This document provides background information and proposed research questions for a marketing research project on Ballast Point Brewery. The group aims to understand how perceptions of Ballast Point differ between those aware and unaware of its recent acquisition by Constellation Brands. They hypothesize knowledge of the acquisition may change views of Ballast Point's brand personality and loyalty. A mock survey is included to measure factors influencing consumer preference and loyalty toward Ballast Point before and after informing them of the acquisition.

1.
MARKETING
RESEARCH:
BALLAST POINT
ACQUISITION
3/16/16 Team Habitually Gulpin’ The Sculpin
Group Members:
Alec Snow
Thys Hodgson
Patrick De Nava
Jacob Perron
This research survey is designed to understand the difference
in perception of beer drinking consumers who either know or
don’t know about the acquisition of Ballast Point and If this
acquisition has altered the brand's personality or the
consumer’s brand loyalty.

2. Marketing Research: Ballast Point Acquisition
Marketing Research: Ballast
Point Acquisition
DELIVERABLE 1
Research Motivation and Background Information
San Diego, California is known around the world for being a hot spot for well­known craft
breweries and being apart of the college culture we came up with a common interest of Ballast began to
realize that we had all had a passion for craft beer. San Diego is a beer­lover's paradise with a large
number of well­known breweries like Green Flash, Modern Times, Alpine, & Ballast Point and only
minutes away from our campus. In class, we began to discuss the craft beer market and the brand
perceptions of craft beers by comparing them to common macro­breweries noting the differences in
brand personalities, consumer loyalties, and brand perceptions. We all came to terms that the craft beer
market is huge in San Diego and noted that many large alcohol companies have sought after many craft
breweries. Understanding that to the beer drinking consumer there is a different perception between
macro and craft breweries, are group began to wonder if an acquisition between the two would lead to a
change in the consumer's brand loyalty and brand personality.
Keeping our project in mind, our group deliberated the need for marketing research to help
answer this question and decided that Ballast Point’s recent acquisition by Constellation Brands, a
leading international producer/marketer of beer that is traded on the New York Stock Exchange. Ballast
Point has a large portfolio of 40+ beers (15 year round, 30 limited/seasonal release) that includes IPAs,
pale ales, lagers, and more, 500 employees, produces beer in four San Diego facilities with brew pubs,
and is on track to sell expected net sales at 115 million in 2015 (Wandel 22). This partnership provides
Constellation a chance to compete in a fast­growing beer segment in San Diego, and further strengthen
its position near the top of the U.S. Beer Market. Ballast Point originated as a group of home brewers
whose dedication to their craft was to “brew beer they like to drink”. They have created such a strong
culture/brand perception that they are now being bought for $1 Billion Dollars. As a group, our common
interests and the emerging growth in the beer market inspired us to conduct further marketing research
into Ballast Point Craft Brewery, examining how perceptions of Ballast Point differs between people
who do and do not know about the acquisition by Constellation Brands. Our group wants to analyze if
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3. Marketing Research: Ballast Point Acquisition
there is a change in perception of Ballast Point after the acquisition focusing if there is a specific change
in the consumer’s view of Ballast Point’s brand personality and consumers brand loyalty.
Research Questions
The primary research questions we propose to answer by surveying consumers of Ballast Point
are as follows:
Q1: How are the perceptions of the Ballast Point brand different between those who know about the
acquisition and those who don’t?
Q2: Is Ballast Point's brand perception more closely aligned with that of a domestic brewer rather than
a craft brewer?
Q3: Is Ballast Point brand loyalty affected by the acquisition?
In order to measure the perception difference between consumers who know and don't know
about the acquisition of Ballast Point, we will be using a Budweiser as the corporate beer company
versus a local San Diego craft brewery. We then break down perception difference into 2 categories;
change in brand personality and change in brand loyalty. We will ask participants what their perceptions
are of each side of the spectrum by giving basic characteristics to choose from. Therefore, we will be
able to get a concrete measurement of where Ballast Point lies on the scale between being viewed as a
micro or macro beer company and if they had prior knowledge of Ballast Point’s acquisition. Knowing
if the consumer had prior knowledge of the acquisition provides us with more information so we can
analyze change in perception and see where Ballast Point lies on the spectrum to someone who is aware
of Ballast Point’s acquisition by Constellation Brands. Once we let our survey participants aware we
will want to screen only that if they're over 21 and drink beer.
Research Hypothesis
At this stage in our research, we believe that with people knowing if an acquisition has taken
place, it will affect their perception of Ballast Point’s brand personality. For example, looking back at
the secondary research where people that perceive micro brewery as better because of a tight network of
relations amongst their customers, it is because of this they are able to maintain their identity as a true
craft beer. When we let the respondents aware of the acquisition we will do the due diligence of asking
again to give us responses based now on the one notion that have an attitude toward them being bought
out. Consumers would lose the sense of community with the brand due to the belief the quality of beer
would go down. Another theory for their reasoning would have to be because of the tight knitted
community microbreweries have with their consumers. Forcraft beer consumers to being loyal to a
particular brand gives each different type of brand to use their brand personality to attract different types
of consumers that vary from age to demographic. To share the passion for a specialty product as well
the feelings associated with it gives consumers a special relationship with a brand makes the consumer
feel unique and more on a higher level of social drinking amongst their peers
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4. Marketing Research: Ballast Point Acquisition
Demonstration of Hypothetical Survey Results
This mock table illustrates the contributing loyalty factors for Ballast Point consumers. In this
hypothetical result, the data suggest “No.3” plays a significant role in choosing loyalty. 79 out of the 100
surveyed customers selected “No.3” as a deciding preference factor. With results like this we can try to
predict the change in preference would be due to a change in this “deciding factor”.
Table 1: ​What factors make you prefer Ballast Point?
Deciding
Factors:
Responses per 100
(%)
No. 1* 25%
No. 2* 46%
No. 3* 79%
n=100
* answers are free response
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5. Marketing Research: Ballast Point Acquisition
Survey Questionnaire:
Ballast Point Survey
Intro Greetings participent,We are Team Habitually Gulpin' the Sculpin from San Diego State University. We invite you to
complete this brief survey about your feelings and behaviors towards craft beers in the San Diego area. We would like to
compare and contrast Ballast Point's brand personality and brand loyalty to other craft brewers. Your participation in this
study will only take about 10 to 13 minutes. Your honest feedback along with any additional information will help improve
our research project. All responses will remain anonymous. Again, thank you for your participation! Survey conducted by
Patrick De Nava, Thys Hodgson, Jacob Perron, Alec Snow
SCRN Are you at least 21 years old?
m Yes (1)
m No (2)
If No Is Selected, Then Skip To End of Survey
SCRN Do you drink beer?
m Yes (1)
m No (2)
If No Is Selected, Then Skip To End of Survey
TRAN1 We will now ask you a series of questions based on your drinking habits.
HB0 How many beers do you consume on average per week.
m 1­3 beers (1)
m 4­6 beers (2)
m 7­9 beers (3)
m 10­12 beers (4)
m 13­15 beers (5)
m 16+ beers (6)
HB1 Where do you prefer to consume alcohol?
q Party (1)
q Sporting Event (2)
q Bars (3)
q The beach (4)
q At home (5)
q other (6) ____________________
HB2 How much do you agree with the following statements?
Strongly
disagree (1)
Somewhat
disagree (2)
Neither agree
nor disagree
(3)
Somewhat
agree (4)
Strongly agree
(5)
I like Domestic
beer (1)
m m m m m
I like Craft beer
(2)
m m m m m
I drink beer
because i like
the taste (3)
m m m m m
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6. Marketing Research: Ballast Point Acquisition
I drink to get
buzzed (4)
m m m m m
Answer If How much do you agree with the following statements? I like Domestic beer ­ Strongly agree Is Selected And
How much do you agree with the following statements? I like Domestic beer ­ Somewhat agree Is Selected
HB3 Given the list of Domestic beers, rank your preference
______ Budweiser (1)
______ Coors Light (2)
______ Bud Light (3)
______ Coors (4)
______ PBR (5)
______ Key Stone (6)
______ Roling Rock (7)
______ Kirkland (8)
Answer If How much do you agree with the following statements? I like craft beer ­ Strongly agree Is Selected And How
much do you agree with the following statements? I like craft beer ­ Somewhat agree Is Selected
HB4 Given the list of Craft Brewers in San Diego, rank your preference
______ Stone Brewing (1)
______ Green Flash (2)
______ Modern Times (3)
______ Mike Hess (4)
______ Port Brewing (5)
______ Benchmark Brewing Company (6)
______ AleSmith Brewing Company (7)
______ Karl Strauss (8)
HB5 Rank what you look for in order of importance when tasting a beer?
______ Something I can drink fast (1)
______ High alcohol content (2)
______ Bourbon/Whiskey flavor (3)
______ Strong hoppy flavor and aroma (4)
______ Rich caramel sweetness (5)
______ Coffee flavor and aroma (6)
______ Earthy Character (7)
______ A clean finish (8)
Knwldg1 How much do you agree with the following statement.
Agree (1) Not Sure (2) Disagree (3)
I am confident in my San
Diego craft beer
knowledge (1)
m m m
Knwldg2 Check each brewery you have visited within the last month.
q Stone Brewing (1)
q Green Flash (2)
q Modern Times (3)
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7. Marketing Research: Ballast Point Acquisition
q Mike Hess (4)
q Port Brewing (5)
q Benchmark Brewing Company (6)
q AleSmith Brewing Company (7)
q Karl Strauss (8)
Knwldg3 What causes you to purchase a craft beer?
q Apperance of higher social status (1)
q Appear more knowledgable on beer (2)
q Quality of beer taste (3)
q Being perceived as trendy (4)
q Other (5) ____________________
TRAN2 Good job, you are half way there! We will now ask you a series of questions in order to understand how you
perceive different styles of beers.
Prcption1 Which San Diego craft brewery do you prefer most?
m Stone Brewing (1)
m Green Flash (2)
m Modern Times (3)
m Mike Hess (4)
m Port Brewing (5)
m Benchmark Brewing Company (6)
m AleSmith Brewing Company (7)
m Karl Strauss (8)
Prcption2 Which Character traits would you most closely align with ${q://QID25/ChoiceGroup/SelectedChoices} craft beer?
q Down to earth (1)
q Small town (2)
q Honest (3)
q Sincere (4)
q Wholesome (5)
q Original (6)
q Cheerful (7)
q Trendy (8)
q Daring (9)
q Corporate (10)
q Imaginative (11)
q Intelligent (12)
q Upper class (13)
q Smooth (14)
q Masculin (15)
q Feminine (16)
Prcption3 Which character traits would you most closely align with Anheuser­Busch (Budweiser)?
Prcption4 Which character traits would you most closely align with Ballast Point?
TRAN3 Almost there! You will now be asked a series of question based on Ballast Points current ownership
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8. Marketing Research: Ballast Point Acquisition
OWN1 Are you aware that Ballast Point was recently purchased by Constellation Brands?
m Yes (1)
m No (2)
If No Is Selected, Then Skip To End of Block
OWN2 How much do you agree with the following statement:I support the acquisition of Ballast Point by Constellation
Brands
m Strongly agree (1)
m Agree (2)
m Somewhat agree (3)
m Neither agree nor disagree (4)
m Somewhat disagree (5)
m Disagree (6)
m Strongly disagree (7)
OWN3 In your own words, why did you say you ${q://QID31/ChoiceGroup/SelectedChoices} with the sale of Ballast Point
to Constellation Brands?
BPP1 How many times have you visited Ballast Point in the last 6 months?
m 0 (1)
m 1 (2)
m 2 (3)
m 3 (4)
m 4 (5)
m 5 (6)
m 6 (7)
m 7 (8)
m 8 (9)
m 9 (10)
m 10 (11)
m 11 (12)
m 12 (13)
m 13 (14)
m 14 or more (15)
BPP2 How much do you agree with the following statement:The purchasing of Ballast Point by Constellation Brands will
have an effect on whether or not I buy Ballast Points beer in the next 6 months.
m Strongly Agree (1)
m Agree (2)
m Somewhat agree (3)
m Neither agree nor disagree (4)
m Somewhat disagree (5)
m Disagree (6)
m Strongly disagree (7)
Answer If How much do you agree with the following statement:The purchasing of Ballast Point by Constellation Brands
will have an effect on whether or not I buy Ballast Points beer in the next 6 months. Strongly Agree Is Selected And How
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9. Marketing Research: Ballast Point Acquisition
much do you agree with the following statement:The purchasing of Ballast Point by Constellation Brands will have an effect
on whether or not I buy Ballast Points beer in the next 6 months. Agree Is Selected
BPP3 What effect will the purchasing of Ballast Point have on whether or not you buy their beer?
PP1 How much do the following influence your purchasing behavior towards beer.
______ Price (1)
______ Convenience (2)
PP2 What price would you consider to be a fair price for a Ballast Point 20 ounce craft beer on draft at a bar?
Dem1 What gender do you most closely associate with?
m Male (1)
m Female (2)
Dem2 What is your average income?
m Less than $29,000 (1)
m $30.00 ­ $49,999 (2)
m $50,000 ­ $69,999 (3)
m $70,000 ­ $89,999 (4)
m $90,000 ­ $109,000 (5)
m $110,00 plus (6)
END1 Thank you for completing this survey! Your patience is greatly appreciated.
Part F
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Survey Flow
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Research Question Survey Questions Comments (if needed)
How are the perceptions
of the Ballast Point brand
different between those
who know about the
acquisition and those who
don’t?
Prcption1, Prcption2,
Prcption3, Prcption4,
OWN1, OWN2, OWN3
OWN1 is used to identify
respondents who were not
aware of the sale. OWN3
allows the respondent to
freely express their feelings
associated with Ballast
Point.
Is Ballast Point's brand
perception more closely
aligned with that of a
domestic brewer rather
than a craft brewer?
HB0, HB1, HB2, HB3,
HB4, HB5, KNWLDG1,
KNWLDG2, KNWLDG3
The responses to HB5 rank
what respondents view as
important; these qualities
can then be categorized as
being domestic and/or craft.
Is Ballast Point brand
loyalty affected by the
acquisition?
BPP1, BPP2, BPP3, PP1,
PP2, PP3
BPP2 identifies the strength
of loyalty to Ballast Point.
Questionnaire
Requirement
Survey Questions
A naturally­scaled
question with a
response format that
will capture
ratio­level data.
[PP2]
“​What price would you consider to be a fair price for a
Ballast Point 20 ounce craft beer on draft at a bar?​”
(respondent types in exact dollars).
NOTE:
It would have been wrong if I had done brackets of prices
like, $0­$2, $3­$5, $6­$8, $9 or more because this would
render ordinal, not ratio, data.
A multi­item rating
scale using a
subjective intensity
continuum.
[PP1]
How much do the following influence your purchasing
behavior towards beer. ​[5­point importance scale for both
items]
● Price ​[PP1_1]
● Convenience ​[PP1_2]
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23. Marketing Research: Ballast Point Acquisition
A questionnaire item
that allows
respondents to select
more than one item.
[Knwldg2]
Check each brewery you have visited within the last
month.
● Stone Brewing
● Green Flash
● Modern Times
● Mike Hess
● Port Brewing
● Benchmark Brewing Company
● AleSmith Brewing Company
● Karl Strauss
A measurement scale
(both wording of the
items as well as the
original scale) from a
previously published
marketing research
source.
[Prcption3]
Which character traits would you most closely align with
Anheuser­Busch (Budweiser)?
» ​Down to earth
» ​Small town
» ​Honest
» ​Sincere
» ​Wholesome
» ​Original
» ​Cheerful
» ​Trendy
» ​Daring
» ​Corporate
» ​Imaginative
» ​Intelligent
» ​Upper class
» ​Smooth
» ​Masculin
» ​Feminine
Aaker, Jennifer L.. “Dimensions of Brand Personality”. Journal
of Marketing Research 34.3 (1997): 347–356. Web​.
Citations
Aaker, Jennifer L.. “Dimensions of Brand Personality”. Journal of Marketing Research 34.3 (1997): 347–356. Web​.
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