CRAFTING FOR THEFUTUREBy: Sarah Duffy, Cassie Clark, Anthony Weldon, Brian Geil, andPatrick Michel
Overview: The Brewing Industry • While the industry as a whole is losing share to wine and spirits, beer dominates with 49.2% of alcohol sales to 33.6% spirits • Made up of both mass-produced and craft beers, with Crafts accounting for less than 8% of the U.S. market share. Yet Craft beer volume growth far exceeds that of large brewers. • Craft consumers tend to be less brand loyal than those of big-name brewers • 2126 total U.S. Brewershttp://anheuser-busch.com/index.php/our-heritage/history/marketing-and-advertising/
Ethnic Marketing Key to BrewerSuccess• Hispanics and African Americans are expected to drive 70% of beer growth from 2000 to 2020• Courtship of minorities comes as the U.S. beer industry appears to be headed for a third-straight year of declining sales, o high unemployment damped the spending power of core customers-men ages 21 to 34• Brewers are using new approaches such as using the multicultural marketing ads as the general marketing campaign. o produced higher perception scores among millennial African Americans and Hispanics for Bud Light, Coors Light, and Miller Lighthttp://adage.com/article/news/multicultural-mainstream-brewers-search-growth/234864/
Anheuser-Busch InBev• AB-InBev ranked #2 in "Worlds Most Admired Companies" in 2011 in the Beverage Industry behind Coca-Cola• Some of AB-InBevs popular brews: o Bud, Bud Light, Bud Select o Shock Top o Michelob Brewing Co. o Becks o Landshark o ODouls o Goose Island o Busch o Natural http://www.commercialalert.org/issues/culture/ alcohol/big-brewers-look-to-tap-hispanic-market
Anheuser-Busch InBev Acquisition Bought Grupo Modelo Stake in deal worth $20.1 billion Corona is the leading imported beer in 38 countries, with Mexico and the U.S. representing 85% of shipments Dealaugments AB-InBev’s position in the fast-growing Mexican market and expands the reach of the Modelo brands globallyhttp://online.wsj.com/article/SB10001424052702303649504577495921266834262.html
Samuel Adams• 1984• Market share = .09%• Cited as one of the best companies to work for by Boston Magazine and one of the Best Entry-Level Jobs by The Princeton Review• A company of only 750 workers based in Boston, MA, Sam Adams is defined as being o Small-producing beer less than 6 million barrels o Independent-less than 25% of the Craft Brewery by an industry member who is not a Craft Brewer o Traditional http://adage.com/article/news/sam-adams-show- small/143086/
Samuel Adams• Rather than boast its market share, Sam Adams relies on the quality of its beer to attract drinkers o focused on making the best beer possible instead of increasing the number of drinkers.• Slogan: "Take Pride in Your Beer"• Advertisements appeal to older, experienced beer consumers
Bud Light Success• AB-InBev spent about $60 million in multicultural ads in 2010, up from $46 million in 2009• AB-InBev cites Bud Light and Budweiser as the top-selling brews among Hispanics Use of Carlos Mencia as main character Stereotypes Learning English Comedy
Sam Adams’s idea of MulticulturalMarketing Uh…?
Differences? Why AB-Inbev’s commercial works Comedy General Market Campaign with Touchtones Marketersunderstand that hispanics are not only glued to Spanish-Speaking television or soccer AB can bring brand recognition without a targeted ad
Copy-able form? Not for Sam Adams Their M/O is local, family, love, time commitment in every beer. cannotget the same recognition and results that AB-Inbev can through comedy and use of stereotypes Not profit driven but rather passion driven Microbrewery 2 million barrels/year “If we are not a craft brewery, what else are we? Because we are obviously not Budweiser”
The Sam Adams Approach “Brewers are making fewer overt appeals to African American and Hispanics in targeted media. Instead, marketers are finding subtle was to talk to all demographics at once in general-market campaigns meant to appeal to a drinking audience that is growing more diverse” – Paul Chibe, AB- InBev VP Marketing AB-InBev VP of Marketing Paul Chibe: “Ethnic marketing is now the mainstream” http://adage.com/article/news/multicultural-mainstream- brewers-search-growth/234864/
New Campaign for Samuel Adams General Market campaign as opposed to a specifically targeted one They can’t go and target a certain ethnic market without a quality, diverse general campaign. The American beer market is a diverse group. The purpose is not to target a specific ethnicity but rather the group as a whole
New Campaign for Sam Adams Target Market: Diverse drinking age males 21-34 African Americans : Luxury of a Craft, respect in success Hispanics & Asian Americans: Work Ethic Common Thread: There’s nothing like a cold beer after a long workday “You take pride in your work, why not take pride in your beer?...Sam Adams, an American Lager.http://www.npr.org/2011/10/11/141152273/the-subtleties-of-marketing-beer-to-latinos
Sam Adams Campaign Story of 4 gentlemen working in different job sectors Corporate, Pilot, Doctor, small business owner The work day culminates with all 4 congregating in the same local pub All 4 ask for Sam Adams at one time There is nothing like a Sam Adams after a long workday
Discussion Before this class, who would have thought twice about the Bud Light commercial? Has anyone ever felt offended by any AB-InBev commercial due to their use of stereotypes and humor? If Sam Adams was to introduce a diverse general market campaign that was successful, what would their next step be in terms of multicultural marketing?
Discussion While craft beers usually do not carry a strong brand loyal customer base, could targeting a brand loyal ethnic segment help increase Sam Adams market share? Why (not)? Anheuser-Busch InBev typically involves themselves in community events such as sponsoring concerts (Pitbull). Is it as important for Sam Adams to get involved in the community in order to appeal to different ethnic markets?