3. Based on the research we have conducted, our recommendation centers
on visits catering to college alumni groups. This recommendation can be
extremely helpful for Smooth Ambler Spirits because college alumni groups
meet the target market of Craft Liquor very well. Drinkers tend to be younger
and well educated. It would be highly beneficial for Smooth Ambler Spirits to
focus on college alumni groups. These organizations often attract people who
come in large groups or have an interest in larger gatherings. This would likely
result in sales at the distillery and at the near the visitors primary locations, due
to the samples they receive at the distillery.
The trips could range anywhere from short weekends (based on our
research and conversations with Miami University Alumni Association staff, are
very amenable to short trips) to full week trips that would incorporate a variety
of the activities in the Lewisburg area. It is also highly beneficial to promote this
service to colleges within a four hour radius of Smooth Ambler Spirits, as these
schools likely have a large alumni base in that area. These schools include, but
are not limited to-
· West Virginia University
· Marshall University
· University of Virginia
· Virginia Tech
Target Market:
We would target ages 21-34 especially because they are more likely to
splurge on more expensive alcohol purchases, willing to explore locally made
products, also more likely to purchase wine and hard liquor than previous
generations.
Millennials Set to Change the Alcoholic Beverage Industry
o There’s some argument over what to label them (Gen Y? Echo
Boomers? Millennials?), but here are some facts: they were born
from about 1977 to 1990 and are generally strong proponents and
adopters of technology. So could this group single-handedly
redefine the alcohol and liquor industry?
4. o The Nielsen study, which was completed in January, found that
compared to the general population, these 21-34 year old
Millennials are:
More likely to splurge on expensive alcohol brands (as the
economy improves);
Willing to explore new, different, and locally-made products;
More likely to plan their purchases, rather than buy on impulse;
Relatively fickle when it comes to the type of alcohol they
purchase,
More likely to purchase wine and hard liquor than their previous
generations.
These findings are good news for liquor store owners as they indicate
that millennials are willing to trade what little expendable income they have on
various beers, liquors and wines. So what can liquor stores do to tap into these
potential customers? It takes building a social brand, connecting with the young
community on the web, and providing an exciting and memorable experience
in-store.
The market that we will benefit the most in targeting are the millennials,
particularly recent college graduates. This age group of 21-34 year olds has
behaviors that work in Smooth Amblers Spirits’ favor. This younger generation
is more likely to purchase expensive alcohol brands, explore new and locally-made
products and more likely to purchase spirits than their previous
generations (Nielsen).
Males dominate the market holding 66.4% of the sales in the bourbon
industry. The market also is attracted by consumers who are educated- 56.1%
of the consumers have at least a college education. The millennials also have a
strong foothold on the market with 25.5% of bourbon being sold to consumers
between the ages of 25-34. This tells us that millennials will be very receptive
of Smooth Ambler Spirits and their products.
The millennial generation is also becoming more frequent travelers. This
generation is expected to be responsible for 50% of the spending of traveling
5. by 2020 (BCG). With this spending power, it makes sense to target this group
not only for immediate returns but to build the brand and sustainability with
loyalty.
Industry Analysis:
The U.S. Spirits industry has seen a both revenue and volume growth over
the past decade. U.S. Spirits produced $21.3B in revenue in 2012, a 4.5%
increase. Complementing the increase in revenues, the industry has increased
volume of cases by 3.0%. The Distilled Spirits Council categorizes any alcohol
over $30 as Super Premium. Super Premium alcohols increased volume nearly
triples the industry standard, 8.9%, in 2012 ("2012 Industry Revue"). Between
2002 and 2012 the volume of Bourbon has increased 28.5% ("Distilled Spirits
Council of the United States"). Bourbon and Whiskey is $2.2B industry and they
have seen greater increases in revenue and volume relative to the spirits
industry in 2012. Revenues increased 7.3% and volume 5.2%. The Super
Premium subcategory accounts for 10.1% of the Whiskey and Bourbon category
revenue at $222M. This subcategory has seen volume and revenue growth rates
from 2011 to 2012 of 12.4% and 14.4% respectively ("2012 Industry Revue").
The Craft Distillery Industry is an industry categorized by distilleries that
produce less than 100,000 gallons annually. The number of craft distillers saw
71.3% growth between 2004 and 2010. The American Distilling Institute
predicts the number of craft distillers to be between 600 and 800 by 2015,
between a 150% and 233% growth from the number of craft distillers in 2010
(Pennfield). The industry is a growing one, seeing a 71.4% increase in volume
bottled between 2010 and 2012 ("2012 Industry Revue"). The industry has low
barriers to entry, however 95% of the world’s Bourbon is produced within the
state of Kentucky by 16 distilleries (McMahan). The state of West Virginia has
even lower barriers of entry due to competition because of the presence of only
nine distilleries ("Distilled Spirits Producers and Bottlers" 1).
Competitors:
The primary competitors for Smooth Ambler Spirits are located along
Kentucky’s Bourbon Trail. These include but are not limited to- Four Roses,
Haven Hill, Jim Bean, Maker’s Mark, Town Branch, Wild Turkey, Woodford
Reserve and Evan Williams. The Bourbon Trail could be a factor in drawing
6. consumers from West Virginia’s Smooth Ambler Spirits location, as the trail is
much more developed in terms of organized events, transportation between
locations and attractions. In addition, competition within West Virginia has not
had a substantial effect on Smooth Ambler Spirits.
Smooth Ambler Spirits’ location within West Virginia enables it to stand
out from many of these primary competitors. Within West Virginia, Smooth
Ambler Spirits has been able to distinguish itself through its high quality
bourbon whiskey, gin and vodka. While the Bourbon Trail is known to draw
visitors, Smooth Ambler Spirits’ location is far enough away that its competition
is not an established factor on consumers. In addition, Smooth Ambler Spirits is
a smaller operation with a narrower focus. As a result of these factors, Smooth
Ambler Spirits is set apart from many competitors enabling it to focus on a
different target market.
Weekend Trips:
In order to increase traffic of local Alumni within the areas of several
different universities, we would design a weekend trip. We originally thought we
could just have a one evening/day event for a given university’s alumni trip.
However, after meeting with Miami University’s Alumni Relations Jonathan
Moore, we received insightful information that changed our minds. The amount
of alumni that attend will increase if it remains over a weekend, so they don’t
have to take off more than a day of work if that. On top of that, more alumni
are likely to attend if it involves several trips or events throughout the weekend
that they don’t have to plan and just get to show up for. This provides them
with more ‘bang for their buck.’
Thus, we suggest partnering with local attractions to embark on a journey
of creating Alumni weekends. This would entail discussing with universities
their interests and how long the trip should be. There would be Several Stops
for University Alumni Associations to target the younger groups since the week
long trips usually target 55+ who can afford to take off so much time.
Attractions nearby that could be incorporated into the weekend:
Lewisburg: The Country’s Coolest Small Town
http://www.tripadvisor.com/Tourism-g59251-
Lewisburg_West_Virginia-Vacations.html
7. Smooth Ambler
Lost World Caverns
Greenbrier Valley Theatre
Carnegie Ball
Watts Roost Vineyard
John Gillespie, founding partner of Wine Partners, said Wine Market
Council research shows 21 percent of LDA Millennials studied are
“core” wine drinkers, meaning they drink wine at least once a week
(on average); 21 percent of Gen Xers and 37 percent of Boomers are
core wine drinkers. At this rate, Millennials may be a generation with
a greater number of wine aficionados than its predecessors, Gillespie
said. And that’s not to say wine snobs, but rather people who
understand wine and enjoy a variety of wines as part of their regular
imbibing habits.
<http://www.nightclub.com/bar-management/consumer-trends/the-millennial-
moment>
High end restaurants for the night
http://www.lewisburg-wv.com/
Hotel Stays and bus provided to make it easier
Winter: waterfall that freezes in place
College/University Alumni Days:
Based on the research we have conducted, our recommendation centers
on visits catering to college alumni groups. This recommendation can be
extremely helpful for Smooth Ambler Spirits because college alumni groups
meet the target market of Craft Liquor very well. Drinkers tend to be younger,
and well educated. It would be highly beneficial for Smooth Ambler Spirits to
focus on college alumni groups. These organizations often attract people who
come in large groups or have an interest in larger gatherings. This would likely
result in sales at the distillery and at the near the visitors primary locations, due
to the samples they receive at the distillery.
The trips could range anywhere from short weekends (based on our
research and conversations with Miami University Alumni Association staff, are
8. very amenable to short trips) to full week trips that would incorporate a variety
of the activities in the Lewisburg area. It is also highly beneficial to promote this
service to colleges within a 4 hour radius of Smooth Ambler Spirits, as these
schools likely have a large alumni base in that area. These schools include, but
are not limited to-
· West Virginia University
· Marshall University
· University of Virginia
· Virginia Tech
· William & Mary
· Georgetown
· George Washington University
· American University
· University of Chapel Hill
· Duke University
· NC State
· University of Richmond
Advertising and Promotion Locations:
Beverage Journal: Beer, Wine and Liquor. Most companies and
restaurants have them in their businesses.
Circulation:
5,847 Total Subscribers
93% of Recipients are the Owners/Managers
Demographics:
Retail/Package Stores 36%
Restaurants/Taverns 54%
Social/Private Clubs 10%
Beer, Bourbon and Barbecue Festival that goes around the country
Closest Locations: Tysons, VA and Richmond, VA
9.
10. Sources
Links to Sites in Alphabetical Order:
http://www.bcg.com/media/PressReleaseDetails.aspx?id=tcm:12-130054
http://www.beerwineliquor.com/new/docindexer/05May2013MDDCWEB.pdf
http://www.beerwineliquor.com/new/resources/editorial
http://www.beerandbourbon.com/reston/exhibitors
http://blog.softwareadvice.com/articles/retail/how-to-promote-your-liquor-store-
to-gen-y-1081011/
http://www.crttbuzzbin.com/marketing-to-millennials-speakeasy-style/
http://www.discus.org/assets/1/7/Bourbon_2012.pdf
http://www.discus.org/assets/1/7/Distilled_Spirits_Industry_Briefing_Feb_6.pdf
http://www.distilling.com/aboutadi.html
http://www.nielsen.com/us/en/newswire/2011/millennials-redefine-the-alcohol-
beverage-landscape.html
http://www.nbcnews.com/travel/craft-distillers-breaking-kentuckys-billion-dollar-
bourbon-industry-8C11035874
http://www.ttb.gov/foia/xls/frl-spirits-producers-and-bottlers.htm
Meetings:
Catherine Greene and Jonathan Moore – Miami University