Vans Compaign

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BA 432 Promotion Policy

Professor Joan McBee

19 March 2017

Promotion Policy Final Project:

Pear Cider to Increase Pear Demand and Consumption

I. Campaign Name and Type:

● Pear Cider Promotion

● Business to consumer

II. Planned Launch Date: May 01, 2017

III. Situation Analysis

Internal

The Rogue Valley produces the finest pears and truly believe in the quality of their

product. They care about the valley and have learned the balance needed to not only create the

world’s finest pear, but also to respect the land and the community that they grow on. Their main

objective as a company is to increase demand for pear consumption. They value what they do

and the product they create and want the community to fully experience the value of the Rogue

Valley Pear. A main way that they could increase pear consumption is to produce a pear cider.

This will allow them to compete more effectively with the wine industry and show the true

diversity of the pear.

External

The main competitors for the pear industry are actually other industries who are

competing for the same land and resources to produce their product. For example, the wine and

marijuana industry are probably the biggest competitors for the Fruit Growers League. In 2014

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the wine industry alone consumed 1,035 acres of land in the United States, which is a 6%

increase since 2011 (Wine Institute, 2014). Marijuana is not legal across the United States,

therefore it is challenging to compare the acreage of this industry with the wine and pear.

However, it is important to know that, “legal marijuana is the fastest-growing industry in the

United States” (Ferner, 2015).

As these different industries grow and compete for the same resources, this has a huge

toll on the environment. The marijuana industry, for example, consumes a tremendous amount of

water, and this can cause habitats to be destroyed and a lack of water for other industries.

Climate in general is an extremely important factor for pear growers, and the climate is changing

so this is a very important factor for the Fruit Growers League.

In order to compete with the wine and marijuana industry, creating a pear cider could be

very beneficial for Rogue Valley pear producers. The global sales of pear cider in the 2013 was

$595 million and was projected to grow to $769 million in 2016 (Statista).

Social Trends: Cider drinkers have indicated that when choosing an alcoholic beverage,

they would select a craft beer: “They have the expectation of the craft beer market has already

given them. They want to know where ingredients come from, they read labels, and they’re

interested in the company’s story. This is what the craft beer market has already built into the

marketing of their industry, and consumers are carrying that over to hard cider” (Colby, 2016).

The craft beer market also cares about digitally connecting with friends and companies. They are

more concerned about value than cost. They are adventurous and care more about the experience

than the actual product. Lastly, living a healthy lifestyle is important to such individuals (BA

Insider, 2015).

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Legal Issues: A threat for the pear cider industry is that the production and distribution of

pear cider is monitored by the wine industry as opposed to the beer industry. This causes issues

because, “cider cannot be sold in the Beer Store or a craft show. Rather, cider can only be sold at

the LCBO stores, licensees or winery (if they have 5 acres of apple orchards). So, cider

producers cannot get the tax benefits that apply to craft beer producers nor can they get the

benefits that apply to VQA producers” (p 24). Ultimately, this puts small pear cider companies at

a disadvantage when competing with larger more reputable cider industries and with the wine

industry.

Economy: The state of the economy has a huge impact on alcohol sales. If the economy

is doing poorly, customers are likely to switch to cheaper brands. Pear cider would be considered

a more expensive craft beverage, therefore, the economy could have a great impact on pear cider

sales (Radcliffe).

Technology: Technology plays a vital role in the production of pear cider. For one thing,

farmers have benefited from the use of technology in order to increase performance, and this is

merely the first step of the process. Technology is also used in the grinding, pressing, cooling,

filling, and fermentation processes that occur after the harvesting of the pears. The constant

improvement and development of new technology has a huge impact on increasing productivity.

IV. SWOT

Strengths: The biggest strength the Rogue Valley pear cider industry can depend on is

quality of product. Other ciders may have to transport or import their resources to their

production facility, but the pear cider industry in the Rogue Valley has an abundance of high

quality resources right in their backyard.

Weaknesses: The major weaknesses of the pear cider industry are an unpredictable

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supply-chain and an indistinguishable product. If pear cider producers are not self-sufficient in

terms of supply chain (pears and/or pear juice) then they depend on the availability of those

supplies from pear farmers. If pear cider producers aren’t forward contracting and instead buying

on the spot, then they run the risk of not being able to attain pears if there is a shortage of

supplies. Suppliers with forward contracts run less of a risk because even if there is a shortage

they are going to receive supply first. The second weaknesses is many pear ciders are

indistinguishable from other ciders such as apple cider. More specifically Rogue Valley pear

cider is indistinguishable from other ciders, even at local grocers. This weakness should be seen

as the most crucial because it limits or possibly even halts growth potential (BA Brewers

Association, 2015).

Opportunities: The largest opportunity for pear cider is product demand and the

potential for growth in the future. Hard cider is the fastest growing alcoholic beverage in the U.S.

The U.S. hard cider industry is expected to grow 12 percent by 2020 (Colby, 2016). The increase

in food tourism is another huge opportunity for Rogue Valley pear cider. According to the

American Culinary Traveler, "The percentage of US leisure travelers who travel to learn about

unique dining experiences grew from 40% to 51% between 2006 and 2013,” (Parmar, 2016).

Alongside the interest in food tourism, is the interest and awareness around local food. Rogue

Valley pear cider strongly aligns with the interest in food tourism and the awareness to support

local foods.

Threats: Competition from non-craft cider producers, such as large domestic producers

like Anheuser-Busch, because they can compete with greater volume and lower prices. Other

beverages using the same resources (pears), such as flavored beer and wine, are also a threat to

the Rogue Valley pear cider business. The largest threat to pear cider marketing is how hard

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cider is regulated. Federally hard cider is defined and regulated as still wine, because like wine

hard cider is derived from fruit (Mather, 2014). The legal regulation and definition of hard cider

is a threat to the Rogue Valley pear cider industry because it cannot be sold at beer only stores or

at craft beer events (BA Brewers Association, 2015). Since the majority of the hard cider

industry market growth is being pulled from craft beer’s market this is not ideal for the Rogue

Valley. On the other hand it also presents an interesting opportunity where hard cider can be sold

at wineries and other wine events.

V. Primary Purpose or Marketing Objective:

Our primary purpose for this project is to increase demand for pear consumption, and we

want to do this by promoting a pear cider. The wine industry is continually growing and the pear

industry is competing for the same land and resources. Producing a pear cider will allow the

Fruit Growers League to compete with the wine industry and bring interest back into the pear.

This campaign will entice new consumers, eliminate the struggle of choosing a ripe pear, and

ultimately reveal the multifaceted value of the pear.

VI. Who is the target market you intend to reach? Complete the Target Market Persona

below (See Persona handout from class):

WHO – Name: Liam Weldon

Background ● Single

● No kids

● Works at an entry-level position

Demographics ● Male

● Age: 21-35

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● Income: $45,000

● Education: Some college – bachelor’s degree

● Urban Location

Identifiers (Preferences) ● Enjoys specialty products

● Prefers transparent production practices of food

and beverages

● Appreciates aesthetics

● Doesn’t like to receive direct mail and other

traditional marketing messages

● Researches online, talks with peers about/before

consumption

● Receives news through websites and blogs

● Attends Facebook and Instagram daily

WHAT

Real Quotes: Challenges/Goals “I love being able to grab a drink with friends and know

we are supporting local businesses and farmers.”

“Sometimes it’s hard to know how my beer or cider is

produced, and what quality of ingredients are used.”

“If the flavor and taste is excellent, the brand doesn’t

matter as much to me.”

Common Objections ● I’m worried ciders don’t meet the same quality

caliber as my favorite craft beers.

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● Sometimes I worry that shopping organically and

locally is not worth the few dollars extra.

WHY

Marketing Messages: How should

you describe your offering to your

persona?

“They have the expectation of the craft beer market has

already given them. They want to know where

ingredients come from, they read labels, and they’re

interested in the company’s story. This is what the craft

beer market has already built into the marketing of their

industry, and consumers are carrying that over to hard

cider.” (Colby, 2016)

Elevator Pitch: Sell your solution Drinking pear cider is an exciting and refreshing option

to add to your alcoholic choices. Enjoy the same quality

of ingredients in your specialty beverage, but a wider

variety of flavors that can be produced holistically year-

round. Drinking pear cider you are not only supporting

local businesses, but local farmers who work hard to

bring you quality ingredients.

VII. The marketing tactics that will be used for promoting the pear cider industry will be

directly connected to our target market, which is the Millennial generation, who are

environmentally conscious and care about specialty/local products. Our primary focus will be on

the male demographic. In order to cater to this target market, we plan on marketing primarily

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through social media, including Facebook, Instagram, Twitter, etc. For social media, we will

make a digital advertisement that will be used to promote pear cider. The goal of this

advertisement will be to build brand awareness.

Cider drinkers have a strong connection to craft beer drinkers, therefore, another

important advertisement will be a print ad for a craft beer magazine. Once again, the goal of this

advertisement will be to bring awareness to pear cider, and increase the amount of pear cider

drinkers.

The last marketing tactic will be to host an event at a local brewery. For this event, we

will promote pear cider as a new drink for the customers to try. At this event, we will also give

out free koozies for the customers who try the new product. Providing koozies as a premium will

help to stimulate positive affiliations for pear cider and will also help to build brand awareness.

VIII.

Materials Estimated Cost

Magazine Placement $1,500

Premiums - Koozies $600

Internet Ad Space $1,000

Facebook Ad Space $500

Event Materials (table, samples, etc.) $1,500

Brewery space for event $700

TOTAL $5,800

IX. The primary tactic that will be used to deliver the message theme will be through a

cognitive message strategy, which is one that, “presents rational arguments or presents pieces of

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information to consumers” (Clow and Baack, 2016, p. 155). More specifically, a preemptive

message will be the most fitting because the main message being conveyed in the campaign, is

that pear cider is a unique product and consuming this drink is a testament to the consumers

individualism. Through this strategy, pear cider will be promoted as a claim of superiority based

on the product’s uniqueness.

Another way that the key message will be communicated is through an emotional appeal.

Similar to the craft beer industry, peer cider consumers, “identify with brands that are

independent and local” (Herz, 2016). To such consumers, independent brands represent

individuality and authenticity. In order to appeal to this desire to stand out, the advertising

campaigns will attempt to capture this emotional response, showing that drinking pear cider is an

expression of individuality.

VIII. Rogue Valley’s pear cider producers marketing objective is to revitalize the image

of pears and enter into a new and growing market: cider. The desired buyer response is for the

consumer to think pears are “hip” and pear cider is a specialty beverage. Craft beer is currently

seen as the up-and-coming, trendy and specialty alcoholic beverage, but the objective is for pear

cider to steal those titles. The ultimate marketing objective is to increase pear demand overall.

IX. Our advertising campaign is designed to promote the uniqueness of pear cider. The

cider industry in general is a growing market, and their are very limited options for pear cider.

After seeing the pear cider campaign, the ultimate goal is to entice customers to go out and try

pear cider. The pear cider campaign is designed to provoke an immediate response based on the

distinctive nature of the product.

X. To follow up with customers who bought pear cider the consistency of advertisements

and promotion is going to matter. These consumers were swayed to purchase the product after

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seeing a pear cider advertisement, and the pear industry will want to continue with the same

promotions to keep up industry recognition. Our goal is not for these promotions to convince

consumers to buy pear cider only one time, but to purchase pear cider more after the first time

and replace their craft beer with a refreshing pear cider. In order to keep brand recognition heavy

promotion of pear cider will need to continue.

XI. In order to follow up on prospects who do not respond to the campaign, it is

important to figure out why these customers are not reacting to the marketing tactics. If research

indicates that these prospects do not fall under the same target market, than more advertising

might be wasteful rather than effective. However, if there are other reasons, including those that

the pear cider industry has more control over, than, introducing new marketing tactics/platforms

could be beneficial in attracting these new customers.

XII.

Task Due Date

Magazine DRAFT Print Ad June 01, 2017

Premiums - Koozies July 01, 2017

Internet Advertisement May 01, 2017

XIII. The materials cost, which is shown above includes magazine placement, koozies,

internet ad space, and Facebook ad space. The total materials costs is calculated below. The labor

cost includes the people needed to run the brewery event, which will only be two individuals. If

they are paid ten dollars an hour for an eight hour shift, than the total cost for that event will be

$160. Another labor cost will be for the advertisement design, which will cost $1,200. Lastly, an

individual will be hired to develop the social media for $20,000. This brings the total budget cost

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to $26,460.

Tactic Cost

Materials Cost $5,800

Labor Cost $21,360

Total $27,160

XV. The print advertisement designed to be placed in a craft beer magazine:

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The design to be placed on the cider bottle koozie’s and will be handed out at the event:

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The two designs created as internet/social media advertisements:

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References

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BA Brewers Association. (2015). 6 characteristics of millennial beer drinkers you need to know.

Retrieved from https://www.brewersassociation.org/communicating-craft/6-

characteristics-of-millennial-beer-drinkers-you-need-to-know/

Colby, Sally. (2016). Consumer trends in hard cider. Retrieved from

http://wineandcraftbeveragenews.com/consumer-trends-in-hard-cider/

Crecca, Donna Hood. (2012). Cider is trending up. Retrieved February 19, 2017, from

https://blogs.technomic.com/cider-is-trending-up/

Ferner, M. (2015). Legal marijuana is the fastest-growing industry in the U.S.: Report.

Huffington Post. Retrieved from http://www.huffingtonpost.com/2015/01/26/marijuana-

industry-fastest-growing_n_6540166.html

Herz, J. (2016). Today’s craft beer lovers: Millennials, women, and Hispanics. Brewers

Association. Retrieved from https://www.brewersassociation.org/communicating-

craft/understanding-todays-craft-beer-lovers-millennials-women-hispanics/

Industry perspective pears. (2017). Northwest Farm Credit Services.

Grier, K., Sweetland, J., and Rajcan, I. (2013). Economic impact study for the Ontario hard cider

industry. Guelph, Ontario: Research Centre.

Mather, Alva C. (2014). Is hard cider defined as beer or wine and does it matter. Retrieved from

http://www.pepperlaw.com/publications/is-hard-cider-defined-as-beer-or-wine-and-does-

it-matter-2014-04-29/

Pappas, S. (2012). Sexy advertising on the rise. Live Science. Retrieved from

http://www.livescience.com/20773-sexy-advertising-increasing.html

Parmar, Parmjit. (2015). How culinary tourism is becoming a growing trend in travel. Retrieved

From http://www.huffingtonpost.ca/parmjit-parmar/the-rise-of-culinary-

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tourism_b_7596704.html

Radcliffe, Brent. (n.d). Beeronomics: Factors affecting your pint. Retrieved from

http://www.investopedia.com/articles/economics/09/beeronomics.asp

Statista. (n.d.). Statistics and facts on the cider industry in the U.S. Retrieved from

https://www.statista.com/topics/1985/cider-industry/

The wine institute. (2014). World Statistics. Retrieved from

http://www.wineinstitute.org/resources/statistics

Tuttle, Brad. (2014). Fastest-growing alcoholic beverage category? It’s not craft beer. Retrieved

from http://time.com/82620/fastest-growing-alcoholic-beverage-category-its-not-craft-

beer/