Marketing Plan for Moon Under Water

MARKETING PLAN

Te a m 2 : A l e x , K e l l y, L i n d s a y, Ly n n e a , S h y l o , S i o n e d COMM470 PR & Advertising Tom Workman June 12, 2015

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PURPOSE The purpose of this marketing plan is to outline a strategy to increase Moon Under Water’s beer sales through brand awareness. We aim to take Moon Under Water (Moon) from its current position as one of the smallest breweries in Victoria to the position of a serious craft beer contender in B.C., but specifically on Vancouver Island. This document will detail how social media, an event, and the personification of Moon’s beers will create brand recognition, awareness, and loyalty.

TABLE OF CONTENTS PURPOSE 1 BACKGROUND 1 GOALS 2 KEY MESSAGES 2 SWOT ANALYSIS 3 KEY MARKETS 4 SALES TRENDS 5 TARGET AUDIENCES 6 COMPETITORS/KEY PLAYERS 8 CRAFT BEER FESTIVALS 10 ACTION PLAN 11 UNIQUE SELLING PROPOSITION 11 MARKETING MIX 12 PROMOTIONAL TACTICS 12 DELIVERABLES 14 BUDGET 15 EVALUATION/MEASURABLES 16 CONCLUSION 16 REFERENCES 17 APPENDIX A: SOCIAL MEDIA EXAMPLES 18

BACKGROUND Don and Bonnie Bradley founded Moon in 2010. They chose the location of the brewery in the industrial sector of Victoria, B.C. to hit the lunchtime and after-work crowd. On September 1, 2012 the brewery switched hands to Chelsea Walker, Clay Potter, and his parents, Steve and Anne Potter. Although the new owners kept the name of Moon, they rebranded the brewery and beer. Ever since the new owners took over, the brewery has focused on creating interesting beers. They have collaborated with other B.C. craft brewers and have promoted themselves at a few local events. As of March 2, 2014 Moon brewery is open seven days per week.

Moon’s brewmaster, Clay Potter, was born and raised in Victoria and trained in England, Scotland, and Germany. Before buying Moon with his parents and fiancé he had already brewed with Lighthouse, Driftwood, and Turning Point. His knowledge of and connections within the Victoria beer scene have allowed Moon to collaborate with local breweries. In addition, they started selling beer at the Sidney Farmers Market in 2014.

Moon now specializes in German Lagers, wheat beers, and sours. Since 2012 Moon beer has won several awards including silver at the 2014 Canadian Brewing Awards for their “Potts Pils” and bronze for “This is Hefeweizen”. Their collaboration beer with Parallel 49, “Raspberry Berliner Weiss”, won 2014 People’s Choice Award at CAMRA’s Sessional Cask Festival. In addition to their regular beer line, Moon markets to pet owners with alcohol-free beer for dogs and dog treats.

REGULARLY AVAILABLE · · · · ·

Creepy Uncle Dunkel Light Side of the Moon Tranquility IPA Hip As Funk IPA Potts Pils

SPECIAL BREWS · · · · · · · [1 ]

Victoria’s Sticke (Seasonal) Pumpkin Pearzen (Seasonal) Sang du Merle (Crow’s Nest) Berliner-Style Weiss (Seasonal) This is Hefeweizen (Seasonal) Victorious Weizenbock (Seasonal) Shatterbier Golden Ale (Single Batch)

SWOT ANALYSIS STRENGTHS

GOALS Craft beer has become the new food movement (Mertl, 2014), but in a time when so many breweries are opening, only some achieve the success they are hoping for. In order to make it, craft breweries need to have strong brand awareness, have ample opportunities for customers to try their beer, and have a brand loyalty and affinity among customers. We want to create an event that will touch on all of these important factors.

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Increase annual beer sales by 32% by December 2016. Goal: $887,000.

(A 250% increase in comparison to their 218.7% increase in 2014 from 2013).

Increase social media presence by 10% by September 2016:

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o Instagram: from 918 followers to 927 followers

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o Twitter: from 2,396 followers to 2,420 followers Sell 150 tickets to the summer kickoff event held in July 2016 (150 x $10= $1,500).

Additional revenue will be from other beer and food sales on the day of the event.

Facebook: from 3,180 likes to 3,211

KEY MESSAGES “Go to the Moon — Moon Under Water Brewery” “Small Brewery, Big in Flavour”

· Fastest growing brewery on Vancouver Island · Strong market position in private liquor stores · Good reputation for quality beer: have won multiple awards thus far · Strong quality branding that is uniquely different from local competitors · Likeable key messages and values · Established partnerships with other popular and successful breweries (e.g., Parallel 49) · Brewmaster is a Victoria local with strong connections and professional/personal network · Established social media

OPPORTUNITIES · Growing craft beer market in B.C. · Increasing younger demographic in Victoria with interest in craft beer · Strong support for local economy · Product expansion to more liquor stores · Partnership opportunities with more breweries and brewpubs to expand audience visibility · Partnership opportunities to local festivals: BeerFest, Rifflandia, Blues Bash, etc. · Summer season approaching means increased sales in alcohol

WEAKNESSES · Little-to-no money for marketing/advertising · Only participates in one beer festival a year · Unreliable data: lack of records for sales and inventory · Smaller player than major competitors · Not tech-savvy: Establishing relations on the Internet will be hard · Social media posts are random and often unrelated to brewery

THREATS · Fierce competition: nine other breweries in Victoria alone (more up island) · Vancouver market is also prevalent in Victoria and continues to grow · Poll has found that a large part of their target audience finds their beer too expensive (Bevsupport, 2013) · Craft beer prices raised in liquor stores as of June 2015 (Brown, 2015)

“That Chick is Hip As Funk” “2016 Summer Kick Off Party”

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SALES TRENDS Province-wide, craft beer is rapidly increasing its share of the British Colombia beer market. Craft beer currently sits at 22% of the beer market, growing 13% since 2009, according to the BC Craft Brewers Guild (Mertl, 2014). Vancouver Island, like the rest of the province, has seen this increase in market share manifested in overall profit increase.

TOTAL SALES

KEY MARKETS Our target audience is adults living on or visiting Vancouver Island. In particular, adults who are already consuming craft beer. Ken Beattie, executive director of the BC Craft Brewers Guild, explains that “[t]he craft beer drinker is very experimental” and “[t]hey don’t align themselves with one brand or one style” (Mertl, 2014). We do not need to convince consumers to switch to craft beer from larger breweries, but rather to promote Moon to existing craft beer drinkers as a tasty and exciting beer option.

POPULATION Vancouver Island: 784,990 Greater Victoria: 344,630 80.67% drinking age (approx. 633,251 Vancouver Island residents) 30.48% aged 20-45 (approx. 301,436 Vancouver Island residents)

POSITION IN MARKET According to 2014 year end reports, Moon is the smallest of 15 craft breweries on Vancouver Island of breweries and brewpubs under 160,000HL per year (BC Craft Brewers Guild, 2013). From 2013 to 2014, Moon increased their sales by 218.7%, making them the fastest growing small brewery on the island, and fourth fastest in B.C. (“BC Breweries by Production 2014”, 2014).

Moon Under Water 2013 Income: $97,534 2014 Income: $354,781 (an increase of 218.7%) 2014 Production (hl): 1036 Hoyne Brewing Company Ltd 2013 Income: $1,204,082 2014 Income: $2,384,445 (an increase of 98.0%) 2014 Production (hl): 7948 Driftwood Brewing 2013 Income: $4,049,056 2014 Income: $5,843,817 (an increase of 44.3%) 2014 Production (hl): 19479 Lighthouse Brewing Company Inc 2013 Income: $5,156,097 2014 Income: $4,962,174 (a decrease of -3.8%) 2014 Production (hl): 16540 Phillips Brewing Co 2013 Income: $14,527,143 2014 Income: $17,209,987 (an increase of 18.5%) 2014 Production (hl): 57366 (Financial information as reported to British Columbia Liquor Distribution Branch and further compiled by barleymowat.com in “BC Breweries by Production 2014”, December 25, 2014).

Total sales including: sales to retail customers, licensed establishments, licensed retail stores, and agency stores. These amounts do not include subsequent resale by licensed establishments, licensee retail stores, and agency stores (British Columbia Liquor Distribution Branch, “Statements of Financial Information”, 2014).

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Hip As Funk IPA TARGET AUDIENCES CRAFT BEER FANS Moon’s main target audience is craft beer drinkers living on or visiting Vancouver Island; in particular, adults who are already consuming craft beer. Ken Beattie, executive director of the BC Craft Brewers Guild, explains that “[t]he craft beer drinker is very experimental” and “[t]hey don’t align themselves with one brand or one style” (Mertl, 2014). We do not need to convince consumers to switch to craft beer from larger breweries, but rather to promote Moon to existing craft beer drinkers as a tasty and exciting beer option.

WOMEN While 66.72% of craft beer drinkers in B.C. are male, the percent of women drinking craft beer is rising. In a 2014 poll by Beer Me British Columbia, the survey noted that women who consume craft beer was up 6.3% from 27.43% in 2013 to 33.73% currently (Zeschky, 2015). By targeting women, as well as men, we can take advantage of this growing market.

The woman likely to drink Hip As Funk is initially attracted to the label of the beer because she sees women portrayed in a better light. She breaks social norms and believes in making social change in the roles that women are portrayed in. She is confident and doesn’t let anyone tell her who she should be.

Always curious, she enjoys challenging her palate by sampling new beers, but opts for quality over quantity.

She supports the local craft beer scene, specifically Moon, because she likes to support the little guys.

Hip As Funk is more than just a beer — it’s a statement. Its consumer feels the same about herself.

The beer’s subtle hoppiness represents her zest for life, the tartness represents her sass, the sweetness of the Saison (or farmhouse) represents her demeanour, and the mild aftertaste represents her lasting impression.

creepy uncle dunkel The man who drinks Creepy Uncle Dunkel is independent, confident, and not afraid of bold flavours. He is a devout craft beer drinker and enjoys Moon Under Water for its diverse and ever-evolving selection of beer. He wants a quality beer that is good enough to bring to a party to share with his friends. He particularly enjoys the humour and creativity of Creepy Uncle Dunkel and uses it as a conversation starter amongst friends...and even with the ladies from time to time. He is just a complicated dude.

MILLENNIALS (18-31) While discrepancy exists within this age range in terms of product packaging and price — young Millennials (ages 18 to 20) place higher importance on packaging and low cost than older Millennials (26 to 31) — there is a trend to choose craft beer over larger breweries (Bevsupport, 2013). With 28% of Millennials preferring craft beer, this group should be targeted in future Moon advertising (Bevsupport, 2013).

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Hoyne communicates their newly launched beers and new taps at local establishments through social media. They do not work with conceptual content that latches to a brand ideal. They continue to work with a local business feel and their popularity helps them continue with this strategy. A popular beer of theirs is Dark Matter — its popularity has given its other products a place in the local beer market.

SOCIAL MEDIA • • •

COMPETITORS

VANCOUVER ISLAND BREWERIES

DRIFTWOOD BREWERY

GREATER VICTORIA · · · · · · · · · · ·

C12 Canoe Brewpub Driftwood Brewery Four Mile Brewpub Hoyne Brewing Lighthouse Brewing Phillips Brewing Saltspring Island Ales Spinnakers Brewpub Swans Brewpub Vancouver Island Brewing

Twitter: 6,652 followers. Active since 2011. Active semi-frequently.

Facebook: 3,396 likes. 4.8 of 5 stars. Sporadic posting.

Instagram: 481 Followers. 47 Posts. Infrequent posts.

VANCOUVER ISLAND · · · · ·

Craig Street Brewpub (Duncan) Longwood Brewpub (Nanaimo) Red Arrow Brewery (Duncan) Tofino Brewing Company Wolf Brewing (Nanaimo)

Driftwood Brewery was founded in 2008 by Jason Meyer and Kevin Hearsum, two men with a passion for beer and the drive to produce it. After finding a suitable industrial space in Rock Bay, they cleaned it up, modified it to suit their needs, and loaded it with a third-hand system that they imported from the states. Years passed and their business grew, with new partnerships developed and members added to the team. Their team of two has now grown to a team of ten; collectively they manage production and sales on Vancouver Island and throughout the lower mainland. Their personality shines through on many occasions -- with fun business titles such as “Purveyor of Precious Liquids” — making them an approachable brand for craft beer drinkers. This humour is also seen on their website’s about me page where they include images and interesting details to level with the consumer.

Their marketing strategy focuses less on traditional advertising and more on outreach: digital and in person. They offer growlers, tours, and retail with the corresponding information readily available for visitors to the site. One of their strongest points on their website is a map of where their beer is available on tap and by the bottle. They recently rebranded their labels.

KEY PLAYERS IN THE MARKET HOYNE BREWERY Hoyne, like most microbreweries, does not partake in traditional advertising or campaigning. They do not work with an advertising agency and prefer to handle all of their external communication and marketing in-house. Their tactic as a brand consists of building local relationships and getting involved with the events and happenings of their target demographics. Like most local businesses, they want to be a part of their community in order to ensure brand loyalty and top-of-mind status.

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Driftwood is relatively active on social media, which helps brand awareness and promotion of events to followers. As Jason Meyer says, “It’s a lot easier to preach to the converted than to be a missionary” (Weibe, 2009).

SOCIAL MEDIA • • •

Twitter: 11.5k followers. Active since 2009. Daily posts.

Facebook: 4.567 likes. 4.8 of 5 Stars. 267 Reviews. Daily posts.

Instagram: 1737 followers. Daily posts.

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ACTION PLAN The objective of this campaign is to build brand awareness. which will, in turn, increase Moon’s beer sales. In order to do so, we will plan an event for Moon that will bring people into the brewery as a kickoff to a larger brand awareness campaign for Moon brewery. To promote the event we would like to personify the characters that represent Moon brewery and their customers. We suggest Creepy Uncle Dunkel, Hip as Funk, and the Astronaut as characters. After the kickoff party, these social media tactics can carry on to promote brand awareness for Moon Under Water.

CRAFT BEER FESTIVALS Craft beer festivals provide a great opportunity to promote a brewery’s beer and increase brand awareness. If one’s beer “cannot be staged” as Moon promotes their own to be, then they should let the public decide in comparison to other craft beers on the market. It also provides an opportuity for the brewmasters to sample the competition. Lastly, it exposes the people and the personality behind the brewery, which can be a great marketing tool.

DRIFTWOOD BREWERY · · · · · · · · · · · · · · ·

East Side Beer Fest Vancouver Beer Week Horseshoe BayBeer Festival Great Okanagan Beer Festival Flatlander’s Beer Festival Okanagan Fest of Ale Whistler Village Beer Festival Calgary International Beer Festival Farmhouse Saison & Wild Ale Festival Squamish Beer Festival Island Beer Festival Yukon Beer Fest Tapped (Mt. Washington) Camra Vancouver Awards BC Beer Awards

MOON UNDER WATER BREWERY · · · · · ·

Victoria Beer Week Okanagan Fest of Ale Farmhouse Saison & Wild Ale Festival Harrison Beer Festival CAMRA Vancouver Spring Sessional Cask Festival Great Canadian Beer Festival

EVENT DETAILS • Tickets will be sold for $10 and will come with a sample of six beers. Additional beer (pints and flights) and food will be available for regular price.

• Outdoor event: The event will be hosted on Moon’s blocked off parking lot to allow people to flow in and out of the Brewpub. Bouncers will be present to prevent people from leaving the premise with beers.

• Live music: Moon Under Water supports a local culture in Victoria, so we want to reflect those values by hiring local musical talent.

• A select menu that pairs well with the brews to lessen the stress on kitchen staff. Highlight their most popular food items: Moon Burger, Vegetarian Burger, Oyster Burger, Fry Bowl, and Wings.

• All three characters will be present for the event: Creepy Uncle Dunkel, Hip as Funk, and Astronaut.

• Cardboard character cutouts will be at the event for people to take photos as the characters; this is a fun and easy way to engage customers and to encourage them to spread the brand.

• Hand out mini astronauts for guests to take photos with at the event and take home to continue awareness and promote brewery through others social media.

UNIQUE SELLING PROPOSITION

***These are marketing opportunities for Moon Under Water.

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“For the beer drinker who isn’t afraid to stand out, Moon Under Water creates beer that cannot be staged. It is a quality brew that holds diverse and bold flavours. Unlike larger breweries, Moon Under Water stands for breaking social norms in a unique and quirky way.” [ 11 ]

Creepy Uncle Dunkel The purpose of personifying Creepy Uncle Dunkel is to have our customers be able to interact with him in a unique way that makes Moon stick in the mind of craft beer drinkers.

Creepy Uncle Dunkel will be posted in liquor stores around Victoria a month before the event. He will hand out free tickets and stickers in order to create awareness.

A Twitter page for Creepy Uncle Dunkel will be created (@CreepyDunkel) to personify him. It will be used to support the main Moon Twitter account.

MARKETING MIX

A social media contest campaign will run to find the next Creepy Uncle Dunkel. Each month a new Uncle Dunkel look-alike will be featured on the Twitter page (with permission).

Hip As Funk

Product

Craft beer (regulars, plus rotating seasonals)

Price

Mid-range price for craft beer, reflects quality

Promotion

Event, social media, hashtag campaign, video spots, characters, beer festival presence

Place

Focus on brewery/brewpub sales and liquor store sales

Process

Focus on crafting unique, but approachable beer

People

Family business, long-term employees, characters, company culture matches beer culture

Physical Evidence

Brewery open to the public, photographs, reviews/articles

We want our customers to show support for the Hip As Funk woman and all that she represents.

We will design and produce stickers or pins of the Hip As Funk logo to give away at the event and in-store alongside the Creepy Uncle Dunkel stickers.

We suggest a hashtag campaign using #HipAsFunk. Followers can tag photos of themselves (if female) or their female friends being “Hip As Funk”.

Moon should post pictures of women drinking in their pub with the hashtag #HipAsFunk.

Astronaut The Astronaut is the character that is the most representative of the Moon brand.

PROMOTIONAL TACTICS In the months leading up to the event, we will push promotion mainly through the use of social media and but although through personal engagement with the customers. These tactics can continued be used after the event for further brand awareness.

Mini astronaut cutouts (image on popsicle stick) will be produced to give away at the event. Customers will be invited to take photos with their astronauts and share them on their social media pages.

Photos with the astronaut should be posted with #GoToTheMoon.

Astronauts will also act as a business card with the hashtag, Moon’s address, and all social media accounts on the back of the cutouts.

Images with the astronaut can be continued after the event for further brand awareness.

Videos We will also put together three ten (10) second videos, each featuring one of the three Moon characters, that will promote the event. These will be used on social media and put on the Moon website.

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BUDGET Moon has little-to-no advertising budget, which is not unusual for breweries of its size. Because of this, Team 2 will consult with Moon to plan their event and establish promotion pro-bono. Ticket sales for the event, at $10 per ticket and an expected 150 tickets sold, will cover half of the budget. We anticipate that the other half of the budget will be covered in food and alcohol sales at the event. Attendees receive tasters of the six Moon beers on tap, but can purchase pints of their favourite beer at regular price once finished.

DELIVERABLES

Twitter, Instagram, and Facebook are free advertising platforms that have a long-term return on investment. The continued use of social media as a promotional tactic will be the primary way Moon will reach the goal of a 250% increase in annual beer sales.

Poster

HOURLY BUDGET

A poster will be created to promote the event. The posters will be placed in liquor stores and cities throughout the city.

Category Planning & Organizing Design Work Social Media Video Production Facilitating Event Total

Creepy Uncle Dunkel Twitter Account A twitter account will be created for Creepy Uncle Dunkel. The account will be used to promote the event and Moon and will support the main Moon social media accounts.

A Hashtag Campaign A hashtag campaign will be created around #HipAsFunk where people can post photos of women they believe to be “Hip As Funk”. It will be included on all of Moon’s social media accounts.

EVENT BUDGET

A Press Release A press release will be written about the summer kickoff event. “Small brewpub makes big splash!”

Creative • 300 stickers: A “Hip As Funk” sticker will be created to handout at the event.

Creepy Uncle Dunkel can also handout the stickers on his adventures around town.

• 300 astronauts will be created to handout at the event as a keepsake.

• One cardboard cutout of the three Moon characters will be designed to take pictures with at the event.

• Three ten (10) second videos will be created as promotional material.

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Estimate Hours of Work 40 hours 15 hours 20 hours 10 hours 15 hours 100 hours

Category Details Promotional Materials • Printing costs: tickets, posters • Hip As Funk Stickers • Astronaut cutouts • Character photo booth cutout Event Materials • Outdoor equipment: tables, tent, glasses

Music • Live band • Equipment Licensing • Outdoor event permit Additional People • Creep Uncle Dunkel and Hip As Funk “actors” • Bouncers Total [ 15 ]

Estimated Cost $300 $250 $150 $175 $1,200 $500 $120 $300 $200 $3,195

REFERENCES BC Breweries by Production 2014. (25, December 2015). Retrived from http://barleymowat. com/2014/12/25/bc-breweries-by-production-2014/ BC Craft Brewers Guild. (2013). BC Craft Brewers Guild Retrieved from http://engage.gov.bc.ca/liquorpolicyreview/files/2013/10/BC-Craft-Brewers-Guild-2.pdf

EVALUATION (MEASURABLES)

Bevsupport. (2013). Canadian Millennials and Beverage Alcohol A survey of 1,012 Canadian Millennials (aged 18 to 31). Retrieved from http://canadianmillennials.ca/wp-content/uploads/2013/06/Abacus-Data-Bevsupport-Canadian-Millennials-and-Beverage-Alcohol.pdf

• Increase annual beer sales by 250% from 2014 sales (32% more than projected).

Brown, Scott. (2015, June 5). B.C. craft-beer prices rising under new rules. Times Colonist. Retrieved from http://www.timescolonist.com/business/b-c-craft-beer-prices-rising-under-new-rules-1.1959112

• Increase social media presence by 10% by September 2016:

o Facebook: 3,180 likes to 3,211

o Instagram: 918 followers to 927 followers

o Twitter: 2,396 followers to 2,420 followers

• Sell 150 tickets for the July 16th event to cover half of the costs (150 x $10= $1,500), in addition to other beer and food sales on the day of the event.

• Promotional event posters to be placed in liquor stores and throughout the city.

• 300 “Hip As Funk” stickers handed out at the event and at liquor stores.

• 300 astronauts handed out at the event and at liquor stores.

Canadian Brewing Awards. (2015). Past Winners. Retrieved from http://www.canadianbrewingawards. com/winners/years/2015/ City of Victoria. (2015). Special Events Permits. Parks, Recreation and Culture. Retrieved form http:// www.victoria.ca/EN/main/departments/parks-rec-culture/culture/special-events/permits.html Descoteau, D. (2013). Beer For Dogs Lapped Up. Victoria News. Retrieved from http://www.vicnews. com/news/229776971.html Mertl, S. (2014, Aug 16). Beer battles: Craft brews eating into market share for mainstream brewery brands. Yahoo! News Canada. Retrieved from https://ca.news.yahoo.com/blogs/dailybrew/beer-battlescraft-brews-eating-market-share-mainstream-154357636.html Moon Under Water Brewery & Pub. (2010 -2015). In Facebook [Home page]. Retrieved from https:// www.facebook.com/MoonBrewery/timeline

CONCLUSION

Watts, R. (2013, September 14). Great Canadian Beer Festival Brings A Celebration of Suds To Victoria. Times Colonist. Retrieved from www.timescolonist.com/entertainment/great-canadian-beer-festival-brings-a-celebration-of-suds-to-victoria-1.612616#sthash.JlLbBvJk.dpuf

This marketing strategy will enhance the brand’s values and will successfully position Moon Under Water as a key player in the craft beer market. The creative elements and innovative approach of the plan will differentiate the brand from its competitors and keep the brewery top-of-mind. Little by little, the brand will build lasting relationships with its consumers by maintaining quality beer and integrity while expanding its reach and growing as a business.

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Zeschky, J. (2015, Jan, 16). Brewed Awakening year-in-beer poll 2014: THE RESULTS! The Province.

Retrieved from http://blogs.theprovince.com/2015/01/16/brewed-awakening-year-in-beer-poll-2014-theresults/ Zeschky, J. (2015). Hip As Funk Farmhouse IPA (Moon Under Water, 7%). The Province. Retrieved from http://blogs.theprovince.com/2015/04/20/hip-as-funk-farmhouse-ipa-moon-under-water-7/

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APPENDIX A

SOCIAL MEDIA EXAMPLES

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