So, you’ve decided to take a deep dive into the world of craft distilling. Welcome to the party!
A blend of age-old traditions, people, place and innovative flavours, craft spirits have become the toast of the modern drinker. But just as every fine spirit begins with the right mash, your distillery’s success starts with a the right marketing brew.
We can promise you this: no matter how divine your concoction, it’s the marketing that will truly set you up for success.
Yes, a sublime spirit can make waves. It’s what we all get excited by and why we want to be part of this industry. Yes, it’s what keeps people coming back – but assuming a product will market itself based on the flavour profile? That’s a rookie error.
You need to make a solid Marketing Plan.
Marketing Plans vs Business Plans
If you are entrepreneurially minded, you’ll already know that a marketing plan is a subset of a business plan, zeroing in on how a business will attract and retain customers.
It’s not dissimilar to a business plan. Both are interlinked and critical for the structured and sustainable growth of any business.
For those less familiar and coming at their craft distillery with a different set of skills, it may seem absurd to make two complex sets of plans and documents given the time investment they both involve.
But it pays dividends.
If you have already done your business plan, focus on these points in order to make this different and to extract maximum value from the process. (if you haven’t done a Business Plan yet – take a look at this article to help).
- Different scope: A marketing plan dwells deeply into promotional and customer acquisition aspects, while a business plan provides a more comprehensive overview of the entire business. You don’t need operations here – it’s about sales, customers, route to market, values, ethos and branding.
- Different depth of marketing details: A business plan does include a section on marketing and sales strategies but lacks the depth and specificity of a marketing plan. This is the moment to go all in and include detailed approaches for pricing, margins, promotion, distribution, campaigns and product management.
- Different financial information: While both contain financial data, a business plan will delve much deeper into overarching financial aspects, including funding, sustainability, and profitability. This doesn’t need that big picture element. Focus on the financials of route to market, campaigns and costs to implement the ideas and vision you are setting out.
Let’s define it another way –
At its core, a marketing plan is a comprehensive document or blueprint that outlines a company’s overall marketing efforts. It details the research, strategies, tactics, budget allocations and expected outcomes for all marketing activities over a specific period, often two years.
This plan becomes the guidebook for how a distillery communicates the benefits of its products or services to its target audience, aiming to achieve specific business objectives, such as sales growth, brand awareness, or market penetration.
Hopefully, you can already see why it’s going to be useful to spend some time doing it.
But given 50% of craft distillery start-ups never make a formal Marketing Plan, it’s worth really stating just why it’s so valuable. Beyond stating that 50% never make it above the 15,000 bottle sales PA and anecdotal evidence to say the correlation is clear…
Importance of a Marketing Plan for a new distillery:
- Provides direction and focus: For a new distillery or spirits brand, there can be many possible routes to market, from hosting tastings at local events to collaborating with restaurants for unique drink menus. A marketing plan helps focus efforts on what will be most effective based on research and market understanding. Where do you start, what do you do next…
- Optimises budget spending: Starting a distillery involves significant capital. A marketing plan helps ensure that promotional funds are spent wisely, giving the best bang for the buck.
- Defines the target audience: Knowing who your ideal customer is, their preferences, habits, and buying behaviours is crucial. The process of creating a marketing plan forces a deep dive into understanding this audience.
- Differentiates from competition: The spirits market can be crowded. A marketing plan can help a new distillery identify its unique selling points and communicate them effectively to stand out.
- Sets clear metrics: Without a well detailed plan, it’s hard to measure success. A marketing plan sets clear goals and Key Performance Indicators (KPIs), making it easier to evaluate performance and adjust strategies if needed.
- Risk management: A good marketing plan will also account for potential risks, helping the distillery anticipate challenges and prepare for them.
- Stakeholder confidence: For a new distillery, having a robust marketing plan can instil confidence among stakeholders, including investors, partners, and employees, ensuring them that the business is on a path to success. It bolsters the credibility of your Business Plan and can be the clincher in second round talks with interested investors.
The time factor
Almost all who have done one will tell you that the time spent could be directly account for in the return on investment it enabled. It’s the difference of having to learn everything on the job and getting a huge head start.
So let’s address that time factor… Crafting a strategy is a labour of love. Generally, dedicating 1-2 months full time to hone your marketing strategy before launch is wise.
If you’ve done a business plan and already made good headway, you’ll know that you’ll have this time for this once you order stills and start building works.
Many reputable still makers have minimum 6-9 months wait times before their next available slots. Same goes with building works, ancillary equipment and licensing – some of those can take months, not weeks.
If you want to do it ahead of spending any money, that’s fine too. Your market landscape research might be outdated by the time you implement but not by miles. If you’ve done all the work upfront and then spent a year building, just take a moment to re-look at the plan before going to market. A lot can change in a year and minor adjustments are wise.
The blueprint of a good marketing plan
The blueprint of a good marketing plan lays out a structured approach to introducing, promoting, and growing a brand or product in the market. Here’s how to prepare a coherent document.
Research
- Competitive analysis: Identify who your main competitors are, what they’re offering, their pricing strategy, and their strengths and weaknesses. This can help you differentiate your product or service.
- Market trends: Stay updated with industry trends. Knowing what’s current can ensure your strategies remain relevant.
- Target audience: Define the demographics and buying behaviours of your ideal customers. Strike a balance between local, national and international. Your local community is your primary ambassador but it’ll only take you so far. By contrast, focusing too heavily on international markets without a solid base can spread your resources thin and blur your brand’s identity.
Positioning
- Unique sales proposition (USP): Clearly articulate what sets your product apart. What value do you bring that others don’t? Try not to make this about flavour, nor make your USP the spirit’s quality. Neither will set you apart and allow us to state, unequivocally, that there are already world class spirits in every category. Your liquid being otherworldly in it’s awesomeness is a terrible USP to pick. Even if true – it’s plainly not unique. So, what actually sets you apart?
- Brand voice & identity: Think of the best spirits you’ve tried. Chances are, the bottle design sticks in your memory. Your label, logo, and even the shape of your bottle should be as distinctive as your drink. This isn’t just packaging—it’s your visual handshake with your consumer. Establish a consistent tone, look, and feel for all your brand communications.
- Pricing strategy: Determine your price point based on production costs, competitor pricing, and perceived value.
Channels
- Digital channels: Websites, social media platforms, email marketing, pay-per-click advertising, and SEO. Digital marketing isn’t a luxury; it’s a necessity. You’ll need to create an engaging online presence as the digital realm is where a lot of your customers will discover you. How will you make that first impression count!
- Traditional channels: Print advertising, radio and TV spots, billboards, and direct mail. Are you going to have an agency involved? Get them involved at this stage to help with building the vision and use their insight on how to make it cut through and inform what you’ll need to get sorted.
- Events & experiential marketing: Trade shows, launch events, pop-up shops, and interactive experiences. Will you offer tours, tasting sessions, or even virtual behind-the-scenes experiences. Will you engage local influencers for distillery visits?
Budgeting
- Fixed costs: Define the costs that don’t vary much, like website hosting or salaried staff.
- Variable costs: Define the costs that change based on volume, such as advertising spend or production of marketing materials.
- Projected ROI: Try to estimate the returns you expect from your marketing initiatives to ensure either profitability or at the very least, they are not just blind spend with no returns.
KPIs
- Set measurable goals: Whether it’s a specific number of new subscribers, a targeted sales figure, or a desired growth percentage, make sure your goals are quantifiable. This is where that Projected ROI comes in – by setting KPI’s you can track what helped increase volume, awareness etc.
Feedback loop
- Customer feedback: Plan how you will get feedback. Will you use surveys, reviews, and direct interactions to gather feedback from customers? If so, how, with what, when?
- Iterative testing: Will you employ A/B testing, especially in digital campaigns, to see what messaging or imagery works best. How, when?
- Regular review meetings: Will you schedule monthly or quarterly reviews of your marketing strategy to discuss what’s working and what needs adjustment. Who will be responsible, and with what metrics will you judge success?
Stakeholder communication:
- Internal communication: What’s your plan to ensure all team members, especially those interfacing with customers, are aligned with the current marketing strategy and any promotions.
- External communication: What’s the plan for regular updates or newsletters for investors, partners, or other key stakeholders.
Implementation timeline:
- Phases: Break your strategy into phases (e.g., Pre-launch, launch, growth etc.). Define key actions or achievements for each phase (milestones), and set clear deadlines for each action.
- Plan B options: In case a chosen strategy doesn’t deliver as expected, have alternative strategies ready to deploy.
Zeroing in on how a business will attract and retain customers is a key focus point for any serious craft spirits venture. A marketing plan is a valuable asset for those seeking to create a brand that stands on it’s own in a short space of time, or a distillery that is build on stable ground and good foundations.
Use the information here to make yours as full and detailed as possible. You’ll see that once you do – you’ll reap the rewards in no time.
