Table of contents PROMOTIONAL PLAN FOR UTICA CLUB BEER Sales & Sales Promotion Fall 2013
Primary Research Methods
Secondary Research Methods
Jenn Burgess is a junior
Integrated Marketing Communications major and a Culture & Communications minor with an interest in graphic design. She loves a good cup of coffee and giraffes.
Kelly Fishback is a junior
Integrated Marketing Communications major and Honors minor. She likes to sit down after a long day and indulge in watching an episode of Breaking Bad or Homeland.
Brittany Pietrzykowski is a
Page 10 Repositioning Strategy Page 12 Trade Promotions Page 14
Sales Force Promotions
Page 18 Budget Summary
is a junior Integrated Marketing Communications major with an interest in illustration. She enjoys hanging with Disney characters and eating quesadillas.
Lauren Quigley is a
junior Integrated Marketing Communications major and Legal Studies minor with an interest in the entertainment industry. She loves honey crisp apples and the west coast.
Ithaca College â€˘ Ithaca, New York
Historical analysis UTICA CLUB is a member of the Matt
Brewing Company family brand. Brewing beer since 1853, it is the second oldest family-owned brewery in the United States. They produce the popular Saranac beer line in addition to Utica Club and were ranked the sixth largest craft brewing company based on beer sales volume. The Saranac line has won several distinguished honors, but Utica Club has not reached that level yet. Compared to the Saranac line, it is a minor brand. There is potential for expansion in the marketplace because consumers’ preferences for craft beers such as UC are on the rise (The New Yorker). Brewers Association, a not-for-profit trade group that reports on craft breweries, has rated Matt Brewing Company at number 8 in 2012. Utica Club is a 5.0% pale lager introduced in 1933. Brewed in Utica, New York (hence the name), it was the first beer officially sold after prohibition and was referred to as “Uncle Charlie.” From 1959 to 1964, Utica Club ran black-andwhite television commercials featuring two talking beer steins called “Schultz and Dooley.” In 2005, USA Today reported that sales of “retro” beers like UC and Pabst Blue Ribbon had increased as part of a trend amongst younger beer drinkers. Food and drink writer Will Gordon ranked Utica Club as the 4th best inexpensive brew on his list of top 36 cheap American beers. Coors ranked number three and Pabst Blue Ribbon ranked number five. However, it has still lost its identity over the past few decades and we intend to bring it back as a new take on the timeless brand.
Competitors Utica Club has four main competitors, including Coors Light, Pabst Blue Ribbon, Keystone Light, and Genny Light. All three of these beers are relatively inexpensive and are considered light beers that are easy to drink and low in calories.
Coors Light is a nationally distributed domestic beer brewed in
Colorado that is 4.2% ABV. The company sponsors the NHL, Nascar, and Liga MX. Coors Light has a well-designed website with a substantial amount of information. The website offers information on different promotions they are offering including one featuring rapper and actor, Ice Cube, and one showcasing football. They also feature trade promotions such as beer tap innovations and cold activated pint glasses.
Pabst Blue Ribbon, referred to as PBR, is a nationally distributed
and well-known beer in the United States. It is known as a cheap beer that is popular amongst UC’s target market of educated 21-25 year olds. PBR has a niche market of “hipsters” and a vintage packaging that gives it a nostalgic feel. While PBR may have strong marketing and presence in stores, the trend among beer drinkers has been toward craft beers.
PABST BLUE RIBBON
Keystone Light is a product of Coors Brewing Company that is
marketed toward young professionals. While Keystone’s website is clever, it lacks information on the beer and directs viewers to a nonexistent Facebook page. They are known to have a witty image and frequently use a fictitious promotional character, Keith Stone, in their advertisements. With only 4.1% alcohol by volume, it appears slightly weaker compared to UC’s 5.0% ABV.
Genesee Brewing Company’s Genny Light is in direct
competition with Utica Club. It is considered a craft brew as it is sold regionally and in small quantities. Genny Light’s target consists mostly of those who have completed high school, but also taps into the same market Utica Club appeals to. Genny has a strong association with the Rochester area and has partnered with events such as the PGA Tour. It has generic packaging and could improve its social media presence.
swot analysis Strengths
• 90 years on the market • Associated with Saranac • Inexpensive • Low calorie • Local, family brand • Brand loyalty
• Low brand awareness • Unattractive packaging • Low market share • Lack of promotions • Weak digital presence
• Appeal to college students/recent grads with price • Rising trend of craft beers • Consumers’ constant need for beer • Current trends of “retro” styles
• Cheaper/well-known/ attractive beers • Competitive marketing of alcohol
Primary ONLINE SURVEY
To understand what beer consumers drink and why, we conducted primary research in the form of an online survey. We surveyed 215 people from the ages of 18 to 60. Although 18 year olds are not of legal age, we still value their input as they will be the ones purchasing alcohol in the coming years.
1. What kind of alcohol do you consume? Of the options provided, what is your alcohol of choice?
2. What brand of beer did you last purchase for yourself? Where did you purchase beer the last time you bought it? What brand do you prefer to drink?
Those who indicated they do not or cannot (gluten allergy) drink beer were not included in our data findings. Our goal is not to sway people to drink beer but rather sway beer drinkers to choose Utica Club. Almost everyone included beer in alcohol they consume, but many preferred hard liquor.
The purpose of these questions is to see what brand people will spend money on versus what they wish to drink. We did not find a significant correlation between the two. Some people put down the same brand while others had completely different ones. We also wanted to know where people purchase beer to ensure Utica Club is available in those locations. If UC is not currently in stock there, we will provide trade promotions to entice those stores to carry Utica Club.
RESULTS Current UC bottle design
The brands of beer last purchased range from Pabst Blue Ribbon to Saranac to Bud Light, among others. The location for purchasing beer was mainly large chains like Wegmans, Walmart, and BJ’s, but also included smaller stores like Rogan’s, gas stations, restaurants, and bars. This indicates we need to promote UC in all different types of places.
OLD BRAND. CHEAP BEER.
- Female, 23 years old
Looks like I wouldn’t buy it. There’s too much going on with the label. The multiple color scheme isn’t particularly appealing and I’m fairly certain nobody knows what “XX Pure” really means, and if they do, they probably don’t believe that this beer is “XX Pure.” - Male, 21 years old Utica Club - brought to you by a city struck with poverty and old buildings. - Male, 22 years old
VERRRRRY RETRO. I FEEL LIKE THIS IS WHAT PEOPLE DRANK IN DIVE BARS IN THE 70S. - Female, 21 years old
Party beer. in other words, light and cheap, as many pilsener beers are. - Male, 22 years old
Research methods 3. Rank the following attributes of beer in order of importance: taste, price, convenience of purchase, popularity amongst friends, and calories. We surveyed the above to find out what respondents generally look for in any brand of beer so we can position Utica Club in a way that will appeal to their primary needs.
The overall average ranking for taste was 2.66 (on a scale of 1-5 in which 1 was most important); convenience was ranked 2.85, price was ranked 2.9, calories 3.18, and popularity was 3.28. We separated the data by age group to see if there is a correlation between important attributes and age. For 18-21 year olds, convenience (2.74) and price (2.78) are most important, followed by calories (2.98), taste (3.0), and popularity (3.08). Ages 22+ ranked taste as the most important attribute. Ages 32-41 was the only age group to rank price as least important (4.33). The youngest respondents, 1831, ranked price second on their most important attributes. Because older people have a disposable income, they choose beers based on quality, not price. Younger respondents indicated they are concerned with purchasing beers within their reach, both in price and location.
4. Of the following, which beer-drinking situation applies the most to you: at a crowded bar on a Friday night, at a party with your closest friends, during dinner after a long day, or watching the football game Sunday afternoon? We also wanted to know the situations in which people typically consume beer. This question helped us to understand where people purchase beer.
The average age of people who responded they consume beer at a bar is 21. The average age of respondents who answered at a party was 23; watching football was 29 and during dinner was 31.
5. Have you heard of Utica Club before? What do you think of when you see the picture of Utica Club shown above? Possibly the most important question, we asked respondents if they have ever heard of Utica Club and what they think of UC when looking at a photo of it. Even if people hadnâ€™t heard of it, we asked for their opinion solely based on the beer packaging in the photo. Their responses help us understand how to rebrand Utica Club and reposition it to appeal to them.
Responses varied, but there was no direct correlation between people who have heard of Utica Club and their thoughts about the brand. Some people who have heard of UC liked the packaging and the beer while others didnâ€™t - same responses for those who havenâ€™t heard of it.
Areas that sell Utica Club
LOOKS LIKE A PRETTY STANDARD BROWN ALE. - Male, 20 years old
We looked at places Utica Club is currently sold, including hundreds of stores, restaurants, and bars within a 100-mile radius of Ithaca, New York. Our research concluded that UC could be found in regions north and west of the Hudson Valley in New York, as well as northeastern Pennsylvania. In these areas, the beer can be found in a variety of different stores, including local beverage centers (Finger Lakes Beverage Center in Ithaca, New York), delis and gas stations (Beer Belly Deli in Syracuse, New York or Sunoco in Newburgh, New York) and bars and restaurants. The closer the store location is to Utica, the more likely chain stores like Wegmans, Walmart, Target or Price Chopper will sell the beer.
Target Audience We hope to introduce Utica Club to males and females ages 21 to 25. This target audience has limited disposable income but still spends money on social activities. College upperclassmen and post-graduates encompass this age range. They are looking for a beer brand that is inexpensive, fits their lifestyle, and “gets them drunk,” as stated by respondent #128. We are positioning Utica Club as a modernized retro beer good for those with a social lifestyle.
GOAL FOR TARGET AUDIENCE
She just turned 21 and is looking to purchase her first beer legally. As a senior Cortland University student overwhelmed with school loans, she doesn’t have a lot of money to spend on alcohol - and her parents certainly don’t contribute to that fund. She is looking to consume cheap beer for her crazy weekends spent partying at local bars and house parties, including her recent involvement with the Cortaca riots. Lindsay found Utica Club, her affordable go-to beer, at Quick Stop Beverage and Grocery on West Road near her school.
He is a 25 year-old who recently settled into his first entry-level professional job in Syracuse, New York. He doesn’t earn a substantial disposable income yet, but is working hard towards doing so. The end of a long work week is celebrated by going out to the local pub with friends where he looks for a cheap beer to drink while catching up with the boys. At Nibsy’s Pub, he orders a Utica Club and continues doing so until he can’t remember just how bad his week was.
Repositioning EXTENSIVE RESEARCH
on Utica Club showed that it has low brand awareness and low market share, lack of promotions, and unattractive packaging. Though it has been on the market for 90 years, its reputation pales in comparison to those of its direct competitors. Research also showed that UC is far behind its competitors in terms of target market awareness. The majority of survey respondents stated they had never heard of the brand before. When shown an image of the Utica Club bottle, the respondents used words like “old,” “normal,” “gross,” “generic,” and “meh.” The brand has strong opportunities, however, including the large market of college students and recent grads who often drink beer, and the rising trends of craft beers and “retro” styles. We developed our positioning strategy around these responses and identified two major goals: to increase target market awareness and to rebrand UC as a simple and modern beer while maintaining its historic, retro image. In its rebranding, we redesigned the UC label to make it more attractive to young consumers. In order to increase target market awareness, we will use a series of trade, consumer, sales force, and alternative promotions.
trade promotions Trade promotions may be the most important aspect of our campaign. These promotions will encourage resellers to buy Utica Club and promote it more aggressively. Our goals include gaining new distributors in the central New York region, strengthening relationships with current distributors, influencing resellers to promote Utica Club, increasing reseller purchases and inventory, coordinating efforts with consumer promotions, and defending market share from our competitors in the beer industry. Our trade sales promotions include trade allowances - a buying allowance and slotting allowance - as well as free merchandise and displays.
Bars and restaurants will be offered free merchandise to entice the purchase of Utica Club. In lieu of other discounts, free coasters will be offered to these locations for use around their establishment. Utica Club branded coasters will be encouraged to be used for all beverages - not just beer. The coasters will add humor to the brand to attract our target while at a bar or restaurant. This will increase potential and current customers’ familiarity with the brand. It will help keep Utica Club top of mind so the next time the customer orders a beer, they’ll be thinking of UC.
25,000 2-sided bar coasters x $0.19 per coaster = $4,750 Source: Print Globe printing services - 3.5” round pulpboard colored coasters
Buying allowances will be used when selling to bars and grocery stores. These locations will earn a discount for purchasing Utica Club. The discount will increase as they increase purchases. Most of the retailers are already selling Saranac beverages, so we aim to use this family brand relationship to offer discounts when additionally purchasing Utica Club. In grocery stores, we will enact a slotting allowance. This is the fee charged by the retailer for prime shelf space. By placing Utica Club in an ideal location on the shelves in a grocery store, we hope our new packaging will capture the customerâ€™s eye and entice a purchase. Buying allowance: 5% off bulk purchases x 100 distributors (each estimated to purchase around $10,000 of beer over the course of a year) = $50,000 Slotting allowance: $50,000 for prime shelf-space in regional markets surrounding Utica Source: Forbes article http://www.forbes.com/ forbes/2002/0415/130.html
To complement the coupon consumer promotion, we will offer display sticker advertisements on cooler doors in grocery stores, gas stations, and convenience marts. These displays advertise the product offered in the store and will help Utica Club stand out amongst the other brands surrounding it on the shelves.
BUDGETING Cost of printing on wall gels for a removable surface 1 - 15x25 inches removable gel for the grocery store window surface = $20 ($10 per square foot) $20 x 500 stores = $10,000 Source: FedEx/Kinkos Print Shop
Cooler Display Design
consumer promotions COUPONS
To entice consumers to purchase Utica Club in stores, we will offer a coupon directly on the packaging. It will be a sticker that can be peeled off and instantly used. The “Save $1 on a 6-pack” promotion will attract the younger crowd since they rank the price attribute high on what they look for when purchasing beer. Since they don’t have a lot of money to spend, a coupon is an immediate way to bargain shop. These coupons will be offered in chain grocery stores as well as small gas station marts and convenience stores.
Cost of printing the coupons 10 coupons per page X 2,100 pages = 21,000 coupons 70 orders of sticker paper and printing (will print 21,000 coupons) x $15 each = $1,050 Source: Staples
sales force promotions COMMISSION
To encourage the Utica Club sales force to sell a large amount of beer, we will be implementing two sales force promotions including a bonus and a contest. Both sales force promotions will help to motivate the sales force, reward outstanding performance, and improve performance. Each sales person will receive 5% of every sale they make of Utica Club in addition to their current salary. The highest performer for every quarter will also win a 16GB iPad Air. This contest will encourage friendly competition between the sales people and will serve as an additional incentive. They will also receive a certificate from the CEO in recognition of their achievements.
Estimate of $50,000 in sales per person x 6 people in sales force = $300,000 5% of $300,000 = $15,000 4 - 16GB iPad Airs = $2,000
Certificate of Achievement awarded to the highest performer
iPad Employee Prize
Alternative promotions We will go beyond traditional promotions to attract customers through alternative promotions. These promotions will capture the attention of the entire target audience, including both old and new drinkers of Utica Club, through dynamic events and entertainment.
SPONSORED BEER PONG TOURNAMENTS
To better acquaint consumers with Utica Club, we plan to sponsor beer pong tournaments at the most popular bars in regions where the brand is sold. Each bar will hold five tournaments. We will provide pitchers of UC to the final eight teams in the tournament to enjoy at no cost to them, as well as provide the bars with branded UC merchandise. The merchandise includes branded beer pong tables, red party cups, and pong balls. Our goal is to create positive memories of the brand for consumers by encouraging them to compete in a fun drinking game while simultaneously indulging in Utica Club beer. These events will be beneficial to customers who have previous experience with the brand as well as new consumers; all participants will associate Utica Club with fun memories by the end of the night. It is our hope that customers will be more apt to purchase Utica Club in the future after participating in the sponsored tournaments.
$8/pitcher of Utica Club for 8 teams = $64/bar 50 bars x $64 =$3,200 $3,200 in beer x 5 tournaments = $16,000 4 custom tables @ $30 each = $120 20 bars @ $120 = $2,400 10,000 custom cups @ $0.29 each = $2,900 1,000 custom pong balls @ $0.75 each = $750 Total for beer pong tournaments = $22,050
NEW YORK STATE FAIR SPONSORSHIP
Utica Club will be a sponsor at the 2014 New York State Fair, running from August 21st to September 1st in Syracuse, New York. By paying $50,000, UC will reach the â€œwhite ribbonâ€? level, which provides the brand with recognition on-site and in Fair communications, exhibit space, sampling opportunities, a built in activation credit, and a package of VIP tickets. The $3,000 activation credit provided with the package will be used to pay for Utica Club employees and promo girls to work the event. The additional Fair tickets, concert tickets and parking passes will be given to beer pong tournament winners to tie in other promotions. Six public address announcements per day will be made in addition to on-site signage. The greatest benefit is the opportunity to provide samples onsite throughout the duration of the Fair. Utica Club receives a designated exhibit space to provide samples and promote the brand. Because over 1 million people attend the Fair to see popular music acts, Utica Club will gain significant exposure, especially to young concert goers.
“UNCLE CHARLIE’S ANGELS” PROMO GIRLS
Stereotypically, men who have had a few beers to drink are drawn to hot girls. So why not hire attractive women to promote Utica Club by serving free samples at bars? These women will serve samples while wearing Utica Club attire. This will allow people who are unaware of Utica Club to try it for the first time, and will also serve as a reminder for those who are aware of the brand, but who may not drink it as often. We will call them “Uncle Charlie’s Angels” in recognition of “Uncle Charlie,” an affectionate nickname that loyal Utica Club drinkers have developed for the brand. By employing these “Uncle Charlie’s Angels” to serve samples in bars, we will increase both awareness and brand recognition, and encourage future purchases. Wage = $25/hour (each girl works 2 hours and there are 2 girls per venue) = $100 per night per place 50 places x $100 = $5,000 5 appearances at each place x $5,000 = $25,000 Branded dresses: 10 dresses x $50 each = $500
BEER PONG TOURNAMENT MARCH THIRD AT MOONIES
NINE PM SPONSORED BY
WINNING TEAM WILL RECEIVE TWO FREE NEW YORK STATE FAIR TICKETS
New York State Fair
Beer Pong Tournament Poster
SALES FORCE PROMOTIONS
Total: $114,750 (49.8%)
Total: $17,000 (7.4%)
Total: $97,550 (42.3%)
Total: $1,050 (0.5%)