Andrew ThuleenRobbie SpahBryan SchimitzIan Thatcher

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: .....................................................................................

BACKGROUND

Store HistoryThe history of Carmody’s 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 People’s 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 Carmody’s 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 AtmosphereThrough our observations as well as our customer interviews, one common trend was used to describe Carmody’s: dark. Carmody’s 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 Carmody’s 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.

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 Carmody’s has to offer was difficult to see due to the signage placed behind the bar.

Store LayoutAs shown in Figure 1, Carmody’s 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.

Figure 1: Store layout of Carmody’s

Storefront (Entrance) Carmody’s 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 LocationCarmody’s 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. Carmody’s 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 Carmody’s on a daily basis. Figure 2: Map of downtown Duluth,

Carmody’s Irish Pub highlighted

Craft Brewing Scene in DuluthPeople 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 Duluth’s 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

Target MarketWhen 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 ProfessionalsAfter 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 Carmody’s 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.

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. Carmody’s 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.

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 Carmody’s is on the higher end of the scale in terms of price, these consumers choose Carmody’s 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. Carmody’s 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 ProfessionalsThis segment of Carmody’s target market is often over the age of 40 and typically has an established career and family. Carmody’s is a place for these customers to fulfill a multitude of needs. The first need that Carmody’s 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 Carmody’s 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, Carmody’s is a place to escape for an hour or two a week for many of these customers. The second need that Carmody’s fills for this target market is craft beers. The exclusivity of Carmody’s craft beer is appealing to this group, and these customers truly appreciate and enjoy the craft of Carmody’s beer. Unlike the mass-produced beers that can be found all throughout the country at nearly every bar, Carmody’s brew is unique to Carmody’s. This exclusivity is something that these customers enjoy and appreciate.

Established Professionals Continued…During the decision making process, the first step for these customers is often based on the needs of others. Whether it is the needs of the people depending on them at work or any obligations that they may have to fulfill at home, these customers are often very busy with other responsibilities. Their first step in the decision making process is often based on whether or not they have the time to let themselves have a drink or two at Carmody’s. The second step for these customers is based on the time of the day and the potential customers that may be at Carmody’s at that given time. These customers choose Carmody’s because it is not often filled with rowdy college students until late at night. When these customers are thinking of going to Carmody’s, they think of the type of customers that will be present; depending on the time, they may hesitate to go.

Using Simmons Oneview additional insight was gained for this target market. Within the age group of 40+ years, 66% of these customers state that they like to try new foods and drinks. This age group also has the largest relative portion of people who state that radio is their main source of entertainment with just over 60%. An alternative source of entertainment used by this market is social media. Social Media is used by 78% of adults between 30 and 49 years of age and 65% of adults between 50 and 64 as of September 2013 (Pew Internet Project, 2013). One area where this target market seems to lack in comparison to the other target market is in craft beers. Only 12% of people 40+ drink craft beer, 3% below the 21-30 year age group. These customers are also most likely to fall within the “Reformed Traditionals” segmentation meaning that they realize that they should make healthier choices in food rather than letting convenience be the guiding force. Marketing implications to this may be that these types of customers are not likely to be highly influenced with coupons but more about nutritional value of the food and a description of what may be in the food that they are consuming.

Menu ItemsCarmody’s has a large menu, shown below , that contains a variety of food and beer to appeal to a wide customer base. The appetizers available range from very classic bar foods such as nachos and pretzels, to some things you would not expect to find in an Irish pub like bruschetta and hummus. There are also two sections on their menu that you may be surprised to find at an Irish pub: hot dog and pizza sections. These sections of the menu allow for customers to put their own personal twist on the food they are ordering for a reasonable price. There is also a sandwich and wraps section on their menu. This section allows for customers to get food that they are familiar and comfortable with. Carmody’s also provides vegetarian options too. Many of their sandwiches and wraps accommodate for a customer that may not eat meat. For the customers looking for traditional Irish food, there is a section labeled “pub fare.” Here customers are offered some of the most traditional pub foods such as, bangers and mash, an open faced beef sandwich, and a pasty and mashed potatoes. As shown if the far right picture, the largest section of their menu is devoted to beer. Here they list all of the beers they offer on tap or in a bottle. In this section, they list the beers brewed at Carmody’s, the imported beers, and beers brewed locally and regionally. They also have Irish tea and Irish blend coffee offered on their menu as well for the non-beer drinkers.

CompetitionBeing an Irish pub, Carmody’s instantly differentiates it from other hangouts, such as Buffalo Wild Wings, Grandma’s, or other downtown bars. The absence of televisions turns away many potential customers, however, it also is very attractive to those who enjoy flowing conversations. Craft beer, Carmody’s best profit margin item, is also brewed and served in house. This brings in a different type of customer, and thus a different type of competition.

From interviews with both Ed, and Carmody’s customers, we determined their main competition to be Dubh-Linn’s, Sir Ben’s, Fitger’s, Canal Park Brewery, and 7 West Tap House. Dubh-Linn’s and Sir Ben’s are both Irish Pubs, so they compete over the customers who enjoy the feel of Irish music and good conversation. With the rapid rise in craft beer consumption, bars are racing to get different craft beers in their establishment. Duluth has a law that states, anyone who serves craft beer must also brew craft beer, in-house. Ed started brewing in the basement of Carmody’s, and was one of the very first bars in Duluth to start brewing. He even went as far as assisting other local bars as they began brewing their own beer, including one of his competitors, Canal Park Brewing Company. However, Ed’s experience gained in being one of the first breweries around, as well as the knowledge he has gained from helping other brewers, give him a great competitive advantage in quality when it comes to brewing great batches every time. Walking into the store, almost everyone is greeted immediately. From there, many of them carry on personable conversations. There are a few things we liked from some of our competitors that made their way to our recommendations. When you sit at the bar, or anywhere within viewing area of the bar at Burrito Union, or Canal Park Brewing Co., you’re able to easily read their large chalkboards. Canal Park Brewery’s chalkboard contains a little bit of information on the beers, and lists them according to alcohol content. Burrito Union’s beer choices are each written in a more vibrant, easily visible color, and are also written in a more appealing font. When visiting Dubh-Linn’s on a Friday night, everywhere you look tables are filled with students eating peanuts and socializing. This small snack fills that food craving that beer drinkers drink get late at night.

Store PositioningOne of the keys to business, as we learned in class, is understanding that you can only achieve two of the following: price, quality, and service. In our initial interview with Ed, he stated that the two he prides Carmody’s in is quality and service. While the price isn’t much higher than many of it’s competitors, it was easy to see Ed took pride in the service that his customers receive. From the moment a consumer walks in, he wants them to feel welcomed, and to know that he actually cares about his customers. Quality is something that Ed has spent years perfecting. In Ed’s drive for quality, he has made it a point to brew the best quality beer that he can offer. Being one of the longest craft beer brewers in town, he has had the chance to perfect his recipes over a number of years and is now look upon as someone to turn to if one has questions about craft beer.

When comparing Carmody’s to it’s competitors, we think that Carmody’s has unmatched service. Canal Park Brewery Co. and Fitger’s each have above average service as well, but Ed making it a point to get to know each of his customers gives Carmody’s a slight edge. Dubh-Linn’s gives up service to keep its prices relatively low. The low pricing for Dubh-Linn’s makes it an ideal destination for college students who are also looking to keep costs down. Although Ed has superior brewing knowledge to most others in Duluth, you probably wouldn’t know it when walking into the store. Canal Park Brewery Co. does a great job showing their customers everything about the process of how they go about brewing their beer by offering tours to its customers and having their brewery visible to customers during all hours of business. These types of offerings may give the illusion that Canal Park Brewery may provide the best quality beer, but in reality, Ed taught them much of what they know. Carmody’s has positioned itself to be a great bar for those value quality and service.

When deciding what to observe, our focus was on two main areas; purchasing behavior of each customer and store experience for each customer. We decided to focus on these two topics to make sure that we would gain meaningful insight in order to offer quality recommendations. In order to make quality recommendations we wanted to gain both qualitative and quantitative information. The quantitative information that we recorded, customer purchasing behavior, was recorded on a spreadsheet so that we could have running total after each observation. Our qualitative information was recorded on a separate sheet and was shared at each group meeting.

In addition to our observations, we also conducted three interviews with customers using either the laddering technique or the decision making technique. These two techniques were used to gain useful insight on how customers make decisions as well as how Carmody’s can better meet those customers needs.

METHODS

Our strategy for observing Carmody’s Irish Pub was to do most of the observations individually to fulfill the minimum of 10 hours for each group member. We decided to do our observations separately so that we could ensure that we were able to cover all business hours on different days. Each group member observed for roughly two hours at a time to make note of the type of customers as well as their different buying behavior. The buying behavior of customers that was tracked included the date of the observation, time, age range of the customer, beer choice, whether they purchased merchandise or food, time spent in the establishment, and whether they got a refill or not. To discuss our observations we would meet as a group once a week after class to compare our findings and make note of important trends.

BASIC OBSERVATIONS

Customers (Table 1)After the initial interview with Ed, two specific target markets were identified: 21-30 years of age and 40 years of age or older. Of the 60 customers that were observed throughout the semester, just over 55% of the customers fell in the age group of 21-30 years old. Additionally, of the observed customers, roughly 25% of the customers made up the other target market of 40 years or older. Another market that Ed eluded to during our initial interview was females, especially those in the 21-30 years of age group. Ed’s reasoning for attracting females was based solely on the fact that with more females, more males will follow. Females only made up 25% of the total customers, and only 40% of these female customers were in the 21-30 age group. In addition to age, we also tracked whether the customers were coming in were locals or visitors. Based on our observations, roughly 25% of the customers that were observed seemed to be visitors of Duluth. Lastly we identified the age group who seems to be the largest consumers. The largest group, 21-30 age group, had the highest average number of drinks per store visit with two drinks.

Time Spent in the StoreDuring observations, the first thing noted was the amount of time each individual spent in the store. Of all the customers that spend time in Carmody’s, the 40-49 age group spends the largest amount of time in Carmody’s. In reference to Table 1, the 40-49 year age group spends nearly 15 more minutes than an average Carmody’s customer.

Years of Age

% of Total Customers

Total % of Male

Total % of Female

Total % of Local

Total % of Visiting

Average of Length of Time in Carmody's

Average Number of Drinks

21-30 yr 56% 63% 39% 60% 40% 84 min 2.0

31-40 yr 17% 12% 31.3% 70% 30% 68 min 1.6

41-50 yr 25% 23% 31.3% 70% 30% 97 min 1.9

50+ yr 2% 2% 0.0% 100% 0% 60 min 2.0

Table 1: Customer Observation Summary

Types of PurchasesAlthough the 40-50 age group is spending the largest amount of time in the bar, they are not purchasing the items that have the highest profit margins for Carmody’s. Only 35% of the total observed customers purchase Carmody’s beer. Of the 35% of the observed customers who purchase Carmody’s Beer, 80% of these customers are 21-30 and only 5% of these customers are 41-50 years of age, shown in Chart 1. All but two of the observed customers purchased some form of alcoholic drink. Among those who purchased an alcoholic drink, the most common choice was a beer with only 40% of the beer being that brewed by Carmody’s. In the 21-30 year age group Carmody’s beer is very popular with 80% of sales falling in this area.

Carmody’s also offers food for its customers in addition to selling drinks. Of all the observed customers, only 22% of the customers ordered food. Displayed in Chart 2, nearly 70% of the customers that ordered food were in the 21-30 age range. Although Carmody’s had food for purchase, information from our interviews indicated that customers are still not satisfied. Two-thirds customers interviewed stated that if Carmody’s offered some sort of free snack in addition to their purchase they would be more likely stay longer.

Chart 2: Age distribution of customers who purchased food

Chart 1: Age distribution of customers who purchased Carmody’s beer

Store PatternsAnother observation that was made was the path of each customer as they entered the store. When customers entered the store, 80% of the customers sat at either the bar or in the booths near the windows in the front of the store. Although many customers sat at the bar or the front booths, a majority of these customers were not confident in their decisions. Of the customers that walked into the store, close to 60% of them spent some amount of time waiting in the middle of the store deciding where to sit. After an interview with one customer it was determined that the reasoning for spending time deciding where to sit was because, they “felt almost unwelcomed and were confused about where to sit”. Of the customers that sat at the bar, roughly 90% of them would talk with others at the bar or with the employee working. Many of the customers who sat at the bar seemed to be locals who are frequent customers, and many knew the employees or others at the bar by name. The customers who sat at the booths were almost always in groups of 2-3. These customers would sometimes know others in the bar but would keep to themselves as a group. During observations, one area that was underutilized was the back area by the stage that is primarily used for when there is live music. Throughout the observations only a couple of customers used the back space of the bar for some place to sit unless it was later at night. This section of the store is very large and contains a great deal of underutilized space that could be used for something else while not in use for live music.

Sales InteractionsAlthough there is a lack of lighting throughout the store, Carmody’s biggest attraction is the welcoming staff that makes customers feel at home. Throughout our observations, it was determined that on average, the entering customer was greeted by an employee in no more than 10 seconds within entering the store. All of the customers interviewed stated that having the employees welcoming them as they walked into the store made them feel more comfortable. These customers went on to say that feeling more comfortable and welcomed in the store made them more likely to purchase something, especially something unique to Carmody’s. In addition to being greeted, each customer was told about current specials, some foods that were being served at the time, and shown the chalkboard with the list of Carmody beers, which is shown in Figure 4. When discussing the beers that are brewed by Carmody’s, on average, each employee spent 20 to 45 seconds explaining the menu to the customer.

Sales Interactions Contiuned…During this interaction, employees would describe the beer and set expectations of what the beer will taste like. If the customer had any questions the employee would answer them and if the customer asked, free beer samples were given. However through observations, only 1/10 customers would ask for a sample of the beer. Through customer interviews, we learned that customers were not aware that free samples were actually available and if they had known they would have tried the beer before they purchased it. Although each customer was greeted, welcomed upon arrival, and told the daily specials, only 2/5 customers were given menus. Our customer interviews further indicated that not giving every customer a menu is a missed opportunity for Carmody’s. Interviews stated that if each customer were given a menu they would be more likely to purchase food. Even though some customers were not given menus they still asked if menus were available. Another popular finding through our interviews was the fact that customers were disappointed that there were not snacks, such as popcorn or peanuts, that were available for free. All of the customers said that they would be more likely to spend additional time at Carmody’s and come to Carmody’s more often.

Figure 4: Listing of Carmody’s home brews

Advertisement Carmody’s does a fairly poor job of advertising both in and out of the store. In the store, Carmody’s makes attempts at having advertisements of its products to encourage customer to purchase. Carmody’s main attraction, the bar, is cluttered with countless bottles of liquor and beers that are offered on tap. Among all of this clutter is Carmody’s attempt at advertising its growlers and t-shirts for sale with two pieces of eliminated signs that do not stand out to the average customer. The sign for the growlers is seen in Figure 5. Customer interviews indicated that two out of the three customers don’t even notice these advertisements, and until it was pointed out, had no idea that growlers or t-shirts were sold. Outside of the store, advertisement seems to be a waste of opportunities. During the initial interview with Ed we were told that the only type of advertisement that is done is through the KUMD Radio station. Ed also stated that he currently does not have any sort of advertisement with any of the hotels in the area. With visiting customers making up one-third of the customers, this may be an opportunity for improvement.

Figure 5: Carmody’s advertisement for growlers

RECOMMENDATIONS

Recommendation #1: Outdoor signageCurrent Status:

Recommendation:Justification:

Carmody’sEntrance

Before: entrance is difficult to find After: sign identifies entrance

Recommendation #2: Change the chalkboard so it is easier to see

Current Status:The chalkboard sign of Carmody’s listings of their beers is not drawing the customer’s attention like it should. Customers’ attention is not always caught by the sign, and when the customer’s attention is caught, customers struggle to read it. The names of the beers are handwritten in chalk which makes them difficult to see. The board is often hard to read because the bright pastel colors used to write the name’s of the beer do not contrast well with the green color of the board. Another problem we noticed with the board is that it is dull, poorly lit, and often gets lost behind the clutter of the bar. Additionally, the board may get lost behind the clutter because it is simply too small and does not stand out from its background. Lastly, the names of the beers written on the board are not only small, but thin, making it very difficult for the customers to see. All of these problems need to be addressed for the chalkboard to be utilized to its full potential.

Recommendation:We recommend increasing the size of the chalkboard and changing the color of the board from green to black. Increasing the size of the board would make it the focal point of the bar and by doing so, it would also draw attention away from the cluttered background of the bottles and beers on tap. Changing the color of the board from green to black would make reading the board easier for the customers in the dark atmosphere due to the contrast in colors of writing and the board. We also want to make it aware to customers that the seasonal beers will only be available for a limited time. We will do this by simply writing available for a limited time only next to the name of the beer. These recommendations should help bring more attentions to Carmody’s house brewed beers, and in return make the bar more money.

Recommendation #2 Continued…Justification:Aging EyesIn Paco Underhill’s book Why We Buy he explains how a normal human’s eyesight begins to weaken as they get older, normally around age forty (Underhill pg. 130). This is an important aspect for us to consider because nearly 40% of Carmody’s customer base is at least 40 years old. Paco Underhill goes on to explain three main ocular events take place as customers get older. The first is the lens of the eye becomes more rigid and the muscles holding it get weaker; this makes it harder to focus on smaller font sizes (Underhill pg. 130). By making the chalkboard bigger it will allow the bartender to write the names of Carmody’s brewed beers bigger and with lines that are more bold. When paired together, these two changes will make it easier for Carmody’s older customers to see. The second ocular event that occurs is the cornea begins to yellow, which changes how one perceives color (Underhill pg. 130). The yellowing of the cornea causes things to seem more yellow making colors to blend. By making the chalkboard black, it will allow there to be more contrast between the board and the chalk which will make it easier for the older customers to see. Lastly, Underhill talks about is how less light reaches ones retina, and this means that the world looks dimmer to the customer (Underhill pg. 130). This will be difficult to accommodate for since Carmody’s lacks lighting throughout the entire bar and the addition of more lights could take away the atmosphere that so many customers enjoy. We look to address this problem with a recommendation of putting signs on the table and at the bar with large fonts that give customers information about the beers on the chalkboard. In addition, Carmody’s could add one additional spotlight to the bar to increase the amount of light displayed on the board.

Recommendation #2 Continued…Size, contrast and intensity In Babin and Harris’ textbook CB, they explain how consumers are constantly bombarded by stimuli, and they cannot devote their attention to all of the stimulation around them (Babin and Harris pg. 53). Since it is so hard to attract consumer’s attention, Babbin and Harris have identified six features that marketers can use to draw more attention to their products. These six features are: intensity of the stimuli, contrast, movement, surprising stimuli, size of the stimuli, and involvement (Babin and Harris pg. 53). By increasing the size of the chalkboard and making it black we will use three of these features to draw the customer’s attention to the board. First we will use the intensity of the stimuli feature to draw more attention. We want to make the chalkboard stand out by using more vivid colors and designs.This will help draw people’s attention to the chalkboard because they are more inclined to pay attention to strong, bold stimuli (Babin and Harris pg. 53). The new black color of the board will contrast better with bright pastel colors of the chalk used to write the names of the beers, making it easier for the customers to notice. The new larger chalkboard will also draw more attention due to the fact that larger stimuli the more likely to attract customer’s attention (Babin and Harris pg. 53). The new sign will be the largest thing behind the bar so in theory, it will draw most of the customer’s attention. These stimuli will help draw customer’s attention towards the chalkboard and away from any other stimuli in the bar. These three features are important to implement because all three of the customers we interviewed expressed difficulty focusing on the chalkboard as well as reading it.

Figure and groundBabin and Harris also go on to explain the concept of figure and ground. They define a figure as the object that is intended to capture a person’s attention, and the ground as the background of the message (Babin and Harris pg. 66). Currently, we feel that the clutter of the bar is drawing more attention than the chalkboard. Our interviewees confirmed our suspicions when they explained to us that they noticed the clutter of the bar (the ground) more than they noticed the the board itself (the figure). By making the chalkboard bigger and changing the color from green to black, the chalkboard will become the focal point of the bar and help capture more of the customer’s attention. As a result the board will become the figure and all of the clutter will become the ground. This will cause more people to notice Carmody’s beers and as a result sales should increase.

Recommendation #2 Continued…ScarcityBy informing people that the seasonal beers will only be available for a limited time uses the scarcity principle from Cialdini’s Influence book. The scarcity principle states that people assign more value to opportunities when they are less available (Cialdini pg. 225). The scarcity principle works because of two reasons. The first being that things that are difficult to attain are normally more valuable (Cialdini pg. 225). The second reason why the scarcity principle works is because as things become less accessible, we lose freedoms (Cialdini pg. 225). This loss of freedoms causes consumers to want the product more than before (Cialdini pg. 225). The scarcity principle will work for Carmody’s because saying the seasonal beers will only be available for a limited time will remove freedoms and cause the customers to want the beer more than they normally would. As a result customers will purchase these limited items more often as the supply is available, thus Carmody’s will in turn sell a greater amount of seasonal beers.

Carmody’s

-Agnes Irish Red

-Scalon IPA

-Tipplers Golden

-Fammine 47 Stout

Before: chalkboard is difficult for customers to readAfter: chalkboard visible and easier to read

Recommendation #3: Interaction with customers and awareness of menusCurrent Status:Through our observations, only 22% of customers ordered food, this may be due to the fact that some customers we talked to were not even aware that Carmody’s offered food. The bartenders and managers spend a lot of time talking to the customers, but most of the time it is often about other topics other than Carmody’s and its products. The menus are kept at the far end of the bar and are somewhat hidden. The menu is filled with food and beer options that appeal to a wide variety of customers. In order to get a menu, the customer either has to ask for one, or they have to get it themselves. This could upset the customers and cause them to have a negative perception of Carmody’s as a whole.

Recommendation:We recommend that the bartenders and servers offer menus to any customer that sits down at a table or the bar. When they offer the menu to the customer the bartender or server can make recommendations, explain the daily specials, and answer any questions the customers may have. This will demonstrate to the customer that Carmody does in fact serve food, and it will allow customers the opportunity ask any questions they may have about any of the products. In doing so Carmody’s is able to better manage the expectations of the customers and change any negative perceptions that these customers may have as early as possible in the customers time at Carmody’s.

Justification:Time, Real and PerceivedIn Paco Underhill’s book, Why We Buy he brings up the idea of time, and how marketers can either bend or stretch time accordingly to change the customer’s perception of time. He goes on to explain how a customer’s perceived waiting time goes down after an employee has initiated contact with them (Underhill pg. 190). By having a bartender or server greet the customer immediately after they sit down and offer a menu, it causes the customer’s perception of time to slow down. As a result, this will allow the customer to feel more comfortable and spend more time in the bar; and the longer a customer is willing to stay in the bar, the more he or she will be willing to buy (Underhill pg. 33). This is important because during our observations we noticed the more the bartender or manager, specifically Ed, interacted with a group of customers, the longer those customers stayed.

Recommendation #3: Continued…We also noticed that people were more likely to order multiple drinks if they stayed longer than an hour and a half. What this means for Carmody’s is that if the staff can interact with the customers more frequently and earlier upon arrival, customers are more likely to stay longer and spend more money.

AuthorityGiving the customers a menu and making recommendations on what to try is a perfect example of the authority principal from the Influence book by Robert Cialdini. The authority principle states that a person is more willing to do something that a person they see as an authority figure tells them to do. Cialdini explains how there are three symbols of authority that Carmody could use to show authority (Cialdini pg. 184). The three symbols are titles, clothes, and trappings (Cialdini pg. 184). Titles are considered to be the both the easiest and most difficult symbol of authority to acquire (Cialdini pg. 184). This is because titles normally take years of work to achieve, such as a doctor, yet it is possible for someone to put in no effort to adopt a simple label, such as a con artist (Cialdini, 184). Carmody’s could use this principle by having their bartenders make recommendations on beer or food options as they greet customers. In theory this should make customers more comfortable buying food and drinks because they see the bartenders as someone they can trust or an authoritative figure. Bartenders are seen as an authoritative figure because they are not only seen as experts of craft beer but they are in power of the bar at that period of time.

Recommendation #4: Table standsCurrent Status:Currently there is no information on the tables or on the menu providing a description of the beers brewed in-house. If a customer wanted any information regarding any of the Carmody brewed beer, they would have to ask a bartender or another employee. The result of not having any descriptions of the in-house beers is that customers have no way to know what to expect when ordering their drink. With no way to set expectations, inaccurate expectations may be developed by the customer. With the development of an inaccurate expectation, the customer may become disappointed and develop a negative perception of not only that beer but Carmody’s as a whole.

Recommendation:We recommend that Carmody’s develop a table stand that provides customers with information regarding the beer they brew in-house. The table stands will explain how the beer is made, what the customer can expect the beer to taste like, and it will identify what beers are popular among guests. In doing so the customer’s expectations of the beer that they are ordering will be better managed. In addition, the stands will also recommend foods that pair well with each of Carmody’s in-house beers .The pairing of foods and beers will not only inform customers what may go well with their selection of beer but may encourage customers to purchase a food item as well. The table stands will also include a section of “best sellers” or “fan favorites” to show the customers what the popular food and drink items are among regulars.

Justification:Setting ExpectationsBy placing table stands that explain what all of the beers taste like, customers’ expectations are more accurately set. Babin and Harris explain post-consumption reactions, and one major theory they discuss is the expectancy/disconfirmation theory. The expectancy/disconfirmation theory is a satisfaction formation theory that proposes that consumers use expectations as a benchmark against which performance perceptions are judged (Babin and Harris, 253). This means that consumers use their expectations to set benchmarks, and if their expectations are exceeded they will have a positive image of the bar.

Recommendation #4: Continued…If the customers expectations fall short, they may develop a negative perception of the bar. By developing table stands that give a detailed description of what the beers should taste like, Carmody’s is setting reasonable expectations for customers about the beer that they offer. In giving customers information on what the beer will taste like, they will be able to order something they think they will like, and stay away from things they think they would not enjoy as much. The theory also states that a customer is more likely to enjoy a product if they have a positive perception of the product before they order it. This reiterates the support for providing the table stands for customers at Carmody’s.

Time to Kill and Mere Exposure EffectAnother reason for including a descriptive table stand is because people are the most susceptible to advertisement when they are waiting around. As mentioned in class, this time when a customer is sitting and waiting is called time to kill. When customers are sitting at the table waiting to be served, they will be willing to read anything that may help the time pass by. While reading through the table stand, these customers are also being continually exposed to Carmody’s in-house beers. This continued exposure will also help these customers become more familiarized with the products and eventually become more likely to choose these product in the future. This idea was mentioned in class and is know as the mere exposure effect. The mere exposure effect states that people are more favorable, or more likely to choose stimuli, or products, that they are more familiar with. This works in Carmody’s advantage because as people read through the table stands, they are exposing themselves to Carmody’s brewed beers. Over time, these customers, if exposed enough, will likely choose Carmody’s beer over the other offerings. This is extremely important because Carmody’s in-house beers offer the highest profit margins and the more that is sold, the greater the profit.

Recommendation #4: Continued…Social ProofHighlighting particular items that are considered to be “best sellers” or “fan favorites” would be a good way to use the social proof principal from Cialdini’s Influence book. The social proof principal say that people tend to look to others to see what is appropriate (Cialdini pg. 99). Customers would be more inclined to buy products that are labeled “fan favorites” or “best sellers” because it shows them that is what their peers are buying. This is important to Carmody’s customers, especially the 21-30 market, because their peers have a large impact of their decisions. When these customers are looking to make a decision they are likely to take the “fan favorites” in to considerations because they value what their peers think. In choosing a “best seller” or “fan favorite” these customers are able to select a beer that has been identified as “appropriate” by other customers.

Recommendation #5: Advertising opportunitiesCurrent Situation:Carmody’s does a very small amount of advertising to its current and potential customers. Carmody’s is missing out on opportunities to bring in new and attain current customers due to the lack of advertisements. Carmody’s currently runs radio advertisements through KUMD, but doing so does not seem to meet expectations.

Recommendation:Our recommendation is to use social media and Internet advertising to connect with customers rather than advertising through KUMD. As stated earlier in the target market section, both target markets for Carmody’s are seeing a decline in the use of radio and a dramatic increase in the use of social media. This increase in social media use is seen especially in the 40 year and older demographic. This group is one of the largest growing segments of social media, especially Facebook. Rather than using resources to advertise via KUMD to customers, Carmody’s can use those resources to advertise to customers through social media.

Recommendation #5: Continued…Justification:

Recommendation #6: Free snacksCurrent Status:Carmody’s currently does not offer any sort of free snacks or samples. Upon request, you may be given a sample of one of their craft beers, but there is no signage to hint to customers that a small sample is an option before purchase. Aside from beer samples, a few of Carmody’s competitors offer free snacks to those patronizing their bar. Something as small as popcorn, or even peanuts, like Dubh-Linn’s is great for people who may be getting a little hungry while out drinking.

Recommendation:We would like to add a basket of peanuts to each table, as well as a few baskets around the bar. This would give customers something to snack on before they order, and while they waited on their food or drink. We would also like to add two old fashioned barrels, filled with peanuts to the store. One would be placed at the entrance, and the other would be placed at the back of the bar.

Justification:ObservationsThrough our observations, we realized that almost everyone who enters the store stops almost immediately. Placing peanuts near the door in an antique barrel would catch the attention of anyone passing it. When customers enter the store and immediately grab peanuts, it increases their likelihood of making a purchase. This is caused by a rule that has been imbedded in human DNA and has been crucial to our evolution called reciprocity. The Influence book talks about reciprocity, and how the rule can trigger unequal exchanges. It says often times giving up a small gift initially will cause the other party in the exchange to return the favor on a larger scale. While customers are at the bar drinking, they may return to the barrels to refill their basket of peanuts. Each time doing so they would feel further indebted to the bar and be more likely to buy a drink.

Peanuts are a great choice for the snack because of two main reasons: 1. they are a low cost item and 2. they often cause thirst, which would lead them to getting more to drink.

Recommendation #6: Continued…Our textbook talks about having the right environment and having the right elements to fit in the atmosphere (Harris and Babin pg. 204). Having a good atmosphere can result in a competitive advantage for a business. Having good “fit” and “congruity” are the keys to an atmosphere. While any bar can provide people with a place to drink, Carmody’s wants you to feel as though you walked in from the streets of Dublin. From the Irish music playing, to the Irish flags hanging, adding old wooden barrels of peanuts would fit great with the current atmosphere.

Time to Kill Consumers who visit Carmody’s almost always have time to kill. Whether it’s because the bar is packed and they’re waiting on the bartender, or they ordered food and are waiting for it to be prepared, time to kill is a great time for Carmody’s to benefit from its customers. As we talked about in class, time to kill is a time when consumers are very vulnerable to being exposed to new information as they are looking for something to keep them busy. During these times consumers may be prone to trying things, and may grab peanuts, even if they don’t want them.

Social Proof“We view a behavior as correct in a given situation to the degree that we see others performing it.”(Cialdini pg.99) In general, we make fewer mistakes when acting similar to others, rather than when we branch out. This is both a positive and a negative for Carmody’s. If nobody is eating peanuts, then nobody will want to be the first to act different and grab those peanuts. We don’t think this will be a problem as one of Carmody’s target markets is college students, who through our interviews, we determined, have no problem in walking into the bar and grabbing a big basket of peanuts.

New store format with peanut barrels and table distribution

Recommendation #7: Spacing adjustmentCurrent Situation:Walking into Carmody’s during a busy time can be a bit chaotic. They have a few tables as you walk in directly on the right, across from the bar. The windows of the bar are aligned with booths, which are often quickly taken. As customers enter the restaurant and are greeted, they often stop to engage in conversation with the bartender. At busier times, this leads to a small pile of people near the door. After being greeted, they often choose a seat at the bar, near the door. The back of the bar is often empty.

Recommendation:We would like to remove one of the tables, if the peanut barrel recommendation is implemented and two tables if not, that are currently on the right side and move them to the backside of the bar. We also recommend the bartenders offer a seat as customers enter the bar. This would help keep the entry of the bar less cluttered, and assure the bartenders a chance to greet each group of people as they come in.

Justification:Social EnvironmentAs Ch.10 of the textbook states, the social environment in which people interact can play a large role in consumer behavior. The social environment is the consumers and the employees in a business. Crowding plays a big part in that environment. Page 207 explains the non-linear crowding has on consumers. “Consumers are not particularly attracted to an environment with no other consumers.” Carmody’s does a great job of portraying a good environment from the road. As the front booths and table are often the first ones filled, those passing by would get the impression that Carmody’s is a place to be. However, too big of a crowd has a negative effect on the social environment, because people do not want to be over crowded. Based on our observations, when a lot of customers entered at once, there was a group of people that would gather at the door, scanning the bar for a place to sit. This may cause those who look into the bar to think that its over populated, and they would walk right past..

Recommendation #7: Continued…Perception of TimeThe time a shopper spends waiting after an employee has initiated contact goes faster than time spent waiting before that interaction takes place (Underhill pg.190). Americans prefer to have a sense of order in line (Underhill pg.190). When people are crowded around the bar, it may cause time anxiety among the potential customers. By greeting and asking customers to have a seat, it will give customers a sense of relief in knowing that they have been acknowledged, and are in line to be helped. Millennials are known to be a very impatient generation. Their constant access to the internet has led them to being used to immediate gratification.

Social ProofAnother reason for the bartenders to suggest a seat to consumers is because of the social proof aspect. If the bartender offers a table further and the customers are instantly seated, other customers will follow in their footsteps. As our interviews showed us, many people weren’t aware that the back of the bar was an acceptable place to be seated.

Recommendation #8: SamplesCurrent Situation:Samples are available at Carmody’s, however; they don’t advertise that free samples are available. If you are looking at the craft beer list, you may be asked if you would like a sample, but if not, chances of being offered a sample are slim.

Recommendation:We recommend that bartenders offer samples to customers as soon as they sit down, or begin to look at the menu. As their home brews are their highest profit margin, we think Carmody’s needs to do a better job pushing them. It can be seen as friendly to offer them a sample as soon as they enter, and many people would have a hard time saying no. Many people aren’t used to craft beers and may be afraid to try them. A small sample would cost almost nothing and could earn a new craft beer customer. If customers order a domestic beer, bartenders could ask them if they would like to also get a sample of a beer they brew with similar characteristics to their choice domestic.

Recommendation #8: Continued…Justification:Outside influencesAs the craft beer market continues to rise (20% in 2013), Carmody’s need to do a better job pushing their home brews. As Ed stated in our interviews, he was one of the first in the area to start brewing and selling craft beer. The more people that he can get to try his home beer, the more he will sell. Almost 1/3 of beer buyers have purchased a craft beer over the past 12 months, with Millennials representing 47% of the craft beer market (Pierre 2013). Millennials are ages 18-29. These numbers are huge for us because they fall directly into Carmody’s biggest consumer demographic, as well as their target market.

InvolvementWhen someone enters and chooses a beer, they often go by what they know. Giving them a sample of some of Carmody’s craft beers will increase their involvement and improve the likelihood that they make a purchase. 90% of supermarket items fail. This is not because of the way they taste, but rather because they simply are not tried (Underhill pg. 163). The book gives the example of light bulbs, although though they are never touched when being used, when consumers are able to physically touch them before purchase, the likelihood of a purchase being made goes up. Nobody needs a sample of Bud Light because they know what they are getting. Craft beers all taste differently so a small sample will help customers feel much more comfortable when ordering one.

Social Proof Social proof also plays a large role in sampling. As Cialdini explains in his book Influence, people don’t want to be seen as different than the rest of society. So when a group of customers enter the bar and are offered a beer sample, if the first person in line says yes, the rest of the group is likely to follow. Bartenders can also use social proof to steer customers towards Carmody’s craft beers. “The principle of social proof can be used to stimulate a person’s compliance with a request by informing the person that many other individuals are or have been complying with it.”(Cialdini pg. 139) Rather than just asking customers if they would like a sample, bartenders can suggest beers that have been popular, which would increase the likelihood of a customer trying it because they won’t know they are differing from the norm.

APPENDIX A: Interview QuestionsWhat us the history of the bar?

What is Carmody’s competitive advantage? What makes it different from other local bars?

What is Carmody’s target market? Do you feel that you are reaching your target market?

What are your most profitable items?

There’s a marketing adage that between good service, good quality, and low price it is only possible to have two of the three. If you had

to pick two of the three that you think keep your customers returning, what would they be?

How do you think your customers view the Carmody’s brand?

What things have you done in the past to try to draw new customers in? Did it work?

What are your expectations through this project?

What do you feel that you could do to improve Carmody’s?

If you were a customer, why would you go to Carmody’s? What do you believe are the largest contributors for people choosing a bar?

What are your organizational objectives?

Who is your ideal customer?

What are some of your short term, long term goals?

Are you currently doing any promotions?

What advertising medias are you currently employing?

Would you say Carmody’s is more focused on its bar or restaurant?

How interested are you in attracting college students? (not/somewhat/definitely)

What differentiates Carmody’s from another bar?

What are your most frequented times of the day?

What are your happy hour items and why?

What are comments/questions/concerns do you get from customers, if any?

APPENDIX B: Decision Making Process

Customer 1

Need recognition: beer, place to meet friends, relax and unwind from a stressful week at school

Information search: social media and the internet, WOM: I had heard of this place from a friend who said that he had enjoyed it

Alternative evaluation: Canal Park Brewery or Dubh-Linn’s but Carmody’s was closer to my house

Purchase: Looked at the beers and liquor available but was overwhelmed with all of the clutter and as a result could not focus on the chalkboard, the chalkboard was very difficult to read, I just asked the bartender to recommend a beer because I did not want him to name all of them off, I trusted his recommendation

Post-Purchase: was fairly pleased, I wish that I could have looked over all that they had to offer but the bartender did a very good job with his recommendation

Customer 2

Need recognition: a drink, needed a place to meet up with old friends and relax

Information search: WOM: met Ed at a beer event many years ago and came in to try Carmody’s out, I have been coming here for years, I like it because it is not a “college bar” where there is loud music playing and drunk people all around

Alternative evaluation: I don’t have many alternatives, if I am able to find the time to meet up with my friends we always meet here

Purchase: new beer, asked for a sample from Ed and I enjoyed it

Post-Purchase: very pleased with my decision, I was able to decide whether or not I liked it before hand so that I wouldn’t be surprised or disappointed

APPENDIX C: Laddering

In-Depth interview with Customer 1

Interviewer: What do you like about the product?Respondent: I like quiet, chilling atmosphereInterviewer: Why?Respondent: I enjoyed it because I wanted to go there to relax after a tiring day and not have to worry about loud obnoxious people. It has the atmosphere of a relaxing placeInterviewer: Why do you want to get away from loud people?Respondent: I was more in the mood for relaxing. I was more tired. Just wanted to chill at the end of the day. Just a quick place to catch your breath, reflect on the day and talk it over with someone. You don’t have to worry about social norms, you can do your own thing. And be yourself. I just wanted to stick to myself and stick to my own thoughts. I wouldn’t have to worry about other people bugging me or having awkward conversation with people.Interviewer: Why don’t you like awkward small talk?Respondent: Depends on the day. After a day at work I don’t want to be social with others when I want to sit on my own thoughtsInterviewer: Why is being social something you don’t want to do?Respondent: I spend the whole day teaching them and dealing with obnoxious people. Camody’s is a place where I can just go and not have to worry about dealing with others. Interviewer: Why do you not want to deal with others?Respondent: You look for a place where you can just relaxYou are annoyed and you don’t want to talk with others when you just want to zone out and relax and have a quite place to thinkInterviewer: What about it makes it relaxing?Respondent: Not too light or bright in there. You have a more relaxing mood. Not blinded by bright lights, wont give you a headache. There is no loud music. It is easy to zone out. Overall I am looking for a place to relax and unwind after a long day at work Interviewer: How long have you used the product? Respondent: A couple months. New to the placeInterviewer: What made you start?Respondent: Night outInterviewer: More detail?Respondent: Friends going out went to a couple different bars and it was a first top.Interviewer: What made you go in?Respondent: My friends went it, it was the plan. They had alcohol. Interviewer: What about it?Respondent: We wanted to see what it was like in there? CuriosityInterviewer: Do you like trying new things?Respondent: Not usuallyInterviewer: Why?Respondent: I have my set places and they are good. Interviewer: What do you mean they are good?Respondent: I am familiar with it, I am used to it. It is tried and true.Interviewer: Does unfamiliarity make you uncomfortable and why?Respondent: Something that is new and I am not used to it. Interviewer: Why do you not like new things?Respondent: I like my usual things and most of the time they can fill them. Interviewer: What are your needs?Respondent: They depend. Sometimes I am looking for a place to relax, sometimes I am looking for a place to get wild, and some times I am looking to relaxInterviewer: What need does Carmody’s fill?Respondent: Relaxing. Just go there with a few people and relaxInterviewer: What about those people and Carmody’s is relaxing?Close friends. I would be able to talk and not be interrupted by other distractions like at other bars. There is no loud music and people do not distract you and so you are able to just be with your buddies and truly relax. Interviewer: Why do you think it is a good value for the price? Respondent: Their prices are not more expensive than other places and so their price of goods is equal to or cheaper than the price of other bars. Interviewer: What other value do you get from Carmody’s?Respondent: Relaxing climate that I want.Interviewer: Why is a relaxing climate so important?Respondent: After a long day at work I just want to relax where I can be in my own zone and the dark lights and lack of music is ideal for that. There are places for me to sit and be alone but if I want to talk to people I have the option of sitting at the bar. This is not like the other places that I go such as Canal Park Brewery or Grandmas on the weekend Interviewer: How frequently do you use the product? Respondent: Maybe once every two weeksInterviewer: Why?Respondent: I only go there after a really tiring day and just zone out on my own. It is just on average on how often that happensInterviewer: Other than the dark lights or lack loud music, what about it makes it ideal for these days?Respondent: It has an old school theme, reminds me of a grandparent’s house where things go a little slowerInterviewer: Why is this something you look for?Respondent: Memories of Grandparents houseInterviewer: What type of memories and what do they involve?Respondent: Good ones, it is safe, comfortable. Slow moving and relaxing. It provides an escape from the fast moving pace of life and being a teacher you need some of those days where you can remember those times and just relax.Interviewer: Where do you buy the product? Respondent: At Carmody’sInterviewer: What would it take for you to switch? Respondent: Other friends find a place that they like more or if someone that I am going with would have to not want to go there. Personally something drastic, like bad service or change of atmosphere would cause me to change. Interviewer: Why?Respondent: They are not what I was looking for originally. I usually don’t like change and so even if there was a small change I could put up with it because changing bars a whole would typically be an even larger change. Interviewer: What other products would you consider purchasing and why?Respondent: Money, if I didn’t have enough money because it is still cheaper to stay at home. The value of Carmody’s is totally dependent on the mood that I am in or the people I am with. If I am in the correct mood or the correct people then I am more willing to go there but if I were in any other mood then I would look elsewhere. The primary reasoning for this is because I strictly go to Carmody’s for the mood.

APPENDIX D: Observation Notes

Store Experience

1. Where do customers look?

2. What are the customers looking for?

3. What is their level of interaction with employees?

4. Are they greeted when arrived and are they given menus?

5. Where do customers slow down or stop when they enter the store? What are these customers doing when doing so?

6. What are customers looking at when they enter the store?

7. Signage

a. Where are the signs located in the store?

b. Are they too cluttered?

Purchasing Patterns

1. Time of day and date of observation

2. Gender of the customer?

3. What is the estimated age of the customer?

4. What types of products do the customers purchase?

b. Food?

c. Drink?

i. Did they purchase a Carmody’s beer?

5. Are the customers getting refills or multiple items?

6. How long does each customer stay in the store?

7. Is the customer a local of Duluth or do they seem to visitor?

APPENDIX E: Observation Schedule

Date Time In/Out Group Members Location in Bar for Observations

2/14/2014 4-6 pm All Group Members Booth near window

2/18/2014 7:30-10 pm Bryan Schmitz Table near front

3/6/2014 8-10 pm Andrew Thuleen Booth near window

3/12/2014 6-7:30 pm Ian Thatcher Bar / Booth near window

3/14/2014 5:30-8 pm Robbie Spah Table near bar

3/17/2014 2-3 pm Ian Thatcher Booth near window

3/19/2014 4-8 pm Andrew Thuleen Booth near window

3/24/2014 5:30-7 pm Robbie Spah Bar

4/1/2014 6-11 pm Ian Thatcher Back area

4/4/2014 5-7:30 pm Robbie Spah Table near bar

4/8/2014 9-10 pm Ian Thatcher Table near bar

4/14/2014 6:30-9 pm Bryan Schmitz Table near back

4/21/2014 3-7 pm Andrew Thuleen Table near bar

4/23/2014 5:30-7 pm Ian Thatcher Table near bar

4/24/2014 5-7:30 pm Bryan Schmitz Booth near window

4/26/2014 5-7:30 om Robbie Spah Table near bar

4/28/2014 5-7:30 pm Bryan Schmitz Booth near window

APPENDIX F: Observation Data

Bibliography

Cianldini, Robert B Influence: Science and Pricetice. Boston: Pearson Education, 2009. Print.

Underhill, Paco. Why We Buy: The Science of Shopping. New York: Simon & Schister Pbks. 2009. Print.

Duggan, Maveve, and Aaron Smith. “Social Media Update.” Pew Research Center Internet American Life Project RSS. PewResearch, 30 Dec. 2013. Web. 01.May 2014

Babin, Barry J., and Eric G. Harris. CB. Mason, OH: South-Western Cengage Learning, 2011. Print.