busted sandal

Marketing Plan

Busted Sandal Brewing Company

University of Dallas

Marketing Theory and Practice

May 4, 2016

Written By:

Bethany Pugh

Mike Weisenburger

Andrew Muñiz

Peter Krewet

John O’Brien

Busted Sandal Brewing Company Marketing Plan

Executive Summary

Busted Sandal Brewing Company is a small brewing facility located in San Antonio, TX.

It opened in 2013 and has expanded to be offered in over 130 locations in San Antonio as well as

being offered in 12 other cities throughout south Texas. The company offers four different year

round beers ranging from a light ale to a hearty porter, as well as a number of seasonal beers.

The small team is composed of four brewers, one assistant brewer, and a marketing/

communications specialist. The goal of the company is to provide a beer that is exciting and

adventurous for new seasoned beer drinkers, while also giving new drinkers a simple selection of

easy to understand beers. The current objective of the company is to spread the word about their

brews and expand their market offering to all of Texas.

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TABLE OF CONTENTS

Executive Summary........................................................................................................................ 1

Current Marketing Situation........................................................................................................... 3

Competitive Review.........................................................................................................................4

Objectives and Issues.......................................................................................................................5

Marketing Strategy...........................................................................................................................7

Differentiation and Positioning........................................................................................................7

Marketing Mix….............................................................................................................................9

Product Strategy...............................................................................................................................9

Pricing Strategy..............................................................................................................................10

Distribution Strategy......................................................................................................................10

Promotion Strategy........................................................................................................................11

References .....................................................................................................................................14

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Current Marketing SituationCurrent Situation

Busted Sandal Brewing Company is one of nine popular microbreweries in San

Antonio, TX. The company makes all of its beers in house and from there either sells to bars

or stores that carry their brand. They primarily outsource their distribution to GLI Distributing

which is a smaller San Antonio based distributing company which focuses primarily in beer

distributions. Currently they can only be found on tap around San Antonio and in three bars in

Houston and several in the Rio Grande Valley area. The cans are more widely distributed and

can be found in several major cities in Texas. However at this time the beers are currently only

offered in Texas. The majority of the other nine breweries in the area are larger and have a

much wider selection of beers that they offer, but Busted Sandal is a much newer company

and is beginning to find its niche and develop a strong patron base.

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Competitive Review

Competitor Model Features Price

Freetail Brewing Company

This is a slightly larger brewery which offers more beers than most of the other microbreweries in the area.

Freetail offers over 20 different beer styles including multiple stouts, Belgian style triples, and various rye beers.

Most of the standard beers are around $36 for a box of 24 while some of their beers featured in 22oz bottles range from $6-$13.

Ranger Creek Brewing and Distilling

This is a brewery and also a distillery so they focus more on whiskey than beer. They have a very small brewing section.

Ranger Creek offers 3 year round beers and has specialty and seasonal beers that they come out with each year adding to their lineup.

The prices range from $6-$17 for their 22oz bottles. They also have various size cases with 12oz, 22oz, and 750ml bottles ranging from $30-$182.

Alamo Beer Co.

This is another relatively small brewery similar in size to Busted Sandal. They began brewing in 2014.

They offer 4 different year round beers; ale, pale ale, lager, and pilsner.

Each case of four of their beers is roughly $32.

Blue Star Brewing Company

The brewery is a restaurant and bar with a smaller brewery attached.

They currently offer 15 beers including 4 seasonal beers that are not currently on tap.

The beer can only be purchased at the brewery and restaurant.

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Objectives and Issues

The first and most important issue Busted Sandal should deal with is expanding their

customer base and expanding where their beers are sold. Currently they are offered all

throughout San Antonio and a good portion of southeast Texas, but the only way they are

going to make larger profits is if they continue to expand the location of where their beers are

offered. Currently they have a good base in San Antonio, the fad of people going to

microbreweries is at risk for becoming less popular and if this is the case, they could see a

huge drop in profits. However, if they expand out of San Antonio they will have a better

chance of success because their customer base would not be limited to San Antonio and

instead would be spread throughout the nation.

The next issue the company should look into fixing, and one they have begun to fix, is

the fact that they do not currently have a wide range of beers to choose from. While initially

people might find this limited variety appealing, as it would force them to choose from a small

selection, it could become a problem later on when people are ready for the next flavor, taste,

etc. Currently there is a trend where people enjoy going out and trying the “next new thing”

and finding the newest beer out there from a microbrewery. If Busted Sandal fails to keep up

with one of the larger companies like Freetail who offers over 20 different beers they could

find themselves falling behind and consumers leaving because they desire “the next best

thing.” Recently they did attempt to keep up with the newest trend and produced a new coffee

porter.

The third issue stems from keeping up with the demand for their beer. This

incorporates the first two issues because as they expand their brand to keep up profits and as

they come out with new flavors, tastes, styles, etc. they will need to make sure they can keep

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up with demand and make sure they have enough capacity to make the required volume. They

will need to make sure they can produce enough of their products to keep up with the growing

demand as well as market their new, innovative products to their target audience.

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Marketing StrategySegmentation and Marketing

Targeted Segment Customer Need Corresponding Features/Benefits

Local Beer Enthusiasts -Desire to support local and small businesses while enjoying a quality product

A local brewery that delivers a taste of home in a competitive market

Average to Seasoned Beer Connoisseur

-Desiring new exciting original flavors-Fairly simple flavors all palates can appreciate-A constantly changing selection of beers

Unique but non-complex flavors such as Pumpkin Beer and El Despierto Coffee Porter

Hipsters -Desire to be recognized-To be an early adopter of a growing trend-Desire to be unique-To be on the cutting edge of brewery

-Rustic/vintage branding-Appeal of small, unique and unknown market offering-A growing brand

Differentiation and Positioning

Busted Sandal Brewing Company positions itself as having a variety of unique flavored

beers that every palate can taste and appreciate. When looking at their website, there was no

specific slogan or phrase that appeared to be unique to the brand; however, the opening page of

the Busted Sandal Brewing Company website clearly stated what their goal was: “Our goal is to

capture the respect of the advance beer palate while also producing beer styles that get the

attention of the average beer lover.” Busted Sandal Brewing Company differentiates itself from

other brewing companies in that it offers one-of-a-kind beers including a Pumpkin Beer and a

recently added El Despierto Coffee Porter.

From the research done the company looks as if it uses a concentrated, or niche,

marketing strategy. They do not target any specific age or gender, rather they target avid beer-

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drinkers who want a specialty beer of good-quality. Because they position themselves as having

unique and seasonal flavors, they accrue loyal customers who seek the brand out. According to

the reviews, their customers love the array of flavors and are always eager to try whatever new

flavors the company comes up with. Their brewing factory is located in San Antonio, Texas and

their Tap Room is open to the public during select hours during the week. The location of their

factory seems to be the only complaint of their customers; many reviews claim they are hidden

from any main roads and are difficult to find. Busted Sandal Brewing Company positions itself

as having an array of specialty beers with exclusive flavors and despite their difficult location,

their customers loyally and actively seek them out.

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Marketing MixProduct Strategy

Based on its purpose Busted Sandal Beer does satisfy its core customer value to appeal to

the advanced beer palate, but they also have beers that appeal to the average drinker. The

company does offer some augmented products in the form of seasonal beers and this will only

increase as the company continues to grow in both popularity and retail availability. For

example, they will have a Pumpkin Porter coming in October, and they offer several different

options in addition to their original lager. Recently, they have developed a Coffee Porter that is

only available at their taproom, but they are planning on distributing it to nearby stores soon.

Their packaging for their cans look new, unique, and draws a nice balance between both

of their markets. It is different enough to appeal to the craft beer connoisseur but it also has the

classic look that would appeal to someone drinking Budweiser or Miller Light. Their brand

personality is one that targets a multitude of unique beer drinkers at an affordable price. They are

proud to be located in San Antonio but have a goal to expand across the nation. Because of this

the Busted Sandal’s personality matches perfectly with their target market. Furthermore, this is

mimicked in their distribution as a craft brewery. One can find their beer almost exclusively

within San Antonio, but it is widely spread throughout that area, and this adds to their

positioning as a craft brewery that is also trying to appeal to an average beer drinker.

They can improve in a couple of ways. First, they can make the labels on their cans more

easily decipherable. While their iconic “busted sandal” symbol can be seen on the cans, it can be

hard to decipher the flavor of beer. Secondly, they should offer more of a variety of flavors.

While they are in the process of creating one new flavor, one may not be enough to keep up with

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growing demand. Thirdly, they should make sure their product reaches their target market and

not limit themselves to mainly restaurants. They should look into offering their products in more

liquor stores. Finally, they should make sure their basic beer products are flawless and still are

what their consumers want.

Pricing Strategy

Busted Sandal Brewing Company are cost-oriented when setting their prices and they

seem to utilize a product-line pricing strategy. The price of each of their beers could not be found

anywhere on their website, nor on any of the websites of grocery and liquor stores that distribute

the beer. According to www.specs.com you can purchase the 210 Blonde Ale 24 pack of 12 oz.

beer for $33.85 as well as the Slippery Rock IPA for the same price. These two types of beer

were the only types available via Specs. They could improve in providing their prices online for

their available beers and secondly how much it costs to go to the tasting room. While they offer

many different products it is difficult to see and compare the prices of each product. Even when

checking reviews of the products on review sites such as yelp.com all that was posted was the

prices were “affordable”. They could improve this by simply by adding a tab on their website

with their different products and prices of each flavor. Finally, they could make sure their prices

are not too low so they do not make a profit while also making sure their prices are not so high

that their target market will not be able to afford their products.

Distribution Strategy

Busted Sandal brewing currently distributes its beer in two different channels. First, they

sell their beer to bars, restaurants, and hotels who then sell it on tap. Secondly, they distribute

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their beer through liquor stores, convenience stores, and grocery stores in the form of cans so that

consumers can take their beer anywhere they wish. This strategy will allow them frequent access

to their target market, which as it states on their website, is “to capture the respect of the

advanced beer palate while also producing beer styles that get the attention of the average beer

lover” (bustedsandalbrewing.com).

The company uses indirect channels in order to sell their products in nearby locations

with the majority of sales taking place in San Antonio and a few locations in Austin, Boerne,

Gruene, Houston, New Braunfels, Rio Grande Valley, and Universal City. They have a vertical

distribution channel, which can only be contractual as they are a new company. They would not

be a corporation and they do not have multiple brewing locations so they would not be a

franchise. By expanding their location into a nearby city like Austin they can improve their

distribution channel into another location. They could also sell their products via their website, or

have their products available on their website. Finally, because they have a vertical distribution

channel they could make sure their distributers, wholesalers, etc. are all working together

efficiently.

Promotion Strategy

The founders and brewers of Busted Sandal pride themselves highly on producing hand-

crafted beer from locally sourced seasonal ingredients, all the while maintaining an energy

efficient brewing facility. Throughout the year, Busted Sandal takes part in various different

activities throughout San Antonio in order to promote their brand. For example, during Fiesta, a

historical 10-day long event held annually in San Antonio, Busted Sandal is present at various

events and locations throughout the festival promoting their brand and encouraging customers to

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participate in various promotions. This alone shows the value Busted Sandal holds in being local

and connecting with the community of San Antonio is any way possible.

As far as advertising in concerned, Busted Sandal centers the majority of its advertising

on almost every form of social media; they are active on Twitter, Instagram, and Facebook

during each of their promotional events. Along with social media, Busted Sandal will promote

their newly released beer by setting up tables and booths at local cigar shops during different

local events along with kegs of their beer with free samples. In addition to this they offer various

merchandise such as stickers, hats, and magnets. This allows them to target men who frequent

cigar shops on Saturday afternoons who love beer, especially free beer from a local craft brewer.

They could improve upon promoting not only their physical presence at events, but promoting

things such as their website as well. They could also try and get people talking about their

company/products through word of mouth, hashtags, etc.

Since beer is a product that doesn’t necessarily have a season, Busted Sandal implements

different methods of both Persuasive and Reminder advertising, in that they are constantly

showing the value of their product as a locally sourced craft beer with San Antonio character.

Roland Tamez, the director of marketing and communications at the brewery, mentioned that

they tend to donate beer and sponsor events throughout San Antonio in order to build stronger

relationships with customers. This leads more customers to make the trip to the physical brewery

and purchase their products. Building customer relationships is also a big part of their advertising

strategy; through the various events held at the brewery itself they make sure to gather a strong

local base and include discounts and promotions, specifically focusing on the release of a new

brew. These are effective ways to reach customers and spread demand for their beer. Their

success is evident in that local craft beer lovers can’t seem to get enough of Busted Sandal.

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Lastly, the brewery uses more of a push strategy when implementing advertising, and this is seen

quite clearly with how often they are seen at events promoting and giving out their beer.

Along with their methods of advertising, sales promotions are huge at Busted Sandal,

especially consumer promotions. Busted Sandal frequently offers customers opportunities to

receive discounts when arriving at the brewery as well as offers their customers the opportunity

to purchase Busted Sandal pint glasses. They also frequently attend events around the city to

promote their brand and offer samples and various Busted Sandal merchandise as mentioned

above. For example, Busted Sandal recently began canning some of their year-round beers,

which called for a “Canning” party, where customers could go to the brewery and purchase cans

before they were released in stores and receive discounts on tap beer at the event. While this was

a good promotion for the company, they could improve on offering more events such as this one

to promote their company. Recently, with the exponential growth of the craft beer industry, they

could also improve on implementing more sales promotions to gain customer loyalty, since many

craft beer lovers seem to be loyal to breweries. Lastly, director of Marketing and

Communications at Busted Sandal Roland Tamez mentioned that they tend to donate beer and

sponsor events throughout San Antonio in order to build stronger relationships with customers.

Busted Sandal’s public image throughout San Antonio is a positive one and although people are

still learning about the beer, the brand experiences much positive feedback, resulting in customer

loyalty.

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References

Alamo Beer Company. (n.d.). Retrieved May 3, 2016, from http://www.alamobeer.com

Blue Star Brewing Company. (n.d.). Retrieved May 3, 2016, from http://bluestarbrewing.com

Busted Sandal Brewing Company. (n.d.). Retrieved April 8, 2016, from http://www.bustedsandalbrewing.com/#ourtaproom

Freetail Brewing Company. (n.d). Retrieved May 3, 2016, from https://www.freetailbrewing.com

Ranger Creek Brewing Distilling RSS. (n.d). Retrieved May 3, 2016, from http://www.drinkrangercreek.com

Specs. (n.d.). Retrieved April 11, 2016, from http://www.specsonline.com/cgi-bin/showpage?pageid=main

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