Analyzed the standing of the top beer brands in US. Suggested marketing initiatives for brand ranked at 3 using predictive models such as Multinomial Regression Created clusters using RFM to understand the preference of customers towards the beer brands and what makes a person chose a particular brand

1. The Beer Project!

2. Outline
 Objective
 Data Preparation
 Exploring the Data
 Market shares
 Geographical distribution
 Data Analysis
 RFM clustering to identify best customers
 Multinomial logit to identify the preferences of customers across different brands
 Observations
 Recommendations

3. Objective
 To help the brand manager of Coors beer make the right business decisions to
help accelerate the growth of the brand by increasing its market share.
 Analyzing current market scenario and apply statistical models to identify
significant attributes contributing towards increase in sales.
 Identify general customers who are high consumers of beer and then customers
who prefer Coors over other brands.
 To analyze the potential factors which influence sales of a beer brand and provide
recommendations on how to acquire more customers.
1400
stores
8.5M
store data records
500+
beer brands
Objective

4. Coors has 3rd highest share in light beers market
Data exploration
Regular Beer market Light Beer marketMarket Share (Based on Sales)
 Regular beer market is very diverse with the top 5 brands contributing to ~ 44% of market
share
 Budweiser is the market leader in both regular and light beer markets. It contributes to
almost 1/3rd of the light beer market
 Coors has the 3rd highest share in light beers market. It contributes to almost 1/5th of
the light beer market.
Since, in Regular beer market Other brands contribute to ~56% market share we decided
to do all our analysis in light beer market only.

5. California has the highest light beer sales followed by Texas
Data exploration
State wise distribution of light beers sales

6. Coors has the highest sales in Oregon state when compared to other brands
Data exploration
State wise distribution of top 5 light beer brand sales

7. Middle age well off customers are the best customers in the light beer market
RFM Clustering
34%
11%
55%
Cluster 1 Cluster 2 Cluster 3
(R = 1.9, F = 1.9, M = 2.3)
Target demographics
Young men with college
education, Young women
with college education,
Less number of children
(R = 4.2, F = 4.4, M = 4.5)
Target demographics
High income levels, House
ownership, Men with full
time jobs , Lower divorce
rate
(R = 4.4, F = 1.9, M = 2.3)
Target demographics
Lower income groups with a
small family size, Older men
and women with less number
of fulltime jobs, Mostly
divorced individuals.
Middle aged well off customers
Elder lower middle class customers
Occasional younger customers

8. Coors brand is preferred by High income consumers, young females, small family
customers
MDC
Higher income consumers
Larger family size consumers, Rented consumers, Elder females, Less educated
consumers
Average Consumers, Higher income consumers
Average Consumers, Larger family size consumers, Rented consumers, Less
educated consumers
Larger family size consumers, Elder females
Rented consumers, Less educated consumers, Elder females
Average Consumers
Average Consumers
Higher income consumers
Preferred demographics Not preferred demographics

9. Miller has the highest cross price elasticity of 0.24% compared to Coors 0.07%
Price Elasticity
Brand
Cross price
elasticity
Budweiser 0.12%
Coors 0.07%
Michelob 0.15%
Miller 0.24%
Natural 0.01%
Coors - Own price
elasticity
-0.57%
Coors own price elasticity = -0.57%; If the price of Coors brand increases by 1%, the
sales of Coors brand decrease by 0.57%.
Coors cross price elasticity = 0.07%; If the price of any brand’s beer increases by 1%,
the sales of Coors brand increases by 0.07% which is less when compared to the
other competitors

10. Observations & Recommendations
Recommendations
Observations
 Light beers in general are popular with customers who have high household
income, own a house and men working full time.
 Coors is usually preferred by consumers with high household income, small
sized families and younger females.
 Coors is least preferred by elder women and females with college education.
Recommendations
 Run a marketing campaign targeted at male executive employees in states like
California, Texas where Budweiser is the market leader.
 Design and execute a social media campaign targeting younger females whose
household income is high.
 Introduce a new Coors product with lower calories and a competitive price.