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... Executive Summary
Sports City Beer is a new product that is designed to meet the needs of NFL fans in their individual team markets while earning new revenue and market share in competition with local microbrewers. Miller Brewing is the parent company of this beer. ... It will be marketed and sold during the late summer to early winter months and coincide with the NFL and national collegiate fall football season. ... It will be targeted towards beer drinkers in cities where NFL football teams reside and to the rabid fans of those teams. ... Our purpose is to create a niche product that can fit into a situation that fosters the consumption of beer in a fun, competitive atmosphere and piggy back on the loyalty the customer base has for its team and city. ...
Miller High Life beer was first put on the market in 1903. It won the bronze medal in the American-style Lager category at the 1999 Great American Beer Festival. ... Miller Lite won gold medals in the 1996 and 1998 World Beer Cup competition in the American-style Light Lager category. ...
Miller Brewing Company has international markets that sold more than 3 million hectoliters of beer in 2001. ...
Sports City Beer is a new product line Miller is developing. In 2002, Miller Brewing lost the sponsorship rights of the NFL to Coors. This left a large void in Miller’s marketing budget as well as a potential loss of revenue and market share. The focus of the Sports City Beer is to recapture beer drinking NFL fans and provide a microbrew product to compete with the rising popularity of microbrews among football fans, and to increase the revenue of the Miller Brewing. Sports City Beer will be locally flavored and marketed in support of the microbrew concept, and linked to the local NFL team to give the beer a football relation. ... Strategic Focus and Plan
Mission
The mission of Sports City Beer is to be the preferred brewer of micro-beer associated with NFL teams across the country and to provide Miller Brewing with a profitable new product line.
GOALS:
Sports City Beer is being introduced by Miller Brewing Company to achieve the following goals for the period of 2003 thru 2007.
Non-financial
- Create a strong brand presence of Sport City Beer in the cities and surrounding geographic areas that support NFL franchises.
- Reach licensing agreements with the local NFL franchises to use team logos and colors to promote the beer products produced fore their market. ...
- Develop and foster rivalries between beer brands to reflect rivalries of NFL teams.
- Utilize existing wholesaler distribution network to get specialty beer to the shelf before game day.
- Promote opponent’s specialty beer in competing city highlight rivalry and create competitive good will. ...
- Sell beer nationwide during Super Bowl week for the teams that make the Super Bowl.
- Produce product to coincide with the NFL football season. ... To sell 2 units of Sport City beer for every seat in the teams stadium for every game during the first year of operation. ... The beer will be sold throughout the city, but we will base our sales projections on stadium seat capacity. ... Pay annual license fee to local NFL franchise at $250,000 per team.
Core Competencies and Competitive Advantage
Sports City Beer is a wholly owned subsidiary of Miller Brewing Company, the second largest brewer of beer in the United States. Miller currently produces 50 different brands of beer in over 100 countries. ... These facilities are located near each of the NFL franchise cities and distribution routes already exist to Miller’s wholesaler network established to service these areas of the country.
The NFL has 32 franchises and Sports City Beer can be packaged for each city and distributed without over taxing one facility. Here is a breakdown of the distribution facilities and the NFL cities they can service.
Miller Distribution Facility Location NFL Franchise Served
Milwaukee, WI Indianapolis
Kansas City
Chicago
Detroit
Green Bay
St. Louis
Chippewa Falls, WI
(Leinenkugel Brewing Company) Cincinnati
Cleveland
Minnesota
Trenton, OH Buffalo
New England
New York
Pittsburgh
Philadelphia
Eden, NC Miami
Baltimore
Washington DC
Charlotte
Albany, GA Jacksonville
Tennessee
Atlanta
Tampa Bay
Fort Worth, TX Houston
Dallas
New Orleans
Irwindale, CA Oakland
San Diego
Phoenix
San Francisco
Tumwater, WA Denver
Seattle
Miller Brewing Company currently produces 50 different brands of beer and has shown they have the technical know how and facilities to produce small batches of beer. Sports City Beer will be able to leverage Miller’s production capacity to achieve lower production costs than a microbrewery. ...
Miller also possesses strategic relationships with large advertising agencies to help in establishing a common theme to be delivered in each of the NFL cities to promote Sports City Beer products. Sports City Beer will be able to use this message and utilize local advertising agencies to tailor the message to appeal to the local consumer and sports fan.
Miller Brewing held the license as the official beer of the NFL for 18 years. Recently they lost this endorsement to the Adolph Coors Company, but Miller has intimate knowledge of the NFL’s sports fan beer buying behaviors. Under the Sport City Beer label they can exploit this knowledge to build a solid reputation in the communities as a caring partner and create a solid brand image for their products.
Sports City Beer can implement a market segmentation strategy by understanding the local demographics of each market and prepare a product that meets the tastes of the community. By utilizing a product specialization strategy, Sports City Beer can not only identify the type of beer needed in the community, but can create a fun loving image of its products as being the premium beer of choice to be served at a football party, whether at the game, in a Pub or at home. This customization concept will ultimately lead to brand recognition and brand loyalty and create a competitive advantage for Sports City Beer because the loyalty the consumer has to the NFL team can be transferred to the product.
Sports City Beer will rely on product variant segmentation by not trying to sub-plant the existing beer guzzling habits of the football fan, but appeal to a small segment of the market that enjoy micro-brewed beer that offers more body, a richer taste and is unique. ... Sports City Beer does not intend to compete with the national beer companies, but with the specialty companies who offer a unique product for its market.
Sports City Beer does not need to develop a distribution network because it can use the network established by Miller. ... The marketing time line is six months, running from August through January. By ceasing the production of the team specific beer product in the off season it creates a seasonal buying behavior because of the relative scarcity of the product. ... Over time, we hope to establish a sense of anticipation for Sports City Beer products when the football season starts. People will be anxious for the beer to become available because they have been without it for six months. The scarcity of the product will justify the premium price the company will charge and create the perception that Sports City Beer is truly a microbrewery creating a product just for the specific NFL city.
Approximate Word count = 5994
Approximate Pages = 24
(250 words per page double spaced)
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