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Repositioning Strategy Utica Club’s revamped image will position the brand as an affordable beer with a unique Upstate flair. It isn’t snobby or overly slick; it’s a good-time beer for having fun and making memories with friends. As a beer that’s unique to the region, it has a special emotional appeal and a nostalgia that connects with its drinkers in a way that bigger national brands like Pabst Blue Ribbon (PBR) or Miller High Life aren’t capable of connecting. In order to take full advantage of this connection, Utica Club’s product life cycle must be rebooted within a new, younger demographic that currently doesn’t have much awareness of the brand. Introducing the brand to the new audience will rely heavily on advertising, public relations and sales promotions. It will also involve revitalizing the brand’s distribution and visibility in liquor stores and other retail locations, since in order to remain competitive as an inexpensive, fun beer, it needs to be easy to find. The brand’s nostalgia appeal is comparable to that of PBR, and considering this, the rebranding effort does not require a new package design or graphic redesign. While Utica Club’s packaging appearance does not follow modern design trends, its old-fashioned look is not a weakness. Rather, its old-school design reaches far enough back to give the beer’s image a certain retro appeal that makes it stand out on the shelf. With the target demographic, trying too hard to look “cool” has a high potential to backfire and decrease both brand credibility and recognition. In order to avoid this risk and take advantage of Utica Club’s established strengths, the best move is to instead embrace the current label’s retro look and use it to enhance the authenticity of the brand. Another significant aspect of the repositioning strategy is a series of promotions that are highly targeted toward local culture, getting involved with events and places that are key parts of the Upstate identity. By connecting with happenings such as the Finger Lakes GrassRoots Festival of Music and Dance and the Boilermaker Race, Utica Club will further strengthen the authenticity of its connection with the target market through lifestyle marketing. In addition to this, smaller promotions at bars will be used to build the brand’s relationship and name recognition with the target demographics.
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Background Matt Brewing Company
-Founded in 1853 -Based out of Utica, NY -Second oldest family-owned brewery in the U.S. -12th largest brewing company in the U.S. -Parent company of the Saranac
Utica Club Brand
-First beer sold after the prohibition -Promoted in the 1950s and 60s by Schultz and Dooley -Referred to as “Uncle Charlie” -Parent company is Matt Brewing Company -Part of the “retro beer” trend
Utica Club Beer Quick Facts
-5.0% alcohol by volume (abv) pale lager -137 calories per 12 fl. oz. -$8.99 for a 12-pack
Strengths Brand
-Inexpensive -Low calories -Unique packaging -Young drinkers -Part of a “retro” beer trend
Company
-Matt Brewing Company -12th largest brewing company in US
Opportunities Brand
-Target audience -Promotions -Merchandising
Company
-80 years of business -Nostalgic brand
Weaknesses Brand
-Taste -Distribution -Convenience -Brand awareness -Recognition
Company
-Competitve Market
Threats Brand
-Competitors -Promotions and budget -Brand loyal customers
Company
-Internal focus (Saranac) -Internal restraints
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Competitor Analysis
Product Price Quality Image Availability Packaging
5 2 3 2 4
5 1 3 5 2
Awareness Market Share Brand Loyalty Brand Equity
2 1 4 4
5 4 3 2
TOTAL
27
30
5 2 4 5 4
4 1 3 3 2
4 2 4 4 4
4 3 3 2
3 2 3 2
3 2 3 3
32
23
29
Company
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Primary
Target Audience
Demographics Buying Motives Psychographics - Males and females 21-29 - Cheap beer, on a budget - Driven - College students - Consume more than once a week - Technically savvy - Low income - Recreational drinking with friends - “Hip” - Living in Upstate New York Meet Jay. Jay is a 22-year-old finance major at Syracuse University. During the summers, he works at his family-owned redevelopment business in his hometown of Rochester, NY. Some of his leisure activities include playing golf and trying out new restaurants and bars in the area – even reaching “foodie” status. He is an early-adopter when it comes to regional craft beers and is usually the one out of a group to introduce these products to his friends. With graduation just around the corner though, school is his first priority and he is always looking for ways to save money during the year while enjoying as many nights out he has left with college friends. Utica Club has been a sure-grab at Hess when he’s heading over to his cousin’s house to watch the Bills, since that’s what they remember their dads always drinking. Meet Michelle. Michelle is a 21-year-old physical therapy major at Ithaca College. Her classes keep her very busy, but in her spare time she manages to work a few hours each week in the campus mail room. Michelle is excited to have just turned 21, and to finally be old enough to explore the downtown bar scene with her friends, but since she’s on a tight budget she doesn’t have much money to spend on expensive drinks. She might start the night out with a colorful cocktail at a sit-down bar, but by the time her crowd gets to the dance club she switches over to drinking Utica Club because it’s inexpensive, more unique than the national brands, and she can usually convince her friends to split a pitcher. Utica Club is the beer that Michelle and her friends drink when they want to have a fun night out without spending much on drinks.
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Target Audience Secondary Demographics
- Males and females 45-64 - Living in Upstate New York - Steady, modest income - Married
Psychographics - Active lifestyle - Supports local
Buying Motives - Beer on a budget
Meet Peter. He is a 58-year-old living in Utica, NY. Peter lives with his wife and teenage stepson. When Peter is not working at CONMED Corporation he is hunting, fishing or hanging out with childhood buddies. Peter is a thrifty shopper and prefers to buy generic brands. When it comes to alcohol, he often purchases inexpensive local beer. If there is monetary incentive Peter is willing to try new brands, otherwise he sticks to what he knows.
- Recreational drinking with friends - Supporting a local business
Meet Andrea. She is 45-year-old living in Binghamton, NY with her husband and two young boys. Andrea balances her time between working for United Health Services and caring for her children. On the weekends she enjoys spending time with her family and friends. Between childcare and mortgage expenses, Andrea sticks to a tight budget when shopping for luxury items. She tries to support small-town brands by purchasing locally produced or grown items. Andrea often turns to sales promotions to aid her buying decisions.
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Consumer Promotions The Finger Lakes GrassRoots Festival of Music and Dance is held annually in Trumansburg, New York and supports arts, education and the fight against AIDS. This event would be a good opportunity to generate an attractive benefit while reaching the greatest numbers of consumers in a promotional campaign. We would offer this premium buy-one-get-one-free deal featured as a ticket when a consumer buys a Utica Club inside the Grassroots Official Festival Beer Garden. The beer garden is the only area that alcoholic beverages are allowed to be purchased throughout the festival grounds, so the concertgoers will have relatively limited options inside the tent, with competitors also providing deals. Consumers who are not aware of the brand may be more willing to buy Utica Club with this type of incentive, since it lowers the risk of trying a new product. This will give Utica Club a competitive edge, especially since most will be in groups and buzz of the offer can be easily spread around. Utica Club will sponsor beer pong tournaments at popular college bars throughout Upstate New York. This opportunity will allow our primary target audience to interact with Utica Club in a fun and competitive atmosphere. The promotion will engage consumers, increase brand awareness and create a buzz about Utica Club beer. Each team that enters the tournament will receive its first pitcher of Utica Club at a discounted price of $4. Providing this deal incentivizes people to join the tournament and purchase Utica Club over competing brands. Throughout the night, bartenders will give away free Utica Club merchandise, including t-shirts, bottle openers and koozies. Since college students usually respond very positively to free items, providing free, branded merchandise to the target market will help generate further brand awareness and a generally positive brand image. Contestants will also have the opportunity to win free pitchers of Utica Club just by participating in the tournament. For example, the team with the most creative name will receive a pitcher of beer for free. This adds value and creates incentive to participate in the tournament. The champions of each beer pong tournament will be awarded $100 courtesy of the bar. In addition, they will receive a vouchers for two free cases of Utica Club to share with their friends. This will make a lasting impression on both winners and their peers. Sponsoring beer pong tournaments around the region will engage our primary target audience, increase brand awareness and associate the brand with the desired “fun, laid-back night out� image.
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Consumer Promotions Join the Club Utica Club aims to position itself as a fun, laid-back beer for drinking with friends in a casual setting. As observed in primary research, many first experiences with Utica Club were through friends’ houses. As a local brand that has a nostalgic element, Utica Club is a beer that relates to both good memories from long ago and the potential to create new ones today. The Join the Club Premium deal is a buy-one-get-one-free deal that encourages bar goers to grab a Utica Club at the bar and share the memory with a friend at no cost to them. In doing so, this promotion will spread the brand name through word-of-mouth and associate it with the good times that are such an important aspect of the brand image.
Trade Promotions Utica Club Partner Program Utica Club will arrange promotional discounts to work with bars and beverage centers that are popular with the target demographic. The discount will be structured in incremental tiers as follows; if the reseller purchases three cases they will be a Utica Club Fan and receive a 5% discount, if they purchase five cases of beer they will be a Utica Club Supporter and receive a 10% discount and if they purchases seven or more cases they will be a Utica Club Partner and receive a 15% discount. This will push bars and beverage centers to purchase Utica Club in bulk and sell higher quantities to customers, with increasing discounts based upon the quantity purchased. In addition to these discounts, bars will also be given Utica Club promotional items such as branded t-shirts, beer glasses and bottle openers. The promotional materials will raise brand awareness with bar-goers, while bulk discounts will help push the idea of Utica Club as the inexpensive beer of choice among participating bars.
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Trade Promotions The Club Barrel For the first two weeks of December, Utica Club will celebrate the anniversary of the end of the prohibition in grocery stores across the region. Utica Club was the first beer sold after the Prohibition’s thirteen-year ban on alcohol. To commemorate the lift of this ban, Utica Club will set up displays in grocery stores and liquor stores to increase brand awareness and sales. The displays will be set up in the beer aisles of high traffic grocery stores. A large, rustic barrel of Utica Club beer will be the centerpiece of these displays. On Fridays and Saturdays, sales representatives will hand out free samples of Utica Club to customers who are of age. Representatives will also teach customers the proper way to fill up a growler of beer. The first one hundred customers to purchase a growler full of Utica Club will receive a free customized growler. The display will build relationships with distributors and draw in both new and existing customers. Research shows that 60% of purchase decisions are made in stores and 52% from in-store ads. The unique display will increase sales and create thousands of impressions. It will also generate a buzz that will increase brand awareness.
Sales Force Promotions The Club Bonus Bonuses will be used as part of our sales force promotion strategies as a way to motivate the sales force and reward outstanding performance. Because of the differing markets encompassed in this promotional campaign, Utica Club representatives will earn a bonus after reaching a target amount of sales in their specific sales region. This will be paid out quarterly to the representatives so that they are able to better chart their performance throughout the year.
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Sales Force Promotions The Club Getaway Since Utica Club is a local brand and takes pride in it its local heritage, we’ve decided to take a localized approach to the incentive trip. The top two performers in sales, on a proportionate scale, will receive a weekend getaway on dates of their choosing to The Point on Saranac Lake, a 5-star cabin-style Bed and Breakfast. From the time they arrive, they will be treated to the best brews that the Matt Brewing Company has to offer and a customized gift basket on the first night of gourmet foods, sweets and wine. This trip will be all expenses paid. Top Performers will be transported, with a plus one, to and from The Point via a car provided by the company. They will also be allotted $600 for food and beverage throughout the weekend and $750 in discretionary funds.
Other Promotions Public Relations
Social Media Re-vamp In addition to these promotions, Utica Club will also be implementing social media strategies to the mix, since both target audiences are active users. Facebook and Twitter will be the main platforms for building awareness of Utica Club and interacting with fans and followers in a convenient and fun way. The content will reinforce promotions in tailored posts unique to the current strategy and medium used. Additional promotional offers such as sweepstakes, contests and other special deals associated with the consumer and trade promotional campaign will only be available online as incentive to view the various social media accounts. Other content will surround creating forums for a brand community and getting feedback on how consumers are reacting to Utica Club promotions.
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Other Promotions The Club Race Every year over 17,000 participants gather in Utica, NY to raise money for charity at the Boilermaker 15K Road Race. In 1978, Earle C. Reed founded the race as a way to give back to the community. Today, the Boilermaker Race offers numerous events for participants of all skill levels. It has turned into a nationally recognized weekend long event that attracts over 40,000 people. Utica Club will sponsor the Boilermaker Weekend to increase brand awareness and generate goodwill toward the brand. Sales representatives will sell beer at large tents around the race. Utica Club will run a one-time promotion that provides customers with their tenth beer of the weekend for free. The first hundred participants to finish from each division will receive a free celebratory beer. Throughout the weekend Utica Club will also giveaway merchandise including t-shirts, koozies and sweat bands. Sponsorship of the Boilermaker Weekend is a great opportunity for consumers to interact with Utica Club in a vibrant environment. Thousands of people will be exposed the brand in just three days.
The Club Game Schultz or Dooley? Is it your lucky day? With the Utica Club Game App you will be able to play an Instant Sweepstakes game everyday for a chance at a Free 6-Pack at a store, or a free bottle from a bar. Schultz and Dooley will then tell you where the closest retail location is that you can pick up a pack of your new favorite good-time brew sporting the sweet taste of “free beer.” Once open, the app will show cut outs of Schultz and Dooley that change every day to keep it interesting, and based on if it’s a holiday or not they might be special edition characters. The user will select Schultz or Dooley and have a 50-50 shot at winning, every day. Users who are particularly interested in winning will be reminded of Utica Club every time they play.
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Other Promotions Native advertising
would be used to help reach the younger end of our demographic, and to help emphasize the retro feel and local appeal of the brand. Since Buzzfeed stories (and sponsored stories) generally take the “listicle” format, an example of a possible story would be 21 Things Only Upstate NY People Understand. Such a story would be a list of well known upstate quirks that people can relate to (and thus feel inspired to share) accompanied by funny GIFs.
Radio is an extremely efficient way for companies to reach their target audience. The
medium has a wide range of stations that attract extremely loyal customers. Most of these stations are locally run and provide a great opportunity for small businesses to increase brand awareness. Utica Club will run one commercial during morning drive on weekdays in Syracuse’s DMA on 1-100 Classic Rock and Hits 103.3. Commercials will feature Utica Club’s current consumer promotions.
Since Utica Club is using Facebook as advertising in this campaign, and because both primary and secondary target audience are active users, the brand will be able to effectively measure cost per thousand impressions. The ads increase brand awareness and provide targeted and customizable messages unique to individual markets and audience. The strategy here relies on a “lifetime budget” plan for implementing ads onto Facebook. The finite budget is $40,000 for the 1-year campaign. Facebook’s system will automatically spread our budget out evenly across this time period and use a cost per thousand impressions bid (CPM). This way, the brand will only pay for the impressions it receives up to a predetermined amount The real-time cost of these ads can be viewed from the provided “Ads Manager,” service.
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The Club Budget Itemized
Quanity Unit Price Cost
GrassRoots Festival
Beer Materials Donations Beer Pong Tournament Keg of Beer
Join The Club Trade Allowance
Display
Bonuses Incentive Trip
Native Advertising Boilermaker Weekend
iPhone Application Radio Facebook BUDGET
Adult 3/4 Sleeve Baseball Shirts Ringer T-Shirts Koozies Keychain Bottle Openers Allocation Beer Glasses Bottle Openers Adult 3/4 Sleeve Baseball Shirts Ringer T-Shirts Barrels of Beer Cases of Beer (Per Location) Materials Customized Growler Allocation Lodging Food Gift Baskets Travel Miscellaneous Funds Buzzfeed Story Adult 3/4 Sleeve Baseball Shirts Ringer T-Shirts Koozies Keychain Bottle Openers Sweat Bands Production Maintenance I-100 Classic Rock Commericals Hits 103.3 Allocation TOTAL
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1,200 1
$0.60 $2,124
10
$125
200 200 200 200
$15.49 $14.99 $1.14 $1.20
200 100 100 100 10 10 10 1,200
$3.06 $2.25 $15.49 $14.99 $125 $1,000 $1,000 $6.93
2 2 2 2 2 1 1,000 1,000 2,000 2,000 1000 1 1 260 260
$5,000 $600 $300 $400 $750 $25,000 $15.49 $14.99 $1.14 $1.20 $1.59 $10,000 $1,000 $40 $10
Total
$124 $2,124 $2,2500 $5,344 $1,250 $3,098 $2,998 $228 $240 $5,000 $797.05 $225 $1,549 $1,499 $1,250 $10,000 $10,000 $8,324 $10,000 $1,200 $600 $800 $1,500 $25,000 $15,490 $14,990 $14,990 $2,400 $1,590 $10,000 $1,000 $13,000 $2,600 $40,000
$7,814 $5,000
$4,070
$20,874 $15,000
$14,000 $25,000
$36,750 $11,000 $15,600 $40,000 $200,452
The Club Swag
Club Koozie\ $1.99
Club Sweatband $2.99
Baseball Tee $18,99
Bottle Opener $4.99
Ringer Tee $14.99
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