This document discusses research conducted on whether Ballast Point Brewing Company should expand their brand by opening a new location. Researchers conducted surveys that found consumers are more willing to visit a coastal location and a location that offers food and other beverages in addition to beer. The researchers recommend Ballast Point open a new coastal location that serves beer, wine, spirits and food to further expand their brand.
2. MICROBREWERIES AND THE INDUSTRY
Ballast Point Brewing Company: the
perfect balance of taste and aroma, an
obsession with ingredients, and an
exploration of techniques.
• “Dedicated to the Craft”
• The San Diego craft beer industry has
exploded in the last 5 years
• Opportunity for expansion
• Thriving nightlife and a large population
3. OPPORTUNITY
• Ballast Point has the opportunity to expand their
brand by opening a new location.
• An area that would be a great opportunity to
move into would be the food segment. It could
be done in a manner that incorporates the beer
in the preparation or pairing certain beers with
specific dishes as complements to each other.
• Based on the brand story a new location near
the coast seems like a great way to reach more
consumers and provide a new atmosphere for
consumers.
4. DECISION & RESEARCH PROBLEM
Decision Problem:
Would it be beneficial to open another Ballast Point location to
further expand the Ballast Point brand?
Research Problems:
1. Beer consumption behavior of consumers that drink craft beer
2. Profitability of Stone Brewery/Restaurants
3. Demographics located in potential new location
5. RESEARCH DESIGN
• Exploratory Research
• Primary Data: In-depth interview
• beer drinkers, non-beer
drinkers, employees of
Ballast Point, and residents
along the coast
• Secondary Data: Literature
search
• Ballast Point Website, Yelp
7. DATA COLLECTION
• Primary Descriptive Research:
Survey
• Collection: Facebook and E-mail
• Types of Questions: multiple
choice, rank order, and matrix
tables with scale
• Scales: graphic, likert, and
itemized rating scale
8. SAMPLING PLAN
•Target Population: Men & Women 21+ from
San Diego
•Sampling Frame: Facebook contacts, family e-
mail list, co-worker e-mail list, classmates,
roommates
•Sampling Procedure: non-probablistic sampling
•Sample Size: 50 (average age 20-25)
9. DATA ANALYSIS
• Null Hypothesis: People do not find a San
Diego based restaurant more influential
than the price of the menu options.
• Paired Sample T-Test
• Result: Reject the null hypothesis
• Therefore, we can conclude with 95%
confidence that people do not find menu
price options more influential than the
fact that it is San Diego based.
10. DATA ANALYSIS
• Null Hypothesis: The mean perception that
eating at a coastal location adds to the experience
of eating/dining out is higher than 3.0 (the neutral
point on a 1-5 scale of strongly disagree to
strongly disagree). {Sig. = .000}
• One sample t-Test
• Result: Reject the null hypothesis
• Therefore, we can be 95% confident that the
mean perception that eating at a coastal
location adds to the experience of
eating/dining out is higher than 3.0.
11. DATA ANALYSIS
• Null Hypothesis: The mean likelihood
of visiting a Ballast Point location that
offers food is not greater than 3.0.
• One-sample t-test
• Result: Reject the null
• We are 95% confident that the mean
likelihood of visiting a Ballast Point
location with food is greater than 3.0.
12. DATA ANALYSIS
• Null Hypothesis: The mean likelihood of
going to Ballast Point if other beverages
aside from beer are offered is not greater
than 3.
• One-sample t-test
• Results: We reject the null hypothesis
• We can conclude with a 95% confidence
level that the mean likelihood of going to
Ballast Point if other beverages aside from
beer are offered is greater than 3.
13. LIMITATIONS
• Larger sampling population
• Exploratory Research- Focus groups
• Access to sales data (increase)
• Additional questions to extend survey
• Location biased on survey
14. CONCLUSION
• Consumers are more willing to go
to a better location to eat even if it
is farther away.
• They are also more likely to go to a
place that has food and alternative
beverages rather than just beer. .
• It is more important for customers
to have the value of going to a San
Diego based restaurant than the
price.
15. RECOMMENDATIONS
• Open another Ballast Point location
that serves beer, wine, spirits, and
offers a food menu
• Emphasize “San Diego-based” aspect
of brand
o Social media campaigns
o Promoting beer in San Diego restaurants/bars to
expand brand
• Look into opening another location
closer to the coast
Editor's Notes
Dedicated to the Craft - While Ballast Point is focused on savoring the result, they are just as fascinated by their process to get there.
Opportunity for expansion and to meet the growing demands and needs for consumers in this business.
With thriving nightlife and a large population that is becoming ever more aware and accustomed to the versatile and unique tastes that craft beer provides, this industry will no doubt continue to leave a mark upon the people of San Diego and other cities as they continue to expand.
Ballast Point has great potential with the opportunity to open another location closer to the coast.
Ballast Point’s current locations are all very successful, but aside from their beer, Ballast has a passion for fishing.
Therefore, by opening another location that offers beer as well as dishes such as fish or food that compliments the tastes of the beer, the company might benefit and see that it is a good segment for the company to move into to.
Also, having a location closer to the coast, Ballast will continue to cater to its targeted audience, while also attract new consumers that have little knowledge of the brand.
It is a hope that by expanding to the coast, Ballast Point will attract a new demographic that connects with their secondary passion of fishing while also making it more convenient for local coastal consumers to sip on the beer they have come to know and love.
. I decided to implement this test again because it is the best way to compare the mean likelihood that someone will go to Ballast Point if other beverages aside from beer are offered to the specified value of 3 which is the neutral point on the scale. From this output I can see that the mean of the variable is 3.75, which is greater than the specified value of 3.
Since the test is measuring if the mean is greater than the specified value we want to use a one-tailed test. The one-tailed significance level (.009/2) is lower than the specified significance level of .05.