Oktoberfest

Background

• Product: a celebration of culture & pride
• 6.4 Million consumers
• Stakeholders: City of Munich, Breweries, Workers
• Focus on consumer experience

The "Formula": fairground atmosphere + rides + musicians + entertainment + beer = CELEBRATION

Goal: Capture more value and increase the profitability of Oktoberfest

Recommendation

• GO GLOBAL, specifically Beijing
• Fastest growing middle class segment
• Proved success, unauthorized
• Abundant resources
• VACATION PACKAGES in Munich and Beijing

Maximize Munich

• Vacation packages
• Attract volunteers
• Benefits City of Munich
• Value for customers
• Unique experience for volunteers

Go Global

• Opportunity to market to more people
• Lower cost countries
• Increase market for German and local beer
• Benefits City of Munich/Committee
• More business for breweries

Go Global

• Opportunity to market to more people
• Lower cost countries
• Increase market for German and local beer
• Benefits City of Munich/Committee
• More business for breweries

Alternatives

Country Attractiveness

Beijing

• PROs: Resources and Population
• Projected to be the largest beer market in 2017
• CONs: Different tastes in beer, marketing, history
• OPPORTUNITY: make them like German beer!
• OPPORTUNITY: draw them to Munich!

Munich

• PROs: History, location, well-known, authentic
• European countries are close and drink much beer
• CONs: Availability and cost of land and labor
• Non-commercialization = hard to make profit

Competitive Forces

• MUNICH: Incumbents = barrier to new entry
• Threat of substitutes low = hard to profit off new market
• BEIJING: No incumbents = low barriers to entry
• Threat of substitutes high = easy to profit off new market
• Threat of competitors high = more bargaining power for you

Maximize Market: If you don't, someone else will.

Global and Unique Factors

• Keep: offer German beer and food
• Keep: cultural story and costumes -> exhibits
• Keep: traditional music and entertainers
• Change: have local beers on draft too
• Change: add local entertainment groups

Changes from Beijing 2013

• no entrance fee
• grounds open longer each day
• increased marketing 
• authorization from City of Munich

Our "Formula": Vacation Packages + Increased Marketing + Global Adaptation = more value and successful CELEBRATION

Questions?

Appendix

Why these countries?

• Case mentioned Beijing event and Italy Carnival
• German Australians are one of largest ethnic groups in AU
• Argentina has fifth largest population of German immigrants 
• Drinking age is strictly enforced in US and Canada
• Too many festivals and competition in Brazil

Detailed Alternatives

Detailed Country Attractiveness

Financial Factors

• resources cost: Beijing
• marketing cost: Beijing>Munich
• revenue per capita: Beijing
• gross margin: Beijing>Munich
• costs-benefit analysis of vacation packages

Financials

Implementation (One-Year)

• Cost-benefit analysis (ongoing)
• Customer surveys (1 month)
• Contact Olympic Park and breweries (3 mo.)
• Wide scale marketing campaign (4 months)
• Review and improve next year (2-3 months)

Risks

• Loss of history
• Different tastes in beer
• Low attendance
• Mitigate: exhibits, traditional & local assets, marketing
• Mitigate: best, likely, worse case scenario financials

Rising Incomes = Beer Money

Resources

• https://bovbeers.wordpress.com/2011/07/02/number-of-breweries-worldwide/
• http://www.bbc.com/news/magazine-19488060 
• http://firstwefeast.com/drink/the-most-popular-beer-in-the-world-is-chinese... 
• https://bovbeers.wordpress.com/2011/07/02/number-of-breweries-worldwide/
• http://goo.gl/alCsOC