Grassroots Proposal for DC Brewing Company of Washington.

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GRASSROOTS MARKETING PROPOSAL FOR
DC BREWING COMPANY

DECEMBER 5, 2009


Grassroots Proposal for DC Brewing Company

Executive Summary

DC Brewing Company is Washington, D.C.’s only microbrewery and is dedicated to brewing beer of the highest quality in small batches. As the makers of L’Enfant Lager, Statehood Stout, Rock Creek Red Ale, U Street Porter, Adams Morgan Amber and Capitol Hill Pale Ale, DC Brewing Company has the long-term objective of becoming one of the premier microbreweries in the United States.  But in its first year of operation, the goal is more modest.  DC Brewing Company must first establish itself as Washington, D.C.’s premier microbrewer.  DC Brewing Company has already established a robust online presence including Twitter feeds, Facebook pages and a highly interactive website with a brewing blog.  Now the company must establish its name through effective grassroots techniques and word-of-mouth marketing in order to accomplish the immediate objective of increasing sales an average of $25,000 in each month of 2010, which is an annual increase in sales of $300,000.

Microbrewing Today

According to the blog the AccidentalHedonist.com, “For the micro-brew fan, the best beer out there is the one they haven't tried yet.” This presents both a challenge and an opportunity for DC Brewing Company.

A Brewers Association industry analysis shows that the craft brewing industry grew, but at a slightly slower rate from 2008 to 2009 than from 2007-2009.  Overall, beer sales were down industry-wide and especially among imported beers.  The data indicates that people are turning to microbrews more and away from the larger brewers.  Two lessons can be gleaned from these statistics.  First, it shows that the economy has affected the brewing industry negatively, and second, it shows that there is still room for growth in the microbrewery segment of the market.  

Regionally, Dogfish Head Brewery from Rehoboth, Del. is the only dominant microbrewery in the mid-Atlantic.  The primary competitors for DC Brewing Company in Washington, D.C. are Capital City Brewing Company and The District Chophouse; however, both of those companies are restaurants, whereas DC Brewing Company’s focus is on brewing quality beer.  While there are more than a dozen microbreweries in the region, DC Brewing Company’s goal is to become the best most successful brewing company in the mid-Atlantic.

A Nov 25, 2009 New York Times article says roughly 450 microbreweries currently operate in the United States, which is 25 percent higher than five years ago.  The Brewers Association puts the craft brewing industry annual dollar volume is $6.3 billion annually, but a Mar. 19, 2009 Wall Street Journal article says microbrew sales represent only four percent of the total volume of the beer market.  The same article points out, however, that people are willing to pay premium prices for a well-made beer.  Given this information, we believe there is room in the market for another quality entry.  Brewers and microbrew drinkers are passionate about what they drink.  DC Brewing Company needs to capitalize on this passion to spread the word about their product.

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Recommended Course of Action

Armed with the aforementioned background information, as well as additional market analysis, we recommend the following SMART actions (specific, measurable, achievable, realistic and timely) to increase revenue and market share as well as raise brand awareness through grassroots and word-of-mouth marketing.

Strategy 1: Target beer writers, connoisseurs and experts in the mid-Atlantic region.

Tactic 1:  Attend three microbrew festivals in 2010.  We have identified SAVOR: An American Craft Beer & Food Experience in Washington, D.C., The Food and Wine Festival, National Harbor at the National Harbor in Maryland and the ...

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