be of higher quality, image and taste than the premium beers.
Better beers are approximately 29% of the United States beer
consumption by volume. It has a brewery in Ohio where it
produces non-core brands. The Boston plant is the first and the
breweries in Cincinnati and Pennsylvania produce majority of
the beer. It also had agreements with City Brewing Company,
LLC in PA and La Cross in Washington to produce beer for it.
Suppliers
The main ingredients used its products, it sources from a
multiple suppliers. The main ingredients it uses are hops, yeast
and apples. But as per its reports for malt it sources it from a
trusted single supplier. This reliance on a single supplier could
be a problem for it in the long run.
Major Products and Strategies
The company’s main goal is to become the leading provider in
the categories in which it competes. It offers high quality full
flavored alcoholic beverages. Initially, it’s main focus is to
increase the sales of its Samuel Adam’s brand supported by
other complimentary brands. In lieu of this it launched the
Angry Orchard brand family in 2011. It is the largest selling
brand of hard cider in the United States. The Twisted Tea
product was launched in 2001 and since then has grown steadily
and has garnered loyal followers. In 2016, the company began
selling Truly Spiked and Sparkling brand (The Boston Beer
Company, Inc., 2017).
The products it sells are sold in various packages. It sells kegs
for on premise retailers like bars, restaurants and bottles are
sold in off-premise retailers. The company has made several
innovations in packaging its products. It tests continually its
beers, hard ciders and other alcoholic beverages. It has adopted
a strategy of selling the products under various names to test
them. It recently concluded as testing to enhance the experience
of the beer drinkers. It will be using a container with opening
that has an extended lip and an hour glass ridge(The Boston
Beer Company, Inc., 2017).
Markets, Sales and Distribution
BBC, recently formed a subsidiary called A&S Brewing
Collaborative to be a craft beer incubator. The main idea behind
this is to find new opportunities in craft brewing. The company
has around 350 wholesalers in the United States through which
it does the distribution. The company markets is predominantly
United States. But it also sells in Canada, Europe, Israel,
Australia, New Zealand, the Caribbean, the Pacific Rim,
Mexico, Central and South America. Boston Beers has a sales
force of 415 people which is one of the largest in the domestic
beer industry.
BBC reported a decline in sales in 2017 by about 6.2%. The
company revenue decreased by 4.8% to $863 million. Boston
Beer is projecting to return to growth.
Executives
James Koch is still the Chairman and Founder. David Burwick
was appointed as the Chief Executive Office in April, 2018.
Market Definition, Potential and Demand
Market Analysis:
The Market: In this case, we are aiming at women in the metro
areas and as well as small towns. Young people also would be
enthusiastic to buy and try the product in the market and taste
it. The word of mouth by young people is powerful and hence a
lot of youngsters are going to be attracted and fall in love with
the drink. The volume is going to be 200,000 gallons of Boston
Tea. As we go by depending on the sales and consumers
response the next production will be planned. The benefits of
this drink and the fact that it is elicited out of a sap makes it
very natural, it helps in digestion, makes a person active and
energetic and at the same time does not taste as bitter as alcohol
or other spirits.
Geographical area: The geographical area to sell is very vast
covering United States of America, but the market is also in
other countries like Canada, Europe, New Zealand, Mexico, and
Central and South America. Mostly the product is shipped
within few days of completion and there will not be any
significant delay in product order. The company would be
receiving most of its orders from domestic distributors for the
following weeks of the months during the first week of that
month.
Consumer behavior: Consumer behavior is expected to be
consistent throughout. Consumers are not restricted to any age
group, hence the consumers’ response to the market will be
positive.
Because of its taste and the afterwards feel of this drink, there
will be more demand. Nobody can stop with just one bottle or
glass and hence the consumer rates would be getting higher and
higher.
Market segmentation: Market is going to be split into segments,
the customers of same taste and same age is how the market is
segmented into. Gaps are not expected in the market. In the year
2017, the company brewed, fermented and packaged 90% of the
volume at breweries that are owned by the company. $33
million was the capital investment in the year of 2017. Boston
brewery’s production focuses mainly to develop and create new
beers and hence rolling the new product into the market is not
going to be a big or new task for the brewing company.
Potential: The Gross profit per barrel in the year ended in 2016
was $114.38. Gross margin for the year ending in 2016 was
50.7%. The company’s gross profit is expected to go high after
launching the new drink as it is special and it is new to the
entire country. The segments that are going to be distributed
and going to make higher profits first, then the towns and
suburbs. As the company includes freight charges. Boston Beer
has a business power of around 390 individuals, which the
Organization accepts is one of the biggest in the residential
brew industry. The Company's business association is intended
to create and fortify relations at the Distributor, retailer and
consumer levels by giving instructive what's more, special
projects. The Company's business constrain has an abnormal
state of item information and is prepared in the points of
interest of the blending and offering forms. Deals agents
ordinarily convey tests of the Company's brews, hard juices and
hard shimmering waters, certain fixings, for example, bounces
and grain, and other limited time materials to teach discount
what's more, retail purchasers about the quality and taste of the
Company's items. The Company has created solid associations
with its Distributors what's more, retailers, a significant number
of which have profited from the Company's premium estimating
procedure and development.
Demand: The actual demand for the product or service is yet to
be determined based on the sales of the product once after the
launch and the distribution and sales takes place. The demand is
expected to be high and equal to that of beer since the drink
consists of more alcohol percentage than beer and for the
drinkers that is one main aspect in a drink while you select what
to choose. The future demand is estimated to be higher than the
current year. Future of the product in directly tied to the way we
advertise about the product and how the consumers take it. It is
not almost a 100% certain that the taste you like may be like I
do not like how it tastes. This could be expected.
Competitor Analysis
Toddy palm is a drink originally from India even if the alcohol
content is not too high, however, we are going to enhance the
percentage to around 40% by purifying and extracting the
liquid. The texture of toddy palm distinguished it from beer and
wine, it’s more like Vodka or Rum.
Based on the products similarity, and the fact that there isn’t
any similar product that in retail industry in the united States,
we narrow down the competitors into three main
brand/products: two brands of Vodka and Sake.
1. Tito’s Vodka
Tito is not a very new company, it was established in the early
90s at Austin, TX, which is only a fewer years younger than
Boston Beer Company, but not very well-known until the recent
years. There backgrounds similarity is one the reason the we
think Tito’s is a potential competitor.
Tito’s Vodka is hand-crafted, same as traditional Toddy Palm:
the palms was hand-picked by tribe people in India and
fermented. The philosophy behind it is overlapped.
Thirdly, Tito’s is focusing on the sports fans marketing, Boston
Beer Company has the same strategy as the official beer
provider with Red Socks. As a Texas based on liquor company,
Tito’s have partnerships with many local professional sports
team. The most successful case among all the marketing moves
is the cooperation with the Houston Rockets, the local NBA
team in Houston, TX.
Most men drink…especially like when they play sports (Sandra
C. Jones, 2009). Tito’s corporation with Houston Rockets
including have two Tito’s vodka stores inside the building to
sell drinks to the audience during the game or concert. Besides,
according to the Rockets & Toyota center confidential
partnership survey recap, 93% of the people who come the
event/game think Tito’s is a good brand and offers good Vodka.
Such strategy makes the brand be known by more people and
also build the positive brand image.
Tito’s takes top sales spot among all liquor brand in 2017, the
sales increased $190 million in this period.
2. Gray Goose
Gray Goose is not the top Vodka brand now but it was once,
however, is still the most well-known one and is the NO.1
choice of many bars & clubs as the vodka provider.
Beside the pure vodka, it has different flavors too: Grey Goose
Cherry Noir is a black cherry-flavored vodka, Grey Goose
L'Orange is an orange-flavored vodka, and the now-retired Grey
Goose La Vanille tasted of vanilla, with hints of cinnamon and
caramel (Foley, 2006). Extracted Toddy Palm has coconut
flavor, which makes them the similar products.
The facts that Gray Goose has high reputation, and it is in most
of bars, it has already occupied a huge liquor market which
makes it is our competitor.
3. Sake (the type, all brands in America)
Sake, a traditional local liquor from japan, is popular in
America now and be accepted by many Americans as exotic
drink. In American market, there are too many different brands
and companies offer Sake, we wanted to treat the whole
category as competitor.
Firstly, Sake has great story and culture from Japan, so does
Toddy Palm in India. Sake is made from rice. In Japan, sake has
been consumed since ancient times (Chang, 2015). Toddy Palm
is from India which is also has an attractive background that
could be used to market the product.
Secondly, the traditional way to drink sake is with Japanese
sake cups by sipping it, however, now days Sake can event be
use is a material to make cocktails and the recipes are
everywhere on the internet. To make cocktail is also one of the
purpose of drink Toddy Palm.
Sake’s success is high relative with the Japanese food too.
Japanese food could be really expansive and could showing
American’s great food taste, the combination of Japanese food
and drink makes it really popular in America especially in big
cities on east and west coast.
Industry Analysis
Rivalry Among Existing Competitors
With recent interest in public in moonshine spirits, many
distilleries have come up in the Appalachian region. The
popular existing competitor in the Southern United States are
Ole Smoky Moonshine Distiller based out of Gatlinburg, Tenn.
Palmetto Moonshine started selling moonshine in 2011. Other
moonshine distillers have been started all over Appalachian
region. Recently Jack Daniels has decided to enter into the
moonshine market. But none of these existing producers are
deemed competitive as these manufacturers are very regional in
their market and do not have distribution channels and the
production capabilities of the Boston Brewing Company.
Once the existing competitors develop the production and
the marketing capabilities of the BBC, it might lead to price war
but the near occurrence of these price war is remote. Price war
as a result of the production of similar product by much larger
manufactures like Jack Daniels is a possibility. Also, BBC has a
very loyal customer base. The threat of the existing competitors
to this customer base has to be taken into consideration. This
market offers huge growth potential and the loyalty towards
competitors brand is not considered a threat.
Bargaining Power of Suppliers
The raw material required for the production of the product is
indigenous to South East Asian countries especially to the South
Indian region and Indonesia. The process of extracting the raw
material is done locally by people and sold to the local
distributors. These suppliers do not have any kind of leverage
on the price of the raw material. The export of the product to
the out of the region is virtually non-existent. The local
governments have established channels and non-profit
organizations to be able to access these distributors. The Boston
Brewing Company will have all the leverage it needs it fixing
the price for the raw material collection and supply. The local
governments are giving duty free incentivize the export of the
material. The company is in a good position to leverage these
incentives.
Bargaining Power of Buyers
The Boston Brewing company has access to approximately 365
distribution channels. The customer relationship with these
distributors and the company are very strong and the BBC will
be able to negotiate and extract profitable price for the product.
As per the sales records, the single largest distributor accounted
for 6% of the revenue and the top 3 distributors accounted for
nearly 12% of the revenue, these distributors may have some
leverage on the price of the product. Since the product is being
distributed to only these channels and opportunity for market
growth and revenue are considerable and the BBC being the
only company selling this type of product, the threat of the
bargaining power of these buyers is considerably from other
distributors is less.
Not too many competitors exist in the market for the
product we are introducing. Therefore this aspect is not
considered to have any significant effect. The low price of the
competitors and additional value offered by competitors selling
other spirits can be threat. This has to be considered in the price
of the product.
Threat of New Entrants
The target population for the new product are young people,
women and people living in major metropolitan areas, where
The Boston Brewing company has been traditionally strong and
has a loyal customer base. Since the products against which this
product is competing are traditional spirits and other moonshine
manufacturers, the threat of new entrant is low as the barriers to
entry are high. The threat that arises from the local distilleries
is not considered to be significant. Also, few player exist in the
market. As the awareness of the product grows, sales and the
profitability will increase, the profitability will also increase.
Currently, the market is only 0.5% of the $7 billion of the total
spirit market, the potential for growth is huge.
Threat of Substitute Products or Services
Competition from the traditional spirits is considered to be the
major threat. The big player producing whiskey and other spirits
will pose significant challenges in expanding to new areas and
willing over new customers. As the popularity starts to increase,
the efforts by the big players will be to prevent the customers
from switching their loyalty. This will impact the growth aspect
of the sales. BBC has a very loyal customer base in some major
markets and demographics.
Customer Analysis
The traditional demographics which showed interest in these
type of products are older generation, people from semi-urban
and rural areas. But the millennial generation and people from
urban and metropolitan areas, as found by the distillers, are
found to be showing increasing interest in these type of drinks.
The secondary market data shows that people in the age of 21-
35 year age group are embracing the spirits category and brown
spirits. As the demand for the spirit increases, the demand for
these drinks is bound to increase as well.
The main group of people which BBC is targeting are
women, young people in between the age of 21-44 years and
people in big metropolitan areas. The report on Global Spirits
market has provided us with an analysis of the market. It covers
the craft spirits market. Since the product is considered to be a
craft spirit, the trends in craft spirit market will reflect the sales
of the product.
The global craft spirit market is valued at $80.43 billion in by
2025 and is expected to grow at 33.4% from 2017 to 2025.
Millennials born between 1980 to early 2000’s represent major
demographics section of consumer who are showing interest in
the craft spirits. The Young millennials who have reach the
LDA, appear to be the high potential consumers for the craft
spirits. Also, the preference of these young millennials is found
to be unconventional drinks which have a unique tastes and
flavor. The craft spirit market is predominantly located in the
United States of America accounting for 53% of the craft spirit
market. Specialty spirits are found to be most popular spirits
followed by Whiskey and Vodka.
Men are driving the alcohol beverage market. In Spirits
market, the consumers are seeking products, especially people
aged between 21-35, that are superior in quality and offer a
superior experience and enjoyment. Its men who are over
consuming spirits, but female consumers are showing keen
interest in this market too.
Health is becoming increasingly influential across the
entire alcohol beverage market. As, the craft spirits popularity
is rising, people especially women are seeking healthier
options. Consumers are increasingly want careful formulation.
Therefore, increasing the premium offerings can drive the
successful growth of the product.
SWOT Analysis
SWOT analysis is provided, based on the preceding analyses.
Reasoning for each item in the SWOT is provided and logical.
Strengths and weaknesses are clearly internal factors, and
opportunities and threats are clearly external factors. SWOT
Analysis for Boston Beer Company in the United States of
America. A SWOT analysis can help to spot the opportunities
that the new venture can take the benefits by taking advantage
to make the highest level of benefits possible. Generally,
changes in the market and consumer trends contribute towards
the external factors in creating opportunities. for this proposed
new venture affect the performance of the company and
measure. For the new product launching, four marketing
standards for price, product, sales and promotions need to be
studied. To analyze these standards areas, strengths,
weaknesses, opportunities and threats to examine the risks
involved and strengths. The strengths, weaknesses,
opportunities and threats will be identified for the new product
based on the existing data (Argersinger, 2010)
SWOT Analysis
Strengths
1. Strong brand recognition
2. Multiple product lines.
3. Innovators.
4. Product development skills
Weaknesses
1. Environmental impact due to the palm tree used as raw
material for this product.
2. Company’s relative smaller size than the giants in beverage
business made it difficult for the company to exert pricing
power over its suppliers and no power to alter the pricing.
3. Heavily driven by consumer preference
4. Does the focus of palm wine from other Boston beer
products.
Opportunities
1. Higher penetration with smaller retailer customers in the U.S.
2. Rising demand for alcoholic beverages inspired by travel
3. Non-alcoholic palm sap beverages
Introduce authentic food service/restaurant
Threats
1. Commodity price increases
2. Competitive market
3. Private label growth
Competition
Competitors
VooDoo spirits
Marketing Objectives and Goals
Currently the Boston Beer Company’s target market is woman
and young people, and also, the sports fans. As an intrepreneur
venture, we are going to take advantages by targeting the same
market since there are massive existing recourses we could use.
I’ll analyze each target in the following contents:
1. Sports Fans
Sports culture is special and unique in America, and people are
used to have a drink while watching the game. As we mentioned
in the plan earlier, vodka companies, for example, the Tito’s,
has chosen to promote their product to the sports fans by having
partnerships with different sports teams and serving their vodka
in the house.
Boston Beer Company has already developed market in the
similar but more bold way- Boston Beer Co., signed an eight-
year deal with the team that will last through the 2025 season
(Adams, 2017).
By using the current recourses and element Boston Beer
Company has gained from Red Sox, we could reach to our target
market by:
· Serving the product in the arena
· Put the product advertisement in the signage on the court
· Purchased the additional marketing rights from Red Sox to
make our product the “official toddy palm of the Red Sox”
2. Woman
Speaking of the reason of woman drinking wine, many people
know that “beauty function” is one of the biggest reason and
people are believe in the theory.
The toddy palm has multiple functions and has many nutrition
inside: it has huge percentage of protein, Vitamin C, Zinc, Iron,
Vitamin B group. Palm could improve eyesight, reduce the risk
of cardiovascular disease, prevent cancer, enhance the skin, and
promote lactation.
With massive goods inside, combine with appropriate
advertisement and to choose a young beauty as the
spokeswoman, and fruit taste natural flavor, we are confidence
that we could reach to women successfully.
3. Young People
According to a research on study the motivation of people to
drink, Accordingly, four categories of drinking motives emerge
as final antecedents of drinking behavior:
· drinking to enhance positive mood or well-being
· to obtain social rewards
· to attenuate negative emotions
· and to avoid social rejection
Young people always seeking new adventures, they have desire
to try new things and want to be cool, they have all the traits of
the motivations listed above, which is a perfect target group of
our product.
Other than the motivations and natures, another benefit and
reason to target young group is that young people’s financial
level match our product price too: we are a branch of a regular
beer company, not a high-end brand, we will make de retail
price at medium level among the liquor market.
Besides, as we mentioned in the analysis of Sake, it is popular
because it can also be a material of cocktail and young people
like it. Our product is able to make cocktails too, which makes
young generation our perfect target.
From the positioning, since our material is not high-end and
brewing technology is not very difficult, also considering the
income level of our target marketing, our product will be made
for middle and middle-low class people, a little bit lower than
regular vodka but the price could encourage people to accept it
Marketing Strategy
Having a solid marketing strategy will only pay back the time
and money invested in the launch of the new product into the
USA market. Targeting demographic area is less important
compared to the target group. Identifying the target group and
the area they mostly live will help to get the new product sales.
As the target group are the people between 21- 35 years old who
are adventurous, willing to try new exotic alcoholic drinks and
drinks with high alcohol content we will create buyer persona
using online technology. The millennials have growing taste for
and value authentic crafted alcoholic drink from the report
presented by 2016 Trend Insight report (Arthur, 2016). The
buyer persona will help to know the customers.
Researching the competitor. The type of marketing ways they
choose, pricing of the product and their loyal customers will
help us to keep to the standards of marketing to be able to reach
the target group.
Boston Beer Company will participate in tasting festivals,
festivals and be able to earn place on shelves in popular
supermarkets and bars in the country. Boston beer company is
known to invest good amount of their revenue in
advertisements. But, using the brand label we can offer sample
tasting to the loyal or existing customers and if they like the
product we will gain free word of mouth advertisement. We will
also invite tastemakers in the alcohol beverage industry, like
mixologist who can spread the message and be brand
ambassadors
Target Market and Positioning
Currently the Boston Beer Company’s target market is woman
and young people, and also, the sports fans. As an intrepreneur
venture, we are going to take advantages by targeting the same
market since there are massive existing recourses we could use.
I’ll analyze each target in the following contents:
4. Sports Fans
Sports culture is special and unique in America, and people are
used to have a drink while watching the game. As we mentioned
in the plan earlier, vodka companies, for example, the Tito’s,
has chosen to promote their product to the sports fans by having
partnerships with different sports teams and serving their vodka
in the house.
Boston Beer Company has already developed market in the
similar but more bold way- Boston Beer Co., signed an eight-
year deal with the team that will last through the 2025 season
(Adams, 2017).
By using the current recourses and element Boston Beer
Company has gained from Red Sox, we could reach to our target
market by:
· Serving the product in the arena
· Put the product advertisement in the signage on the court
· Purchased the additional marketing rights from Red Sox to
make our product the “official toddy palm of the Red Sox”
5. Woman
Speaking of the reason of woman drinking wine, many people
know that “beauty function” is one of the biggest reason and
people are believe in the theory.
The toddy palm has multiple functions and has many nutrition
inside: it has huge percentage of protein, Vitamin C, Zinc, Iron,
Vitamin B group. Palm could improve eyesight, reduce the risk
of cardiovascular disease, prevent cancer, enhance the skin, and
promote lactation.
With massive goods inside, combine with appropriate
advertisement and to choose a young beauty as the
spokeswoman, and fruit taste natural flavor, we are confidence
that we could reach to women successfully.
6. Young People
According to a research on study the motivation of people to
drink, Accordingly, four categories of drinking motives emerge
as final antecedents of drinking behavior:
· drinking to enhance positive mood or well-being
· to obtain social rewards
· to attenuate negative emotions
· and to avoid social rejection
Young people always seeking new adventures, they have desire
to try new things and want to be cool, they have all the traits of
the motivations listed above, which is a perfect target group of
our product.
Other than the motivations and natures, another benefit and
reason to target young group is that young people’s financial
level match our product price too: we are a branch of a regular
beer company, not a high-end brand, we will make de retail
price at medium level among the liquor market.
Besides, as we mentioned in the analysis of Sake, it is popular
because it can also be a material of cocktail and young people
like it. Our product is able to make cocktails too, which makes
young generation our perfect target.
From the positioning, since our material is not high-end and
brewing technology is not very difficult, also considering the
income level of our target marketing, our product will be made
for middle and middle-low class people, a little bit lower than
regular vodka but the price could encourage people to accept it.
Operational Plan
Operational sections has two parts. Stage of development and
production process section. Stage of development
Production workflow: The conditions required for converting
the palm sap to fermentation to alcohol are old and well known.
The source of raw material is Palm sap from Africa/Asia/South
America. The palm sap is collected in containers that are free of
any microbes stored in cooling conditions (below 10 degrees) to
slow the fermentation process. Once the raw material reaches
the site of production unit in USA, it will be transferred into
fermentation units and after the processing it is tested and
further bottled. We would infuse 5 ingredients in our liquor for
2 months before bottling that will be in bottling units within
MA location.
We plan for 350 mL and 50 mL bottles to launch initially in the
market. Each batch of the alcohol distilled to get high quality,
to sell as premium spirit will be stored in French oak barrels for
aging. Quality check and assurance will be done on the
distilleries before bottling following the standards.
Production Process
Physical location will be the brewing units located at
Massachusetts. Licensing of liquor and trade will be worked on
before start of any production process. The new product, palm
wine will be registered under a brand name. Angry Orchard
Innovation Cider House located at the Orchard in Walden, New
York, will be used for sample brewing and conduct market taste
testing events initially.
The Company’s Angry Orchard Innovation Cider House located
at the Orchard in Walden, New York, opened in 2015 and its
production is mainly for developing new types of innovative
hard ciders and fermenting and packaging ciders for retail sales
on site and in the local market area.
For the palm wine packing we have a new bottle design and the
label that will have palm tree symbols on it. Boston beer
company sale to almost 350 wholesalers in USA and sale its
products to few countries outside USA like Mexico, Australia,
New Zealand, and Canada to mention some of the countries
(2017 Annual Report). We would like to launch the palm wine
in USA first to make it reach to the targeted customers. The
logistics of Boston beer company is well operated already. The
freshest beer program was a successful program with almost 17
distributors to be able to deliver products in shorten time frame
between the time of ordered to shipment. Using this program,
the palm wine will be shipped within less time to be able to be
satisfaction customers and improve business.
SWOT Analysis of Tilt Drink with USP, Competition, STP
(Segmentation, Targeting, Positioning) - Marketing Analysis
SWOT Analysis of Palm Wine
Palm Wine Drink
Parent Company
Boston Beer Company
Category
Beverages
Sector
Food and Beverages
Unique Selling Point
Premium palm-based spirit
STP
Segmentation
People who prefer higher percentage of alcohol in their drinks
Market Target
Millennials with disposable income
Product Positioning
An exotic tropical drink, containing alcohol
HR Plan
HR plan is the fundamental of building a new business
administration, by planning the arrangement into many details
the exestuation process will be easier with suitable employees.
1. Recruiting Strategy
Boston Beer Company have many lines of making beers, but the
process of making Toddy Palm is different. However, the new
process is new to everyone, the current employees should have
more sense of making alcoholic products.
Besides the core brewing technology employees, other positions
do not require the special skills, we will recruit them from the
outside because they won’t confuse the concept between the
existing beers and Toddy Palm.
2. Employee Distribution on Different Levels
2018-19
Department
Tech
Sales
Accounting
Partnership
marketing
Customer Service
HR
Distribution
NO.
15
4
2
1
4
2
2
4
Experience (Years)
3-4
2
3
5
4
1
2-3
2
Total NO.
34
2020
Department
Tech
Sales
Accounting
Partnership
marketing
Customer Service
HR
Distribution
NO.
30
20
4
5
10
7
4
20
Experience (Years)
3-4
2
3
5
4
1
2-3
2
Total NO.
100
3. Employee Training Plan
The training purpose is different for different positions. For
most positions, they will spend 5 days to be familiar with the
product line and 3 days to learn the market. However, because
of the job required the employees to directly in touch with the
product and create revenues with it, we have a special training
program for Tech, Sales and Marketing people:
· Day 1-3: Fly to India to understand the culture
· Day 4-19: learn the tech of brewing and managing
· Day 20-21: Learn the target marketing with Boston Beer
Company seniors
Financial Analysis
Financial analysis refers to an assessment of many key factors
which are quite important to the business or sub-business or
project namely the viability, stability and profitability. It is also
referred as “Account Financial Statement Analysis” or
“Accounting Analysis or Analysis of Finance”. A financial
analysis is performed to query stability of an entity, solvent,
liquid or profitable enough to guarantee a monetary investment.
For a startup brewing company a financial analyst conducts the
analysis focusing on income statement, balance sheet and cash
flow statement(Staff,2018).
On the other hand, Pro forma Financial statement or simple Pro
forma analysis is a statement based on certain assumptions and
projections. It is used to prepare the projected balance sheets,
income statements and cash flow statements. For example, it is
used when a corporation want to see the effects of three
different financing options(Averkamp,2016)
In simple terms it is a a forecast usually created from pro-forma
financial statements and forecasted using basic forecasting
procedures. Revenues would provide initial groundwork for
forecast and expenses and other items are calculated as a
percentage of future sales. They usually reflect the predicted
state of the business after a major transaction has occurred in
the business(Staff,2018).
For a Beer Brewing company the financial plan should have the
following elements while designating a plan. This is the
financial analysis plan adopted by “Sedibeng Breweries” and is
most compatible with our Start Up Brewery Plan
Assumptions: Every business should definitely have some
assumptions to start off laying out a financial plan. We assume
a strong economy without major recession and also there are no
unforeseen changes in economic policy like taxes, restrictions
and ingredients ban etc. to make our products obsolete. We need
to designate the plan for a particular time period so that we
don't have to worry about designing it again. Let's say that we
are assuming for a time period of 3 years with a monthly
analysis.
Break Even Analysis: Based on the running costs that is a
summation of costs to keep the business running, including
salaries and wages, rent, water and electricity, insurance etc. we
prepare our Break-Even Analysis. Many of the fixed costs are
included in these costs. Our primary aim is to ensuring sales
levels are running comfortably above break-even. The following
chart describes our break even analysis. From the chart we can
observe that fixed costs account to $41,040 per month and
$93,000 is required to cover our costs. It would a take a few
months to reach break-even through our business operation.
Revenue Projections: For a brewing company there would be
every need to identify the revenue projections. According to
Projection Hub there would be four revenue line items which
would be relevant and of good income scope for a new start up
brewery. They are
Keg Sales: Sales to Restaurants and Bars
Growler Sales: Retails Sales to Walk-In Customers
Bottle/Can Sales: Wholesale to Retail Stores
Retail Sales : Walk in Beer Sales having Tasting Room or
Restaurant(Unknown,2016)
Project Profit and Loss: According to the Pro forma Analysis
done by the “Sedibeng Breweries”, the projected profits if we
manage to break even controlling incurring costs and sales with
using marketing analytics then at the end of first year there
would be a profit of 7.75%, second year would be 9.81% and
third year would be 9.59%(Software,2015).
Pro Forma Profit and Loss
Pro Forma Profit and Loss
Year 1
Year 2
Year 3
Sales
$1,466,026
$1,612,629
$1,806,144
Direct Cost of Sales
$820,975
$903,072
$1,011,441
Other
$0
$0
$0
Total Cost of Sales
$820,975
$903,072
$1,011,441
Gross Margin
$645,051
$709,557
$794,703
Gross Margin %
44.00%
44.00%
44.00%
Expenses
Payroll
$331,200
$331,200
$383,000
Sales and Marketing and Other Expenses
$54,000
$56,700
$59,535
Depreciation
$10,200
$10,200
$10,200
Leased Equipment
$2,400
$2,520
$2,646
Utilities
$4,800
$5,040
$5,292
Insurance
$4,200
$4,410
$4,631
Rent
$36,000
$37,800
$39,690
Payroll Taxes
$49,680
$49,680
$57,450
Other
$0
$0
$0
Total Operating Expenses
$492,480
$497,550
$562,444
Profit Before Interest and Taxes
$152,571
$212,007
$232,260
EBITDA
$162,771
$222,207
$242,460
Interest Expense
$2,000
$1,000
$0
Taxes Incurred
$37,020
$52,752
$59,033
Net Profit
$113,552
$158,255
$173,227
Net Profit/Sales
7.75%
9.81%
9.59%
Pro Forma Cash Flow
Pro Forma Cash Flow
Year 1
Year 2
Year 3
Cash Received
Cash from Operations
Cash Sales
$366,507
$403,157
$451,536
Cash from Receivables
$821,689
$1,181,688
$1,317,934
Subtotal Cash from Operations
$1,188,195
$1,584,846
$1,769,470
Additional Cash Received
Sales Tax, VAT, HST/GST Received
$0
$0
$0
New Current Borrowing
$0
$0
$0
New Other Liabilities (interest-free)
$0
$0
$0
New Long-term Liabilities
$0
$0
$0
Sales of Other Current Assets
$0
$0
$0
Sales of Long-term Assets
$0
$0
$0
New Investment Received
$77,000
$0
$0
Subtotal Cash Received
$1,265,195
$1,584,846
$1,769,470
Expenditures
Year 1
Year 2
Year 3
Expenditures from Operations
Cash Spending
$331,200
$331,200
$383,000
Bill Payments
$977,833
$1,138,456
$1,238,371
Subtotal Spent on Operations
$1,309,033
$1,469,656
$1,621,371
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
$0
$0
$0
Principal Repayment of Current Borrowing
$0
$20,000
$0
Other Liabilities Principal Repayment
$0
$0
$0
Long-term Liabilities Principal Repayment
$0
$0
$0
Purchase Other Current Assets
$0
$0
$0
Purchase Long-term Assets
$0
$0
$0
Dividends
$0
$0
$0
Subtotal Cash Spent
$1,309,033
$1,489,656
$1,621,371
Net Cash Flow
($43,838)
$95,189
$148,099
Cash Balance
$36,162
$131,351
$279,450
Pro Forma Balance Sheet
Pro Forma Balance Sheet
Year 1
Year 2
Year 3
Assets
Current Assets
Cash
$36,162
$131,351
$279,450
Accounts Receivable
$277,831
$305,614
$342,287
Inventory
$123,414
$91,060
$103,841
Other Current Assets
$0
$0
$0
Total Current Assets
$437,407
$528,025
$725,579
Long-term Assets
Long-term Assets
$750,000
$750,000
$750,000
Accumulated Depreciation
$10,200
$20,400
$30,600
Total Long-term Assets
$739,800
$729,600
$719,400
Total Assets
$1,177,207
$1,257,625
$1,444,979
Liabilities and Capital
Year 1
Year 2
Year 3
Current Liabilities
Accounts Payable
$146,655
$88,818
$102,945
Current Borrowing
$20,000
$0
$0
Other Current Liabilities
$0
$0
$0
Subtotal Current Liabilities
$166,655
$88,818
$102,945
Long-term Liabilities
$0
$0
$0
Total Liabilities
$166,655
$88,818
$102,945
Paid-in Capital
$938,700
$938,700
$938,700
Retained Earnings
($41,700)
$71,852
$230,107
Earnings
$113,552
$158,255
$173,227
Total Capital
$1,010,552
$1,168,807
$1,342,034
Total Liabilities and Capital
$1,177,207
$1,257,625
$1,444,979
Net Worth
$1,010,552
$1,168,807
$1,342,034
Ratio Analysis
Ratio Analysis
Year 1
Year 2
Year 3
Industry Profile
Sales Growth
n.a.
10.00%
12.00%
4.60%
Percent of Total Assets
Accounts Receivable
23.60%
24.30%
23.69%
5.30%
Inventory
10.48%
7.24%
7.19%
0.70%
Other Current Assets
0.00%
0.00%
0.00%
24.80%
Total Current Assets
37.16%
41.99%
50.21%
30.80%
Long-term Assets
62.84%
58.01%
49.79%
69.20%
Total Assets
100.00%
100.00%
100.00%
100.00%
Current Liabilities
14.16%
7.06%
7.12%
20.20%
Long-term Liabilities
0.00%
0.00%
0.00%
30.70%
Total Liabilities
14.16%
7.06%
7.12%
50.90%
Net Worth
85.84%
92.94%
92.88%
49.10%
Percent of Sales
Sales
100.00%
100.00%
100.00%
100.00%
Gross Margin
44.00%
44.00%
44.00%
49.60%
Selling, General & Administrative Expenses
36.30%
34.19%
34.36%
26.10%
Advertising Expenses
1.64%
1.56%
1.46%
2.50%
Profit Before Interest and Taxes
10.41%
13.15%
12.86%
10.60%
Main Ratios
Current
2.62
5.95
7.05
1.67
Quick
1.88
4.92
6.04
1.42
Total Debt to Total Assets
14.16%
7.06%
7.12%
50.90%
Pre-tax Return on Net Worth
14.90%
18.05%
17.31%
8.20%
Pre-tax Return on Assets
12.79%
16.78%
16.07%
16.70%
Additional Ratios
Year 1
Year 2
Year 3
Net Profit Margin
7.75%
9.81%
9.59%
n.a
Return on Equity
11.24%
13.54%
12.91%
n.a
Activity Ratios
Accounts Receivable Turnover
3.96
3.96
3.96
n.a
Collection Days
56
88
87
n.a
Inventory Turnover
10.91
8.42
10.38
n.a
Accounts Payable Turnover
7.67
12.17
12.17
n.a
Payment Days
27
40
28
n.a
Total Asset Turnover
1.25
1.28
1.25
n.a
Debt Ratios
Debt to Net Worth
0.16
0.08
0.08
n.a
Current Liab. to Liab.
1.00
1.00
1.00
n.a
Liquidity Ratios
Net Working Capital
$270,752
$439,207
$622,634
n.a
Interest Coverage
76.29
212.01
0.00
n.a
Additional Ratios
Assets to Sales
0.80
0.78
0.80
n.a
Current Debt/Total Assets
14%
7%
7%
n.a
Acid Test
0.22
1.48
2.71
n.a
Sales/Net Worth
1.45
1.38
1.35
n.a
Dividend Payout
0.00
0.00
0.00
n.a
Proforma Sales Forecast
Sales Forecast
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Sales
X Beer
0%
$29,399
$32,143
$38,415
$42,334
$46,254
$48,214
$54,878
$61,542
$64,286
$72,909
$79,181
$90,157
Y Beer
0%
$23,519
$25,714
$30,732
$33,868
$37,003
$38,571
$43,902
$49,233
$51,429
$58,328
$63,345
$72,125
Z Beer
0%
$12,413
$13,571
$16,219
$17,875
$19,530
$20,357
$23,171
$25,984
$27,143
$30,784
$33,432
$38,066
Total Sales
$65,331
$71,428
$85,366
$94,077
$102,787
$107,142
$121,951
$136,759
$142,858
$162,021
$175,958
$200,348
Direct Cost of Sales
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
X Beer
$16,463
$18,000
$21,512
$23,707
$25,902
$27,000
$30,732
$34,464
$36,000
$40,829
$44,341
$50,488
Y Beer
$13,171
$14,400
$17,210
$18,966
$20,722
$21,600
$24,585
$27,570
$28,800
$32,664
$35,473
$40,390
Z Beer
$6,951
$7,600
$9,083
$10,010
$10,937
$11,400
$12,976
$14,551
$15,200
$17,239
$18,722
$21,317
Subtotal Direct Cost of Sales
$36,585
$40,000
$47,805
$52,683
$57,561
$60,000
$68,293
$76,585
$80,000
$90,732
$98,536
$112,195
Risk Assessment Plan
In general, for an industry or company or facility, Risk
Assessment is determination of quantitative or qualitative
estimate of risk related to a well-defined situation and a
recognized threat. Risk assessment could be a general term used
across several industries to work out the chance of loss on a
selected plus, investment or loan. the method of assessing risk
helps to work out if an investment is worth it, what steps could
also be taken to mitigate risk and, through specific ratios, the
top side reward compared to the danger profile. It determines
what rate of come back is important to form a selected
investment succeed.
Business risks run an oversized cross-section including,
however not restricted to: new competitors coming into the
market, employee theft, information breaches, product
remembers, operational, strategic and monetary risks, and even
natural disaster risks. each business ought to have a method in
situ to assess its current risk levels and place in place
procedures to mitigate the worst attainable risks(Staff,2010).
For our startup brewing company there would be probably three
kinds of risks associated with it namely Financial Risk, Hazard
Risk and Compliance Risks. Three of these risk in the long run
determine the profits associated with the Brewing Company
Financial Risk Assessment
According to Lagunitas Brewing Company Case Study, there is
a huge impact of collection days on the profits of breweries. To
keep the collection between one to 30 days is the most optimal
choice. Lagunitas Brewing Company couldn't keep the profits
for years along because of the collection days was always above
60 days(Unknown,2016).
The market and losses incurred because of misinterpretation of
cash flow analysis are huge. You can sell millions of barrels
every year and still would fall into negative cash flow. You
would fall into negative cash flow while you cannot pay your
monthly fixed costs while waiting for account
receivables(Gulley,2012).
Hazard Risk Assessment
The production of brewage and spirits produces solutions of
plant product, which is a extremely ignitable liquid in associate
degree undiluted state and even in resolution. Raw materials for
fermentation and mashing processes involve the handling,
storage, and edge of wheat and barley, that generate flammable
mud, whereas grain cookery and drying need large quantities of
fuel, which is usually fossil fuel. Hence, all kinds of flammable
materials (vapour, mud and gas)necessary for hearth and
explosion ar gift in brewage and spirits producing facilities.
According to majority breweries and distilleries in the UK,
there are some simple steps to prevent and alleviate risks
associated with hazardous materials. The following materials
should be documented
1.Ignitable materials on brewery site
2.Hazardous Area Classification (HAC) for all areas
3.Assessment of ignition sources and their elimination in unsafe
areas
4.Assessments for “equipment” (i.e. mechanical and electrical
equipment)
5.If ignitable atmosphere(s) and or ignition sources cannot be
eliminated
6.Explosion protection in conjunction with explosion isolation
is critical.
To show compliance with the law, for existing plant an
acceptable hazard and risk assessment is critical, that ought to
document the following: ignitable materials on every method
needs a “Basis of Safety”, For each traditional and expected
abnormal operation, which can be:
a) rejection of ignitable atmospheres, and/or
b) rejection of ignition sources,
c) If a) and or b) aren't appropriate, then explosion protection
with explosion isolation is needed. Corrective
recommendations, if necessary, should be enclosed in every
section by the assessor. However, in addition to this principles
hazard risk assessment team should be on watch to prevent any
hazard immediately.
Compliance Risk Assessment
To assess the compliance risk hiring a third party, like Safe
Link Consulting etc., to perform the compliance risk assessment
onsite during a distillery real time functioning is the best
chance to evade any fines and bad reputation later. The
Compliance Risk Assessment should cover federal and state
Occupational Safety and Health Administration standards for
breweries, FDA distillery compliance. The assessment is for
varied examples like Quality System necessities, and any
distillery / drinkable state legislative necessities. Time to Time
Compliance Risk Assessment and marketing such strategy
would put the startup in a good reputation within the consumer
and retail companies(Laura,2017).
Harvest Strategy
A harvest strategy is a plan in which there is a reduction or a
termination of investments in a product, product line, or line of
business, to reap the maximum profits. It is typically employed
toward the end of a product's lifecycle when it is determined
that further investment will no longer boost product revenue. A
harvest strategy may involve the gradual elimination of a
product or product line when technological advances render the
product or line obsolete(Staff,2018).
Harvest Strategy for Long Term Business Plan
For our company the harvest strategies would be let’s consider
the plan of “Billow Breweries” partially which referred the
harvest strategies in three main steps
1.Releasing and marketing a signature brew beers and drinks
2.Making a Fan Base through Rewards Membership
3.Accepting any collaborations with the larger brewing
companies like Sam Adams, Anheuser-Busch, or SABMiller.
By using these harvest strategies, the startup company would
never run out of profits to losses. With the current trends of
Beer Behemoths acquiring individual startups, there’s a huge
chance for every startup beer companies to enjoy a huge success
in long term business(Staff,2018).
Milestone Plan
1. Sourcing: To identify the sources where the palm trees are,
and if we can elicit the palm wine from those trees. Usually the
tropical regions do have palm trees and hence got to keep the
key source as one of the regions that have the palm trees.
Countries in Asia, Africa, Caribbean and South America all
have palm trees and we could definitely source the raw material
from these regions.
2. Distillation: The distillation process is done in the Boston
brewing company, the machinery that is not being used will be
put into use to perform the distillation process of the palm tree
wine. This process can take up to a long period of time. The
distillation process makes the drink stronger than it originally is
when extracted from the trees.
3. Packaging: The packaging process is different for The Boston
Tea from the parent Boston brewing company, the bottling is is
done differently for this drink and the shape of the bottle is
different from the default bottles made by the Boston Brewing
Company for its beers and ciders.
4. Distribution: most of Company's sales are made to a network
of roughly 350 wholesalers in the United States and to a system
of remote wholesalers, shippers or different offices (altogether
alluded to as "Merchants"). These Distributors, thus, pitch the
items to retailers, for example, bars, eateries, basic need stores,
comfort stores, bundle stores, stadiums and other retail outlets,
where the items are sold to consumers, and in some constrained
conditions to parties who go about as sub-merchants
5. Supply: The cycle and process of making the product
available to the consumer does not end at distribution. The
process keeps continuing and as the product reaches out to the
consumers and needs more supply due to the demand the whole
process and steps involved in the milestones are involved again.
Hence the process is repetitive.
Reference
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bud-sam-adams-new-official-beer-red-
sox/1R4vjX9rKhhI9fK7WiAcKP/story.html
Argersinger, M. (2010). Stock Advisor Buy List Boston Beer
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https://www.fool.com/investing/general/2010/07/29/stock-
advisor-buy-list-boston-beer-co.aspx
Arthur, R. (2016). From Cocktails to Craft: What Do
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https://www.reuters.com/finance/stocks/companyProfile/SAMCr
aft Spirits Market Analysis By Distiller Size (Large, Medium,
Small), By Product (Whiskey, Vodka, Gin, Rum, Brandy,
Liqueur), By Region (North America, Europe, Asia Pacific,
South America, MEA), And Segment Forecasts, 2018 – 2025.
(2017). Retrieved from
https://www.grandviewresearch.com/industry-analysis/craft-
spirits-market
Chang, A. (2015, March 3). The Indispensable Guide to Sake
and Japanese Culture. Retrieved from Talkativeman:
http://www.talkativeman.com/sake-and-japanese-culture/
Dieterle, J.(October 19, 2017). Moonshine makes a comeback in
Virginia. And This time it is Legal. Retrieved on June 23, 2018
from
https://www.npr.org/sections/thesalt/2017/10/19/558324004/mo
onshine-makes-a-comeback-in-virginia-and-this-time-its-legal.
Foley, R. (2006). Bartending For Dummies. John Wiley & Sons.
Guidelines for Establishing Ethanol Plant Quality Assurance
and Quality Control Programs (2014). Retrieved from
http://www.ethanolrfa.org/wp-content/uploads/2015/05/RFA-
QA-QC-Guideline-Sept-2014.pdf
2017 Annual Report. Retrieved from
https://www.bostonbeer.com/static-files/f6821bd5-6abb-4cf5-
aea6-46c831558552
Sandra C. Jones, L. P. (2009, October 26). ‘Most men drink…
especially like when they play sports’ – alcohol advertising
during sporting broadcasts and the potential impact on child
audiences. Retrieved from Wiley Online Library:
https://onlinelibrary.wiley.com/doi/full/10.1002/pa.340
The Boston Beer Company, Inc (2018). Boston Beer Company
Annual Report (Retrieved on June 23, 2018 from
https://www.bostonbeer.com/annual-reports.
Wolf, J. (May, 20, 2017). From Moonshine to modern craft: The
Story of Tennessee distilling. Retrived in June 6, 2018 from
https://www.tennessean.com/story/entertainment/dining/2017/05
/20/moonshine-modern-craft-story-tennessee-
brewing/100776186/
Rubic_Print_FormatCourse CodeClass CodeAssignment
TitleTotal PointsNRS-429VNNRS-429VN-O501Family
Assessment Part II150.0CriteriaPercentageUnsatisfactory
(0.00%)Less than Satisfactory (75.00%)Satisfactory
(79.00%)Good (89.00%)Excellent (100.00%)CommentsPoints
EarnedContent80.0%SDOH Affecting Family and Family Health
Status20.0%SDOH affecting family health status, and the direct
impact to the family, are not presented.SDOH affecting family
health status are partially presented. SDOH listed are not
relevant to the family. The direct impact to the family, and why
the factors are prevalent to the family, are unclear. There are
inaccuracies.Key SDOH affecting family health status are
summarized. The SDOH identified are relevant to the family.
The direct impact to the family, and why the factors are
prevalent to the family, are generally discussed. More support
or rationale is needed in some areas.The overall SDOH affecting
family health status are accurately identified and described. The
SDOH identified are relevant to the family. The direct impact to
the family, and why the factors are prevalent to the family, are
discussed. The SDOH directly affecting family health status are
relevant, accurately identified and thoroughly described. The
direct impact to the family, and why the factors are prevalent to
the family, are discussed in detail. The discussion is well
supported and illustrates insight into SDOH and their effect on
family health status.Age-Appropriate Screening
Recommendations20.0%Age-appropriate screenings are not
presented.Screenings are presented for some family members.
The screenings are not age appropriate. Screenings are not
relevant to the information gathered through family health
assessment. Screenings are presented for each family member.
Screenings are generally age appropriate, but entirely not
relevant based on the information gathered through family
health assessment. More rationale and support is
required.Screenings presented for each family member are age
appropriate. Screenings are relevant and based on the
information gathered through family health assessment. Some
minor rationale or support is needed.Screenings presented for
each family member are age appropriate and highly relevant.
Screenings correlate to the information gathered through family
health assessment. Strong rationale and support is
presented.Assessment of Health Model20.0%A health model to
assist in the creation of a plan of action is not presented. The
model chosen is not a health model.A health model is selected
to assist in creating a plan of action. The description of the
model is incomplete. It is unclear why the chosen model is best
for this family.A health model is selected and described. A
summary of how the model will assist in creating a plan of
action is presented. A general overview for why it is best for
this family is provided. More rationale and support is
required.A health model is selected and described. A discussion
of how the model will assist in creating a plan of action is
presented. Reasons for why it is best for this family are
provided. Some rationale or support is needed.A health model is
selected and thoroughly described. A detailed discussion of how
the model will assist in creating a plan of action is presented.
Reasons for why it is best for this family are clearly outlined.
Strong rationale and support are provided to support
reasoning.Application of Health Model20.0%Family-centered
health promotion using selected health model is omitted. Steps
for a family-centered health promotion are partially presented.
The health promotion is not based on the health model.
Significant aspects are missing. There are major
inaccuracies.The health model is used to create a general
family-centered health promotion. The steps to achieve the
desired outcome require more detail to illustrate a clear plan of
action. A general plan for communication with the family is
presented. More rationale and support is required.The health
model is used to create a relevant family-centered health
promotion. The steps to achieve the desired outcome are
illustrated. Strategies for communication with the family are
presented.The health model is used to create a relevant and
viable family-centered health promotion. The steps to achieve
the desired outcome are described in detail. Appropriate
strategies for communication with the family are clearly
presented. The health promotion is well-designed and
demonstrates an ability to assimilate findings and appropriately
apply theoretical knowledge to achieve desired
outcomes.Organization and Effectiveness 15.0%Thesis
Development and Purpose5.0%Paper lacks any discernible
overall purpose or organizing claim.Thesis is insufficiently
developed or vague. Purpose is not clear.Thesis is apparent and
appropriate to purpose.Thesis is clear and forecasts the
development of the paper. Thesis is descriptive and reflective of
the arguments and appropriate to the purpose.Thesis is
comprehensive and contains the essence of the paper. Thesis
statement makes the purpose of the paper clear.Argument Logic
and Construction5.0%Statement of purpose is not justified by
the conclusion. The conclusion does not support the claim
made. Argument is incoherent and uses noncredible
sources.Sufficient justification of claims is lacking. Argument
lacks consistent unity. There are obvious flaws in the logic.
Some sources have questionable credibility.Argument is
orderly, but may have a few inconsistencies. The argument
presents minimal justification of claims. Argument logically,
but not thoroughly, supports the purpose. Sources used are
credible. Introduction and conclusion bracket the thesis.
Argument shows logical progressions. Techniques of
argumentation are evident. There is a smooth progression of
claims from introduction to conclusion. Most sources are
authoritative.Clear and convincing argument that presents a
persuasive claim in a distinctive and compelling manner. All
sources are authoritative.Mechanics of Writing (includes
spelling, punctuation, grammar, language use)5.0%Surface
errors are pervasive enough that they impede communication of
meaning. Inappropriate word choice or sentence construction is
used.Frequent and repetitive mechanical errors distract the
reader. Inconsistencies in language choice (register), sentence
structure, or word choice are present.Some mechanical errors or
typos are present, but they are not overly distracting to the
reader. Correct sentence structure and audience-appropriate
language are used. Prose is largely free of mechanical errors,
although a few may be present. A variety of sentence structures
and effective figures of speech are used. Writer is clearly in
command of standard, written, academic
English.Format5.0%Paper Format (use of appropriate style for
the major and assignment)2.0%Template is not used
appropriately or documentation format is rarely followed
correctly.Template is used, but some elements are missing or
mistaken; lack of control with formatting is apparent.Template
is used, and formatting is correct, although some minor errors
may be present. Template is fully used; There are virtually no
errors in formatting style.All format elements are correct.
Documentation of Sources (citations, footnotes, references,
bibliography, etc., as appropriate to assignment and
style)3.0%Sources are not documented.Documentation of
sources is inconsistent or incorrect, as appropriate to
assignment and style, with numerous formatting errors.Sources
are documented, as appropriate to assignment and style,
although some formatting errors may be present.Sources are
documented, as appropriate to assignment and style, and format
is mostly correct. Sources are completely and correctly
documented, as appropriate to assignment and style, and format
is free of error.Total Weightage100%
Marketing Plan
1
Patel Brothers Delivery Service
2
Patel Brothers Delivery Services -Marketing Plan
Group 7
Kadam Dani
Venkatesh karri
Sri Sahithi Andal Motamarri
Koushik Kumar Pidathla
University of Cumberland’s
Executive Summary
South Asian people love food, especially food that makes them
feel home, but living in the US doesn’t always provide authentic
home taste, and people living in the Suburbs where then must
travel 10 to 20 miles to go to a good Asian restaurant. Our
service helps people to get the food to their door by simply
ordering online. Patel Brothers are known for fresh vegetables
and authentic home groceries provider along with that they
make much food in the house and sell in their retail stores, we
want to expand this to provide more food varieties delivered to
the door.About the company
Patel brothers’ headquarters is in Hanover Park, Illinois. Patel
Brothers have a revenue of $150M, and 250 employees, their
main competitors are shop Indian, Vedicpro Usa and
Grocerybabu. The Patel Brothers have always been a pioneer in
the South Asian commodities market; currently, it serves a vast
range of demographics from Afghanistan, Nepal, Pakistan to
Bangladesh India, and Sri Lankan People living in various
states all around the USA. Patel Brothers are known for fresh
vegetables and authentic home groceries provider. Marketing
Stragey
Marketing strategy for a delivery service industry should
primarily focus on having a good delivery services and good
customer experience. Since the target audience is already
defined identifying the geographic location of the target
audience will help to provide services and open new facilities if
needed.
As the target group is South Asians who want to buy
South Asian groceries and vegetables, we will identify
population of South Asian groups by metropolitan area. “The
growth rate for the South Asian population greatly exceeds that
of the Asian American population as a whole (43%), as well as
that of the Hispanic American population (43%), and non-
Hispanic whites (1.2%)” (Asian American Federation, 2012).
Patel Brothers delivery system both online and offline
marketing campaigns to promote the service. Social networking
platforms like Facebook, Twitter, Pinterest and Instagram will
be used to promote the service. Special campaigns like
promotion walks will be held in the identified geographic
location to market the service to the target audience. As
Costumers service is the main goal of the company a dedicated
Facebook, Twitter and Instagram pages will be created to
engage with customers and to instantly solve any issues with the
delivery

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Running Head MKTG PLAN - THE BOSTON TEA .docx

  • 1. Running Head: MKTG PLAN - THE BOSTON TEA 1 Running Head: MKTG PLAN - THE BOSTON TEA 20 Business Plan: The Boston Tea Team A Executive Summary The Boston Beer Company’s products are one of the most recognized brands in the alcoholic beverage market, especially in the craft beer market. But the trends in the craft spirit market are changing and we are on the verge of a change similar to the one the market experienced in the craft beer market 7 -8 years ago and the Boston Beer Company with it unique expertise can
  • 2. make a difference and substantial profits, as it did with the Craft beer market. What we have accomplished? The Boston Beer Company’s goal is to becoming the leading supplier of Better Beer market and we have become the largest supplier of quality craft beer. We are proud to have introduced into the market world-class variety of traditional and innovative alcoholic beverages under brand names Samuel Adams, Angry Orchard and Twisted Tea. The company’s growth has been fueled by both alcoholic and non-alcoholic beverage, but more so by the hard ciders. But the trends in the spirits market are on the cusp of a new change. The spirits market is going through newer disruptive new innovations. The Boston Brewing Company, with its unique expertise, experience of reshaping craft beer market can be a disruptive force in the Craft Spirit market. Therefore, we propose to introduce a new craft spirit, a moonshine, under the name “THE BOSTON TEA”. Who are our customers Traditionally spirits have been consumer mostly by men, especially older men. But recently consumer interest has risen in moonshines and craft spirits. The consumers mostly young men and women between the ages 25-44 are increasingly gravitating towards the high quality spirits with unique flavors rather than just plain spirits. The increase in the number of manufacturers of moonshines in the southern United States and their popularity among the consumers reflects this trend (The Boston Beer Company, Inc., 2017) How big is the market The Spirit market in United States is approximately $7.5 billion in 2017 and the craft spirit market accounts for only 0.5% of the sales. But we need to remember that the craft spirit market has very near market origin. The global Craft Spirit markets is expected to grow at a staggering rate from 2017 to 2025 to more than $80 billion dollar business and United States is projected to account for nearly 53% of that sales. The opportunity for a
  • 3. tremendous growth in this market is potentially huge. What’s our strategy goal Boston Beer Company has always had the goal of becoming the number one producer of the quality beer in the better beer category and we accomplished this by offering customers unique and quality beer. We will employ the same strategy employed for the craft beer market i.e, make early inroads into the craft spirit market and garner a large market share. The strength of the Boston Beer company is in the quality of its products, the unique experience it offers, the distribution channels it has and strong relationships that it has with the suppliers, wholesalers distributors. We will leverage all these qualities to make inroads into the craft spirit market The (Boston Beer Company, Inc., 2017). Introduction. The Boston Brewing company, is the largest craft brewers in the United States. In 2017, Boston Brewers have sold approximately 3.8 million barrels of its products. The company since its humble beginnings has revolutionized the craft beer market. Along with the top 10 craft beer makers, it accounts for 30% of the U.S. Craft beer market. One of the corner stones of its philosophy is that “Change is good.” The Boston Beer Company would like to bring the same philosophy to the American Spirits Market. Therefore, The Boston Beer Company has decided to invest in the venture of brining in a moonshine local to the South Asian and African countries to capitalize on the growing interest of American consumers in the moonshine spirits. The name of the product will be “The Boston Tea”. Why this business and Why Now? Moonshine always had been part of American history. To rephrase Joe Michalek, president of Piedmont Distillers Inc., Moonshine embodies intrinsically American Spirit and its history. Moonshine had a very large impact on the heritage of America. Another important aspect of Moonshine is that it gives consumers of spirit experience that is very unique and euphoric. These two qualities are main reasons why Moonshines are
  • 4. showing a resurgence in the American Market. In October 2016, the American Craft Spirits Association cited 1,315 active craft distillers in the U.S., accounting for $2.4 billion in annual retail sales, a growth of 28 percent over the previous five years (Wolf, 2017). But of these Moonshine spirits account only for 0.5% of the $7 billion spirits market. Therefor the potential for growth is huge. They have come a long way since the days of prohibiton. People are showing interest in a product that was historically illegal. It’s a part of American history and people are queuing to experience it. We can incur this from the growth in the local moonshine distillers. Who’s going to buy? The company’s strategy is to market it new product, The Boston Tea, primarily in the metropolitan areas, women and younger demographics. Moonshines have garnered popularity in the Southern states of United States and have very little presence in the rest of the market regions. We are going to adopt the same strategy as we did with the craft beer market i.e, get into these markets early, leveraging our distribution network and garner a large market share. Company Analysis Origins and Background The Boston Brewing Company was founded in 1984 by Jim Koch when he began the making the first batch of lager in his kitchen. From its humble origins, it had grown to be the most well-known and the largest craft beer brewer in United States. It went public in 1995. The company now has 1505 employees and has a market cap of $3.505 billion and trades at $300.90 per share as of June 6, 2018. Its head quartered in Boston, Massachusetts. In 2017, the company has sold more than 60 beers under Samuel Adams brand names, more than twenty flavored malt beverages under the Twisted Tea brand name, nearly 20 hard cider beverages under Angry Orchard name and five hard sparkling waters under the Truly Spiked & Sparkling brand name. It has reported that it had sold nearly 3.8 million barrels of its products(The Boston Beer Company, Inc., 2017).
  • 5. Location It owns breweries in 5 states in Boston, Cincinnati, Breinigsville, Los Angeles, Miami. The company’s beer products are graded to be in the better beers. Better beers tend to be of higher quality, image and taste than the premium beers. Better beers are approximately 29% of the United States beer consumption by volume. It has a brewery in Ohio where it produces non-core brands. The Boston plant is the first and the breweries in Cincinnati and Pennsylvania produce majority of the beer. It also had agreements with City Brewing Company, LLC in PA and La Cross in Washington to produce beer for it. Suppliers The main ingredients used its products, it sources from a multiple suppliers. The main ingredients it uses are hops, yeast and apples. But as per its reports for malt it sources it from a trusted single supplier. This reliance on a single supplier could be a problem for it in the long run. Major Products and Strategies The company’s main goal is to become the leading provider in the categories in which it competes. It offers high quality full flavored alcoholic beverages. Initially, it’s main focus is to increase the sales of its Samuel Adam’s brand supported by other complimentary brands. In lieu of this it launched the Angry Orchard brand family in 2011. It is the largest selling brand of hard cider in the United States. The Twisted Tea product was launched in 2001 and since then has grown steadily and has garnered loyal followers. In 2016, the company began selling Truly Spiked and Sparkling brand (The Boston Beer Company, Inc., 2017). The products it sells are sold in various packages. It sells kegs for on premise retailers like bars, restaurants and bottles are sold in off-premise retailers. The company has made several innovations in packaging its products. It tests continually its beers, hard ciders and other alcoholic beverages. It has adopted a strategy of selling the products under various names to test them. It recently concluded as testing to enhance the experience
  • 6. of the beer drinkers. It will be using a container with opening that has an extended lip and an hour glass ridge(The Boston Beer Company, Inc., 2017). Markets, Sales and Distribution BBC, recently formed a subsidiary called A&S Brewing Collaborative to be a craft beer incubator. The main idea behind this is to find new opportunities in craft brewing. The company has around 350 wholesalers in the United States through which it does the distribution. The company markets is predominantly United States. But it also sells in Canada, Europe, Israel, Australia, New Zealand, the Caribbean, the Pacific Rim, Mexico, Central and South America. Boston Beers has a sales force of 415 people which is one of the largest in the domestic beer industry. BBC reported a decline in sales in 2017 by about 6.2%. The company revenue decreased by 4.8% to $863 million. Boston Beer is projecting to return to growth. Executives James Koch is still the Chairman and Founder. David Burwick was appointed as the Chief Executive Office in April, 2018. Market Definition, Potential and Demand Market Analysis: The Market: In this case, we are aiming at women in the metro areas and as well as small towns. Young people also would be enthusiastic to buy and try the product in the market and taste it. The word of mouth by young people is powerful and hence a lot of youngsters are going to be attracted and fall in love with the drink. The volume is going to be 200,000 gallons of Boston Tea. As we go by depending on the sales and consumers response the next production will be planned. The benefits of this drink and the fact that it is elicited out of a sap makes it very natural, it helps in digestion, makes a person active and energetic and at the same time does not taste as bitter as alcohol or other spirits. Geographical area: The geographical area to sell is very vast covering United States of America, but the market is also in
  • 7. other countries like Canada, Europe, New Zealand, Mexico, and Central and South America. Mostly the product is shipped within few days of completion and there will not be any significant delay in product order. The company would be receiving most of its orders from domestic distributors for the following weeks of the months during the first week of that month. Consumer behavior: Consumer behavior is expected to be consistent throughout. Consumers are not restricted to any age group, hence the consumers’ response to the market will be positive. Because of its taste and the afterwards feel of this drink, there will be more demand. Nobody can stop with just one bottle or glass and hence the consumer rates would be getting higher and higher. Market segmentation: Market is going to be split into segments, the customers of same taste and same age is how the market is segmented into. Gaps are not expected in the market. In the year 2017, the company brewed, fermented and packaged 90% of the volume at breweries that are owned by the company. $33 million was the capital investment in the year of 2017. Boston brewery’s production focuses mainly to develop and create new beers and hence rolling the new product into the market is not going to be a big or new task for the brewing company. Potential: The Gross profit per barrel in the year ended in 2016 was $114.38. Gross margin for the year ending in 2016 was 50.7%. The company’s gross profit is expected to go high after launching the new drink as it is special and it is new to the entire country. The segments that are going to be distributed and going to make higher profits first, then the towns and suburbs. As the company includes freight charges. Boston Beer has a business power of around 390 individuals, which the Organization accepts is one of the biggest in the residential brew industry. The Company's business association is intended to create and fortify relations at the Distributor, retailer and consumer levels by giving instructive what's more, special
  • 8. projects. The Company's business constrain has an abnormal state of item information and is prepared in the points of interest of the blending and offering forms. Deals agents ordinarily convey tests of the Company's brews, hard juices and hard shimmering waters, certain fixings, for example, bounces and grain, and other limited time materials to teach discount what's more, retail purchasers about the quality and taste of the Company's items. The Company has created solid associations with its Distributors what's more, retailers, a significant number of which have profited from the Company's premium estimating procedure and development. Demand: The actual demand for the product or service is yet to be determined based on the sales of the product once after the launch and the distribution and sales takes place. The demand is expected to be high and equal to that of beer since the drink consists of more alcohol percentage than beer and for the drinkers that is one main aspect in a drink while you select what to choose. The future demand is estimated to be higher than the current year. Future of the product in directly tied to the way we advertise about the product and how the consumers take it. It is not almost a 100% certain that the taste you like may be like I do not like how it tastes. This could be expected. Competitor Analysis Toddy palm is a drink originally from India even if the alcohol content is not too high, however, we are going to enhance the percentage to around 40% by purifying and extracting the liquid. The texture of toddy palm distinguished it from beer and wine, it’s more like Vodka or Rum. Based on the products similarity, and the fact that there isn’t any similar product that in retail industry in the united States, we narrow down the competitors into three main brand/products: two brands of Vodka and Sake. 1. Tito’s Vodka Tito is not a very new company, it was established in the early 90s at Austin, TX, which is only a fewer years younger than Boston Beer Company, but not very well-known until the recent
  • 9. years. There backgrounds similarity is one the reason the we think Tito’s is a potential competitor. Tito’s Vodka is hand-crafted, same as traditional Toddy Palm: the palms was hand-picked by tribe people in India and fermented. The philosophy behind it is overlapped. Thirdly, Tito’s is focusing on the sports fans marketing, Boston Beer Company has the same strategy as the official beer provider with Red Socks. As a Texas based on liquor company, Tito’s have partnerships with many local professional sports team. The most successful case among all the marketing moves is the cooperation with the Houston Rockets, the local NBA team in Houston, TX. Most men drink…especially like when they play sports (Sandra C. Jones, 2009). Tito’s corporation with Houston Rockets including have two Tito’s vodka stores inside the building to sell drinks to the audience during the game or concert. Besides, according to the Rockets & Toyota center confidential partnership survey recap, 93% of the people who come the event/game think Tito’s is a good brand and offers good Vodka. Such strategy makes the brand be known by more people and also build the positive brand image. Tito’s takes top sales spot among all liquor brand in 2017, the sales increased $190 million in this period. 2. Gray Goose Gray Goose is not the top Vodka brand now but it was once, however, is still the most well-known one and is the NO.1 choice of many bars & clubs as the vodka provider. Beside the pure vodka, it has different flavors too: Grey Goose Cherry Noir is a black cherry-flavored vodka, Grey Goose L'Orange is an orange-flavored vodka, and the now-retired Grey Goose La Vanille tasted of vanilla, with hints of cinnamon and caramel (Foley, 2006). Extracted Toddy Palm has coconut flavor, which makes them the similar products. The facts that Gray Goose has high reputation, and it is in most
  • 10. of bars, it has already occupied a huge liquor market which makes it is our competitor. 3. Sake (the type, all brands in America) Sake, a traditional local liquor from japan, is popular in America now and be accepted by many Americans as exotic drink. In American market, there are too many different brands and companies offer Sake, we wanted to treat the whole category as competitor. Firstly, Sake has great story and culture from Japan, so does Toddy Palm in India. Sake is made from rice. In Japan, sake has been consumed since ancient times (Chang, 2015). Toddy Palm is from India which is also has an attractive background that could be used to market the product. Secondly, the traditional way to drink sake is with Japanese sake cups by sipping it, however, now days Sake can event be use is a material to make cocktails and the recipes are everywhere on the internet. To make cocktail is also one of the purpose of drink Toddy Palm. Sake’s success is high relative with the Japanese food too. Japanese food could be really expansive and could showing American’s great food taste, the combination of Japanese food and drink makes it really popular in America especially in big cities on east and west coast. Industry Analysis Rivalry Among Existing Competitors With recent interest in public in moonshine spirits, many distilleries have come up in the Appalachian region. The popular existing competitor in the Southern United States are Ole Smoky Moonshine Distiller based out of Gatlinburg, Tenn. Palmetto Moonshine started selling moonshine in 2011. Other moonshine distillers have been started all over Appalachian region. Recently Jack Daniels has decided to enter into the moonshine market. But none of these existing producers are deemed competitive as these manufacturers are very regional in their market and do not have distribution channels and the production capabilities of the Boston Brewing Company.
  • 11. Once the existing competitors develop the production and the marketing capabilities of the BBC, it might lead to price war but the near occurrence of these price war is remote. Price war as a result of the production of similar product by much larger manufactures like Jack Daniels is a possibility. Also, BBC has a very loyal customer base. The threat of the existing competitors to this customer base has to be taken into consideration. This market offers huge growth potential and the loyalty towards competitors brand is not considered a threat. Bargaining Power of Suppliers The raw material required for the production of the product is indigenous to South East Asian countries especially to the South Indian region and Indonesia. The process of extracting the raw material is done locally by people and sold to the local distributors. These suppliers do not have any kind of leverage on the price of the raw material. The export of the product to the out of the region is virtually non-existent. The local governments have established channels and non-profit organizations to be able to access these distributors. The Boston Brewing Company will have all the leverage it needs it fixing the price for the raw material collection and supply. The local governments are giving duty free incentivize the export of the material. The company is in a good position to leverage these incentives. Bargaining Power of Buyers The Boston Brewing company has access to approximately 365 distribution channels. The customer relationship with these distributors and the company are very strong and the BBC will be able to negotiate and extract profitable price for the product. As per the sales records, the single largest distributor accounted for 6% of the revenue and the top 3 distributors accounted for nearly 12% of the revenue, these distributors may have some leverage on the price of the product. Since the product is being distributed to only these channels and opportunity for market growth and revenue are considerable and the BBC being the only company selling this type of product, the threat of the
  • 12. bargaining power of these buyers is considerably from other distributors is less. Not too many competitors exist in the market for the product we are introducing. Therefore this aspect is not considered to have any significant effect. The low price of the competitors and additional value offered by competitors selling other spirits can be threat. This has to be considered in the price of the product. Threat of New Entrants The target population for the new product are young people, women and people living in major metropolitan areas, where The Boston Brewing company has been traditionally strong and has a loyal customer base. Since the products against which this product is competing are traditional spirits and other moonshine manufacturers, the threat of new entrant is low as the barriers to entry are high. The threat that arises from the local distilleries is not considered to be significant. Also, few player exist in the market. As the awareness of the product grows, sales and the profitability will increase, the profitability will also increase. Currently, the market is only 0.5% of the $7 billion of the total spirit market, the potential for growth is huge. Threat of Substitute Products or Services Competition from the traditional spirits is considered to be the major threat. The big player producing whiskey and other spirits will pose significant challenges in expanding to new areas and willing over new customers. As the popularity starts to increase, the efforts by the big players will be to prevent the customers from switching their loyalty. This will impact the growth aspect of the sales. BBC has a very loyal customer base in some major markets and demographics. Customer Analysis The traditional demographics which showed interest in these type of products are older generation, people from semi-urban and rural areas. But the millennial generation and people from urban and metropolitan areas, as found by the distillers, are found to be showing increasing interest in these type of drinks.
  • 13. The secondary market data shows that people in the age of 21- 35 year age group are embracing the spirits category and brown spirits. As the demand for the spirit increases, the demand for these drinks is bound to increase as well. The main group of people which BBC is targeting are women, young people in between the age of 21-44 years and people in big metropolitan areas. The report on Global Spirits market has provided us with an analysis of the market. It covers the craft spirits market. Since the product is considered to be a craft spirit, the trends in craft spirit market will reflect the sales of the product. The global craft spirit market is valued at $80.43 billion in by 2025 and is expected to grow at 33.4% from 2017 to 2025. Millennials born between 1980 to early 2000’s represent major demographics section of consumer who are showing interest in the craft spirits. The Young millennials who have reach the LDA, appear to be the high potential consumers for the craft spirits. Also, the preference of these young millennials is found to be unconventional drinks which have a unique tastes and flavor. The craft spirit market is predominantly located in the United States of America accounting for 53% of the craft spirit market. Specialty spirits are found to be most popular spirits followed by Whiskey and Vodka. Men are driving the alcohol beverage market. In Spirits market, the consumers are seeking products, especially people aged between 21-35, that are superior in quality and offer a superior experience and enjoyment. Its men who are over consuming spirits, but female consumers are showing keen interest in this market too. Health is becoming increasingly influential across the entire alcohol beverage market. As, the craft spirits popularity is rising, people especially women are seeking healthier options. Consumers are increasingly want careful formulation. Therefore, increasing the premium offerings can drive the successful growth of the product. SWOT Analysis
  • 14. SWOT analysis is provided, based on the preceding analyses. Reasoning for each item in the SWOT is provided and logical. Strengths and weaknesses are clearly internal factors, and opportunities and threats are clearly external factors. SWOT Analysis for Boston Beer Company in the United States of America. A SWOT analysis can help to spot the opportunities that the new venture can take the benefits by taking advantage to make the highest level of benefits possible. Generally, changes in the market and consumer trends contribute towards the external factors in creating opportunities. for this proposed new venture affect the performance of the company and measure. For the new product launching, four marketing standards for price, product, sales and promotions need to be studied. To analyze these standards areas, strengths, weaknesses, opportunities and threats to examine the risks involved and strengths. The strengths, weaknesses, opportunities and threats will be identified for the new product based on the existing data (Argersinger, 2010) SWOT Analysis Strengths 1. Strong brand recognition 2. Multiple product lines. 3. Innovators. 4. Product development skills Weaknesses 1. Environmental impact due to the palm tree used as raw material for this product. 2. Company’s relative smaller size than the giants in beverage business made it difficult for the company to exert pricing power over its suppliers and no power to alter the pricing. 3. Heavily driven by consumer preference 4. Does the focus of palm wine from other Boston beer products. Opportunities
  • 15. 1. Higher penetration with smaller retailer customers in the U.S. 2. Rising demand for alcoholic beverages inspired by travel 3. Non-alcoholic palm sap beverages Introduce authentic food service/restaurant Threats 1. Commodity price increases 2. Competitive market 3. Private label growth Competition Competitors VooDoo spirits Marketing Objectives and Goals Currently the Boston Beer Company’s target market is woman and young people, and also, the sports fans. As an intrepreneur venture, we are going to take advantages by targeting the same market since there are massive existing recourses we could use. I’ll analyze each target in the following contents: 1. Sports Fans Sports culture is special and unique in America, and people are used to have a drink while watching the game. As we mentioned in the plan earlier, vodka companies, for example, the Tito’s, has chosen to promote their product to the sports fans by having partnerships with different sports teams and serving their vodka in the house. Boston Beer Company has already developed market in the similar but more bold way- Boston Beer Co., signed an eight- year deal with the team that will last through the 2025 season (Adams, 2017). By using the current recourses and element Boston Beer
  • 16. Company has gained from Red Sox, we could reach to our target market by: · Serving the product in the arena · Put the product advertisement in the signage on the court · Purchased the additional marketing rights from Red Sox to make our product the “official toddy palm of the Red Sox” 2. Woman Speaking of the reason of woman drinking wine, many people know that “beauty function” is one of the biggest reason and people are believe in the theory. The toddy palm has multiple functions and has many nutrition inside: it has huge percentage of protein, Vitamin C, Zinc, Iron, Vitamin B group. Palm could improve eyesight, reduce the risk of cardiovascular disease, prevent cancer, enhance the skin, and promote lactation. With massive goods inside, combine with appropriate advertisement and to choose a young beauty as the spokeswoman, and fruit taste natural flavor, we are confidence that we could reach to women successfully. 3. Young People According to a research on study the motivation of people to drink, Accordingly, four categories of drinking motives emerge as final antecedents of drinking behavior: · drinking to enhance positive mood or well-being · to obtain social rewards · to attenuate negative emotions · and to avoid social rejection Young people always seeking new adventures, they have desire to try new things and want to be cool, they have all the traits of the motivations listed above, which is a perfect target group of our product. Other than the motivations and natures, another benefit and reason to target young group is that young people’s financial level match our product price too: we are a branch of a regular beer company, not a high-end brand, we will make de retail price at medium level among the liquor market.
  • 17. Besides, as we mentioned in the analysis of Sake, it is popular because it can also be a material of cocktail and young people like it. Our product is able to make cocktails too, which makes young generation our perfect target. From the positioning, since our material is not high-end and brewing technology is not very difficult, also considering the income level of our target marketing, our product will be made for middle and middle-low class people, a little bit lower than regular vodka but the price could encourage people to accept it Marketing Strategy Having a solid marketing strategy will only pay back the time and money invested in the launch of the new product into the USA market. Targeting demographic area is less important compared to the target group. Identifying the target group and the area they mostly live will help to get the new product sales. As the target group are the people between 21- 35 years old who are adventurous, willing to try new exotic alcoholic drinks and drinks with high alcohol content we will create buyer persona using online technology. The millennials have growing taste for and value authentic crafted alcoholic drink from the report presented by 2016 Trend Insight report (Arthur, 2016). The buyer persona will help to know the customers. Researching the competitor. The type of marketing ways they choose, pricing of the product and their loyal customers will help us to keep to the standards of marketing to be able to reach the target group. Boston Beer Company will participate in tasting festivals, festivals and be able to earn place on shelves in popular supermarkets and bars in the country. Boston beer company is known to invest good amount of their revenue in advertisements. But, using the brand label we can offer sample tasting to the loyal or existing customers and if they like the product we will gain free word of mouth advertisement. We will also invite tastemakers in the alcohol beverage industry, like mixologist who can spread the message and be brand ambassadors
  • 18. Target Market and Positioning Currently the Boston Beer Company’s target market is woman and young people, and also, the sports fans. As an intrepreneur venture, we are going to take advantages by targeting the same market since there are massive existing recourses we could use. I’ll analyze each target in the following contents: 4. Sports Fans Sports culture is special and unique in America, and people are used to have a drink while watching the game. As we mentioned in the plan earlier, vodka companies, for example, the Tito’s, has chosen to promote their product to the sports fans by having partnerships with different sports teams and serving their vodka in the house. Boston Beer Company has already developed market in the similar but more bold way- Boston Beer Co., signed an eight- year deal with the team that will last through the 2025 season (Adams, 2017). By using the current recourses and element Boston Beer Company has gained from Red Sox, we could reach to our target market by: · Serving the product in the arena · Put the product advertisement in the signage on the court · Purchased the additional marketing rights from Red Sox to make our product the “official toddy palm of the Red Sox” 5. Woman Speaking of the reason of woman drinking wine, many people know that “beauty function” is one of the biggest reason and people are believe in the theory. The toddy palm has multiple functions and has many nutrition inside: it has huge percentage of protein, Vitamin C, Zinc, Iron, Vitamin B group. Palm could improve eyesight, reduce the risk of cardiovascular disease, prevent cancer, enhance the skin, and promote lactation. With massive goods inside, combine with appropriate advertisement and to choose a young beauty as the spokeswoman, and fruit taste natural flavor, we are confidence
  • 19. that we could reach to women successfully. 6. Young People According to a research on study the motivation of people to drink, Accordingly, four categories of drinking motives emerge as final antecedents of drinking behavior: · drinking to enhance positive mood or well-being · to obtain social rewards · to attenuate negative emotions · and to avoid social rejection Young people always seeking new adventures, they have desire to try new things and want to be cool, they have all the traits of the motivations listed above, which is a perfect target group of our product. Other than the motivations and natures, another benefit and reason to target young group is that young people’s financial level match our product price too: we are a branch of a regular beer company, not a high-end brand, we will make de retail price at medium level among the liquor market. Besides, as we mentioned in the analysis of Sake, it is popular because it can also be a material of cocktail and young people like it. Our product is able to make cocktails too, which makes young generation our perfect target. From the positioning, since our material is not high-end and brewing technology is not very difficult, also considering the income level of our target marketing, our product will be made for middle and middle-low class people, a little bit lower than regular vodka but the price could encourage people to accept it. Operational Plan Operational sections has two parts. Stage of development and production process section. Stage of development Production workflow: The conditions required for converting the palm sap to fermentation to alcohol are old and well known. The source of raw material is Palm sap from Africa/Asia/South America. The palm sap is collected in containers that are free of any microbes stored in cooling conditions (below 10 degrees) to slow the fermentation process. Once the raw material reaches
  • 20. the site of production unit in USA, it will be transferred into fermentation units and after the processing it is tested and further bottled. We would infuse 5 ingredients in our liquor for 2 months before bottling that will be in bottling units within MA location. We plan for 350 mL and 50 mL bottles to launch initially in the market. Each batch of the alcohol distilled to get high quality, to sell as premium spirit will be stored in French oak barrels for aging. Quality check and assurance will be done on the distilleries before bottling following the standards. Production Process Physical location will be the brewing units located at Massachusetts. Licensing of liquor and trade will be worked on before start of any production process. The new product, palm wine will be registered under a brand name. Angry Orchard Innovation Cider House located at the Orchard in Walden, New York, will be used for sample brewing and conduct market taste testing events initially. The Company’s Angry Orchard Innovation Cider House located at the Orchard in Walden, New York, opened in 2015 and its production is mainly for developing new types of innovative hard ciders and fermenting and packaging ciders for retail sales on site and in the local market area. For the palm wine packing we have a new bottle design and the label that will have palm tree symbols on it. Boston beer company sale to almost 350 wholesalers in USA and sale its products to few countries outside USA like Mexico, Australia, New Zealand, and Canada to mention some of the countries (2017 Annual Report). We would like to launch the palm wine in USA first to make it reach to the targeted customers. The logistics of Boston beer company is well operated already. The freshest beer program was a successful program with almost 17 distributors to be able to deliver products in shorten time frame between the time of ordered to shipment. Using this program, the palm wine will be shipped within less time to be able to be
  • 21. satisfaction customers and improve business. SWOT Analysis of Tilt Drink with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis SWOT Analysis of Palm Wine Palm Wine Drink Parent Company Boston Beer Company Category Beverages Sector Food and Beverages Unique Selling Point Premium palm-based spirit STP Segmentation People who prefer higher percentage of alcohol in their drinks Market Target Millennials with disposable income Product Positioning An exotic tropical drink, containing alcohol HR Plan HR plan is the fundamental of building a new business administration, by planning the arrangement into many details the exestuation process will be easier with suitable employees. 1. Recruiting Strategy Boston Beer Company have many lines of making beers, but the process of making Toddy Palm is different. However, the new process is new to everyone, the current employees should have more sense of making alcoholic products. Besides the core brewing technology employees, other positions do not require the special skills, we will recruit them from the outside because they won’t confuse the concept between the existing beers and Toddy Palm. 2. Employee Distribution on Different Levels 2018-19
  • 23. Partnership marketing Customer Service HR Distribution NO. 30 20 4 5 10 7 4 20 Experience (Years) 3-4 2 3 5 4 1 2-3 2 Total NO. 100 3. Employee Training Plan The training purpose is different for different positions. For most positions, they will spend 5 days to be familiar with the product line and 3 days to learn the market. However, because of the job required the employees to directly in touch with the product and create revenues with it, we have a special training program for Tech, Sales and Marketing people: · Day 1-3: Fly to India to understand the culture · Day 4-19: learn the tech of brewing and managing
  • 24. · Day 20-21: Learn the target marketing with Boston Beer Company seniors Financial Analysis Financial analysis refers to an assessment of many key factors which are quite important to the business or sub-business or project namely the viability, stability and profitability. It is also referred as “Account Financial Statement Analysis” or “Accounting Analysis or Analysis of Finance”. A financial analysis is performed to query stability of an entity, solvent, liquid or profitable enough to guarantee a monetary investment. For a startup brewing company a financial analyst conducts the analysis focusing on income statement, balance sheet and cash flow statement(Staff,2018). On the other hand, Pro forma Financial statement or simple Pro forma analysis is a statement based on certain assumptions and projections. It is used to prepare the projected balance sheets, income statements and cash flow statements. For example, it is used when a corporation want to see the effects of three different financing options(Averkamp,2016) In simple terms it is a a forecast usually created from pro-forma financial statements and forecasted using basic forecasting procedures. Revenues would provide initial groundwork for forecast and expenses and other items are calculated as a percentage of future sales. They usually reflect the predicted state of the business after a major transaction has occurred in the business(Staff,2018). For a Beer Brewing company the financial plan should have the following elements while designating a plan. This is the financial analysis plan adopted by “Sedibeng Breweries” and is most compatible with our Start Up Brewery Plan Assumptions: Every business should definitely have some assumptions to start off laying out a financial plan. We assume a strong economy without major recession and also there are no unforeseen changes in economic policy like taxes, restrictions and ingredients ban etc. to make our products obsolete. We need to designate the plan for a particular time period so that we
  • 25. don't have to worry about designing it again. Let's say that we are assuming for a time period of 3 years with a monthly analysis. Break Even Analysis: Based on the running costs that is a summation of costs to keep the business running, including salaries and wages, rent, water and electricity, insurance etc. we prepare our Break-Even Analysis. Many of the fixed costs are included in these costs. Our primary aim is to ensuring sales levels are running comfortably above break-even. The following chart describes our break even analysis. From the chart we can observe that fixed costs account to $41,040 per month and $93,000 is required to cover our costs. It would a take a few months to reach break-even through our business operation. Revenue Projections: For a brewing company there would be every need to identify the revenue projections. According to Projection Hub there would be four revenue line items which would be relevant and of good income scope for a new start up brewery. They are Keg Sales: Sales to Restaurants and Bars Growler Sales: Retails Sales to Walk-In Customers Bottle/Can Sales: Wholesale to Retail Stores Retail Sales : Walk in Beer Sales having Tasting Room or Restaurant(Unknown,2016) Project Profit and Loss: According to the Pro forma Analysis done by the “Sedibeng Breweries”, the projected profits if we manage to break even controlling incurring costs and sales with using marketing analytics then at the end of first year there would be a profit of 7.75%, second year would be 9.81% and third year would be 9.59%(Software,2015). Pro Forma Profit and Loss Pro Forma Profit and Loss
  • 26. Year 1 Year 2 Year 3 Sales $1,466,026 $1,612,629 $1,806,144 Direct Cost of Sales $820,975 $903,072 $1,011,441 Other $0 $0 $0 Total Cost of Sales $820,975 $903,072 $1,011,441 Gross Margin $645,051 $709,557 $794,703 Gross Margin % 44.00% 44.00% 44.00%
  • 27. Expenses Payroll $331,200 $331,200 $383,000 Sales and Marketing and Other Expenses $54,000 $56,700 $59,535 Depreciation $10,200 $10,200 $10,200 Leased Equipment $2,400 $2,520 $2,646 Utilities $4,800 $5,040 $5,292 Insurance $4,200 $4,410 $4,631 Rent $36,000 $37,800 $39,690 Payroll Taxes
  • 28. $49,680 $49,680 $57,450 Other $0 $0 $0 Total Operating Expenses $492,480 $497,550 $562,444 Profit Before Interest and Taxes $152,571 $212,007 $232,260 EBITDA $162,771 $222,207 $242,460 Interest Expense $2,000 $1,000 $0 Taxes Incurred $37,020 $52,752 $59,033
  • 29. Net Profit $113,552 $158,255 $173,227 Net Profit/Sales 7.75% 9.81% 9.59% Pro Forma Cash Flow Pro Forma Cash Flow Year 1 Year 2 Year 3 Cash Received Cash from Operations Cash Sales $366,507 $403,157
  • 30. $451,536 Cash from Receivables $821,689 $1,181,688 $1,317,934 Subtotal Cash from Operations $1,188,195 $1,584,846 $1,769,470 Additional Cash Received Sales Tax, VAT, HST/GST Received $0 $0 $0 New Current Borrowing $0 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $0 $0 $0 Sales of Other Current Assets $0 $0
  • 31. $0 Sales of Long-term Assets $0 $0 $0 New Investment Received $77,000 $0 $0 Subtotal Cash Received $1,265,195 $1,584,846 $1,769,470 Expenditures Year 1 Year 2 Year 3 Expenditures from Operations Cash Spending $331,200 $331,200 $383,000 Bill Payments $977,833 $1,138,456
  • 32. $1,238,371 Subtotal Spent on Operations $1,309,033 $1,469,656 $1,621,371 Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 Principal Repayment of Current Borrowing $0 $20,000 $0 Other Liabilities Principal Repayment $0 $0 $0 Long-term Liabilities Principal Repayment $0 $0 $0 Purchase Other Current Assets $0 $0 $0 Purchase Long-term Assets $0 $0
  • 33. $0 Dividends $0 $0 $0 Subtotal Cash Spent $1,309,033 $1,489,656 $1,621,371 Net Cash Flow ($43,838) $95,189 $148,099 Cash Balance $36,162 $131,351 $279,450 Pro Forma Balance Sheet Pro Forma Balance Sheet Year 1 Year 2 Year 3 Assets
  • 34. Current Assets Cash $36,162 $131,351 $279,450 Accounts Receivable $277,831 $305,614 $342,287 Inventory $123,414 $91,060 $103,841 Other Current Assets $0 $0 $0 Total Current Assets $437,407 $528,025 $725,579 Long-term Assets Long-term Assets
  • 35. $750,000 $750,000 $750,000 Accumulated Depreciation $10,200 $20,400 $30,600 Total Long-term Assets $739,800 $729,600 $719,400 Total Assets $1,177,207 $1,257,625 $1,444,979 Liabilities and Capital Year 1 Year 2 Year 3 Current Liabilities Accounts Payable $146,655 $88,818 $102,945 Current Borrowing
  • 36. $20,000 $0 $0 Other Current Liabilities $0 $0 $0 Subtotal Current Liabilities $166,655 $88,818 $102,945 Long-term Liabilities $0 $0 $0 Total Liabilities $166,655 $88,818 $102,945 Paid-in Capital $938,700 $938,700 $938,700 Retained Earnings ($41,700) $71,852 $230,107 Earnings
  • 37. $113,552 $158,255 $173,227 Total Capital $1,010,552 $1,168,807 $1,342,034 Total Liabilities and Capital $1,177,207 $1,257,625 $1,444,979 Net Worth $1,010,552 $1,168,807 $1,342,034 Ratio Analysis Ratio Analysis Year 1 Year 2 Year 3 Industry Profile Sales Growth n.a. 10.00% 12.00% 4.60%
  • 38. Percent of Total Assets Accounts Receivable 23.60% 24.30% 23.69% 5.30% Inventory 10.48% 7.24% 7.19% 0.70% Other Current Assets 0.00% 0.00% 0.00% 24.80% Total Current Assets 37.16% 41.99% 50.21% 30.80% Long-term Assets 62.84% 58.01% 49.79% 69.20% Total Assets
  • 39. 100.00% 100.00% 100.00% 100.00% Current Liabilities 14.16% 7.06% 7.12% 20.20% Long-term Liabilities 0.00% 0.00% 0.00% 30.70% Total Liabilities 14.16% 7.06% 7.12% 50.90% Net Worth 85.84% 92.94% 92.88% 49.10% Percent of Sales
  • 40. Sales 100.00% 100.00% 100.00% 100.00% Gross Margin 44.00% 44.00% 44.00% 49.60% Selling, General & Administrative Expenses 36.30% 34.19% 34.36% 26.10% Advertising Expenses 1.64% 1.56% 1.46% 2.50% Profit Before Interest and Taxes 10.41% 13.15% 12.86% 10.60% Main Ratios
  • 41. Current 2.62 5.95 7.05 1.67 Quick 1.88 4.92 6.04 1.42 Total Debt to Total Assets 14.16% 7.06% 7.12% 50.90% Pre-tax Return on Net Worth 14.90% 18.05% 17.31% 8.20% Pre-tax Return on Assets 12.79% 16.78% 16.07% 16.70% Additional Ratios Year 1 Year 2 Year 3
  • 42. Net Profit Margin 7.75% 9.81% 9.59% n.a Return on Equity 11.24% 13.54% 12.91% n.a Activity Ratios Accounts Receivable Turnover 3.96 3.96 3.96 n.a Collection Days 56 88 87 n.a Inventory Turnover 10.91 8.42 10.38 n.a
  • 43. Accounts Payable Turnover 7.67 12.17 12.17 n.a Payment Days 27 40 28 n.a Total Asset Turnover 1.25 1.28 1.25 n.a Debt Ratios Debt to Net Worth 0.16 0.08 0.08 n.a Current Liab. to Liab. 1.00 1.00 1.00 n.a
  • 44. Liquidity Ratios Net Working Capital $270,752 $439,207 $622,634 n.a Interest Coverage 76.29 212.01 0.00 n.a Additional Ratios Assets to Sales 0.80 0.78 0.80 n.a Current Debt/Total Assets 14%
  • 45. 7% 7% n.a Acid Test 0.22 1.48 2.71 n.a Sales/Net Worth 1.45 1.38 1.35 n.a Dividend Payout 0.00 0.00 0.00 n.a Proforma Sales Forecast Sales Forecast
  • 46. Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Sales X Beer 0% $29,399 $32,143 $38,415 $42,334 $46,254 $48,214 $54,878 $61,542
  • 48. $85,366 $94,077 $102,787 $107,142 $121,951 $136,759 $142,858 $162,021 $175,958 $200,348 Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10
  • 49. Month 11 Month 12 X Beer $16,463 $18,000 $21,512 $23,707 $25,902 $27,000 $30,732 $34,464 $36,000 $40,829 $44,341 $50,488 Y Beer $13,171 $14,400 $17,210 $18,966 $20,722 $21,600 $24,585 $27,570 $28,800 $32,664 $35,473 $40,390 Z Beer $6,951 $7,600 $9,083 $10,010
  • 50. $10,937 $11,400 $12,976 $14,551 $15,200 $17,239 $18,722 $21,317 Subtotal Direct Cost of Sales $36,585 $40,000 $47,805 $52,683 $57,561 $60,000 $68,293 $76,585 $80,000 $90,732 $98,536 $112,195 Risk Assessment Plan In general, for an industry or company or facility, Risk Assessment is determination of quantitative or qualitative estimate of risk related to a well-defined situation and a recognized threat. Risk assessment could be a general term used across several industries to work out the chance of loss on a selected plus, investment or loan. the method of assessing risk helps to work out if an investment is worth it, what steps could also be taken to mitigate risk and, through specific ratios, the top side reward compared to the danger profile. It determines what rate of come back is important to form a selected investment succeed. Business risks run an oversized cross-section including,
  • 51. however not restricted to: new competitors coming into the market, employee theft, information breaches, product remembers, operational, strategic and monetary risks, and even natural disaster risks. each business ought to have a method in situ to assess its current risk levels and place in place procedures to mitigate the worst attainable risks(Staff,2010). For our startup brewing company there would be probably three kinds of risks associated with it namely Financial Risk, Hazard Risk and Compliance Risks. Three of these risk in the long run determine the profits associated with the Brewing Company Financial Risk Assessment According to Lagunitas Brewing Company Case Study, there is a huge impact of collection days on the profits of breweries. To keep the collection between one to 30 days is the most optimal choice. Lagunitas Brewing Company couldn't keep the profits for years along because of the collection days was always above 60 days(Unknown,2016). The market and losses incurred because of misinterpretation of cash flow analysis are huge. You can sell millions of barrels every year and still would fall into negative cash flow. You would fall into negative cash flow while you cannot pay your monthly fixed costs while waiting for account receivables(Gulley,2012). Hazard Risk Assessment The production of brewage and spirits produces solutions of plant product, which is a extremely ignitable liquid in associate degree undiluted state and even in resolution. Raw materials for fermentation and mashing processes involve the handling, storage, and edge of wheat and barley, that generate flammable mud, whereas grain cookery and drying need large quantities of fuel, which is usually fossil fuel. Hence, all kinds of flammable materials (vapour, mud and gas)necessary for hearth and explosion ar gift in brewage and spirits producing facilities. According to majority breweries and distilleries in the UK, there are some simple steps to prevent and alleviate risks associated with hazardous materials. The following materials
  • 52. should be documented 1.Ignitable materials on brewery site 2.Hazardous Area Classification (HAC) for all areas 3.Assessment of ignition sources and their elimination in unsafe areas 4.Assessments for “equipment” (i.e. mechanical and electrical equipment) 5.If ignitable atmosphere(s) and or ignition sources cannot be eliminated 6.Explosion protection in conjunction with explosion isolation is critical. To show compliance with the law, for existing plant an acceptable hazard and risk assessment is critical, that ought to document the following: ignitable materials on every method needs a “Basis of Safety”, For each traditional and expected abnormal operation, which can be: a) rejection of ignitable atmospheres, and/or b) rejection of ignition sources, c) If a) and or b) aren't appropriate, then explosion protection with explosion isolation is needed. Corrective recommendations, if necessary, should be enclosed in every section by the assessor. However, in addition to this principles hazard risk assessment team should be on watch to prevent any hazard immediately. Compliance Risk Assessment To assess the compliance risk hiring a third party, like Safe Link Consulting etc., to perform the compliance risk assessment onsite during a distillery real time functioning is the best chance to evade any fines and bad reputation later. The Compliance Risk Assessment should cover federal and state Occupational Safety and Health Administration standards for breweries, FDA distillery compliance. The assessment is for varied examples like Quality System necessities, and any distillery / drinkable state legislative necessities. Time to Time Compliance Risk Assessment and marketing such strategy would put the startup in a good reputation within the consumer
  • 53. and retail companies(Laura,2017). Harvest Strategy A harvest strategy is a plan in which there is a reduction or a termination of investments in a product, product line, or line of business, to reap the maximum profits. It is typically employed toward the end of a product's lifecycle when it is determined that further investment will no longer boost product revenue. A harvest strategy may involve the gradual elimination of a product or product line when technological advances render the product or line obsolete(Staff,2018). Harvest Strategy for Long Term Business Plan For our company the harvest strategies would be let’s consider the plan of “Billow Breweries” partially which referred the harvest strategies in three main steps 1.Releasing and marketing a signature brew beers and drinks 2.Making a Fan Base through Rewards Membership 3.Accepting any collaborations with the larger brewing companies like Sam Adams, Anheuser-Busch, or SABMiller. By using these harvest strategies, the startup company would never run out of profits to losses. With the current trends of Beer Behemoths acquiring individual startups, there’s a huge chance for every startup beer companies to enjoy a huge success in long term business(Staff,2018). Milestone Plan 1. Sourcing: To identify the sources where the palm trees are, and if we can elicit the palm wine from those trees. Usually the tropical regions do have palm trees and hence got to keep the key source as one of the regions that have the palm trees. Countries in Asia, Africa, Caribbean and South America all have palm trees and we could definitely source the raw material from these regions. 2. Distillation: The distillation process is done in the Boston brewing company, the machinery that is not being used will be put into use to perform the distillation process of the palm tree wine. This process can take up to a long period of time. The distillation process makes the drink stronger than it originally is
  • 54. when extracted from the trees. 3. Packaging: The packaging process is different for The Boston Tea from the parent Boston brewing company, the bottling is is done differently for this drink and the shape of the bottle is different from the default bottles made by the Boston Brewing Company for its beers and ciders. 4. Distribution: most of Company's sales are made to a network of roughly 350 wholesalers in the United States and to a system of remote wholesalers, shippers or different offices (altogether alluded to as "Merchants"). These Distributors, thus, pitch the items to retailers, for example, bars, eateries, basic need stores, comfort stores, bundle stores, stadiums and other retail outlets, where the items are sold to consumers, and in some constrained conditions to parties who go about as sub-merchants 5. Supply: The cycle and process of making the product available to the consumer does not end at distribution. The process keeps continuing and as the product reaches out to the consumers and needs more supply due to the demand the whole process and steps involved in the milestones are involved again. Hence the process is repetitive. Reference Adams, D. (2017, December 12). So long, Bud — Sam Adams is the new official beer of the Red Sox. Retrieved from Boston Globe: https://www.bostonglobe.com/business/2017/12/12/long- bud-sam-adams-new-official-beer-red- sox/1R4vjX9rKhhI9fK7WiAcKP/story.html Argersinger, M. (2010). Stock Advisor Buy List Boston Beer Co. Retrieved from https://www.fool.com/investing/general/2010/07/29/stock- advisor-buy-list-boston-beer-co.aspx Arthur, R. (2016). From Cocktails to Craft: What Do
  • 55. Millennials want In Alcoholic Beverages? Retrieved from https://www.beveragedaily.com/Article/2016/01/19/From- cocktails-to-craft-What-do-millennials-want-in-alcoholic- beverages Boston Beer Company, Inc. (2018). Retrieved from https://www.reuters.com/finance/stocks/companyProfile/SAMCr aft Spirits Market Analysis By Distiller Size (Large, Medium, Small), By Product (Whiskey, Vodka, Gin, Rum, Brandy, Liqueur), By Region (North America, Europe, Asia Pacific, South America, MEA), And Segment Forecasts, 2018 – 2025. (2017). Retrieved from https://www.grandviewresearch.com/industry-analysis/craft- spirits-market Chang, A. (2015, March 3). The Indispensable Guide to Sake and Japanese Culture. Retrieved from Talkativeman: http://www.talkativeman.com/sake-and-japanese-culture/ Dieterle, J.(October 19, 2017). Moonshine makes a comeback in Virginia. And This time it is Legal. Retrieved on June 23, 2018 from https://www.npr.org/sections/thesalt/2017/10/19/558324004/mo onshine-makes-a-comeback-in-virginia-and-this-time-its-legal. Foley, R. (2006). Bartending For Dummies. John Wiley & Sons. Guidelines for Establishing Ethanol Plant Quality Assurance and Quality Control Programs (2014). Retrieved from http://www.ethanolrfa.org/wp-content/uploads/2015/05/RFA- QA-QC-Guideline-Sept-2014.pdf 2017 Annual Report. Retrieved from https://www.bostonbeer.com/static-files/f6821bd5-6abb-4cf5- aea6-46c831558552 Sandra C. Jones, L. P. (2009, October 26). ‘Most men drink… especially like when they play sports’ – alcohol advertising during sporting broadcasts and the potential impact on child audiences. Retrieved from Wiley Online Library: https://onlinelibrary.wiley.com/doi/full/10.1002/pa.340 The Boston Beer Company, Inc (2018). Boston Beer Company Annual Report (Retrieved on June 23, 2018 from
  • 56. https://www.bostonbeer.com/annual-reports. Wolf, J. (May, 20, 2017). From Moonshine to modern craft: The Story of Tennessee distilling. Retrived in June 6, 2018 from https://www.tennessean.com/story/entertainment/dining/2017/05 /20/moonshine-modern-craft-story-tennessee- brewing/100776186/ Rubic_Print_FormatCourse CodeClass CodeAssignment TitleTotal PointsNRS-429VNNRS-429VN-O501Family Assessment Part II150.0CriteriaPercentageUnsatisfactory (0.00%)Less than Satisfactory (75.00%)Satisfactory (79.00%)Good (89.00%)Excellent (100.00%)CommentsPoints EarnedContent80.0%SDOH Affecting Family and Family Health Status20.0%SDOH affecting family health status, and the direct impact to the family, are not presented.SDOH affecting family health status are partially presented. SDOH listed are not relevant to the family. The direct impact to the family, and why the factors are prevalent to the family, are unclear. There are inaccuracies.Key SDOH affecting family health status are summarized. The SDOH identified are relevant to the family. The direct impact to the family, and why the factors are prevalent to the family, are generally discussed. More support or rationale is needed in some areas.The overall SDOH affecting family health status are accurately identified and described. The SDOH identified are relevant to the family. The direct impact to the family, and why the factors are prevalent to the family, are discussed. The SDOH directly affecting family health status are relevant, accurately identified and thoroughly described. The direct impact to the family, and why the factors are prevalent to the family, are discussed in detail. The discussion is well supported and illustrates insight into SDOH and their effect on family health status.Age-Appropriate Screening
  • 57. Recommendations20.0%Age-appropriate screenings are not presented.Screenings are presented for some family members. The screenings are not age appropriate. Screenings are not relevant to the information gathered through family health assessment. Screenings are presented for each family member. Screenings are generally age appropriate, but entirely not relevant based on the information gathered through family health assessment. More rationale and support is required.Screenings presented for each family member are age appropriate. Screenings are relevant and based on the information gathered through family health assessment. Some minor rationale or support is needed.Screenings presented for each family member are age appropriate and highly relevant. Screenings correlate to the information gathered through family health assessment. Strong rationale and support is presented.Assessment of Health Model20.0%A health model to assist in the creation of a plan of action is not presented. The model chosen is not a health model.A health model is selected to assist in creating a plan of action. The description of the model is incomplete. It is unclear why the chosen model is best for this family.A health model is selected and described. A summary of how the model will assist in creating a plan of action is presented. A general overview for why it is best for this family is provided. More rationale and support is required.A health model is selected and described. A discussion of how the model will assist in creating a plan of action is presented. Reasons for why it is best for this family are provided. Some rationale or support is needed.A health model is selected and thoroughly described. A detailed discussion of how the model will assist in creating a plan of action is presented. Reasons for why it is best for this family are clearly outlined. Strong rationale and support are provided to support reasoning.Application of Health Model20.0%Family-centered health promotion using selected health model is omitted. Steps for a family-centered health promotion are partially presented. The health promotion is not based on the health model.
  • 58. Significant aspects are missing. There are major inaccuracies.The health model is used to create a general family-centered health promotion. The steps to achieve the desired outcome require more detail to illustrate a clear plan of action. A general plan for communication with the family is presented. More rationale and support is required.The health model is used to create a relevant family-centered health promotion. The steps to achieve the desired outcome are illustrated. Strategies for communication with the family are presented.The health model is used to create a relevant and viable family-centered health promotion. The steps to achieve the desired outcome are described in detail. Appropriate strategies for communication with the family are clearly presented. The health promotion is well-designed and demonstrates an ability to assimilate findings and appropriately apply theoretical knowledge to achieve desired outcomes.Organization and Effectiveness 15.0%Thesis Development and Purpose5.0%Paper lacks any discernible overall purpose or organizing claim.Thesis is insufficiently developed or vague. Purpose is not clear.Thesis is apparent and appropriate to purpose.Thesis is clear and forecasts the development of the paper. Thesis is descriptive and reflective of the arguments and appropriate to the purpose.Thesis is comprehensive and contains the essence of the paper. Thesis statement makes the purpose of the paper clear.Argument Logic and Construction5.0%Statement of purpose is not justified by the conclusion. The conclusion does not support the claim made. Argument is incoherent and uses noncredible sources.Sufficient justification of claims is lacking. Argument lacks consistent unity. There are obvious flaws in the logic. Some sources have questionable credibility.Argument is orderly, but may have a few inconsistencies. The argument presents minimal justification of claims. Argument logically, but not thoroughly, supports the purpose. Sources used are credible. Introduction and conclusion bracket the thesis. Argument shows logical progressions. Techniques of
  • 59. argumentation are evident. There is a smooth progression of claims from introduction to conclusion. Most sources are authoritative.Clear and convincing argument that presents a persuasive claim in a distinctive and compelling manner. All sources are authoritative.Mechanics of Writing (includes spelling, punctuation, grammar, language use)5.0%Surface errors are pervasive enough that they impede communication of meaning. Inappropriate word choice or sentence construction is used.Frequent and repetitive mechanical errors distract the reader. Inconsistencies in language choice (register), sentence structure, or word choice are present.Some mechanical errors or typos are present, but they are not overly distracting to the reader. Correct sentence structure and audience-appropriate language are used. Prose is largely free of mechanical errors, although a few may be present. A variety of sentence structures and effective figures of speech are used. Writer is clearly in command of standard, written, academic English.Format5.0%Paper Format (use of appropriate style for the major and assignment)2.0%Template is not used appropriately or documentation format is rarely followed correctly.Template is used, but some elements are missing or mistaken; lack of control with formatting is apparent.Template is used, and formatting is correct, although some minor errors may be present. Template is fully used; There are virtually no errors in formatting style.All format elements are correct. Documentation of Sources (citations, footnotes, references, bibliography, etc., as appropriate to assignment and style)3.0%Sources are not documented.Documentation of sources is inconsistent or incorrect, as appropriate to assignment and style, with numerous formatting errors.Sources are documented, as appropriate to assignment and style, although some formatting errors may be present.Sources are documented, as appropriate to assignment and style, and format is mostly correct. Sources are completely and correctly documented, as appropriate to assignment and style, and format is free of error.Total Weightage100%
  • 60. Marketing Plan 1 Patel Brothers Delivery Service 2 Patel Brothers Delivery Services -Marketing Plan Group 7 Kadam Dani Venkatesh karri Sri Sahithi Andal Motamarri Koushik Kumar Pidathla University of Cumberland’s Executive Summary South Asian people love food, especially food that makes them feel home, but living in the US doesn’t always provide authentic home taste, and people living in the Suburbs where then must travel 10 to 20 miles to go to a good Asian restaurant. Our service helps people to get the food to their door by simply ordering online. Patel Brothers are known for fresh vegetables and authentic home groceries provider along with that they make much food in the house and sell in their retail stores, we want to expand this to provide more food varieties delivered to the door.About the company Patel brothers’ headquarters is in Hanover Park, Illinois. Patel Brothers have a revenue of $150M, and 250 employees, their main competitors are shop Indian, Vedicpro Usa and Grocerybabu. The Patel Brothers have always been a pioneer in the South Asian commodities market; currently, it serves a vast range of demographics from Afghanistan, Nepal, Pakistan to Bangladesh India, and Sri Lankan People living in various states all around the USA. Patel Brothers are known for fresh vegetables and authentic home groceries provider. Marketing Stragey Marketing strategy for a delivery service industry should
  • 61. primarily focus on having a good delivery services and good customer experience. Since the target audience is already defined identifying the geographic location of the target audience will help to provide services and open new facilities if needed. As the target group is South Asians who want to buy South Asian groceries and vegetables, we will identify population of South Asian groups by metropolitan area. “The growth rate for the South Asian population greatly exceeds that of the Asian American population as a whole (43%), as well as that of the Hispanic American population (43%), and non- Hispanic whites (1.2%)” (Asian American Federation, 2012). Patel Brothers delivery system both online and offline marketing campaigns to promote the service. Social networking platforms like Facebook, Twitter, Pinterest and Instagram will be used to promote the service. Special campaigns like promotion walks will be held in the identified geographic location to market the service to the target audience. As Costumers service is the main goal of the company a dedicated Facebook, Twitter and Instagram pages will be created to engage with customers and to instantly solve any issues with the delivery