McKnight's strategy is to leverage its existing advantages of location, attractive 8 p.m., established clientele, and reputation; and couple this with its new brewery to create a value added product/service experience to its existing customers and to enhance appeal to attract the beer appeal to McKnight's. In short, the company seeks to create a value-added approach to its drinking establishment and bring in new customers to achieve both a higher margin than previously experienced and increase overall profitability through new customers.
McKnight's plans to advertise its new brew pub through newspaper and magazine articles, focusing primarily on entertainment and lifestyle publications. In addition the pub will run ads in local journals and plans to put up four billboard advertisements. Past experience with other taverns and brew pubs indicates that radio is an especially useful tool to this industry and management plans to run ads with three of the local radio stations most listened to by young professionals aged 25-40. In order to ensure the maximum efficiency from this campaign, McKnight's has retained the services of an advertising consulting firm. Ads and articles are scheduled to begin approximately one month after the brewery begins operation.
Pricing of our products must remain initially competitive with our rivals. Management does however plan to price our in-house beers somewhat more than our other products to reflect production costs. This is typical within the industry and can create higher margins. If McKnight's is able to capture a significant number of newer customers, then management will consider a rise in overall prices to reflect our established unique position.
These illustrations and tables show our present sales forecast.
This table lists important program milestones, with dates and managers in charge and budgets for each. The milestone schedule indicates our emphasis on planning for implementation.