for
Raina9312
Metonomy-ArlingtonBrewery-PresentationExample.pdf
Algonquian for “place of the swift running water”
Our Team 715 CONSULTING INC.
2. MARKETING STRATEGY
3. INNOVATION STRATEGY
4. OPERATIONS STRATEGY
YU YEI
Kim Hall
ANNE MARIE Johnson
A G E N D A
5. FINANCIAL STRATEGY YAN ”IRIS” LIANG & MENGQI ”Bonnie” LIU
6. HUMAN RESOURCES STRATEGY JINGYI “Alicia” LEUNG
MET AD 715 – ASSIGNMENT #3 PRESENTATION TEAM #2
7. RECOMMEDATIONS ANNE MARIE Jonhson
1. INTRODUCTION Jim Hsu
8. CONCLUSION / Q&A ANNE MARIE Johnson & TEAM
• MARKET REVIEW • SWOT ANALYSIS
• TARGET MARKET • 4 P’s MARKETING MIX
• PESTLE ANALYSIS • BRANDING
MARKETING
MARKETING STRATEGY
5
• MARKET REVIEW
‣ The craft beer industry is a rising industry in US
‣ Facing some strong local competition
• TARGET MARKET
‣ Geographic
‣ Demographic
‣ Behavioral segmentation
01. MARKETING STRATEGY
MARKETING STRATEGY
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STRENGTH 1. Good quality
2. Unique product offering
3. Large price range
4. Lower average price
WEAKNESS 1. No reputation
2. Limited supply
3. Limited budget
OPPORTUNIES 1. Rising craft beer industry
2. Sufficient population
THREATS 1. Strong competition
(direct & indirect)
2. Low barrier = increase in
local competition
3. Saturated Distribution /
Retailer channels.
• PESTEL ANALYSIS
‣ Political ‣ Technology ‣ Environment ‣ Economic ‣ Social ‣ Legal
• SWOT ANALYSIS
01. MARKETING STRATEGY
4 P’s MARKETING MIX
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01. MARKETING STRATEGY
PRODUCT
PLACE
4 P’s
MARKETING
MIX
PROMOTION
• Quality Product Offering: Spruce Beer (special
brew), Oatmeal Stout, Pale Ale, Molasses Stout,
Imperial Stout, Earl Grey Porter
PRODUCT
• Target customers: In-house customers & locals
• Service Type: Customers on-site only at the brewpub with
option to purchase growlers for off-site + local distribution
PLACE
• Traditional Advertising:
Billboards
• Digital Advertising:
Facebook, Twitter, Instagram,
PROMOTION • Price range: $ 6.25 - $ 8.25
• High price: Imperial Stout $8.25 per pint
• Lowest price: Pale Ale $ 6.25
.
PRICE
PRICE
BRANDING BEER STYLES:
8
01. MARKETING STRATEGY
- RETAIL: *
- WHOLESALE: **
*
**
*
* **
** *
• 4-19 SPRUCE BEER
• BU MET PARTNERSHIP
• HOPESTILL FARMS PARTNERSHIP
• ADDITIONAL SUSTAINABILITY PLANS
INNOVATION
10
02. INNOVATION STRATEGY
4/19 SPRUCE BEER PRODUCT INNOVATION
• Why is this an innovation?
• How will we sell it?
• Is it sustainable?
11
02. INNOVATION STRATEGY
CRAFT BREW CERTIFICATE PROGRAM PARTERNSHIP WITH BU MET COLLEGE
• Stronger Network
• Learning Environment
• Growth Opportunity
APPRENTICESHIP MENOTOMY BREWPUB
BU MET
COLLEGE
• Brand Awareness
• Engages Employees
• Reduces Overhead
• Engage CB Industry
• Expand Ed. Opportunities
• Increased Partnership
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02. INNOVATION STRATEGY
SUSTAINABILITY FOCUS PARTERNSHIP WITH HOPESTILL FARMS
BENEFITS:
• • Free spent grain removal
• • Discount on spruce supply
• Further sourcing potential
LOOKING AHEAD:
• • Water Partnerships
• • Solar Energy
• • Heat/Steam System “AN INVESTMENT IN EDUCATION ALWAYS PAYS THE HIGHEST RETURNS”
- BEN FRANKLIN
• DEMAND PROJECTIONS
• PRODUCTION NEEDS
• BREAK EVEN POINT
OPERATIONS
14
03. OPERATIONS STRATEGY
DEMAND PROJECTIONS
*assumes a 5% year to year growth in demand
MENOTOMY
BREWPUB 205,425
PINTS
YEAR 1
215,697 PINTS
226,481 PINTS
YEAR 2 YEAR 3
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03. OPERATIONS STRATEGY
CAPACITY
• 40 Barrel Brew Pub system
• 8 Tanks – 59,520 pints/tank
• Total Capacity = 238,080 Pints
• Enough for initial projects
+ room for growth
CUT-OFF Amount per tank to produce in order to
meet demand without excess capacity
PRODUCTION NEEDS
PRODUCT TYPE CUT-OFF
Oatmeal Stout Retail .9
Pale Ale Retail .8
Spruce Beer Retail .7
Molasses Stout Retail .7
Imperial Stout Retail .8
Earl Grey Porter Retail .8
Oatmeal Stout Wholesale .5
Pale Ale Wholesale .6
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•BEP = Point at which costs = revenues
PROPOSED BEP FOR MENOTOMY GRILL
BEP = 1.74 months
Costs = $168,829
03. OPERATIONS STRATEGY
BREAK EVEN POINT
• FINANCIAL PERFORMANCE
• SENSITIVITY ANALYSIS
• RISK ANALYSIS (MONTE CARLO)
• RISK ANALYSIS continued…
FINANCIAL
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04. FINANCIAL STRATEGY
FINANCIAL PERFORMANCE KEY DATA FROM THE SIMULATION
Revenue Breakeven point
Profit
margin
Growth
rate
FY1:$1,164,225
FY2:$1,285,127
FY3:$1,408,179
0.65
REVENUE INCREASE
FY1/FY2: 8.9%
FY2/FY3: 9.3%
2 MONTHS
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Relationship between one retail price and profit
optimal solution ($4.72,$576,962)
ONE INPUT, ONE OUTPUT VARIOUS INPUT, ONE OUTPUT
SENSITIVITY ANALYSIS BEST PRICE PER PRODUCT & HOW PRICE COULD INFLUENT PROFIT
04. FINANCIAL STRATEGY
20
RISK ANALYSIS MONTE CARLO
04. FINANCIAL STRATEGY
FY-1
profit after tax
(in thousands)
FY-2
profit after tax
(in thousands)
FY-3
profit after tax
(in thousands)
36-months
profit after tax
(in thousands)
21
04. FINANCIAL STRATEGY
Profit after Tax (in thousands)
Number of Possibi lity (Out of 100)
Percent of Total (Rounded)
<-214 1 1%
(214)-(192) 1 2%
(192)-(171) 2 4%
(171)-(149) 1 5%
(149)-(127) 5 10%
(127)-(106) 8 18%
(106)-(84) 11 29%
(84)-(62) 18 47%
(62)-(41) 11 58%
(41)-(19) 5 63%
(19)-3 11 74%
3-24 10 84%
24-46 8 92%
46-68 4 96%
68-89 2 98%
89-111 2 100%
Result Around 28% possibility to make a profit
Possible reason Conservative inputs
Possible solution Qualitative makeup
RISK ANALYSIS
• THE BREWING TEAM
• HR SWOT ANALYSIS
• DECISION TREE
HUMAN
RESOURCES
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05. HUMAN RESOURCES STRATEGY
HUMAN RESOURCES MANAGEMENT
• Come up with new type of beer.
• Keep the beer quality .
• $48,000 in the first year.
Brewmaster
• Helping with the brewing process.
• Done the paper work.
• $30,000 in the first year.
• Found from the program with BU MET.
Brewing assistant
THE TEAM
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HR SWOT ANALYSIS
Competitive starting salaries
High growth rate of wage
Experienced brewmaster
Partnerships S W
O T
To keep quality beer
May cut down officers’ salary
Rich in human talent
A creative brewmaster
The brewmaster may leave
05. HUMAN RESOURCES STRATEGY
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DECISION TREE HOW TO FIND A BREWMASTER?
05. HUMAN RESOURCES STRATEGY
• Conduct labor market study or not?
• Use a job board or a recruiter?
• RECOMMENDATION
• PROPOSED IMPLEMENTATION PLAN
• QUESTIONS & ANSWERS
RECOMMENDATION
/CONCLUSION
Invest in building an on-site brew pub at
Menotomy Grill & Tavern
RECOMMENDATION
NPV: $1.3M in 3 years
ROI= 11%
YTY Growth = 10%
FINANCIAL SENSE
Product Innovation – Spruce Beer
Partnership Innovation – Internship with Boston University
Sustainability – Hopestill Farms – spent grain
COMPETITIVE DIFFERENTIATION
Ability to get new brewpub up and running in 7-9 months
Break Even Point = 2 months!
RAPID TIME TO MARKET
$
PROPOSED IMPLEMENTATION PLAN
28
40%
60%
50%
START DATE: December 19, 2016 | TARGET COMPLETION DATE: July 7, 2017
QUESTIONS
& ANSWERS
THANK YOU FOR LISTENING
CHEERS!
Anne Marie is
taking the picture!
