MARKETING PLANNymburk brewery

1. Basic information

• Name: Postřížiny Brewery in NymburkLimited Liability Company

• Address: Pražská 581288 25 NymburkCzech Republic

• Company owner: Pavel Benák (100%)• Articles: - goods purchase in order to its sale and goods sale

- beer and malt production- molasses, non-alcoholic and special beverages production- pasturage and pasturage mixture production

• Postřižiny Brewery, Limited Liability Company, is a middle size local brewery size with a long history. It was found in 1785. Czech people became aware of the brewery thanks to the close connection with the famous writer Bohumil Hrabal, who lived here from 1919 to 1947 and who wrote a book “Postriziny” based on the stay here. The book was cinematized by the famous director Jiri Menzl.

„Our Postřižinské beer, a drink for everyone“

• Main objective: Increase export to Germany to 30 thousand hl by the end of the year 2012.

• Exports will include Gold Bohemia Beer - 330 ml, Nymburk Can - 0.5 liter, Gold Bohemia Beer - 330 ml (6 pack).

• Customers are median incomes and low incomes.• There is own beer shop in the brewery building• The brewery regularly organizes various events (open day, Postřižiny

Express,...)

1.1 Mission

• The brewery successfully increased sale into Norma chain. • The main exportable country: Germany, Sweden, France, Denmark,

Romania, Finland and Russia. • In 2009 the company supplied supermarkets such as Penny Market, COOP

Centrum, Ahold, Plus Discount, Norma, Billa and Kaufland.

2. Situation at our markters

• Local people• Chain supermarkets• Foreign customers

2.1 Our customers

Strengths

• Long tradition (116 years) and literally famous brewery (Bohumil Hrabal)• Export experience • Long partnership with Czech multiple chain stores• Broad beer portfolio (8 sort)• longlasting volume production, strong know-how• Innovated production technology• Non foreign capital, 100% domestic capital• Well-content and motivated staff• 37 beer awards and evaluations in the last 10 years• Open and friendly to customers, partners and very good Public Relation• Possibility of buying base materials for beer production (malt) from the

neighbouring supplier

2.2 SWOT analysis

Weakness

• Small percentage interest on the Czech market• Net profit in the year 2009 only 401 thousand. CZK (500% decrease compared

to 2007) • 1 revolving loan and 1 medium-term loan• Weak promotional activities and missing marketing strategy• The lack of capital for marketing and promotion• Low reactions towards the market needs considering amount, assortment and

tastes of the brewery products• Absence of non-alcoholic beer

2.2 SWOT analysis

Opportunities

• Slowdown of competitive business• Price decline of primary commodities• Consumer increase of beer per year• Modern production technology• EU support to traditional manufacturing industries

2.2 SWOT analysis

Threats

• Price cuts by competitors• Change in legislation• Reduce the consumption of beer• New competitors on market• Increasing energy prices• Increasing base materials prices • Inaccessibility of capital (loans)• Decreasing consumers purchasing power• Entry of supra-national competition with cheap products in the local market

2.2 SWOT analysis

• Supra-national breweries• Big Czech breweries (Pilsner and Budweiser) and international firms

producing beer of good quality.

2.3 Competition

• 106 liters per person annual beer consumption in Germany, total 93 mio hl.

• Drink beer almost 70% of the population. 54% of Germans drink beer at least several times a week

• Bottled beer is preferred• 75 % prefer only one brand and better domestic brands

2.4 Marketing research

There are about 60 domestic beers brands in Germany. Direct competitors are Budvar, Breznak and Pilsner Urquell from Czech republic, from foreign countries there are especially Guinness and Carlsberg. Indirect competitors are domestic beer production in the low/medium price range.

3. German beer market

The company brews 6 kinds of lager, 2 kinds of dark beer and special kinds of beer.

Types of beer:

• Doktorova 8°• Postřižinské výčepní• Pepinova desítka• Tmavý ležák• Postřižinské pivo 11%• Francinův ležák• Něžný Barbar• Bogan• Gold Bohemia Beer• Nymburk Lager Beer

4. Marketing mix

• It is sold under the name “Postrizinske pivo” in the domestic market and under the registered marks “Gold Bohemia Beer” and “Nymburk Lager Beer” for export. Beer is tapped into 30 and 50 l barrels, 0.33 and 0.5 l bottles and into tanks.

• The beer has got durability from 30 days up to 1 year according to the way of manufacturing and final preparation.

• Delicious, sweet-bitter balanced beer, harmonious, gently sparkling, honey-gold colour with rich and creamy foam

• The biggest volume on business takes Bohemia Goldbeer

4.1 Product

Wrapping beer production 2009 in hl (bottle, barrel, tin)

bottle cask can0

20000

40000

60000

80000

100000

120000114,043

22,56312,000

Sort variety production (draught beer, lager, light, special)

normal lager light special0

100002000030000400005000060000700008000090000

10000096,013

39,273

12,815505

• Direct distribution channels (dealers, own beer shop, restaurants)• Penny Market, COOP, Ahold, Norma, Aldi, Metro, Lidl, Rewe, Edeka• The brewery is very flexible and operative, owns several trucks that within

a short period of time may drive beer to terminals or directly to the final customer, depending on the agreement.

• At the place where the product will be sold (in a particular trade chain) will be located sales support items (leaflets, POS and POP materials).

4.2 Distribution

• Before selling we will provide training to chain store managers, promotional materials, tasting, samples, support and service.

• Beer which is going to be exported is treated by special technologies to longer its shelf life. So the final price is increased.

4.2 Distribution

The table of selected economic indicators: (in thousands €)

Indicator year 2007 2008 2009

Turnover 4 709 4 203 4 722

Own capital 572 168 604

Sales of products 4 438 4 055 4 522

Value 1 113 1104 4 522

Profit for the period 82 16 16

Wages costs 710 684 711

Bank loans 400 620 566

Number of employees 90 88 87

Average wage 671 654 667

4.3 Economic indicators and price

• Estimated price of 0,33 l Bohemia Gold Beer is about 0,45 – 0,50 €

• Estimated price of 6 pack 0,33 l Bohemia Gold Beer is about 2,5 – 3 €

4.3.1 Price

• The brewery is financed from its own sources and bank credits. The brewery carries out financial analyses with the help of ratio index and in the bases of it the board decides how to handle the sources

4.3.2 Financial status

a) Return of sales - blueb) Return of costs - redc) ROA – Return on Assets - greend) ROE - Return on Eqity - violete) ROI – Return on Investment – light

blue

2006 2007 20080

2

4

6

8

10

12

14

16

18

4.3.3 Analysis of profitability

2006 2007 20080

1000

2000

3000

4000

5000

6000

EAT - earnings after taxisEBIT - earning before interest and taxisEBITDA - earning before interest, taxis and depreciation

4.3.4 Profit analysis

Product / Year 2010 2011 2012

Bottles 322 331 341

Barrels 85 88 90

Cans 37 38 39

Sales plan in thousands of euros

4.3.5 Sales targets by segments

How is the selling of the product arranged?

• Personal selling (dealers)• Customer contacts (marketing data, email, mobile phone)• Retail• Wholesale

4.4 Promotion and communication

• Advertising in regional media• Radio spots• Billboards• Internet (homepage, banners)• Use of well-known writer‘s name (Bohumil Hrabal) and his masterpiece

(Postriziny) which was cinematized for promoting beer on the labels and promotion materials

4.4.1 Advertising

• Fairs and exhibitions home and abroad• Taking part in quality food product competition• Beer days (tasting beer, contests, samples)• Mats, tablecloths, umbrellas, mugs with logo• Free of charge tastings

4.4.2 Promotion and sales

• Homepage link on retail web pages (lidl.de, norma.de, rewe.de etc.)• Leaflets• Radio in store – trailer• Trailers at the place, where the products are sold – drinks and beer department

(POS, POP materials)• Boot actions and repetitive actions for example: Christmas, Valentines Day, Easter,

2+1, 3+1• Competition for a weekend in the Czech republic once a year• PR article with the introduction of a product and company in the German gourmet

magazine (Apetit, Gourmet, etc)• Press conference (invite the target group of professional journalists and ifluential

people

4.4.3 How to promote – summary

• During the evaluation how is our beer successfull in the German market, we can measure: - the sales effect - communication effect

• Selling is more easily measurable effect, we take control and monitor an increase on our bank account. The communication effect is usually evaluated through research. We hard tried to create a good marketing plan outline , our marketing plan is a living document.

5. Results