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1 Fall Backwoods Brewing: Marketing Proposal Emily Glaser, Janelle Li, Anna Stucki, Chelsea Newgard, Stacy Sanchez, Zalena Carr University of Portland 15
2 Introduction Since Backwoods is currently in the process of moving brewery locations and expanding operations, we know that there might not be enough time to devote toward necessary marketing efforts. So, we have focused in on three strategic recommendations around your marketing needs that we have made as easy to implement as possible. We understand that your primary business objective is to pay off the debts you currently owe and we believe that our game plan of specific marketing strategies below will let you achieve an increase of sales and gross profit. Our key objectives are to help better define your brand, create a consistent brand image and strengthen brand power, and establish new partnerships. The importance of understanding your target market and establishing a core brand identity is key to creating a Backwoods family. Through primary and secondary market research, we have provided these simple yet important recommendations that should be implemented as soon as possible. We have developed a brand story that all employees should be educated on so that all conversations (with distributors, customers, etc.) are consistent across the board. We have gathered information via surveys and focus groups that prove that slight changes in Backwoods’ current packaging designs need to be made in order to increase brand power. We have connected with hotels and resorts that are interested in pursuing partnerships with Backwoods. The initial steps have been completed so that from here on out you have the resources to make these recommendations a reality for Backwoods Brewing. Backwoods needs to strengthen its brand identity, drive and define what the notion that “there is a little Backwoods in everyone” means, and encourage and welcome consumers to be a part of the Backwoods Family. At the heart of Backwoods is family and flavor and we believe that we can capitalize and further focus on these factors in order for Backwoods to continue to be successful and differentiate you from the numerous other local breweries in the Pacific Northwest. With our recommendations we believe that Backwoods will be able to expand its network, gain capital to meet new market demands, and grow the brand beyond the backwoods of Carson, Washington. Story We are not attempting to change your brand. Rather, we are trying to solidify your story so that when any employee is asked “what is Backwoods” or “what makes Backwoods different?” there is a consistent shared message across all communications. According to your Sales & Marketing Manager Jordan Tanasse, your general current pitch is as follows: “We are a small, family owned brewpub located in Carson, WA. We're 3 1/2 years old and focus on brewing NW American ales (IPA, Pale Ale, Amber, Stout, etc.). Our philosophy is to keep it simple, but keep it delicious. We're distributed in WA, OR and ID, and our brew pub is open 7 days a week, and is family friendly.”
3 This pitch currently does not reflect Backwoods’ unique or specific value proposition and we believe it is imperative for any and all pitches to convey what makes Backwoods, Backwoods. We believe in order for a pitch to do this it needs to hit on the following four points: cool beginnings, “make great moments better,” family, and community. We think your story should always start with how Backwoods has been an idea and passion for a long time and how you started brewing in a college dorm room. Then your story should hone in on the last three points. Based on our research, focusing on the “why” and “how” of your company rather than the “what” is the best way to sell your brand and format your story (How Great Leaders Inspire Action). The most successful companies are the ones that inspire their customers. They also market their brand in a way that truly creates brand loyalty and a repetitive, easily remembered story so that everyone who comes in contact with the brand can become a brand ambassador. According to Simon Sinek, the “why” of a company should be its purpose (How Great Leaders Inspire Action). He mentions Apple as a company that successfully focuses on the why and how. Apple’s why is “We believe in challenging the status quo. We believe in thinking differently.” (How Great Leaders Inspire Action). By focusing on your why and how you make your product great, rather than just focusing on what your product, great beer, is we think you can develop a story that resonates with consumers and is easily spread through word of mouth without losing your brand’s value. This focus on why also aligns with the popular marketing concept of the brand pyramid, which aids in defining a brand’s unique value proposition. Through the process of creating Backwoods' brand pyramid, we have narrowed down a purpose and value proposition we think fits well for Backwoods: “We believe in making great moments better. We believe in making a community.” We think including points in your story that touch on this why, this purpose, will be incredibly beneficial in connecting to consumers. We think it can also be extended into two different taglines that your company can continually use and every employee can know and speak to. Those taglines would be somewhere along the lines of “We believe in making great moments better” and “There’s a little bit of Backwoods in all of us,” of which the second would speak more directly to your belief of creating community. By emphasizing how you started and why you do what you do, people will be able to relate to your brand and build loyalty with Backwoods Brewing Company. Backwoods was built around family, and funded by family, so highlighting the family aspect is beneficial for your overall brand and is something that can differentiate you from other craft breweries. Backwoods seeks to help those in their family, blood related or not, whether it’s through a job or just a great craft beer. Either way you want to let your consumers know that everyone is welcome to be a part of the Backwoods family, and it is something that they will never regret. Playing off of the “Backwoods Family” idea, we also believe that you should personify the notion that “there is a little backwoods in everyone,” and really show that everyone, whether from a small town in the gorge, or a big city across the river, is welcome to be a part of your
4 community. Whether Steve really knew it or not, when he told our class that “there is a little backwoods in everyone,” it really resonated with each of us in the room. We may not all be from the “backwoods” of Carson, Washington, but we all have experienced a little piece of “backwoods” at some point in our lives. We were all instantly able to reflect on a time that this held true for us, and imagine it being even better with a cold can of Backwoods’ Logyard IPA in our hand. If you were able to get this message out to the market, you could reach so many more potential consumers and leave them with the same feeling and desire to dig a little deeper into the “little backwoods” that they have in them. Consistency in brand message and providing an extrinsic value to the customer in this way will generate positive word-of-mouth, which has an effect that is far more effective than any solely social media campaign. This is why we have constructing a Backwoods Brewing Company story, that we believe will better explain whom Backwoods is, what you do, and where you hope to go in the future. Below we have written out a story that we believe embodies the characteristics of a good story as mentioned above. A story like this should be shared amongst all employees and along each consumer touch point. We’ve included a sample about us story that hits on all 4 of our key points; however, if you’re looking for a real life example CraftingAStrategy.com states that Ninkasi Brewing Company’s about us page is a great example of a good story (“About Us”). This story should not be seen as something that needs to be said verbatim, rather use this as a guideline and focus more on having every employee hit our four key points. The following example of a story can be used across all platforms, whether it be on your about us section of your website, a pitch you’re giving a distributor, or just in a conversation with a possible consumer. “Backwoods Brewing Company has been making great moments better since 2012, but Backwoods’ journey really started long before that in our founder, Kevin Waters’ college dorm room. Backwoods was an idea, a dream, and a desire for a young man who wanted to pursue his passion. With the support of his family, that dream is now a reality. Located in Carson, WA, we are owned and operated by family and we strive to provide great beer and opportunities to those in our community. We brew with a passion and take pride in providing the freshest, most local ingredients in our carefully crafted brews. Over our short three years, our brewery has grown in size, starting from a single barrel brewpub, to now a 20-barrel system that is distributed in WA, OR, ID, and CO. No matter where you may find yourself, whether in Ellensburg, WA, or Portland, OR, always remember there is a little backwoods in everyone, even you, and we are always welcoming more people into our Backwoods Family. “ By focusing on the why of your company and training your employees on the key points they should mention in your story, you create a brand that is relatable and connects incredibly well with consumers. By ensuring your customers, distributors, and bartenders at various
5 establishments are continually hearing these key points and your purpose, you are giving them the repetition they need to be able to sell your beer with a similar story hitting those same points and, therefore, they too become your brand ambassadors, your storytellers. Additionally, we think by staying with these key points new brand ambassadors are more likely to sell your beer to others without losing your Backwoods brand and identity. When implementing the next two solutions and approaching your marketing, be it social media or events, it’s important to make sure that you’re emphasizing this story and Backwoods’ purpose. Packaging and Consumption Brand Recognition Brand recognition is vital to a company’s success. Visibility and positioning of a logo and the brand name on the packaging can reinforce existing knowledge to inform consumer brand preference (Sundar). It is imperative for packaging design to have appropriate logo and brand name placement and sizing (Sundar). We are not advising a complete rebranding strategy, however we have suggestions to increase consistency and brand power. Although this may not be one of your top priorities at the time given your recent expansion and goal to repay your parents, but we hope to prove that our suggestions are necessary and important to increasing sales and brand recognition. Consistency of fonts and logos across all products is also important. Currently Backwoods has both the beer tree logo and the tree ring “Backwoods” logo. There is no need to create a new logo, however we suggest that you keep messaging and branding consistent by using a single logo. 76% out of the 100 people surveyed stated that they preferred the beer tree more than the tree ring logo. Thus we suggest that Backwoods uses only the beer tree on all further marketing and sales materials. Another issue Backwoods’ product packaging faces is brand name recognition. We conducted market research surveys and focus groups to understand people’s perceptions around the packaging. We found that consumers generally enjoy the current design, but changes in the size of the font must be made. In a second survey, we showed 23 people aged 19-55 images of the North Portland New Seasons Market beer aisle and asked them to identify the beer can that caught their attention the most in two different photos. The first photo (Appendix B Figure 1) was of the entire beer can selection and the second photo (Appendix B Figure 2) was a closer capture of the section including Backwoods. 91% of survey respondents picked out other beers as more eye-catching in the first photo. These respondents were drawn to the bright yellow and red cans. When these same respondents were shown the second photo, a close up photo of your beer cans compared to only 15 other brands, 39% of them selected the Backwoods can as the most eye-catching design. However, those who identified Backwoods as more eye-catching were not able to identify the
6 brand name. Most believed it to be “Logyard” or “Dogyard” brewing company. This is in part due to the positioning of the cans on the shelves together with the size of the font. The letter “L” becomes distorted when looking at the shelf from certain angles causing participants to believe the can reads “Dogyard”. This supports the fact that while the current design is relatively strong, the Backwoods name is not as recognizable or distinct on the packaging as it should be. Consumers who are drawn to your design should also be able to easily identify the brand name. Increasing the size of the brand name is crucial to aid in increasing brand recognition and wordof-mouth marketing. In a focus group we conducted, ten participants were shown the images below. All participants enjoyed the overall design and color of the current packaging. However, all ten participants preferred the can with a larger, more identifiable brand name while some said that the beer tree logo was a good enough distinguishing factor of the design. However, a logo without a name can only increase the reach of your brand so much. Our recommendation is to ensure that every time a consumer sees the beer tree logo, they think “Backwoods Brewing Company” and vice versa. In order to reinforce this idea, the beer tree logo and brand name must be shown together any and every time either is present, whether it be on a beer can or bottle, piece of merchandise, or promotional item.
7 Color Sensory signatures are very important in consumer marketing. A sensory signature is a sensory input that is distinct to the particular brand. Logo and color are the most visible and recognizable sensory signatures to a consumer product or brand. They provide consistency and continuity of image. Due to the fact that each beer flavor has a different corresponding color on the packaging, the logo and brand name should be more prominent and easy to identify. Perception of certain colors can cause specific and predictable reactions that can be used to establish a mood for a product (Krishna). Longer wavelength (warmer) colors such as reds and oranges are perceived as more exciting and stimulating. Backwoods personifies these attributes and the fact that the current color scheme includes reds, browns, and oranges is more attractive to and more beneficial in engaging the consumer. Partnerships Since our initial recommendation, we have reached out to multiple hotels, lodges, and a handful of restaurants in the Columbia River Gorge area that we feel would be a good fit for a partnership with Backwoods. Through these partnerships, the Backwoods persona of an outdoorsy, adventurous, family-oriented, and down-to-earth community can be spread beyond the Gorge. Tourists within the area will be able to bring their love of Backwoods home. With each partnership, we recommend that Backwoods and the specific hotel/lodging service work together to create a signature beer to be exclusively available at each establishment. The only thing involved in a partnership with any of these three establishments would be for Backwoods to provide a specialty beer that will be purchased directly from you and sold at their location. You will not have to provide any additional capital contributions to the establishment in any way or form. These partnerships are all about the beer and the connections that Backwoods can make! This will not only help Backwoods form stronger relationships with companies in the area and add them to the Backwoods Family, but it will also make your product more easily accessible for travelers and tourists that might not be aware of the brewpub or brand in general. This will help Backwoods combat the statistic that only 10% of beer drinkers consider craft beer easy to find, according to a report on craft beer conducted by Mintel. Along with the beer brewed solely for the hotel, they could also carry seasonal beers and one or two of the most popular Backwoods beverages as the partnership begins to form and become stronger. Sales and overall interest of Backwoods will increase and the sense that “there is a little bit of Backwoods in everyone” will be a key focal point of this strategic plan. The hotels, lodges, and restaurants that have shown interest in the possibility of a partnership are Skamania Coves Resort in Stevenson, Columbia Gorge Hotel in Hood River, and White Buffalo restaurant located in Hood River.
8 Skamania Coves Resort A vacation home rental resort, located right in Stevenson, which is conveniently located near everything that makes the Columbia Gorge great! With their location being the future home of your new Brew House, creating this partnership would be ideal. After conversation with an employee at the resort, we realized that Backwoods already has a strong relationship with Skamania Coves Resort, but we think we can strengthen this with the addition of a Backwoods signature craft brew. We are aware that they do not have a bar or restaurant on site, but they do offer gift packages including local wine, cheese, and fruits. We believe that Backwoods and Skamania Coves Resort could partner together to create a craft brew gift package that would highlight Backwoods and different snacks and foods that compliment the brew. If this were to happen, Backwoods would be reaching out to a demographic of individuals and couples 30 years of age and above, typically middle class to upper class, and customers generally from Washington, Oregon and California, however customers that also come from a range of states such as Arizona, South Dakota, California, Texas, and even as far as Washington DC. If Backwoods wishes to pursue this partnership, you can contact Kristyn Puntenney at (509) 4274900. White Buffalo Wine Bar and Bistro White Buffalo Wine Bar and Bistro, located in Hood River, OR, strives to provide its customers with delicious and comforting meals made from fresh, local ingredients. The staff at White Buffalo focuses on making their meals taste like you made them yourself at home! The locally sourced food, family-like service, and commitment to the community makes White Buffalo a great option for a partnership with Backwoods. After conversation with one of the owners, interest was expressed about the possibility of a partnership with Backwoods. The chance to have a signature craft brew in a wine dominated establishment would be an exciting chance for Backwoods to break into a new customer demographic and appeal to a larger and newer audience. This restaurant draws in customers that primarily consist of couples but families as well, that are staying in nearby hotels and coming from places such as Wyoming, Texas, Utah, Nevada, Virginia and California. Their customers also include those from the local community and those from Washington and Oregon, which will help strengthen the name of Backwoods in the Gorge as well as beyond the Gorge. If Backwoods wishes to pursue this partnership, you can contact Sara Gumm at (541) 386-5534. Columbia Gorge Hotel The Columbia Gorge Hotel is a historic hotel located in Hood River, OR that provides guests with a luxurious, peaceful and nature-oriented stay that is centered around the beautiful Columbia Gorge. With multiple lounges and bars on the property, Backwoods would benefit greatly from a partnership with Columbia Gorge Hotel. The Sales Manager at the hotel was very interested about the possibility of this partnership and was eager to hear about what the partnership would entail. With this much interest and a large gathering of guests, we suggest
9 pursuing this partnership in the future. Guests range in age from 20’s and up, and primarily consist of couples and families. Like White Buffalo, the Columbia Gorge Hotel sees locals in their bars and restaurants which will help Backwoods keep their focus on community while pushing the Backwoods brand beyond the Gorge due to the fact that guests are coming from a span of states such as Washington, Oregon and California, and all the way to New Jersey, Georgia, Hawaii, Idaho and Ohio. If Backwoods wishes to pursue this partnership, you can contact Kyleigh Mayner at (541) 387-5421 or by email at kmayner@columbiagorgehotel.com. The University of Portland In addition to the hotel/restaurant partnership research, we contacted the University of Portland Pilot House to see what steps could be taken to make Backwoods a more recognizable and frontrunning name in the UP community. As stated in our initial recommendation paper, craft beer is being enjoyed by millennials more so than any other age group in the market and strengthening Backwood’s partnership with UP is a perfect opportunity to grow. A demographic people often overlook in the beer industry is women, despite the fact that research shows that women are just as likely as men to enjoy craft beer over the average big name beer (Bloom). 59% of the UP student population is female and Backwoods would benefit greatly from gaining this huge group of potential consumers. This would also help break the common stereotype that beer is a drink for men because Backwoods beer should be enjoyed by all. Through outside research with the Retail Manager of the Pilot House, Ryan Jensen who can be contacted at ryanjensen@cafebonappetit.com, we have come to the conclusion that Backwoods needs to focus more closely on their brand recognition. On average it takes Backwoods about 4-7 days to sell the 40 beers it takes to empty the keg, while Steigl, their most popular beer on tap, can sell out in as quickly as one day. Backwoods has seen their Stout on tap and although it has good flavor its name isn’t recognized by many students, resulting in slower sales. This creates a barrier between the product itself and the consumer, further delaying the expansion of Backwoods to a market that could potentially create even more hype towards the emerging microbrew. With the University of Portland continuously receiving new students on campus every year, the amount of consumers trying Backwoods would continue to grow with UP. Having students who are newly 21, Backwoods would be able to introduce them to the world of microbrews. Holding Backwoods specific events on campus would help solidify Backwoods as a brand. Events held on campus where the brew master himself held a tasting of Backwoods beer would create a personal connection between the students and the beer itself. By bringing Backwoods beer onto campus through these events, their beer would begin to have a specific personal attachment, potentially leading to higher sales when on tap at the Pilot House.
10 The University of Portland is home to countless connections, alumni, and beer enthusiasts. With events on campus, such as Prost with Profs, we believe that it would be a beneficial idea to have Backwoods present in the memory making. Not only is Prost with Profs a time to celebrate all of the seniors’ wonderful four years on campus, but it’s also a time to celebrate the everlasting impact UP has left us with. With Steve Waters as a University of Portland alumnus, it would be symbolic to have Backwoods served at this event, showing the connection UP holds with its alumni while marketing towards a new group of consumers. Along with Prost with Profs, there are multiple events on campus throughout the year that include alcoholic beverages. With Backwoods continuously available at these events, it would create brand recognition leading to greater sales while on tap at the Pilot House. For the majority of events on campus, Bon Appetit determines what alcohol is provided. We’ve reached out to Bon Appetit to see how they determine what beverages are sold and if there’s anything you need to do in order to become either a feature or a fixture at the various events. Based on communication with Brian Armstrong, Bon Appetit for UP would love to start including Backwoods beers at UP events. The only thing he needs to know is what distributor you use, so he can determine if they already have a relationship established with that distributor. Other than that, the only thing that could prohibit UP from using Backwoods would be if your product’s price was too high; however, both Brian and us believe this should not be a problem. Brian Armstrong can be reached by email at armstrob@up.edu and we are more than communicate to him the name your distributor(s). From CPB events with beer gardens to the Christmas Gala, there are so many opportunities to connect Backwoods to donors, alumni, students and faculty, all people who could become incredibly powerful brand ambassadors. Backwoods should be a source of pride for the UP community. And we think that making it a fixture at events will increase brand awareness and will decrease how long it takes for a keg to empty at the pilot house. Additionally, the UP community extends throughout the West Coast, so creating brand-loyal customers before they head out into the real world is a great way to ensure that your beers are requested and asked for in even more markets. Conclusion We hope that our research and recommendations will ultimately aid in strengthening the brand power and recognition of Backwoods Brewing Company. We are confident that strengthening and building upon the three key areas of brand story, logo and packaging, and partnerships will prove very beneficial to the operation and management of Backwoods. A solid and cohesive story shared among your employees will help spread the name and story of Backwoods among new and current customers and distributors, solidifying your logo and redesigning packaging based off of the customer feedback we gathered will increase brand power, and building partnerships with the previously stated establishments will help drive your brand, product, and
11 business of Backwoods Brewing Company. With our recommendations we believe that Backwoods will be able to expand its network, gain capital to meet new market demands, and grow the brand beyond the backwoods of Carson, Washington. It has been a pleasure working with you and learning about the successful operation that is Backwoods Brewing Company. We look forward to enjoying more of your beer in the future as you have made us into brand ambassadors! Feel free to reach out to any of us with questions about our recommendations or with any comments you might have. Again, thank you for this great opportunity and we wish Backwoods nothing but the best for the future!
12 References "About Us." Ninkasi Brewing Company. Ninkasi Brewing Company, n.d. Web. 30 Nov. 2015. ageVerified defaultValue . Bloom, Beth. Craft Beer: U.S., October 2015. Rep. N.p.: Mintel Group, 2015. Mintel Academic. Web. 10 Nov. 2015. How Great Leaders Inspire Action. Dir. TEDxPugetSound. Sept. 2009. TED. Web. 30 Nov. 2015. https://www.ted.com/talks/simon sinek how great leaders inspire action?language e n#t-238613 . Sundar, Aparna, and Theodore J. Noseworthy. "Place The Logo High Or Low? Using Conceptual Metaphors Of Power In Packaging Design." Journal Of Marketing 78.5 (2014): 138-151. Business Source Premier. Web. 15 Dec. 2015. Appendix A
13 Appendix B Figure 1 Figure 2
recommendations a reality for Backwoods Brewing. Backwoods needs to strengthen its brand identity, drive and define what the notion that "there is a little Backwoods in everyone" means, and encourage and welcome consumers to be a part of the Backwoods Family. At the heart of Backwoods is family and flavor and we believe that we
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