Pawley’s Island Brewing Marketing Proposal

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Table of Contents
Executive Summary……………………………………………………………………………………………………………………………………………………………………..…….3

Meet the Team…………………………………………………………………………………………………………………………………………………..………………………..4

The Four C’s (Company-Customer-Category-Competition)……………………………………………………………...…………………………………………7

SWOT Analysis…………………………………………………………………………………………………………………………………………………………………………..20

Initial Implications & Themes…………………………………………………………………………………………………………………………………………………………………………..30

Defining the Market…………………………………………………………………………………………………………………………………………………………………………..31

Reasons to Believe & Brand Character…………………………………………………………………………………………………………………………………………………………..40

Marketing Strategies…………………………………………………………………………………………………………………………………………………………………………….43

Four Pillars………………………………………………………………………………………………………………………………………………………………………………….46

Profit & Loss Analysis………………………………………………………………………………………………………………………………………………………………………………58

Appendices & References……………………………………………………………………………………………………………………………………………………………...70 2

 Executive Summary
Pawleys Island Brewery Co. is a family owned and operated microbrewery that produces and delivers unique tailor-made craft
beer. Unlike other craft beers, Pawleys Island Brewery provides a fantastic tasting brew that comes in a variety of 12 different flavors with
an unbeatable price-to-quality ratio. It is difficult to come across craft beers these days that do not quickly remind you to stick with your
lower cost domestics after observing the price. With Pawleys Island Brewery, you are guaranteed to find a slice of heaven after indulging
in a delicious cost friendly brew made for you, or as we like to call it, your “Weekday Getaway”.
The adventure began with your typical 9-5er putting in their time day after day. Instead of settling, these go-getters set out to
pursue their dream of starting their own brewery. In 2016, Pawleys Island Brewery Co. was founded and has since been on the come up,
growing exponentially fast while starting strong with top-rated customer reviews. As the brewery is located on the coast of Pawleys
Island, South Carolina, the Charleston metro and harbor area delivers a pristine opportunity for expansion. Along with a rich history and
highly populated city, Charleston fits right into our target market for millenials and blue collar workers that would be able to choose
from a selection of IPAs, Lagers, Ales, Stouts and Pilsners. This market, as well as penny pinchers, will soon have the chance to go out
and purchase a six-pack of craft beer that they enjoy to drink, while also providing their conscious with a sense of relief as it does not
deplete their wallet as the typical brews would. This opens a new beginning of craft beer as customers can trade in their domestic light
beers for a more flavorful and higher ABV brew for a relatively similar price.
A partnership was created with Breakthru Beverage, an experienced distributor for beer, wine and spirits that has been helping
the brand name grow. As of now they have helped with the process of selling to 75 on premise retailers in the form of kegs and pony
kegs. Brand design is a major key to success and has incorporated energy into sales with a distinct and creative looking turtle logo that is
hard to forget. This leads into our four pillars to market the brand through the use of continuity programs, digital media campaign, bar
and restaurant advertising, and events such as festivals, concerts, and sporting events. The purpose of our plan is to show the potential
and direction that Pawleys Island should take in order to expand their business. All in all, we want everyone to know that Pawleys Island
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Brewing Company is here to stay.
 Meet Our Team

Javion Lyles Laura Donovan Alex Cooler

Marketing & Management Marketing & Management Finance & Marketing
Columbia, SC Saratoga, NY Ridgeland, SC

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 Meet Our Team

Austin Gard Parker Jones Christian Worch

GSCOM & Marketing Marketing & Management Marketing & Finance
Fort Mill, SC Kershaw, SC Mount Airy, MD
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6
Background
Sick and tired of your dead-end job? Quit it
and start a brewery!

That’s what Dan, Bill and Fraser Blake did

when they quit their IT jobs in Atlanta and
moved back to their hometown to pursue the
dream of opening a brewery.

With the help of head brewer Darren McLean,

the brothers bootstrapped with the help of
investors, friends, and family to create Pawleys
Island Brewing Co.
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 Company Overview
● Core following - Pawleys Island/Charleston
● Twelve items on product line
○ IPA
○ Lager
○ Ale
○ Stout
○ Pilsner
● Sold by Keg or Tap
○ $75.72-$152.99
○ 165 12oz beers per Full Keg
○ 82 8oz beers per Full Keg
● 87.7% sold by Retail on Premise
● Launched website in first quarter of 2016
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Collaborations
Breakthru Beverage - choice distributor for Pawleys Island and will be handling the distribution
to stores all over South Carolina.

● Wide product range and experience in other areas of the industry (liquor and wine)
● New to beer distribution market

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Category
● Microbrewery:
○ Produces < 15,000 barrels of beer per year
○ 75% + sold off-site
○ Traditional three-tier system

So What?
Brewer Wholesaler Consumer ● Room for growth in craft beer industry
● Breakthru Beverage collaboration will
increase off-site sales

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Craft Beer Sales Production
○ Sales growth 6.2% by volume
○ Totals 12.3%of US beer market by volume
○ Accounts for 22% of $108 billion US beer market

So What?

● Annual craft beer market

increase = boost sales
● Production only
improving year after year

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Craft Beer Volume Production
○ Growth for most microbreweries
○ Microbreweries account for 20.4% of
craft beer industry production
○ Steady growth since ‘09

So What?

● Consumer support leads

to rapid industry growth
● Craft beer production
shows continued signs of
expansion
● More recognition for
microbreweries 12
Customers
● Major Players: Retailers, restaurants,
bars, hotels
● On premise v Off premise
● Impulse buy v Planned buy

So What?

● Implement push strategy: Tap handle

upgrade, major logo advertisement
● Ex Grill Marks, Columbia, SC

=Major Distribution Area

See Appendix A, B 13
See Appendix C & D
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See Appendix C & D
Consumers: Ethnicity Data
Ethnicity:

● White/Hispanic hold largest

percentage of makeup
● Hindsight: Diverse makeup

So What?

● Segment the millennial market

(ages 21-34)
● Female marketing efforts
● Learn customer preferences for
flavor types
● Develop special deals and prices brewersassociation.org

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See Appendix C, D
 Market Structure
Market
Craft Beer Industry

Category Off Premise On Premise

Segment Hotels Bars Restaurants Brewery Retailers

Item Brand Flavor Types Prices

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Competitors
● 15 breweries in Charleston
● Big Players
○ Coast (Charleston)
○ Westbrook (Charleston)
○ Palmetto (Charleston)
○ Holy City (Charleston
● Keys to Standing Out
○ Unique seasonal beer
○ Food trucks on weekends
○ Niche market
○ Community support
○ Events at brewery
○ Ex: live music, trivia nights

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Breakthru’s Competitors - RNDC
● Both bigger and more versed in the beer side of the industry than break thru
● They rank higher on Forbes’ list of largest private american firms
● Greater reviews on both google and glassdoor
● Better hold on the South Carolina alcohol distribution scene
● Growing since last year by 18.9% whereas Breakthru dropped 10% (according to
forbes)

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Breakthru’s Competitors - Southern Glazer’s
● South Glazer’s Wine and Spirits is ranked 17th largest private American company
● Bad reviews on google and similar employee reviews on glassdoor
● Focus mainly on wines and spirits
● Bigger than Breakthru
● If they decided to enter the beer industry is would be a tough battle for Breakthru

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 ● Small budget for Marketing
($35,000)
● Limited product line, only sold

Weaknesses
Keg
● Website is underdeveloped,
relatively new.
A Young Company ● Crowded location
● Limited production output

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 ● Unique backstory

Strengths
● No prior history of the company
● Family owned and operated

Initial Positives for the Company ● Partnership with Breakthru

● Tailored-made beer types

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 Strengths
Major Factor: Brand Design is
Key!

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 ● Top 10 Charleston Breweries -
Palmetto, Frothy Beard, Revelry,
Munkle, Tradesmen, Charles
Towne, Holy City, Cooper River,

Threat
Twisted Cypress, Edmunds

Crowded Market for Craft Beer in ● Best New Charleston Breweries -

Charleston, SC Revelry, Ghost Monkey,
Tradesmen, Frothy Beard,
Freehouse, Lo-Fi, Lagunitas

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 ● Palmetto Brewing Company -
First established brewery in the
state of South Carolina
● Frothy Beard Brewing Company

Threat
- hosts live events such as
comedy, pro wrestling, etc.
● Freehouse Brewery - organic
Competition with Established ingredients, brewery sits on a
Marketing Efforts river
● Holy City Brewing- Very close
proximity

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 ● Breakthru may be experienced,
but a threat for them is also a
threat for us.

Threat ● Their competitors like Republic

National Distributing and
Southern Glazer’s are both
Breakthru Has its Own bigger than Breakthru and could
Competitors cause problems if provoked.

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 ● “Big Sandy Beaches” Summer
Ale
● Spring/Summer seasons are right
around the corner

Opportunity
“Big Picture” Opportunity

● Use Charleston Harbor to

expand the business
Charleston is a Coastal City:
● Market towards shipowners,
The Charleston Harbor
blue-collar workers, etc.
● Open a harbor themed brewery
on the harbor itself.

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 ● City was founded in 1670

● Battle of Fort Sumter, major part

Opportunity in the start of the Civil War

History throughout City of ● Historic architecture of the city

Charleston
● Play on the history of Charleston.

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 ● Breakthru’s resources and
experience will provide a
competitive advantage

Opportunity ● Events, Contests, Press Releases

● Food Trucks/Carts
Breakthru as a Distributor & ● Expansion in major cities and
Brand Recognition
areas across South Carolina

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Initial Implications and Themes
● Brand recognition is the name of the game

● Chance to create your own history

● Creation of a modified push/pull strategy

● Target Markets: Millennials and Young Adults

● Charleston, HHI, Columbia, Greenville pose major potential growth

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Defining the Market

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 Goals &
Objectives

Communication
Business Objectives
Objective

Create perception:
Increase awareness of Social Media
Increase sales Pawleys is warm and
brand marketing
welcoming

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Target Market
● 21-34 years old
● Working/middle class ($40,000-60,000)
○ Blue Collar
○ Post-graduates

● Stuck in 9-5 jobs, millennials want to work

when they want to work
● So What?
○ Gear marketing towards these more
career-oriented people
○ Mobile is important to find
brands/information 33
 Target market data has led to the
development of two major
archetypes:

● Penny Pincher: Driven by price,

Target Market looking for a cheap option that

delivers some value

Archetypes ● The 9-5er: Looking to relax and

enjoy a beer after a hard day of
work

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Features/Benefits/Values
Features Benefits Values

● Strong Brand Design ● Easy to remember ● “Home is where the heart is”

● 10+ selection of beers ● Find in various parts of ● “Your Weekday Getaway”

● Locally made in S.C. the state

● Family run business ● Relatable company

● A new company ● Keep up to date on

● Social media presence events, new products,

and news
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 Perceptual Map

Perceptual Map
Craft

Where do we want
Pawleys?
Quality
Domestic

$2-$4 range $4-$6 range $6-$8 range

Price
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So what is the Customer Insight?
Pawleys is a getaway for the everyday
worker to enjoy high quality beer with
friends and family and melt away the
stresses of day to day life and work. So,
with that...

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We are your Weekday Getaway.
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For the hard-working individuals stuck in their 9-5, Pawleys Island is
your weekday getaway. Here at Pawleys, we know what it’s like
to escape a blue collar life and we want to help you craft your
dreams.

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Our Major Point of Difference: It’s You!
● Three Brothers: One Dream
● Dan, Bill and Fraser gave up their IT
jobs in Atlanta to pursue their dream
● Darren went from a Music Degree to
Head Brewer
○ Unpaid internship at 4 Hands
Brewing
○ Applied to 29 breweries in St.
Louis
○ Got his big break with Pawleys

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Reasons to Believe?
Brand New But Growing Fast

● Committed to growing
● Began selling mid 2017: Selling to roughly 75 on premise retailers
● Over 12 varieties of beer and continuing to expand
● Design of the logo by a New Mexican artist
● Strong customer reviews: Currently 5.0/5.0 rating on Google

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 Brand Character Eric Taylor:
● Second family feel Friday Night Lights
● Selfless
● Always there for you
● Mentor
● Heart of the community
● Respected by everyone

Brand Tonality
● Warm
● Comforting
● Motivating
● Passionate
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Marketing Strategies

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To Recap from Consumer Insights
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To Recap from Consumer Insights
 Doug Chase
● 32 Years Old ● 24 Years Old
● Charleston, SC ● Greenville, SC
● Married, no kids ● Single
● Construction Worker ● Financial Analyst
● $44,000 ● $54,000
● No college degree ● Bachelor’s Degree from USC

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Four Pillars
Continuity Programs
● “Turtle Crawl”
● Swag giveaways
Bars and Restaurants
● Distinguishable tap
handle & bottle logo
● Beer tastings
● Table tents, signs,
posters
Digital Media Campaign
1
● Facebook, Twitter, Instagram
● #weekdaygetawaypibc
● Website Renovations
2
Experiential Marketing
3
● Annual festivals
● Local concerts
● Sporting events
4 ● Brewery weekly events
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● 75% Experiential ● 60% Experiential
● 25% Digital ● 40% Digital

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Bars & Restaurants
● Beer tastings
● Strong advertising presence
○ Posters/banners
○ Signs
○ Table tents
● Distinguishable tap handle and
bottle label
○ Seafoam Green

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 Perceptual Map

Perceptual Map
Craft

And because we
want Pawley’s
here…
Quality
Domestic

$2-$4 range $4-$6 range $6-$8 range

Price
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This becomes the ideal retail placement

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Bottle Label

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 On-Premise Experiential Marketing
Wednesday Thursday Friday Saturday Sunday

The Office Trivia Corn Hole Food Truck Live Music Yappy Hour
Tournament Friday

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 Off-Premise Experiential Marketing

Local Concerts Annual Festivals Sporting Events

● Five after Five (Columbia)
● Beechin’ Fridays (Greenville)
● Music on Main (Myrtle Beach)
● Summer Concert Series
(Charleston)
● Five Points Chili Cook-Off
● Greenville BBQ Cook-Off
● Charleston High Water Fest
● Carolina Country Music
Festival
● Minor League Baseball
Games
○ Columbia Fireflies
○ Charleston RiverDogs
○ Greenville Drives
○ Myrtle Beach Pelicans
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Continuity Programs

● Swag Giveaways
● “Turtle Crawl” Challenge
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Digital Media Campaign

● Upcoming events
● Promotions

#weekdaygetawaypiBc ● Frequent posts

● Quick news blurbs
● Daily specials

● Visual content
● Increasing customer
interaction & awareness

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Digital Media Campaign - Website Renovations

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Digital Media Campaign - Website Renovations

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Pawley’s Island Brewing Co:
Profit & Loss Analysis

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 Factors to Consider

3 Major Segments

Target Locations

Sales estimate for each segment

Sales Growth Rate

Cost of Goods Sold

Scenario Analysis for Kegs Sold

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Major Segments
Launch Date: FY 2019

Forecast: FY 2019-2023

● Full Keg & Pony Keg

○ Split volume of 50/50
○ Keg Volume Scenario Analysis

● Bottles
○ 12 oz Bottles
○ 6-Pack
○ Price: $6.00-$8.00 a pack
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Charleston, SC (Metro Area) Columbia, SC (Metro Area)
Total Population: 744,500 Total Population: 816,450
Age 21-24: 7.40% Age 21-24: 7.70%
Age 25-34: 15.70% Age 25-34: 13.40%

Of Total Population: 171,980 (23.10%) Of Total Population: 172,271 (21.10%)

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Greenville, SC (Metro Area) Spartanburg, SC (Metro Area)
Total Population : 61,734 Total Population: 329,136
Age 21-24: 11.00% Age 21-24: 7.50%
Age 25-34: 18.50% Age 25-34: 12.80%

Of Total Population: 18,212 (29.50%) Of Total Population: 66,815 (20.30%)

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 Myrtle Beach (Metro Area)
Total Population: 449,295
Total Available Target
Age 21-24: 5.10% Market:
Age502,512
25-34: 11.20%
Myrtle Beach (Metro Area)
Of Total
OutPopulation: 73,235 (16.30%)
of: 2,401,115
Total Population: 449,295
Age 21-24: 5.10%
Age 25-34: 11.20%
Percentage: 20.93%

Of Total Population: 73,235 (16.30%)

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 Estimation of Units Sold

Total
Potential
Aware Interested Trial Repeat
Market 3,624
(50%) (20%) (7%) (3%)
(20.93%)

106
3,518
50,251
251,256
502,512

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 Sales Growth Rate and COGS

COGS estimates based off of The Craft Brew Alliance annual reports (10-K filing).
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66
67

2018
Preparation
From the development of
marketing tools to the creation of
the bottle. Get ready for 2019.
Key Milestones
2019
Kickoff
Full sail ahead: Marketing tools
are in full effect, distribution has
increased and the bottle is now
also being shipped.
2020
Evaluate
Learn from what 2019 brought.
Make changes relative to major
areas such as target markets,
product design, and marketing
pieces.
2021
+
Grow
Implement any necessary
changes. Look to expand
distribution locations, product
lines, and marketing budget.
Continue making great beer.
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Thank You!

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Appendix A: Current Distribution Information

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Received from BreakThru Beverage
 Appendix B: On Premise Rankings (2013)
On Premise Data by State
“The first note is that the size of the on-premise beer market varies wildly by state. This is due to a variety of factors: beer’s share of beverage alcohol, overall
beer consumption levels, number of on-premise outlets, on-premise culture, consumer preferences and socioeconomic factors. Below is a graph of the total
draught beer market by state in 2013 (from the Beer Institute) measured in pints per 21+ adult.” This excerpt/image taken from brewersassociation.org

71
Appendix C: Customer and Consumer Demand Factors

Excerpt taken from IBISWorld.com 72

 Appendix D: Consumer Demographics

How to Build a Craft Beer Drinker: The Attitudes That Identify Prime Prospects drew on data from the 2015 U.S. Yankelovich MONITOR survey, which
tapped more than 10,000 respondents and asked about the attitudes, values and priorities of U.S. consumers. The images above are taken from
brewersassociation.org 73
Appendix E: Forecasting P&L Statement

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75
Appendix F: Sales Estimates

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Appendix G: Sales Growth Estimate

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Appendix H: Population Estimates

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Appendix I: Population Estimates Continued

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Appendix J: Important Notes

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 References
6 Characteristics of Millennial Beer Drinkers You Need to Know. (2015, October 5). Retrieved from https://www.brewersassociation.org/
communicating-craft/6-characteristics-of-millennial-beer-drinkers-you-need-to-know/

Adamowski, Tiffany. (2014, November 12). Selling more beer through your local craft beer store. Microbrewr. Retrieved from
http://microbrewr.com/selling-more-beer-through-your-local-craft-beer-store-blog/

Battle Of Fort Sumter. (n.d.). World History Group. Retrieved February 9, 2018, from http://www.historynet.com/battle-of-fort-sumter

Burt, S. (2016, October 24). The Best New Breweries in Charleston. Retrieved February 9, 2018, from
https://www.thrillist.com/drink/charleston/best-new-breweries-in-charleston-sc

FMCG and Retail. (2017, May 27). Craft Beer Drinkers Often Judge a Beer by its Packaging. Nielsen. Retrieved from
http://www.nielsen.com/us/en/insights/news/2017/craft-beer-drinkers-often-judge-a-beer-by-its-packaging.html

Forbes. (2017, December 31). Republic National Distributing Company on the Forbes America’s Largest Private Companies List.
Retrieved February 12, 2018, from
https://www.forbes.com/forbes/welcome/?toURL=https://www.forbes.com/companies/republic-national-distributing-company/&refURL
=&referrer=

Forbes. (2017, December 31). Breakthru Beverage Group on the Forbes America’s Largest Private Companies List. Retrieved February 12,
2018, from https://www.forbes.com/companies/breakthru-beverage-group/

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 References
Forbes. (2017, December 31). Southern Glazer’s Wine and Spirits on the Forbes America’s Largest Private Companies List. Retrieved
February 12, 2018, from https://www.forbes.com/companies/southern-glazers/

Glassdoor. (2018, February 12). Republic National Distributing Company Jobs. Retrieved February 12, 2018, from
https://www.glassdoor.com/Jobs/Republic-National-Distributing-Company-Jobs-E253796.htm

Glassdoor. (2018, February 12). Working at Breakthru Beverage. Retrieved February 12, 2018, from
https://www.glassdoor.com/Overview/Working-at-Breakthru-Beverage-EI_IE1154928.11,29.htm

Glassdoor. (2018, February 12). Southern Glazer’s Wine and Spirits Reviews. Retrieved february 12, 2018, from
https://www.glassdoor.com/Reviews/Southern-Glazer-s-Wine-and-Spirits-Reviews-E1366486.htm

Herz, J. (2016, August 15). Today’s Craft Beer Lovers: Millennials, Women, and Hispanics. Brewers Association. Retrieved from
https://www.brewersassociation.org/communicating-craft/understanding-todays-craft-beer-lovers-millennials-women-hispanics/

IBISWorld US. (2018). Products and Markets. Retrieved from

http://clients1.ibisworld.com/reports/us/industry/productsandmarkets.aspx?entid=4302#DD

James, D. (2017, January 11). 9 Must-Know Millennial Shopping Trends & Marketing Strategies of 2017. Rakuten Marketing. Retrieved from
https://blog.marketing.rakuten.com/affiliate/9-must-know-millennial-shopping-trends-of-2017

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 References
Pettigrew, T. (2015, September 23). 10 Charleston Craft Beer Destinations. Retrieved February 9, 2018, from
https://charleston.eater.com/maps/best-charleston-breweries-craft-beer

Rosen, B. (2017, November 22). Who Loses in the Breakthru/RNDC Merger? Everyone. Retrieved February 12, 2018, from
https://www.wineindustryadvisor.com/2017/11/22/everyone-loses-breakthru-rndc-merger

Watermark Design. (2016, October 31). Understand the age and changing demographics of craft beer drinkers (then market properly).
Craft Brewing Business. Retrieved from https://www.craftbrewingbusiness.com/featured/
understand-age-changing-demographics-craft-beer-drinkers-market-properly/

Watson, B. (2016, June 15). On-Premise Beer Data and Craft. Retrieved February 13, 2018, from
https://www.brewersassociation.org/insights/importance-on-premise-craft-brewers/

Wine Market Council. (2018,January 25). Breakthru’s 2018 Alcohol Consumption Breakdown. Retrieved February 12, 2018, from
https://www.breakthrubev.com/news/2018-alcohol-consumption-trends

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 Cooking

At Home Eating Out

Stove Top Microwave Oven Grilling Take Out/Delivery Sit-Down

84