Pabst Brewing Company produces iconic American beer brands such as Pabst Blue Ribbon, Schlitz, and Old Milwaukee. While sales declined in the late 20th century, Pabst saw renewed interest in the early 2000s from a new generation of fans. Through minimal marketing focused on word-of-mouth and event sponsorship, Pabst has been able to maintain relevance and grow sales without large advertising budgets. The company's ability to understand and engage its loyal consumer base through authentic marketing has allowed Pabst to succeed where other brands have struggled.

1. Rebekah Bryan
Dr. Michael T. Manion
Marketing Management (MKT 455)
July 10th
, 2016
Pabst Brewing Company: Final Thesis
Pabst Brewing Company produces some of the most timeless products in the beer market. Each
brand that they brew has their own unique story, each defined by a rich history. Over the years, Pabst
has skillfully acquired about two dozen age-old brands such as Colt 45, Schlitz, Old Milwaukee, and Old
Style. These brands, alongside their original Pabst Blue Ribbon, have become iconic in American culture.
The company prides itself on providing the most memorable experiences possible with their mission
stating, "Trust your good times to Pabst". My own memories drinking a Pabst Blue Ribbon remind me of
my more carefree years; not to mention, I would witness my grandfather drink Old Style when I was in
my earlier childhood, and he has passed away since then. I, and many others, have cherished many
memories in association with these products and people will continue to do so for years to come. In lieu
of this throwback, I will further explain how a historical company like Pabst aims to maintain relevance
in the ever-growing beer market through their product positioning and the preservation of their brand
loyalty.
However, relevance has not always been easy to maintain when trying to meet sales goals.
When understanding this, it is important to solidify why this company still has a place in the beer market.
The company's website details their history and what they did to become one of the most massive
brewers here in America. In 1844, Jacob Best, a German immigrant, had founded Best Brewing Company
in Milwaukee, WI. His son, Phillip Best, would later acquire Best Brewing Company from his father. Once
Phillip retired, his two sons-in-laws (Fredrick Pabst and Emil Schandein) purchased the brewery. Pabst,
having no experience in brewing whatsoever, began to understand and master the brewing process. His
newfound expertise allowed him to expand the market for beer, and before long, the brewing capacity
was increased to 100,000 barrels. They ended up becoming a publicly traded company and it was
renamed to Pabst Brewing Company in 1890. The continuous production expansion lent itself to the fact
that it had won a gold medal at the Chicago World's Fair. A blue ribbon was tied around the beer bottles
as a branding tool to signify its renown. Over time, the consumers had begun to call the original recipe
the "blue ribbon beer", which caused the company to rename the beer to Pabst Blue Ribbon.
Pabst Brewing Company thrived throughout the 20th
century, and they were considered leaders
in their industry. This was up until 1978, when sales decreased dramatically. This resulted in them
dropping from the 3rd
best selling beer to the 5th
. Consumer perceptions of fitness drove people away
from beer in general, but Miller was able to maintain the stronghold with a "Lite" beer that was lower in
calories. This, combined with some bad business decisions, Pabst eventually axed their advertising
budget in the 90s and closed the flagship brewery in 1996. The production was then contracted out to
Miller Brewing Company in Lacrosse, WI. It wasn't until the 2000s when they saw a jump in sales, and

2. since then, this newfound interest has cultivated some of the most loyal followers and some of the best
sales that this company has ever seen. Combined with the acquisition of some old and discontinued
brands, they have achieved success in maintaining these brands' tradition. Further, I will illustrate what
caused a new interest in the brand and what the company needs to consider going into the future.
The Consumer Decision Making Process (Exhibit 1) demonstrates what would motivate an
individual to buy this product. In the first stage, the consumer identifies a need. In regards to the
average Pabst consumer, it would be someone who is looking to take part in some sort of social/cultural
activity. Alternative search would follow this, for it is the consumer's way of exploring their options
when they're trying to buy an alcoholic beverage. Then, the alternative evaluation stage would bring
them to deciding what kind of drink to buy and what about the brand appeals to them. Beer is naturally
more plentiful and goes down smoother than wine or liquor, however, searching for a brand is a bit
more involved. It is said by The New York Times that the beer market as a whole spends over one billion
dollars a year in advertising (Walker). Other companies try so hard to stick out from the others, but in
the minds of many consumers, Pabst sticks out without the company having to spend a dime in
advertising. Though the purchase stage may be risky because the brand had fallen out of popularity for a
good twenty years, it will have been the "road less traveled by" which will ultimately make the
consumer feel unique amongst the rest of society. In the final stage, they will reap the benefits of this
beer, which is the price, the taste, and the social appeal.
The VALS Framework (Exhibit 2) explains who this person is in relation to the rest of society, and
how Pabst could identify this consumer. The model groups people together based on certain
psychological traits and demographics. When the Pabst brand saw a revival in the early 2000s, this new
fan base would consist of younger people who detest the mainstream, called "hipsters". Its lack of
marketing appealed to these people, and they viewed Pabst Blue Ribbon as an "alternative" to the
overdone, over-hyped beers of the time (Budweiser and Miller in particular). In this case, the
Experiencer segment of the framework would fit this consumer. The text defines an experiencer as
someone who is impulsive, who avoids the mainstream to follow more risky, new, and offbeat
experiences. They are motivated by self expression, which is why Pabst will have made this person feel
unique at their time of purchase. An identifier such as the VALS Framework would help Pabst
understand why there was a brand revival and what can they do to make it last.
The Market Segmentation Process (Exhibit 3) is a tool for situation analysis for Pabst. It allows
them to assess why there was a newfound interest in the product and what needed to be done to
further develop it. In the first stage, they would need to collectively assess what is happening. Pabst had
seen consistently low sales for about 20 years. The year 2002 saw a 5.2% jump in sales alone, and from
January to April of 2003 it saw a jump of over 9% (Walker). Why was this happening? Stage two would
determine why the consumer saw a need in this product. The VALS Model above explains what their
new group of buyers were looking for, which was something thrill seeking, as well as non-status quo.
Then, Pabst had to decide communication and promotion based on the information from phase two.
This is what would make or break them: If they went to TV and print advertisement, they would have
never seen this sales jump again, but if they grew into this culture and became a part of it, they would
find longevity in this hype. The company then took a unique spin on marketing (this text explains it

3. further below). Moving forward, the fourth stage would be their product positioning: what this product
is amongst the competition. It is a low priced but traditional and very cherished beer that brings
together communities. Finally, their strategy in relation to the marketing mix would be to keep
promotion at a minimal, grass-roots fashion but making the product accessible to people in all areas of
the United States.
The Positioning Map (Exhibit 4) shows how Pabst Blue Ribbon relates to the rest of the market.
The beer market is growing rapidly, with microbreweries on the rise which means a lot of hefty
competition. The amount of product offerings is staggering, which makes the perceived quality levels
amongst users very vast. In this map, I have set Pabst Blue Ribbon on the lower left pane amongst beers
like a typical beer of the brands 3 Floyds, Goose Island, Coors and more. They are all set on the map
based on their flavor and their pricing. An undeniable fact is that the company's products aren't
regarded for their quality. On Beeradvocate.com, the company was rated a 2.74/5 as a whole, simply
due to the fact that they have a wide range of products of different flavors and qualities. Pabst Blue
Ribbon is rated lowest on my map in comparison with some other powerhouse brands (Coors rated only
slightly higher than PBR on the beeradvocate website). This fact truly speaks to the unique nature of this
product and why they've maintained such a prominent and consistent presence in the beer market and
in the rest of culture for over 150 years.
The Elements of Brand Equity model (Exhibit 5) is what measures the brand's worth in relation
to what they have to offer. In this example, I have outlined the Pabst cultural asset and what it has to
offer the current market. One element is the perceived quality. As mentioned in the positioning map,
people don't always associate quality with Pabst Blue Ribbon. However, it does have a 4.7% ABV, which
is high amongst its competitors, and never fails to be a refreshing, go-to beer. One of the most
important elements to mention in this brand equity model is brand loyalty. Pabst works hard to bring
their fans what they desire most. They are advocates for the fan base that adore them, letting their
subculture guide their marketing decisions. Their fan base sees this not only as underground, but as
"retro". This a continuously accessible and affordable product for them, which makes each customer's
purchasing decisions more consistent. Elements such as proprietary assets add to the nostalgia of the
brand with the Best Place brewery tour, the Pabst mansion, the Jackson Blue Ribbon Pub, and the
Brewhouse Suites in Milwaukee (in association with the brand, not directly owned by the company).
Name awareness comes from their unique word-of-mouth marketing and subcultural event sponsorship
(will detail further). Brand associations would follow this, whether it be the "retro" beer, the "hipster"
beer, or the one that everyone had way too much of in college, it brings people back to an exciting time
in their lives. The company was able to have a good place in the market without increasing spending,
and consumers would continue to go back to this brand because it was cheap and accessible all while
filling their own personal standards.
The Integrated Marketing Communications (IMC) Audience Contact Tools (Exhibit 6) is a model
that best showcases the unique marketing tools Pabst has utilized since its revival. Pabst had to quickly
figure out how to exploit the 2002 sales boost without alienating other potential audiences. They
became very witty in their marketing techniques, avoiding TV ads and big-name sponsorships all
together, but relying mainly on word-of-mouth advertising and community event sponsorship. The

4. company understood the culture of the hipsters and integrated the product into it. In its start, word-of-
mouth marketing was the most heavily used tool from this graph. The marketing team didn't have much
of a budget to use, so sticking to a low-level, grassroots approach was not only ideal but convenient for
the subculture they targeted. This would entail brand ambassadors going to dive bars in areas, such as
Portland and Seattle, to talk to people about the product and even give them some free merchandise.
These were every day people having a seemingly average conversation about beer, but this opened such
a huge door for Pabst. It was networking in its truest form, for it allowed them to connect with people
and begin sponsoring local events that mattered to their fans. With the word of mouth marketing used,
the rest of the tools followed. Other tools used are print and internet media. Any event they sponsors'
print ads would feature a small PBR logo at the bottom. Their presence on Instagram is heavy, as well as
Facebook to help engage their audience further. They hold an art contest on their website, the person
who can draw the best art for the beer can could win up to $30,000. This would allow for the point-of-
purchase tool to be used as well, for it would show the expressive and unique nature of PBR.
The Brand Report Card (Exhibit 7) shows just a few characteristics that highlight the company's
strengths. The quality perceived over time has proven to be worthy for its price; they have remained
consistent with their pricing and marketing strategies. They evolve their promotions and product
offerings around what their fan base wants. They know that loyalty is hard to earn, and they dedicate
themselves to maintaining it. Their marketing activities are coordinated well; they stay away from over-
advertising as to stay in line with their followers' standards. The artist Kid Rock was turned down for an
endorsement by Pabst for this very reason; they simply did not want the mainstream attention around
their brand. However, this isn't a beer that is solely the "alternative". In line with their brand portfolio,
this is a company that uses these timeless brands' traditions as their selling point, seeing over-
advertising as pointless in relation to the name recognition that already comes with the heritage. In
regards to brand association and name awareness, Pabst Brewing Company has done an excellent job in
maintaining them without spending too much money in marketing. The loyal following is only a result of
their efforts in strengthening these dimensions of branding.
The Product Life Cycle (Exhibit 8) shows how a product functions from introduction to decline,
and how it impacts the product's marketing mix. Each stage has its characteristics, or "dimensions" that
classify it as such. For this life cycle, I will be assessing its entrance back into the beer market after
twenty years of failure. During its introduction stage, it was when they began their grassroots marketing
campaign, identifying consumer needs with word of mouth marketing. Pricing was low in hopes of
increasing demand. The growth stage was witnessed in 2009 when the recession happened. Wages and
jobs were being cut, and people still needed an escape from day-to-day survival so they gravitated
towards the cheaper beers. Pabst still stayed true to their fan base throughout this, but raised prices
with the increasing demand. Today is where we see the company's maturation stage. It was in 2013
where they saw their largest sales yet: 300 million milliliters of beer sold. We are at a place where the
company is still sparking interest amongst its users, keeping them engaged in their art contest, fishing
tournament, and music festival. The decline stage may not mean much to them. Pabst doesn't spend
that much money on advertising for PBR. They have proven that this product will stand the test of time,

5. regardless if people are more or less willing to buy it. In this stage, however, they may need to think
what they can do to bring something new to the market that will keep their name alive.
The New Product Development Process (Exhibit 9) demonstrates the steps Pabst needs to take
for the future of their product offerings. With the opening of the Best Place brewery tour, they have
expressed an interest in developing craft beers for the current market. When creating a new product, it
is important to be considerate of all aspects of its development. The first stage is the opportunity
identification and selection. It is obvious that there's a market for craft, locally-brewed beer. All the
latest beer trends point to it. The second stage would be concept generation. An interesting product to
adopt for Pabst would be a porter style beer. It could be served seasonally during Christmas, and could
have a warm flavor like coffee added to it which would complement Milwaukee's cold winter well. This
aspect of possible interest of the potential beer is something to research in phase three, as well as if the
product can be made with a limited amount of resources in a reasonable amount of time. Phase four
would allow for taste-testing by an average porter drinker to try it and compare it with some of their
favorites. It would then launch in the brewery tour and the surrounding pubs.
Moving forward, I feel as though a craft beer may be some expensive beer to make, and people
don't necessarily go to Pabst products for something more expensive. If they can retain low prices
during this process, this would be ideal, as well as stay true to their traditional marketing techniques. It's
a matter of catching up with the rest of the market at that point. Also, a company that is growing
substantially should not have to contract out with MillerCoors any further. The company had to do what
needed to be done to maintain a decent profit margin during their decline. Now, the company is faced
with losing potential market share to a company with a share about ten times higher than Pabst's. This is
simply because MillerCoors claims they don't have the capacity to keep up with Pabst's demand. If the
company can take back what is rightfully theirs, without having to spend time and money opening a new
brewery, their numbers will continue to grow and their company will prosper like it once had.
No matter what they do to stay up-to-date with the market, they'll never lose their place. My
research has brought me to understand one truth about this company: although American culture, along
with societal attitudes and individual tastes, is constantly changing, the maintenance of the heritage
behind these beers is what the company strives to uphold. It is these products that have helped give our
culture an identity over time and will continue to do so in the future. Once upon a time, Frederick Pabst
changed the name to Pabst Blue Ribbon because he let the brand's identity be decided by the consumer.
That holds true to today as well: they have been noted for saying that they "let the consumer lead the
brand" (Walker). This beer doesn't belong to one small group of people, but by many who've associated
with it for a variety of reasons. By continuing to create and consume these products, we give a homage
to the memories that we've made, the memories the generations before us have made, and to the men
and women who've worked hard in making it happen over the past 172 years.

6. Exhibit 1: The Consumer Decision Making Process
Exhibit 2: The VALS Framework

7. Exhibit 3: The Market Segmentation Process
Exhibit 4: The Positioning Map

8. Exhibit 5: Elements of Brand Equity
Exhibit 6: IMC Audience Contact Tools

9. Exhibit 7: Brand Report Card
Exhibit 8: Product Life Cycle

10. Exhibit 9: New Product Development Process
Walker, Rob. "The Marketing of No Marketing." The New York Times. The New York Times, 22 June 2003. Web. 10 July 2016.