THE NEW ALBANIAN BREWING COMPANY

MARKETING AUDIT

LUKE BRITT

CHEY NAVARRO

BUS-M450

MARKETING STRATEGY

FALL 2015

Table of ContentsExecutive Summary…………………………………………………………...…………………..3

Introduction…………………………………………………………………….………………….4

Competitive Marketing Analysis…………………………………………………….

…………….5

Market Segmentation…………………………………..………………………………….5

Competition………………………………………………………………………………..6

Positioning Strategy ………………………………………………………………………9

SWOT Analysis……………………………………………………………….…11

Key Collaborators….…...………………………………………………………..14

Marketing Program Analysis………………………………………………………….…………14

Product…………………………………………………………………….......................14

Promotion………………………………………………….………….............................15

Price…………………………………………………….………………..…....................16

Channel Strategy/Location……………………………………………………….………18

Recommendations………………………………………………………….…………….………19

Target Market Selection………………………………………………….........................19

Positioning………………………………………………..……………………………...20

Marketing Mix…………………………………………………………...........................21

References……………………………………………………………………………………..…28

Appendix…………………………………………………………………………………………29

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Executive SummaryOver the past few months, data has been collected and constructed to perform a

marketing audit for the New Albanian Brewing Company. The purpose of this audit is to

evaluate the soundness and foundational marketing strategy of the New Albanian Brewing

Company. With this in mind, the audit is broken up into three major sections.

Section one describes the competitive market the New Albanian Brewing Company has

chosen to enter. In this section, a competitive marketing analysis has been conducted. It is

comprised of the defined market segmentation, the competition, the positioning strategy, a

SWOT analysis, and the key collaborators.

Section two includes a marketing program analysis. This sector defines what products the

NABC offers, the promotional tools used, the pricing strategies used, channel strategy, and

location.

In the final section, recommendations to the NABC have been discussed. The

recommendations presented include the following: how to improve target market selection, a

new positioning strategy, and how the NABC can improve upon the elements in the marketing

mix.

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IntroductionWhat was once a failing Noble Roman’s franchise, The New Albanian Brewing

Company is the first commercial brewery to operate in New Albany since 1935. The brewery

itself was not founded until 2002, however, the original establishment had been in operation

before its conception. In 1987, founders Rich and Sharon O’Connell transformed a failing

Nobel Roman’s into Sportstime Pizza, an up-beat, independent pizzeria just off Grant Line

Road. The company continued to undergo further transformations and additions as the years

passed, each having a significant effect on the next. 1990 brought forth the expansion of Rich

O’s BBQ and in 1992, Rich O’s Public House. The company decided to depart from the

typical “cheap” beer, and move towards the mass-marked American beer. This was the first

step in the direction of entering the microbrewery market.

Just two years later, the Sportstime Pizza and Rich O’s Pubic House changed the name

one last time to the New Albanian Brewing Company. Former owner Roger and current

owners Amy and Kate had stated intentions of eventually brewing on site. Over the next

eight years, the business owners gradually obtained the necessary resources to embark on

their journey to on-site brewing. The company became regionally (and eventually,

nationally) notorious for its specialized “guest” beer program. A large variety of taps were

introduced as well as an expanded bottled list comprised of popular beer styles from a

national and global level.

2002 marked the beginning of the on-site brewing legitimizing the New Albanian

Brewing Company as a brand. As years passed, the NABC gained recognition in the market

resulting in an increase in demand. In order to meet this growing demand, the company had

to reassess their production tactics as the brewer could not keep up with market demand.

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Bank Street Brewhouse, a secondary brewery, and restaurant, opened in 2009 doubling the

brewing capacity. This necessary addition aided in meeting market demand, maintaining a

customer base, and allowing the company to distribute some of the best craft beer in the area.

II. Competitive Marketing Analysis

Market SegmentationMarket segmentation plays a key role in determining the direction of a business and helps

in the development of a sound marketing strategy. The segment of the market must first be

considered before developing the marketing strategy. In regards to the New Albanian Brewing

Company, the segment to be observed will be that of pizza consumers. To segment this market,

four components will be observed: geographic location, demographics, psychological factors,

and behaviors. These components serve as bases for the market segmentation.

Before analyzing the specific geographical segment, it is important to consider key

elements from a broad perspective. The United States’ pizza consumption accounts for one-third

of the annual global pizza market. Statistics from the Franchise Disclosure Documents concluded

the American consumption of pizza on a daily basis averages 100 acres. On average, 93% of

Americans eat at least one pizza per month. This $40 billion industry comprises approximately

17% of all restaurants in the nation; of these restaurants 40.89% of pizza revenue comes from

independently owned pizzerias nationwide. Statewide, Indiana is home to 1,942 pizzerias, 922 of

which are independently owned and account for 47.48% of the state’s pizza revenue. Pizzerias

dominate the food industry not only on a national level, but also in the area specific to this

research (Floyd County, Clark County, and the Louisville metro area).

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The demographics that largely impact the pizza consumer market include marital status

and family structure, age, and income. Statistics show that only 60% of meals are prepared and

eaten at home. This is largely attributed to the increasing number of dual-income and single-

parent households; parents have less time to cook due to heavy work schedules. Additionally, the

rising youth population with more disposable income contributes greatly to pizza sales. The

average pizza consumers aged 18 to 44 account for 77% of pizzerias’ customers; those with an

annual income of $75,000-$99,000 and those with children are the are the primary customers.

Psychological factors that contribute to segmenting the market mainly consist of lifestyle

preferences. For example, health conscious consumers tend to avert pizzerias as a meal of choice

due to the lack of nutrients. However, those whose satisfaction derives from convenience, lower

price, and taste, disregarding the nutritional value, may consider pizza more often. Additionally,

pizza is purchased and consumed at various occasions, for individual or group consumption. A

majority of purchases are for group consumption, therefore it is a food most popular among a

group setting or gathering.

Lastly, loyalty is a key factor in the behavioral characteristic of the pizza market

consumers. Consumers of pizza tend to remain loyal to a specific brand and become hesitant to

switching between different pizzerias.

CompetitionThe New Albanian Brewing Company introduces a unique and fresh style to the

traditional pizzeria by offering high-quality craft beer brewed in-house complimenting the pizza.

The New Albanian Brewing Company competition consists of three pizzerias offering similar

products. Boombozz, Wick’s, and Bearno’s may not be microbreweries themselves, but they

include a wide selection of craft and domestic beers in addition to the pizza and menu.

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Boombozz targets multiple markets with a modern, upscale tap house design. The

primary target market consists of customers seeking gourmet pizza at a reasonable price. These

customers can be characterized by those in the middle-class income range and typically include

families. This is a profitable target market as 47% of the 37,000 residents in New Albany area

belong to this income range. With nearly 6,000 elementary, middle, and high school students

enrolled in the surrounding area, Boombozz also aims to capture this market.

The establishment is divided into two sections, a family dining room with booths and

tables to accommodate larger groups and a bar with additional seating. A variety of craft and

domestic beer on tap appeal to a different market, young to middle-aged males. Boombozz

provides these customers with a casual place to socialize with peers over a beer while watching

one of the many televisions located around the bar. The separation of the bar and family dining

area allow Boombozz to target both markets effectively without having to sacrifice the key

characteristics that distinguish each atmosphere.

Wick’s targets two distinct markets of the pizza segmentation. During the week, Wick’s

can be described as a typical family pizzeria offering a superior pizza at a premium price.

Through this approach, they are targeting consumers seeking a high-quality pizza and those who

are not price sensitive when selecting pizza. Characteristics of this market include consumers in

a middle to upper-class income range. In the New Albany area alone, about 12,730 consumers

fall into this range.

To compensate for a missed market by offering a more expensive pizza, Wick’s aims to

appeal to a college student market during weekends. To accomplish this, Wick’s locations will

invite local bands to perform, many of which are comprised of college-age individuals. The

college student market may not have the disposable income compatible with Wick’s higher

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prices, but the exposure to the pizzeria at an impressionable age can potentially attract their

business as they mature financially.

Similar to Wick’s strategy, Bearno’s targets the middle to upper-income ranges by

offering a higher priced, higher quality pizza. To appeal to more than just the targeted market,

Bearno’s offer deals to attract the 8,400 families in The New Albany area. On Monday and

Tuesday evenings, children eat for free. This is a great way to invite families who otherwise may

not have ventured in due to the higher cost pizza.

With 17 craft and domestic beers on tap, Bearno’s is targeting the young to middle-aged

males in the area. The New Albany area provides Bearno’s an opportunity to reach 19,600

consumers who can be classified as young to middle aged males. With a couple televisions

behind the bar, Bearno’s offers these consumers a casual place to mingle with peers over a beer.

The targeted market is where the New Albanian Brewing Company differs from

competitors. While the competition’s primary target market is captured by the pizza, the New

Albanian Brewing Company targets the desired market with the craft beer and microbrewery

aspect of the business. The pizza serves as a compliment to the primary product. Therefore, the

high-quality food is not the main concern. The company aims to target a market with a similar

perspective, consumers seeking a high-quality craft beer first, and a satisfying meal second. This

is a profitable selection as the craft beer market’s exponential growth is superior to any other

beer market in the United States with consumption rates increasing 16% since 2014. The New

Albanian Brewing Company established craft brewery identity aids in capturing a greater

percentage of this rapidly growing market.

The New Albanian Brewing Company target market contains young to middle age male

consumers typically 25-65 years of age who account for 53% of the local population. The

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business provides this market with a casual place to relax and enjoy a craft beer amongst

coworkers or friends.

Positioning Strategy Initially positioned as a sports-oriented pizzeria, the New Albanian Brewing Company

recognized an unmet need in the local area and decided to seize the opportunity for repositioning

and serve a superior craft beer beyond the “typical slavish allegiance.” Although they offer a

pub-style pizza menu, they are not positioned on that aspect. The New Albanian Brewing

Company is positioned to meet and exceed expectations of craft beer consumers accompanied by

a pub-style pizza menu. While some companies differ in their desired position versus their actual

position, the New Albanian Brewing Company is one in the same; the company is primarily

known for their craft beer, and the pizza is typically considered secondary. This is accomplished

by their large variety of craft beer offered.

Boombozz, Bearno’s, and Wick’s share a somewhat similar positioning strategy; all are

positioned on the pizzeria, but the quality is where each business differs. Wick’s is positioned as

a pizzeria with the highest quality of pizza. The pizza shaped menu offers a large variety of items

in addition to the pizza, but the spotlight is on their high-quality pizza. Compared to competitors,

the average prices of items on the menu are high indicating this higher quality. The business has

also succeeded in aligning the actual position with the desired position. Wick’s strives to hold the

title for the best pizza and have maintained that title for the past ten years. Like its competitors,

Wick’s also has a full bar offering similar craft and draft beer, but this attribute is secondary;

customers of Wick’s are attracted by the pizza.

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Boombozz maintains a similar position. With pizza quality slightly lower than Wick’s,

Boombozz is positioned somewhat between its competitors, but more similar to the New

Albanian Brewing Company. The slightly higher quality of pizza and the moderate prices sustain

their desired position. The atmosphere of the restaurant and the tap house attract and uphold a

consistent customer base which indicates a symbiotic relationship between the pizzeria and the

bar.

Contrasting with the New Albanian Brewing Company positioning, Boombozz also

emphasizes a focus on a family aspect. They provide a fundraising opportunity, called Fund Day,

to surrounding schools and organizations. Boombozz will design a flyer for the school or

organization to send out to family and friends. The flyer is to be presented on the specified day,

and fliers are totaled at closing. Boombozz will then donate 20% of the day’s sales generated by

the flyer, to that school or organization. This is an effective tactic in positioning the business as a

family friendly pizzeria.

As previously mentioned, Bearno’s shares a similar strategy to Wick’s by offering higher

quality pizza at a higher price. This position is maintained with the prices set above the market

average. The company aims to position themselves as a family friendly pizzeria, and this is

reinforced by the friendly atmosphere and the days dedicated towards children eating free.

The perceptual map below illustrates the positioning of the New Albanian Brewing

Company along with its competitors. The two variables observed include pizza quality as the

first variable on the y-axis and emphasis on beer as the second variable on the x-axis. The New

Albanian Brewing Company capitalizes on the beer aspect over pizza, therefore, placed high on

the beer emphasis axis and lower on the pizza quality axis. Boombozz, the closest competitor,

focuses more on the quality of the pizza, but also offers a large variety of craft and draft beer.

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Following closely behind is Wick’s, a pizzeria that has been known for the best pizza in

Louisville for the past decade. They are very high on the pizza quality axis, and their beer

selection is plentiful but secondary therefore the emphasis is lower. Lastly, Bearno’s is

positioned as a quality pizzeria with little emphasis on the domestic and craft beer.

SWOT AnalysisThe company’s ability to brew a collection of high-quality craft beer on location of the

restaurants distinguish their product from the competition. This distinctive feature does not exist

among their primary competitors which serves as the company’s unique selling proposition. The

onsite brewery adds authenticity and identity to the beer, the atmosphere, and the New Albanian

Brewing Company brand itself. Competitors Boombozz, Wick’s, and Bearno’s do offer a variety

of domestic and craft beer, however, it is brewed from an outside distillery.

The New Albanian Brewing Company also has an established identity in the

microbrewery industry. Being the first commercial brewery to operate in New Albany since

1935, the company has been rated as high as Number 6 in the world in craft breweries according

to Ratebeer.com; a substantial accomplishment considering their beer is limited to a very local

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market in southern Indiana and Kentucky. In, 2011, the NABC was voted 1st in the Louisville

Eccentric Observer’s best beer list, best southern Indiana restaurant, and best local beer. They

also placed 2nd in the best local brewery.

Where strengths exist, so do weaknesses. From an external perspective, the company

lack’s inconsistency of the brand name and properly placed signage. Although the location of the

New Albanian Brewing Company is well-established among locals, the name is not. Since 1987,

the company has been called Sportstime Pizza, Rich O’s BBQ, and Rich O’s Public House;

finally in 1994, it became the NABC. Veterans, or long-time customers may refer to it as its

original name, and new customers may refer to it as simply, The New Albanian. Overall, the

various name changes and inconsistency may contribute to a loss of identity. In addition, the

establishment is not visible from the highway, and no signage exists to inform drivers of a

pizzeria just down the road. Many locals are aware of the location, but it may be overlooked by

non-locals or consumers unfamiliar with the area. This missed potential may have an impact on

their sales.

Regarding internal factors, the NABC’s dining menu is somewhat condensed compared

against its competitors. In addition to pizza, the three-fold menu offers eight appetizers, two

salads, five types of pasta, and nine different sandwiches. These categories appear on the

competitor’s menus, however, the NABC lacks variety, additional options, and a fixed desert list.

This may seem like a disadvantage to some, but where they lack in variety of menu items, they

rectify in their assortment of craft and domestic beer.

While some pizzerias are only able to obtain their variety craft beer from an outside

distillery, the NABC brews on-site. Having the on-site brewery provides countless opportunities

for the company to experiment with different brews and produce a flavor unlike any other. This

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gives the company a competitive edge because they have the resources to satisfy customer

preferences accurately and in a timely manner.

The strong emphasis on the craft beer allows an opportunity for the company to improve

the quality of the pizza or the menu. There is always room for improvement, and improving on

the secondary product can have lasting effects on the business. An increase in quality of pizza or

the menu may separate the NABC from their original image of primarily being a microbrewery

and transform it into a microbrewery with an excellent menu.

Even though their target markets are contrasting, the Pizza Hut located towards the

entrance of the NABC serves as a threat in regards to their pizza and dining options. Consumers

tend to seek convenience, and if one were to look for a pizzeria while driving down Grant Line

Road, they will see the Pizza Hut before they even see signage for the NABC. This goes hand-in-

hand with consumers’ strong inclination to brand loyalty towards chain pizzerias. They may be

more likely to visit the Pizza Hut rather than the NABC, not because of the quality of the pizza,

but rather the loyalty to the brand.

Rising competition from independent and chain pizzerias, as well as microbreweries,

undermine the NABC as customers enjoy the novelty aspect of new businesses. From the

microbrewery aspect, new entrants to the market may threaten the NABC’s customer basis due

to the limited number of breweries in the city. The emergence of microbreweries can attract their

customers with the novelty aspect which may or may not retain them.

Increasing health consciousness among consumers affects both the pizza industry and the

microbrewery industry seeing as they are not high in nutritional value. Additionally, the thriving

popularity of a gluten-free diet does not comply with the standard ingredients for beer or pizza.

The New Albanian Brewing Company Pizzeria and Public House’s gluten free menu items are

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very limited to only a few appetizers and two different types of salad. Although it is possible to

brew, they do not offer gluten free beer.

Key Collaborators

The New Albanian Brewing Company has partnered with two distributors, Caviler and River

City distribution. These two distributors assist the NABC with the circulation of the company’s

craft beer to the markets of Indiana and the Louisville Metro area of Kentucky.

With the New Albanian Brewing Company being a local brewery offering some of the best

craft beer in the area, a unique opportunity for the competition has arisen. Boombozz has created

a partnership with the NABC. This partnership allows Boombozz to offer a selection of the

NABC’s craft beer on tap at Boombozz. Wick’s also offers a variety of the NABC’s craft beer

but only during select times of the year.

III. Marketing Program Analysis

Product The New Albanian Brewing Company Pizzeria and Public House offers a variety of craft

and select domestic beers complimented with a pub style, pizza-driven menu. The somewhat

condensed menu includes varieties of appetizers, salads, pasta, sandwiches, and pizza. The

signature pizzas include the Big Ten, the Herbivore, and the Carnivore. Hand-tossed,

refrigerator, upside-down, and roundhouse style pizzas can include a variety of sauces and

toppings.

The tap list includes a variety of 48 craft beer (some seasonal, others year-round) and at

least 25 hand selected draft beers. According to the company website, the bottled beer list has

been described as a “national treasure,” with roughly 250 selections encompassing all beer

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styles. Their craft beer is brewed onsite visible from the dining area and is offered on tap in

surrounding pizzerias (including the competition), restaurants, and bars. The NABC also allows

consumers to purchase kegs of select brew upon request, another feature that differentiates their

business in the market.

PromotionThe NABC utilizes several social media outlets to help keep customers up-to-date with

what’s happing at the New Albanian Pizzeria and Public House and the Bank Street Brewhouse.

Each week, the NABC rotates a new selection of craft beers on tap. This is so customers can

have a fresh assortment of craft beers available to them .The NABC will use its Facebook page

to inform followers about what taps are being switched out and what crafts are being added.

Both the Bank Street Brewhouse and the NABC offer beer specials throughout the week.

Customers can simply view the Facebook page to find out what time and what type of specials

are being offered during the week. Specials include a $2 discount off select craft during the day

and “Growlers Refill” days. A growler is a bottle that allows beer lovers to carry fresh beer from

a brewery to their house.

The previous owner, Roger Baylor, used his personal Twitter account to tweet the NABC

promotions, instead of using the NABC actual twitter account. With Roger leaving the company,

the NABC will need to use its actual twitter account to keep a Twitter presence. Further

elaboration on Twitter will be made in the recombination section.

The NABC has an artist on staff named Anthony Beard. Beard creates these lavish

posters that portray the uniqueness of each craft beer the NABC offers. These posters can be

seen throughout the NABC and allows customers to get a sense of what the beer will taste like. A

few of the NABC craft poster can be seen below.

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PriceThe NABC does not follow a normal psychological pricing method. A psychological

pricing method is defined by having a product's price ending in $0.98 or $0.99. A majority of the

NABC’s menu items do not follow this method, but rather a somewhat arbitrary method. For

example, potato wedges cost $2.12 and pretzels cost $2.18, unless this pricing scheme is a stance

against conformity, it is senseless to set prices at such odd intervals.

The next aspect that will be looked upon

is how the NABC’s pizza prices compare to the

competition. The table to the right illustrates the

cost of pizzas at each pizzeria. After looking over

the table, it can be concluded that the NABC has the lowest priced pizza amongst the

competition. Wick’s has the most expensive pizzas, ranging from a ten-inch pizza costing $10.49

to an 18-inch pizza costing $19.50. The NABC’s closest competitor Boombozz has priced

themselves just above The New Albanian but still $2 to $3 below Wick’s prices.

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To better assess how the NABC’s pizza prices compare to the competition, two price

comparisons were generated. The table on the right shows the price from each pizzeria for an 18-

inch pepperoni pizza. The adjacent table shows a price for a selected signature pizza each

pizzeria offers.

The first table shows the NABC offers the lowest priced pepperoni pizza followed by

Boombozz, Bearno’s and Wick’s. The second table shows the NABC and Boombozz specialty

pizza prices are almost the same. Charging nearly $40 for the Mighty Meats special, Wick’s has

by far the most expensive pizza. Wick’s may have the highest prices, but quality, taste, and style

play a role here. Wick’s is known for having thick pizzas loaded with toppings and being very

cheesy. While the NABC is known for offering a good quality pizza to compliment one of the

craft beers the company offers.

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Channel Strategy/Location

The New Albanian Brewing Company Pizzeria and Public House resides just off Grant

Line Rd in New Albany. The geographic area surrounding the NABC includes a small shopping

center and several neighborhoods located directly behind the establishment. Located a couple

miles from Indiana University Southeast and minutes from the Louisville metro area, the NABC

serves as commonplace for students, families, and craft beer consumers to enjoy.

The establishment is divided into two separate sections that offer a comfortable and casual

atmosphere: the pizzeria and the public house. Walking into the pizzeria, one can observe many

casual elements of the dining area. For instance, the “Please Seat Yourself” sign allows

customers to sit where they desire upon arrival. After seating, the customers are greeted typically

within the first few minutes by a friendly server dressed casually in a New Albanian t-shirt and

jeans. The waiting staff is well-rounded in their knowledge of craft and domestic beer, which

enhances the comfort level and adds to the servicescape. The dim lighting against the wooden

tables and chairs throughout the dining room instills this comfort. Lavish posters designed for

each craft beer line the walls along with two mid-sized televisions that display a sports channel

and a news broadcast.

The pizzeria’s primary attribute favored by customers is the ability to see the microbrewery

behind a large glass window from the dining area. During certain hours, customers are privileged

to observe as the brew master carefully engineers their beloved craft beer. This attribute is a huge

contributor to the authenticity and identity to the craft beer.

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To accommodate groups and casual consumers, the public house contains additional seating

and a small three-seat bar. Additionally, couches surround the bar area, and music is kept to a

medium-to-low volume. The atmosphere is more casual with posters and décor lining the walls

with messages that reiterate the “these machines kill fascists” theme and fulfilling the “public

house” title.

IV. Recommendations

Target Market Selection Although the New Albanian Brewing Company’s current strategy effectively targets and

captures an appropriate market, many factors present the business with opportunities for

advancement in capturing an additional market; the initial factor being the establishment’s

location. Located just miles from two college campuses, the NABC has an opportunity to expand

into an additional market. The establishment is located less than five minutes from the Indiana

University Southeast campus and 20 minutes from the University of Louisville campus. As

previously discussed, the universities’ estimated 28,000 students provide the NABC, as well as

surrounding businesses, with a profitable and plausible market to target.

Furthermore, characteristics of the college student market (and the college-age consumer

market) align with the characteristics of the NABC as a pizzeria and a brewery, independently

and jointly. For instance, college students’ consumption preferences correspond with the

NABC’s products. As previously stated, the average pizza consumers are aged 18 to 44 and

account for 77% of pizzerias’ customers. This statistic suggests that the college-age consumers,

typically aged 18 to 25, fulfill roughly 30% of pizzerias’ customers. Additionally, an average

four out of five college students admittedly consume alcohol. While it may seem unethical to

promote alcohol consumption to a younger, yet legal crowd, this can be accomplished in a proper

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and law-abiding manner. The statistics are self-evident; many college students enjoy eating

pizza, many enjoy drinking beer, and many enjoy eating pizza and drinking beer together.

In addition to their consumption habits, college student’s lifestyle habits are significantly

compatible with the products and services the NABC offers. Limited discretionary income, busy

schedules, and a likelihood to often be in a group setting are distinct factors that can be

considered when targeting a college student market. High tuition rates, room and board, and

other expenses leave many college students with limited discretionary income, so it is not

uncommon for them to be economical with spending. These expenses also cause many full-time

students to maintain at least part-time employment resulting in more time on-the-go and less time

to prepare and cook meals at home.

After selecting a target market, a decision must be made to choose how the company will

be positioned amongst the competitors. If the New Albanian Brewing Company decided to

capture this additional college market, they would have to make big decisions to reposition the

company or establish gradual tactics that lead towards a repositioning. Possible repositioning

strategies will further be discussed.

Positioning With the New Albanian Brewing Company being a micro-brewery and a pizzeria, they

have positioned themselves far above the competition in the market for craft beer offerings.

While they may have a strong position here, they have a low position regarding food quality

when compared to the competition. The NABC needs to improve its position here as they are

vulnerable in the pizza market offering low-quality pizza. They need to take steps to improve the

quality of the food they offer to equate the quality that can be found in the craft beer the NABC

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brews. Essentially, the high quality of craft beer should be complimented with a high quality

pizza.

When aiming to improve food quality, the NABC should observe the competition’s

strategy. The company should regard the factors that cause the competition’s menu items to be so

desirable. This will take time and commitment from the NABC, but by improving the quality in

the food, the NABC will have the ability to offer a superior product to both the pizza and beer

market.

Marketing Mix

Product

In support of the positioning strategy, improvements in the New Albanian Brewing

Company’s product are recommended. The opportunity seems to exist in an improvement in the

quality and variety of the food, the craft beer choices, and the presentation of the menu.

Compared against its competitors’, the NABC’s quality and a variety of food is inferior.

In addition to the four different styles and three signature pizzas, the menu is comprised of eight

appetizers, two salads, five pastas, and nine sandwiches. To appeal to college student’s taste

preferences, the appetizers and salads should be expanded. Many of the existing appetizers have

a long wait time and tend to be delivered well after the customers’ meal order is placed. Instant

gratification is often associated with college students; they do not like to wait too long for

satisfaction, so an improvement in appetizers should be considered. Chicken wings, nachos, and

chips and salsa are appealing appetizers that could quickly be delivered to a table while the

customer continued to look over the rest of the menu. Not only would the introduction of a new

menu item draw attention, but the quick delivery could influence the customer to purchase an

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appetizer in addition to their meal, therefore increasing their bill and gradually increasing

revenue in the long run. Additionally, with the increased awareness and concern for a healthy

lifestyle, the NABC should consider offering a larger variety of salad options. Opposed to having

only two options, premium salads could be added to appeal to more health-conscious customers.

A higher quality pizza could also contribute to capturing this market. Acquiring the

higher quality ingredients will be a high initial cost, but this addition will emphasize the

authenticity and uniqueness already established by the craft beer. A larger focus on the higher

quality pizza can also potentially influence the brand identity of the NABC. Instead of being

known for the craft beer first and the pizza second, they can complement one another and jointly

capture the college student market. This can potentially transform the NABC from their original

image of primarily being a microbrewery into a microbrewery with an excellent menu.

The capability of brewing on-site is a significant competitive advantage the NABC can

leverage to reposition the company. This provides the company with the resources to respond to

consumer demand in a quick and more authentic manner than the competitors. If enough

consumers demand a specific taste, the brew master can engineer the desired craft beer to satisfy

their needs. This can establish a relationship between the consumer and the brewery and a brand

loyalty can be developed.

Lastly, the presentation of a three-fold, black and white menu is not aesthetically

pleasing, especially for the typical college student. The central theme should be carried

throughout the menu in both design and layout to a degree that is consistent with the NABC’s

culture and brand identity. The addition of color, fonts, and photographs of the item to the menu

can subconsciously influence a customer to order more than they may have originally

considered. This can also appeal to college student’s preference for individuality and uniqueness.

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Promotion Compared to the competition, the NABC lacks in the promotional appeal that caters to a

diverse customer demographic. Currently the only specials the NABC offers are on beer. This

only caters to one portion of the market. With the NABC surrounding area being comprised of

families, college students, and small businesses, running specials to attract each one of these

groups would increase the markets share for the NABC.

During the week, the NABC can offer distinct deals to attract a specific customer base.

For example, a specific day of the week can be designated to allow children to eat free. This will

promote a family atmosphere and draw interest to the NABC from the 8,400 families in the New

Albany area.

With the ever-growing popularity of social media and the internet, the New Albanian

Brewing Company has an opportunity to increase awareness of their brand and establish an

online presence. Nearly 73% of Americans say they have some form of social media. This makes

using social media a very cost effective way to reach a large consumer base as many social

media accounts are free to use.

Although they do post on their Facebook page occasionally, the company should take

advantage of the no-cost aspect of advertising online. The NABC can set up a referral program

using the company Facebook page. The NABC could request Facebook followers to share the

NABC page in order to apply for a discount during their next visit

The company can also improve on their usage of Twitter. Even though the NABC does

have a Twitter page, the page is rarely used for promotional purposes. To better utilize its

Twitter, the company can make posts that encourage followers to take part in. For example, if

they tweet a question about one of the company’s craft beers, they can offer a discount or reward

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to the the first follower who correctly answers the question. The NABC can also tweet the details

of a beer or food special and offer a discount to the first few people who retweet the tweet.

Additionally, The NABC can set up a loyalty program to help attract and retain

customers. A feature of this program could include offering a loyalty card to consumers or

offering longtime customers the opportunity to sample a new beer the NABC brews. The loyalty

card could offer customers the chance to earn a free beer or pizza after purchasing a set amount

of pizza and beer. Another feature that can be included on this card is a rewards program. This

rewards program could track and accumulate the amount spent during each visit and offer

discounts after meeting a specified criteria.

Furthermore, promotion geared towards college students could be financially rewarding for

the NABC. Offering students discounts or loyalty programs could keep college students coming

back to the location and establish brand loyalty among the college student market. Utilizing both

Facebook and Twitter feeds, the NABC can directly target the college student market. This

would be a beneficial strategy as 96% of all college students say they use Facebook and 14%

using Twitter.

PriceIn order for the NABC’s menu prices to be easily read by diners, a psychological pricing

strategy should be implied. Under this method menu prices on entrées will end in 98 or 99 cents.

This makes reading prices on a menu easy, as the patron's eyes are just focusing on the first value

in the price.

With the potential for the NABC to offer a greater

menu selection, meals in the same category on the menu

should only be priced a few dollars apart from each other.

For example when looking at Boombozz menu, (see

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picture to the left) the lowest priced and highest priced sandwiches are just a few dollars apart.

The NABC should follow similar pricing scheme.

Channel Strategy/LocationTo reestablish and maintain a position amongst the college student market, the NABC

should consider the location, atmosphere, and exterior qualities when making improvements.

Collectively, improvements in these areas can potentially reintroduce the New Albanian Brewing

Company as not just a brewery and a pizzeria, but rather a new and improved casual dining area

and microbrewery. Although the recommendations may be an expensive initial investment, it

will improve the business in the long run, both financially and by improving the brand image.

Location is typically a key element in a business’ success, especially a pizzeria.

Although, a microbrewery, a specialized business, can get by with

being a destination business, a pizzeria most

often times cannot. It is essential that the

location of a pizzeria is known and evident to

combat the existing competition and

availability of substitutes. With the

establishment being located on Plaza Drive just off Grant Line Road,

The New Albanian Brewing Company Pizzeria and Public House encounters an issue. The

establishment is not visible from the highway, and there is no sign indicating the location. To

capture the attention of college students commuting to and from school (and also any passing

drivers), a sign should be placed at the corner of Plaza Drive and Grant Line Road, the road

leading to the NABC. This would inform the passing drivers there is a pizzeria and brewery just

around the corner; which is something a passerby may not have realized had the sign not been in

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place. Additionally, the sign in front of the building is rather small and unnoticeable. A simple

spotlight against the sign can enhance its effectiveness.

To maintain a casual and comfortable atmosphere while also capturing the college student

market, the company must consider investing in remodeling the establishment. The outdated

vinyl walls and aged furniture do not satisfy a college student’s desire for a casual setting. A

more modern innovation with new furniture, attractive color schemes, and visually pleasing

attributes can attract and acquire those college students and ultimately capture a considerable

amount of the market. This transformation can also attract more customers outside the desired

target market.

Lastly, the exterior qualities should be reevaluated and improved. When visiting a business,

the initial impression is established when a customer arrives and sees the building and area.

Many consumers tend to judge a book by its cover; if an establishment looks run down or

abandoned from the outside, it is not likely they will have a positive image of the business. This

is where the NABC can greatly improve not only in support of repositioning, but also to maintain

their current target market. To capture the college student market, the NABC should focus on

making the consumer feel welcome and comfortable. The addition of foliage and a repaved

parking lot can introduce this new level of comfort and set a casual mood.

Conclusion In essence, the New Albanian Brewing Company has a strong brand image in the craft beer

market. Though they are vulnerable in the pizza aspect of the business, this can be improved. By

following the recommendations and continuously building upon current strengths and

overcoming weaknesses, the NABC can grow as a business and be recognized as a brand not just

in the craft beer market but also in the pizza market.

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V. References

"About Us : Overview." History of River City Distributing, Inc. River City Distributing, n.d. Web. 28

Nov. 2015. <http://www.rivercitydistributing.com/>.

"Bearno's Pizza - Menu." Bearno's Pizza. Design by Vivid Computer Solutions, n.d. Web. Nov. 2015.

<https://bearnos.com/legacysite/index.php>.

"Community Facts." American FactFinder. United States Census Burea, 1 Jan. 2014. Web. Nov. 2015.

<http://factfinder.census.gov/faces/nav/jsf/pages/index.xhtml>.

Fisher, George. "About Us." Cavalier Distributing. Avalier Distributing Company, 1 Dec. 2015. Web.

Nov. 2015. <http://cavbeer.com/>.

"How It All Started & Menu." Wick's Pizza. OOHology LLC, n.d. Web. Nov. 2015.

<http://www.wickspizza.com/>.

Lewison, Jeff. "New Albanian Brewing Company." History New Albanian Brewing Company. New

Albanian Brewing Company, Nov. 2015. Web. 28 Nov. 2015. <http://newalbanian.com/>.

"The Pie Is Mighty!" BoomBozz Craft Pizza & Taphouse. TBB America, n.d. Web. Nov. 2015.

<http://www.boombozz.com/>.

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VI. AppendixNew Albanian BoombozzWick's Bearno's

Pizza size 6 inch $4.24 $6.99 n/a $9.99

10/11 inch $6.36 $10.99 $10.49 $12.9914/15 inch $11.66 $12.90 $14.75 $15.9917/18 inch $14.31 $14.99 $19.50 $17.99

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