Company, Market, and Consumer Analyses along with Current and Recommended Marketing Strategies

1. Business Analysis & Strategic Plan
Presented by
ABC Marketing I nc .
Ramon Hernandez
Laurern Gruenstein
Junior Villaserar
Juanita Williams
J a s o n J e n s o n
T i n g - H s i n H s u

2. Date: May 20, 2008
To Mr. Burke,
Twenty years has gone fast since the first Gordon Biersch Brew-
ery Restaurant was established. As your marketing consultant
team, we know your business will embrace many more years of
success by giving countless excellent dining experiences to your
current and future customers.
Due to changes in the economy, technology, and consumer behav-
ior, your business will encounter many challenges.
Competition has become more severe and consumers are becom-
ing more demanding. To keep up the pace of this fast changing
society, we recommend several modifications and adjustments to
your current marketing strategy. Along with pleasing your loyal
customers, these changes will bring in new customers, give them
an excellent experience, and make them loyal to your brand as
well.
Thank you for giving us the opportunity to share in your busi-
ness.
Sincerely,
Ramon Hernandez
CEO, ABC Marketing Inc.
RamonKHernandez@gmail.com
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3. Ta b l e o f Contents
Executive Summary.........................................................i
Table of Contents..............................................................ii
Current Marketing Strategy...............................................9
Company Analysis............................................................1 Objective
History & Background Target Market
Product/Service Description Rationale
Food and Beverages Positioning
Restaurant Design Marketing Mix…………………………………………….10
Features & Benefits.........................................................2 Exhibits................................................................................11
Market Analysis................................................................3 Recommended Marketing Strategy……………...........12
Situation Analysis New Objective
Business Environment and Trends...............................4 New Target Market
Competitive Analysis.......................................................5 Rationale
SWOT Analysis...............................................................6 Positioning...........................................................................13
Marketing Mix.............................................................. 13, 14
Consumer Analysis...........................................................7 New Exhibits..............................................................15,16,17
Demographics
Attitude Reference…..................................................…………...........18
Behavior
Heavy vs. Light Users
Consumer Decision Making Process.............................. 8
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4. Company Analysis
History & Background f ee.
• Gordon Biersch (GB) is an American brewery founded by • Wine offerings include over 35 selections of red, white and
Dan Gordon and Dean Biersch. sparkling wines (both domestic and imported).
• They opened their first GB Brewery Restaurant in Palo Alto,
California in July 1988. Restaurant Design
• In 1997, with the goal of producing the most authentic Ger • European-style brick and stone passageways, which lead
man-style lagers outside of Germany, they built an 114,000 guests from the main entrance to the courtyard restaurant.
square feet brewing facility in San Jose, California. • Reminiscent of European beer gardens.
• GB Brewery Restaurant now has 27 locations in 17 states. • Neutral colors and dark cherry wood tones in the restaurant.
• Annual Sales: $97 M. • Very inviting for social gatherings casually sophisticated
• Employees: 2,116. dining occasions, and private dining events.
• Each brewery is custom designed to emphasize ease of con-
Product & Service Description trol, use, and flexibility.
• The Company has developed its menus to offer the guests
high quality and freshly prepared food and premium bever
ages.
• Over 90% of dishes, including all desserts, salad dressings
and sauces, are made from scratch.
• GBR’s entrées appeal to a broad audience and include a fine
selection of USDA choice steaks, fresh fish, chicken, pasta,
stir fry, gourmet pizzas, deluxe burgers and sandwiches.
• The Company modifies its menu items periodically, gener
ally impacting 20% of the offerings per change.
• GBR’s breweries produce fresh award winning beer, and
serves only premium spirits, fresh squeezed juices and cof-
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5. Features
• Gordon Biersch utilizes the Reinheitsgebot method of brewing, which is a Ger
man Purity Law that dates back to 1516 and states that beer can only be made
with three ingredients: Barley, Hops, and Water. Since then, yeast has been add-
ed to that mix.
• Gordon Biersch brews mostly lagers. Lagers use bottom fermenting yeasts
and are stored for about five weeks after brewing, which results in a crisper,
smoother flavor.
• Beer flavors include Hefenweizen, Pilsner, Märzan, Schwarzbier, Blonde Bock,
and Seasonal Beer.
• Over 90% of dishes are made from scratch.
• USDA choice steaks, fresh fish, chicken, pasta, stir fry, gourmet pizzas, delux
burgers, and sandwiches.
• A constantly changing menu.
• Live bands after 8:00pm at certain locations.
Benefits
• Superior freshly brewed beer.
• High quality food made from scratch.
• Seasonal menus, daily specials, and frequent menu changes.
• Attentive friendly service.
• A fun atmosphere.
• A place to converse with peers.
• Gives back to the community and environment.
Corporate social responsibility.
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6. Market Analysis
Situation Analysis
Business Environment
• Restaurant Industry Growth Trend
The National Restaurant Association estimated that the U.S. restaurant industry would experience its fifth consecutive year
of real sales growth during 2006. Total sales are expected to be approximately $511 billion in the nation’s approximately
925,000 restaurants. Sales in the full-service segment of the restaurant industry have grown by approximately 5.1% per
year between 2002 and 2005, and are expected to reach $173 billion in 2006.
Trends
• Restaurant Trends estimates that total casual dining chain restaurants grew at an average rate of 5.1% from 2001 to 2004.
According to data obtained from the International Council of Shopping Centers, concurrent with the steady growth of ca-
sual dining restaurants, there has been an increased focus on restaurant growth in mixed-use developments and lifestyle
centers. Mixed-use and lifestyle centers are expected to be a meaningful growth vehicle for developers and the next stage
of evolution for traditional enclosed malls. These centers seek to provide consumers with an area to live, work and play in
one location and therefore each new unit represents attractive real estate opportunities for full-service restaurants.
The National Restaurant Association estimates that consumer spending on food prepared outside of the home as a percent
age of total food expenditures has increased from 25.0% in 1955 to 47.5% in 2005. By 2010, food prepared outside the
home is projected to account for 53.0% of total food expenditures. It is believed that the growth in purchases of food-
away-from-home in recent times is attributable to, among other things, demographic, economic and lifestyle trends, includ-
ing the rise in the number of women in the workplace, an increase in dual-income families, the aging of the U.S. popula-
tion, an increased willingness by consumers to pay for the convenience of meals prepared outside their homes, the decline
in the relative cost of a restaurant meal compared to a home-cooked meal and the emergence of restaurants as “third place”
destinations.
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7. • Market value of casual dining restaurants in the US in 2000 was $379 billion and is expected to grow
to $558.3 billion for 2008.
Eating places…………………………...376.7
Drinking places…...…………………..…16.5
Managed services......................................38.3
Hotel/Motel Restaurants.……………......27.6
Retail, Vending, Recreation, Mobile…....51.4
Other………………………………….... 47.8
Total $558.3 (in billions)
• “Eating Places” segment shows the highest vitality because it amounts to most commercial revenue.
Also, three quarters of customers are seated in the dining section. Competing in “Drinking Places” puts
GBR at odds with the Bar Market. Sales at full service restaurants are expected to rise 4.3 percent year-
over-year.
• Trends of significantly low indexes in full service restaurants sales caused by:
• High energy costs including gas prices.
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8. Competitive Analysis
Primary Competition Secondary Competition
• Nationwide restaurants that specialize in micro brewed beer (2006 • Fast-Food, Drive-Thru, grocery stores, and home cooking.
Annual Revenue).
• Bars and night clubs.
BJ’s Restaurant ($316.1m)
Metromedia Restaurant Group ($316.1m) • Gas, insurance premiums, and property taxes.
Rock Bottom Restaurants ($283m).
Slowing economy limits spending on non-essentials.
• Regional competitors in full service segment near GBR locations
that microbrew beer.
Examples (Near San Jose, CA)
Tied House
Sonoma Chicken Coop
Steelhead Brewery/Restaurant
• Other full service restaurants.
PF Chang’s
Cheesecake Factory
Hooter’s
Chili’s
T.G.I Friday’s
Red Robin
Chevy’s.
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9. SWOT Analysis
Strengths Weaknesses Opportunities Threats
• Microbrew beer taste and • Demand depends on cosum- • Tour of the of the brewing •Slowing economy limits
following. er income. process. spending on non- essentials.
• Lucrative industry. • Since this industry is so com- Gas prices, property taxes,
• Not a highly recognized
petitive, there is a high fail-
• Customer loyalty brand, so each location gives and insurance premiums.
ure rate.
• Nordic atmosphere. a local, non-franchise appeal. • Election year creates uncer
• Difficult to erase perceived
• Up-to-date music. image of their restaurant in tainty in future economy.
• Expansion rate is high.
• Staff has sex appeal. the mind of the customer. • Increasing fear of public pla-
• Opportunities for growth in
• GBR popularity growing due • Must differentiate restaurant es due to terrorism.
states without GBRs.
to beer bottling and distribu- from competition. • To be perceived in the same
• Experience is subsequent to • Cater to current health trends
tion. category as Red Robin.
uncontrollable factors. by creating healthier food
• Strong corporate manage- • Food contamination from
ment from successful parent • Rising labor costs. choices. suppliers.
• Need efficient use of low- • Create GB bars, with limited
company. • Irregular shortages of sea
cost labor. food options.
• They suggest beers to pair food.
• Service varies.
with your meal, which con • To be put in the same Fluctuates price and avail-
• Parking.
sumers enjoy. • Only have 30 stores, can’t category with the Grill. ability of seafood in store.
• USP- freshly brewed beer. compete nationally. • Increased popularity of at-
• Considered expensive food. home gourmet cooking.
• Increased work hours duplets
free time available to eat at
sit-down restaurants.
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10. Consumer Analysis
DEMOGRAPHICS ATTITUDES BEHAVIOR USAGE
(sample size 3492) (heavy users vs. light users)
• 25 to 49 years old. (69% of • Top two positive GBR attri- • Brand Committed: Many would Heavy users
sample: 25-34 30%, 35-49 butes are friendly service and not go anywhere else if this res- • Account for a quarter of the con-
39%) beer taste. taurant were closed today. sumers.
• Not significant on gender: • Customers prefer GBR to com- • 16% of customers frequent GBR • They will frequent GBR more
Males:Females :: 56:44. petitors for its stellar beer taste once a week or more. than once a month.
• Mainly Caucasian ethnicity. and beer value. • Most popular occasions include • They will recommend GBR to
(78%) • Customers prefer competitors business lunches or dinners, others more than once a month.
• Average Household size of 2.6 to GBR for menu variety and relaxing meals with spouse/boy • Their favorite things are the mi-
• Mainly professional and Ex food quality. friend/girlfriend, and fun nights/ crobrew beer and food.
ecutive/ Managerial occupation. • Main reasons for visiting GBR: Happy Hours with friends. Light users
(51%) the food/menu, the microbrew • Many customers come from their • Account for a quarter of the con-
• Household income of $50K+. beer, and closeness to work. local residence (25%) or work sumers.
(82%) (46%), and then they go to work • Most of them will frequent GBR
or home. once every 1-3 months.
• Most parties are 2 people. • They will recommend GBR to
others once every 1-3 months.
• Their favorite things are the atmo
sphere and the microbrew beer.
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11. 1. Problem Recognition 2. Information Search 3. Consumer Evaluation
Target market of Gordon Biersch Consumers evaluate the different brands
Consumers look for a casual din-
seek out their information mainly in this product category by satisfaction
ing place to eat, hang out, have fun,
through word of mouth advertising factors:
and relax.
and through online research. Con-
sumers of Gordon Biersch are tech • Friendly service • Prompt speed of
savvy and are social. • Beer taste service
• Pleasantly comfort- • Portion sizes
able atmosphere • Food quality
• Clean, well main • Beer value
tained facilities • Menu variety
• Fresh hot food • Value
• Price
4. Outlet Selection & Purchase 5. Post Purchase Evaluation
They recommend GBR to friends,
They frequent this restaurant be- family, coworkers, and strangers by
cause the atmosphere is friendly,
word of mouth and through the use
comfortable and inviting. The staff
of social websites (i.e. citysearch.
is quick on their feet and they thrive
in the fast paced environment. com, yelp.com, etc).
Experience is subjective to uncon-
trollable factors (i.e. getting into an
argument).
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12. Current Marketing Strategy
Rationale:
Objective: GBR currently markets their restaurants largely males and fe-
males in the corporate world either married or divorced that
• To expand the customer profile. usually come in for casual business lunches or dinners. They
• To target heavy users (2x/mo) and loyal customers. have stable incomes, so price is not a big factor. These custom-
• To improve the existing customers’ dining experience. ers are the most loyal and contribute to most of GBR’s sales.
• To create trend and fashion in new restaurant They recognize GBR as a neighborhood gathering place or a
experience. place to frequent after work. Marketing to this segment is not
• To become the model and leader in casual dining very costly at all because they already know about the res-
category. taurant and the company does not have to spend as much on
promos to draw them in.
Target Market:
• 35-49 years old
• White-collar, corporate professionals. Positioning
• Ethnicity: Diverse
• Men and women GBR positions itself to be a “non-national brand”; they are
• Life cycle: Single, married, and divorced strategically located in urban areas, neighborhoods, airports,
• Household income: $100K-$150K+ and downtown locations. They emphasize “Every Guest, Ev-
ery Time,” which is the motto of GBR. It serves as a constant
reminder of where the business focus should be.
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13. Marketing Mix
Product
High quality freshly prepared food and premium beverages • Sign up online (exhibit B)—this promotion is where customers will
Inviting and fun atmosphere receive welcome and birthday E-Gifts, news about the latest happen-
Microbrewery specializing in superior ales and lagers. ings and events, invitations to tapping parties and brewer dinners,
and special offers exclusive to GB Online Members.
Price • GBR postcards (exhibit C) where people can send them out to
Expensive. Premium prices suitable for middle-upper class and friends or family, which creates positive WOM for the restaurant.
beyond. • 20 years and 20 prizes celebration (exhibit C)—this promo is cel-
ebrating GBR anniversary of being in business for 20 years by giv-
Place ing out 20 various prizes ranging from happy hour for a party of 15,
GBR currently has 27 locations in 17 different states. Located in GB hat and visor, to the grand prize of a 7-day trip with parties in
urban areas, neighborhoods, airports, and downtowns. the 3 Bay Area locations including Happy Hour at GB and a trip to a
major league baseball game.
Promotion
• GBR’s currently has a few local spots and print ads.
• Passport Rewards program (exhibit A)—a rewards program for
GBR’s customers to sign up for a reward membership card which
they can accrue points. Currently it is $1 per point received and there
are certain rewards that are given for points reached. For example,
if you accrue 350 points the reward for this is a $25 gift card for
GBR, 500 points is a $50 gift card, and 750 points is an $80 gift
card. For frequent users of the card there are points after that where
you can receive fantasy vacations and also participation in the Great
American Beer Festival.
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14. Exhibits
Exhibit B:
Sign-up Online
Exhibit A:
Reward Passport
Exhibit C:
GBR Postcard
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15. Recommend Marketing Strategy
Rationale:
• Market to women because where there are women, men will follow.
Luring more female customers to the GBR will attract men who will also
dine and drink.
New Objective: • Concentrate on younger demographics and gain new loyal customers from
• Expand current customer profile. here. That way, GBR will get a new loyal clientele base while older demo-
• To target light users or prospective customers. graphic discontinues to go out to dine. The more narrow a target niche, the
• To create buzz within recommended niche target adence. more the message can be catered, and the more it will resonate with this
• To bring in new loyal customers. target market.
• Remain consistent with current message. • GBR cannot market their beer to those less than 21 years old. Since beer is
a main component that sets GBR apart from their competitors, it seems
New Target Market: unlikely to place effort trying to attract this younger age group.
• Marketing to new customers over 49 years old would not be beneficial
• 25-34 years old. bcause those in this demographic are beginning to retire and live on tight
• White collar, young professionals. social security. Also, they are less likely to visit a loud and busy restaurant
• Ethnicity: Open regularly than those who are younger. It is not cost effective to market
• Women. them because they are set in their ways, and probably would not change
• Life cycle: single, in relationship, and newly-wed. their loyalty from another store, or GBR if it’s their favorite restaurant.
• Current consumer base is mainly Caucasian. Opening the message to try
• Household income: $50K+$100K.
and reach all ethnicities will increase the population within out target
market.
• Someone who aspires to be upper class will shop here to be associated
with high status. White collar professionals are more likely to fit this bill
than blue collar factory workers.
12

16. Positioning
Aim at the younger generations who are heavy internet users and will spread the word by
world wide web. The food menu will be changed to a healthier American food, implanting
“organic” and “go green” concept. Recyclable “to go” boxes will also be introduced.
Concentrate on this new target market by improving menu items. Want women. Women don’t
go to GBR for the beer, they go to socialize. Therefore improve atmosphere and menu.
Marketing Mix
Product Price Place
• Food: New menu with even higher quality • Competitive price. • Increase distribution of bear within local
food: healthier, organic, fresh ingredients. • Extended happy hour. markets in hopes of promoting GBR. These
• Beer: Cater to women with new fresh • Promotional discounts. GBR servers should include local grocery stores, bars, and res-
brewed beer specially customized for female just give the Passport card to every din- taurants.
customers: strawberry beer and more light ing client, without making them invest • Continue to open GBRs in urban locations
beers. $20. This will make customers choose and high traffic hot spots. These include
• Atmosphere: Upper class social status GBR over another restaurant when posed center of towns/cities and neighborhoods.
appeal. Maintain the current high society with indecision on where to go. Servers • Continue to open stores far apart from each
appeal, classy environment to create an should remind customers every time to other so as not to be seen as a franchise.
opportunity for middle market consum use the card. Just by pushing it, they are Want to be seen as a neighborhood restau-
ers to feel like they moved up a social creating awareness. rant/local hangout.
class.Offer wireless internet (at the bar,
dining tables, and patio).
• Change the mood of the restaurant for late
night business (after 10pm).
Promotion->
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17. Promotion
• Extended Happy Hour. Quicker response time after signing up for mail-in offers.
Add two hours past their current Happy Hours. • Offer high-end catering for private parties and company meals.
Beer, appetizers, and meals.
• Singles night.
• Contests to get people involved with creations of new beer flavors/
Once a month. Half-off drinks for ladies. new labels.
Section off an area for dancing.
Top five selected home brews will go head-to-
• Posters, Internet banners, key word search, local TV spots, billboards, head in competition.
bus wraps, taxi ads, and display ads in local newspapers and maga-
zines. Each will be provided with a professional,
home-brewing kit.
Emphasize food and social atmosphere.
They will meet at the Palo Alto restaurant and the winners
• Internet ads in facebook, myspace, and other social networks. will be chosen.
• Offer beer/wine tasting nights to young professionals. New beer label/ flavor created (yearly cycle).
Host events at local golf resorts/country clubs. • Enhance the quality of service by enforcing employee conduct/
Decorated canopies with live relaxing music. rules.
• PR (organic beer, go green beer concept, recyclable “to go” boxes). Monthly performance evaluations.
• Personal Selling (bartender, waiter/waitress). • Radio is not the way to go because it is not a visual medium. The
benefits o fun atmosphere and great food cannot be shown
Free tastes of menu items to staff. through words alone.
• Provide GBR coupons and calendars at local museums, exhibits, art • No guerilla marketing because GBR is marketed as a classy estab-
galleries, film festivals, and sporting arenas. lishment. Guerilla marketing is anti-establishment, while GBR is
trying to be seen as a neighborhood restaurant.
• Improve efforts to inform customers of special offers and incentives.
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18. New Exhibits
Poster (a): Poster (b):
15

19. New Exhibits
Print ad (a): Print ad (b):
16

20. New Exhibits
30 seconds commercial:
http://www.youtube.com/watch?v=Bgn5Z5LitW0
17

21. References
http://www.gordonbiersch.com/restaurants/index.php?pg=about
“The food here is a safe bet for a relaxed din-
http://www.gordonbierschgroup.com/index.php?pg=profile ing experience. This is the type of place you can
go for a low-key friendly dinner/drinks, a work
http://www.hoovers.com/gordon-biersch/--ID__122011--/free-co-factsheet.xhtml
event, sports watching session, or just because
http://en.wikipedia.org/wiki/Gordon_Biersch_Brewing_Company you have a craving for some garlic fries and a
nice rare hamburger without feeling guilty about
http://dictionary.reference.com/browse/nordic
it.” ~ Laura G., San Francisco
http://www.123jump.com/ipo/ipo_view/BIER/Gordon+Biersch+Brewery+Restaurant
http://0-galenet.galegroup.com.mill1.sjlibrary.org/servlet/BCRC?rsic=PK&rcp=CO&
vrsn=162&locID=sjpllib&srchtp=cmp&cc=1&c=1&mode=c&ste=60&tbst=tsCM&t
ab=1&ccmp=Gordon+Biersch+Brewery+Restaurant+Group+Inc.&tcp=Gordon+Bier
sch+Brewery+Restaurant+Group+Inc.%2C&n=25&bConts=777&ses=1
http://0-galenet.galegroup.com.mill1.sjlibrary.org/servlet/BCRC?vrsn=162&locID=sj
pllib&srchtp=glbc&cc=2&c=2&mode=c&ste=60&tab=1&tbst=tsCM&ccmp=Big+R
iver+Breweries+Inc.&mst=Gordon+Biersch+&docNum=DC925485&bConts=3
http://proquest.umi.com.libaccess.sjlibrary.org/pqdweb?did=46212704&Fmt=4&VIn
st=PROD&VType=PQD&RQT=309&VName=PQD&
http://web.ebscohost.com.libaccess.sjlibrary.org/ehost/detail?vid=2&hid=13&sid=40
0e9588-5d51-4419-940e-bc65edaf47d1%40sessionmgr3
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