Friday, February 21, 2014

Week 4: Target Market Analysis


Green Brew Engineering

I decided to focus on a company that my husband dreams of starting.  If he ever decides to do it, I will be helping him as much as I can and he wants, so it will be good to start thinking about all of this now!  My husband is a mechanical engineer, home brewer, beer enthusiast, and environmentalist.  He wants to start an engineering firm that helps breweries become sustainable operations, especially in terms of energy efficiency and water use.  He already designs heating and cooling systems for buildings, he has previously designed commercial refrigeration systems, and he is LEED certified- which basically means that he can assess a building and assign it an energy efficiency rating.  He has also done reports for companies that outline what they would need to do to reach higher levels of LEED ratings than they already have.   

There are already some companies that have invested a lot into the environmental sustainability and energy efficiency of their own operations, but I don’t know if there are already engineering firms or consultants out there that specialize in helping breweries achieve greater efficiency and environmental sustainability.    This company would help breweries engineer or re-engineer their brewing spaces and systems for maximum environmental sustainability and maximum efficiency of resource use.

This requires a business-to-business communications model.  The initial target market would be people who are somewhat high up within craft breweries in California, especially San Diego.  We would target breweries that are not too large - a brewery of the scale of Stone would be the largest initially as the company would not have the expertise or bandwidth to take on larger projects.  The expectation would be that smaller commercial breweries would make up the majority of the initial clients, and that the company’s services would be focused specifically on the brewing side and would not initially extend to engineering for restaurants associated with breweries.

Even though there are only something like 80 craft breweries in San Diego (which is a lot!), we could still segment further.  Also, in thinking about craft breweries outside of San Diego it is good to have a sense of which breweries are most likely to go for this sort of service.  Here are some thoughts…

1)      Any company that is already trying to do something environmentally friendly is a good audience.  This could mean that they are using local ingredients, are already implementing some energy or water-saving practices, have environmentally-friendly packaging, or in some other way have shown that they care about their environmental impact. 

2)      Any company that is a leader in their local brewing community might be more interested in championing this kind of effort so as not to be behind the times, and they might have more money to make it happen.

3)      There are some brewing companies for whom their brand identity might be bolstered by something like this, either because they’ve had problems with environmental or other issues in the past, they live in a community that places a high value on the environment, or they could generally get some marketing boost from becoming a green brewery.

4)      I think it’s important to remember that breweries are run by people, and people have their own interests.  Getting to know the interests of the people behind the breweries might reveal that they have personally been involved in environmentally-friendly types of work before or might want to get involved in something like that.  Those people can become champions of this type of effort within their companies.

5)      It might be good to look at who different breweries distribute to.  If there are some breweries whose beers are served at bars and restaurants that are either more upscale or more environmentally forward-thinking, they might be more willing to invest in greening their business as a point of promotion among their upscale or enviro-friendly business-level customers.

6)      It might be worthwhile to determine where there could tax credits available for businesses that invest in this type of effort.  If they can get a discount on the service, it might be more appealing.

7)      Determining locations where electricity and water are especially expensive or volatile commodities might help us figure out good locations were people will be more open to the upfront cost of greening a brewery based on the long-term savings and stability.

8)      Breweries that have close relationships or collaborations with other breweries that have done some greening efforts already might have a greater openness to going green themselves. 

9)      New breweries might be more open to starting out green rather than converting to more sustainable processes later.  If we can catch them before they are built, we can help them build in an environmentally friendly way.

So, those are my initial thoughts on audience.  This is exciting!!

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