Bus 5112 Value Proposition Statement Based on the Four P’s of Marketing
Abstract
This paper defines a Value Proposition Statement based on the four P’s of Marketing: product, price, place, and promotion. The subject is the Breckenridge Brewery, located in Colorado, and the brand’s marketing mix crucial to be considered when developing product strategy or tactical marketing decisions.
Keywords: Breckenridge Brewery, Four P’s of Marketing, product, price, promotion, and place
Breckenridge Brewery – Value Proposition
The business this paper explores is the Breckenridge Brewery in Colorado, well-known for crafting a beer portfolio of classics that include the popular Brewery Lane Series, seasonal brews, barrel-aged beers, and a series of nitrogen-charged canned beers. Hand-crafted beer is the primary product of the business. However, the Breckenridge Brewery is committed to delivering a rich experience for visitors to its 12-acre campus with tours, tastings, gifts, and dining with views of the Rocky Mountains making this brewery a destination spot for locals and visitors.
The Four P’s of Marketing
“Marketing is simplistically defined as ‘putting the right product in the right place, at the right price, at the right time.’ Though this sounds like an easy enough proposition, a lot of hard work and research needs to go into setting this simple definition up. And if even one element is off the mark, a promising product or service can fail completely and end up costing the company substantially” (Martin, 2014). The four P’s of marketing: product, price, place, and promotion are essential elements of a solid marketing plan.
Product
Defining the “product” or product strategy is a positioning exercise to consider all aspects of how a product is designed to be perceived by consumers (3 P’s, 2019). This perception is key in moving to the price strategy. Product is an intangible service or a tangible good intended to meet a specific customer purpose or need. To understand the brewpub customer (imperative in understanding perception), analysts and marketers can look at client demographics. Traditionally, demographics for a craft beer customer were Caucasian males, average age 39, good income, living within 10 miles of the pub. Watson (2011), Chief Economist of the Brewer’s Association tells us the emergence of Millennials is rapidly changing the profile to a more diverse demographic group. Brewery clientele includes more and more women, diverse age groups, and different races or backgrounds although education and income remain high in this target group which ties into the price.
Price
How a product or service is priced directly affects how well it will sell. The amount the customer expects to pay is their perceived value of the product – not the objective costing of it (Martin, 2014). Breckenridge Brewery models its price structure in comparison with other Colorado breweries and brewpub restaurants. However, Breckenridge Brewery and its products and services are not the lowest priced among comparable competitors. Customer perception of a fair price is affected by the beautiful mountain backdrop, the tours, and sophisticated beer tasting gardens, and elegant dining that enhances the customer experience during their visit. Bottled beer products that are sold in liquor stores, restaurants, or shipped are priced slightly more than comparable craft beers but customers in this target group expect a bigger price for a better brew.
Place
From the product and pricing strategies, a brand can develop a solid distribution plan. “The perceived value of the product is closely tied in with how it is made available” (Martin, 2014). Breckenridge Brewery’s beer products are perceived by the consumer as being hand-crafted by brew artisans. It makes sense to invite the customer in to experience tastings of these specialized beverages on-site in the elegant beer garden where they can discuss how these beers are crafted with knowledgeable staff and “beertenders” lending credence to the perception that these products are superior.