Final Project CB 2014

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    07-Aug-2015

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  1. 1. Andrew Thuleen Robbie Spah Bryan Schimitz Ian Thatcher
  2. 2. TABLE OF CONTENTS Background................................................................................. 3 Store History ............................................................................. 3 Store Atmosphere.............................................................................3 Store Layout ..............................................................................4 Store Front................................................................................6 Store Location ......................................................................................6 Craft Brewing Scene in Duluth..............................................................................7 Target Market .....................................................................................8. Menu ..........................................................................................12 Competition .......................................................................................13 Store Positioning.....................................................................................14 Methods ............................................................................................15 Basic Observations ......................................................................................16 Customers ...............................................................................................16 Time Spent in Store ..........................................................................................16 Types of Purchases ..........................................................................................17 Store Patterns..............................................................................................18 Sales Interactions............................................................................................18 Advertisements.............................................................................................20 Recommendations .................................................................................21 Recommendation#1.................................................... Recommendation#2:.............................................. Recommendation#3:.................................................. Recommendation#4:................................................................ Recommendation#5:................................................. Recommendation#6:............................................ Recommendation#7:.................................................... Recommendation#8:................................................ Appendix A: Appendix B................................................................ Appendix C: Appendix D:. Appendix E: Appendix F: Bibliography: .....................................................................................
  3. 3. BACKGROUND Store History The history of Carmodys Irish Pub and Brewing began when the Carmody family immigrated from West Ireland. Maggie Carmody and her husband, Michael Gleeson, opened a small tavern in the West End of Duluth. They also founded the Peoples Brewing Company and owned a hotel in the area. Maggie and Michael continued these operations until Michael passed away in 1918. Their grandson, Ed, continued in the family business by opening Carmodys Irish Pub and Brewing a little over five years ago. Ed opened the pub in a former livery stable, and it has evolved into a meeting place where you can hear live music and try high quality handcrafted beers. Store Atmosphere Through our observations as well as our customer interviews, one common trend was used to describe Carmodys: dark. Carmodys has very little light throughout the bar, something that sets it apart from other bars. While the darkness adds to the relaxing, Irish Pub feel, it is also a turn off for some people. Through our customer interviews, three of the customers we interviewed mentioned that although the darkness was very unique and added to the overall atmosphere it was unexpected and made it difficult to see. One of these customers had mentioned that this darkness had in fact caused them to refrain from purchasing items, especially the Carmodys beer listed on the chalkboard. They stated that because of the combination of dark lighting, small writing, and non-contrasting colors the names of the beers were very difficult to see. While the signage of the beers listed on the chalkboard is difficult to see, the material behind the sign seems to be even more distracting. With over 50 beers selections and even more liquors offered, the small bar space only makes it more cluttered.
  4. 4. Store Atmosphere Continued During customer interviews this was the comment that everyone had. Each interviewed customer stated that they felt overwhelmed with the amount of stuff on the wall behind the bar, and it was more of a distraction than adding to the atmosphere. Two-thirds of customers interviewed admitted having questions about what types of products were offered and refrained from asking because they were too overwhelmed. Customers also mentioned that the signage of other products that Carmodys has to offer was difficult to see due to the signage placed behind the bar. Store Layout As shown in Figure 1, Carmodys is laid out in a way that seems to split it in half. The front area of the bar includes three window booths, a bar area, and a few tables for guests to sit. The back area includes large tables along the wall across from the kitchen and stage. Further towards the restrooms in the back area there are four more tables and an ATM. The rear of the bar has a window through which the lake can be viewed.
  5. 5. Figure 1: Store layout of Carmodys
  6. 6. Storefront (Entrance) Carmodys is located at 308 East Superior Street in Duluth Minnesota. The building advertises itself using a large green sign with gold lettering. This sign lies against the building, making it easily seen from across the street. Three lights project over the face of the building to illuminate this sign at night. The remainder of the storefront is composed of four large windows and their entrance, and each window is used to display different neon beer signs, including a growlers to go sign, and a free parking sign. These windows also allow natural light to enter the establishment while allowing guests to look out. The door is located on the far right of the storefront and is removed from the street by a recess. Store Location Carmodys Irish Pub, one of the only true Irish pubs in northern MN, is located in downtown Duluth, MN on East Superior St overlooking Lake Superior as shown in Figure 2. Carmodys is located across the street from the Sheraton Hotel and the Lakewalk Inn on the lakeside and one of the many restaurants/bars on East Superior Street. This area of downtown is often flooded with traffic during the day with people commuting to and from work, and in the summer it is often busy with tourists. With downtown Duluth just a few blocks away and the proximity of popular lodging options for tourists, there is often a large amount of traffic in front of Carmodys on a daily basis. Figure 2: Map of downtown Duluth, Carmodys Irish Pub highlighted
  7. 7. Craft Brewing Scene in Duluth People have been brewing beer along the north shore ever since 1857. It began when Sidney Luce allowed a brewery to build on his property in an attempt to reinvigorate Duluths floundering economy. Within the past years the craft beer scene has been expanding rapidly, and there are currently ten breweries, which are shown in Figure 3. Each brewery is developing its own style, flavors, and brewing styles, and they vary in business models and production equipment. Their different personal stories are of growing interest to the craft beer community. These brewers provide tourists with a unique experience that they cannot find any other place in the world. Despite the differences the breweries have, they all share a common philosophy, make good beer with the best ingredients and shine the spotlight on the North Shore scene. The artistic flare and pride of craftsmanship from the brewers has fueled the evolution of the craft beer scene in Duluth, and it will undoubtedly continue to evolve. Another important aspect of the craft brewing scene in Duluth is the consumers of the beer. These people have a strong desire to learn more about the beer they are drinking and the people who are brewing the beer. The craft brewing scene in Duluth is embedded deep within the culture of the city, and the desire for craft beers continues to increase. Figure 3: Location and names of the North Shore craft beer scene
  8. 8. Target Market When asking Ed about his target market he gave two separate markets; the first being college students and young professionals (ages 21-30) and the second being established professionals (typically 40+). College Students and Young Professionals After talking to Ed, the age group of this target market falls within the range of 21-30 years of age. The reasoning behind this age demographic is because of the presence this age group has in the Duluth community and the growth of this segment. With just over 15,000 college students that attend the three major colleges in the area, college students have a significant impact on the local economy. Whether is it eating out with friends, going to bars on the weekends, or shopping at Miller Hill Mall, college students have a major impact on the local economy. The young professional community of Duluth is just as important to Carmodys success as the college students of Duluth. Similar to the college student population, the young professional population segment in Duluth only continues to expand as the city of Duluth as a whole continues to expand. According to Forbes Magazine, Duluth has a projected annual job growth of 2% for 2014 and has a cost of living that is 13% below the national average. These two factors alone make Duluth ideal for individuals just starting their careers.
  9. 9. College Students and Young Professionals Continued Through additional research using Simmons OneView, it was found that as a leisure activity 45% of this target market enjoys going to bars and nightclubs, 55% enjoy trying new food products, and 50% of them enjoy trying new drinks. In reference to drinking craft beer, this group is one of the largest growing segments. Within the age group of 21-30, 15% of consumers drink craft beer. This may not seem like a large segment, but it is in fact one of the largest growing age demographics in craft beer. This demographic is also the least likely to use radio as their main source of entertainment or news with only 12%. These people find their entertainment online rather than the radio. Additionally, these consumers are more likely to fall in the Variety on a Budget lifestyle segment meaning that they are very busy but money is a concern of theirs, so they are easily enticed by coupons. This customer demographic is not your stereotypical college and young professionals who live to party and look to hook-up; this demographic has much more sophisticated values. These college students and young professionals pride themselves on being identified more towards thinkers and separating themselves from the average stereotype of what everyone else seems to be doing. What this means is that this customer set enjoy discussing more complex, important topics than just how much they drank the night before. You should not be surprised to find these customers engaged in a discussion about the economy, government or even cultural issues. Carmodys offers a place for these customers to engage in these types of conversations in a quiet atmosphere with others while enjoying their love for craft beer. These customers are also extremely involved in local activities such as local music and the local craft brewing industry. Rather than drinking beer to get drunk, these customers enjoy learning about the art of craft brewing and love to support their local breweries. Social media is very important to these customers and will likely have a high level of influence on their decisions. As of September 2013, 90% of people in this demographic use social media (Pew Internet Project, 2013). Whether it is liking a page on Facebook or connecting with a friend, staying connected is of high value to this market and they will often look to a social media website for reference.
  10. 10. College Students and Young Professionals Continued The decision making processes for this customer is mostly dependent on their friends and their social circles. When trying to make a decision the first consideration that is made is both what their friends are doing and what their friends will think of their decision. The first step of their processes is to check any social media sites their friends may be posting gain any insight as to what may be going on that evening. The next step of their decision making process is to consider how much it will cost them. These individuals are likely low on money and so the price of their actions will have to be taken into consideration. However, although they are low on money, this customer base will often pay more for things that they value. Although Carmodys is on the higher end of the scale in terms of price, these consumers choose Carmodys because the quality of the craft beer as well as the rich atmosphere. The last step in the decision making process for these customer is how it will benefit them. As stated before, these customers enjoy discussing complex issues and through these discussions often learn. Carmodys not only allows these customers to relax and meet with friends, but through rich conversation these customers are able to learn new things. This type of benefit is what these customers seek in their decision making process. Established Professionals This segment of Carmodys target market is often over the age of 40 and typically has an established career and family. Carmodys is a place for these customers to fulfill a multitude of needs. The first need that Carmodys fulfills is that it provides a place to unwind and relax from the stresses of life. With an established career and family these consumers are able to spend some of their free time at Carmodys while they unwind. Whether it is stopping in for a drink on their way home from work or participating in the weekly pub quiz on Sunday nights, Carmodys is a place to escape for an hour or two a week for many of these customers. The second need that Carmodys fills for this target market is craft beers. The exclusivity of Carmodys craft beer is appealing to this group, and these customers truly appreciate and enjoy the craft of Carmodys beer. Unlike the mass-produced beers that can be found all throughout the country at nearly every bar, Carmodys brew is unique to Carmodys. This exclusivity is something t...