Marketing Insights, Analysis and Planning for Brewdog

The report provides situational analysis of internal and external environment of Brewdog, SWOT analysis and PESTLE analysis to determine the opportunities and threats within industry and also assess the elements that drive profitability, volatility and growth.

Marketing insights, analysis
and planning

Table of Contents
INTRODUCTION...........................................................................................................................3
Situation analysis of the Internal environment of Brewdog........................................................3
Situation analysis of the External environment of Brewdog......................................................5
SWOT analysis............................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The project is based on market analysis, insights and planning in which the situational
analysis of internal and external environment of organisation and SWOT analysis based on the
findings of the situational analysis is determined. For this report, the chosen organisation is
Brewdog, it was founded by Martin and James ion 2007. In order to establish the business they
have leased the building in Fraserburgh by taking a bank loan and spent money on stainless steel
and started their business by making some hardcore craft beers (Smith, 2018).
Situation analysis of the Internal environment of Brewdog
The situational analysis of internal environment of Brewdog looks the factors within
business such as strength and weakness. One of the effective strategic management tool which
helps in analysing the internal environment of Brewdog is VRIO analysis.
VRIO analysis
VRIO analysis helps in evaluating the resources and capabilities of Brewdog. It generally
includes four element such as Value, rare, imitable and organised.
Value:
 The Brewdog is an evolving company due to which analysis shows that the financial
resources of the brand is high valuable as it helps in investing into external opportunities
that arises.
 It's beer product is considered as valuable as they produce hardcore craft beers. The main
motive of Brewdog is to make other people passionate about great craft beer (Smith,
2018). According to the analysis, the perceived value of customer is high as they offer
highly differentiated beer.
 The employees of Brewdog is considered as valuable resource to company as they are
highly trained for the process of brewing. They provide effective training in order to
boost the knowledge and skills of staff and ensures that they must follow the process of
brewing such as mashing, lautering, boiling, fermenting, conditioning and packaging.
Rare:
 The financial resources of Brewdog is considered as rare as they have strong financial
resources which are possessed by few firms only. They have also opened a new Brewdog
bar across the UK and enhance their revenue by 95% (Brown, Ng and Adebola, 2020).

 The employees of Brewdog are rare resource as they are highly trained by the employees
and also they get motivated by offering high compensation and positive working
environment.
 Craft beer of Brewdog is not considered as rare resource as it is sold by many competitors
with similar price. The competitors of Brewdog use the resources in same way due to
which it becomes difficult to gain competitive advantage.
Imitable:
 The financial resources of Brewdog is costly to imitate as these resources are acquired by
company through their profits due to which they have expand their business in different
countries.
 Employees of Brewdog are not so costly to imitate as their competitors also provide
training and development opportunities to their staff due to which it becomes easy to gain
competitive advantage by producing new ideas and opinions (Alfeo and et. al., 2019).
 The Craft beer of Brewdog is not so costly to imitate as there are various competitors of
company that sell similar products by bringing some innovations.
Organised:
 Brewdog have organised financial resources due to which they can invest their money in
right manner at right place.
 The employees of company is not so organised as they get switched according to their
experiences and qualification. The human resource of Brewdog hire and fire the staff in
order to cultivate new innovation and process of working.
 Craft beer of Brewdog is not so organised as they bring changes in the flavour and
ingredients of beers.
Situation analysis of the External environment of Brewdog
The situational analysis of the external environment helps in determining the
opportunities and threats within industry and also assess the elements that drive profitability,
volatility and growth. For analysis the external environment of Brewdog the effective tools are
porter's five forces and pestle analysis.
Porter's five forces
Bargaining power of Buyer:

The bargaining power of buyer mainly determines how buyer's can influence the
performance and growth of beer industry. Craft beer is not a necessity of people they generally
but the product to fulfil their desire or wish (Franciski and et. al., 2018). In beer industry, the
bargaining power of buyers is low as people don't buy beer on regular basis due to which
Brewdog have an opportunity to increase their profitability and compete in less competitive
environment.
Bargaining power of suppliers:
The bargaining power of suppliers influences the prices of inputs, it mainly includes cost
of equipments and raw materials, utility expenses, wages, etc. In beer industry, the bargaining
power of buyers are low as they don't have a power to influence the price as there is a
involvement of government.
Threats of new entrants:
Threats of new entrants in beer industry is low as it requires a lot of investment to
establish new business in beer industry and compete with existing players. In order to tackle the
threat of new entrant it is important for Brewdog to develop brand loyalty by focusing on
customer relationship management.
Threats of Substitute products:
In beer industry, there is a high threat of substitute product as there are many competitors
of Brewdog that mainly focus on bringing new and innovative beer product that satisfy the needs
ad requirement of people (Greer, 2019). In order to tackle the threat of substitute product it is
important for Brewdog to focus on development of unique beverage by conducting research in
market.
Rivalry among existing competitors:
The rivalry among competitors can be caused by the ability of buyers to switch brand
preference. In beer industry, the rivalry among existing competitors are high as there are many
competitors of Brewdog which deals in similar products with different price. The brand can face
strong pressure from their rivalry firms which influence their growth potential and profitability.
In order to reduce the impact of Brewdog competitors it is necessary to fulfil the needs and
expectation of customers (Burini and et. al., 2021). The few competitors of Brewdog are
Carolina Beverage Group, Deschutes, Brewery and Mike's Hard Lemonade, etc.
PESTLE Analysis of Brewdog

Political:
In UK, the beer industry is heavily dependent on taxation regulation and also the
ingredients to the labels of cans are approved by government before product hit the shelves.
Economical:
It is important for Brewdog to understand the economic factors in order to expand their
business in international market. If there is a decline in beer consumption it influences the
profitability and growth of Brewdog.
Social:
Brewdog must focus on changing the attitude of people towards the crafted beer by
conducting social campaigns so that they can reduce the negative effect of alcohol on the
people's health.
Technological:
Brewdog must focus on implementing new technology in order to gain competitive
advantage in UK market (Yeager and Gatrell, 2020). They must continuously show progress in
producing and packaging the product with innovative techniques.
Environmental:
The company must focus on reducing the environmental impact by organising social
campaigns and reducing the negative influence of beer among the people.
Legal:
Brewdog must focus on implementing the legal laws such as excessive alcohol
consumption, restrictions on drinking age and drinking in public place. By implementing the
laws related to alcohol helps in improving the brand image and reputation of Brewdog (Cabras,
2018).
SWOT analysis
It is being analysed from the above situational analysis that company have strength,
weakness, opportunities and threat which helps them to compete in competitive environment.
Strength:
The strength of Brewdog is its unique crafted
beer. They brewed 55 % abv beer and packed
it in roadkill and also it makes world's most
expensive beer by fusing the seldom-colliding
Weakness:
The weakness for Brewdog is new regulations
and laws which can influence the performance
and growth of business. It is important for
Brewdog to follow the legal laws related to

worlds of art, taxidermy and raft beer. alcohol.
Opportunity:
Opportunity which can be grab by Brewdog is
to implement new technology that improves
the experience of customers. The other
opportunity which must be implement by
Brewdog is to fulfil the needs and requirements
of customers so that they can create strong
customer base and make them loyal towards
the brand.
Threat:
The threat which can influence the productivity
and performance of Brewdog is its competitors
(Nave and et. al., 2021). It is important for
company to conduct competitors analysis in
order to identify the moves and action of its
competitors in UK.
CONCLUSION
It is being concluded from the above information that SWOT analysis helps in identifying
the strength, weakness, opportunities and threats of company which can influence the
profitability and growth of business. Through swot analysis, organisation can understand their
business in better aspect and also focus on addressing their weakness. It helps in detecting threats
and capitalising on opportunities due to which firm can achieve competitive advantage and
sustain in market for long run. It also helps in increasing the market presence and growth of
company. The Internal environment of Brewdog generally includes the factors which are
controllable such as mission, strategy, product development or organisational culture. The
company can grab the opportunity to care about the world class craft beer and offers
extraordinary beers that blows the mood of people and kick start a revolution.

REFERENCES
Books and Journals
Alfeo, V and et. al., 2019. Microbreweries, brewpubs and beerfirms in the Sicilian craft beer
industry. International Journal of Wine Business Research.
Brown, A., Ng, C. W. and Adebola, T., 2020. Intellectual Property Rights, the Public Interest
and COVID-19.
Burini, J. A and et. al., 2021. Selection of Saccharomyces eubayanus strains from Patagonia
(Argentina) with brewing potential and performance in the craft beer industry. European
Food Research and Technology, pp.1-13.
Cabras, I., 2018. Beer on! The evolution of micro-and craft brewing in the UK. In Economic
Perspectives on Craft Beer(pp. 373-396). Palgrave Macmillan, Cham.
Franciski, M. A and et. al., 2018. Development of CO2 activated biochar from solid wastes of a
beer industry and its application for methylene blue adsorption. Waste Management, 78,
pp.630-638.
Greer, D. F., 2019. Beer: Causes of structural change. In Industry studies (pp. 27-58). Routledge.
Nave, E and et. al., 2021. Craft beer–a systematic literature review and research
agenda. International Journal of Wine Business Research.
Smith, R., 2018. the BrewDog business story. Research Handbook on Entrepreneurship and
Leadership, p.403.
Smith, R., 2018. The rise of the underdogs: situating and storying ‘entrepreneurial leadership’in
the BrewDog business story. In Research Handbook on Entrepreneurship and
Leadership. Edward Elgar Publishing.
Yeager, C. and Gatrell, J. D., 2020. Brewpubs and Microbreweries: A Midwestern Geography of
Local Craft Beer Markets by Firm Type. Geography of Beer: Culture and Economics,
pp.159-168.