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Morgan Passek Part II 7/23/13
Part 2: New Product Concept and Launch Plan Development
Opportunity Analysis:
The new product line to be implemented from Archer Farms is Fruit Infused Beer
with a variety of flavors. Flavors include Chili Lime Kick, Blueberry Blues,
Strawberry Wheat, Mango Madness as well as Country Apple Cider. This product
will be made with top quality, natural ingredients and made with as few calories as
possible. This product line is viable because of the booming microbreweries and
beer industry in general; especially with bold fruity flavors. Consumers seek variety
and are wiling to try out new flavors of beer. To provide a few statistics from the
Brewers Association, there are 2,416 breweries in the United States as of March
2013 and 97% of those breweries are small, independent ones1. To help put this
more into perspective sales in 2011, were $8.7 billion dollars2 in the craft beer
industry and it will only continue to grow as consumer’s tastes and curiosity
heightens. In fact, taken from a poll by Gallup, beer is preferred 4% more than
wine3.
51.5% of the population ages 18 and older in America are frequent drinkers.4 This
means that 6.3 million people consume alcohol on a frequent basis. The market
segment for Archer Farms Fruit Infused Beer will be slimmed down but we have the
potential to reach these 6.3 million people. As I had stated earlier in my targeting
segment in part I, when calculating the population target market size between three
popular Target Store locations it accounted for 7.7% of the total US population and
with 1,778 stores nationwide we would have a great success in acquiring new
customers and current, loyal customers to try our new product line.
WHO:
Our target consumer will be men and women ages 23-‐45 with expendable income to
purchase a middle-‐of-‐the-‐line to top-‐of-‐the line product on a frequent basis. The
Center for Disease Control and the Gallup Survey both state that men drink beer
more frequently that women do as well as people with in this age range (23-‐45
years old) prefer beer over liquor or wine.5 I believe with Archer Farms Fruit
Infused Beer that women will pick it up off the shelves more frequently because of
the fresh, fruity flavors and the healthier benefits of a lighter beer. Once the beer is
brought home, the men will want to try the product out and then make their own
conclusions. This by no means is a gender specific product line, but once the product
line is up and going we may see a higher female purchasing trend. It’s all about
flavor preference.
As well as the fun, summertime flavors, Archer Farms has also included a Country
Apple Cider for those who suffer from a gluten allergy. This beer will be completely
gluten free and will open up a new segment of consumers. Ciders are a hot trend in
the beer industry these days, and with 18 million6 people suffering from gluten
intolerance it’s only proper that we provide this delicious product to not only them
but also those who aren’t gluten sensitive.
Design and Technology Elements:
Archer Farms currently has a strong brand image due to its packaging, logo design,
and overall presentation of the product. It is easy to differentiate an Archer Farms
product from other products because of their distinct green labels with
supplemental colors to complement the brand’s multi-‐flavored product lines. The
new Archer Farms Fruit Infusion Beer will keep the integrity of the AF design line
and further utilize the diamond pattern, logo and green accents on the bottle label as
well as the six-‐pack holder. Please see Exhibit 1-‐3 for packaging and on shelf details.
Because Archer Farms currently makes soda and other drink products, labeling and
bottling will not pose as a challenge.
Technologically speaking, it would be wise to create a new brewing facility in order
to prevent traces of alcohol mixing with the lines the soda is bottled in. We will need
to be equipped to brew, test, and package our product in one to three facilities
around the United States. R&D would be proper to set in place. It could take a few
months up to a year to develop and produce the right recipes with good quality hops
and malts at approximately 4-‐5% ABV (alcohol percentages by volume). Building
and constructing these facilities shouldn’t take long either but once set up and ready
to distribute, the ROI will be extremely profitable and will offer a large return in a
short amount of time. To have test markets set in place to see how the product does
on its own would be beneficial to complete. Also, including more market research
such as focus groups and customer feedback surveys would help us understand if
this product line is a good fit for our company.
Value Proposition:
In order to differentiate Archer Farms Fruit Infused Beer from the competition we
first need to assess whom our competitors are. Because Archer Farms is solely sold
in Target stores I will be focusing on the competitors that are carried in Target
stores. Looking at product form competition, the beers include Samuel Adams
Summer Variety Pack, Leinenkugels (with a variety of flavors), Blue Moon, Shocktop,
and Pyramid Apricot ale. These competitors are from mainstream conglomerates
that compete against each other. Prices range from $6.00-‐16.00 and come in a 6,12,
or 24 packs. Other competitors we have to we weary of are other beers sold in the
Target stores such as Modelo, Pacifico, Sam Adams, Bud Lite, Miller Lite, and etc.
Also, Target sells ample amounts other beverages, soft drinks and teas that would
compete for future purchase. A way Archer Farms can position themselves is to
provide the best quality beer made with natural ingredients and provide consumers
with superior flavor at an affordable price. Archer Farms is known for its different
and bold flavors so having blueberries, strawberries, mangos, and chilies with lime
infused in the beer will give it a unique edge in the beer industry. Trader Joes also
has private label brands that work well for their company. They sell different
varieties of beer under a private label brand and also carry other beers from other
breweries. I would like to compare our product to them and see how this product
line works out in the long run.
Concept Test:
The survey conducted was administered through surveymonkey.com. There were
ten open-‐ended and closed answer questions in which the subjects could voice their
opinion. Subjects who were targeted were taken off of the University list serve,
Facebook, Twitter and email. Of the people targeted, 49 people completed this
survey. The questions were as follows: How often do you shop at Target? Do you
purchase Archer Farms products? If yes, why do you purchase Archer Farms? If no,
what keeps you from purchasing Archer Farms products? Introducing: Archer
Farms Fruit Infused Beer. The survey goes on to explain the product. Then, would
you be interested in purchasing these Archer Farms products? Why or why not?
Rank in order which beers interest you (1 being best and 4 being worst): Chili Lime
Kick, Blueberry Blues, Mango Madness, and Strawberry Wheat. How much would
you be willing to pay for this product? What is your gender? Are you above 21 years
old? We would like to hear from you! Please place any further comments below.
These questions were all set up so that they were not to be skipped. Therefore,
everyone completed this survey in entirety. One of the largest trends I found was
that 61.54% of subjects did not prefer the Chili Lime Kick flavor.7 Strawberry Wheat
and Mango Madness had the top preference with 38.46% and 25.64% respectfully.
Another big take away was that not many people knew about the Archer Farms
brand. So when I administered the second round of surveys I added in a brief
summary of what the brand sold and its history. This proved to help a lot. Exhibit 4
provides all the raw data found from the survey. This survey definitely aided in
finding out what interested the people who might consume these products. Another
fact that I found interesting was that 69.23% of respondents were females and most
all of them preferred the Archer Farms Fruit Infused Beer line. Instead of changing
much of the product line it’s self due to the reactions of people. I decided to leave the
Chili Lime Kick for trial and test areas to see how it does. I was wavering on
dropping the Chili Lime beer due to the negativity but there were also people who
preferred that flavor in the survey (36% ranked it 1st, 2nd and 3rd place) I also
decided to add in the Country Apple Cider to appeal to the fruity drinkers and the
gluten allergy, as I had stated before.
Barriers:
Some barriers that Archer Farms must overcome are governmental and regulatory
laws on alcohol creation and distribution. These legal feats need to be taken care of
and researched before these products come into fruition. We will take all
precautionary measures and place the correct warning labels on our Archer Farms
products in order to avoid any issues.
Advertising is something that Archer Farms hasn’t implemented much. Advertising
for a fruit infused beer as their first product-‐centered advertising might be a great
success or a failure. I say this only because people in certain parts of the country and
their different beliefs could take a negative view of Archer Farms for selling alcohol.
Marketing Plan:
As stated earlier in the survey that was administered, the subjects were asked how
much they would be willing to pay. Most respondents answered $5.00-‐9.00. In
reality, this is not a proper question to ask of neither students nor anyone really
because they will always opt for a lower price. It would be recommended for this
product to be sold at $9.00-‐14.00 per six-‐pack. If a decision had to be made as an
estimate I would peg it at $12.00. But, this will be decided once we develop this
product and understand what ingredients best fit for this product line.
This product line should be represented with a holistic approach. The marketing of
this product will only work if they are sold as a whole. The Archer Farms Fruit
Infused Beers sold as a collection of all the flavors would be the most beneficial to
market.
For promotions Archer Farms would like to see end of aisle display cases
advertising their new product line. Along with this, employees will be trained to sell
this product and provide samples for those ages 21 and over. It’s not common for
Target to provide samples of products, but it will be an efficient way to promote and
sell AF Fruit Infused beer. TV commercials and newspaper inserts (in the Target
Ads) will provide awareness and spark curiosity in consumers. As stated in part I,
social media is an imperative option, extremely affordable and creates a strong buzz
if implemented properly.
Because Archer Farms is a privately owned brand from Target it will already have
access to all Target stores if market testing goes well. The product will be easy to
distribute because there will already be existing distribution set in place. I do not
believe that there will be any negative responses from the beer product companies
that Target stocks already. I think it would be looked at more as friendly
competition where Target will still run store promoted specials on their products at
certain times and then provide promotions the Archer Farms Fruit Infused Beer
line.
Exhibit 1 and 2: Archer Farms Fruit Infused Beer Six Pack mock up. Colors will vary between flavors.
Exhibit 3: Archer Farms Soda Bottle example of labeling and cap that will be used for the new product line. Colors will vary.
Color Swatches:
Chili Lime Kick Mango Madness
Strawberry Wheat Blueberry Blues
Country Apple Cider
Appendix:
Survey Monkey Results for Answers with Closed Ended Responses:
Citations:
1."Craft Beer Backgrounder." Brewers Association. N.p., n.d. Web. 24 July 2013. <http://www.brewersassociation.org/pages/media/Craft-‐Beer-‐Backgrounder>.
2. "Number of Breweries." Brewers Association. N.p., 2013. Web. 24 July 2013. <http://www.brewersassociation.org/pages/business-‐tools/craft-‐brewing-‐
statistics/number-‐of-‐breweries>.
3. "Celebrating the Best of American Beer." Craft Beer. N.p., 2013. Web. 24 July 2013. <http://www.craftbeer.com/>.
4. "Summary Health Statistics for U.S. Adults." Center for Disease Control. US Department of Health and Human Services, Dec. 2012. Web. 24 July 2013.
<http://www.cdc.gov/nchs/data/series/sr_10/sr10_256.pdf>.
5. Saad, Lydia. "Majority in U.S. Drink Alcohol, Averaging Four Drinks a Week." Gallup. N.p., 17 Aug. 2012. Web. 24 July 2013.
<http://www.gallup.com/poll/156770/Majority-‐Drink-‐Alcohol-‐Averaging-‐Four-‐Drinks-‐Week.aspx>.
6. "FAQs." Center for Celiac Research & Treatment. N.p., 2013. Web. 24 July 2013.
<http://www.celiaccenter.org/gluten_faq.asp>.
7. Passek. "Survey Monkey." SurveyMonkey. N.p., 18 July 2013. Web. 24 July 2013. <http://www.surveymonkey.com/MySurvey_EditorFull.aspx?sm=R95r29elpHSweK
CpjcZrhmRe_2FUBVXklpizFZdLRefrY_3D>.