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Running Head: SURLY BREWING COMPANY MARKETING PLAN 1

Surly Brewing Company Marketing Plan

MKTG 600-01 – Spring 2012

John Peliska

Jason Soltis

Metropolitan State University

SURLY BREWING COMPANY MARKETING PLAN 2

Executive Summary

Surly Brewing is a fast growing micro brewery in Brooklyn Center Minnesota. Since it

opened in 2006, Surly has found an enormous amount of success in the Minneapolis metro and

surrounding area. Revenue has grown over 400% from 2007 to 2010. With this success, Surly

has started to put plans together to build what they are calling a Destination Brewery. This new

venue would be the home of their brewing operation for the foreseeable future and would also be

home to various attractions such as restaurants and bars.

Once this new brewery has been completed, Surly will be in position to increase market

share in the Twin Cities as well as start expanding into new markets. Currently, Surly is limited

to primarily the Twin Cities market with limited expansion beyond due to extreme production

limitations offered by their current brewery. Surly Brewing currently produces four year round

brews as well as other special seasonal brews. All have been extremely well received by beer

critics from around the world and have lead to a very dedicated and enthusiastic customer base.

In order for Surly to grow in the future once the new brewery is completed, they’ll need

to follow a detailed marketing plan. The primary objective of the marketing plan will be to 1)

increase market share in the Twin Cities microbrew category by 10% and 2) enter into six new

Midwest markets. Both of these objectives are to be completed within 2 years of the new

brewery going online. Throughout the marketing plan, primary promotional objectives will be to

reinforce and build the brand in the Twin Cities market and to build awareness and create interest

in the new markets.

By following this marketing plan, Surly will be prepared to bring Surly products to a

whole new customer base and will be able to drive sales and revenue for the foreseeable future.


Background

Surly Brewing Company, one of the newest microbreweries in the Twin Cities, officially

produced its first barrel of beer in 2006. However, what eventually became Surly Brewing

Company started in 1994 when Surly Brewing’s founder and owner Omar Ansari was given a

home brew kit for a present ("Surly started with,” n.d.). Omar’s passion for craft beer started to

become his driving force. In January 2004 he created the “Pilot Brewery” which was his original

brew house ("Surly started with," n.d.). Later that year he decided to further his education and

enrolled at the American Brewers Guild. He eventually landed an apprenticeship at New Holland

brewing in Michigan. Feeling he was ready to venture out on his own, Omar transformed the

building of the old family business, an industrial abrasives company, into a brewery. In a lucky

turn of events, he met Todd Haug, an experienced local brew master from Rock Bottom brewery

at the 2004 Craft Brewers Conference in San Diego. Omar was eventually able to pull Haug

away from Rock Bottom and the duo combined to launch Surly Brewing Company in Brooklyn

Center. They were successful in getting the city of Brooklyn Center to reverse a law restricting

breweries within city limits and able to obtain the essential brewing hardware from the

Dominican Republic after much international negotiation ("Surly started with,” n.d.). With

everything in place, Surly Brewing produced its first beer, Abrasive Ale in 2006.

Situation Analysis

Since its first barrel rolled out of the brewery, Surly Brewing has become extremely

popular in the Twin Cities area. In 2007, revenue was $879,670 and grew substantially over the

next three years to top out at $4.7 million in 2010. That is a 431% 3-year growth ("Company

profile surly," n.d.). The increase in revenue is directly tied to an equally impressive increase in


production. In 2007, Surly produced 2,500 barrels (Vomhof, 2009). In 2010, Surly produced

12,000 barrels which accounted for a 32% increase from prior year (Riemenschneider, 2011). In

total, Surly has seen sales increase 1,272% over the last five years (Brewing up). The problem

that Surly is facing is that its current production facility isn’t capable of handling the current

demand for their product. In fact, they’ve even had to cut back distributing to some of their

outstate markets. In an April 2010 blog on their website, Surly posted this message: “Due to

overwhelming demand, we have halted beer shipments to our distributors; South Dakota,

Western Wisconsin, Chicagoland, Duluth & the North Shore and Southern MN” (Ansari, 2010).

They went on to state how successful their liquor store sales had been: “Talking to some of our

liquor store customers, we find that they have increased sales of our beer anywhere from 25%-

70% in the last year. Keeping up with the insatiable demand of the Twin Cities for craft beer has

been a challenge” (Ansari, 2010). This goes to show just how strong demand has been in the

market. With the increased demand, Surly responded as best they could. “We hope that we will

soon be able to return to all the markets we have been in. In 2006, our first year of production,

we sold 1600 kegs of beer. Last week we had over 2200 kegs of beer in production in the

brewery. We can’t grow any faster!” (Ansari, 2010)

This increased demand for the product has lead Omar Ansari, Surly’s owner to look into

the prospects of building a new brewery. Surly announced plans to build a $20 million

destination brewery that would include a restaurant, bar, beer garden and events center.

However, doing so required a reversal of a long standing state law, (Senate Oks, 2011). This new

brewery would allow Surly to produce 100,000 barrels per year. In May 2011, Minnesota

Governor Mark Dayton signed a bill that “creates a new class of license, a brewer taproom


license, which will allow Minnesota breweries, including Surly Brewing Company, to sell pints

of their beer on-site,” (Governor Dayton). This bill even became known as the Surly Bill.

Industry Analysis

Now that the state laws have been changed to allow Surly to build a new higher capacity

brewery, they can now look forward to what it will take to satisfy the growing demand in the

region and also start to look at other markets where they could possibly expand. This is a great

time for Surly to be looking to expand. Standard & Poor’s indicated in their 2011 sub-industry

review for brewers that they “see further volume growth in craft brews as consumers view

products as an affordable luxury. During the recession, consumers traded down within the beer

category from premium brands, but those trends began to reverse in the back half of 2010,”

(Kwon, 2011). S&P also indicated that “According to data from the Brewers Association, a trade

organization comprised of small independent brewers, craft beer industry volumes in 2010 rose

11% in volume to over 14 million cases and 12% in retail dollars. Beer Marketer’s Insights

estimates the segment grew 10%. This represented 4.9% of beer industry volume and 7.6% of

industry dollars, according to Brewers Association estimates,” (Kwon E. 2011, Industry Survey

2011 p 9). There are various reasons why the craft beer segment continues to grow. “Standard &

Poor’s believes that, in a time of markedly slowing introductions, new products stand out.

Supermarkets have been devoting more shelf space to craft beers and have been suggesting beer

and food pairings in their displays, driven by craft beers’ unique flavorings and aromas.

Additionally, many craft beers are produced locally and as such go toward supporting local

economies,” (Kwon E. 2011. Industry Survey, 2011, p9.)


Competitive Analysis

While there is good news for the entire segment of craft beers, Surly also needs to

understand that they will need to combat various competitive situations while they continue to

expand their market share and increase revenue and profits. In their efforts to reverse state law in

order for them to build a brewery where they could sell their own beer, Surly has opened this

opportunity to several new and existing breweries. The reversal of state law will allow long time

Minnesota breweries such as Summit and Schell’s to also develop a plan similar to what Surly is

planning to do, but as of right now, they haven’t released plans to do so. While Summit and

Schell’s are long established brands in the area, Surly’s primary competition is found within the

influx of new microbreweries such as Harriet Brewing, Fulton Beer and Lift Bridge Beer. These

new Twin Cities based breweries are riding the successful wave that Surly started back in the

mid 2000’s. The competition won’t just be limited to those either, there are more on the way. As

an indicator of how successful the craft beer industry has been, there are around 80 breweries

and brewpubs in Wisconsin and only about 20 now in Minneapolis. (Haefer 2012) Wisconsin

breweries were not held back by the same law that has existed in Minnesota since the end of

Prohibition.

Not only will Surly face competition from new and existing craft breweries in Minnesota,

they’ll also need to contend with new products being released by major beer manufactures such

as Anheuser-Busch and Miller Coors. According the S&P “major brewers have made moves to

bolster their positions in this faster growing segment (craft beers). In March 2011, Anheuser-

Busch InBev NV’s US unit purchased Chicago brewer Goose Island Beer Co. for $38.8 million.

In 2010, Miller Coors created a new company, Tenth and Blake Beer Co., focused on craft and


import beers.” (Kwon E. 2011. Industry Survey, 2011, p 10). In order to maintain their success,

Surly will need to continue to separate themselves from their competition.

SWOT Analysis

A SWOT analysis was conducted to highlight the strengths, weaknesses, opportunities,

and threats of Surly Brewing Co.

Strengths

Since Surly Brewing Co. started producing beer in 2006, Omar Ansari and his staff have

been committed to producing a quality beer different than anything else available on the market.

Head brew master Todd Haug’s extensive experience in creating uniquely crafted beers has

resulted in a number of Surly products being ranked at or near the top of the market for quality

and taste in their respective categories (Stych, 2012). Surly made a conscious decision that they

Strengths: Internal Weaknesses: Internal

Strong Brand

Employees / Staff

Award Winning Product

Community connection – Local ties

Limited production capacity

Limited market reach

Price point

Opportunities: External Threats: External

Massive pent up demand

Recently passed law lifting ban on selling beer

to customers on site.

Social phenomenon of craft beer

Destination brewery

Sunday beer sales

Increased competition - New breweries recently

opened as a result of the passing of the new

“Surly Bill”

Targeted marketing from major brands against

craft beers.

Health conscious lifestyle – wine /spirits


wanted a brand that was truly different. They have been successful in achieving a strong brand

by working with an agency that has helped them design the packaging, and implement a plan

which gives them a strong presence in the marketplace (Mitchell, 2010). The Surly staff

maintains a strong connection with their customers by hosting various festivals and keeping them

up on the latest developments with the company on their website. Surly has also been successful

in calling on its “Surly Nation” to help with various public service projects such as blood drives,

cleanup projects, and food drives. The combination of the engaged employees, a highly visible

owner, a good product, a strong brand, and community involvement all work together to add

value and has made Surly what it has become today.

Weaknesses

The success that Surly has enjoyed has substantially increased the demand for their beers.

While this is desirable, it has been somewhat problematic for Surly since they are maxed out on

their capacity and unable to produce more to meet the demand (Vomhof, 2011). This has also

caused some retailers to increase the price they charge for Surly products to a point that it

becomes unappealing to the consumer. Despite building a successful brand and a cult following,

the capacity constraints also limit the potential market reach because they have had to keep

growth in check and even pull back from expanding into surrounding states to try and ensure

retailers who sell the beer will have enough (Breimhurst, 2011).

Opportunity

A local law which dated back to the prohibition days was recently overturned in May,

2011 which allows Minnesota breweries to sell their own beer on site (Ong, 2011). Because of

the passing of the so called “Surly Bill”, Surly has unveiled bold plans for a $20 million facility


that would house a restaurant, beer garden, and event center and could make it the biggest brewer

in the state (Reimschneider, 2008). The new brewery will increase capacity tenfold and allow

Surly to continue to grow new markets and address the massive pent up demand that has formed

as a result of the limited capacity of their current location (Dahl, 2011). Surly has grabbed the

attention of several local economic officials who see the new brewery as a regional attraction in

addition to creating up to 150 new jobs for the community (Roper, 2011). The timing of a

growing craft beer movement and the marketing power of the internet has created what Omar has

called the “social phenomena of beer” also continues to work in favor of Surly (Breimhurst,

2011).

Threats

The passing of the “Surly Bill” mentioned above in the opportunities has also paved the

way for increased competition as brewers react to changes made to the state’s beer laws. At least

eight craft breweries started up this year and more have been proposed to open in 2012 (Ong,

2011). Surly will have to work extra hard to maintain their position in the market count on the

continued growth of the craft beer market as new brewers continue to enter the market and

expand their capacity to meet demands as well. Targeted marketing from the major brands

against the craft beer movement is also seen as a threat that must be considered. As the major

brands continue to lose market share, they are likely to react whether that be in the form of their

own craft brew products or the marketing and distribution of various substitute products that

compete with them. The continued awareness of the negative effects on one’s health and strive

to be heath conscious is also a threat that must be considered. Consumers are shown on a regular

basis that various wine or spirits when consumed in moderation can have positive effects

compared to beer.


Market Opportunity Analysis

The current state of the craft brewing industry presents Surly Brewing Company

substantial opportunity to increase market share by increasing distribution of Surly beer

throughout Minnesota and eventually nationwide.

Can Surly expand into additional markets outside of Minnesota and reach them

with cost effective media and trade channels?

Although craft beer markets tend to be local in nature, because of successful branding

efforts, outstanding products, and a growing market for craft beers, Surly has built up a cult

following which has expanded far beyond Minnesota (Roper, 2011). This along with the

creation of several award winning beers has elevated Surly to the number one micro brewery in

the nation (Mitchell, 2010). Surly should be able to continue to build on this momentum and

bring its products to additional markets once it increases its capacity and has the capability to

produce enough beer to meet local demand. Surly has been able to use its website, social media,

and its “Surly Nation” to develop excitement for its products. If Surly can continue to use this

strategy to make personal connections with its customers, they should have continued success

expanding into additional markets.

Does Surly Brewing have access to the critical capabilities and resources they need

to deliver additional product to the market?

Surly Brewing has hired local real estate consulting firm TEGRA Group to help them

evaluate their options for building their $20 million destination brewery (Roper, 2011). Securing

financing and building this facility is critical because the increased capacity is needed to produce


additional volume of beer currently demanded in the market. Once the brewery is built, they will

need to hire and train additional staff needed for the increased production.

Can Surly Brewing deliver a product better than any actual or potential

competitors?

Surly faces increased competition as more and more craft brewers enter the market and

produce new products for consumption. They also face tough competition from existing micro

breweries and restaurants already established in the marketplace. Surly should be able to

leverage its strong brand and high visibility to maintain current demand in the market. Surly

needs to continue to deliver the same high quality products they are currently producing once

they expand their facilities. If quality can be maintained and they can continue to make and

deliver award winning craft beers, then they should be able to outperform the competition.

Final Statement

Although Surly has a solid footing in the market at the present time, there is increasing

competition entering the market every day. Surly needs to ensure that they can maintain their

current customers and continue to attract new customers in other markets as the expand capacity

and grow new markets. Surly needs to ensure that they continue building strong relationships

with their customers and keep a positive image which has helped the brand become what it is

today. Surly needs to continue to build excitement and anticipation for its destination brewery

and ensure all customers make a point of visiting when they come to Twin Cities area.


Marketing Plan Summary

Marketing Objectives

While acknowledging Surly’s upcoming challenges, there must be a constant focus on the

future. In order to make the company successful and profitable, there must be a marketing plan

can be implemented and followed during these upcoming years of transition from a small local

brewer to a larger capacity regional brewery. There are two specific goals that need to be

achieved for Surly to ensure success, these two goals are to increase market share in the Twin

Cities within the microbrew segment and to increase new market penetration in several upper

Midwest markets. Ideally, Surly will aim for a 10% market share increase in the Twin Cities and

will look to enter into at least six new midsized Midwest markets within two years once the new

destination brewery has been completed. The first six markets of interest include: Des Moines,

Madison, Sioux Falls, Milwaukee and Green Bay. These goals are attainable within the

timeframe given the increase production capability of the new brewery as well as an increase in

mass marketing and promotions in both the Twin Cities and the new markets.

Target Market

Surly’s target market is the micro brew enthusiast however they also are looking to

segment into the general population of people who can be classified as social beer drinkers as

well. Men and women who regularly go out for happy hours after work or enjoy tailgating at

sports events will be key targets of this marketing plan.


Positioning

When marketing Surly product, we are really attempting to bring to light how much

thought and care goes into creating a great tasting beer product for the consumer. Surly has

positioned themselves as a company that consistently delivers the highest quality products in the

micro brewing market segment. When a customer orders a Surly product from a bar or from an

off sale, they are making a decision to purchase a product which is made locally with their

interest in mind. The positioning statement for Surly is as follows: Surly Brewing Company, a

Twin Cities micro brewery, serves up four unique year round beers and several seasonal brews

that are all extremely flavorful because they are uniquely crafted with the micro brew beer

enthusiasts in mind.

Product

Surly’s current products that will be marketed are its year round beers which consist of

Furious, Bender, Coffee Bender, & Cynic Ale. Surly’s seasonal beers consists of Abrasive Ale

(late December – March), SurlyFest (September), Hell (Summer), Bitter Brewer (May – August),

Darkness (October), Smoke (November), Mild (February), Schadenfreude (Late April – May), &

Wet (October). All of these products will be used in different promotions, especially the

seasonal brews which are used to create interest and stimulate demand for other surly product.

Price

Surly will follow a skimming approach on pricing to convey the high quality image and

strong brand that they currently enjoy today. Pricing on tap beers will be in line with other micro

brews and imports however pricing on products offered in off sales and liquor stores will be

priced higher than other micro brews. Customers will ultimately determine the price based on


demand however the fact that it is difficult to keep Surly in stock at the current retailers they do

business with today, it makes the most sense to keep the current pricing strategy in place.

Place

Surly will sell its products at high end bars, restaurants, and liquor stores in select

markets around the region. Given Surly’s price point and target market, locations that serve

Surly will have to be carefully selected based on the demographic it serves. Sales will be tracked

and locations that offer Surly may have to be adjusted from time to time.

IMC (Promotional Plan)

Promotional Objectives

The primary promotional objectives of the marketing plan will be to reinforce and build

the brand in the Twin Cities market and to build awareness and create interest in the new

markets. Surly will accomplish these objectives through a dedicated and focused mix of

integrated media and promotional campaigns. Throughout all of the campaigns in new markets

as well as in the Twin Cities market, the overall message will be to encourage customers to

experience what Surly has to offer. With their current experience in the Twin Cities, Surly’s

product has proven to be one that people want, so if customers can be persuaded to experience

the product, the likelihood of developing a loyal customer is very high. The various promotional

vehicles used in the campaigns will be: the new destination brewery, association with local

sports teams, regional and local trade shows, Surly’s Darkness Day and various bar nights. Each

of these promotional vehicles serves a unique purpose that will help achieve Surly’s promotional

objectives.


Destination Brewery

Once the new Destination Brewery is built, Surly will use it as a beacon for beer lovers

and potential customers throughout the entire Midwest region. This $20 million project is

expected to be a 60,000 to 80,000 square foot facility that houses the brewing operation in

addition to on-site restaurants and bars. Surly will invite people from around the region to come

and experience this new and extremely unique brewery. This massive operation will leave an

unforgettable impact on everyone who experiences it.

Association With Area Sports Team

Given Surly’s target market, a worthwhile association with local sports teams will be a

great place to target potential customers. While Surly may not be able to afford official

partnerships with major league sports at this time, there is a unique opportunity to get involved in

minor league or semi pro baseball in the Twin Cities and many of the new expansion markets.

Surly will target the St. Paul Saints, Fargo Redhawks, Iowa Cubs, Sioux Falls Fighting

Pheasants, Madison Mallards and the Green Bay Bullfrogs as potential baseball partners. Surly

will negotiate either unique Surly promotional nights or a long term on tap partnership where

select Surly products will be available on tap all season long. One idea would be a Surly Tailgate

Party during select home games. Fans would be encouraged to come down to the ballpark early

for a fun filled Surly Tailgate Party. Potential promotional copy could read: “You don’t cheer

lightly for your team, why chose your beer lightly? Get Surly!” This would be a pun on the

obvious popularity of “lite” beer and encourage fans to try the new Surly beer available at the

tailgate party. Surly would also have various promotional items such as special pint size can


cozies, bottle openers, hats and t-shirts available as premiums for fans attending the tailgate

parties.

Local and Regional Trade Shows

Beer trade shows are something Surly already takes advantage of. There are numerous

events around the region including: Minneapolis Beer Festival, Craft Brew Fest, The Annual

Brewers Bazaar, Autumn Brew Review and many more. Surly will continue to take part in these

types of events and will target events in and around new markets that are targeted for expansion.

These trade shows are a great way to interact with extremely dedicated beer fans. If Surly can

make an early impact on these influential customers then that can have long ranging word of

mouth marketing implications as Surly prepares to enter new markets. At these events, Surly will

have samples of their primary line of products as well as samples of any special seasonal brews

that are available. They’ll also have free promotional premiums such as cozies and bottle openers

to hand out to visitors as well as having t-shirts and hats available for sale.

Surly Darkness Day

Surly Darkness Day is very unique promotional opportunity that Surly has put on the last

few years to celebrate the annual release of their most popular and hardest to get season brew,

Surly Darkness. This all day event has grown leaps and bounds as Surly’s popularity has grown.

The plan would be to increase awareness and increase the size and scope of the event. Surly will

develop a special sweepstakes where people will have the opportunity to win VIP and head of

the line status. This sweepstakes will be handled through local Twin Cities liquor store partners.

Whenever someone purchases a Surly product, they’ll receive an online code that can be entered

at Surly’s website. If selected, the person who entered the code will receive VIP status at


Darkness Day. This will ensure they receive their allotted amount of Darkness to purchase as

well as access to special VIP vending lines and other deluxe accommodations. This type of

sweepstakes will not only raise awareness about Darkness Day but will could also have a unique

“viral” marketing opportunity as people who enter online will be encouraged to “share” the

opportunity with their social network.

Bar Nights

When entering new markets and while growing their foothold in the Twin Cities, Surly

will focus on gaining cooler space in local liquor stores as well as getting their product in a

number of local bars and nightclubs. Since Surly has a higher price point than other beers on the

market, Surly will focus on higher end venues first. To help introduce the product to more

perspective customers, Surly will work with local venues to develop special Surly pricing during

periods of time that will see the most impact. The promotion could be themed as “Get Surly,

Give Surly.” This would basically be a buy one get one free offer. There could be a unique focus

on the special relationship guys find with their beer. Plenty of cleaver word play could be used

following the popular trend of the “bromance”. Surly could promote a “Brew-mance”.

Messaging would invite male patrons to come down to the venue with all their guy friends and

get their “Brew-Mance” on. Each patron would be able to experience what Surly has to offer

while feeling a unique male bond. Example promo copy could read: “Turn that bromance into a

Brew-mance with 2 for 1’s on Surly at JJ’s Pub, Thursdays from 4p-8p. Get Surly, Give Surly!”

This promotion would be a fun and unique way to hit Surly’s target market and generate venue

sales while introducing patrons to Surly products. This is a promotion that could easily be

duplicated across several markets including the Twin Cities and new markets. In addition to


having the pricing special, Surly could also have promotional teams on-site to help facilitate

sales and hand out promotional premiums to further enhance product recognition.

Media Schedule

Surly will devote the vast majority of their mass media budget into radio and outdoor

advertising as it will give them a mix of audio and visual messaging without the high cost

associated with TV. Radio demographic will focus on stations that are strong in the Men 21-54

age group with a strong focus on sports, news/talk and rock stations (accessed via Arbitron based

on latest ratings data M21-54 M-Su 6a-12m). Depending on cost, Surly will try to focus on two

to three radio stations per market. Minneapolis stations would include KFXN, KXXR and

possibly KTCZ. Stations in the new markets would include KQWB, KFGO and WDAY in

Fargo, KWSN and KRRO in Sioux Falls, KAZR and KXNO in Des Moines, WJJO and WIBA

in Madison, WHQG and WTMJ in Milwaukee and WAPL and WDUZ in Green Bay. As Surly

enters into a new market, they would focus on a heavy branding and awareness campaign

introducing the new brand to listeners. Surly would also explore the possibility of using talent

endorsements to help push their products. If the station has a DJ that has a reputation for

knowing their beer, then this could be a unique opportunity to really touch base through a

personality that is trusted in the local community. After the initial product launch in any given

market, Surly would transition to more of a flighted schedule that would be scheduled around

specific events or time periods where Surly would look to push product.

Surly would also invest in outdoor/billboard advertising. Billboards would be placed on a

rotation schedule with a focus on placement around new liquor stores or venues that will be

carrying Surly (where available). If placement around select venues isn’t available, then Surly


would look at high traffic areas. However, it’s more important to hit potential customers outside

of venues where they could make a purchase than the general public. Billboard campaigns would

run in conjunction with radio and would be phased out after Surly product has solidified position

in the given market.

Cost of Marketing Plan

While pricing specifics still need to be verified, below is a projected cost of executing all

elements of the marketing plan.

Baseball Team Promotions: $30,000 annually (6 teams).

Trade Shows: Budget of $2500 per event including registration, product, wages,

accommodations and travel.

Darkness Day: $15,000 to cover bands, insurance, wages, security, rentals and misc.

Bar Nights: $500 per night per venue to cover wages for promo team, product discounts

Radio

o Minneapolis - $10,000 per week

o Fargo - $2500 per week

o Sioux Falls - $2000 per week

o Des Moines - $2500 per week

o Madison - $3000 per week

o Milwaukee - $7500 per week

o Green Bay - $5000 per week

Billboard

o Minneapolis - $10,000 per week

o Fargo - $2500 per week

o Sioux Falls - $2000 per week

o Des Moines - $2500 per week

o Madison - $3000 per week

o Milwaukee - $7500 per week


o Green Bay - $5000 per week

If the following assumptions are made for each market then the entire marketing budget covering

the Twin Cities as well as the six new markets would be $1,557,000 annually.

Assumptions

6 Baseball team

12 annual trade shows

52 weeks of bar nights per market

28 total weeks annually per radio market

12 total weeks annually per billboard market

Given the rapid growth that Surly has seen in the Twin Cities, a similar response can be

projected in the new markets. While looking at sales and revenue growth since 2006, this

marketing budget seems to be in line with the new expectations that will come along with the

new brewing facility. Budgets can be adjusted depending on how aggressive Surly is with

entering new markets.

Conclusion

Surly will be successful in achieving their objectives of market expansion and increased

sales if the promotional plan outlined above is implemented. While the destination brewery is

not complete yet, this marketing plan is written as if the new brewery is online and they have

room to grow production. It is important to start preparing in advance in order to avoid a lag

time between the new brewery coming on line and shipping out additional product to the new

markets. Surly is in a great position to take advantage of the growing popularity of craft beer

and the promotional plan will be the key to the continued success of the Surly brand for many

years to come.


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