Get a watermark-free, fully customizable competition study in our business plan for a craft brewery
In the dynamic world of craft brewing, understanding the competitive landscape is not just beneficial—it's essential for your brewery's success.
This blog post will guide you through the process of conducting a thorough competition study for your craft brewery business. We'll cover how to pinpoint your main competitors, both direct and indirect, and how to assess their strengths, weaknesses, and strategies. With this valuable knowledge, you'll be able to carve out a unique niche for your brewery and stand out in the bustling craft beer scene.
If you're looking for a ready-made competition study that's fully customizable, be sure to explore our business plan template designed specifically for craft breweries.
What is exactly a "competition study"? Should you make one for your craft brewery?
A competitor study in the context of a craft brewery involves a detailed examination of other breweries that you're in competition with.
This includes direct competitors, such as local craft breweries in your vicinity, and indirect competitors, like large-scale commercial breweries or even bars and liquor stores that sell craft beer.
The goal is to dissect their strengths, weaknesses, operational tactics, and market performance to pinpoint opportunities and threats for your own brewery.
Why do craft brewery owners conduct competitor studies? Simply put, knowledge equips you with power.
By understanding the competitive field, you can sharpen your brewery's unique offerings.
For example, if you find that most local breweries focus on traditional ales and lagers, you might spot a niche for innovative or experimental brews. Or, if you notice a gap in breweries with robust sustainability practices, this could be an area for you to lead and stand out.
The advantages of performing a comprehensive competitor analysis, similar to what you would find in our business plan template tailored for craft breweries, are numerous. It steers you clear of the mistakes your competitors have made and helps you exploit weaknesses in their business models. It can spark creativity in your beer selection, branding, marketing strategies, and overall customer engagement.
Additionally, understanding your competitors can inform your pricing strategy, ensuring your products are competitively and appropriately priced within the market. It also keeps you nimble, allowing you to adapt to changes in the industry quickly and effectively.
Should you conduct a competitor study if you're launching a new craft brewery? Absolutely.
Starting a brewery without a grasp of the competitive environment is akin to navigating without a map. A competitor study sheds light on the terrain, aiding you in overcoming obstacles and capitalizing on openings. It's a critical component of your business planning, setting the stage for a strategic approach that focuses not just on market entry, but on long-term success.
Is a competitor study useful for you? Indeed, especially if you want to make savvy decisions that will distinguish your brewery. Whether it's carving out your unique selling points, pricing your products right, or choosing the most impactful marketing avenues, a competitor study delivers the insights necessary to make those choices with assurance.
It's not merely about tracking what others are doing; it's about figuring out how you can do it better or differently to attract and retain customers.
How to conduct a competition study for your craft brewery?
To conduct a competition study for your craft brewery, start by collecting data on local breweries, including their beer selection, pricing, customer feedback, and promotional tactics.
Next, contrast these elements with your own brewery to pinpoint what sets you apart and where you can enhance your offerings.
For a structured approach, we offer a detailed competition study template that you can customize with your data in our business plan for a craft brewery.
To streamline the process, here's a 10-step action plan to create a meaningful competition study for your craft brewery.
Step | Action | Details |
---|---|---|
1 | Identify your competitors | List nearby breweries and those that target a similar market niche. |
2 | Examine their beer selection | Compare their beer styles, seasonal offerings, and flagship brews to yours. |
3 | Analyze their marketing strategies | Investigate their social media presence, advertising campaigns, and event participation. |
4 | Assess their customer experiences | Read online reviews and testimonials to understand their reputation and service quality. |
5 | Study their branding | Look at their packaging, taproom design, and overall brand aesthetic. |
6 | Check their online presence | Review their website functionality, online sales options, and digital footprint. |
7 | Understand their pricing strategy | Examine how they price their beers and any loyalty or discount programs. |
8 | Monitor their community engagement | Observe their involvement with local events, collaborations, and customer interactions. |
9 | Identify their strengths and weaknesses | From your research, determine where they outperform or fall short in the market. |
10 | Apply insights to refine your brewery | Utilize the knowledge obtained to improve your beer lineup, marketing efforts, customer experience, and more. |
What should be included in a competition study for a craft brewery?
Here is a table listing 10 elements that could be part of a competition study for a craft brewery business.
Name of the Element | Description |
---|---|
Market Share | Percentage of the local or regional market controlled by competing breweries. |
Beer Selection | Variety and styles of beers offered, including seasonal brews, limited editions, and flagship products. |
Pricing Strategies | How competitors price their beers, both on-premise and retail, including any special promotions or loyalty programs. |
Target Audience | The demographic and psychographic characteristics of the competitors' primary customers. |
Location and Venue | Physical location of the breweries, including the convenience of access, taproom atmosphere, and availability of tours or events. |
Marketing and Branding | Competitors' marketing tactics, brand image, and how they engage with customers through social media and other platforms. |
Customer Reviews and Ratings | Online ratings and reviews from platforms like Untappd, Yelp, and Google, which reflect customer satisfaction and reputation. |
Quality and Craftsmanship | The perceived quality of the beers produced, including awards won, brewing expertise, and ingredient sourcing. |
Ambiance and Experience | The overall experience offered at the brewery, including taproom design, staff knowledge, and event hosting. |
Sustainability and Community Involvement | Environmental practices and local community engagement, which can influence consumer preference and loyalty. |
Examples of competition studies for a craft brewery
Below are three different (very concise) examples of competition studies tailored for a Local Craft Brewery, a Microbrewery with a Taproom, and a Boutique Brewery specializing in Organic Beers.
If you need something more developed, go check our business plan template for a craft brewery.
Local Craft Brewery Competition Study
Competitive Factor | Description |
---|---|
Beer Selection | Range of beer styles offered, including seasonal and limited-edition brews. |
Price Point | Competitive pricing that balances quality with affordability for the local market. |
Distribution Channels | Local distribution reach, including bars, restaurants, and retail stores. |
Community Engagement | Participation in local events, sponsorships, and collaborations with other local businesses. |
Brand Identity | Strong local branding that resonates with the community's culture and values. |
Unique Selling Proposition (USP) | Exclusive local ingredients, community-driven initiatives, or eco-friendly practices. |
Microbrewery with a Taproom Competition Study
Competitive Factor | Description |
---|---|
Taproom Experience | Quality of the on-site drinking experience, including ambiance and service. |
Event Hosting | Ability to attract customers with events like live music, trivia nights, and beer tastings. |
Location | Proximity to high-traffic areas and ease of access for patrons. |
Merchandising | Sale of branded merchandise to create additional revenue streams. |
Food Offerings | Availability and quality of food options, which can complement the beer selection. |
Unique Selling Proposition (USP) | Unique brews, taproom-exclusive releases, or innovative brewing techniques. |
Boutique Brewery Specializing in Organic Beers Competition Study
Competitive Factor | Description |
---|---|
Organic Certification | Presence and prominence of organic certifications on products. |
Ingredient Sourcing | Transparency and ethics of ingredient sourcing, including relationships with organic suppliers. |
Environmental Impact | Commitment to sustainability and reducing the brewery's carbon footprint. |
Health Conscious Branding | Marketing efforts focused on the health and environmental benefits of organic beers. |
Price Premium | Positioning in the market as a premium product due to organic ingredients. |
Unique Selling Proposition (USP) | Exclusive organic beer recipes, educational initiatives about organic brewing, or partnerships with organic-focused events. |
You can also read our articles about:
- how to fill a Business Model Canvas for your craft brewery
- how to segment the customers of your craft brewery
- how to elaborate a marketing strategy for your craft brewery
- how to open a craft brewery (guide)