Martin Cove Brewing Company

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Microbrewery Business Plan

Market Analysis Summary

Over the past ten years, regional microbreweries have gained market share of beer sales in the state of Oregon. A number of regional brands have moved from speciality market to the supermarket. The numbers have been impressive. At present, regional microbrews represent 10% of beer sales in Oregon. This represents a 35% increase over sales numbers for the year 2000. Most importantly, the increased sales have occurred in the affluent communities in Oregon's metro areas.

Oregon's population has grown by 15% annually for the past ten years. Most of the growth has been in response to the explosion of hiring in the high-tech industry. The growth has added to the customer base that purchases regional microbrews. Traditionally, microbrews have been favored by young professional men and women in their late twenties and early thirties.

Another growth area that has had an impact on microbrew sales is the dramatic enrollment increase in the state's colleges and universities. Currently, there are 60,000 college students in the cities of Eugene, Corvallis and Portland. Microbrews represent 35% of beers sales in the campus communities.

4.1 Market Segmentation

Martin Cove Brewing Company plans to focus on the following market segments:

  • Customers in university campus communities.
  • Professional men and women aged 25 - 35 living in affluent metro communities.

Marketing and promotional activities will be grassroots based, rather than more expensive mass marketing. Martin Cove will reach these people through sponsorship of local entertainment of cultural events, advertising in small niche magazines targeted towards young "fashionable" professionals and sponsorship of activity groups.

Market Analysis
2002 2003 2004 2005 2006
Potential Customers Growth CAGR
University Communities 15% 100,000 115,000 132,250 152,088 174,901 15.00%
Affluent Metro Communities 10% 400,000 440,000 484,000 532,400 585,640 10.00%
Total 11.06% 500,000 555,000 616,250 684,488 760,541 11.06%