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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group, the popularity of craft brewery is slowly on the rise. Craft beer is most popular with the 25-34 age group, where 29% of respondents reported drinking craft beer. The largest demographic age group that reported drinking beer was the 22-24 group. In this group, 37% of respondents reported that they drank non-craft beer compared to only 21% of respondents reporting that they drank craft beer (Bloom, 2014). There are a few possible reasons as to why the largest group of beer drinkers is not consuming more craft beer. Because 21 is the legal age to drink alcohol, these consumers may not be aware of craft beers. Many craft breweries do not have the name recognition of large, non-craft beer producers such as Busch, Miller, or Coors – the three major firms in the U.S. brewing industry (Nelson, 2005). Craft beers may also not be as readily available to these age groups compared to non-craft competitors. This age group has a large portion of the members in college, where there’s a lot of social drinking occurring. It could be easier for college students to drink the options given to them at a house party, where big names are easier to get ahold of, rather than taking the time to go purchase their own alcohol. An additional reason that the 22-24 age group isn’t drinking craft beer is because of the higher cost of craft beers compared to non-craft beer (Nelson, 2005). While craft beer is not as popular as non-craft beer in every age group, it is important to note that “craft does a better job of maintaining interest across age groups than does non-craft. The more sophisticated air of products, and diverse flavor profiles that appeal to a range of palates likely contribute to this” (Bloom, 2014). Gender According to the survey about craft beer conducted by Mintel, men are far more likely than women to drink craft beers (Bloom, 2014). This parallels market findings for beer in general in the United States. Miller Brewing Company created a demographic profile of beer consumers and found that 77% of those consumers were males (“BEER,” 2014). Income Recent survey analysis has shown that “household income appears as the strongest determiner of craft beer purchase” (Bloom, 2014). Out of the data collected, just over a third of the participants from households earning over $150K a year drink craft beer. This is the largest representation of craft-beer drinkers compared to the other groups. Participants of the survey who earned less than $25K a year reported that only 11% of them drank craft-beer (Bloom, 2014). When you compare this craft-beer data with the findings of non-craft beer drinkers you will find that there’s a much bigger gap between the craft-beer drinkers. This could be caused by the perception of craft beer. Craft beer drinkers who had household incomes of $50K or less reported that they only drank craft beer occasionally. These consumers see craft beer as an indulgence and purchase it as a personal reward or a pick-me-up (Bloom, 2014). This could be because of the higher price of craft beers compared to non-craft beer. The price difference is enough of a difference to the lower income groups that they see craft beer as an indulgence. Marketing In order to optimize sales for Sun King Brewing Company the firm needs to direct marketing to the people most likely to consume their products. Older Millennials Older Millennials (25-34) are the age range that is most likely to consume craft beer. While this age group prefers to shop in stores than online, there are benefits to marketing to them digitally. Millennials take advantage of technology and marketing in order to receive discounts and deals on products. Additionally, “Millennials are willing to receive emails from companies/brands in return for a discount, an invitation to a special sale, or some other compelling offer” (O’Donnell, 2014a). This does not mean that Millennials purchase the cheapest item available to them. Millennials will pay more for a product or service if they believe it’s worth it – they want a positive experience, high value for their money, positively reviewed items, and things that make them feel good about themselves. Additionally, they are likely to shop at stores that they perceive as being good, “companies that either support issues they believe in, take an active role in their community, or donate to charities and nonprofit organizations. While it may not be a primary decision-making factor, corporate altruism is meaningful to Millennials and, when authentic, it can underscore the emotional connection that influences their brand loyalty” (O’Donnell, 2014a). Millennials also have expectations that companies have a social media presence. A Mintel survey shows that 28% of surveyed Millennials believe that companies/brands need social media pages; however, only 19% responded that they liked seeing advertisements from companies on their social networking sites (O’Donnell, 2014a). Men While men are a broad marketing base it is important to recognize them as a target audience since they account for over ¾ of beer sales. Surveys show that the most effective way of marketing to men is through technology, primarily television and the internet. Traditional TV advertising is the most effective way to market to men. This type of advertisement reaches more men than any other way. Research shows that TV ads also have a greater impact on men (O’Donnell, 2014b). “More than one third of men have talked to friends or family about ads they saw on TV. This behavior is generally consistent across all age groups, demonstrating the broad penetration that traditional ads have on male consumers” (O’Donnell, 2014b). Internet is also a very effective tool in marketing to men. On average, men spend 9 hours a week on the internet. Men are also more aware of the advertisements online. “More than one third (36%) of men surveyed reported seeing at least one online ad… 29% of men report having made a purchase in the month following seeing an online ad” (O’Donnell, 2014b). While the internet is not as effective at marketing to men as television, it still merits enough results to be worthwhile. Affluent Consumers Data collected shows that income is the strongest indicator of craft beer purchases.
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,
2010). Affluent customers are going to take the time to research a company before they spend their money. It’s important that advertisers take the time to create a personal experience for consumers by following the above recommendations. Affluent customers will then view the company as a luxury and a company who values ethics and the consumer, which will make them more likely to purchase products by the company (Haack, 2010). References BEER. (2014). Restaurant. Food & Beverage Market Research Handbook, 15428-434. Bloom, B. (2014, June). Craft Beer. Retrieved from Mintel Reports. Haack, C. (2010, July). Marketing to Affluent Consumers. Retrieved from Mintel Reports. Lynch, A. (n.d.). All the King’s Men. Indianapolis Dine. Retrieved from http://amylynch.files.wordpress.com/2011/12/indianapolis-dine-spring-2010-sun-king-brewing-company.pdf Nelson, J.P. (2005, Jan.). Beer Advertising and Marketing Update: Structure, Conduct, and Social Costs. Review of Industrial Organization, 26. Retrieved from Business Source Premier. O’Donnell, F. (2014, July). Marketing to Men. Retrieved from Mintel Reports. O’Donnell, F. (2014, Feb.). Marketing to Millennials. Retrieved from Mintel Reports.
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
The beer brands were classified as popular, premium, super premium, and ultra-premium. The distinguishing factor determining if brands belonged to different classes was whether beer was produced by four largest companies (Anheuser-...
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.
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...
Worsnop, R. L. (1997, March 14). Alcohol advertising. CQ Researcher, 7, 217-240. Retrieved from http://library.cqpress.com/cqresearcher/
As larger beer corporations move toward this growing market, NBB will have to develop measures to maintain market share (Gorski, 2013).
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...
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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.
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