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The Bottlecap

Market Analysis Summary

The Northwest is the Mecca of microbrews and home brewing, and in recent years there has been a surge of interest in craft beers. That is why we believe The Bottlecap, a speciality beer tavern, will flourish in the city of Eugene. Our target markets include beer connoisseurs, professionals, and college students. The identification of these three markets will help us to better direct our advertising and marketing efforts.

4.1 Market Segmentation

Our numbers are based upon the approximate population of Eugene and Springfield. Because many people are not drinkers, we decided upon the number 100,000 for the total of people considered available customers. We then segmented the available customers into the following groups:

Beer Connoisseur: These people will be drawn to The Bottlecap because of their love and passion for beer. The main appeal to this segment will be the large number of hard-to-find beers that are available at our establishment.

Professionals: The general bar-attending public from Eugene. This group will be drawn to the bar after work to relax in a friendly and classy atmosphere.

College Students: University of Oregon and Lane Community College students. More bargain marketing will be aimed at the segment of the market.

Microbrew bar business plan, market analysis summary chart image

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Beer Conniseurs 12% 20,000 22,400 25,088 28,099 31,471 12.00%
Professionals 8% 30,000 32,400 34,992 37,791 40,814 8.00%
College Students 10% 20,000 22,000 24,200 26,620 29,282 10.00%
Other 2% 30,000 30,600 31,212 31,836 32,473 2.00%
Total 7.60% 100,000 107,400 115,492 124,346 134,040 7.60%

4.2 Target Market Segment Strategy

Both advertising and word-of-mouth will play a big part in the success of The Bottlecap. Therefore, we will strive to appeal to both new and old customers with a unique advertising campaign, including an online presence that will allow regulars to vote for which beers will be featured each week, as well as a friendly atmosphere that will keep the customers coming back.

4.3 Service Business Analysis

The pub and bar industry in Eugene has grown steadily in its past years. Many factors contribute to the large demand for good beer in Eugene. The climate in Eugene is extremely conducive to beer consumption. Current trends in the Northwest reflect the popularity of unique, quality microbrews. In short, Eugene is a haven for beer lovers.

Due to intense competition, bar owners must look for ways to differentiate their place of business from others in order to achieve and maintain a competitive advantage. The founders of The Bottlecap realize the need for differentiation and strongly believe that combining a bar with a classy and entertaining atmosphere is the key to its success.

4.4 Main Competitors

Since the business will be located near the University of Oregon campus, our three main competitors will be Rennie’s Landing, Taylor’s Bar & Grill, and Max’s Tavern. During the first six months of operation we will aggressively advertise ourselves to University students to differentiate ourselves from the competition.