AMSTERDAM BREWERY

BUSINESS PLANNING

BY:

Kyle Hahn

Septyan Himiwan

Emil Grande

Danny Diep

Brittany Millard

MKT2260

Jim Neubauer

Section 320

Friday April 08th, 2016

Table of Contents

SWOT …………..…………………………………….………………………….…………… 1-2

Competitor Analysis…………….…………………..………………………………….…...... 2-3

The Market Opportunity …………………………………..………………...…………….….. 4

Targeted Segments …………………………………..………………..……………….........….. 5

Positioning ………….……………..……………………………………………..……....…… 5-6

Marketing Plan Objectives …….…………………………………………..………………... 7-8

Product Strategies …….……………………………………………………………….…... 9-11

Pricing Strategies …….…………………………………………………………..………... 12-14

Distribution Strategies …….………………………………………………….…………... 15-17

IMC Strategies …….…………………………………………………………..…………... 18-20

Implementation Plan …….………………………………………………………………... 21-23

Financial Analysis …….…………………………………………………………………... 24-25

Appendix……………………………..……………………………..………………..………… 26

Appendix A…………………………………………………...................................... 26-29

Appendix B……………………………………………………………………..…… 30-31

Appendix D………………………………………………………………………..… 32-34

Appendix E………………………………………………………………………..… 35-36

Appendix F………………………………………………………………………..… 37-41

Appendix G………………………………………………………………………..… 42-45

Appendix H………………………………………………………………………..… 46-50

Appendix I…………………………………………………….…………………..… 51-53

Appendix J……………………………………….………………………………..… 54-62

Appendix K………………………………………………………………………..… 63-65

Appendix L……………………………………………………………………….…..… 66

References……………………………..……………………………..……………………. 67-72

SWOT

          For Amsterdam Brewery’s SWOT analysis, the team has identified various strengths,

weaknesses, opportunities and threats related to Amsterdam Brewery has a whole company

internally and externally. There will be the key highlights in the report and detailed information

(See appendix A-2) and a SWOT chart. (See appendix A-1)

Strengths: The key highlights of Amsterdam Brewery’s strengths are that they have been

in business for 30 years and are not new to the craft beer industry (The Amsterdam Brewery

Story, n.d.). The second strength is that Amsterdam Brewery offers free taste testing and tours

around their location, with the ability to book the time and date of when you want to tour their

location (Brewhouse Brewery Tour Registration, n.d.). Third strength is that Amsterdam

Brewery has over 20 different kind of craft beer sold within their store location (Amsterdam

Brewing Company, n.d.). The fourth strength is that Amsterdam Brewery uses all natural

ingredients to make sure their craft beer is high quality (In The Tanks, n.d.).

Weaknesses: Weaknesses that Amsterdam Brewery encounters are that they don’t have

an actual target market to appeal towards (Garbarino, n.d.). The second weakness is that

Amsterdam Brewery is only able to brew a limited amount of beer (48,000 hectolitres)

(Garbarino, n.d.).

Opportunities: The main opportunity is that millennial prefer craft beer over normal

beer (Fromm, n.d.). The second opportunity is that craft beer sales are currently on the rise from

the previous year by 12.8% (NATIONAL BEER SALES & PRODUCTION DATA, n.d.). The

last opportunity is that Amsterdam Brewery can sell to more retailers around Ontario. (Beer sales

in grocery stores, n.d.)

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Threats: The main threat to Amsterdam Brewery is that larger and local beer companies

can be a threat to Amsterdam Brewery, which can impact sales. The second threat that

Amsterdam Brewery faces is that the price of Amsterdam beer is higher than the amount of mL

you get back compared to other competitors such as Great Lakes Brewery. (Amsterdam

Boneshaker, n.d.), (Great Lakes Brewery, n.d.)

Competitor Analysis

Amsterdam Brewery has four main competitors, first one is Mill Street Brewery they

offer signature beers. This selection of beer is offered as intensive distribution meaning it is in

most stores that beer is sold unlike their specialty beers.

Mill Street Brewery stands out by sponsoring many events and offering a wide selection

of over 60 unique beers that have won over 100 different awards (About us, 2015). They not

only brews beers and sells them but they own their own pubs called Mill Street Brewpub (See

appendix B-1). They don’t partner very often with events or activities, which somewhat

diminishes their “Local” presence (See appendix B-2).

A very unique trait that Steam Whistle offers is their vintage vehicles, they describe it as

“The car you drive, like the beer you hold in hand, reflects your unique character and personal

style.” These cars are used for events and transportation. Maintaining a fun yet vintage

appearance, they stick with traditional brewery techniques for best natural tastes. Steam Whistle

has their beer offered worldwide which is a strength. Steam Whistles weaknesses would be that

their drive for quality rises the prices quite a bit and they don’t have a diversified product line

like many others. Steam Whistle holds up to their standards and believe one beer is good enough

if the quality is there (Steam Whistle, 2014).

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Great Lake Brewery offers a wide selection of Year Round beers with creative names and

logos that are served in LCBO’s, Craft beer restaurants, Bars and Pubs. Alongside their Year

Round, they offer seasonal beer that are there for a limited time. Unique feature they offer is

Tank Ten, which is where they give the makers the green light to make whatever they would

like. They also have what they call Project X and Collaborations. Great Lakes Brewery is very

interactive with events and social media. A drawback is offering such a wide selection for those

who want a familiar beer might feel intimidated (Great Lakes Brewery, 2014).

Left field brewery is known for offering their top seller craft beers in not only tap but

draft too. This is beneficial to those who may prefer beer on tap rather than in bottle or the other

way around. A downfall for them is that they have only been around for 3 years (See appendix

B-3), they are still getting used to the rapid beer market changes and learning to integrate

themselves.

Their competitors think outside the box and strive for success. A common ground they

have is a wide range of selection. Participating/hosting events helps them bring their local

presence up and help others discover craft beers. Amsterdam Brewery is rated a 4.6 stars out of 5

on Google (See appendix B-3), customers are enjoying the local aspect that they bring and the

quality of craft beers. Their success is an opportunity to expand into a bigger environment such

as MLSE, where they can attract more of the defined target determined and inform current and

new customers about who they really are and what they have to offer. There is a saturated

competitive market with lots of benefits to offer so Amsterdam Brewery needs to stand out.

The Market Opportunity

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In this section the team will describe the marketing opportunity based on internal and

external factors as well as the competitor’s situation. The marketing opportunity that has been

chosen is to integrate Amsterdam Brewery’s top three selling products (All Natural Blonde,

Boneshaker IPA, and Big Wheel Deluxe) in the Air Canada Centre.

Amsterdam Brewery has a weakness which is the lack of target market. Based on

secondary research the team has discovered that millennial have the most potential when

describing our market. Currently millennial ages 19-30 tend to drink more craft beer compared to

other age segments (Taylor, 2016). The team has calculated with primary research that in the

GTA 637.170 millennial watch sports in a stadium or arena such as Air Canada Centre (See

appendix D-1)

Steam Whistle and Mill St. whom are Amsterdam Breweries competitors are currently

integrated into MLSE. However Mill St. has a much lower rating on Google compared to

Amsterdam Brewery, (See appendix B-3) Steam Whistle has only one type of beer therefor there

is not much room for customer’s preferences.  Amsterdam on the other hand has 9 seasonal /

year round beers, and 3 of them have won awards such as the Canadian Brewing Awards and

Ontario Brewing Awards (Amsterdam Brewery, n.d)

One of their strengths is that Amsterdam Brewery is a high quality craft beer company

that offers all natural ingredients. This clarifies the millennial behaviors which are enjoying all

natural ingredients and high quality products.   

However, Amsterdam Brewery has a lack of brewing capacity of only 48,000 hectoliters

annually. This is a downfall that Amsterdam Brewery need to focus on once profit from the

integration of MLSE starts growing.

Targeted Segments

4

As mentioned in the first meeting currently Amsterdam Brewery has no specific target

market. The company is currently targeting those at any ages who enjoy great tasting beer and

willing to try specialty beer (Garbarino, 2016. Kknowing to whom the company is targeting its

product is crucial as once the targeted segment is identified, the company will be able to execute

the marketing plan that fits to the targeted audience (Kaleikini, 2009). There are three ways of

defining the target market-by identifying demographics, psychographics and geographic (Porta,

2012). Identifying behavioral response such as knowing in what occasion the audiences enjoy the

product will also help Amsterdam Brewery to specify its profile audience. ( See appendix D-

1&D-2)

Positioning

Positioning Base: The positioning base for Amsterdam Brewery focuses on the

millennial age group. The behavioural aspect of this group is enjoyment of watching live sports

within an arena. The area of focus is downtown Toronto which Amsterdam Brewery has a

prominent local presence.

Positioning Statement: “For the millennial age group (19-30) who enjoys live sports, the

Amsterdam Brewery offers a high quality craft beer with a premium price. Unlike the other local

craft breweries in Toronto, Amsterdam Brewery provides craft beer with all-natural ingredients

and a distinctive taste.”

The positioning statement is emphasized on targeting the millennial age group who are

sports fans in Toronto. The all-natural ingredients and distinctive taste of Amsterdam Brewery’s

products is the best aspect compared to its competitors (See appendix A-1). Since Amsterdam

Brewery has an advantage of having the all-natural ingredients against its competitors, this

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feature will help on top of having a high quality taste plus premium pricing for the millennial age

group.

Based on the proposed target segment, the key benefit for Amsterdam Brewery is the

unique taste. This aspect will be distinctive for the millennial group as they can consider it as

fresh and enjoyable craft beer. The millennial age group also seek strong value for their

preferable craft beer and does not care about having a higher price (Brewers Association, 2015).

This gives Amsterdam Brewery the advantage against its competitors because the brand is

perceived as having high quality with a premium price. Having a strong history within Toronto

also increases value for millennial. (See appendix E-2).

Perceptual Map

The perceptual map illustrates the placement where each brand stands in terms of

customer ratings from Google and average price of their craft beer per millilitres. The whole

perceptual map is an illustration that supports the positioning statement. The ratio between these

two variables can determine how the brands are doing in the market and how customer see them

as (See appendix E-3).

In the perceptual map, Amsterdam Brewery has an advantage against most of its

competitors. The map demonstrates that Amsterdam Brewery has a 4.6/5 in terms of customer

rating and a $6.37 (per mL). It makes Amsterdam Brewery a high quality brand that has

premium pricing. To conclude Amsterdam Brewery’s placement in the perceptual map, it

portrays an appeal to the millennial audience. Millennial preferring a brand that has a high

quality and premium price is met by Amsterdam Brewery’s rating and price point.

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Marketing Plan Objectives

In this section the team will be stating the six main objectives for the marketing plan with

rationale (See appendix F-1).

For the financial objective the team chose to have the objective of increasing the overall

revenue by one million dollars in 12 months. According the Amsterdam Brewery financial

summary, Amsterdam Brewery made a total of 15 million in 2015 and combined the top three

products made over ten million dollars in 2015 therefore keeping the success of the top three

products is crucial.

For the product objective the team chose to redesign the packaging for MLSE

partnership. This is good because in the survey question 10 that asks if respondents were likely

drink beer if it was brewed locally on a scale from 1-5, 28.7% of respondents gave a rating of 5

in which gives MLSE a reason to do this because people like locally brewed beer and it would

look good for the organization to support local businesses.

In terms of pricing, Amsterdam Brewery will offer the target audience a 10% discount in

order to achieve an increase of 20% repeat purchase. This will be done before October 2016 and

the start of June.

The promotion objectives that the team chose is to increase awareness by 9% and

increase trialability by 7%. In the survey the team found that Amsterdam was ranked third in

awareness behind Steam Whistle and Mill Street Brewery. In order to get trialability Amsterdam

Brewery must gain more awareness and attract repeat buyers.

The distribution objective is creating this partnership with MLSE to sell Amsterdam’s top

three products. If Amsterdam integrates with MLSE it will give them access to sports arenas as

well as restaurants and hotels and be Amsterdam’s fifth distribution channel. The weakness it

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can mitigate is the unset target market as MLSE has a diverse fan base. The threat is that Steam

Whistle and Mill Street are already sold in MLSE stadiums therefore making it harder for

Amsterdam to solidify themselves within that channel.

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Product Strategies

The strategies that are formulated by the team is to fulfill the product and financial

objective. Creating an appeal for the customers is critical for the Amsterdam Brewery’s products

and brand image (See appendix G-2). The marketing opportunity is to integrate the top 3

products of Amsterdam Brewery with the MLSE.

Exclusive Packaging - The main product strategy for Amsterdam is to have an exclusive

packaging with the MLSE. The idea is to associate the sports teams with the labelling on the

craft beer bottles. Amsterdam Brewery’s bottles will have a nice design with the team logos

(Maple Leafs, Raptors, FC, Marlies) on them. It will also interpret that the craft beers are

associate with MLSE. This will change customer perception towards Amsterdam Brewery’s

products. Having an exclusive package will change customer’s perception towards the brand in a

positive manner (See appendix G-4).

According to an info graphic article, “Smart packaging help its targeted consumers feel

and emotional attachment to a brand” (Jarski, 2014). The influence of an exclusive packaging

towards consumers is highly effective. Not only it has an increase of perception towards the

brand, it also gives an emotional appeal. Creating the exclusive package can make an impression

towards the consumers of how they can enjoy the craft beer with their favorite team(s). How the

taste will fulfill their enjoyment and make the event much more entertaining.

Loyalty Cards - The second strategy for Amsterdam Brewery is to offer customers loyalty cards.

Providing loyalty cards towards customers can benefit both organization as well as the

consumers. This program can allow Amsterdam Brewery to collect consumer demographic

profile and the types of products they purchase and the location they purchased it. By collecting

the database of the users, Amsterdam Brewery will be able to provide product recommendations

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for the customers and inform them with the upcoming promotions through their interest. (See

appendix G-3)

There are a lot of benefit for using the loyalty card program. Firstly, it has been proven to

boost growth within an organization. Statistics show that there are numerous amount of

industries that has been proven to be successful. Secondly, it increases companies’ reputation.

The program ensures loyal customers to keep buying the products and provides more value for

the clients. Thirdly, it will increase the sales by enticing awards and collecting points. By this

strategy, the customer has an option to increase their purchase because of the promotions. Lastly,

it provides market research and buying behaviours of different customer personas. This can

allow Amsterdam Brewery to provide specific awards in what they are interested in (Marketing

Land, 2014).

These strategies are particular for the millennial age group. Amsterdam Brewery has a

weakness of not having a specific target audience (See appendix A-1). Therefore, focusing the

strategy towards sports fans will benefit both Amsterdam Brewery and the MLSE organization

(See appendix G-1). The exclusive packaging can emphasize in the sports fans that MLSE is

associated with. While the loyalty cards program is crucial for knowing more about the

consumers through repeat purchase and their buying behaviour. It will also benefit the customers

the longer they are with Amsterdam Brewery because of the promotions that are offered.

The main goal of achieving an increase of a million dollars for the financial objective for

the first 12 months of launch is highly possible with the help of the product strategies. The

MLSE teams being associated with the brand through the exclusive packaging on the craft beer

bottles can give the millennial age group a chance to enjoy watch their favorite teams play as

much as they want. It also increases credibility of Amsterdam Brewery within the target

10

audience because of the association. The loyalty card program will add to the benefits that it will

provide towards the loyal consumers as well as the new ones. It is a win on all sides with the

proposed product strategies.

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Pricing Strategies

This section will discuss the chosen pricing strategy Amsterdam Brewery will choose.

After primary and secondary research the team has discovered the best suited pricing strategy for

our craft brewery is premium pricing.  

Premium Pricing - A strength for Amsterdam Brewery is that it is perceived as a high

quality brand that offers high quality product therefore it is believed that Premium pricing is best

suited for the pricing strategy. Due to findings from previous primary and secondary research,

clients have been known to purchase beer at a higher price if they can see the value and quality

of the item. From the craft beer survey it had been determined that 34.3% of beer consumers who

answered the survey are likely to purchase a beer at a higher price if it is offering all the listed

benefits such as all natural or organic (See appendix H-1). Amsterdam has a great opportunity to

allow a higher price since most arenas and stadiums charge an above average prices, this would

increase the total sales since it is a higher cost (See appendix H-2).  

Price point recommendations:

When comparing Amsterdam Brewery to its competitors, they had a cost of $6.37 (per

mL) similar to their competitors who almost all ranged in the $6.00 level. (See appendix B-3)

Their highest rated beers (All Natural Blonde, Big Wheel Deluxe, and Boneshaker IPA) are all

ranging around the same as their competitors who are already integrated with MLSE (See

appendix B-3 and appendix H-10). The competitors offer their bottled beer at $6.25 and their

draught at $7.75 (See appendix H-13).  Amsterdam Brewery beers will be served at the same

price range of $6.25 per bottle and $7.75 per draught, it will not only increase the value of the

product and the perception of the company but it will show that they are premium items (See

appendix H-3). It had been discovered that premium pricing was the best match, because it is a

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higher price which most view as a quality aspect. (See appendix H-4) It will maintain the local

image for Toronto's sports teams. Since spectators travel distances to watch games there must be

an experience to go with it. Their well-known hockey team, the Toronto Maple leafs would be a

great example as to why some would go far to watch a match, people watch games for the teams

and not for the location. (Koreen, 2015)(See appendix H-5). The process to be accepted into

MLSE is in progress and should be completed by the end of June, 2016. A weakness is that there

are some well-known brands currently with MLSE, luckily they stick in with a similar price

range. (See appendix H-6) A weakness could also be the lack of customer knowledge, the survey

results were mock trialed in Ottawa, and the rest of the findings were stats on Toronto. We found

that our Ottawa mock trial was decent but made Amsterdam Brewery range 3rd whereas the

online findings determined otherwise. The surveys done in Ottawa showed a higher “I don’t

know the brand” percentage over “I know the brand” (See appendix H-14). Research finds that

through our past knowledge and history local Torontonians know the brand quite well. (See

appendix H-9)  When comparing Amsterdam Brewery to local brewers, it is noticeable that they

have a larger selection of bottle and draft types over other companies. (See appendix B-3)

Price promotion recommendations:

Amsterdam believes that the quality of the beer should stand for itself, discounting it would

give a lower impression. Something that differentiates Amsterdam Brewery to its competitors is

after a purchase of 2 beers or more we will give them a custom made Bandana with Amsterdam's

logo and the sporting teams. To make 1000 bandanas it will cost us $12690, 00 (See appendix H-

7), which saves us 70%. This increases the likeliness to purchase and persuades customers to

purchase more beer. The bandana promotion would be done between October until March (See

appendix K-1)

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Price segmentation recommendations:

A type of price segmentation that could be used for Amsterdam Brewery and MLSE is

10% off all Amsterdam Brewery beers for students over the ages of 19 with student card and

identification and the custom made loyalty card given to them upon registration. The craft beer

survey discovered that 35.9% of 19-22 year olds go to arenas/stadiums to watch events (See

appendix H-15 and appendix H-8).  Since most of our age groups were 19-22 and were students

this would be very beneficial to not only the MLSE arenas but to our company awareness (See

appendix H-16).

Consumer price sensitivity levers recommendations:

Amsterdam Breweries craft beer has degree of which the price of the product would

affect the consumer's behaviours for purchasing it. It is an item that chose quality and a great

local presence (See appendix H-11). There is some emotional attachment when it comes to

maintaining a local trait, some think it is better to support locally made products especially since

Amsterdam Brewery has been around for over 25 years. (7 reasons why you should: Support

your local brewery & drink craft beer, 2012). There can be found sentimental value when

customers are proud of being Torontonians, attending their local games with their favourite local

craft beer brings and at home feeling. This can be seen through advertisements and personal

experiences. The value to be attached when purchasing a craft beer would be to impress your

friends, purchasing something of such a high quality with such a wide selection can add a sense

of pride. This all involves the sensitivity lever that many would assume doesn’t apply to craft

beers.

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Distribution Strategies

Distribution Recommendations:

In this section the team will discuss distribution recommendations the team has come up

in order to expand Amsterdam Brewery’s distribution channel with two different distribution

recommendations for Amsterdam Brewery’s products.

1. To obtain a new business to business partnership to carry Amsterdam Brewery’s

products.

Rationale: The reason why this is a recommendation is because the team is attempting to

implement Amsterdam Brewery’s products into another business which is not retail.

2. To deliver Amsterdam Brewery products to consumer’s location (Home delivery)

Rationale: Technology is slowly taking over within our generation, a good way to cope

with technology is to have online ordering of craft beer or beer that delivers straight to

the consumer’s doorstep instead of having consumers physically go to store locations.

Business to Business Recommendations:

As for business to business recommendations that the Ultimate Draft Team has come up

with three different businesses that Amsterdam Brewery can potentially partner up with. The

three potential business to business relationships that the Ultimate Draft Team can partner up

with are MLSE, OVO Festival and El Furniture Warehouse (bar/restaurant). Weaknesses will be

discussed and how the weakness can be overcome to fit with the business to business

recommendations, and competitor risk will also be discussed. Key highlights will be discussed in

the main report and detailed information is found within the appendix (See appendix I-3)

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1 MLSE (Maple Leaf Sports Entertainment)

Starting with MLSE, this is a great choice for MLSE as they provide high quality craft

beer which is currently on the rise of 12.8% in sales in year 2015 (NATIONAL BEER SALES &

PRODUCTION DATA, n.d.). This is great for them as it allows them to target their

demographic. The team has primary data it shows that 74/106 (See appendix I-1) respondents do

go to arenas to watch sports.

One weakness that is faced is that when partnering with MLSE brewing capacity can be a

problem. One way to overcome this problem is to increase brewing capacity by upgrading their

current brewing production line and storage space. (Wisconsin Brewing Increases Production

Capacity, 2015)

2 El Furniture Warehouse

For the second business to business opportunity, El Furniture Warehouse is a great

opportunity due to the demographic that attend this bar/restaurant. It is also a great place to get

cheap food and beverages for under $5, whereas Amsterdam Brewery’s canned and bottle

beverages fit within El Furniture Warehouse’s menu price range. (El Furniture Warehouse Menu,

n.d.)

The weakness when partnering with El Furniture Warehouse is that there will be different

competitors within the restaurant. A way to overcome this is by educating the workers at El

Furniture Warehouse. (Dirkes, 2014)

3 Music Festivals (OVO Festival)

The concert industry has a demographic that the team is currently aiming for, which the

OVO Festival is a great opportunity for Amsterdam Brewery to get into. (See appendix D-2)

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For Amsterdam Brewery to go into the concert industry is that alcohol consumption age

(19) can be an issue. Another key highlighted weakness is that there are other beer companies

partnered with OVO Festival which can affect Amsterdam Brewery in sales.

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IMC Strategies

In this section, the team will discuss how Amsterdam brewery could accomplish the

marketing communication objective as stated earlier “To increase the awareness of the

Amsterdam Brewery’s brand by 22% by the end of October 2016. The team has also crafted four

recommended marketing communication elements and how those four elements could be

integrated into one campaign to fulfill Amsterdam Brewery’s market opportunity.

There are three IMC strategies that will be strategically beneficial for Amsterdam

Brewery in order to build awareness of the audience, those IMC elements are direct response,

sales promotion and advertising.

1. Direct response

Direct response (social media) will benefit Amsterdam Brewery in many ways such as

creating online exposure, showcasing the product, handling direct communication by building

relationship with customers and delivering customer service via social media, as well as gaining

insight from the audience by monitoring positive and negative feedback about the company

hence immediate action will be able to be mitigated (Bennet, 2014).

The team recommend Amsterdam Brewery to leverage the use of social media by posting

the content more frequently in weekly basis based on the schedule that the team has crafted

(Please see appendix J-1)

2. Sales Promotion

Repeat customers handle 25%-40% of the total revenue of a business (Uzunian, 2013).

This means that when Amsterdam Brewery is focusing to attract new consumer, they must not

neglect their current customers. However, cutting down prices has another negative impact

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which is lowers image perceived by consumer (Martin 2009). As the team can’t risk the

Amsterdam Brewery high quality image, the team has come up with some sales promotion

techniques that will benefit Amsterdam Brewery, such as:

b. Sampling

Sampling will allow potential target market to examine and experience the product

without risk (Sales Promotion, 2006). Giving free sampling will also stimulate immediate

purchase by consumers as they will be able to decide which beer that they prefer to purchase

without guessing. The team recommend Amsterdam Brewery to hold the event touring around

the brew house more frequently

c. Contests

One of the sales promotion techniques is contests. Contests will build excitement about

product or brand amongst consumers. They will be able to participate and express their thought

or ideas through contest to win a prize. This will definitely increase the overall brand image as

well to the audience. The team has come up with an idea regarding contest that will build

awareness amongst consumer as well as enhance the brand image. Finding from primary

research that majority of the audience is enjoying outdoor activities such as running, skiing as

well as playing hockey (See appendix J-4 Respondents also conveyed that most of them (70%)

watch sports game in stadium (See appendix J-4).

4. Advertising

Both type of advertising- traditional and modern media- have to be integrated in order to

build more awareness towards consumer. Traditional media such as billboard and transit

advertising will create massive awareness toward Amsterdam Brewery as they will be installed

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in strategic locations. This is also backed up with facts that most respondents in primary research

are commuting by bus and car in daily basis.

The digital advertising such as paid search engine marketing (SEM) will create higher

visibility on the internet due to fact that 73% of people who are looking for specific information

will directly go to search engine as soon as they go online (Andrikopoulos, 2013). This will work

strategically as the team found it from primary research that 93% of respondents are using

smartphone and 74% of them are using laptop as their daily media access. (Please see appendix

J-2 for Amsterdam Brewery web assessment)

To integrate the whole IMC elements into one message, the team has chosen a theme that

will be implemented for the whole campaign. The team decided to go with “celebration” theme.

The concept of celebration is chosen because the targeted segment (millennial) are known for

being experience seeker (Dio, 2015). The team has designed some IMC execution sample that

will be implemented for each IMC elements.

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Implementation Plan

Product Strategy

In this section the team has listed all the activities that Amsterdam Brewery needs to do

based on four marketing recommendation  (product, price, distribution and IMC) . Each activity

is detailed with description, schedule, cost, industry contact information.

Product Implementation Plan

Exclusive Packaging - The design of the new package for the bottles of All-natural Blonde and

Boneshaker will be provided by team UDT and Amsterdam Brewery needs to contact The

Equipped Brewer by June and they will have the labels printed by the end of July 2016. The lead

time of the new package before executing is also in July. By August, the new package is ready.

Throughout the execution time, the customers will be able to purchase the newly packaged beer

in the MLSE outlets during events (See appendix K-1).

Loyalty cards – The implementation for the loyalty program will be with the company Vicinity

(loyalty card for businesses). The proposal will be during June 2016 and approval in July. The

lead time is August and execute in October (See appendix K-1).

Pricing Strategy

Student Discount - The student discount cards will be made by Vicinity (Loyalty card for

businesses) and will be released June 2016 and will get approved by July. (See appendix K1)

Bandana Promotion: The MLSE bandanas will be launched around the end of October

throughout March 2016, they will be made by Spreadshirt. (See appendix K-1)

Distribution Strategy

Partnership with MLSE – The proposal for the partnership will be done in June 2016. Request

for approval is in July, lead time will be in August and September. The distribution of

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Amsterdam Brewery’s products will be in October throughout the next following months (See

appendix K-1).

This distribution of the products will be done by the Director of Retail and Operations (See

appendix K-2).

IMC Strategies

Social Media – The social media has 4 outlets (Facebook, Twitter, Instagram, Youtube). All of

these will have a lead time during June 2016 (See appendix K-1). The execution of posting

content on these social media outlets is going to be in July 2016 throughout the months after.

Billboard – The billboard advertising has a lead time during October 2016. Execute the

advertising during November, December and March (See appendix K-1). The marketing

department of Amsterdam Brewery will conduct all the billboard advertising (See appendix K-

2).

Transit – Transit advertising has a lead time during November 2016. Execution will be

conducted by marketing department of Amsterdam Brewery on December, January and March

(See appendix K-2).

Sales Promotion – The sales promotion has a lead time during August 2016. Execute the

promotion on September 2016 until January 2017 (See appendix K-1). The prizes will be sent

out on February 2017 (See appendix K-2).

Metrics

The metrics that are mentioned will be the key indicator for the profit of Amsterdam

Brewery. The goal is to increase all these metrics to have a successful marketing plan.

Revenue - From the 2015 financial, Amsterdam Brewery currently resides on having

$15,237,312 on overall revenues for all the products.

22

Gross Profit margin per product - All of Amsterdam Brewery’s products has gross profit

margin of 48% based on the 2015 financial summary.

Units sold in total - Amsterdam Brewery sold 5,856,000 total units based on the 2015 financial

summary.

Increasing these three factors can meet the financial objective which is to increase the

overall revenue of Amsterdam Brewery by approximately a million dollars.

23

Financial Analysis

In this section the team discuss the forecast for the sales throughout the year for

Amsterdam Brewery’s top 3 product in its new distribution channel (MLSE- Air Canada Centre).

The forecast will be calculated in ATAR format (Please See appendix L-1 for definition and

explanation of ATAR model)

Starts with awareness, the team assume that due to heavy marketing communication

campaign that Amsterdam Brewery has done throughout the year, the team has forecasted that

there will be 21% increase of the brand awareness, making the number into 72% roughly

458,762 thousand of the target market aware of the brand (See appendix L-1 to see the complete

calculation).

The team measure the trialability based on primary research (See appendix L-1to see

detailed calculation). The team has discovered that 25% of the 458,762 thousand population of

target market (114,599 number of people) willing to purchase the product.

For the availability, the team has discovered that Air Canada Centre will be accessible for

30% in which the target market reside in (city of Toronto). That will narrow down the number of

customer who will actually purchase the product into 34,380 people.

The team has made an assumption based on the sales promotion that Amsterdam Brewery

has done (free bandana, contests and loyalty card) it will make the number of repeat purchase

increased to 50%, hence the team assumed that the second purchase of the product will be as

much as 17,190. Throughout the year, the team has calculated the forecasted sales that will be

around 223,468 people who purchased the top 3 products in MLSE.

The risk that the team has identified for the calculation is that the number of percentage

may vary. For example the number that the team assumed for awareness might be slightly lower

due to accuracy of people that actually see the advertising media. The team has assumed that

24

there will be also some slight errors regarding repeat purchase since the team has based it on

roughly estimation.

During one year timeframe, the team has calculated the net income earned through

distribution in Air Canada Centre which is $ 271,205. The net income is calculated based on the

revenue of the top 3 products subtracted by the expenses of the entire marketing campaign. See

appendix L-2 to see the full calculation of income statement.

The team suggested that Amsterdam Brewery, recalculate using ATAR model in the next

two month after the marketing plan is implemented to check the accuracy of the calculation.

25

Appendixes

Appendix A (SWOT)

A-1

Strengths:

- 1 Been in business for over 25 years.

(The Amsterdam Brewery Story, n.d.)

- 2 Offers taste testing and tours of their

brewing locations (Brewhouse

Brewery Tour Registration, n.d.)

- 3 Has over 20 different kind of craft

(Amsterdam Brewing Company, n.d.)

- 4 Craft beer is created using all natural

(In The Tanks, n.d.)

Weaknesses:

- 5 Does not have a specific target

market. (Garbarino, n.d.)

- 6 Has brewing capacity of 48,000

hectolitres. (Garbarino, n.d.)

Opportunities:

- 7 Millennial do drink craft beer.

(Fromm, n.d.)

- 8 Beer sales are on the rise since 2015

(NATIONAL BEER SALES &

PRODUCTION DATA, n.d.)

Threats:

- 10 Smaller and larger beer companies

- 11 Amsterdam Brewery charges more

money for the amount of canned beer.

(Amsterdam Boneshaker, n.d.), (Great

Lakes Brewery, n.d.)

26

- 9 Selling craft beer at retail stores

around Ontario. (Beer sales in grocery

stores, n.d.)

A-2 (Detailed information)

Strengths

- 1 The main strength of Amsterdam Brewery is that they have been founded in 1986,

meaning that Amsterdam Brewery has been in business for over 25 years it shows that

they have experience within the brewing industry and are definitely not a start-up

company. (The Amsterdam Brewery Story, n.d.)

- 2 The second strength is that Amsterdam Brewery offers taste testing and tours of their

brewing locations. You are able to go to their website and book a date and time to when

you want to go to their location for a tour. The location of tour is only at one location in

Toronto, which is at 245 Queens Quay West Toronto, Ontario. (Brewhouse Brewery

Tour Registration, n.d.)

- 3 The third strength is that Amsterdam Brewery has over 20 different kind of craft beers

that they sell within their store location, moving more into the specifics, Amsterdam

Brewery used to have a total of 94 different craft beers, but they currently have 57 craft

beers that they sell at their location. (Amsterdam Brewing Company, n.d.)

- 4 The fourth strength is that Amsterdam Brewery’s craft beer is created using all natural

ingredients which provides a high quality tasting beer for their customers, there are no

preservatives and is never heat pasteurized. (In The Tanks, n.d.)

Weaknesses:

27

- 5 Main weaknesses that Amsterdam Brewery faces, the first and most important weakness

is that Amsterdam Brewery does not have a specific target market, this means that they

are selling to anyone they are able to reach to instead of appealing to one specific

demographic to cater their product towards. (Garbarino, n.d.)

- 6 The second weakness that Amsterdam Brewery encounters is that they currently have a

brewing capacity of 48,000 hectolitres. Compared to Mill Street, one of Amsterdam

Brewery’s competitors, Mill Street can brew a lot more beer than Amsterdam Brewery

because Labatt (large beer company) has bought out Mill Street which will expand their

production and brewing capacity. (Garbarino, n.d.)

Opportunities:

- 7 The main opportunity for Amsterdam Brewery, the main opportunity is that millennial

do drink craft beer, the age group that tends to drink more craft beer are people aged 19-

30 year olds, within that age group, consumers say that craft beer tastes better than

regular beer. With a unique 2,592 craft beer sold, they all fit perfectly when targeting

millennial. (Fromm, n.d.)

- 8 The second opportunity is that craft beer sales are on the rise since 2015 which it has

been going up by 12.8% in the year of 2015. This shows that people are indeed

purchasing craft beer over the other beers which sales have only gone up by 0.2%.

(NATIONAL BEER SALES & PRODUCTION DATA, n.d.)

- 9 The last opportunity is that Amsterdam Brewery can make their craft beer more

accessible by selling them at retail stores around Ontario. There are currently 60 grocery

stores authorized to sell beer, and over the upcoming years there will be up to 450

28

grocery stores that will be authorized to sell beer. This gives Amsterdam Brewery an

opportunity to get their product out to more retailers. (Beer sales in grocery stores, n.d.)

Threats:

- 10 Amsterdam Brewery also faces threats as a company, the first and main threat to

Amsterdam Brewery are smaller and larger beer companies. The reason why larger and

smaller beer companies are a threat to Amsterdam Brewery is that sales of craft beer can

go down due to sales going to a different company that is not Amsterdam Brewery. A

way for Amsterdam Brewery to make sure they gain and maintain sales is by increasing

the accessibility of their products and possibly more sales.

- 11 The second threat is that Amsterdam Brewery charges more money for the amount of

canned beer. For example, Amsterdam Brewery sells a 473mL canned beer for $3.10,

while Great Lakes Brewery sells their Canuck Pale Ale 473mL for $2.65. Taking a closer

look at rating of both companies, Amsterdam Brewery has a rating of 4.6/5 while Great

Lakes Brewery has 4.7/5. People will most likely choose Great Lakes Brewery because

of their greater rating, and lower price. A solution to this threat is by having taste testing

which will allow consumers to test out Amsterdam’s products which will show the reason

why Amsterdam Brewery’s products are more expensive, which is due to the natural

ingredients and high quality of the craft beer. (Amsterdam Boneshaker, n.d.),

(Great Lakes Brewery, n.d.)

29

Appendix B (Competitor Analysis)

B-1 They have three Brewpubs so far, one in Ottawa, one in Pearson (the Airport in Toronto) and one in Toronto but they also have what they call a Toronto Beer hall which is located within the Brewpub.

B-2

Mill Street only has 4 monthly events as seen on their website. (Mill Street Brewery, 2015) Whereas Steam Whistle has over 8 events a month (Steam Whistle, 2014).

B-3

30

31

Appendix D (Targeted Segments)

D-1 Proposed target audience profile

Proposed Target Audience for Amsterdam Brewery

Demographics Age: 19-30Gender: Male & femaleEducation: Secondary, post-secondary (full time or part time students)Occupation: Part time or full timeMarital Status: Single, married and common law relationshipHousehold Income: Around 49,363.60 annually (Elkins, 2015)

Psychographics Activities: Socializing, live sports, social media and attending events (MarketingChart, 2013)Interest: Sports, entertainment and connecting with peersOpinion: Social, quality drinking

Geographic Region: North America / CanadaCity: City of Toronto (Urban area)

Behavioral Response

Occasion for use: Events, sports, games, socializing and partyingKey benefits: Quality of beer, great taste, local presence, and all natural ingredients

The Demographic profile that Ultimate Draft Team has chosen is Millennial. Based on

2013 Time Magazine article, millennial are those who were born in 1980 to 2000 (Stein, 2013).

The team proposed that targeted audience will also consist of both male and female who are

currently participating in post-secondary education such as Colleges or Universities or in the

work force.

As for psychographics, the audience that the team proposed for Amsterdam Brewery are

mainly people who enjoy socializing during their free time. Millennial are also known for having

a high priority in terms of connecting with peers, and social media has become one of the most

vital way to connect with their peers (Investopedia, 2014). As they usually share photos, opinion,

read a review of product on the internet, they are hugely influential amongst peer on social media

32

(Morrison, 2014). The team also targeted those who enjoy activities such as socializing,

watching live sports, attending events such as festival and concert-anything related to socializing.

The team decided that the quality of the beer will be key benefit that the audience are

going after as well as the unique taste of the beer. The proposed target audience will be

consuming the product in occasion that has social ambient such as casual party and watching

sports game

Mainly due to Amsterdam Brewery prominent local presence, the team are focusing on

the geographic profile of the downtown area of Toronto as well as the surrounding GTA (Greater

Toronto Area, this will allow Amsterdam Brewery to target the proposed target market that the

Ultimate Draft Team has set.

33

D-2

34

Appendix E (Positioning)

E-1

Positioning Base

Amsterdam Brewery’s strength is having an incredible history within the Toronto area, being

over 30 years in business will be crucial for the millennial age group. The other strength that will

vary is having an all-natural ingredients make Amsterdam Brewery’s products distinctive with its

competitors (See appendix A-1). The millennial age group need an aspect of craft beer that will

stand out with all the other organizations that produce beer.

E-2

Positioning Statement

Amsterdam Brewery also has a strong history within Toronto. Millennials value experiences

over physical products (Brewers Association, 2015). Being around for more than 30 years in the

business is an aspect that Amsterdam Brewery can show to the millennial age group. It is critical

for the target audience to know about the history Amsterdam Brewery has in their hometown.

Having years and years of locally crafting brew for beer lovers is an important role for the

millennial age group. Millennials love brands that support their local communities and would

rather purchase from them over competitors (Brewers Association, 2015).

E-3

35

36

Appendix F (Marketing Plan Objectives)

F-1

Type of Objective

Objective Rationale

Financial To increase the total sales

revenue of Amsterdam

Brewery by one million dollars

based on the 2015 financials in

the first twelve months

As stated the Air Canada Centre sold

500,000 litres of beer (500,000 litres of

beer sold each year at Air Canada Centre.

(2011, October 9). Retrieved April 04,

2016,) and this can help us achieve this

7% growth in overall revenues. This

percentage is feasible because with the

addition of MLSE  Amsterdam Brewery

will have a total of five distribution

channels making the 7% increase very

attainable  The main focus on the

marketing goal is to increase the profit

when introducing Amsterdam Brewery’s

products to the MLSE organization.

Product To have MLSE exclusive packaging

Using MLSE exclusive packaging the

Amsterdam Brewery is gaining value and

increasing customer perception of the

Amsterdam Brand. Partnership marketing

has the potential to gain new customers in

37

new targeted segments as stated in this

report. Packaging has a big effect on

buying behaviours. Certain color, visual

and texture could actually affect customer

decision when they try to compare it with

competitor or stimulate immediate

purchase due to self-association or

emotional factor. {Lane, T. (n.d.). How

Does Packaging Affect Consumers?

Retrieved April 03, 2016} Packaging can

also affect the customer’s perception of

the brand and with a company like MLSE

with the good image should drive up sales

for Amsterdam Brewing Co. {How

Strategic Partnership Brand Marketing

Can Boost Business. (2011, July 15).

Retrieved April 03, 2016,}

Pricing To  give a  discount of 10% to

our target audience in order to

increase repeat increase

awareness by October of 2016

Maintaining the average price of the craft

beers can attract more consumers because

of the price appeal. Although the strategy

will be premium pricing, consumers

already have a high quality perception of

38

the products (See appendix B-3) by

discounting the price to our targeted

demographic will increase Amsterdam’s

brand aware

IMC I Objective 1: To increase the

awareness of the Amsterdam

Brewery’s brand by 7.1% by

the end of 2016

According to the team’s research data

findings, Amsterdam Brewery’s products

do not get enough recognition in the

market against its competitors. Having

this objective to guide the product trial

strategy for the top 3 products towards the

market can increase the overall awareness

of these products as well as the company.

This will be done through the IMC Mix

elements and traditional media.

IMC II To increase Amsterdam

Brewery’s product trial of the

top 3 products (All Natural

Blond, Bone Shaker and Big

Wheel) by 9% by September

2016 in order to acquire enough

new customers for the 7% total

To increase trialability means the potential

for more return customers which can

result in more potential sales which will

contribute to the financial objective

39

revenue increase by the end of

2017

Distribution To create a partnership with the

MLSE (Maple Leafs Sports &

Entertainment) to allow for

Amsterdam’s 7% revenue

increase by the end of 2017

Amsterdam Brewery having MLSE as a

partner in the distribution channel can

give the organization a chance to market

towards the target that are sports

enthusiasts; when partnering with MLSE

it gives Amsterdam Brewery access to

more than just the Air Canada Centre and

other sports arenas; it gives Amsterdam

Brewery access to Maple Leaf Square

which in turn gives the Brewery

admission into places such as: LCBO,

e11even, Real Sports Bar, Longo’s, as

well as different hotels and condo

buildings giving Amsterdam more access

to more consumers  This will benefit

MLSE because it taps into the local

brewery market which can potentially

boost their company image by supporting

local businesses (Skok, M. (2014, April

10). How Small Companies Can Get

40

Big,Fast. Retrieved April 04, 2016). In

doing so this can help them boost their

customer base and bring in more

potentially loyal customers in which will

help their bottom line.

41

Appendix G (Product Strategies)

G-1 Growth Strategy (Ansoff)

Market Penetration: Increasing the market share of certain product(s) in an existing

market

Rationale: The proposed growth strategy for Amsterdam Brewery to be positioned in is the

existing market where market penetration will be initiated. The MLSE already has a wide range

of audience that enjoy sports. Amsterdam Brewery is looking to position their selves to have a

growth within that existing market.

G-2 BCG Matrix

Star

All Natural Blonde

Question Marks

Downtown Brown

Amsterdam Seasonals

42

416 Lager

Cash Cows

Boneshaker IPA

Big Wheel Deluxe

Dogs

Adventure Brews

Fracture

The products in the BCG matrix is based on Amsterdam Brewery’s 2015 financial summary.

Star: The Definition of a star is high market share with high growth. The all natural Blonde is

considered a star because it generates the most revenue of all the products and represents 43% of

the sales and it is also Amsterdam’s flagship product

Question marks: These three products are considered question marks because all three of these

products have a lot of money spent to make them but combined they only generate 19% of total

sales

Cash Cows: These two products are cash cows because they both bring in enough revenue to

balance out production costs and together they combine for 34% of total sales

Dogs: Adventure Brews and Fracture are considered dogs because combined they only represent

4% of sales; as well the production costs for adventure brews can cost   anywhere from $2.95-

$5.95 and to make fracture production costs $2.95

G-3 Augmented product assessment

43

Core Product – All-natural ingredients

Actual Product – beer bottles, cans, lager

Augmented Product – exclusive packaging, loyalty cards

Rationale: Amsterdam Brewery’s benefit with its competitors is the All-natural ingredients that

its products carry. The actual product includes beer bottles, cans and lager. The augmented

product is the exclusive packaging and loyalty cards that Amsterdam Brewery is proposing for

product strategy. The style that the products will be focused on is sports-themed for the MLSE

teams’ fans.

G-4 Product analysis

ANALYTIC BONESHAKER BIG WHEEL ALL-NATURAL

BLOND

Target IPA Regular lager

drinkers

Light beer drinkers

44

Feature Citrus, flavour, high,

IBU, touch of

caramel

Aromatic, rich

flavour

Crisp, Light

Benefit Fresh, drinkable

strong beer

Enjoyable and easy

drinking

Nice to pair with

food, light drinking

Life Cycle Maturity/Growth Maturity/Growth Maturity/Growth

Rationale: The product analysis will determine the type of consumer that drinks the beer and

which product they prefer in a regular basis. The Boneshaker targets IPA drinkers, Big Wheel

with regular lager drinkers and All-natural Blond with the light beer drinkers. The Boneshaker

has a citrus more of a sweet taste flavor. Big wheel has an aroma that enhances the taste it is also

rich in flavor. The All-Natural Blond has a crisp and light taste. The benefit for Boneshaker is it

is fresh, strong alcohol content but very drinkable because of the good taste. Big wheel is

enjoyable and is to drink. All-natural Blond goes well with food and is very light to drink. Every

product is in their maturity and growth stage.

45

Appendix H (Pricing Strategies)

H-1

H-2 The average bottle of Tankhouse Ale by Mill Street is 341 mL and sells for approximately

$2.33.(See appendix B-15) When ordering a Tankhouse Ale in a bottle at the Air Canada Centre

it will cost $6.25 which is over double the cost (See appendix B-16)

H-3 All three of the beers will need to be increased in price to ensure a match to the average

price of other beers if served with MLSE and to make a high quality appearance.

H-4 Although MLSE offers some of our competitors, Amsterdam Brewery has an advantage by

being the first local Toronto Brewery.

H-5 Giving them a pleasurable experience from the local quality beer, to the Toronto vibes, and

finishing it off with the memorable experiences. There will certainly be benefits when it comes

to merging with MLSE, not only does the location suit our target but it also allows our target to

learn more about Amsterdam Brewery.

H-6 That can drive sales away, but once Amsterdam’s beer is in MLSE and gets marketed

properly there should be no complications.

H-7

46

47

H-8  This was the highest ranking, and out of 84,556 (University of Toronto/Enrollment , 2014)

currently enrolled students at University of Toronto there would be approximately 2,335 students

(See appendix H-17).  Students would pay $6.97 from the 10% discount for a beer instead of

$7.75.

H-9  "We hope that through reflecting on our history and continuing our passion for authenticity,

the brewpub will become a destination for the people of Toronto and it's visitors" says Jeff

Carefoote, owner and operator of the Amsterdam Brewing Company (Johnson, 2012).

H-10  It is easy to adjust any minor price issues to ensure they fit well in the arenas and

stadiums.

H-11  It is an item that one does not require purchasing on a regular basis, and it isn’t a necessity

but it is more of a luxury.

H-12

H-13

H-14

48

H-15

H-16

49

H-17

50

Appendix I (Distribution Strategies)

I-1

I-2

Graph Source:

http://media.ticketmaster.com/en-us/img/static/ticketlogy/images/2012_Concert_Trends_v11.pdf

I-31 MLSE

Rationale: The main reason being that the audience that sports and entertainment cater towards.

Craft beer is also the rise of 12.8% in sales in the year 2015 (NATIONAL BEER SALES &

PRODUCTION DATA, n.d.). Also during our findings and data collection through surveys,

51

Ultimate Draft Team has identified that 74 (69.8%) of 106 respondents (See appendix I-1) have

said they in fact do watch sports in a sports arena. The respondents are aged 19 and over that

have consumed beer before.

Weaknesses: One weakness with MLSE is that brewing capacity will not equal with the amount

of people who attend the sporting event at MLSE, a way to overcome this problem is to increase

brewing capacity is by increasing the amount of tanks (to increase to allow greater production)

and production line technology (Wisconsin Brewing Increases Production Capacity, 2015)

before attempting to partner with MLSE so the problem can be fixed before the partnership.

2 El Furniture Warehouse

Rationale: El Furniture Warehouse is trying to target a younger demographic (Ipsum, 2014),

specifically those who go out for a drink or want a place to hang out with friends. El Furniture

Warehouse’s food and beverage menu are all under $5 in price, which in this case, some of

Amsterdam Brewery’s caned and bottled craft beers (Boneshaker, All Natural Blonde, Brown

Ale, etc.) are all under $5 which fits within El Furniture’s menu (El Furniture Warehouse Menu,

n.d.).

Weakness: The weakness that Amsterdam Brewery may run into while partnering with El

Furniture Warehouse is that there will be other smaller and larger beer and craft beer

competitors. For example, El Furniture Warehouse also sells Bud Light, Guinness beer cans, etc.

A way to overcome this is by educating the workers at El Furniture Warehouse and allow them

to become experts with Amsterdam Brewery’s products as it will allow the employees to explain

to the customers what is great about Amsterdam Brewery’s craft beer, such as the natural

ingredients, as this can increase product sales, product awareness and customer satisfaction.

52

(Dirkes, 2014) Another way to compete with El Furniture Warehouse’s current beer/craft beer

partners is by having discounts and/or special offers (What to do when your competitor lowers

their prices, n.d.), such as a cosmetic giveaway with the purchase of Amsterdam Brewery’s craft

beer.

3 OVO Festival

Rationale: The Ultimate Draft Team believes that this is a good opportunity for Amsterdam

Brewery because people who attend concerts also fit within our target audience, which are

people aged 19 to 35 and can be either male or female. As of 2011 and 2012, the age groups 18-

24 and 25-34 are most dominant when it comes to attending live concerts (See appendix I-2).

Weakness: A weakness for Amsterdam Brewery to go into the concert industry is that people

who attend live concerts need to be legal age to consume beer, and sometimes live concerts do

not have an age restriction to attend the concert. Another weakness is that there are other beer /

craft beer competitors within OVO Festival. A way to overcome the competitors is also by

having discounts or sales on Amsterdam Brewery products within OVO Festival. (What to do

when your competitor lowers their prices, n.d.)

53

Appendix J (IMC Strategies)

J-1

Social Media Assessment

Amsterdam Brewery - Facebook, Instagram, Twitter, Youtube

o Facebook(11.2k likes)o Instagram(10.8k followers)o Twitter(27.2k followers)o YouTube (40 followers)

Social media strategy

Facebook

Rationale: In Canada Facebook is the most popular social media site. In a 2015 Study 59% of respondents use Facebook. Even though Amsterdam Brewery is already on Facebook, they should be more interactive with their followers and keep them updated.

Linkedin

Rationale: Linkedin was the second highest social media used in Canada at 30%, therefore Amsterdam Brewery should create a Linkedin page.

54

2)          content mind map for Amsterdam Brewery

 

3)          Content calendar for one week, including:

Weekly content calendar (June 2016) example

Platform: Facebook, Twitter and Instagram

Date 11

Monday

12 Tuesday

13 Wednesday

14 Thursday

15

Friday

16 Saturday 17 Sunday

Platform

FB

TW

IG

FB

TW

IG FB

TW

FB

TW

IG

DAY OFF TW

FB

IG

Topi “Toronto and Check in Posting Re- Announceme DAY OFF Post some

55

c Amsterdam Brewery”

Post a picture of Amsterdam Beer with a background of iconic place in Toronto

upcoming events

tweeting  and answering posts on AB’s

nt of the winners

(all social media platform)

pictures about Amsterdam beer and hockey game

With hashtag #SundayFunday

J-2Amsterdam Brewery Web assessment

1)     SMART website objective

To increase the website traffic by 12% by simplifying the navigation of the website by the end of 2016

Rationale: improving the interaction with existing and potential consumers can help Amsterdam Brewery’s awareness towards the public and also brings up the sales.

2)    Top 3 key messages to get across to the target market while visiting website.

1. We are original2. Visit the Amsterdam Brewery’s restaurant to experience a whole new level of local craft

beer3. We use all natural ingredients

3)   All of the content areas (pages/topics) to include on the website.

Title

Location

Contact

Menu (beers, beverage, food)

Social media

Site map

Policies and rights

Terms and conditions

56

4)    All of the navigation tools that needs to be include on the website.

Custom search bar (powered by Google or in-site)

Site Map

Biographies

5)    Wireframe recommendation

57

J-3

IMC execution detailIMC Media & Execution

As the team has mentioned in the first instalment of IMC execution plan, Pattison and Clear

Channel Canada will be two advertising agencies who provides out of home media advertising for

Amsterdam Brewery. Pattison will provide interior advertisement cards for TTC (bus) and transit shelter

meanwhile Clear Channel Canada will assist with outdoor advertising using billboard.

For the transit advertising the team has decided to focus on Bus advertising as 47.1% of the

respondents from primary research saying that they commute using bus in daily basis

58

. There will be two face type of transit advertising, one is half showing (with 831 number of

faces) and the other one is full showing with 1662 number of faces

The team has decided to advertise with transit advertising three times in a year, one full month for

each (further will be explained in the next section: campaign calendar). Based on the calculation by the

UDT team, the team estimated that the cost for advertising with Pattison would be $ 66,629 for three

months period-two months with dull showing and one month with half showing.

59

Clear Channel Canada will be assisting Amsterdam Brewery with billboard advertising. The team

has proposed to launch the campaign through billboard for three full months throughout the year. The

team has decided to locate the advertising material in Gardiner & Sherburne due to its strategic location

within the downtown Toronto.

For billboard advertising, there is a production cost ($ 2,800) for one advertisement and $ 3,890

installation fees. The team has calculated that to advertise with billboard Amsterdam Brewery needs to

add $ 89,625 for three months. Throughout the year.

60

Cost of billboard ads for 3 months

Appendix J-4

61

62

Appendix K (Implementation Plan)

K-1

K-2

Action Who Time How Contact person

IMC Social media

Web developer/social media

June (time lead)July-May (execution)

During the lead time develop the content for each of the social media platform in June based on the execution IMC example

Publish the content based on IMC calendar.

Billboard Marketing department of Amsterdam

Production of creative execution of

Contact Pattison and hand

PattisonBree Williamson

63

Brewery billboard – October

Execution and installation - November

out the example for execution (billboard)

Corporate Receptionist

905-282-6800

bwilliamson@pattisonoutdoor.com

Transit Marketing department of Amsterdam Brewery

Production of creative execution of billboard – October

execution and installation - November

Contact Pattison and hand out the example for execution (billboard)

Clear channel Canada(Kevin Leslie Vice President, Operations & Production)20 Dundas Street West, Suite 1001Toronto, ON   M5G 2C2 (416.408.0800)

Sales Promotion

Dave MartinDirector, Retail Sales & Operations

And social media department

September to January for the contest.

End of January 2017- announcement of winners

Publish the contest on social media and restaurant with flyers during the lead time (September-January) and announce the winners by the end of January 2017.

Action Who Time How Contact person

ProductDesigning the exclusive packaging

Production Coordinator / Packaging

Lead time- June

The production division contacts the The

Kristen CorbisieroManaging Editor of

64

Supervisor Execution- July

Equipped Brewer

or 518-635-0375.

Executing exclusive packaging to Boneshaker and All Natural MLSE

Production Coordinator / Packaging Supervisor

Lead time- August

Execution- September

Amsterdam Brewery production

Getting loyalty card from vicinity

Lead time – June

Execution- Get the card ready - July

Contact vicinity for discussing the partnership on loyalty card

BUSINESS INQUIRIES OF VICINITY1-855-292-9766info@vicinityrewards.ca

Student Discount

Director of Finance & Admin

Lead time in – june

Start to apply the student discount

Distribution(MLSE)

Director, Retail Sales & Operations

Get the proposal done by June and send it in June. Approval in JulyAugust is the lead time (preparing the product to be distributed to MLSE)

Distribute the product to MLSE

65

Appendix L (Financial Analysis)

L-1

L-2

66

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