Samuel Adams Marketing Brief

Samuel Adams
Marketing Brief
December 12, 2011
Table of Contents
Brand Overview
1
Market Distribution
3
Market Segmentation
4
Current Marketing Efforts
6
Competitive Charts
12
Positioning and Delineating the Competition
15
Programs/Proposal Recommendations
17
References
25
Brand Overview
Samuel Adams is an American brand of beer brewed and owned by the Boston Beer
Company. Founded in 1984 by Jim Koch, Harry M. Rubin and Lorenzo Lamadrid in Boston,
Massachusetts, the Boston Beer Company is now the largest American-owned beer company
(following the sale of Anheuser-Busch to InBev). The brand name was chosen in honor of Samuel
Adams, an American patriot famous for his roles in the American Revolution and Boston Tea Party.
He was also renowned for his brewing tradition.
The company currently produces 12 varieties of beer year-round: Boston Lager, Samuel
Adams Light, Boston Pale, Pale Ale, Cherry Wheat, Cream Stout, Brown Ale, Hefeweizen, Scotch
Ale, Black Lager, Honey Porter and Irish Red. Boston Lager, with its trademark blue-flame tap
handle, is one of the most widely distributed beer drafts, readily available around the United States.
Additionally, the company brews 19 styles of seasonal beer that are distributed through
seasonal variety packs based on the time of year. Other specialty brews that exist for limited runs
include the Brewer Patriot Collection, Utopias and the Barrel Room Collection. Altogether, Samuel
Adams offers 39 distinct flavors of beer available in bottles throughout the country.
Samuel Adams is labeled as an American Craft Brewer, which refers to its size, level of
independence and tradition. Koch has often refused to sell to international conglomerates and
bigger breweries with the intention of maintaining Samuel Adams' level of independence and never
having to compromise on his beers. The recipe for the original Samuel Adams Boston Lager has not
changed since the first brew. The Boston Beer Company’s number of barrels sold has varied by year
over the past three years. However, the company’s revenue per barrel has steadily increased,
according to the Samuel Adams 2010 Annual Report. The following table shows the number of
barrels sold from 2008 to 2010 and the net revenue per barrel each year.
1
Barrels sold (in
thousands)
Net revenue per barrel
(in thousands)
1,992
Samuel Adams Sales Figures 2008-2010
2008
2009
2,021
2,259
$170
$187
$204
2010
According to the Brewers Association (2010), in the U.S. beer market, Samuel Adams holds
a small percentage of the market share as part of the 7.0% occupied by craft brews in the chart
below. Bud Light owns the largest market share at 28.5%. Market share drops significantly to 11.4%
for second place to Budweiser, both produced by the same company. As a company, AnheuserBusch owns the largest market share of the U.S. beer market, 55.4%, followed by Miller-Coors.
U.S. Beers Market Shares 2010
Total = $26.2 billion
Bud Light 28.5%
Budweiser 11.4%
Coors Light 10.2%
Other 13%
Miller Lite 9.1%
Craft Brews 7%
Natural Light 6.0%
Busch Light 4.0%
Busch 3.6%
Miller High Life 2.7%
Keystone Light 2.6%
Natural Ice 1.9%
The Brewers Association also reports that of the craft breweries, the Boston Beer Company
has consistently held the top position. The company’s sales in 2010 were larger than the next five
craft breweries combined, which are: Sierra Nevada Brewing Co., New Belgium Brewing Co.,
Spoetzl Brewery, Deschutes Brewery and Independent Brewers United. From 2009 to 2010, overall
beer sales in the United States went up by only 0.6%; however, craft beer sales increased by 14.6%.
2
Market Distribution
The Boston Beer Company relies on one primary channel of distribution for its line of Sam
Adams products, indirect intermediary distribution. Samuel Adams uses brokers or agents to stock
and distribute its product to the consumer. Every state in the United States has a different method
of handling alcoholic beverages, which creates the need for a fairly deep channel of distribution.
Generally, Samuel Adams products are shipped from the brewery and factory to a distributor, who
then sells it to a retail establishment, such as a liquor store, restaurant or convenience store.
The vast majority of states do not allow manufacturers to act as distributors, forcing Samuel
Adams to find middlemen to go through the distribution channel and get the product to the
consumers. This is an important point, as Samuel Adams has to use point-of-sale merchandise at
retail establishments and bars in order to control the sale and distribution of its product. This means
strict rules and regulations on the dispensing and promotion of its product, particularly at
restaurants and liquor stores.
In convenience stores, Samuel Adams has witnessed noticeable gains in sales and promotion
in recent years. According to Koch, Samuel Adams has been “getting distribution gains and getting
pull-through. Because of the high service levels and the influence that the big brewers have in that
channel, convenience stores have been slower to take advantage of the craft beer opportunity. For
us, it’s a big opportunity. In craft beer, we are kind of the lead dog pulling the sled into new
channels and distribution.”
3
Market Segmentation
Consumer Demographic Profile
Age
Based on the research conducted by Mintel, 2004, more than half of the respondents’ age
was 21-44. Among them, respondents who are newly legal age drinkers, aged 21-24, are the key
consumers of the beer market based on the chart below. This age group prefers regular, imported
and ice beers.
All (%)
21-24 (%)
25-34 (%)
35-44 (%)
45-44 (%)
55-64 (%)
65+ (%)
Light/low-calorie beer
29
28
34
33
29
26
18
Regular domestic
27
36
31
30
27
24
18
Imported beer
27
38
34
31
26
22
15
Microbrew beer
10
12
14
12
10
7
3
Ice beer
7
15
9
8
6
3
2
Low-alcohol/no-alcohol
beer
6
7
5
6
5
6
5
Any beer drinker (net)
47
54
53
53
48
43
33
Source: Fall 2004 Simmons NCS/Mintel
Beer has lost consumers within the youngest age group, according to a 2004 survey be Morgan
Stanley. In the report, spirits have become the most popular drink choice among 21- to 27-year-olds.
Some 40% of these respondents say spirits are their favorite drink, compared to less than 30% in
2003 (Mintel, 2004).
Income
According to Mintel, beer drinking strongly correlates with income. The higher the household
income, the higher consumption of beer reported. This applies to all beer types. Although beer is
relatively inexpensive when compared to other alcoholic beverages, it is an optional beverage
purchase, not essential, and simply does not make it on the grocery list of most lower-income
4
households. In addition, many lower-income households contain older members, who in general
drink less alcohol (Mintel, 2004).
All (%)
Under $25K
$25-29.9K
$50K-74.9K
$75+
Light/low-calorie beer
29
19
26
32
34
Regular domestic
27
22
25
29
31
Imported beer
27
18
22
28
34
Microbrew beer
10
4
6
11
15
Ice beer
7
6
8
6
6
Low-alcohol/no-alcohol
beer
6
6
6
6
5
Any beer drinker (net)
47
37
42
51
54
Source: Fall 2004 Simmons NCS/Mintel
Gender
Men are much more likely than women to drink each type of beer (Mintel, 2004). However,
the beer drinkers are choosing beer types depending on their mood or circumstances. In the
research, 47% of consumers drink one or more types of beer, and no more than 29% consume a
single beer type (Mintel, 2004).
All (%)
Male (%)
Female (%)
Light/low-calorie beer
29
36
22
Regular domestic
27
39
16
Imported beer
27
37
18
Microbrew beer
10
16
6
Ice beer
7
9
4
Low-alcohol/no-alcohol beer
6
7
4
Any beer drinker (net)
47
61
34
Source: Fall 2004 Simmons NCS/Mintel
5
Current Marketing Efforts
Advertising
When Koch launched Samuel Adams in 1984, he targeted imported-beer drinkers in 30 bars
in Boston, where he brewed his first batch of the craft beer. Twenty-seven years after his company’s
founding, Koch still stands by his initial pitch to local bar managers: "Try our beer: It's handcrafted
in small batches" (Inc. Magazine, 2007).
In the 1980s, Koch established the brand’s media presence through a series of
conversational 30- and 60-second radio spots, in which he served as the brand spokesman
(BusinessWeek, 2003). In Samuel Adams’ current radio advertisements, Koch can be heard promising
that the original Boston Lager’s head is strong enough to hold the weight of a bottle cap.
Even after the company went public in 1995 and Samuel Adams expanded into media with
wider audience appeal, Koch served as the company’s spokesperson, positioning his brand as a
quaint Boston-based company with humble origins that takes pride in its craftsmanship (The Daily
Beast, 2010). Samuel Adams differentiates itself from its larger competitors by highlighting its
products in advertisements, rather than trying to sell a lifestyle. While Samuel Adams devotes a
sizable portion of its budget to outdoor advertisements in its 400 wholesaler markets, and national
TV, radio, print and internet advertising campaigns, the brand maintains its small-guy, independent
image (Boston Beer Company 2010 Annual Report). Koch appears in most of Samuel Adams’ TV
commercials, discussing the care that goes into ingredient selection and the brewing process.
Print campaigns have included full-page advertisements in top-tier nationally distributed
magazines such as Newsweek and Sports Illustrated. Staking its claim as the largest American craft
brewer, Samuel Adams also targets special-interest publications such as All About Beer Magazine and
Draft Magazine.
6
National ad campaigns aim to both educate and entertain customers. In the spirit of its
tagline, “Take Pride in Your Beer,” Samuel Adams TV advertisements play as 30-second narratives
about the craftsman company culture. In 2010, Samuel Adams’ “Growing Up Small” campaign
featured ads that revealed that its U.S. market share is 0.9%. In one ad, Koch is filmed in his kitchen,
explaining how he started the company with just three employees (AdAge, 2010). Regardless of
whether advertisements are promoting Boston Lager, a seasonal offering, or speaking to the
company’s origins, each spot is distinguishable by its quick editing, usage of theme song “Who Do
You Love?” by George Thorogood and its tagline, “Take Pride in Your Beer.”
Event Marketing/Sponsorship
Since opening its Boston brewery to the public in 1988, Samuel Adams asks visitors for small
donations during free tours which have gone to a variety of charities over the years, including Youth
Enrichment Services, the Old Granary Burying Ground where Samuel Adams is buried, and Boston
Cares. Many of the companies Samuel Adams is affiliated with are based in Boston or New England,
showing the company’s pride in where it came from as well as staying true to its roots. While the
company supports hundreds of organizations each year, it has more recently been able to create
larger partnerships benefiting the following programs.
7
HandsOn Network (http://www.handsonnetwork.org , http://www.bostoncares.org)
The Boston Beer Company works with HandsOn Network, the largest volunteer network in
the United States, which includes more than 250 HandsOn Action Centers in 16 countries.
HandsOn Network inspires, equips and mobilizes people to take action through programs that turn
their ideas for change into impactful projects, like wheelchair ramp construction. Samuel Adams also
provides financial and in-kind support to Boston Cares, the Boston arm of the HandsOn Network,
hosting volunteer events and fundraisers benefiting the organization.
The Sean McDonough Charitable Foundation
Nationally renowned sportscaster Sean McDonough and his sister Erin established the Sean
McDonough Charitable Foundation in 2002 with the goal of raising and distributing funds to
children's charities throughout Massachusetts. The Boston Beer Company is a proud founding
sponsor of the foundation, through its annual support of the Samuel Adams Celebrity Draw Party &
Auctions, which kick off the Celebrity Golf Classic held the following day.
Samuel Adams Short Story Contest, Nantucket Film Festival
Samuel Adams sent the winner of the Short Story Contest to the first annual Zoetrope Short
Story Writers' Workshop in Belize in July 2011. The workshop was hosted by Zoetrope: All Story, a
short story magazine published by Francis Ford Coppola. Samuel Adams and Zoetrope: All Story
teamed up to publicize the Samuel Adams Short Story Contest, which was promoted in bars and
restaurants in June 2011, as well as at the Nantucket Film Festival June 17-23, 2011, an event also
sponsored by Samuel Adams.
OctoberFest by Samuel Adams
Samuel Adams holds an OctoberFest in honor of the German tradition each September,
showcasing 15 varieties of beer, live bands and traditional German cuisine. The festival lasts a full
weekend and has become a Boston tradition.
8
Consumer Promotions
Samuel Adams offers several contests and sweepstakes involving the consumer year-round
as an effort in consumer promotions. The company’s marketing campaigns have continuously
supported community and customer involvement, particularly highlighting the homebrewer, as well
as serious and knowledgeable beer consumers.
Patriot Homebrew Contest
The Homebrew Contest exemplifies the company’s
values of homebrewing and beer traditions. This contest is in its
fifth year and focuses on the New England market. Samuel
Adams partners with Gillette Stadium in Foxborough,
Massachusetts, by presenting the contest winners at an event at
the stadium. The company also partners with beer-wine.com by
promoting the website as a shop to purchase equipment to be used for the contest.
Longshot American Homebrew Contest
The Longshot American Homebrew Contest is a
national-scale version of the Patriot Homebrew Contest, in
which Samuel Adams invites homebrewers to follow in Koch’s
footsteps and propel their brew to national distribution. The
first contest was held in 1995 and continues annually. This contest brings the home-grown message
to a national level so consumers everywhere can be a part of the local feel. This contest also utilizes
the consumer to propel its publicity.
Beer Lover’s Choice
For the past six years, Samuel Adams has held the Beer
Lover’s Choice event, marketed to consumers across the country.
9
Consumers can cast a vote between two of Samuel Adam’s specialty brews, having a say in the beer
Samuel Adams offers. People can visit the brewery in Boston, or visit special events the brewery sets
up in select cities around the country to showcase the two brews.
Player for a Day Promotion
During the 2011 baseball season, Samuel Adams
affiliated itself with the Spokane Indians for a free entry
contest. The contest entailed entering one’s name, age and
phone number, and the winner spent a day with the Spokane
Indians, meeting the manager, and receiving a stipend.
Promotional Codes
Samuel Adams offers its subscribers promotional codes that can be used while shopping at
the company’s eStore. The codes provide discounts on Samuel Adams merchandise and let the
consumer feel rewarded for liking the products.
Publicity and Public Relations
Brewing the American Dream
Samuel Adams utilizes public relations to promote its image and convey its messages to its
target audience, and Samuel Adams’ Brewing the American Dream program is one of the most
renowned examples. The program was launched in June of 2008 by Jim Koch and The Boston Beer
Company. It provides funds and mentoring that allow small food & beverage companies to realize
their dream. Koch has said that he values this program because it reminds him of the hard times he
had when he first established the company.
The Boston Beer Company partnered with nonprofit organization ACCION USA and
donated $25,000 to establish the Samuel Adams Brewing the American Dream Loan Fund. This
fund helps business owners who are not able to acquire a bank loan. Through educational
10
workshops, the program provides an opportunity for local entrepreneurs to meet one-on-one in 20
minute intervals with Samuel Adams employees to get advice and ask questions about web
development, marketing, packaging, design, publicity, pricing, and sales and distribution for help in
starting their own businesses.
Press Releases
Samuel Adams has issued several press releases regarding the benefits of the American
Dream program, and many news outlets, including newspapers, magazines, television and the web,
have presented this information. Samuel Adams routinely issues press releases to put its news out to
the media. In 2011, the company issued between one and three press releases per month.
11
Competitive Charts
In terms of Samuel Adams’s competitors in the mass-produced beer field, Budweiser and
MillerCoors are prominent examples, especially their products: Budweiser, Bud Light, Coors Light
and Miller Lite. Those two brands differ from Samuel Adams because they emphasize affordable
prices. However, Samuel Adams stresses its high-quality beer, so its pricing is higher than Budweiser
and MillerCoors.
Samuel Adams
Competitive Chart (Major beers)
Budweiser
MillerCoors
Product
Category
description
Specific product
American craft beer
Boston Lager (original)
Samuel Adams Light
Seasonal:
Chocolate Boch
Cranberry Lambic
Dunkelweizen
Harvest Pumpkin Ale
Noble Pils
Octoberfest
Old Fezziwig Ale
Summer Ale
White Ale
Winter Lager
Bonfire Rauchbier
East West Kolsh
Raustic Saison
Mass-produced beer
targeting normal drinkers
Budweiser, Bud Light,
Budweiser Select, Budweiser
Select 55,Budweiser Select
American Ale, Budweiser
Select Chelada(bolds are our
main competitors)
Mass-produced beer targeting normal drinkers
7, 8, 10, 12, 16, 18, 22, 24, 32
and 40 US ounce containers,
half-barrel (15.5 US gallons),
quarter-barrel, 1/6 barrel and
beer balls (5.2 gallons)
6 pack of Bud light/
Budweiser bottles and cans
are about$ 7; 24-12oz cans
Bud light/ Budweiser are
about$15.99; 30-12oz cans
Bud light/ Budweiser are
about$18.99
8-ounce cans, 12-ounce cans, 24-ounce cans. 8-packs
of 7-ounce bottles and 24-packs of 8-ounce cans. 12ounce glass bottles
can be purchased all over the
United States, and other 16
countries
can be purchased all over the United States
Coors Banquet, Coors Light, Extra Gold Lager,
Golden Draft, Icehouse, Keystone Ice, Keystone
Light, Keystone Premium, Magnum Malt Liquor,
MGD 64, Mickey's, Mickey's Ice, Miller Chill,
Miller Genuine Draft, Miller High Life, Miller
High Life Light, Miller Lite (bolds are our main
competitors)
Price
Size
The traditional bottle size is 12 oz.
Specialty beers are packaged in 750
mL bottles.
Suggested Retail
Price
6-pack is between $7.99 and $8.99.
12-pack costs between $13.99 and
$15.99.
6 pack of Miller Lite/ Coors Light bottles and cans
are about$ 7;
24-12oz cans Miller Lite/ Coors Light are
about$15.99; 30-12oz cans Miller Lite/ Coors Light
are about$18.99
Place
Where
Can be purchased all over the United
States and in 22 countries.
12
Promotion
Media Advertising, Event Marketing,
Sponsorship, Consumer Promotions,
Publicity and Public Relations, Direct
Marketing (newsletter)
Media Advertising ex: Super
Bowl Commercial
Campaign ex:“Bud – Weis –
Er” and “Real Men of
Genius” campaigns.
Budweiser Girls: Budweiser
hires attractive females over
the age of 21 to promote the
lifestyle and attributes of
Budweiser beer.
Ads ex: Dominoes
Campaign ex: MillerCoors Urban Entrepreneurs
Series
Miller Lite girls: MillerCoors hires attractive females
to promote their products
Market share
Less than 1% of the American beer
market. 20.20% of the American
craft beer market.
Coors Light currently has 8.5% of the beer market
share;
Miller Lite lags a bit behind at 7.5%.
Customer
Demographics
21-44 year-old men
Bud Light has 19.1% of the
beer market share;
Budweiser's has 8.7% of the
beer market share
18-34 year old consumers
who are beer heavy user; Sex:
mostly male; Occupation:
technical; clerical sales;
students
Samuel Adams
18-34 year olds who like to get the most out of life
and enjoy being out and about with their friends Sex:
mostly male
Competitive Chart (Craft beer)
Sierra Nevada
New Belgium Brewing Co.
Product
Category
description
Specific product
American craft beer
American craft brewery
European-style
Boston Lager (original)
Samuel Adams Light
Seasonal:
Chocolate Boch
Cranberry Lambic
Dunkelweizen
Harvest Pumpkin Ale
Noble Pils
Octoberfest
Old Fezziwig Ale
Summer Ale
White Ale
Winter Lager
Bonfire Rauchbier
East West Kolsh
Raustic Saison
Pale Ale
Porter
Stout
Kellerweis (Hefeweizen),
Torpedo (IPA)
Seasonal:
Glissade
Summerfest
Tumbler
Celebration Ale
Sunshine Wheat
Fat Tire
1554 (Black Ale)
Blue Paddle (Pilsner)
Trippel
Ranger IPA
Belgo IPA
Abbey (Belgian Style)
Mothership Wit
Seasonal:
Hoptober
Snow Day
Type of packaging
The traditional Samuel Adams beer comes in
a 12 oz. dark brown beer bottle. Each bottle
has a Samuel Adams logo label on it.
Sierra Nevada ales come
bottled in amber glass. Beers
are produced in 12 or 24 ounce
sizes, and distributed in 6packs, 12-packs and 24-bottle
cases.
New Belgium beers are made from pure
stream amber glass. The brewery uses the Fat
Tire bicycle logo on all of its labels because it
is more recognizable than the New Belgium
logo.
Boston Lager and Octoberfest are available
in 24, 12 or 6-packs. Seasonal beers are sold
in 12-packs, and these flavors are only
available in season.
13
Boston Lager, Noble Pils, Summer Ale,
Octoberfest and Winter Lager are available
draft-style and are distinguished by their blue
taps.
Number of products
offered
39
17
23
Size/Type
The traditional bottle size is 12 oz.
There are two sizes of beer
bottle: 12 oz. and 24 oz.
New Belgium beers come in two standard
sizes: 12 oz. and 24 oz. 24 oz. bottles are sold
separately and 12 oz. bottles are sold in 6and 12-packs.
Suggested Retail
Price
The suggested retail price for a 6-pack is
between $7.99 and $8.99.
The suggested retail price of a 12-pack is
between $13.99 and $15.99.
The suggested retail price of the 22 oz.
flagship Fat Tire beer is $2.99. A 6-pack costs
about $7.20 and 12-packs cost $14.99.
Place
Samuel Adams beers can be purchased all
over the United States and in 22 countries.
(2010 Annual Report)
The suggested retail value of a
12 oz. 6-pack is $8.99. The 24pack of 12 oz. bottles costs
$30.99. The 12-pack 12 oz.
bottle costs $15.99.
Produced in California, Sierra
Nevada is sold through
independent distribution
centers around the country.
Promotion
Tactics used
Media Advertising, Event Marketing,
Sponsorship, Consumer Promotions,
Publicity and Public Relations, Direct
Marketing (newsletter)
Media Advertising, Publicity
and Public Relations,
Sponsorship and Event
Marketing, Consumer
Promotions
Event Marketing and Sponsorship,
Consumer Promotions, Direct Marketing,
Social Media Advertising
Market share
Less than 1% of the American beer market.
20.20% of the American craft beer market.
The third largest craft brewery in the country,
with 6.4% of the craft brew market.
Customer
Demographics
21-44 year-old men
Sierra Nevada is the second
largest craft brewer in the
country and the sixth largest
brewer in the US. 7.94% of the
American craft beer market.
21-34 year-olds, looking for
variety in their beer. Respect
quality beer and appreciate the
environment.
Sierra Nevada has won awards
for being a green brewery with
the factory powered by solar
energy. (Fast Company)
Price
Others
The brewery is based in Colorado, and
distribution has spread to surrounding states.
Currently, New Belgium beers are distributed
in 26 states. Customers can buy Fat Tire and
other NBB beers in 28 states.
Beer drinkers with an active lifestyle, and
appreciate the environment.
Offers grants to local non-profits and
supports advocacy for transportation
legislation.
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Positioning and Delineating the Competition
Positioning/Business Opportunities:
1. Samuel Adams already works with many charities, but has yet to marry those ventures with the
sale of its beers. Tying a charity to a celebrity would make it more salient and relevant.
2. Many craft beer trade shows occur nationwide, but neither Samuel Adams, nor its competitors,
attends these trade shows.
3. Samuel Adams’ seasonal brews are very popular among consumers, but they only come in variety
packs. Showcasing two of the more popular holiday brews by selling them individually in six-packs
could increase sales.
Positioning Statement: American craft tradition in a bottle.
Elevator/Positioning Statement:
Samuel Adams is for the experienced, discerning beer drinker who is dissatisfied with massproduced, cheap beer. Our product is a classic American craft beer that provides flavor and
traditions, unlike Miller/Coors and Budweiser. We provide a higher quality American craft beer.
Positioning Charts
Celebrity Charity Positioning Chart
Special Brew with Celebrity for Charity
Samuel Adams
Sierra Nevada
New Belgium Brewing Co.
Budweiser
MillerCoors
15
Trade Show Visibility Positioning Chart
Craft Brewers Conference
American Craft Beer Week
Samuel Adams
Sierra Nevada
New Belgium Brewing Co.
Budweiser
MillerCoors
Seasonal Brew Positioning Chart
Seasonal (Specific) Beer
Variety Pack
Samuel Adams
Seasonal (Specific) Beer Single
Flavor
X
Sierra Nevada
X
New Belgium Brewing Co.
X
Budweiser
MillerCoors
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Programs/Proposal Recommendations
Celebrity Charity Program
Program #1: Celebrity Charity
Objective: Samuel Adams will partner with a famous Boston-associated celebrity to develop a new
brew, with a portion of the proceeds from each six-pack purchased going to a charity of the
celebrity’s choice. This program will create buzz for the brand and attract new drinkers.
Strategies: In the first year, Samuel Adams will partner with Mark Wahlberg, a Massachusetts native
who appeals to the male 21-44 year-old beer-drinking demographic. Wahlberg will be flown into the
Samuel Adams brewery for a day to meet with Samuel Adams brewmasters, who will educate him
on ingredients and the brewing process. The team will collaborate to create the Samuel Adams
Wahlberg Ale, which will be introduced as a limited-time batch as part of the Brewmasters
Collection. Proceeds will be donated to The Mark Wahlberg Youth Foundation, a Newton-based
non-profit that funds youth organizations. This program will draw new drinkers, both fans of the
actor and people who like to support causes, and will increase profits. The Celebrity Charity
Program will also highlight Samuel Adams’ commitment to community involvement and long
history of charitable giving, which will win new supporters. Based on the success of the first year,
the Celebrity Charity Program will be implemented annually, supporting charitable organizations
involving other famous Boston-area natives who will serve as Samuel Adams spokespeople.
Tactics:
Tactic 1: Publicity/Public Relations – The first phase of marketing will be a publicity campaign.
Through creation of press releases and other publicity materials, outreach and extensive media
relations, the public relations strategy will be to obtain placements in both traditional and online
media outlets. The release of Samuel Adams Wahlberg Ale, its first celebrity-backed beverage, will
17
be pitched to Boston-area news stations, entertainment and celebrity-focused magazines, beer trade
publications, talk shows and influential celebrity gossip and beer-industry bloggers.
Deliverable: Stories about Samuel Adams Wahlberg Ale will appear in at least one trade publication
and one influential industry blog; a profile of Wahlberg detailing his charitable work and his beer
collaboration will appear in at least one major entertainment publication; and Wahlberg will make at
least one talk show appearance to discuss his partnership with Samuel Adams and the charity.
Benchmarking: The publicity campaign’s reach will be measured through media impressions,
tracking of online traffic and monitoring social media conversations, all of which will be captured
through specialized public relations software.
Tactic 2: Event Marketing/Sponsorship – The kick-off of the Wahlberg Ale will be marked by a
VIP party held at the Samuel Adams brewery in Jamaica Plain, where Wahlberg will be in attendance
to accept a check from Jim Koch on the behalf of Samuel Adams and pose for photo opportunities
with both local and national media. Only Wahlberg Ale and other signature Samuel Adams brews
will be served, and the food at the event will incorporate Wahlberg Ale into the recipe. About 500
people will be invited to the event, including reporters for local and national outlets, Wahlberg’s
celebrity friends and influential Boston socialites. The purpose of this event will be to first introduce
the product and second, to generate positive media coverage around the product and the brand.
Deliverable: The party will receive coverage on one local TV station that night, one article will
appear the following week in a local publication and one major entertainment/celebrity magazine
will publish photos from the party.
Benchmarking: Attendance and interactions with media professionals will be documented, media
mentions will be measured and conversations about the event will be monitored for a month.
Tactic 3: Media Advertising – While publicity and a sponsored event will generate buzz around the
product, media advertising will create awareness and familiarity with Wahlberg Ale, which will drive
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demand, especially with national consumers. In each of the advertisements, Wahlberg will appear as
brand spokesman, endorsing his ale. Wahlberg and Koch will appear in a TV spot and Wahlberg will
be shown drinking his beer in print advertisements. The Ale will also be promoted through online
advertising, as paid placements on specific websites appealing to Samuel Adams’ audience segment,
through a Facebook ad campaign and search engine optimization.
Deliverable: Wahlberg and Koch will shoot one TV ad together and Wahlberg will be featured in
two different magazine ads, which will be tested against each other for effectiveness. Banner ads will
be placed on at least five high-traffic websites, and Samuel Adams will push the Wahlberg Ale
through a Facebook campaign.
Benchmarking: Facebook insights will measure Facebook interactions with the brand, and web
analytics will measure the effectiveness of online ads. TV ads will be measured by viewership.
Overall effectiveness of the advertising campaign will be judged by profit figures.
Celebrity Charity Budget
Cost
$1,000,000, of which $100,000 will be written out in a
check to Wahlberg’s foundation
Publicity – hours spent writing press releases and
500 hours = $50,000
promotional materials, researching and developing
databases on contacts, conducting media outreach such
as putting together product packages to mail to
reporters
Event Planning and Execution – catering, decoration,
$1,000,000
creation and distribution of invitations, photographer
engagement, event management, event follow-up
Item
Celebrity Engagement Fee
Advertising – clothing and props, equipment costs and
production costs, payment to distribution channels for
1 30-second TV spot, 2 print ads, 5 banner ads and a
Facebook campaign
TV ads - $6,000,000
Placement in American Brewer Magazine and four toptier national publications - $2,000,000
Online ads - $1,500,000
Total program cost = $11,550,000
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Trade Show Visibility Program
Program #2: Trade Show Visibility
Objective: Samuel Adams will increase its attendance at craft beer trade shows in order to raise
awareness of Samuel Adams among its target audience and new market segments nationally.
Strategies: While Samuel Adams attended a few trade shows in 2011, such as the Craft Brewers
Conference, maintaining a trade show presence and pursuing more trade shows will promote the
brand to current and new customers, as well as expose the brand to more competitors and keep a
pulse on the competition and the industry. Samuel Adams will participate in American Craft Beer
Week held by the Brewers Association May 14-20, 2012 in Boston. This event is conducted
simultaneously in all 50 states and allows breweries and beer companies to have opportunities to
connect with their fans. Craft Beer Week also holds local shows across the country at varying weeks,
and Samuel Adams will have a booth at five of these events in 2012: San Diego, Cleveland,
Louisville, Austin and San Francisco Beer Weeks. Samuel Adams will also attend the Cask Beer
Expo in 2012. This event serves a variety of beer and BBQ to attendees. This festive event can
narrow the gap between Samuel Adams and its target audience, as well as raise awareness among
customers.
Tactics:
Tactic 1: Publicity and Public Relations – Samuel Adams will issue several press releases to local and
niche television and radio stations, newspapers, magazines, blogs and websites that Samuel Adams
will be attending these trade shows. Samuel Adams will also invite influential news media and
bloggers to come to the event and offer them free trade show tickets. This will create a positive
image of the brand and build relationships with local media. After each trade show, Samuel Adams
will invite those media representative to a tour of the Samuel Adams brewery.
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Deliverable: Raise not only media awareness but also consumer awareness of Samuel Adams. Aim to
obtain coverage in 10 national and 10 local media outlets.
Benchmarking: The publicity campaign’s reach will be measured through media impressions,
tracking of online traffic and monitoring social media conversations, all of which will be captured
through specialized public relations software. Launch a survey to measure if consumers know more
about Samuel Adams after these efforts have been made.
Tactic 2: New media promotion – Establish a Facebook fan club and Twitter account to deliver
messages and event information effectively to consumers. By establishing these profiles, Samuel
Adams will be able to interact directly with consumers. This tactic will also get more information out
to consumers, alerting them of the schedule of trade shows Samuel Adams will be attending, and
when Samuel Adams will be in “your town.”
Deliverable: Narrow the gap between Samuel Adams and its customers and increase salience. Aim to
obtain 10,000 “likes” on Facebook and 8,000 followers on Twitter.
Benchmarking: Record how many people participate in this fan club, and how many users respond,
share and retweet posts daily.
Trade Show Visibility Budget
Item
Budget
Trade show Planning and Execution – decorations,
$800,000
literature, materials, event management, staffing
Media Contacts Fee
$200,000
Facebook and Twitter management fee
$4,000
Total program cost = $1,004,000
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Single Seasonal Six-Packs Program
Program #3: Single Seasonal Six-Packs
Objective: Samuel Adams will sell its seasonal brews, currently only offered in variety packs, in
single-flavor six-packs. This program will satisfy a customer need in that many customers prefer only
one or two of the flavors in a variety pack.
Strategies: One of Samuel Adams’ USPs is its many seasonal brews offered quarterly. Beginning
with the winter seasonal brews in 2012, Samuel Adams will offer two of the most popular flavors,
Winter Lager and Holiday Porter, in six-packs, while still maintaining the variety packs. Fans and
beer aficionados have been clamoring to have their favorite seasonal brews available in greater
quantities than just two out of 12 in a variety pack. This program will boost sales and increase
customer satisfaction, as consumers will feel the brand listens to them. After the winter 2012 season,
sales of each type of six-pack will be measured. If sales outweigh all costs associated with this
endeavor, Samuel Adams will continue this program with its spring 2013 seasonal brews.
Tactics:
Tactic 1: Billboards/Outdoor Advertising – The first phase of marketing the seasonal six-packs will
be to put up prominent advertising in liquor stores and grocery stores, as well as billboards in
prominent locations near these venues for purchasing six-packs of beers. The idea is that the
consumer, while shopping for his standard beer products, will notice these advertisements and be
made aware of the fact that he can now purchase his favorite seasonal beer in designated six-packs.
Deliverable: Place billboards at freeway entrances into major cities, as well as near highly trafficked
streets. Post ad posters in liquor stores around the country, and mail the posters to the stores
directly.
Benchmarking: Measure audience reception based on foot traffic and sales figures of seasonal six
packs in the area in which the billboards and outdoor ads are placed.
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Tactic 2: Television and radio commercials – Commercials highlighting the trademark tradition and
craftsmanship of Samuel Adams’ beer, coupled with an emphasis on the changing seasons, will
deliver the message to the consumer that seasonal flavors will now be available for purchase in single
six-packs. The consumer will be reminded of his preference for the rich tastes of Samuel Adams, as
well as the feelings associated with that season, and made aware that he as the consumer now has
the power and ability to choose even more specifically which type of Samuel Adams beers he prefers
and will purchase. These 30-second spots will play during prime-time television on major cable
channels, as well as nationwide on radio stations. The objective will be to get the word out that this
long-demanded product tweak is now available. It is not expected that a significant sum needs to be
spent on advertising, as consumers are already aware of the seasonal flavors.
Deliverable: Advertising with 30-second spots on at least 20 radio stations around the country
whose audience demographic is men between 21 and 45 years of age, and 30-second spots on ESPN
and two cable stations during primetime to get maximum exposure. Ads will remind the
viewer/listener of Samuel Adams’ commitment to quality and its beers’ depth of flavor and
association with that particular season.
Benchmarking: Measure audience reception using portable people meters for radio and Nielsen
ratings for television.
Single Seasonal Six-Packs Program
Item
Budget
Billboards/outdoor advertising execution – on major
$500,000
freeways and in liquor stores
Television spots – 30-second spots on ESPN and
$1,000,000
two major cable networks during prime time
Radio spots – 30-second spots on one appropriate
$1,000,000
radio station in each of the top-20 markets
Total program cost = $2,500,000
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Executive Overview
Samuel Adams offers a classic American craft beer that is high in quality and brewed for the
experienced, discerning beer drinker who is dissatisfied with mass-produced, cheap beer. Samuel
Adams offers 12 varieties of beer year-round and 19 seasonal beers. Samuel Adams beer drinkers are
primarily men aged 21-44 years. While beer sales have gone down for the major beer brands,
Budweiser and MillerCoors, over the past year in the United States, sales have increased in the craft
beer segment. Samuel Adams owns the largest market share of the 7.0% market share that
comprises all American craft beers. In evaluating the current competitive landscape and Samuel
Adams brand identity and history, we identified three program recommendations:
Budget Summary
Program
Budget
Program #1: Celebrity Charity
Samuel Adams already works with many charities, but has yet to marry those
ventures with the sale of its beers. Tying a charity to a celebrity would make it
$11,550,000
more salient and relevant. This program will create buzz for the brand and
attract new drinkers.
Program #2: Trade Show Visibility
Many craft beer trade shows occur nationwide, but neither Samuel Adams, nor
its competitors, attends these trade shows. Samuel Adams will increase its
$1,004,000
attendance at craft beer trade shows in order to raise awareness of Samuel
Adams among its target audience and new market segments nationally.
Program #3: Single Seasonal Six-Packs
Samuel Adams will sell its seasonal brews, currently only offered in variety
packs, in single-flavor six-packs. This program will satisfy a customer need in
$2,500,000
that many customers prefer only one or two of the flavors in a variety pack.
Total cost: $15,054,000
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References
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www.bostonbeer.com
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http://www.businessandleadership.com/marketing/item/26343-clean-streets-tv-ad-reach
http://www.businessweek.com/investor/content/aug2010/pi2010084_000425.htm
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http://consumerist.com/2011/03/coors-light-to-pass-budweiser-as-second-on-biggest-beerlist.html
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http://www.huffingtonpost.com/2009/12/01/sam-adams-utopia-rare-150_n_374997.html
“Jim: She got the House, I got Sam Adams,” Beer Business Daily, August 27, 2010,
http://www.beernet.com/publications_daily.php?id=2199
“Marketing Mix Definition,” Jon Griffin’s Blog, http://jongriffin.com/business-articles/marketingarticles/marketing-mix-definition/
Mintel, Domestic Beer - US - November 2005
http://www.oppapers.com/essays/Bud-Light-Target-Market/719395
Samuel Adams 2010 Annual Report
www.samueladams.com
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http://seattlebeernews.com/2011/10/grab-a-beer-sierra-nevada-estate-homegrown-ale/
http://www.sierranevada.com/environment/images/2010SierraNevadaSustainabilityReport.pdf
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