4 SPIRITS DISTILLERY: PR CAMPAIGN 2

4 Spirits Distillery

Public Relations Campaign

Introduction

The purpose of the following plan and supporting research is to improve the sales of spirits at the large-scale events (6,000 attendees or more) that 4 Spirits Distillery attends. The distillery attends approximately three large-scale events per month and does approximately 30 percent of all sales at these events. The plan is based on the opportunities available to improve awareness, interest, evaluation, trial and adoption of the brand at large-scale events.

Situation Analysis

Company Description, Mission & Goals

Dawson Officer, owner of 4 Spirits Distillery, founded the distillery in 2011 in Adair Village, Oregon. His goal was to create fine quality liquor. Currently, 4 Spirits Distillery offers Slaptail and Webfoot Vodka, 4 Spirits Whiskey, 4 Spirits Vodka and three types of 4 Spirits Rums (4 Spirits Distillery website, 2015). The distillery sells its spirits in liquor stores, at the tasting room in the distillery and at large events in Oregon, Washington and Idaho (Officer, 2015). 4 Spirits Distillery is considered a small-batch distillery, also known as craft distillery. This is defined as a distillery that produces less than 20 barrels of a single bottling of a spirit, which is approximately1,000 gallons (Cope, 2014). As of 2014, its spirits are distributed in Oregon, Washington, Idaho, Montanaand Wyoming.

The brand identity and name of the distillery comes from Dawsons ties to the military. He named the distillery after all war veterans and active service members so that we would never forget their service and their sacrifice to our country (4 Spirits Distillery website, 2015). For personal reasons, he also dedicated the name of the distillery to four friends and fellow combat soldiers that he served with in the Oregon National Guard 2nd Battalion, 162nd Infantry Brigade (4 Spirits Distillery website, 2015). The four soldiers were Lieutenant Erik McCrae, Sergeant Justin Linden, Sergeant Justin Eyerly and Sergeant David Roustum (4 Spirits Distillery website, 2015). In 2004 in Baghdad, Iraq, they passed away and because of this, 4 Spirits Distillery is meant to honor them and serve as a reminder about the sacrifices all soldiers make (4 Spirits Distillery website, 2015).

One way the distillery plans to honor veterans is by donating a minimum of 10 percent of the proceeds from the 4 Spirits Bourbon Whiskey sales to various veteran charities around the state of Oregon.

SWOT Analysis

Internal Environment

Strengths

A strength of 4 Spirits Distillery is its community involvement since the business was started. By donating a portion of sales of 4 Spirits Distillery Bourbon Whiskey, 4 Spirits shows it truly cares about the community of active military service individuals, veterans and their families. Dawsons strong ties to military and veteran communities can help bring clientele. Additionally, the company has built a positive reputation and identity in the Corvallis community by using ingredients from local farmers and working with businesses to create the spirits, while focusing on customer service for the general public. Also, the company has built a relationship with the Oregon State University and University of Oregon communities by creating premium vodkas specifically for alumni and other individuals who support these schools. 4 Spirits Distillery has also created an endowed scholarship fund for veterans wanting to return to school at Oregon State University. Therefore, the 4 Spirits name continues to grow and become an integral part of these communities: active and inactive military members, Corvallis, Oregon State University and the University of Oregon.

Another strength is 4 Spirit Distillerys story behind the brand identity and name. According to Cope (2014), consumers are now more conscious of what they are buying, and they want to know about the stories and history behind the company and products.People are no longer interested in just a companys product; they want to know and feel connected to the companys mission and staff. Since 4 Spirits Distillery has a clear brand identity and mission to give back to the military community, it has the opportunity to connect with the public in a unique way because it has a noteworthy story to share.

By making all of its products in the U.S., 4 Spirits Distillery appeals once again to the military community, veterans and those who want to support businesses and jobs in the U.S. Consumers have also rediscovered that the best spirits are made in the U.S. For example, homegrown American whiskey is extremely popular right now as shown by the $2.2 billion worth of revenue in 2012, according to a recent report from the Distilled Spirits Council of the United States (DuBois, 2013) Because 4 Spirits Distillery sells American bourbon whiskey, it has the opportunity to fulfill this need that consumers are looking for in their spirit choices.

Weaknesses

The small size of the organization is a potential constraint because more is asked of the few individuals who work there; they wear many hats and have many roles. Additionally, its smaller size means it cant produce as much liquor in large volumes as some of its competitors. Therefore, if the demand for 4 Spirits Distillerys spirits increases, the company may not have the necessary tools and employees to increase the supply and store it.

In part, due to its size, 4 Spirits Distillery is only distributed in Oregon, Washington, Idaho, Montanaand Wyoming. This means that the distillery is eliminating potential customers because it doesnt supply all states. The limited geographic reach means that the distillery may not gain a national name and wont be able to sell as many spirits as it could if it had a wider reach.

External Environment

Opportunities

Portland, and Oregon as a whole, has a growing community of foodies, wine enthusiasts and spirits fans. Because of this, food and beverage events are popular in Oregon and are an opportunity for Oregon distillers to share what they have to offer. DuBois (2013) says that people who attend food and beverage festival events are such loyal fans that they often know more about the products than the sales reps. These events are no longer just about the event alone, but rather the events offer an opportunity for 4 Spirits Distillery to share its products to the already existing foodie community. Even at more general conferences, people expect unique food and beverages to accompany their experience. This expectation in Oregon, which is also growing around the U.S., is an opportunity for 4 Spirits Distillery to interact with the public, share its mission and provide tastings of its spirits.

Saad (2012) says that over the last five years, the consumption of spirits and wine has increased significantly while beer consumption has surprisingly declined. This market trend is an opportunity for 4 Spirits Distillery to expand its clientele. According to PR Newswire (2014), as the economy continues to improve, the consumption of premium small-batch distilled spirits will continue to increase. PR Newswire (2014) attributes this change to people wanting to drinker higher quality alcohol, and a common consensus is that craft small-batch distilleries can provide the premium products that people now seek. A study by Ginley (2012) also has shown a growing interest and preference in the local artisanal craft beverage movement. Similar artisanal movements in food sparked this change in the beverage industry. People value the ability to know where their products come from and be able to connect with the individuals who crafted the product, while also being a part of the community that loves to discuss, critique and be a part of the artisanal craft movement. The community of food and spirits enthusiasts is the same demographics as the people who attend large-scale events that 4 Spirits Distillery is often at. Because 4 Spirits Distillery is a small craft distillery, it serves this community regularly. Additionally, while craft distillers dont own a majority of the spirits market, they are influencing how bigger brands are now marketing products. According to DuBois (2013), even major international distillers and brewers are designing brands to look like they were home-brewed, because consumers are now starting to prefer this type of brand identity. Therefore, 4 Spirits Distillery does not have to change its brewing model to fit the current trend, but rather has been a part of the growing trend of craft distilleries since it was founded.

DuBois (2013) argues that younger audiences are becoming more interested in experimenting with their alcohol choices, no longer only relying on cheap beer as their preferred beverage choice. This is because younger generations no longer want only one type of alcohol or cocktail. They like to experiment and try innovative drinks. Similarly, Cope (2014) argues that pop culture and the craft movement have influence Americans of all ages to try new cocktails and drinks. For example, the cocktail culture in Portland is continually growing because it is supportive of locally made small-batch spirits because craft spirits provide an opportunity for mixologists to create new and innovative drinks. Mixologists and bartenders wouldnt be able to make as many kinds of unique cocktails without the unique flavor profiles that each craft distiller creates (Cope, 2014). This provides an opportunity for 4 Spirits Distillery because its spirits have unique flavor profiles, which is not only appealing to the general public looking for new flavors to try, but also mixologists, who want to fill the demand for innovative cocktails.

Also relevant is the increase in consumer interest in ethical and socially responsible brands (Garfield & Levy, 2013). Unlike some of its competitors, 4 Spirits Distillery gives back to its community by donating a portion of sales from the 4 Spirits Bourbon Whiskey to veterans and by starting an endowment scholarship fund at Oregon State University for veterans to attend college. Therefore, 4 Spirits Distillery has an opportunity to promote its philanthropic work to prove to its target audience that it cares about more than just making money. Instead, 4 Spirits Distillery cares about making a difference in the communities it serves and therefore is a trustworthy and socially responsible brand, which is now what customers prefer.

Threats

Despite Saad (2012) arguing that the interest in spirits is growing in the U.S., other alcoholic beverages still dominate the market for males and females. According to a more recent study by Saad (2014), 41 percent of U.S. drinkers report they typically drink beer; 31percent name wine as their preferred beverage and 23 percent name liquor. 46 percent of women prefer wine, 17 percent of men prefer beer and 57 percent of me prefer beer and only 20 percent of men prefer liquor (Saad, 2012). This poses a threat to 4 Spirits Distillery because despite the publics growing interest in spirits in the past decade for both men and women, spirits are still not the primary drink of choice for both genders.

Competition between craft distilleries has increased for 4 Spirits Distillery since it was founded. The small-batch distillery industry is always growing, which means 4 Spirits must strive to differentiate itself from the competition. According to Daley (2013), craft distilling is growing rapidly right now, similarly to what happened to craft brewing before it. Less than a decade ago, there were 70 distilleries in the U.S. Now there are 623, producing everything from whiskey, gin, vodka and rum to less-common spirits such as absinthe--and all the schnapps in between. The market will be able to support 1,000 independent booze-makers within a few years (Daley, 2013). According to the Oregon Distillery Trail (2015), there are 32 distilleries currently operating in Oregon, including 4 Spirits Distillery. Although 4 Spirits Distillery is growing, there is limited awareness in the market. This is partly because of competitors who also crowd the craft distillery market. On top this, larger brands block awareness of the smaller craft distilleries as well. Therefore, 4 Spirits Distillery has to strive to differentiate itself from its competitors at both levels.

Economic conditions could also pose a threat to 4 Spirits Distillery. Due to economic conditions, people dont always prioritize their budgets to spend on high-quality spirits. Because the cost of 4 Spirits Distillery spirits is more expensive than major brand competitors, it is harder for people to afford and justify the purchase. However, in comparison to other small-batch spirits, the spirits are competitively priced. Refer to the business analysis section for a full price breakdown of 4 Spirits Distillerys products.

Business Analysis

4 Spirits Distillery includes six employees. The individuals are an owner, one marketing specialist, two pourers and saleswomen at events and two part-time pourers at the tasting room. The price of 4 Spirits Distillery spirits varies, but it is considered a premium brand based on price. The approximate prices for the distillerys spirits are: $28.95 for 4 Spirits Bourbon Whiskey, $24.95 for 4 Spirits Vodka, $31.95 for 4 Spirits Spiced Rum, $29.95 for 4 Spirits Silver Rum and $20 for Webfoot and Slaptail Vodka (Oregon Liquor Control Commission Monthly Numeric Price List, 2015). The 4 Spirits Dark Rum is still in production so it is not priced yet, but should be about $30, like the other rums in 4 Spirits rum line. All spirits are sold in 750 mL bottles. The spirits are priced similarly to other premium hand-crafted spirits made in Oregon (Oregon Liquor Control Commission Monthly Numeric Price List, 2015). However, the spirits are priced higher than its mass-produced counterparts. For example, 750 mL bottle of Bacardi Gold Rum is $14. 95 and 4 Spirits Spice Rum is approximately $31.95 (Oregon Liquor Control Commission Monthly Numeric Price List, 2015).

Sales Channels

The distillery makes approximately 30 percent of its sales through its large events. It attends approximately 12 events per month, three of which are usually large-scale. The large-scale events can be industry-related or general conference. At these events, 4 Spirits Distillery has a booth, sells cocktails and provides tasting of its spirits. Spirits can be purchased at these events. When the distillery attends and serves at a large-scale event, there is usually an entrance fee for the general public. The price of events vary, but based on events 4 Spirits Distillery attended in March (Taste Portland, Sip, Spring Beer and Wine Fest and Portland Womens Expo), the entrance fee can be free or cost up to $25. Additional costs for event attendees will include the cost of 4 Spirits Distillerys cocktails and tasting. At Sip, cocktails cost $5 and a tasting of two spirits cost approximately $1. Other 4 Spirits merchandise, such as T-shirts, hats and glassware, is also sold at events.

Other than these large-scale events, 4 Spirits also sets up tastings booths at liquor stores and opens its tasting room at the distillery every Saturday from 12-5 p.m. and by appointment. This is another way the distillery promotes and sells its products. In comparison to the large events, the liquor store tastings have a different target audience. A wider range of people will be at a liquor store tasting simply because a wider range of people go to liquor stores in comparison to the people who attend the large-scale events. However, most people go to liquor stores already knowing what spirit they want to purchase, while people attending large events, such as a food and beverage trade show, are looking for innovative new products and are willing to experiment with their spirit purchases.

Current Communications/Marketing

Important channels of communication for 4 Spirits Distillery include the distillerys website and Facebook page. These are the primary ways of communicating about the events, as well as word of mouth. The distillery prefers to only use Facebook for social networking at this time because 4 Spirits Distillery doesnt have enough staff to focus on an additional social media channel. Additionally, the distillery relies on promotion and information to be spread by event planners.

Target Audience

This campaigns target audience is consumers at the events 4 Spirits Distillery attends to promote its beverages, including events such as McMinnvilles Sip, Taste Portland and the Portland Womens Expo. According to Dawson (2015), the people who attend these events are usually 25 to 50 years old and are primarily upper-middle class. They also have a predisposed interest in craft distilleries, breweries and wineries. These individuals must have the interest and disposable income to pay entrance fees and to buy cocktails and tastings.

Dawson (2015) says that he has seen younger adults becoming more active in the food and beverage industry through these conference events in the past five years. A majority of 4 Spirits Distillerys current customer base consists of more sophisticated adults above the age of 35. 4 Spirits Distillery needs to continue to satisfy this well-established demographic but should cultivate a relationship with the younger crowd that is emerging at these events.

This younger audience consists of men and women between the ages of 21 and 35 that live in large metropolitan areas within the four states that 4 Spirits distributes to. These younger adults have college degrees and full-time jobs with a steady income. According to the VALS Framework, they are socially active with their friends, often hosting or attending social gatherings. They partake in certain rituals that include cocktails with dinner and cocktails as a crucial component of social gatherings. This group is beginning to form opinions on what brands they like, including what spirits and tastes they prefer. They also respect brands that care about the community and give back. They value friendliness and good customer service when they purchase a product or service. These people are very tech savvy and heavily connected through social media platforms. They are always interested in the latest trend; they want to interact with their favorite brands and get involved in discussions in their online community.

This campaign is designed to guide this target audience through the stages of the diffusion of innovation theory to eventually adopt 4 Spirits Distillery. Diffusion of innovation is a public relations theory that explains that people adopt an idea or behavior after going through five steps, which include: awareness, interest, evaluation, trial and adoption.

References

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http://4spiritsdistillery.com/2012/10/4-spirits-whiskey/

4 Spirits Distillery. (2015). About Us. 4 Spirits Distillery. Retrieved from http://4spiritsdistillery.com/about-us/

4 Spirits Distillery. (2015). Products. 4 Spirits Distillery. Retrieved from http://4spiritsdistillery.com/products/

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Cope, S. (2014). Small batch: Pickles, cheese, chocolate, spirits and the return of artisanal foods. London: Rowman & Littlefield Publishers.

Daley, J. (2013, November 19). Food and beverage trend for 2014: The rise of craft distilleries.

Entrepreneur. Retrieved from http://www.entrepreneur.com/article/229855

DuBois, S. (2013, February 19). The New United States of Booze. Fortune. Retrieved from

http://DuBois.com/2013/02/19/the-new-united-states-of-booze/

Garfield, B. & Levy, D. (2013).Cant buy me like: How authentic customer connections drive

superior results.New York, NY: Portfolio/Penguin.

Ginley, M. (2012). U.S. Beverage Alcohol Trends. U.S. Beverage Alcohol Forum.

Retrieved from http://www.usdrinksconference.com/assets/files/agenda/U.S.%20Beverage%20Alcohol%20Trends.pdf

Oregon Distillery Trail. (2015). Trail distilleries. Retrieved from http://oregondistillerytrail.com/

Oregon Liquor Control Commission (2015, April 1). Monthly numeric price list. Retrieved

from http://www.olcc.state.or.us/pdfs/monthly_numeric_price_list_c.pdf

PR Newswire. (2014, October 15), Distilled spirits consumption still on the rise. PR Newswire. Retrieved from http://www.prnewswire.com/news-releases/distilled-spirits-consumption-still-on-the-rise-279305802.html

Saad, L. (2012, August 17). Majority in U.S. drink alcohol, averaging four drinks a week.

Gallup. Retrieved from http://www.gallup.com/poll/156770/majority-drink-alcohol-averaging-four-drinks-week.aspx

Saad, L. (2014, July 23). Beer is Americans adult beverage of choice this year. Gallup.

Retrieved from http://www.gallup.com/poll/174074/beer-americans-adult-beverage-choice-year.aspx