Martin Cove Brewing Company
Strategy and Implementation Summary
The first step in the expansion plan is to introduce the Martin Cove Brewing Company product line into the selected areas. New sales representatives will be assigned to the Portland tri-county area and the lower Willamette Valley area (Corvallis and Eugene). The retail marketing focus will be on speciality stores that carry regional microbrews. Martin Cove Brewing Company will promote sales by reducing wholesale prices 12% for the first three months of sales.
Martin Cove Brewing Company products will be distributed in the Portland tri-county area by Cascade Distribution. In the lower Willamette Valley area, McKenzie Distribution will carry Martin Cove Brewing Company products.
Martin Cove Brewing Company’s new product, a traditional German Marzen style lager, is unique enough in taste and processing to be attractive to any business that serves beers to customers. The added advantage is that the lager has no competitors. Martin Cove Brewing Company will promote sales by reducing wholesale prices 12% for the first three months of sales.
5.1 Sales Strategy
Martin Cove Brewing Company will apply the same sales strategy that built sales in Medford: remove all obstacles between you and the customer. Once the customer tastes the product, he or she will know the quality and craftsmanship that goes into every bottle of Martin Cove.
Martin Cove Microbrews will be available in bars as well as retail outlets, such as local markets and corner stores. It will also aim to distribute through supermarkets, but it is envisioned that getting shelf space in national supermarkets will be more difficult and more expensive.
5.1.1 Sales Forecast
The following is the sales forecast for the next three years.
| Sales Forecast | |||
| FY 2003 | FY 2004 | FY 2005 | |
| Sales | |||
| Microbrews | $890,000 | $1,068,000 | $1,281,600 |
| Other | $0 | $0 | $0 |
| Total Sales | $890,000 | $1,068,000 | $1,281,600 |
| Direct Cost of Sales | FY 2003 | FY 2004 | FY 2005 |
| Microbrews | $267,000 | $320,400 | $384,480 |
| Other | $0 | $0 | $0 |
| Subtotal Direct Cost of Sales | $267,000 | $320,400 | $384,480 |
5.2 Competitive Edge
Martin Cove Brewing Company’s competitive edge is as follows:
- Quality Process and Ingredients: Our beers are the highest quality and include only the finest natural ingredients. Carefully selected for their distinctive flavor profile, the beers are classically fermented and cold lagered for a smooth, bold taste. We use fine North American two row barley malt in addition to imported Belgian specialty malts, generally regarded as among the finest malts in the world. We use hops from the Pacific Northwest in our ales, and use imported German hops to give our Martin Cove Lagers their distinctive taste.
- Handcrafted: Our beers are stored in small 20 barrel batches under the close personal attention of our brewers. The latest brewing equipment and technologies are seamlessly combined with traditional brewing methods to ensure consistently excellent taste, whether packaged in bottles or draft kegs.
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