Gaining Commercial Advantage
Explore the evolving landscape of the beer industry with insights from Francis Patton, a seasoned professional and lecturer. With 25 years of experience, Patton examines critical changes in industry structure, social dynamics, product offerings, and routes to market. Discover opportunities for businesses to thrive in a localism-driven environment, emphasizing the need for strategic planning, competitive advantage, and innovative approaches. Address the challenges faced by businesses, from debt servicing to brand awareness, and learn how to position yourself for future success.
Gaining Commercial Advantage
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Presentation Transcript
Gaining Commercial Advantage Francis Patton
Who am I to talk to you….!! • 25 years in the industry • Strong links to Cask • Strong links to industry bodies • Lecturer at Leeds Metropolitan University
So what’s going on...? • Change in Industry Structure - TISC 2004/BISC 2009 - Change in leases - Change in pricing - Change in ownership - Change in approach Opportunity
So what’s going on....? • Change Socially - Sustainable Communities Act - Big Society - Localism – supermarkets - Pub is the Hub Opportunity
So what’s going on...? • Change of Products - Growth of cask - Growth of local brands - Sourcing - Range in pub companies - 94% within 40 miles Opportunity
So what’s going on...? • Change in route to market • Brands/products need “store front” • Rise in off trade stocking • Rise of DDS • Access to pub companies/brewers up 29.8% Opportunity
So what’s going on...? • Innovation - Project William - Enterprise/Punch/Admiral - Social Networking - Apps - Cyclops Opportunity
The Local Rumours of my death have been greatly exaggerated Localism is alive and flourishing
The issues • Are you as businesses set up commercially to take advantage of the opportunity? • Training 2.3 out of 5 • Internal 51% say could do better/need support • External 65% say could do better/need support • Debt servicing 1.2 out of 5 • 43% don’t use social networking • 65% have no pub • 28% don’t know production costs • Brand awareness
Success v Failure • 56% failure rate in first 4 years • Seven pitfalls • Started for the wrong reasons • Poor management • Insufficient capital • Location • Lack of planning • Overexpansion • No website
Strategy/Business Plan • “Thinking like the big boys, playing like the small ones.” • Every business needs a clear strategy/business plan • Every business needs to create competitive advantage • Every business needs a vision of success backed up by financials • Every business needs help
The Strategic Management Process External Analysis Strategic Choice Strategy Implementation Competitive Advantage Mission Objectives Internal Analysis
The Strategy Clock 6-13
Approaches 7-14
Methods • Acquisition • Merger • Joint Ventures/alliances • Franchising/licensing • Management contracting
Help • SIBA • Cask Marque • Cyclops • CAMRA • Consultants • NED’s • Universities • PITH • Regional Business Support
The future is bright The future is beer And local beer at that
