Where I’ve been ...................................
1980
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...................................where I’m going
2006
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DEC - 2010
2020
2030
STRATEGY Positioning a beer brand. Samuel Adams
OBJECTIVE Discover a strategic opportunity for the Boston Beer Comany (Samuel Adams) based on their category dynamics, current equity, core competency, and consumer insight.
CATEGORY DYNAMICS - An industry at a cross-road With the corporate giants desperate to increase profits for their share holders, Boston Beer Company must combat the massive assault that is coming from its big-beer competition, while still maintaining their position as the craft brew leader. The beer industry in the U.S has reached a crossroad. At the center of this crossroad sits Sam Adam’s. On one side there are the usual suspects; the corporate behemoths that have defined the American beer industry since its inception. These
entities include Anheuser Busch – Inbev and MillerCoors, whose beer production constitutes over 94% of the total beer produced in the country. On the other side of this industry split are the craft (better beer) brewers, which include two import beer power houses; Corona and Heineken. The rest of the better beer segment consists of smaller craft beer breweries, microbrews, and brew pubs. These smaller brewers consist of such brands as Sam Adams, Sierra Nevada, and New Belgium, just to name a few out the fifteen hundred plus that exist. In relation to the entire beer industry the craft segment has literally “tapped” into un-paralleled growth over the past four years. A leading beer industry website, beerinsights.com, noted that in the first half of 2010 the craft beer category experienced shipment increases of 5%, while total U.S beer was down 1%. More recently, craft has seen double-digit growth, while imports and light domestics continue to lose out. It’s clear that craft beer is, and will be, the leading category in the industry. Since craft beer is the only segment in the industry experiencing growth, it’s no surprise that the bigbeer conglomerates are breaking into the category and flexing their muscle. This presents the entire category massive hurdles to overcome. Currently, Sam Adams, a true craft brewer, accounts for 23% of the total U.S craft beer volume; a feat which has taken them decades to achieve. On the other hand it’s only taken just a few years for the corporate “imposters” to capture upwards of 25% of the craft beer market with the introduction of their “faux” craft brands.
GATEGORY DYNAMICS - Competitive Landscape As it stands today, Sam Adams is the top selling craft brewery (based on gross sales) with Sierra Nevada, and the New Belgium Brewing Company (Fat Tire) coming in second and third respectively. The competition presented by these true craft competitors is relative. The Brewers Association recognizes Sierra Nevada as the number two craft brewer (by sales). When we compare Sam Adams’s 2 million barrel a year production against Sierra Nevada’s 700,000 barrel a year production, Sierra Nevada seems rather insignificant in terms of overall market share. This separation grows exponentially as you work your way down the list of top 50 craft brewers by volume. There are also the two imports, Corona and Heineken. Each has seen a significant decline in sales compared to their craft brew competitors. They are worth mentioning as competitors, but it’s important to note that their sales volumes greatly exceeds those of the true craft brewers with almost 200 million cases sold annual between the two of them. Ultimately, Sam Adams’s greatest threat lies with the corporate giants and their host of “faux” craft brands. Alternately, Sam’s smaller true craft beer competitors are more like allies in a constant rebellion against the corporate giants who wield their political and financial clout. This supreme dominance over the entire industry has allowed the big-beer giants to muscle their way into the craft category much
to the detriment of the smaller craft brewers and ultimately their consumers. MillerCoors’s Blue Moon beer is an example of the bigbeer push into the category. In an extremely small amount of time Blue Moon has established itself as one of the top sellers in the craft market. What most consumers aren’t aware of is that Blue Moon goes against the very grain that defines the typical craft beer drinker who typically chooses a distinctive craft beer not just for its flavor, but to make a social statement by supporting small independent business and shunning corporate America. As MillerCoors Blue Moon brand continues to grow they have been able to keep under the radar by implementing a clever campaign which has specifically focused on playing down their involvement with their big-beer parent. Similarly, Anhuaser Bush has released their American Ale series and a host of “faux” craft brands.
CURRENT EQUITY - Stately innovator of quality beer
CONSUMER INSIGHT - Willing, but intimidated
Since its inception, Samuel Adams has created an image in the mind of the consumer that typifies the essence of quality craft beer.
Mainstream beer drinkers are often intimidated by the perceived complexity of craft beer and the ultra-sophisticated stigma craft has created in the eyes of the mainstream American beer consumer.
The Sam Adams brand is regarded as the premier innovator of quality beer. Currently, the brand posses a strong “stately” image across the entire beer industry while maintaining the highest level of ubiquity within their specific craft category. Through constant innovation and a passion for craft brewing, Samuel Adams is now the most established and recognized brand in the craft category.
CORE COMPETENCY - America’s flagship brewery With all of the traditionally American big-beer breweries falling under foreign ownership as a result of massive corporate mergers, Samuel Adams is now America’s largest brewer. Samuel Adams carries an unmatched passion for brewing quality beer. In addition, the brand’s unique willingness, within the craft category, to inform beer drinkers what better beer stands for has helped to educate consumers about the brand and why craft beer and Samuel Adams are so important to the U.S beer industry.
The general beer category is notorious for its funny, dimwitted creative pieces. The two major American brewers dominate the airwaves with creative that promotes the brand as a whole, usually with a single catch phrase like “drinkability” and commonly setup by some form of situational comedy. The creative work offered by these conglomerates is highly pervasive and usually found in outlets that reach the younger male drinkers. These ads are so pervasive that they define what a beer ad should be; an ad that doesn’t take itself too seriously and rarely preaches about the significant quality of the beer itself. Craft beer ads are much more subtle, focusing on the artfulness and quality of beer as it stands by itself. Most craft beer creative work carries a serious tone intent on sending a message that beer is something more sophisticated and complex. While the more serious tone may appeal to the craft category’s core drinkers, it has isolated many of the mainstream beer drinkers who are willing to try and upgrade.
STRATEGIC OPPROTUNITY - “From a stately image, to the beer next door” By developing a more approachable creative tone for Boston Beer’s flagship lagers, the brand has the opportunity to position itself closer to the middle of the industry divide. Boston Beer must differentiate which of the brand’s products they want speaking to the more traditional craft drinker and which product they want speaking to the mainstream beer drinkers who are willing to upgrade. Most educated craft drinkers are already well aware of what they are getting with Boston Beer’s flagship lagers, the Boston Lager and Boston Lager Light, and are likely to be more interested in the more complex offerings like the company’s extreme and seasonal brews. The creative work for these products should continue to use a distinctive serious tone, but instead of being so preachy the message should focus more on the lifestyle of the traditional craft consumer and how these select Samuel Adams’s brews parallel such a lifestyle. All the while, these messages must reinforce the fact that the Boston Beer Company will never be anything less than a traditional craft brewer. Effectively achieving this strategy will have
addressed the chance the brand stands of losing loyalty among its more informed craft drinkers while still building the brand’s equity. The second differentiation should be which product they want speaking to the more casual and less informed beer drinker. The products that should take focus are the brand’s more familiar and well established flagship lagers, the Boston Lager and Boston Lager Light brews. The creative used here should intentionally miss the traditional craft drinker and really strike a chord with those less “informed” drinkers. Here, the message should take on a more humorous tone but still hint to the fact that Samuel Adams represents an upgrade compared to the generic brews, but the Sam Adams brand still knows how to have fun. In doing so, the brand will be in a position to capture a larger share of potential craft purchasers by appealing to those consumers who are slightly intimidated when deciding to make the leap and upgrade their choice of beer. Following such a strategy will allow Boston Beer to recapture some of the market which has been siphoned away by the big beer’s introduction of their own craft offerings.
STRATEGY Category Study
WHO’S RIDING? A segemented glance at the category
MOUNTAIN BIKERS
THE CASUAL RIDER
OBJECTIVE: Examine the segments/lifestyles/attitudes/ values for the category of mountain bikers. Design a communication strategy for brands to contect to these consumers.
Note: The importance of the casual rider is to establish a standard by which all other segments can be measured.
Quick Facts: -- Represent roughly 60% the category. -- Usually prefer terrain with only moderate difficulty, speed, and risk. Trails are within a 10-15 mile radius of their locale. -- The oldest ages 38-54 represent the largest portion of the segment.
METHODOLOGY: Primary Research Focus group Online survey Secondary Research Blogs Web-forums Magazines Industry news
-- Typically willing to spend between $1,000 - $2,000 for their bikes and accessories. They seek comfort and functionality over weight and performance. -- Ride 1-2 times a week, primarily for fun/enjoyment/socializing followed closely by health/fitness.
KEY INSIGHT: “Ride to break the monotony.”
THE EPIC RIDER Quick Facts: -- Seek/plan multi-day trips, riding on trails outside of their local park system. Willing to travel out of state in search of an epic adventure. Represent roughly 15% of the category. -- Typically more experienced riders, with an average age range between 24-35 years old. -- Prefer a varied mix of technical terrain. Long climbs and sweeping down-hills makes this group smile. -- Spend a larger portion of their income on bikes/accessories and travel expenses when compared to casual riders.
KEY INSIGHT: “Ride to see where they can go”. THE ADRENALIN JUNKY Quick Facts: –– Down-hill and free-ride are the preferred mode of riding. Represent roughly 15% of the category. –– Seek high-speed, white-knuckle descents and big-air drops. It’s about pushing limits. –– Usually younger with an age range from 24yrs old and under. –– Searching for the thrill and euphoria created by high risk riding. Health/fitness is only a secondary benifit.
KEY INSIGHT: “Ride to see what they can do”.
THE FIERCE COMPETITOR Quick Facts: –– Represent roughly 10% of the category. –– Train 4-5 times a week. Highly competitive typeA personalties.
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–– Prefer the latest and lightest, high performance gear. Price is not a factor. –– Riding for these individuals represents a way of life. They take an egocentric approach to riding. –– Fun/enjoyment/socializing is secondary.
KEY INSIGHT: “Ride to win.”
COMMON TREADS Rider interviews revealed that, across most segments, mountain bikers share many of the same psychographic characteristics.
They surf too A majority of riders don’t describe themselves as technology buffs, but do surf the web quite often. The web provides a way of organizing group rides and keeping up with the local scene via online forums. The web allows riders the ability to learn about local trails, research gear, and read up on the latest industry news.
Entertainment outside the box Most riders seek alternative forms of entertainment which is focused around outdoor activities. Entertainment such as art/music festivals, outdoor theaters, camping, hiking, and gardening are preferred. “It’s about experiencing life outside walls”.
Curious Cats Mountain bikers are an educated group with most riders having some form of higher education. Most maintain their thirst for learning by immersing themselves in technical hobbies from home brewing ( an extremely popular pastime among many mountain bikers) to engineering some of their own bike parts. Sharing this knowledge with others is equally important to this group.
Brand Loyalty ....Not! Interestingly, Mountain bikers have little if any brand loyalty when it comes to bike brands. It’s common for a rider to switch bike brands 3-4 times over the course of their riding lifetime. Purchase decisions are influenced very little by the standard component based product differentiation. Quite simply, “the brand [bike] just needs to feel right”.
Why They Pedal Most riders were introduced to mountain biking by a friend, or discovered it on their own out of curiosity. They kept coming back for more because of the sport’s unique ability to provide riders a medium which allows them to re-kindle their “inner kid”. In addition, a majority of riders were self-proclaimed introverts. Participating in such a communal sport helps to break down social barriers by linking these individuals to a common thread.
“Mountain biking is all about re-experiencing your inner-kid”
WHAT DOES IT ALL MEAN? Strategic concepts NOTE: These strategies will be implimented using an integrated approach. Concept A repre sents the core from which all other concepts will stem from.
It’s not about the bike So how do you reach consumers who admittedly lack brand loyalty? To start, you need to recognize that “it’s not about the bike”. Riders aren’t hitting the trail because they want to ride their shiny new rig, tricked out with the latest components, in the spirit of vanity. No, they ride because doing so provides them an experience that only mountain biking can give them. It’s about being a kid again. It’s about the adventure, journey, and exploration. It’s about filling their senses with the surroundings of the outdoors. It’s about sharing these experiences with their trail mates. The sum of these emotional experiences is what reconnects riders to their youth and revitalizes their lives. This is what mountain biking is about and this is what marketers should develop brands around.
The big “e” For bike brands to stay relevant in the mind of the consumer, developing a strategy based on experiential marketing is a must. Experience marketing hits the consumer at various touch points with a focus on sensory associations. It’s almost as if experiential marketing and mountain biking were made for each other.
Recomended experiential strategies...
Concept A: Web-Interactive Design an interactive brand website that achieves the following: -- Riders can share their favorite trail rides with others, post pictures/videos of their favorite trails and facilitate group rides. -- Creation of a trail “bucket list”[trail bucket]. Riders can list trails, from all across the world, which they hope to ride in their lifetime. They can even have other riders help them fill their “buckets” by sharing their experiences. -- Upload/downlaod GPS trail maps/notes to educate and inform their community of riders. -- Allow riders to virtually sit on the brand’s different bikes. Users can tune the virtual bike suspension and components to their liking. -- User can pick from a list of virtual trails or create their own trail to ride and share with others. They could even ride virtual trails from their trail bucket. -- Trails can be separated by skill level and different types of trail riding. Thus, riders can cross segments and try different forms of riding they might not be willing to try in a real world environment. -- Virtual rides can be graphic renderings of well known trails from across the world, or actual images from the trail itself. -- User wil have the ability to pan 360 degrees and view the entire environment from a trail in the Swiss Alps, for example.
“emotional experiences [are] what reconnects riders to their youth and revitalizes their lives. This is what mountain biking is about and this is what marketers should develop brands around.”
Concept B: Virals/Web-umentaries Instead of marketer controlled video releases that simply focus on riders just hitting the trails, create web-umentaries that tell the complete story of the riders’ journey. The videos will capture the loading of the bikes, the drive to the trail/mountain, stops and conversation along the trail, and throughout the ride. Ultimately, the viewer is taken on a journey focusing on the whole experience of the ride, with minimal emphasis on the brands actual product or features. Virals will focus more on the product, they should use the product in an unusual way. Instead of using an XC bike on the usual single track trail, the rider could be using it on a more extreme downhill terrain. Using the product outside its intended purpose helps to add intrigue and encourage the consumer to consider the different experiences the brand can offer.
Concept C: Events/Promotion Sponsor give-a-ways. Don’t give away your product. Give away experiences. Loan your product. Provide the consumer with chances to win the ultimate trail ride. This choice of trail will tie into the interactive website from concept A, allowing the rider to win a trip to one of the trails from their bucket list. The rider will have the opportunity to demo the brand’s products during their excursion.
CREATIVE Promotional Poster CHEVY VOLT
OBJECTIVE: Develop an abstract promotional poster centered around a unique selling proposition for the Chevy Volt electric vehicle. The poster represents a P-O-P display to be used at Chevy dealers across the country to promote the 2010 release of the Volt.
EXECUTION: The Chevy volt is an eco-friendly, zero emission electric vehicle made by GM. A unique feature of the Chevy Volt is the ability to charge its battery by using a standard 120v wall socket. The illustration is centered around this unique feature. Extruding from a central wall socket is a thriving universe with miniature worlds, waterfalls, and plant life. The flourishing environment surrounding the brand logo and Volt’s chassis represent the environmental benefits of using Chevy’s zero emission vehicle.
TAGLINE: “Plug into your universe.”
Credentials........................................... Work Experience Off-Site Facility Operations Manager Bizport, Inc, Richmond, VA 2005 - Present • • • • •
Managed Bizport’s $500,000 per year off-site print facility account. Exceeded sales revenue/production goals by 5-10% per year, from 2005-2008. Cut production times in half by re-designing off-site production procedures. Accelerated training for new hires by creating step-by-step training guides. Functioned as an integral cog in driving the client’s business machine which relied on my competency to consistently deliver a mission critical product and service.
Mobile Electronics Department Manager Best Buy, Inc, Richmond, VA 2002 - 2005 • Promoted within one year, to head both the sales and installation team, for my strong work ethic, multi-tasking capabilities, and full understanding of Best Buy’s marketing process. • Awarded numerous certificates of recognition including: Top 100 of 600 stores in overall department power ranking, gross margin percentage, and revenue percent to budget. • Developed an award-winning team of employees by spreading storewide recognition of their accomplishments which created a buzz and motivation within my team to meet our department goals. • Consistently met or exceeded corporate marketing goals by analyzing daily reports such as mixed margin percentage, gross margin percentage, and revenue percent to budget.
............................................................ Education Bachelor of Science, Mass Communications – Strategic Advertising (Graduation date 12/10) Virginia Commonwealth University, Richmond, VA • 4.0 GPA • Member of Phi Kappa Phi and Golden Key honor societies
References Betsy Guzik Senior Strategic Planner, Martin Agency, Richmond, VA • Phone: (804) 698-8000 • Email: betsy.guzik@martinagency.com
Craig Bram President/CEO, Bizport Inc., Richmond, VA • Phone: (804) 783-6059 • Email: cbram@bizport.biz
Dena Frith Moore Managing Director, HarrisWilliams Co. Richmond, VA • Phone: (804) 648-0072 (x1112) • Email: dmoore@harriswilliams.com
Additional refrences can be provided upon request...
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