Question
What distribution strategy do you recommend for a new microbrewery unit? In this era of advancements, the basic elements such as quality and advancements of
What distribution strategy do you recommend for a new microbrewery unit?
In this era of advancements, the basic elements such as quality and advancements of product have always played a vital role, whereas now the technique to market the product and make sure how the brand name is established helps to exponentially sell the product and create lasting effects. When we intend to form a distribution channel for a microbrewery we need to analyze the distribution channels associated with it to make sure our operations can result successfully. We live in a very competitive world and only focusing on making great beer would not have significant affects, true success has many facets to it.
Distribution strategy helps to increase our sales efforts, as only creating a good mousetrap will never mean that the customers will beat a path to your door. Assuming we are helping to create good and consistent beer and have good branding we still need to consider how we intend to distribute it.
Beer Distribution Channels
The questions such as where we will be selling the beer come to rise, for this we might initially start off with a customer analysis and understand where most of such products are sold off. According to an analysis we come to the conclusion that beer distribution mainly has the listed channels.
1. Retail Stores
Nearly 80% of the beer is mostly sold off at the retails stores and for this the distributor will have to put in an a lot effort to initially get their name to the retail outlet. A time span of nearly 09 months can be predicted to only get the approval. These distributors come up with strategies to incentivize the product by either going down on prices or introducing packages. Geographical locations plays an important part in this whole scenario.
2. On-Premise
Bars and restraunts will always be the hot selling place for such products but again many hindrances might be faced before we can even get to that postion. It gets very important to equip our sales team with the knowledge raught system knowledge, proper pouring and serving techniques, expertise to sell off the product
3. On-Site
Selling beer to consumers from your brewery may be the most profitable, but bear in mind what kind of environment we will need to create. Do you have a storefront? Is a tasting bar part of your experience? Will you sell draught and packaged beer to consumers? Keep in mind that only 9% of beer nationally is draught.
Question: After reading the opinion above, what is your response? What may be some risks or drawbacks? Please be detailed in your opinion.
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