Kassandra Wiley
Individual Report
Target Audience and Demographics
Research into the target audience of Sun King Brewing Company showed that the owners have stated on record that they have no particular target audience. Rather than focus on a singular group of people to advertise to, the owners wanted to market to a broad audience. Most of this line of reasoning is that they would like to introduce their product to people who are fans of local, fresh products (Lynch, n.d.). To reach a deeper understanding of the marketing techniques of Sun King Brewing and to make more informed recommendations, we can examine the demographics of craft brewery audiences.
Age
Surveys conducted by Mintel, a market research firm, show that while non-craft beer is more popular than craft beer in every age
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Consumers with an income of $150K+ are the most likely to purchase craft beer (Bloom, 2014). Research shows that, “marketing that appeals to the intellect may be particularly effective for the affluent customer” (Haack, 2010). Affluent customers typically show disdain for advertisements, making them particularly difficult to market to. However, their “adoption of technology, cultural sophistication, higher awareness of corporate ethics” provide opportunities for companies to market to them.
Technology is a great gateway to reach the affluent consumer audience. Consumers in this category are likely to use technology to thoroughly research a product or company before making their purchase. It is suggested that companies take extra time and effort to online sources in order to attract affluent customers. Recommendations include, “reach out to users who post negative reviews and find ways to mitigate their impact or explain misplaced blame, connect with shoppers on a more intimate level than broadcast TV through blogs, and use social media as a way to improve customer satisfaction” (Haack,
The company launched an initiative collaborating with the “Lyft”, which will provide free rides for drunk customers [8]. This indicates the amount of dedication the company has towards its customers. It also provides tours to customers across the 12 flagship breweries in the United States [9] and would also help customers with samplers. Any company that values its customers would become a great success and Anheuser Busch has proved this again. It also values its employees making sure every one of them feels like an owner and everybody would work as considering the results to be personal [10]. All these put together has helped the ANHEUSER BUSCH to brew beers that are loved by their customers and in making it the leader of its domain of
Belgium is known for a culture of high-quality beer and this concept was formulated by an electrical engineer from Fort Collins, Colorado. The electrical engineer, Jeff Lebesch, was traveling through Belgium on his fat-tired mountain bike when he envisioned the same high-quality beer in Colorado. Lebesch acquired the special strain of yeast used in Belgium and took it back to his basement in Colorado and the experimentation process was initiated. His friends were the samplers and when they approved the beer it was marketed. In 1991, Lebesch opened the New Belgium Brewing Company (NBB) with his wife, Kim Jordan, as the marketing director. The first beer and continued bestseller, Fat Tire Amber Ale, was named after the bike ride in Belgium. The operation went from a basement to an old railroad depot and then expanded into a custom-built facility in 1995. The custom-built facility included an automatic brew house, quality-assurance labs and technological innovations. NBB offers permanent, seasonal and one-time only beers with a mission to be a lucrative brewery while making their love and talent visible. In the cases presented by the noted authors (Ferrell & Simpson, 2008), discusses the inception, marketing strategy, brand personality, ethics and social responsibility that New Belgium Brewing Company has demonstrated. The key facts with New Belgium Brewing Company are the marketing strategy, promotion, internal environment and social responsibility with the critical issues of the public, brand slogan, growth and competition.
The scope of this report is an evaluation of the profitability of each brand. The report does not intend to make recommendations of how invest and promote new products and how to increase brewing capacity.
From our research, Anheuser-Busch is content with being the number one beer company in the world, increasing sales each year in operation. We found that Anheuser-Busch met many views associated with the world, business, and behavioral dimensions. The company also displayed its stability as we reviewed one of its most successful products Budweiser, owned by Anheuser-Busch, under the marketing view and the financial view. Not only do they hold almost half of the market share in the industry but their stock prices, sales volume, and net sales have all increased from 2002 to 2003. We also looked at Budweiser in terms of geography and culture. We found due to the fact that the "western" countries consume the majority of beer, it only makes sense that Anheuser-Busch concentrates on that market. Along these lines, another key goal that is also important to Anheuser-Busch is to boost other beer markets that are located in other cultures, where at the time beer is not a major consumption.
Mountain Man has many unique factors that add value to their brand. First and foremost, Mountain Man is family owned and therefore perceived as being high quality and considered a legacy product. The lager also has a reputation of being a miner’s beer and many people seem to drink Mountain Man in an attempt to connect with previous generations. Their fathers and grandfathers drank Mountain Man and they want to drink it too. Mountain Man lager is respected for its old school, regional brew characteristics (strong, dark, and bitter). The beer’s primary consumers are mainly blue-collar men who are in the middle-to-lower income bracket and over the age of 45. Due to these unique qualities, Mountain Man had created a str...
The United States of America has a population of 260 million people. This is a big market with substantial purchasing power. As of 1997, Breckenridge Brewery has only expanded eastwards and the west side of the country is relatively untouched. According to Exhibit 2 in the case study, there were only distributors in 32 states and that leaves a potential to sell to the other 19 states as w...
Worsnop, R. L. (1997, March 14). Alcohol advertising. CQ Researcher, 7, 217-240. Retrieved from http://library.cqpress.com/cqresearcher/
In recent years Anheuser-Busch has faced increased competition in the U.S. market. As a result of this increased competition the company has been looking overseas for growth and increased profits. The American market is a relatively stagnant market for Anheuser-Busch. There is very little growth in America and 94% of Anheuser-Busch’s sales occur inside America (Anheuser-Busch, 1999). Anheuser-Busch also has the resources to compete with any European brew in the European market. In many countries in Europe, Anheuser-Busch has begun to gain some market share and turn some profits. The Amer...
commercial appeals to the demographic of young, entrepreneurial males who are wanting to become more than what people and society thinks they should be and they not only want to sell their beer but also have an underlying message of pro-immigration.
Demand for alcoholic beverages has a tendency to be higher among family units with higher levels of disposable income. Age may also determine the taste preferences of consumers. Per capita consumption of beer is higher among 19- to 34-year-olds than other age groups, while purchases of wine remain strong among consumers aged 35 and older. Men continue to dominate Canadian beer consumption, drinking an estimated 61.1% of beer in terms of volume. Men aged 18 to 34 will drink an estimated 24.4% of beer sold domestically in 2017, because they are more likely to purchase beer in high quantities and buy a variety of craft brews to sample. Men in this age range are not only the most likely to drink beer, but also typically drink a greater volume of beer than other age groups. Since women consume beer less frequently than men, they represent a smaller market for the Breweries industry. Although consumption by women has increased over the past five years, women are estimated to drink only 38.8% of the beer sold in Canada. Breweries are introducing new products that have performed well with female test groups, such as sweetened beers. Low-calorie products are also increasingly marketed toward women as brewers seek to tap this growing market. Women aged 18 to 34 are estimated to drink 17.9% of the beer sold in Canada in 2017, surpassing all other female age groups as they try newer
Everywhere we go we are told what to wear, what to drink, how to look, and so on. Be it by billboards, newspaper, television, magazines, it’s everywhere. That being said, advertisements have a great influence on our lives. While researching ads for a similar products from two different American time periods, I came across two beer advertisements – one from the 1950s and one in the 1990s. In the 1950s, beer advertisements focused their attention on family, specifically how a mother and a father, supporting and maintaining a household, should enjoy beer. Yet, in the 1990s, beer advertisements main focus was on the male consumer. What do men like more than beer? Yes, women. The advertisement industry utilized attractive women to be associated in the ads but have no necessarily affiliation with the product. The difference between these two ads show about American culture is that back then it was about gender roles and nowadays is about sexism. Beer advertisements should not be in local advertisements because the message exhibits stereotypes. Since the early days of time the stereotype o...
So today we discussed the basics of beer and why it deserves the respect of any other hobby. We also discussed the beginner’s methods to homebrewing, and then delved into the more advanced methods of the all-grain brewer. The point I want everyone to walk away with today is that beer can be as simple or as complex as you want it to be, but that it should always be respected and enjoyed to the fullest. Just remember the next time you crack open a cold “brewskie” that your ancestors over 6000 years ago were doing something quite similar.
Every company and/or organization starts and operates to achieve a single major goal, which is normally included in the company’s mission statement. Setting a goal, however, does not translate into success on its own; it is only the fist step. Understanding market segmentation is the second most important aspect of doing business. “Sellers and advertisers want to be able to determine what the potential market is for their product or service, as well as the best ways to reach potential consumers” (Terrell, 2013). Once a goal is set, an organization first must decide if it wants to operate locally, regionally, nationally, and/or internationally, as the size of the geographic coverage has a large influence on demographic coverage. It is crucial for a business to understand what it is meant by demographic coverage; it is to understand people’s age, gender, culture, social norms and beliefs, and income in a given geographical size (Grewal & Levy, 2010). Let’s take a high class and luxury bar as an example to explain the importance of these key factors. If the bar is located in an area where the average age is 60, it will be safe to assume that the business will have difficulties finding many customers. Similarly, the business will not be able to survive if it is located in an area that has a lot of Mormon or Muslim residents as drinking alcoholic beverages is prohibited by these religious practices. On the other hand, if the said bar is located in an area such as San Francisco where the average age is around 38 years old, the median income is ~$70,000, and the culture is a melting pot of many races with many beliefs and behaviors, it will most likely thrive to its full potential (city-data.com, 201...
As larger beer corporations move toward this growing market, NBB will have to develop measures to maintain market share (Gorski, 2013).
As more and more consumers turn to online retailers for to make their purchase, the Internet has also become an informal reference and referral guide. It is natural to ask and offer advice and the Internet is making it easier for consumer to do so. For example, someone on Facebook can post a question to friends and family asking for recommendations or experiences with, the local handyman, car seats, or family vacations at Disneyland. Response times are quick, condensed, and valuable. Although Facebook friends may not be experts in the field, the one seeking it respects their opinion. These recommendations as well as research can greatly drive a purchasing decision. Consumers also search for