Marketing Plan: The Boston Beer Company
Anthony M. King
Embry Riddle Aeronautical University
This marketing plan explores the fundamental goals of the Boston Beer Company for status retention, market growth, and product expansion. The publications and information researched support thorough analysis of the current market, product assessment, review of competition and current distribution strategies. The company’s threats, opportunities, strengths and weaknesses have also been assessed to provide insight to the Boston Beer Company’s motives for marketing approach. As a result, several marketing strategies have been suggested, specifically within the categories of positioning, product, pricing, and distribution. The proposed action programs within this marketing plan illustrate the company’s intent to follow these strategies. It was also necessary to address the company’s objectives and issues to emphasize the importance of their planned goals and ability to successfully achieve them, despite obstacles that have presented themselves in the craft brew industry. Finally, a review of the company’s budgets and controls has been provided to reinforce their position within this segment.
Marketing Plan: The Boston Beer Company
The Boston Beer Company is a leader in the American craft beer industry. This industry, as defined by the Brewers Association, is comprised of “small, independent and traditional” American brewers (2013). With their line of Samuel Adams brews, the Boston Beer Company continues to rank at number one for American craft brewers, based on volume of sales. While upholding the company's motto to continue production “For the Love of Beer” is priority, marketing their distinctive products to their target consumers plays a critical role in their success. The primary marketing objective of the Boston Beer Company is to maintain their exemplary status in the craft beer industry by introducing new beer styles, providing excellent service to retail partners, and maintaining high quality standards (Samuel Adams Annual Report, 2012). Current Marketing Situation
The Boston Beer Company began it's journey when founder Jim Koch brewed his first batch of the acclaimed Samuel Adams Boston Lager in 1984. Using the recipe handed down from his great-great grandfather, and dating back to the 1800's, Jim Koch revitalized America's desire for full bodied, hand crafted beer. By no coincidence, the name Samuel Adams was chosen as the historical figure was an American patriot who fought for independence and, like Jim Koch, learned to brew from his father. This foundation propelled what began as an independent endeavor, based out of Koch's basement, into a national, award winning, hand crafted legacy. According to the Brewers Association, “Overall U.S. beer sales were approximately 200,028,520 barrels” while “craft brewers sold an estimated 13,235,917 barrels of beer in 2012” (2013). These figures indicate that the craft brewer industry contributes approximately 6.5% of sales, by volume, in the beer market. In 2012, The Boston Beer Company sold to consumers a record 2.7 million barrels of beer. As noted in the Samuel Adams 2012 Annual Report, although this marked a 12% increase in sells, and revenues of approximately $629 million, the company is still well within the 6 million barrel limit, as required by the Brewers Association, to maintain their competitive position in the craft beer industry (2012). Market Description
The craft brewery segment is a growing sector with a loyal consumer base, appealing to individuals who seek hand crafted beer with distinctive and bold flavors. 2012 marked significant growth of the industry with an increase of 15% by volume and 17% by dollars (Brewers Association, 2013). The Boston Beer Company contributes to this growth by utilizing its specific marketing strategies to entice their target...
References: Berman, A. (2013, April 10). Brewers Association Releases Top 50 Breweries of 2012.
Brewers Association (2013, March 18). Craft Brewing Facts. http://www.brewersassociation.org/pages/business-tools/craft-brewing-statistics/facts
New Belgium Company (2013). http://www.newbelgium.com/brewery/company.aspx
Marketing and Advertising code (2012, September) [PDF Document]. Retrieved from website: http://www.brewersassociation.org/pages/business-tools/marketing-and-advertising-code
Samuel Adams 2012 Annual Report [PDF Document]. Retrieved from website: http://www.bostonbeer.com/phoenix.zhtml?c=69432&p=irol-overview
Sierra Nevada Company (2013). http://www.sierranevada.com/brewery/about-us/our-story
The Gambrinus Company (2013). http://www.gambrinus.com/company_overview.html
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