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MARKETING PLAN
                   Nymburk brewery




© CEDUK - 2011
A marketing plan is very important part of any company business plan. Our MKT plan we
compiled as a well-written document containing specific and absolutely concrete strategy and
actions. We reduced theoretical excess and concentrated only in practical detail oriented way how to
penetrate German beer market.




                     Postřižiny brewery in Nymburk

1.       Basic information of the company



     •   Name:         Nymburk Brewery, Limited Liability Company
     •   Address:      Pražská 581
                       288 25 Nymburk
                       Czech Republic


     •   Company owner&director: Pavel Benák (100%)
     •   Articles:     - goods purchase in order to its sale and goods sale
                       - beer and malt production
                       - molasses, non-alcoholic and special beverages production
                       - pasturage and pasturage mixture production


     •   Nymburk Brewery, LLC, is a local brewery of middle size with a long history. It was found
         in 1785. People in the Czech Republic became aware of the brewery thanks to the close
         connection with the famous writer Bohumil Hrabal, who lived here from 1919 to 1947 and
         who wrote a book “Postriziny” based on the stay here. The book was cinematized by the
         famous director Jiri Menzl.


1.1      Mission
                                                    2
„Our Postřižinské beer, a drink for everyone”


 •   Main objective: To sell the maximum number of bottles on the German market, that means
     by the end of year the 2012, increase export to Germany to 30 thousand hl. Exports will
     include Gold Bohemia Beer - 330 ml, Nymburk Can - 0.5 liter, Gold Bohemia Beer - 330 ml
     (6 pack). Customers are median incomes and low incomes.

 •   Brewery Postřižiny is located in the southern part of the town of Nymburk, 40 km from
     Prague. It is medium-sized brewery. The brewery was founded by Imperial and Royal
     decree at the 29 April 1895, brewing in the city has a long tradition. Postřižinský brewery is
     linked to the writer Bohumil Hrabal, and is immortalized in the film by Jiri Menzel
     Postřižiny based on Hrabal’s novel.


 •   There is own beer shop in the brewery building


 •   The brewery regularly organizes various events (Den otevřených dveří, Postřižinský
     Express, Hrabalovo Kersko,...)




                                                3
2.       Situation at our markets


         •   The brewery was successful to maintenance positions and to increase sale in the local
             area. The beer was supplied into Norma chain.

         •   The main exportable country was Germany (74.6% of the whole export), Sweden
             (11.4% of the whole export) and France (9.7% of the whole export). Other exportable
             countries were Denmark, Romania and newly Finland and Russia.

         •   In 2009 the company was successful to maintenance positions in chain supermarkets
             such as Penny Market, COOP Centrum, Ahold, Plus Discount, Norma, Billa and
             Kaufland.




2.1      Our customers



     •   Prevailing customers are:

                •   local people (in particular men between 30 and 60), who buy the the beer in the
                    company shop, other small shops, fairs and other events

                •   chain supermarkets

                •   foreign customers




                                                   4
2.2     SWOT analysis




    [S] Strengts                                         [W] Weakness
    -   long tradition (116 years)                       -   Seasonal annual production of beer (since
    -   expori experience                                    1990 without a significant increase)
    -   long partnership with Czech multiple             -   a small percenatge interest on the Czech
        chain stores                                         market
    -   broad beer portfolio (8 sort)                    -   Net profit in the year 2009 only 401
    -   longlasting volume production                        thousand. CZK (500% decrease
    -   literally famous brewery                             compared to 2007)
    -   innovated production technology                  -   1 revolving loan and 1 medium-term loan
    -   non foreign capital, 100% domestic               -   weak promotional activities
        capital                                          -   insufficient monitoring of current trends
    -   well-content and motivated staff                     and responsing on them
    -   37 beer awards and evaluations in the last       -   absence of non-alcoholic beer
        10 years
    -   strong know-how
    -   open and friendly to customers, partners
        and very good Public Relation

    [O] Opportunities                                    [T] Threats
    -   slowdown of competitive business                 -   price cuts by competitors
    -   depreceation of primary commodities              -   change in legislation
    -   consumer increase of beer per year               -   reduce the consumption of beer
    -   modern production technology                     -   new competitors on market




2.3     Competition


•   Competition for Nymburk Brewery are big supra-national breweries more than local ones which
    produce special beer. That´s why Nymburk Brewery focuses on the local consumers, tries to put
    its products through big supermarket chains in the surroundings and seeks new consumers
    abroad. Nymburk Brewery introduces now unusual beer flavours for its consumers by
    implementing new technologies (pasteurized, non-pasteurized beer, lager, dark beer), adding
    different new flavours made of exotic substances.

•   The brewery leadership constantly follows and evaluates competitors´assortment and price
    politics. The biggest competitors are big Czech breweries (Pilsner and Budweiser) and
    international firms producing beer of good quality.

                                                     5
2.4     Marketing research results – outcome



•    The annual beer consumption is 106 liters per person, total 93 mio hl. In Germany, drink beer
     almost 70% of the population. 54% of Germans drink beer at least several times a week and
     prefer bottled beer. However, three quarters prefer only one brand and the same number of
     Germans prefer domestic brands. Imported beer must take, such as traditional manufacturing,
     labeling, etc.




3.      German beer market


•    There are about 60 domestic beers brands in Germany. Direct competitors are imported beers,
     from czech Budvar, Breznak and Pilsner Urquell, from foreign are especially Guinness and
     Carlsberg. Indirect competitors are domestic beer production in the low/medium price range.




                                                  6
4.      Marketing mix

4.1     Product


The company brews 6 kinds of lager, 2 kinds of dark beer and special kinds of beer:


•    Types of beer
•    Doktorova 8°
•    Postřižinské výčepní
•    Pepinova desítka
•    Tmavý ležák
•    Postřižinské pivo 11%
•    Francinův ležák
•    Něžný Barbar
•    Bogan
•    Gold Bohemia Beer
•    Nymburk Lager Beer



•    It is sold under the name “Postrizinske pivo” in the domestic market and under the registered
     marks “Gold Bohemia Beer” and “Nymburk Lager Beer” for export. Beer is tapped into 30 and
     50 l barrels, 0.33 and 0.5 l bottles and into tanks. The beer has got durability from 30 days up to
     1 year according to the way of manufacturing and final preparation.

•    For 116 years Misters Brewers have been evolving and tasting delicious, sweet-bitter balanced
     beer . Gustatory sense is harmonious, gently sparkling, honey-gold colour with rich and creamy
     foam. The biggest volume on business takes Bohemia Goldbeer, that is the product we mostly
     concentrate our Marketing Plan. So we suggest to enter German market exactly with this beer.
     There is a well supplied market in Germany that is going to be penetrated by our Bohemia Gold
     Beer 330 ml and interesting economical pack „six pack“.




                                                    7
•   Wrapping beer production 2009 in hl (bottle, barrel, tin)

                       114 043
    120000
    100000
     80000
     60000
     40000                                     22 563
                                                                        12 000
     20000
            0
                        bottle                  cask                    can




    •   Sort variety production (draught beer, lager, light, special)


                      96 013
    100000
     90000
     80000
     70000
     60000
     50000                             39 273
     40000
     30000
     20000                                              12 815
     10000                                                                 505
         0
                    normal             lager             light           special
                                                    8
4.2   Distribution



  •   We made an analysis and decided that most suitable for distribution will be Gold Bohemia
      Beer, and Nymburk CAN.

  •   We are aware of a wide range of chain stores (Penny Market, COOP, Ahold, Norma, Aldi,
      Metro, Lidl),


  •   The most important question are listing fees – it means extra fees of inclusion product to the
      offer


  •   At the place where the product will be sold (in a particular trade chain) will be located sales
      support items (leaflets, POS and POP materials). Before selling we will provide training to
      chain store managers, promotional materials, tasting, samples, support and service.

  •   Direct distribution channels (dealers, own beer shop, restaurants)

  •   Indirect distribution channels (Penny Market, COOP, Ahold, Norma, Aldi, Metro, Lidl)

  •   Beer which is going to be exported is treated by special technologies to longer its shelf life.
      So the final price is increased.




                                                 9
4.3     Economic indicators and price


The table of selected economic indicators: (in thousands €)
Indicator                           year   2007           2008            2009

Turnover                                   4 709          4 203           4 722
Own capital                                572            168             604
Sales of products                          4 438          4 055           4 522
Value                                      1 113          1104            4 522
Profit for the period                      82             16              16
Wages costs                                710            684             711
Bank loans                                 400            620             566

Number of employees                        90             88              87
Average wage                               671            654             667

•   From the foregoing, there we can see, the company has long-term profits, is able to meet its
    obligations, and has a highly liquid asset. Data for 2010 are not yet available, because czech
    economic year closes to 31th of March or 30th of June the following year.




4.3.1 Price

•   Estimated price of 0,33 l Bohemia Gold Beer is about 0,45 – 0,50 €

•   Estimated price of 6 pack 0,33 l Bohemia Gold Beer is about 2,5 – 3 €




4.3.2 Financial status

•   The brewery is financed from its own sources and bank credits. The brewery carries out
    financial analyses with the help of ratio index and in the bases of it the board decides how to
    handle the sources


                                                   10
4.3.3 Analysis of profitability


 18
 16
 14
 12
 10
  8
                                          a)   Return of sales
  6
                                          b)   Return of costs
  4                                       c)   ROA - Return on Assets
  2                                       d)   ROE - Return on Eqity
  0                                       e)   ROI - Return on Investment
          2006          2007      2008




4.3.4 Profit analysis




                                     11
6000

    5000
                                                                    EAT - earnings after taxis
    4000

    3000                                                            EBIT - earning before
                                                                    interest and taxis
    2000
                                                                    EBITDA - earning before
    1000                                                            interest, taxis and
                                                                    depreciation
       0
                 2006               2007               2008


4.4     Promotion and communication

•    How is the selling of the product arranged?
•    Personal selling (dealers)
•    Customer contacts (marketing data – e-mail, mobile phone)
•    Retail
•    Wholesaler




4.4.1 Advertising

•    Radio spots
•    Billboards
•    Internet (Homepage, banners, PPC, Facebook, twitter, PR, viral movies)
•    Use of well-known writer‘s name (Bohumil Hrabal) and his masterpiece (Postriziny) which was
     cinematized for promoting beer on the labels and promotion materials




4.4.2 Promotion and sales

•    Fairs and exhibitions home and abroad
•    Taking part in quality food product competition
                                                 12
•   Beer days (tasting beer, contests, samples)
•   Mats, tablecloths, umbrellas, mugs with logo

•   Tastings are always made to the public free of charge and are designed primarily to get new
    products into the public consciousness, people familiar with the national or regional specialties
    and of course the mapping of the response of recipients to that product. Tastings are a popular
    and very effective part of advertising campaigns.




4.4.3 How to promote Postřižiny beer in German market – summary

•   Homepage link on retail web pages (lidl.de, norma.de etc.)
•   Leaflets
•   Radio in store – trailer, for example: „neues Tschechisches Beer aus Nymburk“
•   Trailers at the place, where the products are sold – drinks and beer department (POS, POP
    materials)

• Boot actions and repetitiv actions for example: Christmas, Valentines Day, Easter, 2+1, 3+1
competition for a weekend in the Czech republic once a year

•   PR article with the introduction of a product and company in the German gourmet magazine
    (Apetit, Gourmet, etc)

•   Press conference (invite the target group of professional journalists and ifluential people




                                                   13

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German Beer Market Entry

  • 1. MARKETING PLAN Nymburk brewery © CEDUK - 2011
  • 2. A marketing plan is very important part of any company business plan. Our MKT plan we compiled as a well-written document containing specific and absolutely concrete strategy and actions. We reduced theoretical excess and concentrated only in practical detail oriented way how to penetrate German beer market. Postřižiny brewery in Nymburk 1. Basic information of the company • Name: Nymburk Brewery, Limited Liability Company • Address: Pražská 581 288 25 Nymburk Czech Republic • Company owner&director: Pavel Benák (100%) • Articles: - goods purchase in order to its sale and goods sale - beer and malt production - molasses, non-alcoholic and special beverages production - pasturage and pasturage mixture production • Nymburk Brewery, LLC, is a local brewery of middle size with a long history. It was found in 1785. People in the Czech Republic became aware of the brewery thanks to the close connection with the famous writer Bohumil Hrabal, who lived here from 1919 to 1947 and who wrote a book “Postriziny” based on the stay here. The book was cinematized by the famous director Jiri Menzl. 1.1 Mission 2
  • 3. „Our Postřižinské beer, a drink for everyone” • Main objective: To sell the maximum number of bottles on the German market, that means by the end of year the 2012, increase export to Germany to 30 thousand hl. Exports will include Gold Bohemia Beer - 330 ml, Nymburk Can - 0.5 liter, Gold Bohemia Beer - 330 ml (6 pack). Customers are median incomes and low incomes. • Brewery Postřižiny is located in the southern part of the town of Nymburk, 40 km from Prague. It is medium-sized brewery. The brewery was founded by Imperial and Royal decree at the 29 April 1895, brewing in the city has a long tradition. Postřižinský brewery is linked to the writer Bohumil Hrabal, and is immortalized in the film by Jiri Menzel Postřižiny based on Hrabal’s novel. • There is own beer shop in the brewery building • The brewery regularly organizes various events (Den otevřených dveří, Postřižinský Express, Hrabalovo Kersko,...) 3
  • 4. 2. Situation at our markets • The brewery was successful to maintenance positions and to increase sale in the local area. The beer was supplied into Norma chain. • The main exportable country was Germany (74.6% of the whole export), Sweden (11.4% of the whole export) and France (9.7% of the whole export). Other exportable countries were Denmark, Romania and newly Finland and Russia. • In 2009 the company was successful to maintenance positions in chain supermarkets such as Penny Market, COOP Centrum, Ahold, Plus Discount, Norma, Billa and Kaufland. 2.1 Our customers • Prevailing customers are: • local people (in particular men between 30 and 60), who buy the the beer in the company shop, other small shops, fairs and other events • chain supermarkets • foreign customers 4
  • 5. 2.2 SWOT analysis [S] Strengts [W] Weakness - long tradition (116 years) - Seasonal annual production of beer (since - expori experience 1990 without a significant increase) - long partnership with Czech multiple - a small percenatge interest on the Czech chain stores market - broad beer portfolio (8 sort) - Net profit in the year 2009 only 401 - longlasting volume production thousand. CZK (500% decrease - literally famous brewery compared to 2007) - innovated production technology - 1 revolving loan and 1 medium-term loan - non foreign capital, 100% domestic - weak promotional activities capital - insufficient monitoring of current trends - well-content and motivated staff and responsing on them - 37 beer awards and evaluations in the last - absence of non-alcoholic beer 10 years - strong know-how - open and friendly to customers, partners and very good Public Relation [O] Opportunities [T] Threats - slowdown of competitive business - price cuts by competitors - depreceation of primary commodities - change in legislation - consumer increase of beer per year - reduce the consumption of beer - modern production technology - new competitors on market 2.3 Competition • Competition for Nymburk Brewery are big supra-national breweries more than local ones which produce special beer. That´s why Nymburk Brewery focuses on the local consumers, tries to put its products through big supermarket chains in the surroundings and seeks new consumers abroad. Nymburk Brewery introduces now unusual beer flavours for its consumers by implementing new technologies (pasteurized, non-pasteurized beer, lager, dark beer), adding different new flavours made of exotic substances. • The brewery leadership constantly follows and evaluates competitors´assortment and price politics. The biggest competitors are big Czech breweries (Pilsner and Budweiser) and international firms producing beer of good quality. 5
  • 6. 2.4 Marketing research results – outcome • The annual beer consumption is 106 liters per person, total 93 mio hl. In Germany, drink beer almost 70% of the population. 54% of Germans drink beer at least several times a week and prefer bottled beer. However, three quarters prefer only one brand and the same number of Germans prefer domestic brands. Imported beer must take, such as traditional manufacturing, labeling, etc. 3. German beer market • There are about 60 domestic beers brands in Germany. Direct competitors are imported beers, from czech Budvar, Breznak and Pilsner Urquell, from foreign are especially Guinness and Carlsberg. Indirect competitors are domestic beer production in the low/medium price range. 6
  • 7. 4. Marketing mix 4.1 Product The company brews 6 kinds of lager, 2 kinds of dark beer and special kinds of beer: • Types of beer • Doktorova 8° • Postřižinské výčepní • Pepinova desítka • Tmavý ležák • Postřižinské pivo 11% • Francinův ležák • Něžný Barbar • Bogan • Gold Bohemia Beer • Nymburk Lager Beer • It is sold under the name “Postrizinske pivo” in the domestic market and under the registered marks “Gold Bohemia Beer” and “Nymburk Lager Beer” for export. Beer is tapped into 30 and 50 l barrels, 0.33 and 0.5 l bottles and into tanks. The beer has got durability from 30 days up to 1 year according to the way of manufacturing and final preparation. • For 116 years Misters Brewers have been evolving and tasting delicious, sweet-bitter balanced beer . Gustatory sense is harmonious, gently sparkling, honey-gold colour with rich and creamy foam. The biggest volume on business takes Bohemia Goldbeer, that is the product we mostly concentrate our Marketing Plan. So we suggest to enter German market exactly with this beer. There is a well supplied market in Germany that is going to be penetrated by our Bohemia Gold Beer 330 ml and interesting economical pack „six pack“. 7
  • 8. Wrapping beer production 2009 in hl (bottle, barrel, tin) 114 043 120000 100000 80000 60000 40000 22 563 12 000 20000 0 bottle cask can • Sort variety production (draught beer, lager, light, special) 96 013 100000 90000 80000 70000 60000 50000 39 273 40000 30000 20000 12 815 10000 505 0 normal lager light special 8
  • 9. 4.2 Distribution • We made an analysis and decided that most suitable for distribution will be Gold Bohemia Beer, and Nymburk CAN. • We are aware of a wide range of chain stores (Penny Market, COOP, Ahold, Norma, Aldi, Metro, Lidl), • The most important question are listing fees – it means extra fees of inclusion product to the offer • At the place where the product will be sold (in a particular trade chain) will be located sales support items (leaflets, POS and POP materials). Before selling we will provide training to chain store managers, promotional materials, tasting, samples, support and service. • Direct distribution channels (dealers, own beer shop, restaurants) • Indirect distribution channels (Penny Market, COOP, Ahold, Norma, Aldi, Metro, Lidl) • Beer which is going to be exported is treated by special technologies to longer its shelf life. So the final price is increased. 9
  • 10. 4.3 Economic indicators and price The table of selected economic indicators: (in thousands €) Indicator year 2007 2008 2009 Turnover 4 709 4 203 4 722 Own capital 572 168 604 Sales of products 4 438 4 055 4 522 Value 1 113 1104 4 522 Profit for the period 82 16 16 Wages costs 710 684 711 Bank loans 400 620 566 Number of employees 90 88 87 Average wage 671 654 667 • From the foregoing, there we can see, the company has long-term profits, is able to meet its obligations, and has a highly liquid asset. Data for 2010 are not yet available, because czech economic year closes to 31th of March or 30th of June the following year. 4.3.1 Price • Estimated price of 0,33 l Bohemia Gold Beer is about 0,45 – 0,50 € • Estimated price of 6 pack 0,33 l Bohemia Gold Beer is about 2,5 – 3 € 4.3.2 Financial status • The brewery is financed from its own sources and bank credits. The brewery carries out financial analyses with the help of ratio index and in the bases of it the board decides how to handle the sources 10
  • 11. 4.3.3 Analysis of profitability 18 16 14 12 10 8 a) Return of sales 6 b) Return of costs 4 c) ROA - Return on Assets 2 d) ROE - Return on Eqity 0 e) ROI - Return on Investment 2006 2007 2008 4.3.4 Profit analysis 11
  • 12. 6000 5000 EAT - earnings after taxis 4000 3000 EBIT - earning before interest and taxis 2000 EBITDA - earning before 1000 interest, taxis and depreciation 0 2006 2007 2008 4.4 Promotion and communication • How is the selling of the product arranged? • Personal selling (dealers) • Customer contacts (marketing data – e-mail, mobile phone) • Retail • Wholesaler 4.4.1 Advertising • Radio spots • Billboards • Internet (Homepage, banners, PPC, Facebook, twitter, PR, viral movies) • Use of well-known writer‘s name (Bohumil Hrabal) and his masterpiece (Postriziny) which was cinematized for promoting beer on the labels and promotion materials 4.4.2 Promotion and sales • Fairs and exhibitions home and abroad • Taking part in quality food product competition 12
  • 13. Beer days (tasting beer, contests, samples) • Mats, tablecloths, umbrellas, mugs with logo • Tastings are always made to the public free of charge and are designed primarily to get new products into the public consciousness, people familiar with the national or regional specialties and of course the mapping of the response of recipients to that product. Tastings are a popular and very effective part of advertising campaigns. 4.4.3 How to promote Postřižiny beer in German market – summary • Homepage link on retail web pages (lidl.de, norma.de etc.) • Leaflets • Radio in store – trailer, for example: „neues Tschechisches Beer aus Nymburk“ • Trailers at the place, where the products are sold – drinks and beer department (POS, POP materials) • Boot actions and repetitiv actions for example: Christmas, Valentines Day, Easter, 2+1, 3+1 competition for a weekend in the Czech republic once a year • PR article with the introduction of a product and company in the German gourmet magazine (Apetit, Gourmet, etc) • Press conference (invite the target group of professional journalists and ifluential people 13