Due South Tap Room 4 P Analysis

Due South Tap Room 4 P Analysis

Place

        According to the article, “Designing Channels of Distribution”, place refers to the distribution of a final good. In this step, the focus is on the movement of a final good from manufacturers to the end consumer. The movement happens with assistance of distribution channels where intermediaries act as agents. It is the job of these channels to assist the producer in making sure the product is available to the end consumer. A producer must keep in mind three things when creating a strategy for distribution: efficiency, effectiveness, and control.

        Efficiency refers to the ability to get products to end consumers at the lowest cost. Effectiveness refers to the market coverage and quality of services provided according to the article about designing channels of distribution. Control of the channel gives the producer the power to ensure proper timing and focus on the distribution efforts. Because of these factors and because Due South serves the beer in the very place they make it, there are no outside distribution channels involved in getting due South’s beer to the customer in relation to its own tap room. Instead, the same people who brew the beer put it in kegs which are tapped as needed. The whole sequence of events is headed by Mike Jurewicz, the brewery operations manager.

        It makes sense that having no outside channels creates the most efficient way of getting beer to the customers. The brewery staff simply has to carry the keg over to where it will be tapped. Therefore, there are no extra costs because of distribution. Having an intermediary involved is not necessary since the end user is in the brewery. Therefore, having 0 channels is also the most effective strategy of distribution for Due South. Most importantly, not having to rely on channels, gives Due South maximum control of getting beer to its tap room customers. The staff at Due South knows when more supply is needed. Therefore, there are no issues over timing. A distribution channel might cause a timing delay since the company would have to rely on an outside company to move the product to the end user. However, Due South has control over this issue and can simply tap another keg when needed.

Product

        At Due South, there are multiple elements to the product being served. The first is the core product. The core product refers to the actual product being bought by customers. In the case of Due South, beer is the core product. Anything else that offers extra value to the product is considered the augmented product. Craft beer is seen as a luxury. People drink craft beer because a stigma exists that it is better than your regular, mass distributed beer. Therefore, the feeling of superiority or belonging that one might get from drinking craft beer is an example of the augmented product at Due South. Yes the customer is paying for the beer but he or she gets extra benefit from being a craft beer drinker at Due South. Therefore, because the extra benefit exists, customers are willing to pay more for Due South beer.

        Not everyone will like the same types of beers. Therefore, line extensions are made to cater to the tastes of different segments. Some people might like a lighter ale or pilsner while others like stouts, IPA’s, wheat ale, brown ale, or porters. Because of the line extension, many choices are available to the brewery’s customer segments. The beer product line at Due South currently consists of 15 different beers. The quantity of beers in the product line will fluctuate from time to time. The specific beers in the line will also change from time to time. This is so because Due South manages the line by offering seasonal beers. Seasonal beers are only available during specific times of year. They are brought back each season while certain, flagship beers stay in the line year round. This helps keep the product line fresh.

Promotions

        Due South has a promotional mix that does not consist of any advertising at all. While advertising does give a large amount of control, it is expensive to get that control. Instead, Due South relies on personal selling, publicity, and sales promotions. Personal selling happens in the brewery every day since bar tenders interact directly with customers. The bar tenders might ask a customer if they would like another beer or perhaps try a different type. These are examples of personal selling. Samples are often given to the customers to persuade them to buy a particular beer.

        Local news papers as well as on line outlets like beer advocate will write stories about Due South. The stories are often about special beer releases or events happening at Due South. This form is beneficial because like personal selling, this medium is free. Unfortunately, Due South has little control over the message being conveyed which is one downside of public relations. However, if a piece were to be written, the public may be persuaded by it more easily than advertising. There is a negative stigma about advertising. Since companies pay for advertising, it is thought by consumers that the message is not completely truthful. With publicity though, consumers give the message more merit since it is being conveyed by a third party and not the company itself. This can be harmful to the Due South brand if the message is negative. However, a positive message in an impartial outlet like public relations is invaluable because of the increased credibility of the message.