CRAFTING FOR THE FUTURE By: Sarah Duffy, Cassie Clark, Anthony Weldon, Brian Geil, and Patrick 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. Brewers

http://anheuser-busch.com/index.php/our-heritage/history/marketing-and-advertising/

Ethnic Marketing Key to Brewer Success •  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 Light

http://adage.com/article/news/multicultural-mainstream-brewers-search-growth/234864/

Anheuser-Busch InBev •  AB-InBev ranked #2 in "World's Most Admired Companies" in

2011 in the Beverage Industry behind Coca-Cola

•  Some of AB-InBev's popular brews: o  Bud, Bud Light, Bud Select

o  Shock Top

o  Michelob Brewing Co.

o  Beck's

o  Landshark

o  O'Doul's

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

 Deal augments AB-InBev’s position in the fast-growing Mexican market and expands the reach of the Modelo brands globally

http://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 Multicultural Marketing

  Uh…?

Differences?

  Why AB-Inbev’s commercial works  Comedy  General Market Campaign with Touchtones

 Marketers understand 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.   cannot get 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

Campaign Visual

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?

Bibliography   http://online.wsj.com/article/SB10001424052702303649504577495921266834262.html   http://adage.com/article/news/multicultural-mainstream-brewers-search-growth/234864/   http://www.npr.org/2011/10/11/141152273/the-subtleties-of-marketing-beer-to-latinos   http://www.commercialalert.org/issues/culture/alcohol/big-brewers-look-to-tap-hispanic-

market   http://www.youtube.com/watch?v=hw_kHH3zJGY   http://www.youtube.com/watch?v=tzPlNHmhf4k   http://adage.com/article/news/sam-adams-show-small/143086/   https://ch1prd0210.outlook.com/owa/redir.aspx?

C=lxLGYWufZEKX1VcQobwfKPgLU4llpM8IZVBMWVBQiR7Kmu2u3QmjaJqjrKMJSNd8dK1D-QMjq5o.&URL=http%3a%2f%2fwww.hispanicize.com%2fsocial-media%2fsam-adams-new-crowdsourced-beer-is-a-really-smart-marketing-campaign

  https://ch1prd0210.outlook.com/owa/redir.aspx?C=lxLGYWufZEKX1VcQobwfKPgLU4llpM8IZVBMWVBQiR7Kmu2u3QmjaJqjrKMJSNd8dK1D-QMjq5o.&URL=http%3a%2f%2fanheuser-busch.com%2findex.php%2four-heritage%2fhistory%2fmarketing-and-advertising%2f