University Marketing Plan: Craft Beer Industry Analysis in Singapore

This report presents a comprehensive marketing plan developed for RedDot Brewery, a microbrewery in Singapore. It begins with an executive summary and table of contents, followed by an introduction to RedDot Brewery and the context of the craft beer industry in Singapore. A detailed situational analysis is conducted, encompassing external (PESTEL) and industry (Porter's Five Forces) environment analysis, along with an internal (SWOT) analysis of RedDot Brewery. The report then outlines specific marketing objectives, segmentation, targeting, and positioning strategies, along with the marketing mix elements (product, place, price, and promotion). It includes a tactics and action plan, a marketing budget, and a discussion of implementation and control measures. The report concludes with a summary of the key findings and recommendations, supported by a list of references.

Running head: MARKETING PLAN FOR CRAFT BEER IN SINGAPORE
MARKETING PLAN FOR CRAFT BEER IN SINGAPORE
Name of the Student
Name of the University
Author Note

1MARKETING PLAN FOR CRAFT BEER IN SINGAPORE
Executive Summary
The report is based on the marketing plan that is developed for a micro-brewery in Singapore
named RedDot Brewery. The organization has been analysed with respect to the internal
environment, external environment and industry environment. The marketing strategies have
been analysed with respect to segmentation, targeting and position and the marketing mix of
the organization as well. The marketing objectives have also been formed as a part of the
marketing plan of the organization and this has also led to the development of an effective
action plan. The marketing budget required for implementation of the plan has been
examined in detail.

2MARKETING PLAN FOR CRAFT BEER IN SINGAPORE
Table of Contents
Introduction....................................................................................................................3
Situational Analysis of Reddot Brewery........................................................................3
External environment analysis – PESTEL.................................................................3
Industry environment analysis – Porter’s five forces analysis...................................4
Internal environment analysis – SWOT.....................................................................5
Marketing Objectives.....................................................................................................7
Marketing Strategy.........................................................................................................7
Segmentation, targeting and positioning of Reddot Brewery....................................7
Marketing mix of RedDot Brewery...........................................................................8
Tactics – Action Plan.....................................................................................................9
Budget............................................................................................................................9
Implementation and control measures...........................................................................9
Conclusion....................................................................................................................11
References....................................................................................................................12

3MARKETING PLAN FOR CRAFT BEER IN SINGAPORE
Introduction
RedDot is first independent and locally owned commercially operated microbrewery
in Singapore. The name of brand is based on the first encounter that had been experienced by
the founder of the organization. The experience that the founder had when he was on safari
holiday in the year 1997 at the Kruger National Park has been a major factor that influence
the brand name. RedDot BrewHouse is located at Dempsey and the company had taken time
to materialize and to start its operations in the industry as well (Reddotbrewhouse.com.sg
2019). The Brewery is located within a historical building that had rich military history and
also been able to set lush tranquillity that is considered to be irresistible in nature. The second
BrewHouse of RedDot also offers the signature beers that are a part of the row of various
Chinese shop houses. Beers have a history of being one of the favourite beverages that were
enjoyed in the barracks or historical buildings including Boat Quay’s and Tangling Barracks
(Reddotbrewhouse.com.sg 2019).
The report will be based on the marketing plan that will be developed by RedDot in
order to improve its operations in Singapore. Situational analysis of RedDot will be
performed with the help of PESTEL framework, SWOT framework and Porter’s five forces
framework. The objectives of marketing plan will be developed after completion of
situational analysis and marketing strategy will also be analysed in the process. The
implementation and control based measures based on develop action plan will also be an
important part of the marketing plan.
Situational Analysis of Reddot Brewery
External environment analysis – PESTELPolitical factors – The Singapore Beer industry has been influenced in a huge manner
by the high taxes that government has imposed. The regulations have a negative impact on

4MARKETING PLAN FOR CRAFT BEER IN SINGAPORE
the operations and revenues that have been gained by the organizations. The revenue levels of
RedDot Brewery will also be influenced in a huge manner by the government regulations and
policies (Aguinis, Edwards and Bradley 2017).
Economic factors – The per capita based income that has been gained by the
economy of Singapore is considered to be highest in ASEAN. The environment of the
country is corruption free and is able to support the business sector. RedDot Brewery will be
able to gain major support in gaining growth in the future operations.
Social factors – The number of health conscious customers in Singapore is quite high
and this is a major factor that has to be taken into consideration by RedDot Brewery. The
problem of weight gain due to beer consumption is a major social issue in the country
(Albers, Wohlgezogen and Zajac 2016).
Technological factors – The technological improvements have been able to influence
the production process of RedDot Brewery. The quality of beer in Singapore is influenced by
new technologies in the country.
Environmental factors – The rate of recycling of waste is an important part of the
environmental factors that are a part of the beer industry of Singapore. The wastes have been
recycled in order to develop bottles and glasses that are used in beer industry of Singapore.
RedDot Brewery has to implement environment friendly methods in order to develop the
products (Armstrong et al. 2018).
Legal factors – Legal issues in the country have an impact on the operations of
various organizations in the Beer industry of Singapore. The major issues that can be faced
by RedDot Brewery include advertising, packaging and labelling (Frow et al. 2015).

5MARKETING PLAN FOR CRAFT BEER IN SINGAPORE
Industry environment analysis – Porter’s five forces analysisThreats of substitutes – RedDot Brewery faces major threats from the different
alcoholic beverages that include Gin, Whiskey, Wine. The needs of customers in the industry
can be fulfilled easily by various other alcoholic products. The taste of the craft beers is
however not substituted easily by the other products (Grant 2016).
Bargaining power of the suppliers – The organizations in alcoholic beverage
industry have been able to develop highly efficient supply chains with the support of huge
number of suppliers. The number of suppliers in the industry have been able to offer support
to the processes and growth of RedDot Brewery.
Bargaining power of the buyers – The distributors are considered to be major
buyers in the alcoholic beverage industry. The consumers on the other hand also have an
impact on the revenues that are gained by the organizations in the market. RedDot Brewery
has to develop strategies in order to manage the levels of power that have been developed by
the consumers or buyers (Guest 2017).
Threats of the new entrants – The development of operations in the beer industry
requires high levels of capital and proper compliance to the regulations as well. The limited
entry of new organizations is a major advantage for the operations of RedDot Brewery in
Singapore.
Threats of the rivals – The competition levels in beer industry of Singapore are
considered to be quite high. However, inflation rates in the country have an impact on the
prices of products that are provided by RedDot Brewery. The company however needs to
develop competitive pricing in order to maintain the place in beer industry (Heding,
Knudtzen and Bjerre 2015).

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Internal environment analysis – SWOT
The internal environment of RedDot BrewHouse can be analysed in order to develop
the objectives that are related to improvement of its operations in the industry. The four major
factors of SWOT framework related to RedDot BrewHouse can be analysed in the following
way, Strengths – Product portfolio that is provided by RedDot BrewHouse is quite wide
and is able to fulfil demands of different types of consumers. RedDot provides different types
of products that include Czech Pilsner, India Pale Ale, Sauvignon Ale, Summer Ale and
Weizen. Each of the beers is considered to be a delicate composition of the ingredients and
the products are considered to be pride of the brewmaster. The ten years long brewing
experience that has been developed by the company is considered to be an important factor
that is able to attract the customers. The levels of brand loyalty of customers of the
organization are considered to be a major strength of RedDot BrewHouse (Helfat and Martin
2015). Weaknesses – RedDot has not been able to introduce many new products in the
industry due to which the new customers can be attracted by the organization. RedDot has not
penetrated new markets quite frequently and the company needs to target the emerging
countries in order to increase awareness about its products. The profits and revenues of
RedDot Brewery has been reducing in even though the company has developed a strong
financial position (Hitt, Ireland and Hoskisson 2016).
Opportunities – The increase in levels of disposable income of individuals in the
emerging markets have been able to provide major growth opportunities to RedDot Brewery.
The organization can improve the revenue levels by increasing its presence in different
countries with the help of the unique products that are developed. This will be able to play a

7MARKETING PLAN FOR CRAFT BEER IN SINGAPORE
major role in the ways by which RedDot Brewery can gain a larger share in the market. The
organization can also plan for the development of low carb based beer in order to attract the
health conscious customers (Iyer et al. 2015).
Threats – Competition is a major threat for RedDot in order to uphold its place and
profitability in the brewery industry. The substitute products of beer that are preferred by the
customers is also a major threat that is faced by the organization. The laws that have been
developed by the government are able to provide threats to the RedDot Brewery and its
shares in the market as well (McDonald 2015).
Marketing Objectives
The marketing objectives that are developed by an organization are mainly based on
its future operations in the industry and enhancing its revenues as well. The objectives need
to be achievable in nature and are based on a certain time frame as well. RedDot Brewery can
set the following objectives in order to sustain its place and revenues in the industry.
 To increase the shares of RedDot Brewery in the industry and facing the
competition in the market.
 To develop effective promotional strategies with the usage of different tools
that include social media, digital media, print media and TV advertisements as
well.
 To enhance the presence of RedDot in Brewery industry in various countries
with the help of mergers and acquisitions (Milligan and Voute 2019).

8MARKETING PLAN FOR CRAFT BEER IN SINGAPORE
Marketing Strategy
Segmentation, targeting and positioning of Reddot Brewery
The process of segmentation, targeting and positioning process can be implemented in
order to divide the customer groups based on choices and demands. This process can also be
used for the analysis of the customer segments that have to be targeted by RedDot Brewery.
Segmentation – RedDot Brewery has a presence in the alcoholic beverage sector and
the organization has implemented a mix of geographic and psychographic segmentation
based strategies in order to develop various customer segments (Payne, Frow. and Eggert
2017). Targeting – The differentiated strategy of targeting has been applied by Red Dot
Brewery for the purpose of offering the different products to various customer segments. The
various products of RedDot Brewery have been offered to various customer segments.
Positioning – RedDot Brewery implements product class based and user benefit
positioning in order to highlight the benefits of various offerings of the organization. The
flavour of the products and their quality are considered to be an important part of the
positioning strategies that have been applied by RedDot Brewery (Prajogo 2016).
Marketing mix of RedDot Brewery
The marketing mix of RedDot Brewery will be analysed in order to develop the
marketing strategy of the firm for its future operations.
Product – RedDot Brewery offers five different types of products that are based on
the tastes of customers in the industry. The Brewery industry is able to fulfil the needs of
different types of customers with the help of various products.

9MARKETING PLAN FOR CRAFT BEER IN SINGAPORE
Place – RedDot Brewery has its operations in the countries like Australia and has
been able to develop a major place in the industry as well. RedDot has been able to offer key
levels of competition in Brewery market of Singapore as well (Sparrow, Brewster and Chung
2016). Price – The prices of the products have been quite moderate and the organization has
targeted customers belonging to various segments. The price levels have been able to play a
key part in developing and maintaining the customer base of RedDot.
Promotion – The online and offline promotional strategies are used by RedDot in
order to upsurge the levels of awareness based on the products provided to customers. The
promotional strategies have been able to play a key part in development of an effective
position of the firm (Teece, Peteraf and Leih 2016).
Generic strategy implemented by RedDot Brewery – The generic approach that
has been implemented by RedDot Brewery is based on the combination of cost leadership
and differentiation. The prices of the products are set in a competitive way in order to sustain
the position of the organization in the industry. However, the quality of craft beer that is
manufactured by the firm is considered to be a key differentiating aspect that has an impact
on the proper operations of RedDot in the brewery industry (West, Ford and Ibrahim 2015).
Tactics – Action Plan
Action required Strategic link Who will do
this?
By when?
To increase the shares of
the company.
Marketing strategy Marketing manager 1 year

10MARKETING PLAN FOR CRAFT BEER IN SINGAPORE
To develop the
promotional strategies.
Promotional strategy Marketing manager 1 year
To enhance the presence of
the organization in minds
of consumers.
Marketing strategy Marketing manager 1 year
Budget
Promotions
Product
giveaways 50 $8.00 $400.00
Product
discounts 300 $3.00 $900.00
Special offers 200 $2.50 $500.00
Promotions Costs Total $1,800.0
0
Advertising
Brochures
(development and
production)
5,000 $0.15 $750.00
Mailings 15,000 $0.04 $600.00
Postcards 15,000 $0.03 $450.00
Television 2 $600.0
0 $1,200.00
Radio 4 $300.0
0 $1,200.00
Newspapers 6 $220.0
0 $1,320.00
Billboards 2 $556.0
0 $1,112.00
Social media 3 $125.0
0 $375.00
Advertising Costs Total $7,007.0
0
Implementation and control measures
The control process is defined as the attempt to guarantee the behaviour and the
systems that is based on the development of policies and corporate objectives of the
organization as well. The process of control is considered to be important for the purpose of
measuring the levels of efficiency of the action plan. The measurement process is considered

11MARKETING PLAN FOR CRAFT BEER IN SINGAPORE
to be helpful for deciding whether the developed plans have been successful. RedDot
Brewery needs to implement the control measures in order to understand the ways by which
effectiveness of action plans can be understood (Payne, Frow. and Eggert 2017). The
following steps can be implemented in order to analyse the action plan effectiveness,
 Set targets – The targets have to be set by the organization in order to
accomplish the goals.
 Predetermination of measurement methods – The process of performance
appraisal is an important part of the control methods implemented by RedDot
Brewery (Grant 2016).
 Measuring the results that are compared to the targets and corrective actions
that have to be taken.
 Finance – The levels of investments, cash and working capital have to be
analysed by the management of RedDot Brewery.
 Operatives – The usage of resources, capacities and the application of various
machines are an important part of the control method of RedDot Brewery
(Aguinis, Edwards and Bradley 2017).
 People – The employees and human resources are considered to be an
important part of the processes and operations of RedDot Brewery. The
requirement of human resources is managed in this step.
 Efficiency – The levels of efficiency of the capacity usage and human resource
usage have to be analysed in this step by the management of RedDot.
 Effectiveness – The impact of various steps that have been taken as a part of
the action plan developed by RedDot will be examined in this step (Helfat and
Martin 2015).

12MARKETING PLAN FOR CRAFT BEER IN SINGAPORE
Conclusion
The report is based on the marketing plan that has been developed for the purpose of
analysing the future operations of RedDot Brewery in Singapore. The situation analysis based
on external environment, internal environment and industry environment has been able to
support the development of the marketing plan of RedDot in the industry. The marketing
objectives and marketing strategies have also been developed with the help of the situational
study. The action plan and controls are formed in with respect to various marketing
objectives of the firm.

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