Analyze Your Market Performing market research will assist you in collecting accurate and specific information about your consumers and competitors, which is a critical part of the planning process.
Consumer demands impact and direct all aspects of your business’ activities and can, ultimately, dictate the success or failure of your craft brewery. The tasks that should be completed when performing your market research include:
Market Analysis – The goal of a market analysis is to determine the attractiveness of a market, both now and in the future. Entrepreneurs can evaluate the future attractiveness of a market by gaining an understanding of evolving opportunities and threats as they relate to their business’ own strengths and weaknesses. Conducting a market analysis will also assist you in determining if there is enough of a need in your target marketplace for the product(s) you are offering, what your consumers want, how to best present your product(s) to them, etc. The following is an outline of a market analysis:
- Market Size (Current & Future)
- Market Trend
- Market Growth Rate
- Market Profitability
- Industry Cost Structure
- Distribution Channels
- Key Success Factors
Competitive Analysis – A competitive analysis is a critical part of your craft brewery’s marketing plan. Conducting a competitive analysis will help you to establish what makes your craft brewery and beer unique and, therefore, what unique attributes you should promote in order to attract your target market. Some questions you may ask yourself when completing a competitive analysis include:
- Who are your competitors?
- What products do they sell?
- How much do your competitors charge for their products?
- What is each competitor’s market share?
- What are their past & current strategies?
- What types of media do they use to market their products?
- What are each competitor’s strengths and weaknesses?
- What potential threats do your competitors pose?
- What potential opportunities do they make available for you?
Research Industry Trends – Conducting your own research on the latest industry trends is important, as it can help you better understand the industry you are entering and it can help you determine how the current position of the industry could impact your business, both positively and negatively.
Prepare Your Marketing Plan – Your marketing plan is an essential part of your overall business plan. Potential investors and lenders want to see how you plan on making money and without a solid business or marketing plan, your chances of receiving financing is pretty slim. When you develop your marketing plan the information that you’ve collected during your market research should be used to reinforce any statements that are made. The purpose of your marketing plan is to help you:
- Assess your consumer needs & develop a suitable product
- Convey unique attributes to your target audience
- Establish suitable distribution channels
- Determine the most effective ways to promote your business & products
- Determine the best suited advertising / marketing tools & venues
Get started your brewing business today!