Situation Analysis-Growler U Growler Goggles Summary Growler University is a growler fill station set to open November 15 th on 1365 Villard Street in the University district. The Founder, Mark Smith, dreams to franchise Growler U out to universities and colleges nationwide. He currently has four locations in mind: OSU, WSU, UW, and UO. Oregon is the proving ground for his business model. “If it doesn’t succeed here, it won’t anywhere” (Mark Smith). Mark wants the tap house to be more than a growler filling station. Mark is passionate about the craft of beer and wine brewing. He wants Growler U to stand for education, promote the tap experience over bottles and cans, and combat the stereotype of college alcoholism and the notion of, “party ‘til you puke”. To top it all off Mark wants to be known for a speedy and friendly service in an optimum location for beer and wine. The challenge lies in conveying all of that into a $5,000/month advertising budget. With their location in mind, Growler U will be fairly small serving mostly as a fill station with occasional events such as beer and wine tastings. Current works are in production to obtain the parking lot surrounding the building that would allow for outdoor beer gardens and future tailgating events. Obtaining the parking lot rights will give them the opportunity to ascertain more sales after big events at Matt Knight Arena and during sporting events such as the Duck’s football season. Growler U as a service will provide growlers at the standard sizes of 32 and 64 ounces, as well as pints. Customers will also be able to purchase flights of craft, domestic and micro beer, wine, and cider. Non-alcoholic beverages such as Kombucha and root beer will also be for sale. They have no intention to sell food in the store but due to liquor laws, will need to let people bring in their own food. There is also the possibility of letting customers order food to the Growler U location. Due to the nature of their service, they not only compete with other growler fill stations, but also bars, pubs, and supermarkets where buying beer and wine is cheap. Growler U is trying to create a university and sports connection while having a vast selection and quick service whereas its competitors can only claim some of those qualities.
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Growlers 32 and 64 oz. Product Acts as a container for beer, wine, cider, and other beverages Most are made out of glass or stainless steel (both reusable), paper ones available Could use it for non-alcoholic purposes. Can be used as a container.
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Can be customized in a variety of different fashions. Beer and wine is consumed year long. Projections due to events at Matt Knight arena, athletic events, and the University’s schedule predicts that sales will be most high during fall, winter, and spring. Price* *Prices are varied and not set until further information can be provided from Growler University. “Growler U” Growlers: 32oz will range from $4.99 to $10, 64oz will range $10 to $17.99 Growler prices based on online growler prices from various companies. Anytime Beer: 32oz for $7, 64oz for $12 Specialty Beer: 32oz for $10, 64oz for $14 University Brew: 32oz for $8.99, 64oz for $13 Domestic Beer: 32oz for $4.99, 64oz for $10 (price suggestion based on Growler U presentation) Wine fills: 32oz will range anywhere from $18 to $40 depending on the wine. 64oz will range anywhere from $30 to $60 depending on the wine. Cider fills: 32oz will range from $6 to $10, 64oz will range from $ Non-alcoholic fills: 32oz will range from $2 to $10, 64oz will range from $2 to $10. Non-alcoholic fill prices are based on in store pricing of soda. A 1 liter of coke is $1.90 while a 2 liter of coke is $1.00. 1 liter is 33oz of liquid, 2 liters is 66oz. Place Growlers are sold at the Growler U location. Customers will also be allowed to bring in their own growlers for filling. Growlers are sold both in store and online. However, Growler Universities’ growlers will only be sold in store. Growler’s sold online do not come filled. Pints Price Anytime Beer: $4 to $8 Specialty Beer: $6 to $10 University Brew: $4.50 Domestic Beer: $3.50 Wine, Cider, & Non-alcoholic drinks: $3.50 to $8
Mini Kegs Price: Ranges from $17.99 to $24.99 5 liter kegs that will hold craft and domestic beers and possibly root beer. Widmer, Heineken, and Newcastle sell mini kegs there is also a root beer keg by Vigils. All could be sold in store. Promotions: Current strategies are limited to Social Media and alternative advertising. Alternative Advertising: Growler U bike and car. Both have been decked out in the Growler U logo as well as the bike
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being able to carry 3 growlers that feature UO logos. The bike will be ridden around town to promote the new store and eventually be given away. Social Media: Facebook Actively posting 103 likes Posts are about Ducks sports, mainly football, support, local breweries promotions, progress on opening their location, and beer and wine news. Twitter Actively posting 240 Following 31 Followers 33 Tweets Their tweets are generally the same as their facebook posts. Current promotions are the Growler Bike giveaway as well as advertising on the Growler U custom car.
Competition
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Direct Competitors: Tap and Growler Grand opening was October 4, 2013. The Tap and Growler is located at 207 East 5th Ave This business formed because they saw the increase in people who wanted to be able to drink craft beer in growlers and the increase of popularity of wine on tap. Consumers are able drink craft beer or wine at this tap house while enjoying a variety of food and fun. All of their drinks are only available on tap, no bottles or cans, and they sell reusable containers that are used to take your drinks home. They also use local food sources so they can minimize waste, which is something that is important to consumers. Their tap lists includes craft beer, wine, cider, mead, kombucha, cold brewed espresso, craft soda, sake, and craft root beer. The Tap and Growler is family friendly and allows consumers to sit down and enjoy good drinks, food and sports or consumers can fill their growlers quickly to enjoy their drinks at home. On average to fill a 32 ounce growler of beer it will cost consumers in between $6-$8 and their 64 ounce growlers range from $8-$14. Consumers can also fill their growlers with wine, cider or other non-alcoholic beverages. These fill prices range from $8-$59. Social Media Twitter 67 Followers 10 Tweets
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381 Following Facebook 919 likes Actively posting Running Promotions, posting specials with game days, articles, which games they’ll be on at the store, etc. Growler Nation Growler Nation is Eugene’s first craft beer fill station that is located in the Coburg Station that open in June 2013. They have 30 taps and offer seasonal options. Growler Nation is a get in and get out filling station however they do offer sitting so consumers can taste beers before filling their growlers. They have happy hour Monday thru Friday that offers $1 off pints and Flight Nights on Tuesday’s and Thursday’s that allows consumers to choose their own flights and sample their tapped beer. Their tap list includes craft beer, cider and Kombucha They run promotional events at are specific to their store. The October event is ”Fresh Hop Fest” that is honoring the hop harvest time. They are pairing this event with fresh hop beers on tap that are in limited supply. Advertising is through social media and through discounts such as coupons in the Eugene Saver. Social Media Twitter 42 Followers 0 Following 58 Tweets Since September 26, 2013: 1 tweet a day Facebook 735 likes Actively posting Events happening at Growler Nation, game day information, new things that are tapped, etc. The Growler Guys The Growler Guys is located at 472 West 7th Ave. The Growler Guys originated in Bend by a father and son pair. These master brewers of Americans and certified Beer Stewards wanted to give their consumers value while offering the best tasting beer possible. Their growlers are filled with techniques that allow them to be oxygen free, foam free and long lasting. They have two successful stores in Bend and Eugene marks their third location. They currently have 48 taps that includes craft beers, cider and sangria. They have 32 oz and 64 oz growlers and they allow you to taste as many brews as you would like
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before selecting one to fill your growler. They offer specialty food items that pair nicely with craft beers that you can enjoy at the store as well as special events and tastings. They have promotions that include “buy 8- get a free bottle or swag.” Advertising is through social media and through discounts such as coupons in the Eugene Saver. To fill your 64 ounce growler it will cost consumers in between $8.99 to $21.99 depending on what is available and what is in limited supply. Social Media Growler Guys Blog Twitter (all three locations) 572 followers 508 following 1135 tweets Facebook (all three stores) 3810 likes Actively posting Events, pictures, trivia, new taps at all three of their locations. Pinterest 16 boards 460 pins 267 likes (all three locations) Instagram (all three locations) 58 posts 163 followers 111 following Indirect Competitors: 16 Tons A Tap House located at 265 E13th and 2864 Willamette. Established in 2010 and identifies as a gastropub and cafe. It is a locally owned and family operated business. Has both beer on tap and in bottles for sale. At their E13th location they offer 18 rotating taps along with 600 types of bottled beer, cider, and wine. At the Willamette location they offer 12 taps with 75 select bottles of beer, cider, and wine. Growler & Mason jar fills. Average price for a 32oz is $5, cheapest is $4.5, and most expensive is $18. Average price for a 64oz is $10, cheapest is $9, and most expensive is $36. Sells food in cafe atmosphere as well has a restaurant-like feel where patrons can sit down and enjoy food from their menu or have food delivered for lunch or dinner. They feature events such as music concerts and cheese tastings. They also do promotions such
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as holding events to feature local breweries and special tap tastings. Promotions also include social media snapshots of discounted prices and events. Social Media: Twitter (for both locations): 1547 followers 1024 following 6303 tweets Facebook (for both locations): 2971 likes Actively posting Tap list rotations, photos of what’s in stock as well as discounts for followers, event listings and special promotions. Instagram (both locations): Actively posting 130 posts 75 followers 123 following Foursquare (both locations): On Foursquare but not doing much Pinterest (both locations): 5 boards 33 pins 0 likes 6 following/1 follower Not active on site Supermarkets Due to Growler University’s quick service fill atmosphere, they also compete with supermarkets where customers can go in and buy their beer and wine quickly and at mass amounts without the hassle of waiting too long for service. Supermarkets are also franchised, such as Safeway, and can easily keep a business model that’s consistent over various states as well as a customer service model that’s friendly and derives on the “customer-is-always-right” policy. For promotions, supermarkets have coupons and price drops based on seasonality as well as overstock. Furthermore because people actively seek out supermarkets for food, this allows convenient purchases of beer and wine with their grocery shopping list, that could otherwise be sold from Growler U.
Growler University Target Audience Growler Goggles Advertising Recommendation Summary Demographic Primary Target: 24 to 35-year-old males living in Eugene, Oregon, as well as in large University
or College-like communities within the West Coast. They are generally non-Hispanic, white, and have an average household income of $25K-74.9K.1 Pen Portrait Meet Kevin: Kevin is a 28 year old white, non-Hispanic male. He works as a first-line supervisor at a call center for a bank in Eugene where he makes on average $30K a year. He lives in a two bedroom apartment, drives a silver 2012 Honda Accord, and constantly has friends and neighbors over to hang out. He graduated from the University of Oregon with a business degree almost five years ago, considers himself to be a huge Oregon Duck football fan, and religiously watches every game on T.V. Kevin likes to drink all types of alcohol, though beer and wine are his top two choices, in that order. He never drinks alone and prefers to drink either at home or at a friend’s place. When faced with purchasing a 6 pack of craft beer over a 12 pack of Bud Light, he typically chooses the Bud Light because cost-wise it’s cheaper for him to share the 12 pack of domestic over the 6 pack of microbrew. While Kevin normally bases his purchases on this, on occasion he will forgo costs and frequent a microbrew choice to try amongst friends or if he wants to try something new for himself. When he does go to a bar, he typically buys a pitcher of Widmer or Blue Moon to share. He does this because he knows that when he purchases either one he’s buying something he knows he already likes. To him, these beers offer a better quality than the beer he normally chooses and he doesn’t have to pay too much. While Indian Pale Ales (IPAs) are his favorite, he enjoys trying all types of beer and takes advantage of having several breweries located within the city, noting his favorite from each one. When he is not working or hanging out with friends or neighbors, Kevin plays “Call of Duty” on the XBox 360 against his friends via the online feature. It allows him to stay in touch with the friends he has in other cities while being able to show off his skills in a first person shooter game. While on the internet, Kevin goes to websites such as ESPN and Yahoo Sports. He also regularly checks his Facebook. While he rarely makes any status updates, he will post a photo or two of his outings with friends at the bar, at home, or at the beach. Secondary Research Primary Target The primary target audience for Growler University is men between the ages of 24 to 35; they’re considered the Millennials. From Mintel, the suggestion for the sweet spot demographic for craft 1 Mintel Report. On-Premise Alcohol Consumption. “Cluster Analysis”. (2013).
beer is 24-35 year old white, non-Hispanic males.2 This category will become more attracted to craft beers due to “additional experience and access to more disposable income.” 3 When it comes to purchasing, beer and wine are the biggest choices amongst this group but will buy spirits or other flavored alcoholic beverages. Mostly this age group will purchase an alcoholic beverage for home-based consumption because “they have heard of, read about, or were recommended to it.”4 Though wine is not a main focus of this group, they’re most likely to be the purchasers in higher frequency when compared to the secondary target audience. 5 They will especially purchase wine in “a pursuit of lower priced products.”6 Thus men of this age group will most likely be purchasing both wine and domestic, micro, or craft beers. This target is considered to be mostly “Big Drinkers” which is defined as men who have purchased an alcoholic beverage in the last month.7 Big Drinkers are more likely to agree that being with friends is the best part of going out, experience is key, and likely to order tasting flights or samplers so they can try varieties. With beer and wine being the top two choices, members of the Big Drinkers group have an increased amount of drinking at home rather than on premise due to the slow rise of the economy.8 Men of this age group are prime targets for growlers because of the ability to take home beer with them instead of having to drink at location. Primary Research Observational Research In our observations of The Growler Guys, 16 Tons, and Growler Nation, we based an age range of mid 20’s to late 50’s at each location. The Growler Guys: Their location was by far the busiest of all three. Customers came in to a large bar where four women bartenders greeted you as well as a single male manager. While they were very knowledgeable about their beer selections their customer service was overwhelming and felt forced. The bar had limited seating, all of which was taken by people who looked to be in their upper 40’s to 50’s with an equal amount of men and women. Those who did 2 Mintel Report. Craft Beer. “The Consumer-Usage, Purchase, and Occasions”. (2012). 3 Ibid. 4 Mintel Report. Alcohol Consumption at Home. “Cluster Analysis”. (2013). 5 Mintel Report. Wine. “Frequency of Wine Consumption”. (2013). 6 Mintel Report. Wine. “Scope and Themes”.(2012) 7 Mintel Report. On-Premise Alcohol Consumption. “Cluster Analysis”. (2013). 8 Mintel Report. On-Premise Alcohol Consumption. “Cluster Analysis”. (2013).
come in to get their growlers filled were roughly in their 40’s and mostly men. There was a man and woman who was roughly in their mid-20’s chatting. After a little time passed, two women came in and left without buying anything after noticing there was no place to sit. 16 Tons: This location was moderately busy. Many people were wandering around the store browsing the bottled beer selection. Only one male attendant was on staff and would only help if you came to him with questions. This location had mostly men in their mid-20’s with a few in their late 40’s to early 50’s. There was one woman there who seemed to be studying and looked to be in her mid-20’s. Only one male customer was there to fill up two growlers and he looked to be roughly 24. Seating was ample. Growler Nation: Lacked business but overall had the best customer service without being overly helpful or forced; greeted us when we came in and thanked us for coming when we left. When we arrived there were two males around 30 years of age drinking pints and before leaving, one purchased a growler. A couple, male and female, was chatting with the bartenders while enjoying a pint. A younger couple came in and filled a growler, they looked to be of 25 years of age. Seating was spacious. How Research was Conducted Secondary research was gathered from four separate online Mintel Reports through the Mintel database. These reports featured craft beer, wine, on premise, and alcohol consumption at home, which gave insight to demographics, drinking culture, and habits of male drinkers, which in all four reports were the highest respondents. However reports on Alcohol Consumption at Home and On-Premise were used the most because it reflected the closest to what growlers would replicate; beer-to-go. They also helped in determining what type of consumer would be most likely to buy growlers and focused our target audience to that of at-home-drinkers. To understand more about the culture around growlers and alcohol popularity, we tracked and read internet forums that discussed beer and wine, as well as online journalistic blogs and magazine sites, ISSUU.com, that targeted beer, wine, and growler topics from around the U.S. Primary research has been conducted by doing observational analysis of direct and indirect competitors of Growler University, located in Eugene, OR. Our team of four visited 16 Tons, The Growler Guys, and Growler Nation, bought beer, scoped out the atmosphere, and took note of who was frequenting these locations. From there we gathered information to look at an age range, which surprisingly was higher than what we had previously thought, and took note of each location’s popularity or lack thereof. We sat down and observed for around an hour at each place. To gain a working hypothesis of our target audience’s pen portrait, an in-depth interview with three potential target persons was organized and a better understanding of who we could be
looking at was developed. Other questions at the moment pertain to media planning as well as understanding more about our own client and what we have to work with: 1. Should Growler University go more towards an educational or historical feel? Or a combination of the two? 2. What are the best channels for Growler University to advertise?
Growler University Creative Brief Growler Goggles Background/Overview: Growler University is a growler fill station that promotes education through growler fills of ontap beer, wine, and cider. At-home-drinkers will enjoy the quality of filling up growlers at their tap station over buying bottles or cans, and convert beer and wine novices into experts through tastings and flights available in store. Primary Target Audience(s): At-home-male-drinkers within the age of 25 to 54-years of age, with emphasis on the 25 to 34 year-old age range. These are men living in Eugene, Oregon. They are generally non-Hispanic, white, and have an average household income of $25K-74.9K. Meet Kevin: Kevin is a 28-year-old white guy. He works as a supervisor at a call center for a bank in Eugene and constantly has friends and neighbors over to hang out. He likes to drink all types of alcohol, though beer and wine are his top two choices. He never drinks alone and prefers to drink either at home or at a friend’s place. Kevin normally purchases cheap beer in large quantities to share, but on occasion he will forgo costs and frequent a microbrew choice to try amongst friends or if he wants to try something new for himself. Single Most Important Thought Growler U creates a community of beer lovers to gather and experience the craft, knowledge, and know-how of beer. Brand Platform Brand Promise: To provide a University experience in purchasing growlers Brand Proposition: Growler U allows at-home-male-drinkers to take alcohol-to-go with a university connection. Brand Personality: Loyal, Friendly, Trendy, Knowledgeable, School-Spirited. Brand Target: At-Home-Alcohol-Consumers: Younger men who like to drink at home amongst friends or at other social events, are typically social drinkers, and want to share their experience of beer, wine, and cider, with others. Brand Position: To provide an educational experience in relation to the University. Key Consumer Take-Away: Growler U not only fills my growler with micro and domestic beer but is a place that empowers me to become more informed of the craft behind the brew.
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Reasons To Believe: University-oriented experience through “GTF” and “Professor” staff titles Professors in craft Unique selection of locally brewed craft Beer education