Madcap Craftbrew & Bottleworks, Inc.: Zebra Beer Promotional Strategy

July 21st, 2005

Madcap needs to develop a marketing plan that will build permanence to its brand image while increasing revenue, increasing awareness and overcoming the ‘try-it-once’ stigma that plagues the micro-brew industry.

Madcap must make a fundamental change in its approach to the market in order to maintain its status as a long-term, viable business entity. Without drastic changes in its product and marketing plans, Madcap only holds a small chance of growing revenue fast enough to compete with the likes of Samuel Adam’s and Pete’s. Madcap must expand its market offerings and make adjustments to production and marketing that will allow distribution into the lucrative West coast markets.

Strategic Focus
• Launch the Zebra brand on the West coast.

• Launch the MCB Light brand to compete with regional premium brand leaders for loyalty.

Promotional Strategies
With a new focus on attracting loyal buyers while maintaining the premium position of the Zebra brand, MCB will focus promotional efforts in two distinctly different directions;

The Zebra brand will be targeted to an audience made up of young professionals between the ages of 21 and 35 who drink premium and/or super premium beers. Over the next 18 months the goal is to increase unit shipments by 100%.

The new MCB Light brand will be targeted to an audience made up of professionals over the age of 25 who are currently loyal to any of the marketing leading premium brands. Over the next 18 months the goal is to develop a 2% premium segment market share in markets served.

Considering these promotional objectives and budgets allocated to the initial launch of the Zebra brand in the Cincinnati area ($250,000), MCB is aware that additional capital risk will be necessary to achieve profitable volume and brand loyalty particularly due to launching an entirely new product line. Outside of added production costs, the promotional budget for the Zebra brand will be set at $350,000 – including $250,000 for new market penetration and $100,000 for loyalty building promotions in the Cincinnati region. The promotional budget for the launch of MCB Light will be set at $750,000 – including $300,000 allocated to the Cincinnati region and $450,000 allocated to the West Coast launch. Total promotional budget for the coming 18 months will be set at $1.1million.

Zebra West Coast Launch: $250,000

Advertising
• Print
Localized upscale lifestyle publications such as ‘D’ magazine and ‘George’ , local and regional newspaper and local business journals/publications.

• Radio
Local Rock, Alternative Rock and Retro stations

• Posters
In support of in-store and in-club efforts

• POP Displays
In support of in-store and in-club efforts

• Billboard
Placement based on population density of target audience in major metro areas

• Web Site
To promote Zebra on its own merit and provide an outlet for loyalty development

• Email Newsletter
Driven by event promotion and web site subscribe requests
Personal Selling

• Tradeshows: NRA, CRA
Attendance at industry tradeshows will solidify market presence – National Restaurant Association Show in Chicago to support Cincinnati markets and California Restaurant Association Show to support West Coast Launch

• Event/Festival Planners
Target organizations responsible for beverage provisioning for major events and festivals such as art shows and music festivals

• Buyers: Convenience Store, Grocery Store, Liquor Store, Distributors
Focus on distribution relationships with top 50% of volume retail outlets in these categories on a metro area basis and focused on gaining premium placement alongside market leading craft beers such as Samuel Adams and Pete’s

Sales Promotion
• Zebra Girls: In-Club Giveaways
Team of Zebra ‘evangelists’ who work happy hours and weekend evenings providing samples and branded giveaways to patrons of high volume Pubs, themed bars and restaurants

• Zebra iPod giveaway
Work with promotions specialist to produce and giveaway an iPod every month for 12 months that is Zebra striped. This event is promoted by the Zebra girls at in-store/in-club and on-air appearances and via the Zebra web site

• Networking Sponsorship
Sponsorship of local networking group meetings that represent volume demographic attendees such as GeekMeet, local AMA chapters etc.
Public Relations

• Sales Success with local merchants as news stories to Nightclub & Bar, NRN, Food & Beverage, Restaurant Startup & Growth

• Zebra Girls on local Rock, Alternative Rock and Retro radio

MCB Light Launch: $450,000

Advertising
• Print
Local sports publications, business journals, sporting event programs

• Radio
Local rock and sports radio

• Posters
In support of in-store and in-club efforts

• Billboards
Placement based on population density of target audience in major metro areas

• POP Displays
In support of in-store and in-club efforts

• Web Site
To promote MCB Light on its own merit and provide an outlet for loyalty development

• Email Newsletter
Driven by event promotion and web site subscribe requests

• Direct Mail
Targeted to Email newsletter subscribers and high density demographic profiles

Personal Selling
• Tradeshows: NRA, CRA, Nightclub & Bar
Attendance at industry tradeshows will solidify market presence – National Restaurant Association Show in Chicago to support Cincinnati markets, California Restaurant Association Show to support West Coast Launch, Nightclub & Bar for minimal national exposure

• Event/Festival Planners
Target organizations responsible for beverage provisioning for major events and festivals such as art shows and music festivals

• Buyers: Convenience Store, Grocery Store, Liquor Store, Distributors
Focus on distribution relationships with top 50% of volume retail outlets in these categories on a metro area basis and focused on gaining premium placement alongside market leading premium brands
Sales Promotion

• MCB Road Crew: In-Club Giveaways
Team of MCB Light ‘evangelists’ who work happy hours and weekend evenings providing samples and branded giveaways to patrons of high volume night clubs

• MCB Road Crew: Major Event Club Sponsorships: Super Bowl, NBA Championship, World Series, Daytona 500, Indianapolis 500, Final Four, College Bowl Games
Club sponsorships with giveaways and sponsored food/drink specials during major sporting events

Public Relations
• Sales Success with local merchants as news stories to Nightclub & Bar, NRN, Food & Beverage, Restaurant Startup & Growth

• MCB Road Crew on local sports and rock radio

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