1. Purple Rain Marketing Solutions
Marketing Proposal for
Leinenkugel's Summer
Shandy Beer

2. Marketing Problem
Want to increase market share
How can we increase our
presence in the 21-25 year old
market?

3. Demographics

5. Behavioral Findings
Why Do You Purchase Beer?

7. When doing research on beer, what
sources of information do you generally
use?

8. Marketing Tools Utilized
• Perceptual Mapping
• Conjoint Analysis

9. • Visual representation of your target
market’s perceptions of brands in the
beer industry
• Identifies how your customers perceive
Budweiser
• Identifies your competition
• Identifies attributes necessary to move to
desired position
Perceptual Mapping

10. • Budweiser
• Corona
• Heineken
• Blue Moon
• Miller Lite
• Pabst Blue Ribbon
• Fat Tire
• 312
• Leinenkugel’s Summer Shandy
• Green Line Pale Ale
Beer Brands

11. Attributes
Available
Sporty
Low Calorie
Low Class
Expensive
Bland
Premium
Domestic
Popular
Strong Flavor
Sophisticated
High Alcohol Content
Sweet
Unique
Craft
Regional
Bitter
Preference

12. • TVE= 80.95%
• Means we captured 80.95% of data with
just these 18 attributes
Total Variance Explained

13. Beers for the Game
Lake
Party
Beer
Garden
For the Beer Enthusiasts

14. Beers for the Game
American
Traditions
Intermediate
Classics
Misunderstood
Crafts
Behind the 8 Ball
For the Beer Enthusiasts
Lake
Party
Beer
Garden

15. For the Beer Enthusiasts
Beer
Garden
Lake
Party
Beers for the Game
Preference

16. For the Beer Enthusiasts
Beer
Garden
Lake
Party
Beers for the Game
Preference

17. For the Beer Enthusiasts
Beer
Garden
Lake
Party
Beers for the Game
Preference
Intermediate
Classics

18. For the Beer Enthusiasts
Beer
Garden
Lake
Party
Beers for the Game
Preference
Sophisticated
Popular
Premium
Strong
Flavor
Import

19. • Can not reposition directly along
preference line!
• Reposition to good space in
“Intermediate Classics” cluster
Repositioning

20. • Must-Do Attributes:
o Strong Flavor
o Sophisticated
o Import
o Premium
• Auxiliary Attribute:
o Popular
Repositioning

21. Conjoint Analysis
Allowing us to understand features,
utilities, and the consumers opinions on
them.

22. What Does Conjoint Analysis
Allows For?
• Allows for us to understand the consumer's
judgements on different factors and utilities
of a product.
• Put this into a numerical value of
importance.
• From these values we can:
1. Find out the overall effectiveness of every possible product
we can make (including best and worst product.
2. Understand the importance of each factor.
3. Judge and simulate market activity and market share.
4. Determine Market entry barriers.

23. Statistical Quality
• Adjusted R Squared: 0.48395
o Our data has captured and explains
approximately 48% of customer preferences.
o This means we know roughly 48% more
knowledge about our customers.
• Significance F: 1.58E-38
o This presents that the conclusions of our
data, were not due to pure luck or statistical
chances.

24. Features and Levels

25. • How were the features and levels
decided upon:
o Focus groups with customers.
o Market experts.
o Looking at competitors products.
Features and Levels

26. Utility Levels of Beer Features

27. Price Linearity

28. • Simply put, our customer's opinion on
the cost of beer is completely rational.
Price Linearity

29. • Our intercept represents the total
product utility level which a product
needs to be at, or above, in order to
enter the market.
• Intercept: 1.00
Intercept

30. • Larger the intercept is relative to the
utilities, the more mature the market.
• "Harder entry barrier."
Intercept

31. 1. Price: $7
2. Taste: Sweet
3. Alc. Cont. 14%
4. Style: Premium
5. Calories: 100
6. Ads: Fun or
Sophisticated
7. Type: Craft
TPU Best Product
TPU: 1.33

32. TPU Best Product

33. 1. Price: $13
2. Taste: Bitter
3. Alc. Cont. 8%
4. Style: Premium
5. Calories: 200
6. Ads: Sporty
7. Type: Domestic
TPU Worst Product
TPU: .72

34. TPU Worst Product

35. Overall Feature Importance

36. Current Market Share

37. Market Simulation: Our Change
Market Share

38. Market Simulation: Reaction
Market Share

39. o Reduce Price
o Enhance Image to Appear Sophisticated
o Stronger Flavor
o Premium
o Imported
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