Entrepreneurial Marketing: Elland Brewery Challenges & Opportunities

This report provides an analysis of Elland Brewery's entrepreneurial marketing strategies, considering both macro and micro environmental factors. It evaluates opportunities and challenges within the brewery's macro environment using PESTLE analysis, examining political, economic, social, technological, legal, and environmental influences. The micro environment is assessed using Porter's Five Forces, focusing on the bargaining power of buyers and suppliers, the threat of substitutes and new entrants, and the degree of rivalry within the brewing industry. The report identifies issues within Elland Brewery's current marketing activities and offers creative recommendations using entrepreneurial marketing tactics to improve the company's revenue and market position. The analysis takes into account the client brief, which defines Elland Brewery as a micro-brewery operating under the UK Progressive Beer Duty threshold.

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Business Management

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Executive Summary
The main aim of this assignment is to emphasise the importance of the entrepreneurial marketing
strategy. The client brief of Elland Brewery is taken into consideration for the purpose of
showing the macro environmental factors and micro environmental factors. The opportunities
and challenges are discussed under this assignment within micro and macro environment of
Elland Brewery. There are number of issues in current marketing activities of the company
which are described under this assignment. Recommendations are provided in order to reduce
them in order to increase revenues of the company.

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Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................4
Evaluation of the opportunities and challenges...............................................................................5
Opportunities and challenges within the MACRO environment.....................................................5
Opportunities and challenges within the MICRO environment......................................................8
Issues relating to the clients current marketing activities..............................................................10
Creative recommendations for your chosen client using entrepreneurial marketing tactics.........12
Conclusion.....................................................................................................................................13
References......................................................................................................................................15

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Introduction
The role of entrepreneurial marketing practices is to avoid the basic principles of marketing as
they are majorly formed for large and well established firms. Entrepreneurial marketing has
some features such as opportunity focus, pro-activeness, resource leveraging, value creation and
customer intensity. It covers various aspects for the company in the form of opportunities and
threats by which the company can get alert regarding hazardous situation and make potential
strategy to overcome the challenges. This assignment will cover the client brief of Elland
Brewery in which the discussion will be made on Micro-Brewery. The discussion will be made
regarding the macro and micro environments in which opportunities and challenges will be
elaborated in an efficient manner. Various tactics of entrepreneurial marketing will be
demonstrated to make creative recommendations so that the company can reduce confronts
within the business.
About client brief
A micro brewery is being elaborated by HMRC as a small-scale brewery operating that is
covered by UK Progressive Beer Duty entry of 5,000 hectolitres annually. Elland has to put a lot
of efforts to expand its business and for direct supply to the pubs. There are number of
challenges faced by company in order to get famed all over world. The taste of customers is
changed as per ongoing trend and it is hard for the company to fulfil their demand by considering
latest technology. The company has small space of production which is the major cause of less
selling that is why it is required by the company to keep focus on the space to grow production
capacity.

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Evaluation of the opportunities and challenges
Opportunities and challenges within the MACRO environment
Pestle is the good framework to analyze the situation of the company in the context of showing
opportunities and threats. It is viral for the company to keep focus on such factors in order to
develop good manufacture condition of brewery. Pestle is mentioned below:
Political
The role of the political in the success of the company keeps huge importance as it is vital for the
Elland Brewery to analyze all policies in UK to get success. Elland Brewery provides cask-
conditioned beers to its customers. The brewery has the capacity to brew 50 barrels in a week
and the suppleness to provide customers a choice of dozen beers at one time. It has been found
that the company has a range of bottled beers, entailing a bottle-conditioned version of 1872
Porter which is considered as the Champion Beer of Britain 2013 (Beer & Brand, 2017).
Economical
There is national and international economic downturn in UK by which people usually have less
disposable income for socializing. It has been found that UK government has allowed generating
more jobs in Pub which increase the rate of employment in the country. The company wants to
develop its standalone brand by developing a new product for more production. For such
scenario, the economic situation of UK is good enough in which the company can take risk of
developing new products as GDP of UK is 39,720.44 USD (Beer & Brand, 2017).
Social

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The taste of people towards product keep significant value for the company to generate products
in order to remain in the competitive advantages, it has been found that there are many
competitors exist of Elland Brewery that make beer for a large level and gained trust of
customers. It is hard for the company to move on developing new products to draw the attention.
The company need to focus on pricing strategy to draw attention of the customers towards the
new product.
Technological
Technology facilitates to brewing industry companies to keep focus on effective distribution
channels in order to upgrade the range of facilities with technology that amplifies the brewing
process in order to improve the quality of the harvesting process. Elland Brewery needs to focus
on latest technology to expand its production range so that the growth of the company can be
increased in a significant manner.
Legal
There are various factors of legal that need to be followed by the company at the time of
packaging, advertising and labelling. There should be consideration of age factor in which it
should be clearly mentioned that the customer age must be over 21 years. There are many
countries in which the advertisement of beer is banned such as Middle Easy and Islamic
Countries. Therefore, it is required by the company to obey the rules so that the culture can be
maintained.
Environmental

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There are major two factors such as recycling beer and water conservation and energy treatment.
It has been found that the brewer suppliers tend to improve the beer packaging that lead the
company to amplify of the recycle rate of paper, cardboard, waste plastic, aluminium and glass
that are taken into consideration to package developed beer cans and beer bottles. The company
need to focus on such activities in order to increase the corporate social responsibility.
Opportunities within the Macro environment
There are major opportunities within the Macro environment of the company as the company
expand its business in different countries to make its image good in the view of the customers. It
would be great chance for the company to focus on CSR activities which would help company to
focus on effective manufacturing system (Ulubeyli, 2017). It has been found that brewing
technology has been obtainable to anyone who wants it by beer-making kits. Moreover, there is a
great opportunity for Elland Brewing to get access to a huge variety of hops. It has been analyzed
that the political and economic consideration of UK is favour to the company through which the
company can increase the production or switch to develop new products to getting attention of
the customers.
Challenges within the Macro environment
Macro environment consist some challenges for Brewery Industry as Elland Brewery can face
confronts in the term of politics. It is because of the Brexit as UK had been separated from
European Union through which the country has to make its own rules which can impact entire
industry. However, economic condition of the country is good but there is need to keep focus on
such employment rates (Bayani and Dakila, 2017). Due to lower income, people do not prefer to
drink. In the context of social factor of macro environment, it has been found that to drink beer is

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not socially accepted which can be the major reason of less productivity of the company,
company need to have license for manufacturing beer which can amplify the cost of beer. There
is another challenge of technology as it has been found from client brief that the company is not
able to produce 59BBL per week due to lack of smaller capacity kit. The company uses
traditional method to produce beer which can bring confront of increasing cost as involvement of
the company in the latest technology can increase the cost of training and machines (Cabras and
Bamforth, 2016). Elland Brewery can face the issues of environmental disaster which can impact
the raw material of the company.
Opportunities and challenges within the MICRO environment
To elaborate the opportunities and challenges within the Micro environment, Porter’s five forces
is the strategic framework which will help out Elland to keep focus on threat and substitutes of
products. Porter’s five forces are mentioned below:
Bargaining power of buyers
Buyers are demanding a lot as their desire to buy best offerings through minimum price. This put
pressure on Elland Brewer profitability in the context of long term. The company can use this
term in the range of opportunity as the company can build a huge base of customers. It would be
effective for the company by two means. Firstly, the bargaining power of buyers can be reduced
along with it would offer opportunity to the organization to streamline its sales and production
process (Amienyo and Azapagic, 2016). There is a huge challenge for the company due to low
dependency on distributors. Along with that switching cost of the customer is higher for this
industry which can be the major reason of less profit within the company.
Bargaining power of suppliers

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There are numbers of suppliers available from which almost every brewer industry buy raw
material. Suppliers in dominant position can reduce the profit of Elland Brewer which can be
earned by the company in an efficient manner. There are number of powerful suppliers in brewer
industry that use their negotiating power to increase higher prices from the organization of
beverages. This challenge should be reduced by the company by taking consideration of
developing effective supply chain with multiple suppliers (Deconinck and Swinnen, 2016).
Threat of substitutes
The profitability of the industry can suffer in a drastic way when a new product meets the need
of the customers in different manner (Jones and Harvey, 2017). There are various products in the
alcohol which can divert the attention of the customers towards them. It is challenging task for
the company to get overcome from such issues as there are number of competitors that produce
whiskey, vodka, shots and many other alcohol product by which the customer can change their
taste, along with that the taste and need of the customer change as per their demand and status as
they prefer high standard alcohol to maintain their standards in the society (Miller and Weinberg,
2016). This kind of situation can increase the threat of substitutes by which company has to
reduce its production. Elland Brewer can reduce such challenge by being service oriented and
taking consideration of the needs of the customer instead of focusing on what customer is
buying. It is the major challenge for the company which can be
Threat of new entrants
It is quite tough for the new organization to enter in the brewer industry as they need to high
investment. Along with that there are number of brewer organizations such as Craft breweries,
SIBA and many more. The threat of new entrants is low as new competitors cannot come in this

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industry because the trust of the customer keeps significant value within the business. There is
undifferentiated product within the business (Berning and McCullough, 2017). However, the
chance of growth of the market keeps huge value that force new competitors to enter in the
market in order to expand the business.
Degree of rivalry
The range of competitors is high within this industry as numbers of competitors come in the
market in order to attain the competitive advantages. If the competitors among the remaining
players in an industry are competitive then it leads the industry in the low profitability area
where company has to reduce the margin on product. It is the biggest challenge for the company
which can be reduced by building a sustainable differentiation (Friske and Zachary, 2018).
Along with that it is necessary for the company to focus on the collaboration with competitors in
order to increase the market size sooner than competing for small market.
With the help of above discussion, it can be described that the company should focus on various
aspects to attain the competitive advantages such as collaboration with competitors, innovating
new product and services and by generating a high range of customer base. There is an
opportunity for the company to expand its business by increasing the number of production in an
excellent manner.
Issues relating to the clients current marketing activities
Elland brewery has number of activities in the market to attract a huge range of customers
towards the product. It has been found that Elland Brewery was awarded in the Great British
Beer Festival for their 1872 Porter (Beer Brewing, 2017). The company got brand image due to
its award as number of people prefer it. It has been analyzed that the current location of the

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company is not full of capacity and the company has potential to produce 40-50 BBL, relied on
the potency and kind of beers brewed. The company is not in the position to produce 59BBL per
week due to lack of resources. It is the major challenges for the company to move ahead with
lack of resources (Danson, Galloway, Cabras and Beatty, 2015). The activities of micro
breweries are high quality beer production, grassroots marketing, local consumer insights to
guide product development and effective product story made to the target demographic.
The issues are mentioned below with taking consideration to the clients marketing activities.
 At the time of researching, it has been analyzed that Elland Brewery has main focused on
the production for which the company is engaged in production every time. It reduces
other activities like office tours and understanding regarding management.
 Technology has become advanced in today’s world and Elland has low scope of
expanding latest technology as it would cost high investment. It is the major issue for
producing 59 BBL due to lack of technology.
 The flatness in the brewing industry can be the major cause of attribution in market
saturation (Zanotti, Reyes and Fernandez, 2018).
 Micro brewery has to set the priorities as per their size or activities. The competition has
increased day by day in brewing industry due to get legal permission of having beer for
more than age of 21 years.
Generally, the business of microbreweries produces less than 15,000 barrels annually, and
majorly sells their production around 75% of their output. The company enjoy upper level of
growth in starting, but often hard to handle and develop on that momentum (Kahouli and Omri,
2017). They business on their major local roots and generate high quality products.

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Microbrewery has ti face number of challenges in the form of attracting number of customers
that is why they have to leverage local customer insights to focus on developing innovative and
high quality products. Their small size becomes the liability for their business.
Creative recommendations for your chosen client using entrepreneurial marketing tactics
It has been analyzed through Elland Brewery client brief that this micro brewery has opened up a
wide step ahead with the initiating of new micro pub which name will be Elland Craft and Tap,
which will be helpful in reducing the issues within the business. This innovative business would
allow the company to distribute their own beer to the customers to reduce the mediator costs and
to increase the margins on such products (Marinov and Marinova, 2018). The premise will also
entail contains space which can be helpful for the company to focus on conducting meeting so
that proper discussion could be made. The company has no in-house marketing expertise but the
company has graphic designers to generate labels and pump clips for the products of the
company. There are some recommendations mentioned below in the context of getting respect in
the form of micro pub in brewing industry. Entrepreneurial branding is chosen for this
assignment in order to provide recommendations for operating new business to attract customers.
To reach out to new markets, it is required by Eland Brewery to keep focus on the new brand
strategy.
New brand strategy
There is a new brand strategy for Elland Brewery by which the company would be able to attract
large number of customers. This new brand strategy would be advertisement brand strategy in
which the company should focus on advertisement of their products for the purpose of reaching
out number of customers (Vrellas and Tsiotras, 2015). With the help of massive ways of