GATEWAY

July 2015

TAPHOUSE

C U R R E N T S I T U AT I O N

FOOD/DRINK SPACE LOCATION

• Reasonably priced food

• Wide beer selection

• Breakfast all day

• Tons of TVs • Banquet room • Large spacious

layout • Relaxed &

comfortable atmosphere

• Conveniently located near hotels, Gateway Mall, and I-5

• 125,000+ daytime employees working within 5 miles

• 335,000 consumers in Gateway Mall trade area

• Highly competitive location

C U R R E N T S I T U AT I O N

“The space seems geared toward a low-key bar, but they offer breakfast, and even though they say they’re family friendly, don’t have a kids’ menu.”

“Confused

Nothing distinguishes the Taphouse from

other bars in the area

identity”

Staff and customers are unsure what exactly Gateway Taphouse is.

the opportunity:ESTABLISH A NEW, DISTINCT brand

T H E P R O B L E M

persona

The solution &

Gateway Taphouse has an unclearIDENTITY.

S E C O N D A RY R E S E A R C H

• Currently there are 234 breweries in Oregon.

• 20% of all the beer sold in Oregon is made in Oregon

• 60% of all draft beer sold in Oregon is made in Oregon“No other state can match Oregon’s thirst

for and fascination with craft beer or the robust diversity of its brewing industry…”

- Oregon Business

OREGONBEER+

P R I M A RY R E S E A R C H

“When traveling, I like to try local spots. Denny’s are the same all across America, but local

businesses give you a taste of that culture.” -Scott, Gateway Taphouse customer

“I relate more to local or indie businesses. They reflect the community better than chains…local bars create more jobs in

the community and reflect Oregon as a whole.” -Adrian Rodriguez, Springfield resident

CONSUMER QUOTES

I N S I G H T S&

• Customers like the beer selection and the atmosphere • There’s confusion about what exactly Gateway Taphouse is • People in the area prefer supporting local businesses • Oregonians love everything Oregon, from sports to craft beerfound

what we

T H E B I G I D E A

Oregon has the best craft beer in the country…

Serving exclusively

Oregon beer

… so why carry anything else?

N E W L O G O

By selling exclusively Oregon beer the Taphouse has a major opportunity to make itself truly unique.

We propose a name change, from Gateway Taphouse to

Changing the name to Oregon Taphouse emphasizes our big idea, drawing on Oregon pride and the culture of Oregon craft beer.

It appeals equally to locals who love their homestate and visitors who want the Oregon beer experience.

OREGON TAPHOUSE.

All creative work from this point on will be branded Oregon Taphouse, but all creative executions could work with the Gateway Taphouse name as well.

N E W N A M E

TA R G E T A U D I E N C E

Primary Audience: 25 to 40 year olds who live and work near Gateway Mall in the Eugene/Springfield area.

Secondary Audience: Out-of-towners staying at hotels surrounding Gateway Mall, including those in town for Duck football games.

• Largest age group in Lane County • Currently growing in numbers in this area • Largest age demographic of craft beer drinkers by gender:

• 44% of women ages 21-34 • 44% of men ages 35-54 • Our target age range meets these two groups in the middle

• Targeting working people in the area, not retirees or students

25-40 YEAR OLDS:

TA R G E T A U D I E N C E

C R E AT I V E W O R K

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Bartender: Hey, what can I get you?

Customer: Hi can I get a PBR?

Bartender: We don’t serve that here.

Customer: Uhhh ok, how about a silver bullet then?

Bartender: Alright, so one water coming up

Customer: What? Bartender: (laugh) You’re not from around here are you?

Customer: No, just moved here from LA!

Bartender: Yeah, I can tell! Why don’t we get you a real beer.

Narrator:

R A D I O A D V E R T I S E M E N T

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Oregon Taphouse. 42 taps. 42 exclusively Oregon beers. Located off I-5 on Gateway St. in Springfield. Open 7am-2am everyday...Come have a drink with us!

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AIRPORT VIDEO

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NEW WEBSITE

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82%

30%

of smartphone owners use a search engine when looking for a

local business

of smartphone owners used their phone to decide whether to visit a business (such as a restaurant) in

the last 30 days31

MOBILE OPTIMIZED

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Menu

Tap List

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Secure the Taphouse as the home of Oregon beer for those who work and live in the area. Build awareness for travelers staying in surrounding hotels, making Oregon Taphouse the place to get the local beer experience.

SHORT TERM (0-12 months):

LONG TERM (1-5 years):

Continue growing Taphouse brand and recognition after initial establishment in the community. Make it a destination spot to try Oregon beer.

Make Oregon Taphouse the flagship location for all Traxler bars. Also have the option to make all Traxler locations “Oregon Taphouse” bars, and increase the number of Oregon beers offered at each location.

M E D I A P L A N : O B J E C T I V E S

M E D I A P L A N : S O C I A L M E D I A

PLATFORMS COST

GOAL Increase Engagement with the brand among current and new patrons and increase brand awareness.

RATIONALE

80% of our target audience is on social media

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Facebook Twitter Instagram

TARGET: 25-40 year olds living in the area (primary), people from out-of-town looking for more information about the Taphouse or wanting to share their Oregon experience (secondary)

Time

of our target is on Facebook

FA C E B O O K

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79%

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I N S TA G R A M

Last year usage jumped 7%

from 18% to 25% among our target audience

Last year usage jumped 6%

from 19% to 25% among our target audience

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T W I T T E R

WHAT 7 week advertisement in the Eugene Weekly

1/4 page

COST

$4,746

CPM: $10

TARGET:

RATIONALE 55% of our target audience say they have read print in the last week

86,160 readership in Lane County

68% of EW readers say they like to go to bars

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P R I N T25-40 year olds living in Eugene/Springfield area (primary)

WHAT 30-second radio advertisements on KKNU and KDUK

During morning and evening drive-times alternating every other week for three months

COST $3,465 CPM: $10.80

TARGET:

RATIONALE

R A D I O

WHY NOT TV? • Live television viewing is down 13% for all ages (except for 55 and older) • 84% of smartphone and tablet owners use their devices while watching TV • Radio has a more captive audience 42

25-40 year olds living in Eugene/Springfield area (primary)

• Radio reaches 91% of our target audience, who spend 16 hours a week listening

• Country radio stations are the most popular overall

• Top 40 radio targets listeners ages 18-34

WHAT Bus advertisements on the buses that are used for shuttles to Autzen Stadium during Oregon Duck home football games

7 buses, 12 weeks

COST $10,500

CPM: $16

TARGET:

O O H : T R A N S I T

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RATIONALE 57,490 people attend each football game on average, not including the people who come only to tailgate

Busses start 4 hours before the games, come every 10-20 minutes, and sit outside during the game

These busses also drive around town when not being used as Autzen shuttles

People in town for Duck games, trying to get them to join us after the game, as well as people living in Eugene/Springfield area (primary & secondary)

WHAT

15-second video advertisement above baggage claim in Eugene airport

Through Eugene Cascades and Coast, Lane County travel organization

COST

$1,200 per year

CPM: $3.00

TARGET:

RATIONALE

O O H : A I R P O R T V I D E O

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People visiting Eugene (secondary)

Captive audience: The ECC video is the only stimulating feature of baggage claim

400,000 pass through the Eugene airport each year

COST $4,500

CPM: $8

TARGET People driving around Eugene (primary & secondary)

TARGET People coming down for Duck Games (secondary)

O O H : I - 5 B I L L B O A R D S

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NORTHBOUND Digital/electronic billboard right before Gateway exit

SOUTHBOUND Traditional static billboard 10 miles North of Eugene

RATIONALE 58% of consumers have learned about a restaurant through a billboard and then visited that establishment

The average total commute time in Lane County is 40 minutes per day

WHAT COST $1,260

TARGET:

RATIONALE Stands out as the only non-chain logo on sign

Constant reminder to those who frequently pass through the area

Average daily traffic on this stretch of I-5: 93,000 vehicles

O O H : L O G O S I G N

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People driving around on I-5 (primary & secondary)

Logo on the “Food this exit” signs Northbound and Southbound on I-5 near 195B and on off-ramp

WHAT 400 (men’s and women’s) hidden t-shirts in Gateway Mall

Tags saying the t-shirt is free courtesy of Oregon Taphouse and is also redeemable for their first beer

COST $2,875

Up to 400 free beers

TARGET:

RATIONALE Take advantage of and leverage the buzz around the Gateway Mall reopening

Tremendous social and word-of-mouth buzz potential

57% of US consumers say they feel more favorable towards brands who give them free shirts.

E X P E R I E N T I A L : T - S H I R T

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Gateway Mall shoppers (primary)

WHAT Power-washed stencil logos

On sidewalks near Gateway Mall, hotels, and bus stops

COST $450

TARGET:

RATIONALE People walking around the area or taking the bus will see the logo frequently in parking lots and sidewalks

G U E R I L L A O O H : P O W E R - WA S H I N G L O G O

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People walking around the area or taking the bus, Gateway Mall shoppers, people staying in surrounding hotels (primary & secondary)

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E X T E R I O R I M P R O V E M E N T S

WHAT Replacing sign face

Paint red trim dark green to match new logo

White lights around trim of restaurant

COST $9,290

TARGET:

RATIONALE Includes new name and a design that better matches the Taphouse’s tone and feel

New trim color matches new Taphouse branding while distinguishing it from it’s Chinese buffet past

Lights will illuminate restaurant at night, drawing attention to the Taphouse

Current and prospective customers, anyone driving by or in the area (primary and secondary)

Print Radio

Bus wraps Airport video

Billboards Logo sign

T-shirts Power wash

Exterior changes Production costs

Total

B U D G E T

$4,746 $3,465 $10,500 $1,200 $4,500 $1,260 $2,875 $450 $9,290 $500 $38,786

ONE-YEAR BUDGET

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T I M E L I N E

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M E A S U R I N G S U C C E S S

• Engagement and analytics on social media platforms (Facebook, Instagram, Twitter)

• Website traffic/analytics • Number of tags redeemed from experiential t-shirt campaign • Influx of customers after Duck football games • Asking new customers how they heard about the Taphouse (Eugene

Weekly, radio ad, power-washing campaign, bus ads, billboards etc.)

Thank

you

I N D E X

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Page 2 (Current Situation): There are over 125,000 daytime employees that work within five miles of the Gateway Mall. The trade area exceeds a 10-mile radius with over 335,000 consumers. The Taphouse is located just down the street and can take advantage of the numerous workers and consumers that are in the area. http://rouseproperties.com/gateway-mall

Page 3 (Current Situation): This Yelp! review is a good example of how the Taphouse is currently viewed. It has tons of space and tv’s but even the customers notice their confused identity. Jeremy G. says, “the space seems geared toward a low-key bar, but they offer breakfast and even though say they're family friendly, don't have a kid menu.” http://www.yelp.com/biz/the-gateway-taphouse-springfield?hrid=CanHy4Ib0ITHB2r3YBkIQw&page_src=shared_via_messages_or_emails

In our competitive analysis research we found that a lot of bars/restaurants nearby have similar offerings, such as breakfast or a large beer selection. (Buffalo Wild Wings has 35 beers on tap, Prime Time has 24 and serves breakfast all day).

Page 5 (Secondary Research): Our secondary research has shown that without a doubt Oregon is #1 when it comes to craft beer. There are currently 234 breweries in Oregon (more per capita than any other state). 20% of all the beer sold in Oregon is made in Oregon and 60% of all draft beer sold in Oregon is made in Oregon. Oregon also ranks #1 on amount of money spent on craft beer. http://oregoncraftbeer.org/facts/

Articles/blogs are often seen commenting on Oregon's love for craft beer. “No other state can match Oregon’s thirst for and fascination with craft beer or the robust diversity of its brewing industry…” - Oregon Business http://www.oregonbusiness.com/articles/20/251

Page 6 (Primary Research& Insights): Consumer quotes: We spoke with Scott, a customer at Gateway Taphouse, around 10:30 pm on a Saturday night. Scott told us he noticed the Taphouse walking by. He was staying at Best Western just a few minutes away and was walking to find a movie theatre. He noticed the pool table and Coor’s sign from outside and decided to come in. We asked him how he felt about local bars/restaurants compared to chain establishments. He said, “When traveling I like to try local spots. Denny’s are the same all across America, but local businesses give you a taste of that culture.”

We also interviewed Adrian Rodriguez, who lives in the area. He has heard of the Taphouse but has never been. He appreciates that it isn’t just another chain restaurant in the area. “I relate more to local or indie businesses. They reflect the community better than chains and are more customer based than profit. I like when local bars create more jobs in the community and reflect Oregon as a whole.”

Insights: We drew these insights from both our primary and secondary research, including lots of observations and interviews. We asked consumers in the Gateway area if they had visited the Taphouse yet and what they thought about out it. We also asked what people thought about local vs. chain and Oregon pride.

Page 12 (Target Audience): The Eugene Area Chamber of Commerce shows that 25-40 year olds make up the largest age group in Lane County. http://www.eugenechamber.com/community/facts_figures.aspx

We also found that the 25-40 year old age group is growing in numbers in the area. file:///Users/MichelleMiley/Downloads/Eugene%20Springfield%20Five%20Year%20Consolidation%20Plan_201203221428320062.pdf

When researching our age demographic and craft beer specifically we found that women ages 21-34 drink more craft beer than any other age group, and men ages 35-54 drink more craft beer than any other age group. Our target age range meets these two groups in the middle. http://www.statista.com/statistics/289529/us-craft-beer-drinkers-by-age-and-gender/

Page 31 (Mobile Optimized): Having a website, especially one that is mobile optimized is key for consumers. 82% of smartphone users use a search engine when looking for a local business: https://think.storage.googleapis.com/docs/4-new-moments-every-marketer-should-know.pdf

More Google searches take place on mobile devices than on computers: https://think.storage.googleapis.com/docs/4-new-moments-every-marketer-should-know.pdf

80% of internet users own a smartphone. 30% of smartphone owners used their phone to decide whether to visit a business (such as a restaurant) in the last 30 days. http://www.pewinternet.org/fact-sheets/mobile-technology-fact-sheet/

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Page 37 (Media Plan: Social Media): Social media is more prevalent than ever and with 80% of our target audience on social media, it is a very useful tool for reaching/engaging with consumers. http://www.pewinternet.org/fact-sheets/social-networking-fact-sheet/

Page 38 (Facebook): The Taphouse already has a Facebook page which is great because 79% of our target is on Facebook. http://www.pewinternet.org/2015/01/09/social-media-update-2014/

Although Facebook is very popular amongst our target, it is not the only social media platform being used. 52% of online adults use multiple social media sites. http://www.pewinternet.org/2015/01/09/social-media-update-2014/

Page 39 (Instagram): Instagram is another great online platform to engage with your customers. Last year usage jumped 7%, from 18% to 25%, among our target audience. This shows a rising trend towards Instagram amongst 25-40 yr olds. http://www.pewinternet.org/2015/01/09/demographics-of-key-social-networking-platforms-2/

Page 40 (Twitter): Twitter has also been trending amongst 25-40 yr olds. Last year usage jumped 6%, from 19% to 25%, among our target audience. http://www.pewinternet.org/2015/01/09/demographics-of-key-social-networking-platforms-2/

Page 41 (Print): Print is a relevant medium and should be taken advantage of seeing that 55% of our target audience say they have read print in the last week. http://www.americanpressinstitute.org/publications/reports/survey-research/social-demographic-differences-news-habits-attitudes/

Eugene Weekly total readership: 116,339 Lane County: 86,160 18-49 year olds: 47,637 http://www.eugeneweekly.com/sites/default/files/uploads/2014-reader-profile.pdf

According to Eugene Weekly’s reader profile: 68% of readers like to go to bars 7,751 readers have dined out 4+ times in the past 2 weeks 8,513 readers have drank 6+ times in the past 2 weeks 23,234 readers have stayed in a hotel/motel for 10+ nights http://www.eugeneweekly.com/sites/default/files/uploads/2014-reader-profile.pdf

Cost breakdown: We are recommending a ¼ page size ad which will be $4,746 for 7 weeks (7 issues). http://www.eugeneweekly.com/content/advertise

Page 42 (Radio): Radio reaches 91% of our target audience in the Eugene/Springfield area. They spend 16 hours a week listening. http://eugeneradio.org/pdf/media_facts_eugene.pdf

Top 40 stations appeal to 18-34 year olds which hits the younger half of our target audience. http://www.allbusiness.com/choosing-the-right-radio-format-for-your-target-audience-14896329-1.html

Country music is #1 among adults in our target. By placing ads on country and top 40 radio stations, we are able to target our whole age group. http://www.cmaworld.com/cmaaddons/world/2013-ConnectwithCountry.pdf

We have decided not to recommend a television commercial, but wanted to explain why. We chose radio instead of tv for a number of reasons. Live television viewing is down 13% for all ages (except for 55 and older). Additionally, when consumers are watching tv they tend to be distracted while doing so. 84% of smartphone and tablet owners use their devices while watching TV. Radio advertising avoids this problem because people have to focus on driving and are not distracted by other devices when listening. We were also concerned about the prevalence of fast forwarding through commercials and we did not want to create a tv spot only for it to be ignored. Through online research we found that: 76% of US households have a DVR, subscribe to Netflix, or use on-Demand 62% of US households that subscribe to a pay-TV service have a DVR Almost 90% of people with DVR always skip commercials

http://www.broadcastingcable.com/news/currency/tv-viewers-getting-older-fast-analyst-says/133656 http://www.telecompetitor.com/nielsen-84-of-smartphone-tablet-owners-use-them-as-second-screens/ http://www.leichtmanresearch.com/press/010215release.html

Our radio ads would run every other week for 3 months alternating which station has the morning advertisement and which station has the evening advertisement. Example:The first week of the month would be KDUK morning and KKNU evening and then the third week of the month would be KKNU morning and KDUK evening.

Cost breakdown: Cost per ad: KDUK morning: $40 KDUK evening: $55 KKNU (regardless of morning/evening): $58

Total for KDUK morning ads: $40 per ad x 5 days per week x 3 weeks = $600 Total for KDUK evening ads: $55 per ad x 5 days per week x 3 weeks = $825 Total for KKNU ads: $58 x 5 days per week x 6 weeks = $1,740 Total for all ads: $3,165

Page 43 (OOH: Transit): The average game attendance at Autzen stadium is 57,490. And that’s not even including all those that show up just to tailgate. http://www.goducks.com/fls/500/pages/athlfin/2014AthleticDepartmentFinancialOverview.pdf

The busses start shuttling 4 hours before the games, come every 10-20 minutes, and sit outside during the game. http://www.goducks.com/ViewArticle.dbml?ATCLID=384585

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We are recommending 7 Kong buses (larger ad space on side of bus, also allowing for up to 20% window space) for 12 weeks Total: $10,500 including production costs

Page 44 (OOH: Airport video): To give an estimate of how many people will see this video, we found that 400,000 people come to the Eugene airport each year. http://nwtravelmag.com/nonstop-eugene/

Cost breakdown: We recommend a 15 second video with an annual rate of $1,200. http://www.eugenecascadescoast.org/members/advertising-opportunities/

Page 45 (OOH: Billboards): 58% of consumers have learned about a restaurant through a billboard and then gone to that establishment. http://www.forbes.com/sites/marketshare/2011/10/10/does-outdoor-advertising-still-work/

The average commute time in Lane County is 40 minutes per day (20 min each way). http://www.bestplaces.net/county/oregon/lane

Cost breakdown: Traditional I-5 south billboard: $2,500 for 4 weeks Total for the year: $2,500

Digital I-5 north billboard: $1,000 for 4 weeks Twice per year Total: 2000 per year

Page 46 (OOH: Logo Sign): Daily average traffic on this stretch of I-5: 93,000 vehicles http://rouseproperties.com/gateway-mall

Cost breakdown: I-5 south main freeway: $430 I-5 north main freeway: $430 I-5 north off ramp: $200 I-5 south off ramp: $200 Total: $1,260

Page 47 (Experiential: T- shirt): We want to take full advantage of the Gateway Mall opening and all of the consumer traffic that will come with it. We spoke with the manager offices at Gateway Mall who said the mall will be opening sometime between October and November of Fall 2015.

One study found that logoed shirts have an average staying power of 6.3 months. This means each shirt has an average of 6.3 months of walking advertising. Additionally, 57% of US consumers say they feel more favorable toward brands who give them free shirts. http://jpaulco.com/5-ways-branded-t-shirts-sway-opinions-influence-people/

Cost breakdown: 400 t-shirts: $2,800 tag production: $75 Total: $2,875

Page 48 (Guerilla OOH: Power-Washing Logo): Cost-breakdown: Stencil (one time cost): $150 Day-long power-washer rental: $100 Total (If done three times per year): $450

Page 49 (Exterior Changes): Cost breakdown: Cost for lights: $1,040 for 200 feet of large-globe outdoor LED lights (LED are more expensive, but last way longer). Painting trim: $250 New sign: $7,000 Total: $9,290

Page 50 (Other Suggestions): Yelp: Yelp is a frequently used app/website for people to find food in the area, information about prices/hours, and check reviews. Because of its prevalent usage, it’s important to keep the page accurate and up to date.

Encouraging customers to post reviews can improve the Taphouses’ ratings and bring in more new business. Having a Yelp deal (similar to a Groupon) and posting a Yelp sticker in the window are two ways to promote Yelp reviews.

http://www.creativesearchstrategy.com/local-seo/study-how-important-are-yelp-reviews-really/

Eugene Cascades & Coast: Taking full advantage of your ECC membership is a great opportunity to draw in new customers and build relationships within the community. Through their website you can post coupons and events to their calendar which is open to the public. They also hold biannual ECC events where you have the opportunity to have a table with beer samples. ECC members are highly involved in the community so engaging/creating relationships with them will be to your advantage. http://www.eugenecascadescoast.org/members/benefits/

Page 51 (Budget): See corresponding parts of the index for specific cost breakdowns.

Production costs include $300 for radio production and $200 for the airport video production. Airport video is short and footage for beginning shots of Oregon breweries could be donated/obtained by the respective breweries in exchange for the free publicity, helping to minimize costs.

Page 52 (Media Plan Timeline): The timeline is primarily a five month period with year-long continuous advertising for year-long contracts and social media because it will be a constant presence.

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Print: Every other week for 5 months to provide continuous coverage over the five-month advertising period.

Radio: Beginning as a second-flight advertising one month after print advertising in correspondence with the Gateway Mall opening and the experiential advertisement.

Social: This will be a continuous advertising strategy for the brand.

Airport video: Because of the low relative cost and the ability for the airport video to reach people who are outside of the geographic boundary of the primary audience we are recommending a year-long contract. The video will continually reach people who will be coming and staying in nearby hotels and will target our long-term vision of expanding brand awareness for Oregon Taphouse as the place to experience Oregon beer.

Northbound I-5 billboard (digital): The first billboard execution will be published at the beginning of the advertising period with the start of other first-flight advertisements. The second will immediately follow in order to take advantage of the opening of extra Gateway mall traffic due to the reopening and to the experiential campaign.

Southbound I-5 billboard (traditional): This billboard will be published in the midst of the most important home football games to target the most out-of-town traffic.

Logo sign: This is a year long contract, however we recommend keeping it long term (indefinitely).

Power-washed stencil logos: This pulsing advertisement will begin at the start of the advertising term and be repeated twice throughout the year. The spacing out will make the stencil novel every time it is produced and will target the warmer parts of the year when more people are walking. The stencil will last longer when there is less rain.

Bus wraps: This 12-week deal spans the football season, taking advantage of the hype around football season and crowds from out of town for the games, also works with south-bound billboard.

Experiential T-Shirt event: This is timed to take advantage of the reopening of Gateway Mall. The opening does not have a strict date, but is set for some time in October or November.