The art of selling and marketing goods requires many skills in analyzing your products, markets, and key niche selling points for a specified product. Customers need to understand the product sold and business owners need to understand the needs of the customers. As a result, a product should be designed to meet the various qualities that a customer expects and it should be delivered using intelligent marketing plans. The Sun King Brewery is a company that produces craft beer in the State of Indiana and sells it to customers at a taproom and café located in Castleton.
The Sun King Brewery is a small craft beer maker in the state of Indiana with the intention of growing its market share in the State. The beer maker is keen on marketing its beer to the whole of Indiana by opening up cafés and taprooms that will allow consumers to sample their favorite beer. Sun King Brewery produces a locally brewed beer with a unique taste preferred by locals residing in Indiana. The Sun King Brewery produces and serves its fresh beer at the Castleton restaurant, which also offers local delicacies. The company had the intention of attracting local beer fans with a keen interest in fine dining and local authentic beer. The majority of craft beer lovers are young people between the ages of 21 and 35 years and Sun King has identified this group as its target market. Targeting the youth in the state of Indiana comes from the idea that they are the largest group of people in the state making up 60% of the population (Doole 256). Moreover, the youth have unique tastes and this has seen a growth in craft beer sales in the state and nationally. The growth of the economy has also favored the youth who are now one of the biggest beer consumers in the state.
Sun King Brewery offers beer that is freshly brewed without preservatives and thus it is a unique premium brand that will attract a lot of attention from consumers and beer lovers in the State. The beers are sold alongside meals at eateries and cafés such as the Sun King’s Castleton place. People nowadays look for joints that offer nice meals, which are complemented with beer, and Sun King is relying on this to market and sell its beer (Vashisht 178). Sun King has the advantage of selling its beer in Indiana since it goes down well with the state’s culture and drives sales since locals want to sample locally produced foods. The operation of Sun King Brewery is simple and thus the company offers their product at cost-friendly prices, which attract consumers who love beer. Young people in Indiana have a huge purchasing power and this enables them to look for experiences that are enriching in terms of food and dining. As a result, most local restaurants are experiencing a large influx of young people rooting for exotic dining which includes food pairings with beer. Sun King has the advantage of distributing and supplying their beer to these restaurants at cost-friendly prices. In the process of distrusting and selling its beers outside its taproom, the brewer will package and sell its beer in keg cans given that they will be sold to cafés and restaurants in the State (Cant 122). The Sun King Brewery has no intentions of selling its product in retail stores since this would make it lose its unique characteristic as a craft beer brewer.
Pricing is one of the key ingredients in the sales of goods or services to consumers and Sun King Brewery is aware of this important factor. As a result, the brewer has decided to retail its beer at $5 within its local restaurant where the brewer owns a taproom. The $5 price for the beer is deemed affordable and friendly for consumers within the state. Some of the fundamental pricing issues considered include net income that could be achieved in a restaurant. For instance, a local expert in a restaurant business estimated that a café could earn sales of around $ 900,000 per year, and thus this estimate was considered while determining product prices. Moreover, based on research we estimated that restaurants around Indiana experience around an average of 165 customers per day with each customer spending $ 15 on food and drinks approximately (Doole 244). Then we came up with a figure of $ 5 for a beer at the Sun King taproom so as to meet the target and market expectations. This sales forecast will determine the cost of the beers sold at Sun King Brewery taproom. If the number of customers does not reach the desired level, the beer might have the price rates set at around $6 which is 10% higher than the desired retail price. However, the retail price for the beer at other restaurants outside the Sun King Brewery’s room will be $ 6.50. This is due to the distribution costs and other factors such as packaging and marketing (Cant 99).
Several factors might influence the price at which Sun King beer will be sold such as demand, production, and marketing costs. Sun King being a craft beer has to contend with production challenges since its operations are undertaken on a day-to-day basis established by demand. Thus, if demand for the beer rises then the list price might go up since production and direct costs will also increase. From our market interviews, we noticed that around 43.9% of the customers we interrogated were of the view that they would probably buy the beer from Sun King (Vashisht 133). Thus if 80% of these customers were to buy Sun King’s beer then the list price would go up by around 20% to a price of $ 7. Other factors that might affect the list price are production and marketing costs that might shoot up due to the popularity of the brand within local restaurants in the State. Furthermore, if sales are promising then Sun King will open more taprooms to feed the demand of its consumers. Based on estimates, they will maintain its $5 price offer to create a following for its beer.
Craft beer brewers rely on several factors in the process of selling their beer and Sun King as one of such brewers is counting on its product offering and pricing strategies to win customers. Sun King offers a unique craft beer that is brewed locally and intended for consumption among the local population. Moreover, the brewer aims to leverage its strategic marketing scheme of opening an eatery and selling its beer through its own taproom. The brewer has priced its beer at moderate prices to attract consumers to its brand and fight off competition from well-established brewers. Through its clever pricing model and product offering, Sun King will surely perform well in the craft beer industry.
Cant, Michael, Strydom, James and Jooste, Colllins. Marketing Management. Boston, MA: Pelshiver Publishing, 2011. Print.
Doole, Isobel and Lowe, Robin. Strategic Marketing: Decisions in Global Markets. New York, NY: Raven Press, 2010. Print.
Vashisht, Kujnish. A Practical Approach to Marketing Management. Chicago, IL: John Wiley and Sons, 2011. Print.