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Transcription
which can be found at this link
Always in Season Launch Campaign spring 2014 Prepared by 1. Executive Summary 2. Situation analysis 3. Brand Positioning 4. Target Market 5. Launch Campaign 6. Evaluation 7. Additional Recommendations 8. Conclusion 9. Works Cited 10. Appendix i4th Tap Executive summary As the first craft beer cooperative in the U.S., 4th Tap has the distinct opportunity to build a brand that is unique and appealing to the individuality of craft beer drinkers of Central Texas. Utilizing a democratic worker-owned business model, the founders of 4th Tap share the values of craftsmanship, creativity and transparency, which are prevalent throughout their brewing process. The brand name speaks to the rotational flavor that graces the 4th tap of breweries and pubs that is known for unique, seasonal flavors. To bring this new brand to life, Table Top Branding has created a comprehensive launch plan that includes brand positioning, a launch event and a digital strategy. Built on 4th Tap’s vision of creating unique, seasonal brews, the tagline we’ve created for the cooperative brewery is “Always in Season.” The company is always innovating, meeting consumer preferences for new experiences. Dedicated to both the art and science of brewing, the founders of 4th Tap represent the creativity and collaboration that characterizes the craft beer culture. To launch this new brand, a creative BeerQuest event will be held in several local Austin breweries on Rainey Street. Catering to craft beer drinkers who enjoy seeking new experiences, the Quest offers consumers an opportunity to try five rare brews during this one-day event. They will be able to mark off the beers they try on a Beeriodic Table, tracking their experience with 4th Tap. This event will also serve as the founding day of the craft beer club, which will be dedicated to the unique experience offered by 4th Tap, an aspect of consumption highly revered by craft beer drinkers. Blogger outreach will be used to build buzz from expert sources about the event and the brand before the BeerQuest. Meanwhile, social media will be used during the event to multiply its digital reach. For long-term branding, a website redesign will be implemented as a resource for craft beer drinkers who are interested in the brand. Featuring information about the brewery’s story, beers and distributors, this site will house all pertinent information for anyone looking to get a 4th Tap brew. As the digital hub of the 4th Tap brand, it will also house the sign-up for the craft beer club and link out to social media channels. Ultimately, this represents a comprehensive launch campaign to introduce 4th Tap into the craft beer scene. Integrating insights from both primary and secondary research, the branding, launch and digital strategies combine consumer preferences with 4th Tap values to form a truly unique campaign. iii4th Tap Situation analysis Launch Campaign, Spring 2014 1 I. Company (Internal Analysis) Culture, Mission & Vision As the first worker-owned cooperative brewery in the U.S., 4th Tap Brewing Co-op seeks to bring a passion for creating interesting flavors to life, while utilizing a democratic business model. After brewing beer informally for a number of friends’ weddings, the seven founders of 4th Tap decided to turn their hobby into an official business venture. Leaving behind careers as software developers in corporate America, they sought a business model that would foster transparency and democracy among all employees. The worker-owned cooperative model met this need and continues to foster a culture of openness, equality, free thinking, and experimentation at 4th Tap. The mission of the company is to use unique ingredients to produce a quality product in which all the founders have an equal voice in creating. Key values in the brewing process include craftsmanship, artistic vision and scientific rigor. According to the cooperative’s business plan, 4th Tap also hopes to be “a positive force in the community through service, engagement, and environmentally-friendly business practices.” Furthermore, the meaning behind the name “4th Tap” defines how the brand wants to be perceived. The cofounders chose the name to signify the special-selection tap (the 4th tap at most breweries) where seasonal beers are debuted. They aspire to use non-traditional ingredients to make all of their beers special. To achieve this mission, the cooperative has outlined a strong vision for the future. First and foremost, they plan to exemplify the workerowned cooperative business model by achieving strong profitability and growth. Current sales projections indicate that the company will achieve $266,666 in sales during 2014 and $466,666 in 2015 (operational year 1). This growth is expected to continue, reaching $2.6 million in 2018. In addition, 4th Tap intends to be one of the few breweries in Texas with its own qualitycontrol lab capable of doing cell culturing and chemical analysis that can then be sold to other breweries. Long-term plans also include opening a warehouse to brew their products, bottling their own beer for distribution, and incorporating a bar for consumers to taste the products on premise. Launch Campaign, Spring 2014 3 Risks & Resources Though the company is willing to endure the substantial amount of risk that accompanies any new business venture, they do not currently have the resources to open their doors. First, 4th Tap has not yet obtained a license from the Texas Alcoholic Beverage Commission (TABC) to distribute beer. Though the founders have a strong working relationship with TABC, the company cannot distribute beer until said license is obtained. They expect to acquire this license by late 2014, establishing the projected dates for the launch campaign as December 2014 to January 2015. Secondly, the company lacks capital to obtain necessary resources, such as a warehouse and equipment (costing approximately $25,000) to begin brewing on a large scale. Currently, they are operating on a 20-gallon brewing system in a garage that will not be sufficient for production when the product goes to market. That said, investment opportunities are being pursued by the founders to achieve the projected launch schedule. With both of these risks noted, the agency has created a launch campaign that is flexible, should the timing of the launch need readjustment. Overall, 4th Tap Brewing Co-op has a strong vision for the future as a unique brewery that creates niche flavors utilizing a democratic business model; however, they currently lack the necessary capital and legal resources, which poses a risk to achieving projections and goals. Launch Campaign, Spring 2014 4 II. The Beer Industry Earning $83 billion in sales in 2013, the U.S. beer market is still recovering from the negative effects of the recession seen from 2008 to 2011 (Mintel, 2013). Though dollar sales increased 4.1 percent from 2012, volume sales remained flat at 2.8 billion cases, indicating that the increase occurred primarily from rising prices, not from increased consumption. Substitution of wine and spirits pose a major challenge for the industry, with each gaining 1 and 5 percent of the alcohol beverage market, respectively, in 2011, costing beer 6 percent of its previous share (Demeter Group, 2013). Health concerns are another factor that impacted this trend, with about onethird of Americans admitting they reduced beer consumption in 2011 due to concerns regarding high caloric values in beer (Mintel, 2012, Usage). Despite these challenges, the industry is projected to continue its slow growth, reaching 2.9 billion cases (3.5 percent increase) and $95 billion in sales (14.5 percent increase) by 2018. In part, this growth is attributed to the overall improvement of the US economy, correlating with the larger amount of discretionary household income that is set to continue increasing in the months to come (Wong, 2011). The Craft Beer Industry Defined as small, independently-owned firms that produce fewer than 6 million barrels of beer per year (Brewer’s Association, 2013), craft breweries are categorized by brewery type and output capacity. This segment includes nanobreweries, microbreweries, brewpubs, contract brewing companies, regional craft brewers, and large brewers. These firms’ production ranges from less than 30 to more than 2 million barrels per year (Klaban and Nickerson, 2011). As the only domestic beer segment to experience volume sales growth during the recession, sales in the craft beer industry increased from $5.7 billion in sales in 2007 to almost $12 billion in 2012 (Mintel, 2012). This growth continued in 2013, which saw sales of $14.3 billion, accounting for 14.3 percent of the U.S. beer market in dollar sales and 7.8 percent in volume sales (Brewers Association, 2014). Key drivers of this growth include craft beer consumers drinking more as well as consumers switching from wine, spirits and other beer brands (Demeter Group, 2013). Propelled by consumer preferences for innovative beers with a variety of flavor and alcohol content options, the craft beer industry is projected to continue growing in coming years. Forecasted to reach $18.2 billion in 2017 (Mintel, 2012), the segment is expected to comprise nearly 15 percent of the beer industry by 2020 (Demeter Group, 2013). Despite this growth, the industry is currently facing several challenges, including high prices, growing competition and quality concerns. Craft beers are typically priced higher than the market average, so they cannot compete with less premium beers on price, which is a major concern of American beer drinkers (Mintel, 2012, Attitudes). Furthermore, as more craft brewers expand their offerings and big beer brands Launch Campaign, Spring 2014 5 try to strengthen their foothold in the craft market, options for consumers are growing at an exponential rate. This means that brewers must work harder to differentiate themselves in a maturing industry (Lapoint, 2012). Finally, though quality was once one of the key selling points for craft beer, the reliability of this claim is being threatened by beers that are not actually craft, but are piggybacking on the popularity of the segment by using “crafty” marketing messages. To overcome these challenges, it is suggested that craft breweries focus on maintaining quality, within a very specific niche and look to other channels for growth, such as retail channels outside of their own breweries (Mintel, 2012 & CNBC, 2013). Other key opportunities include supporting sustainability, through “grain to glass” movements or co-oping to produce hops locally, and capitalizing on local opportunities for community involvement, through participating in festivals, hosting events and donating to local causes (Boden, 2012). Texas Craft Breweries With an increasing number of craft breweries that are also increasing output, Texas is one of the top states driving growth of craft breweries (Demeter Group, 2013). In 2011, the state had 78 licensed small manufacturers of craft beer, a 50 percent increase from 2010; meanwhile, production increased 46 percent from 2010, reaching 133,000 barrels of beer in 2011. As a result of this increase, category sales reached $222 million. In Texas, the craft beer industry is characterized by variety, friendliness and job creation. On average, breweries sell 18.5 unique brands and enjoy experimenting with new flavors. They also value personal interaction with their customers and enjoy sharing their passion for brewing, with 88 percent conducting brewery tours. The industry has also created a significant economic impact through job creation. Of the 2,429 brewery jobs in Texas, craft brewers employed 1,244 (51.2 percent) and paid $24.5 million in total payroll (Texas Craft Brewers Guild, 2012). The industry also faces several key challenges, including a small presence in the Texas beer industry overall, ability to raise capital, and stringent legal regulations. Texas craft brewers represent an estimated 12.3 percent of craft beer and 0.7 percent of all beer consumed in Texas. Considering sales, employment and overall economic impact, the craft beer industry is valued at $608 million, only a small portion of the total beer industry, which is valued at $19.7 billion (The Beer Institute, 2010). Estimates show that, if Texas implemented a less restrictive regulatory environment, the Texas craft beer industry could grow to $5.6 billion statewide (Texas Craft Brewers Guild, 2012). With this relatively low revenue stream, raising capital is a continuous challenge for small and startup breweries (Lapoint, 2012). Legally, the Texas Alcoholic Beverage Code (TABC) also constricts the industry with strict access-to-market laws that many believe could hinder the long-term success of their breweries (Texas Craft Brewers Guild, 2012). Other legal factors such as water and waste regulation and energy laws, which are currently being debated, could be costly for craft brewers as well (Alexander, 2012). However, recent updates to the tax code favor small breweries and hold promise that the legal environment could be changing for the better (Schneider, 2013). Overall, the craft beer market in Texas is flourishing, despite slow growth in the beer category nationwide. Key challenges for Texas brewers include legal constraints, growing competition in a maturing market and establishing a memorable niche that suits consumer preferences. Launch Campaign, Spring 2014 6 III. Market The growing craft beer industry is significantly influenced by several market trends including product usage, buying power and consumer characteristics, such as demographics, geodemographics and psychographics. Product-Usage Consumers tend to view craft beer as a luxury and, as a result, drink it infrequently or on special occasions. According to a study by Mintel, only 17 percent of craft beer drinkers consume 10 or more beers per month, while 28 percent of respondents drink 5 to 9 beers per month. The remaining 55 percent drink less than five craft beers monthly. This trend applied consistently across age groups, with craft beer drinkers of all ages consuming an average of one craft beer per week (Mintel, 2012, Usage). However, individuals between the ages of 35 and 44 are more likely to look at craft beer as an “anytime beverage” and have no preference as to where or when they drink it. Meanwhile, older members of the Millennial generation are more seasoned beer drinkers, with more than half choosing craft beer on some occasion (Mintel, 2012, Usage). Younger Millennials represent an up-and-coming segment with room for growth, with 42 percent currently drinking craft beer (Mintel, 2012, Usage). No matter the occasion, craft beer consumers value the overall experience associated with drinking and tend to consume it in conjunction with other activities. The most popular complementary activity to craft beer consumption is eating, with restaurants being the most popular location for craft beer drinkers (Minel, 2012, Usage) and 80 percent stating their choice for an establishment is driven by its beer list’s breadth and variety (Murray, 2011). Offering a low-risk opportunity to try a single beverage (as opposed to a six-pack or larger volume), these venues represent a strong location for onsite promotion to induce trial. Furthermore, craft beer is becoming part of the dining experience, with 78 percent of craft beer consumers also like to know what sorts of foods pair best with their beer to enhance the overall dining experience (Mintel, 2012, Attitudes) and 72 percent of this demographic either increased their food and beverage spending or kept it the same since taking up craft beer drinking (Murray, 2011). Launch Campaign, Spring 2014 7 For craft beer drinkers who take brews on the go, packaging is a key concern. Though 77 percent of craft beer drinkers prefer to drink beer on tap than in a bottle (Mintel, 2012), recent numbers show that people are beginning to prefer artisanal brews packaged in aluminum cans. These aluminum cans stay colder during the summer and are most efficient for picnics (Ross, 2013). Buying Power Because of the high price of the product, craft beer drinkers tend to have higher than average purchasing power. Overall, more than 75 percent of craft beer drinkers earned at least $50,000 per year (Clarke, 2012). Specifically, individuals earning $100,000-$149,999 were the most frequent consumers of craft beer, with 57 percent consuming some sort of microbrew. The next most popular segment was consumers earning more than $150,000 (53 percent), followed by $75,000$99,999 (41 percent). From there, consumption gradually decreases at each subsequent income bracket, with only 19 percent of individuals in the lowest bracket (less than $25,000 a year) participating in craft beer consumption (Mintel, 2012, Usage). Craft beer brewers admit that reaching lower-income beer drinkers may pose quite a challenge for growth (Clarke, 2012). Higher income consumers that are more likely to consume craft beer prefer more expensive styles and, as a result, are more likely to buy into marketing that emphasizes “boutique styles, quality ingredients, and unique brewing processes” (Mintel, 2013). Millennials in particular offer a promising segment for advertising, as they have access to more disposable income and tend to be frequent and opinionated craft beer drinkers (Minel, 2012, Usage). It should be noted, however, that this segment is often unable to justify the quality of the beer by its high price point. This becomes the responsibility of the brewer to educate the consumer on why the higher price point is justified (Mintel, 2012, Attitudes). Consumer Characteristics: Demographics, Geodemographics & Psychographics Demographically, educated white males aged 25 to 44 are the most common segment of craft beer consumers. Consumers on the younger end of that spectrum (ages 25 to 34) are more likely to try new flavors as older beer drinkers tend to have set flavor and brewery preferences. Furthermore, younger consumers are increasing their consumption, with 36 percent claiming they are drinking more beer overall and an additional 36 percent drinking the same amount (Mintel, 2012, Usage). Gender also has a significant impact on consumption, with 53 percent of males in the 21 to 34 age range drinking craft beer, compared to only 27 percent of females. Females also drink fewer craft beers overall, consuming only one to nine monthly, while men average more than ten per month (Mintel, 2012, Usage). Finally, a majority of craft beer consumed in the United States in 2012 was consumed by white (non-Hispanic) consumers, and 43 percent of those consumers were collegeeducated (Clarke, 2012). With that being said, experts say that the Hispanic population may be the future of craft beer drinking, opting for a six-pack of craft beer per month. Furthermore, this population is very curious about different flavors considers price and selection of high importance (Mintel, 2012, Attitudes). Geographically, the Western United States dominates craft beer consumption, with a mean of 5.2 beers consumed monthly (Mintel, 2012, Usage), followed by the Northeast (4.6 per month), then the South (4.5 per month) and the Midwest (4.4 per month). Though the South is one of the Launch Campaign, Spring 2014 8 Craft Beer Drinker Demographics Age Ethnicity GENDER 21-24 = 42% 25-34 = 50% 35-44 = 43% 45-54 = 34% 55-64 = 26% 65+ = 22% White = 40% Black = 17% Asian - 40% Hispanic = 38% Other = 38% Males = 45% Females = 29% lowest regions for craft beer consumption, the trend of popular craft brewers opening locations in the South could increase consumption (Mintel, 2012, Usage). Within each region, craft beer is also consumed in different frequencies depending on location: suburban dwellers drink the most craft beer, with 41 percent claiming to indulge in these brews, followed by people living in urban areas (33 percent) and those in rural areas (29 percent) (Mintel, 2012, Usage). Because 4th Tap will be distributed initially in the Austin-metro area, the preferences of urban craft beer drinkers should be considered. When it comes to craft beer, their top priorities include organic ingredients, eco-friendly packaging and sustainable manufacturing; artisanal elements and gluten-free options are also important. In addition, some suburban dwellers are likely to frequent city pubs and breweries, so their key preferences of unique flavors and eyecatching packaging should be noted as well. There are several psychographic attributes that are fairly common to the craft beer market as a whole, including a desire for adventure, innovation and quality. Craft beer drinkers are largely adventurous and are willing and eager to try new things (Clarke, 2012). Their curiosity presents an opportunity for brewers to educate their consumers on the beer style, taste and complimentary food. Also, the younger demographics are becoming more curious each beer’s respective brewery: 42 percent of 21 to 34 year-olds are more likely to buy beer from a brewery they have visited and 26 percent of aged 35 and older have been influenced by a brewery tour (Mintel, 2012, Attitudes). Because of their curiosity and enthusiasm, craft beer drinkers desire variety, as is evidenced by the surge of seasonal and sample pack purchases. This desire for variety has even spilled over onto macrobrewers, as is exemplified by Anheuser Busch’s release of “Budweiser Black Crown (Clarke, 2012).” Finally, craft beer drinkers desire quality. In fact, 37 percent of Millennials agree that Anheuser-Busch InBev and MillerCoors are not even capable of producing a quality craft beer (Mintel, 2012, Attitudes), presenting an opportunity for smaller craft brewers to impress this audience. This penchant for quality is also reflected in their desire for a good taste and full-bodied flavor. Another psychographic quality that applies to most craft beer drinkers, especially the younger demographic, is tech savviness. Many brewers have used this as a mechanism for marketing their beer; for example, Heineken USA and Dos Equis have made clear social media efforts to access younger beer drinkers (Clarke, 2012 & Mintel, 2013). Furthermore, consumers aged 22 to 34 cite online sources as one of the top three influencers of their beer choices. Launch Campaign, Spring 2014 9 Product Usage Craft beer drinkers pursue this hobby with gusto and enjoy the excitement of trying new, unique flavors. They are willing to hunt for interesting brews and make an event out of the search: 55 percent of craft beer drinkers plan day trips around beer, and 37 percent plan vacations around the activity (Murray 2011). Though they tend to favor one go-to beer, such as an IPA, craft beer drinkers are willing to experiment. In the words of one focus group participant, “I’m not monogamous. When I go to the bar I want to try it all, but I have my failsafe.” Another claimed that it was “counter to the culture of craft beer” to stick to one brew. Despite this desire for variety, most craft beer drinkers are habitual in their consumption, choosing to treat themselves on a Friday evening or settle down with a brew at home after a long work day. Though these drinking preferences vary across consumers, one thing holds true across most craft beer drinkers: they know what they like and they like to talk about it. Drinking craft beer is also a social experience for many enthusiasts, who enjoy talking about different products and sharing opinions with “unenlightened” non craft beer drinkers. One focus group participant was so strong in her convictions, she said, “when people say they don’t like beer, they just haven’t found a beer they like.” Motivations to Purchase Exclusivity, experience and recommendations from trusted sources are key factors that impact a person’s motivation to try a craft beer; price and alcohol by volume (ABV) can also play a role, depending on the consumer. Limited time and seasonal brews are huge motivators for craft beer consumers, who do not want to miss out on an incredible taste opportunity (Beverage Industry, 2013). Many craft beer drinkers also have a collector’s mentality and view this as an opportunity to “catch ‘em all” (like Pokemon). In fact, this motivation is so strong that they will drop everything and change their plans to take part in the limited-time experiences; for example, focus group participants cited incidents where they responded immediately to breweries social media posts about a rare brew offering. Additionally, having craft beer associated with immersive experiences can motivate consumers to purchase, such as having it present at music festivals, sporting events or opening a brewery to tours (McCormick). Buzz around a brewery or its production process is more likely to sway men to purchase than women (Mintel, 2012). The third key motivator for purchase is recommendations from trusted sources, such as other craft beer enthusiasts or brewers themselves. These opinions can be obtained in person, while drinking, or in conversation elsewhere. Many consumers also turn to mobile applications, such as UnTappd or Beer Advocate, to find beer rankings and share their preference as well. This common ground also helps foster a spirit of community among drinkers. Another motivator that impacts certain consumers is price. Some drinkers associate their preferences with imbuing status, so a higher price point does not necessarily deter purchases, which was proved by thriving sales during the recession (Beverage Industry, 2013). With a higher price point, however, consumers see craft beer more like a treat, citing that it is too expensive to buy regularly (Beverage Industry, 2013). Meanwhile, many beer drinkers are moving away from craft beer based on value. Millennials are especially sensitive to perceived product value and 43 percent of craft beer consumers overall want to get the best Launch Campaign, Spring 2014 10 Millennial Consumption Habits 45% 40% 35% Drink craft beer any time (no particular event/activity) Are more likey to opt for a craft beer at a party Prefer to drink craft beer while hanging out with friends or family 25% 21% 18% Drink craft beer on vacation Prefer to drink craft beer during/after a fun activity Prefer to drink craft beer while attending a professional sporting event. “bang for their buck (Mintel, 2012, Attitudes).” Finally, Alcohol by Volume (ABV) is not a primary motivator for purchase for most consumers. In fact, only 14 percent of those craft beer drinkers polled by Mintel admitted that they believed the point of drinking was to get drunk (Mintel, 2012, Usage). Findings from primary research supported this opinion; for some, it was a secondary or tertiary concern, while others did not even consider it. Expectations of Craft Beer Overall, craft beer drinkers expect to consumer a quality product when they choose craft beer. They respect the artisanal process and scientific precision on the part of the brewer and expect to see that level of effort reflected in the beer’s taste. In fact taste lies at the forefront for craft beer drinkers more than drinkers of domestic and imported beer, with 74 percent of craft beer drinkers stating that full-bodied flavor is an important consideration when choosing beer (Mintel, 2012). They also expect to enjoy unique flavors and fresh ingredients, especially if it’s a local brewery. In addition, these locales tend to offer brewers who care more about 17% Are more likely to drink craft beer at a concert or performance making great beer than making a profit, which is important to these consumers. Part of the artistry is avoiding mass production, which some focus group members described as “selling out.” Psychographics of a Craft Beer Enthusiast Craft beer drinkers tend to be discerning, cutting edge, and loyal. These consumers recognize the finer things in life, taking time to select their beverage and considering the beer’s artisanal roots in the process. They believe this puts them a step above their parents who would settle for a Budweiser or Miller Light. Furthermore, studies show that consumers who enjoy craft beer may be open-minded; intellectually curious; have a lower sense of responsibility; have a happy-go-lucky attitude about life; be more likely to buy organic products; drive hybrid cars; and own MacBooks (Bulik, 2009). Furthermore, younger members of the craft beer drinking crowd have been described as “trendsetters who want variety (Ross, 2013). Finally, craft beer drinkers are loyal to their hobby. In the words of one focus group member, “you never met an ex-craft beer drinker.” Launch Campaign, Spring 2014 11 Primary Research Findings The agency conducted two forms of primary research: observations of craft beer consumers at local brewpub, Black Star Co-op, as well as a focus group. The observations were held on a Sunday afternoon and six interviews were also conducted with a handful of consumers who had been observed. Meanwhile, the focus group included 10 participants and lasted for approximately 1.5 hours. Key Research Insights Craft beer drinkers enjoy unique flavors and trying new things. They are willing to travel far and wide to try a new brew and even enjoy the quest that accompanies exploring new breweries. Many of them are also craft beer creators and dabble in brewing their own beer at home. This audience is passionate about the products and emphasizes quality over quantity. They are curious about the brewing process and respect that craft beer is intentional, artisanal and made with pride. Craft beer drinkers are even willing to accept the idiosyncrasies of the product, that come with anything that is hand-crafted, and even appreciate the imperfections Craft beer enthusiasts are interested in the social aspect of beer. They enjoy talking about it with other enthusiasts and spreading the word to “unenlightened” beer drinkers. This helps foster a sense of community among enthusiasts and brewers alike to create a brotherhood centered on craft beer. Everyone has their own taste preferences and drinking habits, but they know what they like. Though different consumers have different preferences based on taste, occasion and other factors, they are all opinionated about their choices. Launch Campaign, Spring 2014 12 V. Competition With the national craft beer industry set to grow to an estimated $18.2 billion by 2017, competitors within the market are constantly striving to find ways to differentiate themselves. Texas is one of the top states driving this growth, with an informal count by Craft Beer Austin citing 16 breweries and 15 brewpubs in the Austin area as of June 2013. Though the city is known for its collaborative craft beer culture, in which brewers are supportive of each other, there is still competition to consider in this crowded industry (LaPoint, 2012). Direct Competitor 4th Tap’s closest direct competitor is Rogness Brewing Company, a Pflugerville-based craft brewery recently launched in March 2012. Rogness Brewing Company specializes in creating small handcrafted batches of beer. With seven mainstays in bottles and on draught, and three draught beer only releases, the brewery produces an array of beer styles including imperial IPA, scotch ales, and spiced ambers. Rogness is currently being sold in Austin, Dallas, Fort Worth, Houston, San Antonio, and Waco. Owners Forrest and Diane Rogness have also stated that they take pride in producing underrepresented beers. They enjoy crafting seasonal and uncommon specialized beers with distinct names, including Gigantophis, Boomslang, and Rogtoberfest. Each beer has an anecdote listed on the company’s website regarding the ingredients used, what temperature it is best served at, and food pairings, some of which are amusing and humorous. Rogness has also been featured on the YouTube series “The Beer Diaries” and offers tours of their brewhouse. While it is unknown how much Rogness has made in revenue since their launch, they already have plans for expansion and are becoming well known in the Austin area. Their beers can be found in several Austin locations, including Craft Pride, Hopdoddy Burger Bar, and Black Sheep Lodge. Local and Regional Craft Breweries 4th Tap will will be entering a saturated market with local and regional craft breweries already in existence. Currently, there are sixteen craft breweries within the greater Austin metropolitan area, and additional breweries located in the Texas Hill Country. Several of these competitors include Austin Beerworks, (512) Brewing Company, Jester King, and Real Ale Brewing. All craft breweries in the Austin area are producing less than 10,000 barrels yearly. Launch Campaign, Spring 2014 13 The 4th Tap Advantage As the very first worker-owned cooperative craft brewery, 4th Tap offers a commitment to collaboration that will help them make relationships with other breweries. One such relationship has already yielded insights for the brewery by testing one flavor at Black Star Co-op. This allows 4th Tap to gain valuable knowledge about their potential consumers and how to best serve them before even having a license. Furthermore, the 4th Tap brewers commitment to craft and unique flavors sets them apart; they have likened themselves to bakers, in that they are passionate about the culinary aspect involved in brewing craft beer. While Austin has a competitive market for craft brewers, an open and positive culture exists between the breweries in the area. Like 4th Tap, these companies all started from humble beginnings and are striving to create something unique and distinctive for the Austin community. They are passionate about brewing and committed to the Austin community. Judging from the types of beer they create, it can also be inferred that they aren’t afraid of stepping outside of the box. However, competition does takes place over limited tap lines at on-premise retailers or shelf space designated for craft beer at offpremise retailers. Competition also plays a different role within the craft brewery market than it does in most other industries. Many brewers are actually quick to dismiss the term “competitor” for other local craft breweries. Breweries within the area are not rivals, or seeking to run each other out of business, but they recognize the benefit and importance of creating a strong brewing community. Furthermore, local brewers often rely on and give feedback to each other regarding expansion and business practices, providing a united front against other nationally-owned breweries threatening to steal market share. Becoming a part of this community will be crucial to 4th Tap’s success as a local brewery. Regionally-Distributed Craft Breweries More established, widely-distributed craft brands will also be competing with 4th Tap for market share. Examples of these brands include New Belgium, Sierra Nevada, and Brooklyn breweries. While they do not qualify as “Texas Craft,” these brands are quite popular, particularly with consumers who are new to craft beer. Competition with these breweries takes place at the tap lines on-premise, although there is a growing trend in Texas to favor Texasproduced beer over out-of-state brands. Offpremise retailers may have separate shelf space for local or Texas brands, but regional breweries are often placed in the same general area. “Faux-craft” Brands These brands are those created or purchased by the major beer producers (AB-InBev or MillerCoors) and are marketed as a “craft” brand. Examples include Blue Moon, Shock Top, ZiegenBock, and even Lone Star. They are typically designed to directly compete with a specific successful brewery or brand in a regional market. In order to compete, they attempt to closely follow consumer trends within the craft beer market, copying successful flavors and packaging styles and placing these products next to their analogues on shelves. Large beer brands such as MillerCoors create faux craft beers and “disguise” them as actual craft beers. For example, Blue Moon is owned by MillerCoors, but the company’s name is nowhere on the label. Some Launch Campaign, Spring 2014 14 believe this practice to be deceptive, as there is a certain respect associated with being a local craft brewer, especially when large companies have the ability to pour millions of dollars into distribution and marketing. Though the buyers for craft-focused on-premise retailers avoid these brands, off-premise retailers may include these brands with their mass-market parent brands or mix them in with the actual craft brands depending on their distributor relationships. Macrobreweries Owned partially or in full by AB-InBev or MillerCoors, macrobreweries are the mass market brands, often brewed with corn adjuncts, lower quality ingredients, and chemical additives. These brands typically have a lower alcohol-by-volume (ABV) and a more uniform flavor profile, although recently both companies have introduced higher ABV versions of their most popular brands in response to consumer demand. Examples of these competitors include Budweiser, Corona and Coors Light. Overall, these two breweries control most of the beer market, owning a combined 81 percent of the market for beer sales (Elzinga, 2011). These so called “Big Beer” breweries are making efforts to become more specialized, building on the popularity of the craft market (Demeter Group, 2013). On-premise retailers will often have draft lines dedicated to these brands, off-premise retailers will dedicate significant shelf space as these brands are often sold in cases of 12, 18, and 24 and are meant for mass consumption. The companies who own these breweries or their distribution arms will often offer incentives to retailers to favor their brands. Local Wineries According to a Demeter Group report (2013), the beer market is continuing to lose market share to wine and spirits (55% in 2010, 49% in 2011), but was expected to regain some share by 2012. Furthermore, the threat seems to apply more to “big beer” companies, as the craft beer market is continuing to grow despite the increasing popularity of wine (Mintel, 2012). That said, research has also shown that there is significant overlap in those who purchase craft beer and those who purchase wine, especially among Millennials (Mintel, 2012). Furthermore, the Texas Hill country is a recognized wine region and hosts more than 30 wineries. Off-premise retailers have separate shelving for wine, but it is typically located adjacent to the beer section. Finally, limited on-premise competition with these wine makers might occur at restaurants. Launch Campaign, Spring 2014 15 VI. Products Overall Brand Image Since 4th Tap Brewing Co-op has yet to launch their product into the market, brand awareness is limited. The company has already created a logo, and uses it across platforms, including social media channels and a website, http://4thtap. coop; however, the founders have the opportunity to position the brand as a creator of unique flavors with an innovative business model. Products Though 4th Tap has yet to begin distributing beers, they have already established 3 main products that are in the works, including a pale ale, gluten free beer and IPA. Throughout all of these beers, the brewers plan to use nontraditional ingredients: the pale ale is going to be made with Belgian spices to have a hoppy and malty taste; the gluten free beer will include only local ingredients, such as Texas sweet greens, setting it apart from most brews that include some ingredients from the East or West coasts; finally, the IPA will use a Hefeweizen yeast and have banana and grapefruit flavors. The fourth product on tap will be a rotational flavor, which will be the most experimental and unique of the brews. One example of this is a recent brew that included cardamon pods; however, the founders said it tasted like “an antique store” and it will not be taken to market. However, Another rotational flavor currently is the Neapolitan Porter which includes a vanilla, chocolate and strawberry flavors. Finally, 4th Tap Brewing Co-op also plans to be one of the first craft breweries to have their own in-house quality assurance and yeast management lab. They want to cultivate their own yeast lines in order to continue making unique craft brews. Future plans also entail checking quality of other brews as well. Awareness, trial and usage level Since 4th Tap is unable to distribute and sell their products, it is difficult to have an accurate assessment of the trial and usage level. However, 4th Tap Brewing Co-Op was able to run a two week trial of one of their beers by having Black Star CoOp brew their product. Though specific data was unavailable, Black Star brewers claim that it is was a best seller during the trial period and seemed to exceed consumer expectations. A second flavor test at Black Star is in the works for a later date. Launch Campaign, Spring 2014 16 S.W.O.T. STRENGTHS ● Cannot distribute beer until obtaining a TABC license ● Limited product testing and brand awareness ● Lack of funding to purchase necessary equipment ● Speculative timeline for launch OPPORTUNITIES • Growing competition in a maturing market, especially in Central Texas • Stringent legal regulations of TABC that could delay the issuing of a license • Less premium beers from other companies that can compete on price • Consumer consumption of craft beer infrequently or on special occasions • Reduced consumption due to health concerns WEAKNESSES ● First worker-owned and cooperatively governed production brewery in the U.S. ● Artisanal vision that aligns with consumer perceptions of craft beer as well as their preference for unique flavors and adventure ● Quality product brewed with creativity and precision ● Strong vision for future growth THREATS • Build on past and projected future growth of the craft beer industry overall, which is expected to reach $18.2 million in 2017 (Mintel, 2012) • Build relationships with local brewers to become part of the community • Leverage on-site quality-control lab to become a Central Texas hub for quality testing • Take advantage of increased discretionary income of Americans that is materializing as a result of recession recovery • Target Millennials who have high disposable income and growing purchasing power • Create a beer drinking experience favored by consumers including food, atmosphere and friends • Engage new media to reach younger, tech savvy audiences Launch Campaign, Spring 2014 17 BRAND Positioning Strategy As a new entrant to a crowded market, 4th Tap needs to seek a unique position that will differentiate it from other craft brewers in town (Demeter Group, 2013). Building on the company’s core values of artistry, craftsmanship and creativity, 4th Tap will occupy a new space in the market dedicated to adventure and new experiences. Objectives 1. Increasing 4th Tap brand awareness during the launch campaign 2. Increasing brand recognition during the launch campaign Launch Campaign, Spring 2014 19 EXECUTION Building A Brand House Positioning Statement A brand house concisely outlines the philosophical underpinnings of a brand. It defines the brand at different levels of understanding so that the brand remains consistent over the long-term. The one-word approach is meant to better target messaging by having a core vocabulary, so all statements made about a brand have a baseline by which to be judged for usability across messaging channels. Each level builds upon the previous one while the bedrock and foundation sets the overall tone for the brand. The pillars represent the brand’s inner desires upon which the principles rest. The principles lie closer to what a consumer of the brand sees and experiences. The consumer seeks the brand because of the essence provided by the experience. All of the levels of the brand house combine to deliver on the mission. 4th tap is built atop a solid co-op structure with a foundational belief in unique beer. The pillars of scientific rigor, craftsmanship and artistic vision make 4th Tap’s brews particularly special. Infused with creativity and attention on quality control, each beer tastes authentic with an essence of an adventurous maven because curiosity is always in season at 4th Tap. Nothing can be truly duplicated. No today is the same as yesterday. No breath of air you breathe is the same as the last. But that’s okay, right? Are two things ever supposed to be the same? Don’t identical twins have different fingerprints? Is lightening supposed to strike in the same place twice? No. Rarity makes things special. Makes things unique. Makes things wanted. What if rarity was your forte – your strong suit? What if your strength with rarity made you a rarity? Welcome to 4th Tap. To us, beer is a fusion of science and art – to be perceived by all 5 of the human senses. Our goal is to pack the Enlightenment Era into your pint glass. Brewed to perfection by exchemists, who are wizards of the elements, craft beer that is worthy of kings. Ladies and gentlemen, there is alchemy in that keg. Why not put your trust in someone who knows how to leverage ingredients to make every single sip you take a memorable experience? And remember it well. What you see on tap today may be replaced tomorrow. We are never boring. Sometimes surprising. Always in season. TAG Always In season Launch Campaign, Spring 2014 20 4TH TAP BRAND HOUSE TARGET MARKET Strategy To successfully penetrate the craft beer market, 4th Tap needs to hone in a specific target market that will be most responsive to their product. Specifically, they should target educated white males ages 25 to 34 who are just beginning their journeys as craft beer enthusiasts. Launch Campaign, Spring 2014 23 Description of Target Market Demographics Educated white males ages 25 to 44 are the most common segment of craft beer consumers. Consumers on the younger end of that spectrum (ages 25 to 34) are more likely to try new flavors as older beer drinkers tend to have set flavor and brewery preferences. Furthermore, younger consumers are increasing their consumption, with 36 percent claiming they are drinking more beer overall and an additional 36 percent drinking the same amount (Mintel, 2012, Usage). Gender also has a significant impact on consumption, with 53 percent of males in the 21 to 34 age range drinking craft beer, compared to only 27 percent of females. Females also drink fewer craft beers overall, consuming only one to nine monthly, while men average more than ten per month (Mintel, 2012, Usage). Finally, a majority of craft beer consumed in the United States in 2012 was consumed by white (nonHispanic) consumers, and 43 percent of those consumers were college-educated (Clarke, 2012). Psychographics Craft beer drinkers tend to be discerning, cutting edge, and loyal. These consumers recognize the finer things in life, taking time to select their beverage and consider the beer’s artisanal roots in the process. They believe this puts them a step above their parents who would settle for a Budweiser or Miller Light. Furthermore, studies show that consumers who enjoy craft beer may be open-minded, intellectually curious, have a lower sense of responsibility, as well as a happy-go-lucky attitude about life (Bulik, 2009). They tend to support local businesses, increasing the likelihood that they would contribute to an Austin-based co-op like 4th Tap. Furthermore, younger members of the craft beer drinking crowd have been described as “trendsetters who want variety (Ross, 2013).” Finally, craft beer drinkers are loyal to their hobby. In the words of one focus group member, “you never met an ex-craft beer drinker.” Market Size Accounting for 24.5 percent of the total U.S. population in 2014, “Millennials” include consumers aged 20 to 37. There are currently 78.3 members of this segment, making it larger than the Baby Boomer generation, which includes 75.3 million. Furthermore, this segment is projected to grow at the fastest rate among all generations, reaching 80 million members by 2019 (Mintel, 2014, Market). This population also has a strong presence in the city of Austin, where 4th Tap will make its debut. The younger niche of consumers aged 25-34 includes 163,686 people and accounts for 20.7 percent of the total population (United States Census Bureau, 2012). Males represent approximately 52.2 percent of this market, including 85,466 individuals. Launch Campaign, Spring 2014 24 educated craft beer enthusiast “‘Any beer will do’ doesn’t cut it for me.” GOALS • Become more educated about the local craft beer scene Heath 28 years old Engineer Austin, TX Married, no children • Wants to brew his own beer someday • Enjoy quality products MOTIVATIONS • Enjoy spreading the word to “unenlightened” beer drinkers • Feel engaged while experiencing the consumption of craft beer Personal Life Reading • Supporting local business Attending cultural events (theatre, opera, etc.) Traveling Entertaining out-of-town guests Mobile Devices & Platforms • Hunt for special brews is thrilling • Social group • Family • Books/magazine articles • Social Media iOS iPhone DRIVERS Influences iPad Expertise Level Online Information Seeking Using Mobile Devices Computers & Software • Looking for a fun weekend activity • Intellectual stimulation NEEDS • Obsessive collector - needs to discover new interesting beers • Get updates about new breweries in an unobtrusive way launch campaign Strategy As 4th Tap’s debut into the Austin craft beer scene, the launch campaign should seek to build awareness of the new brand and motivate trial of the company’s novel products. It should cater to the craft beer drinker’s penchant for experimentation, novelty and adventure. Objectives 1. Gaining recognition among industry experts who will build buzz around the brand 2. Launching the product through an exciting event to introduce 4th Tap to the craft beer scene 3. Founding the craft beer club to promote long-term loyalty among a tight-knit group of consumers Launch Campaign, Spring 2014 27 EXECUTION - Pre-launch buzz Building a brand begins long before launch day when products hit the shelves. In a crowded competitive environment, it is important to establish oneself as a key player so that consumers can anticipate your new product. To build this pre-campaign buzz, 4th Tap will reach out to experts in the craft beer field and begin building relationships with them. Millennials particularly value content from experts, with the latest findings from Nielsen indicating that content about brands from experts increased familiarity, affinity and purchase intent more than any other content type, including user reviews and branded content (Nielsen, 2014). Outreach efforts to these bloggers should seek to long-term build relationships, starting with an introduction and hopefully resulting in coverage of the brand through a product review or attending the launch event. There are several key segments of bloggers for 4th Tap to contact before they launch: 1. Austin Craft Beer bloggers who show a real passion for local craft brews and provide the most targeted access to a specific audience 2. Austin Food and Wine bloggers who provide a more general focus on the city’s cuisine and culture who can spread the word to a broader audience 3. National Craft Beer bloggers who can build respect on a much larger scale among the U.S. craft beer community In addition to reaching out to blogging experts, 4th Tap should start building credibility among local brewers before the campaign begins. Because the Austin craft beer community is known for its collaboration, joining this coalition of local brewers is essential for success. Their assistance would be beneficial not only in raising awareness but to be recognized as a successful brewery in the market. Furthermore, they are all potential distribution locations for 4th Tap once the product launches. Specifically, we suggest contacting the following breweries about partnership opportunities. ● ● Blackstar ● Jester King ● Austin Beerworks ● (512) Brewing Company ● Hops and Grain Brewery ● Austin Beerworks ● Live Oak Brewing Company ● Draught House Pub & Brewery ● Independence Brewing Co. ● Thirsty Planet Brewing Company ● Austin Beer Garden Brewing Co. ● Whip in ● Circle Brewing Company ● Resignation Brewing ● Infamous Brewing Company ● South Austin Brewing Co. ● Naughty Brewing Co. Launch Campaign, Spring 2014 28 Example blogs and specific contacts for each segment are listed below: Austin Craft Beer Contact Description URL Blog Name [email protected] Blog and podcasts by local craft beer lovers who review new and exciting flavors. http://www.thebeerists.com/ The Beerists Matt Abendschein, youstayhoppyaustin@ gmail.com One enthusiast’s blog about craft beer in Austin who features “Austin Beer Events” and “Austin Area Breweries.” http://www.youstayhoppyaustin.com/ You Stay Hoppy Austin Craft beer blog for women that announchttp://bitchbeer.org/ Bitch Beer es new brews, events and happenings in ATX. Also feature “12 Brews of Christmas.” *NOTE: Because 4th Tap has already been featured on this blog, they most likely have a direct person of contact. [email protected]* Austin Food & Drink Contact Description URL Blog Name Matt, [email protected] Wine, spirit and beer reviews from a culinary perspective. Often features new alchohol options in Central Texas. http://whatareyoudrinking.net/ What are you drinking? Contact Form, http://austinot.com/contact-the-austinot Covers new business openings in Austin with a specific “Drinks” section that details new bar and beer releases. http://austinot. com/category/austin-texas-food/austin-drink-reviews The Austinnot Kay Marley-Dilworth, kay. [email protected] Announces openings and events at various restaurants around town to support local businesses. Features a few specific posts about beer. http://www.atxfoodnews.com/ ATX Food Reviews Submit a “tip” about a cool place to eat or drink, [email protected] Food, drink, and trending places around Austin http://austin.eater. com/ Eater Austin National Craft Beer Contact Description URL Blog Name Meghan Story, meghan@ brewersassociation.org Website dedicated to “celebrating the best of American beer” and telling stories from the world of beer. Features 2 blogs: Brewers Banter (brewer-to-brewer advice) and Craft Beer Muses (general inspiration for craft beer drinkers). http://www.craftbeer. com/ Craft Beer General contact, info@ americancraftbeer.com, Give a “tip” at [email protected] Features new beers to look out for as “newbies” all across the nation. http://americancraftbeer.com/ American Craft Beer Post on the forum, http://www.beeradvocate. com/community/findnew/29507736/posts Reviews for many different beers, using a forum. Also features an events calendar and list of Breweries by city. Brewers can register and manually add themselves. http://www.beeradvocate.com/ Beer Advocate Launch Campaign, Spring 2014 29 Exberience membership merchandise will complement the BeerQuest to boost engagement. EXECUTION - launch event The objective of the launch campaign is twofold: (1) to get the 4th Tap brand in front of as many eyes as possible and (2) to spark the curiosity that, based on primary data, seems to drive many craft beer consumers to consume new product. No doubt, craft beer consumers have found beers that they enjoy more than others. They could continually visit the same brewery, but what ties many craft beer enthusiasts together is that drive for something more – something different. 4th Tap will foster this adventurous sentiment through the 4th Tap BeerQuest. The 4th Tap BeerQuest is going to encourage craft beer connoisseurs around the city of Austin to visit various pubs and microbreweries to get their hands on coveted, rare 4th Tap brews. The one day event will occur at 4 or 5 pubs around the vicinity of Rainey Street (to avoid drinking and driving), each of which will carry a different 4th Tap beer. For consumers, the end goal is to pub crawl to each location to try a new 4th Tap beer. These four or five unique brews will fall into the category of 4th Tap’s rare beers (i.e., they will not be one of 4th Tap’s three staple beers). This event will be positioned as a chance to try extremely rare craft beers that may not be back on the market again anytime soon. In order to further push the curious and somewhat “competitive” drive to get craft beer drinkers to try these rare beers, 4th Tap will also use the BeerQuest to launch its Beeriodic Table. The Beeriodic table will allow 4th Tap drinkers to record which brews they have acquired. The table will also build hype on up-and-coming 4th Tap beer offerings. This Beeriodic Table will work through the company’s website, allowing drinkers to log in and record beers on their personal Beeriodic Table. Through this interface, they can track which brews they’ve tried before and continue “collecting” new ones for their repertoire. Furthermore, users will be able to share their Tables via social media, working as brand ambassadors for 4th Tap. Launch Campaign, Spring 2014 30 Branded growler in glass with logo. To spread awareness even further, those who “collect” the most beers during the launch could also win various prizes, such as a 4th Tap branded kloozy or coaster. Social media can be also used to incentivize people to promote the brand by tweeting about the BeerQuest and Beeriodic Table using the hashtag #AlwaysInSeason for the chance to win 4th Tap branded merchandize (i.e. t-shirt, koozies, growler, etc). It is also recommended that 4th Tap use social media channels to promote the event before it occurs. The BeerQuest should be at the forefront of 4th Tap’s social media messaging, and the company should also seek promotion among other breweries, especially those hosting the event. Additional promotional materials could also be distributed among pubs and breweries around the city weeks before the event, further building hype. Finally, during the BeerQuest Company branded merchandise will serve useful during the launch and into the future such as koozies, coasters and credit-card bottle openers. event, 4th Tap can have beer representatives at each of the featured breweries, encouraging people to buy into its “beer club.” Though the Beeriodic Table will only house a handful of beers on its debut during the BeerQuest, it can remain a promotional tool throughout the years as new beers are added. We encourage 4th Tap to potentially turn this launch event into an annual or biannual event to keep the 4th Tap brand at the forefront of people’s minds and to appease craft beer fanatics’ hunger for something new. This would also keep the Beeriodic Table activity fresh on the minds of 4th Tap fans and renew their drive to fill it. Additionally, we recommend tying the Beeriodic Table into 4th Tap’s packaging when the time comes for the company to bottle its own beer (see Additional Recommendations section for more information). Launch Campaign, Spring 2014 31 “XBeerience” Craft Beer Club In addition to launching the 4th Tap brand with the aforementioned BeerQuest, it also proposed that the brand develop a customer loyalty program in the form of a beer club. Titled “The Xbeerience,” the beer club will be introduced simultaneously along with the BeerQuest. Because consumers will already be intrigued by the mystique of the BeerQuest and aware of the 4th Tap brand, this would be the optimal time to also pique their interest regarding the beer club. Long-term, the beer club would serve not only as a CRM (Customer Relations Management) tool and loyalty program, but also as a tool to create a community amongst members, facilitating the sharing of like attitudes, lifestyles and tastes toward craft beer, specifically of the 4th Tap brand. In order to gain membership initially, prospective members will be required to purchase a 4th Tap branded beer growler during the BeerQuest. Upon doing so, members would be given an Xbeerience membership card, along with various other branded merchandise including koozies and b ottle openers. Membership cards would include important information regarding how to register on the 4th Tap website, membership perks as well as places members could get discounted 4th Tap beer on occasion. By joining The Xbeerience, members will enjoy several perks. First, 4th Tap will release a quarterly eNewsletter via email to update members on the brand’s progress and sharing interesting tidbits about 4th Tap’s brewing process and upcoming events. The brand could also show behind-the-scenes footage of brewery happenings and include interviews with the 4th Tap founders. Additionally, members will receive exclusive emails regarding new product launches, offering them the “first taste” of special brews and giving them the opportunity to be the first to purchase these beers before they are released. Finally, members will have the option to opt-in to receive Xbeerience text message alerts. These alerts would be sent randomly and will pertain to exclusive discounts, time sensitive “one-time only” product offering alerts and humorous uplifting “craft beer” quotes. In an effort to build rapport with beer club members and invite them to participate in the 4th Tap experience, 4th Tap will create an inviteonly Xbeerience group on Facebook. Members will be able to converse with each other, start dialogue about the brand, and most importantly have the opportunity to speak directly with the 4th Tap founders/brewers. Members can share their views on what types of beer they like most and perhaps even offer suggestions for future products. The Facebook group would ultimately serve as a social hub for members, guaranteeing many consumer engagement opportunities for the brand. 4th tap can also have Q&A sessions within the group and post updates, photos, infographics and interesting details regarding their brewing process. The goal of the Facebook group is to encourage club members to form a tangible relationship with the brand and others that enjoy it. The 4th Tap brand will benefit from the insights gained from the beer club, and this can be used to expand the product offerings. Once the 4th Tap brand has accumulated a large enough following that the club membership be divided into tiers, potentially members can pay a fee to have more access to brand offerings and exclusive communications. Launch Campaign, Spring 2014 32 Landing depicted with scrollable hero image. EXECUTION - Website Strategy Serving as the online hub of 4th Tap’s brand, the website will provide a source for information, a forum for community interaction as well as a touchpoint to reach consumers on the go. Objectives 1. Providing an online hub for 4th Tap’s brand 2. Informing consumers about 4th Tap’s products and locations 3. Offering a channel for communication between 4th Tap and consumers Because Millennials spend an average of 4 days per month online (Bednarski, 2014), the online space is an essential place to connect with this audience. Currently, the 4th Tap website consists of a single splash page that announces that the brewery will be opening soon and invites users to check out the company’s various social profiles. It is essential that the company build out this online space before launching products as a second touchpoint for today’s digital consumers. Furthermore, 81 percent of Millennials have smartphones and 18 percent use only mobile technology (no desktop), making a responsive design that suits all screen sizes imperative (Lella, 2014). Launch Campaign, Spring 2014 33 Overview The site should serve both to inform consumers about 4th Tap's offerings and to extend the brand into the online space. Following the visual branding of other elements, it should be sleek, simple and modern in design. To inform consumers about 4th Tap, it will have one main page with five key sections: The "About" section of the 4th Tap page will briefly detail the story of the brewery, including their foundation, brewing philosophy and key values. We suggest that it house two subpages (not shown): "Meet the Brewers" where each member of the coop will be introduced with a picture and links to their social profile; "Cooperate" which will discuss their cooperative model with regards to its novelty and how it works The "Brews" section will display all of the beers 4th Tap makes. Current beers should be featured most prominently, but previous brews can also live in this section. This would also be a good place to describe the labeling system. Real-life photographs should be used to depict the beers instead of the illustrated examples provided. "Locations" will show viewers where they can find 4th Tap around Austin. During the launch, this would be an ideal page for users to download the map. "Contact" will include a contact form for anyone who wants to get in touch with 4th Tap. A phone number and/or email address for the brewery can be included below for more information. Finally, two additional features will be seen on the homepage: a "join the beer club" message and 4th Tap's social media handles. Also, the site has been mocked up to keep responsive design in mind. Launch Campaign, Spring 2014 34 4TH TAP Website The about section will have a prominent place for images of co-op members. Using parallax scrolling, the background photo will have a delayed scroll as a user moves down the page. The “Brews” and “Find Locations” sections will be crucial for craft beer drinkers and their ceaseless hunts for information on a company’s options and availability. Launch Campaign, Spring 2014 35 Launch Campaign, Spring 2014 36 evaluation Launch Campaign, Spring 2014 37 Budget Considering 4th Tap’s objectives of delegating $5,500 for advertising and $15,500 for marketing during 2014-2015, the budget for the determined spend for this launch campaign was $7,000. Our executions come in just under budget at $6,980.01. The primary focus of this spend is on building out 4th Tap’s website to establish this crucial online presence in greater detail. Various “swag” items for the launch event, including custom growlers, t-shirts, koozies and coasters make up the next chunk of spend. Miscellaneous items, including a contingency for unexpected expenses such as a higher website bid or blogger compensation as well as agency compensation. Item Cost 4th Tap Website $3,500.00 Description Quote for responsive design from Manos Crafted 6 months of an entrepreneur account, which allows up to 2,000 subscribers at $10/month 2000 recycled matte double-sided full color postcards from VistaPrint.com 102 64 oz. 1/2 gallon clear growler (delivered in cases of 6) from eGrandStand.com MailChimp Subscription $60.00 Promotional Postcards $134.47 Custom Growlers $321.30 T-Shirts $988.00 100 custom 3-color organic t-shirts from CustomInk.com Koozies $230.00 Coasters $500.00 Bottle Openers $225.00 XBeerience Member Cards $21.24 300 customized collapsible koozies (including $35 setup fee) from ExpressIMPrint.com 100 custom square cork coasters (sold in packs of 4) from Zazzle.com 100 texture Kolorcoat dog tag openers from LogoBarProducts.com 250 recycled matte double-sided full color premium business cards from VistaPrint.com Contingency $500.00 Flexibility for spending as the campaign unfolds Agency Compensation $500.00 Fee for our services Total $6980.01 DIGITAL 51% SWAG 34.7% OTHER 14.3% Launch Campaign, Spring 2014 38 Flowchart The 4th Tap launch campaign represents the beginning of a long-term branding strategy supported primarily by continuous media strategies. It should also be noted that the timing on the launch is flexible, pending capital and legal resources. October NovemberDecemberJanuary Blogger Outreach February March 5,000 impressions 10,000 impressions Beer Quest 500 Beeriodic Table 150 150 Impressions XBeerience Beer Club 50 50 impressions 500 5,000 impressions 4th Tap Website 250 impressions Launch Campaign, Spring 2014 39 Measuring Success To measure the success of the campaign, we recommend a set of metrics corresponding with the objectives of each section. It should be noted that these are preliminary Key Performance Indicators (KPIs) that could change depending on the trajectory of the company’s growth. Brand Positioning Objectives: • Increasing 4th Tap brand awareness by 20 percent during the launch campaign • Increasing brand recognition by 15 percent during the launch campaign • Increasing brand recall by 10 percent during the launch campaign To measure these objectives, it is recommended that 4th Tap conduct a pretest survey of brand awareness, recognition and recall. This will provide a baseline for the results that will be collected again after the launch campaign. Website Objectives: • Providing an online hub for 4th Tap’s brand • Informing consumers about 4th Tap’s products and locations • Offering a channel for communication between 4th Tap and consumers To measure the success of these objectives, we recommend the following metrics: • 500 unique visitors during the launch campaign and 2000 during the first quarter of operations • At least 2 pageviews per visit for 80% of visitors • 10 contact forms submitted during the launch campaign and 50 during the first quarter of operations • 50 clicks to social media profiles during the launch campaign and 200 during the first quarter of operations 20 XBeerience beer club sign-ups through the website. Launch Campaign, Spring 2014 40 Launch Campaign Objectives: • Gaining recognition among industry experts who will build buzz around the brand • Launching the product through an exciting event to introduce 4th Tap to the craft beer scene at local breweries • Founding the craft beer club to promote long-term loyalty among a tight-knit group of consumers To measure these objectives, we recommend the following metrics: Brand Buzz • 5 bloggers who cover the event before the launch • 200 social media mentions during the launch campaign, including Instagram entries for the Beeriodic table and posts to get prizes • 100 social media followers gained across 4th Tap’s various accounts during the campaign Launch Campaign • 5 local breweries who agree to participate in the BeerQuest • 150 logged in the Beeriodic Table during the launch event • Approximately 500 attendees to the BeerQuest (assuming 5 bars participate, this would include 100 unique attendees per bar) • Number of each beer sold during the launch campaign (to measure popularity of each flavor and/or location) • 15% ROI from beers sold (considering cost of products and promotion against sales revenue) Beer Club • 50 XBeerience members gained during the launch event Launch Campaign, Spring 2014 41 additional recommendations Launch Campaign, Spring 2014 42 Plain aluminum cans add to the modern aesthetic of 4th Tap, with the sticker-like elements making the contrast more appealing. Packaging Keeping an eye on the future, 4th Tap will need to be available in additional vessels besides the tap. When this time comes, it is our recommendation that they extend the brand’s packaging into modern, aluminium cans. Canning allows for a superior product because it completely removes air, which improves taste and prevents “skunking” as it completely blocks out light (Tierney, 2013). It also allows for improved distribution among both suppliers, such as grocery stores, and consumers, who have more freedom to take cans everywhere. Finally, they are more environmentally friendly, requiring only 5 percent of the energy to recycle that it does to make a new can (Tierney, 2013). The preferred process for this canning beer in the industry is the CASK method using a manual canning system. Putting this system into place will require an investment into capital, including a 2 head filler and a Seamer, which will cost around $13,352 (CASK Info, 2014). Cans will also need to be purchased separately, which run approximately $0.15 per can when purchased in bulk (3,501+ cans) (Cask Info, 2014). We recommend using plain silver aluminum cans that will allow the company to showcase its personality through individual stickers that can be added specially to each can. Stickers offer a low-cost option to label 4th Tap’s cans that are well-suited to the company’s seasonal nature. They can also help advertise, build brand identity, support promotions, influence prospects, and increase sales. Furthermore, they can serve as a fun way to deliver product information, such as foods that would pair well with certain brews (Nicholson, N.D.). Finally, these stickers will appeal to the “collector” mentality of most craft beer drinkers, as they can easily be removed and kept to remember the experience. A quote from Moo Printing estimated the cost of 520 stickers to be $131.20 with an 8 day turnaround. Launch Campaign, Spring 2014 43 Content of the stickers will vary according to the specific brew; however, our vision includes one main labeling sticker that has the brand name and specific beer type. Other stickers can provide more insight into the product, describing product attributes or foods it will pair well with. They can also play a role in campaigns, such as the “Beeriodic Table” displaying elements or other relevant images. Mobile Applications Profiles Craft beer drinkers are connected and enjoy getting recommendations from others. When they are on the go, they turn to several popular craft beer rating apps to get feedback on new beers they are considering. 4th Tap should register with the apps as a brewer to ensure that all feedback about their brand is unified under that profile. Specifically, we recommend creating profiles on the following mobile applications: Craft Beer Fundraising To aide in 4th Tap’s fundraising efforts, we recommend investigating CraftFund (http:// www.craftfund.com/), which is a site similar to Kickstarter dedicated exclusively to craft beer companies. The site currently features 809 investors who are passionate about craft brewing and seeking to help fund new ventures in the space. With its seasonal approach to brews, 4th Tap has an interesting angle to gain traction with this curious audience. It should be noted; however, that the company differs from Kickstarter in that investors will actually gain equity in the final company, as opposed to just making donations. Untappd: users review beers and share them with friends and/or people nearby. 4th Tap can both register as a brewery or request a badge for a specific beer event (such as attending the Beer Quest). Tap Hunter: features beers, events, and other pertinent information for craft beer drinkers. They also have a blog that is directed at brewers and offer aid placements for breweries within the application. Pintley: offers beer reviews nationwide and features a blog targeting beer enthusiasts as well. Launch Campaign, Spring 2014 44 Conclusion For the 4th Tap Brewing Co-op, there has never been a better time to enter into the Austin craft beer market for a number of reasons. Craft beer is rising in popularity, and state legislation surrounding the production of beer is steadily growing less stringent. In light of craft beer drinkers’ unquenchable curiosity for new tastes, the nature of 4th Tap’s drive for rare, unique beers will no doubt find its place in the craft beer industry. Also, the growing Millennial population of Austin, Texas is ever-expanding, and the benevolent nature of most brewpubs and microbreweries in the Austin area creates the ideal environment for a new and upcoming brewery to prosper. Even considering the brewery’s limited resources, 4th Tap can take certain steps upon launching to secure its name as a trusted brand among craft beer enthusiasts in Central Texas. Our suggestions are not based on our personal beliefs, but on primary and secondary research we have conducted in the past ten weeks. These measures include holding promotional events, utilizing and integrating various social media channels and reaching out to other local brewers and publications to raise awareness about 4th Tap’s offerings and build its brand equity. We believe that engaging in these activities will ensure a successful launch and will hopefully pave the way for future success. We look forward to working with you. Cheers! Launch Campaign, Spring 2014 45 Works Cited Studies. Retrieved from http://www.alliedacademies. Alexander, K. (2012). Sustainable Craft Brewing: org/public/proceedings/Proceedings28/IACS%20 The Legal Challenges. Triple Pundit. Re trieved from http://www.triplepundit.com/2012/06/ Proceedings%20Spring%202011.pdf legal-issues-in-beer-brewing/ Hewitt, T (1987). A Biblical Perspective on the Use and Bednarski, P. J. (2014). Just How Much Do Millennials Abuse of Alcohol and Other Drugs. North Carolina Drive the Online Engine? MediaPost VidBlog. Retrived Department of Human Resources. Retrieved from http:// from http://www.mediapost.com/publications/ texasbaptists.org/clc/substance-abuse/pathways-toarticle/219534/just-how-much-do-millennials-drive- prevention-learning-activities/a-biblical-perspectiveon-the-use-and-abuse-of-alcohol-and-other-drugs/ the-online-engi.html Brewers Association. (2014). Brewers Association Announces 2013 Craft Brewer Growth. Retrieved from http://www.brewersassociation.org/pages/media/ press-releases/show?title=brewers-associationannounces-2013-craft-brewer-growth Lapoint, K. (2012). Microbrewing in the US: An overview of the microbrewery industry and a business plan for future success (Honors Thesis). Paper 9. Retrieved from University of New Hampshire Scholars’ Repository. http://scholars.unh.edu/cgi/viewcontent. cgi?article=1008&context=honors Brewers Association. (2014) Craft Brewer Defined. Retrieved from http://www.brewersassociation.org/ Lella, A. (2014). Why Are Millennials So Mobile? ComScore pages/business-tools/craft-brewing-statistics/craft- Insights Blog. Retrieved from http://www.comscore. com/Insights/Blog/Why_Are_Millennials_So_Mobile brewer-defined Boden, M. (2012). Achieving Sustainability In The Craft Mintel. (2012). Craft beer - US - November 20s. In Mintel. Brewing Industry. Environmental Studies Undergraduate Retrieved from http://academic.mintel.com.ezproxy.lib. Student Theses. Paper 89. Retrieved from http:// utexas.edu/display/ 644721/ digitalcommons.unl.edu/envstudtheses/89 Mintel. (2013). Beer - US - December 2013. Attributes Clarke, J. (2012). Who is the new beer consumer?. Influencing Beer and/or Malt Liquor Choices. In Mintel. Retrieved from http://www.beveragemedia.com/index. Retrieved from http://academic.mintel.com.ezproxy.lib. php/2012/05/who-is-the-new-beer-consumer-brewers- utexas.edu/display/ 644721/ ready-to-say-ihola-and-more-to-expand-reach/ Mintel. (2014). Marketing to Millennials - US - February Demeter Group Investment Bank (2013). State of the 2014. Market. In Mintel. Retrieved from http://academic. Craft Beer Industry [REPORT]. Retrieved from http:// mintel.com.ezproxy.lib.utexas.edu/display/695047/ www.demetergroup.net/docs/perspective/Craft_Beer. Nielsen (2014). Nielsen: Consumers crave real content pdf when making purchase decisions: Facing more digital Klaban, Jack and Nickerson, Ingeborg. (2011). The U.S. content than ever before, consumers rely on trusted Craft Brew Industry. International Academy for Case content to cut through the noise. Retrieved from Launch Campaign, Spring 2014 46 Business Wire, http://www.businesswire.com/news/ home/20140325005396/en/Nielsen-Consumers-CraveReal-Content-Making-Purchase#.U0lo_OZdW4x Rounded stickers. (n.d.). Retrieved from http://us.moo. com/products/round-stickers.html Nicholson, J. (n.d.). Maximize business exposure with promo stickers. Retrieved from https://www.websticker. com/maximize-exposure-with-stickers.php Ross, D. L. (2013). Beer outlook 2013. Retrieved from http://www.beveragemedia.com/index.php/2013/02/ beer-outlook-2013/ Schneider, E. (2013). Craft Breweries Seeing New Doors Open. The Texas Tribune Retrieved from http://www. texastribune.org/2013/08/02/craft-breweries-getbreak/ Texas Interfaith Center (2011). Faith in Texas. Retrieved from http://texasinterfaithcenter.org/article/faith-texas The Beer Institute (2010). Economic Impact of the Beer Industry, 2010. Retrieved from www.beerinstitute.org Wong, V. (2014). Alcohol sales on the rise. Retrieved from http://www.businessweek.com/articles/2014-02-11/anintoxicating-new-year-americas-alcohol-sales-on-therise United States Census Bureau (2012). Profile of general population and housing characteristics: 2010, City: Austin, Texas. Retrieved from https://docs.google. com/document/d/1lxk9zM6xv3lKRfBGl1PfSmf9wd0E1InFFYeJuXs5yE/edit# Launch Campaign, Spring 2014 47 APPENDIX This appendix contains three key elements of research: 1. Field notes from observational research 2. Field notes from focus group research 3. Results of tagline concept testing I. Observations at Black Star Co-Op Observations were conducted at Black Star Coop on March 2nd from 1 to 3 pm. The general findings of their research is as follows: • Everyone came with a group (usually 2 to 3 people) • People seemed to be here for the social experience • Predominantly men except if it’s a couple • Eclectic crowd - students, people in mid 30s, several families, people in their 50s • Chalkboard signs key factor in purchase motivation In addition to the observations, brief Interviews were conducted with the following people: 1. 2. 3. 4. 5. 6. Daniel Scott Laura Sean Allison George 1. Daniel Age: 32 years old Occupation: Apple - Apple Care Specialist Insights: • He is currently drinking the Leprechaun pomegranate cider from Houston; decided to try it because he saw it on the Black Star sign. • He came to Black Star today to entertain his friends that were in town 2. Scott Age: 43 years old Occupation: Currently unemployed, but his wife is a lawyer Insights: • He has been drinking beer since he was 17 years old and has really refined his craft beer taste over the last 25 years. • He likes craft beer, and isn’t really into cider. • He chooses beer based on the taste and a lower ABV; specifically, he prefers beers that have an ABV from 4% to 7.5% • Especially now that he is older, he wants to enjoy beer without getting drunk • He drinks about six beers each time he drinks • He comes with his wife to Black Star once a week • They also enjoy going to: Draught House, Pinthouse, Craft Pride, Bangers, Whip In • He thinks that Black Star doesn’t usually have a new selection of beers • He will try a new beer whenever he sees it, and feels like he has tried all the beers at Black Star 3. Laura Age: 38 years old Occupation: Lawyer Insights: • She has been drinking cider for ~10 years • She was having a Leprechaun pomegranate cider from Houston • Prefers less hoppy and more fruity beers such as Crispin and Samuel Smith Launch Campaign, Spring 2014 48 4. Sean Age: 33 years old Occupation: Accountant from Houston (he’s just visiting Austin, and he’s been to Black Star previously) Insights: • He enjoys craft beers that are “hoppy” and also likes beers that seem creative - fruity with new combos • Been a homebrewer for the last six years • One of his neighbors has a lot of experience brewing, and he thinks of him as a senior head brewer • He’s a member of a beer club which he really enjoys. Everyone brings growlers of their favorite beer to share with the group • Mentioned O’Dell, a product from Colorado, and they had “tap” takeovers on every bar • Thinks they pushed the product too hard. It’s not handcrafted anymore if the campaign is pushed too hard. Seems less special and like they have a surplus of beer 5. Allison Age: 32 years old Occupation: Stay at home mom Insights: • She and Sean started liking craft beer when they lived in San Francisco five years ago • She likes Bock’s, Stouts, Whitts (light beer) 6. George Age: 27 years old (about to get married) Insights: • He has been drinking craft beer since he moved to Austin (about 4.5 years) after his foodie friends (his buddy Andrew) peer pressured him into trying craft beer • He is really into beer events because the social experience draws him in; he likes learning about how the beer is produced • Finds out about events through Austin 360, friends and the websites of the actual distributors • Used to drink Keystone in his college days, but his tastes have evolved since then. Now he likes Porters and Cream ales as well as darker, non-carbonated beers, and doesn’t like them very hoppy • Aside from Black Star, he likes to visit: Independent Brewery, First Saturday of the month has good events, North by Northwest, Serve great flanks of beer II. Focus Group A focus group was conducted on February 27 from 5pm to 7:30 pm at SaleAMP Internet Marketing firm among a sample of members of the Craft Beer Club. 10 participants contributed to the discussion; 3 were female and 7 were male. All were between the ages of 25 and 35. Key themes from the research as follows: Craft beer drinkers enjoy unique flavors and trying new things: • Look for new flavors, especially when they go out to drink • Willing to hunt for special brews; the chase is thrilling: “It’s about the quest. I’m constantly asking, ‘What else is there?’” • Interested in brewing their own beer when they see an opportunity to make something new; they are creative people looking for gaps • “I ask a lot of questions and get input from the bartender: ‘what do you have that I have to drink?’ • “I’m not monogamous. When I go to the bar I Launch Campaign, Spring 2014 49 want to try it all, but I have my failsafe.” • “Only drinking one beer is counter to the culture of craft beer.” • “While breweries can be good at one specific thing, it’s important to keep varying it. It’s all about specialty.” Craft beer drinkers are very passionate about the products and emphasize quality over quantity: • Consider brewing to be an art form - it’s intentional, artisanal and made with pride (“someone’s baby”) • Brews have idiosyncrasies, like anything that is hand-crafted, and craft beer drinkers like them for the imperfections • One participant got seasonal brews and saved them for the next year to compare to the new batch • “Drinking craft beer shows that I’ve taken consideration into what I do - I’ve taken the time to choose this beer and I’m not just drinking to get drunk” • “‘Any beer will do’ doesn’t cut it for me” • It’s a long-term interest: “You never met an excraft beer drinker” • Presentation is important: like beers with nice labels that looked like they had taken lots of time to create, like breweries that clearly take pride in their product • Inventory reflects true commitment to craft: “There’s a hipster mindset - Adelbert’s is brewing as fast as they can to meet demand, they’re doing it because they love it; when brewers stockpile beer, it’s because they want to make money.” • They wish more breweries used labels, even though it’s not legally required: “if I like what I’m drinking I want to know what’s in it; it helps guide me through the drinking; labels can also suggest food pairings.” Interested in the social aspect of beer: • They enjoy talking about it with other enthusiasts and spreading the word to “unenlightened” beer drinkers • “It’s a brotherhood: all brewers want each other to succeed. It’s great to see that everyone is that friendly.” • Motivated to try new beers by recommendations from trusted friends and exclusivity from the brewers (via social media) • Joint ventures between breweries we like and new ones we haven’t heard of introduces new flavors • Apps help beer drinkers stay in the loop: Untappd, Beer Advocate, Bitch Beer ABV is important to most craft drinkers, but for different reasons: • “I enjoy being able to drink less and get more out of it. Higher alcohol content beers are also tastier to me.” • Higher ABV lets me drink less beer with the same effect so I don’t get as full • “I don’t want to drink 8 Bud Lights to do the work of 2 whiskeys.” • “One of the benefits of craft beer is that it offers more bang for your buck” • “First I think ‘Is it a beer I want?’ then I choose ABV - it’s a special treat if one I want is also high ABV.” • “It doesn’t matter to me at all.” Everyone has their own taste preferences and drinking habits, but they know what they like: • Different responses to how they would describe their favorite beers: session beer, great label design, unique, local, washes down clean, good taste, any Belgian beer, delicious Launch Campaign, Spring 2014 50 • “Beer can be so specific, in a way that wine can’t; when people say they don’t like beer, they just haven’t found a beer they like.” • There is a divide in the world of craft beer drinkers: hoppiness versus ambers • “I tend to find IPA lovers tend to be oneuppers; it’s like jalapenos - I can eat a spicier one than you.” • Don’t like: piss taste (“only bad beer has to be cold to be good”), bitter flavor (“If it lingers, I’m like ‘What did I put in my mouth?’”), too fruity or sweet (“You want that sweetness, but you don’t want it to linger”) • Everyone has different drinking habits: some enthusiasts drink several nights a week or more, while others view it as a weekly treat Craft beer drinkers frequent pubs and breweries more than sports bars: • There is a specific vibe to craft beer bars. “Brew Exchange is a new craft beer place that also has cocktails and loud music and a dance floor. It’s confusing, I don’t know what to think of it.” • Different beers are right for different occasions • “I look at a ratio of Time and Activity Level: I’m not going to go play flip cup with a bunch of oatmeal stout; if I’m going hunting I’ll just take like 8 Buds.” • “One time I brought a dark pilsner keg to a party and people thought it was too heavy. I didn’t think anything of it because that’s what I usually drink.” • Craft beer is not great in the sun: fishing, baseball games and grilling in the summer are not ideal places for craft beer drinking Related ideas: • Tend to be collectors: “when new releases come out it’s like Pokemon cards - gotta catch ‘em all” • Tend to be foodies: “before there was a stigma that only wine paired well with good food, but beer is becoming more refined to pair with foods (e.g. Barley Swine).” • Believe in supporting local business; some are also big on organic, healthy ingredients Notes from the focus group conversation can be found below: Storytelling: describe a craft beer drinker (can be a story, a picture, etc.). • Believes in quality over quantity; enjoys unique flavors; eating healthy = fresh ingredients; shops local; • When new releases come out it’s like Pokemon cards - gotta catch ‘em all • Big, burly lumberjacks; excited by new experiences • You never meet an ex-craft beer drinker • Craft beer drinkers tend to be foodies too • Young professionals, mid-upper socioeconomic class; want to be different from older generations (parents drink Bud want to be smarter, classier) • Someone who prefers flavors/experiences outside of what’s at the local Walmart • Enjoy trying new things, expanding on and refining palette; enlighten other people who don’t know what’s out there; enjoy supporting local businesses; obsessive collectors • Want to brew beer - interested in creating themselves (creative people who find gaps); almost an art form • Passionate about the products • Frequents pubs or breweries, more than a sports bar; more interested in social aspect of beer - like talking about beer Launch Campaign, Spring 2014 51 • Kind of like wine-os - people go to vineyards and hang out • People go out for craft beer to hang out with their friends, and try something they can’t get at home • Hunt to find something special (I drove 5 hours to find a craft beer one time); thrill of the hunt • Divide in craft beer drinkers world - hoppiness versus ambers • I tend to find IPA lovers tend to be oneuppers; it’s like jalapenos - I can eat a spicier one than you Category sculpting: if the following beers were in a family, what role would they have: • Budweiser - drunk uncle, al bundy, creepy uncle, old swimsuit - too short, someone who lives in Missouri, Vietnam vet, American • Miller Light - cousin we pretend we’re not related to, hot older brother (NASCAR driver), penny-pinching grandma (don’t want to spend calories), aunt who’s trying to lose weight • Heineken - foreign relative, out of town aunt, wealthier frat bro • Sam Adams - divorced dad, dead relative, cool older brother (x3 - going out trying to do cool stuff but still in the family), first beer I remember enjoying but it’s fond memories at this point, I’ve moved on to other things; gateway craft beer - good place for people to start • Dogfish Head 90-Minute IPA - stoner brother (bitterness of hoppiness enjoys a good toke now and then), favorite pet of your brother so you hang out with it every once in awhile (someone you respect), treat - high quality, rare, 2nd or 3rd cousin - have to have a couple drinks before you’ll try anything General discussion: Q: How do you define craft beer? What elements create “craft”? A: Regional, seasonal, local random flavors like people who use local farmers to cook with artisanal - more time is put to it (checking temperature, sampling it, testing it, the whole time) Budweiser would have you believe they’re doing it too - can you really just set it and forget it? Monitoring for consistency versus quality there’s an intention to it I like to get a seasonal beer, save it and compare it to next year’s model I’s like something hand-crafted - it’s custom, has idiosyncrasies Home brewed crafts have imperfections and you like it because of it Q: What’s the first thing that comes to mind when you think of craft beer? A: Unique (pretty unanimous) intentional pride (it’s someone’s baby - someone really cares about this product) Q: Why do you chose craft over regular beer? Over other alcohol? A: Tastes better, higher alcohol content (drink fewer) It shows that I’ve taken consideration into what I do - I’ve taken time to choose this beer; it’s not just getting drunk Launch Campaign, Spring 2014 52 It’s about the quest - “what else is there?” It’s like wine, brandy after dinner but whiskey before “Any beer will do” doesn’t cut it for me Q: How important is ABV? A: Big I enjoy being able to drink less and get more out of it; it’s also tastier to me I don’t want to drink 8 bud lights to do the work of 2 whiskeys Plus you have to go the bathroom More bang for your buck I prefer higher alcohol for taste, but I don’t think about ABV First, I think “is it a beer I want”? then I choose ABV; it’s a treat if one I want is also high ABV It doesn’t matter to me at all It’s good to know Q: Are there any activities that go hand in hand with craft beer drinking (eating, socializing)? A: Austin and Portland Rainey Street, gastropubs Home and pubs NOT 6th street (but everywhere that isn’t 6th west, rainey, etc. - it’s available) I drink fewer by myself than with others Brew Exchange has cocktails and loud music and dance music so it’s confusing - I don’t know what to think of it Q: What type of flavor do you look for in beer? What types of flavor do you avoid in beer? A: Light Malty Rich but not dark Smoked - popular recently and I’m in to it; it tastes like ham Don’t like: piss (bad beer has to be cold), bitter (if it lingers, I’m like “what did I put it my mouth), too fruity or sweet - you want the sweetness but you don’t want it to linger Q: Do you prefer drinking craft beer out of a can or bottle? A: Bottle - I feel fancier drinking it out of a bottle; bottles are the vinyl of the beer world; glass is a better insulator - you can drink slowly Cans are more portable (you can take them on the river); no light can get into the cans Bottled beer is like drinking out of a wine glass; can is like wine cup I’ll pour it into a glass whenever I can Have you ever tried brewing beer at home? 2 participants have: “my beer.. I don’t like it, but other people do” Q: Do you attend any craft beer festivals? A: Auditorium shores does the Texas Craft Beer Festival Flying saucer has a good one Denver is the mecca of Great American Craft Brew Festival I do tours and anniversary parties at breweries more than festivals; they tap unique things they’ve been saving Q: When do you drink craft beer (day of the week, time of day, how often)? A: 1/week (x2) - drink wine 4-5 times Launch Campaign, Spring 2014 53 Couple nights/week (x3) Nightly Once a month Shifted from wine to beer because boyfriend taught me more about craft beer; the more I tried the more I liked Beer can be so specific, in a way that wine can’t; when people say they don’t like beer, they just haven’t found a beer they like Q: How do you meet other craft enthusiasts? A: Absolutely, at the bar BYOB - I’ll bring something that’s a little different than the standard and people like to try it; other craft beer lovers will like it I’m the extreme extrovert who talks to people about it at the grocery store; I don’t ask women anymore At craft beer bars, you can always get into conversations It’s a brotherhood - all brewers want each other to succeed, it’s great to see that everyone is that friendly Motivates all brewers to get better (friendly competition) Not in direct competition with themselves moreso against the man Q: How do you choose which craft beer to drink? A: Judge books by their cover - cool tap or label (“fuck ya, cool tap”) Hierarchy of types then I look them up on beer advocate to see others’ ratings As a designer, I choose nice looking labels because I know it means they took time Bar - I ask a lot of questions and get input from the bartender; “what do you have that I have to drink?” - breweries that produce small batch, limited-edition brews see popularity because of this mindset Whatever they’re holding in the back for me because I’m there all the time Waiters, bartenders are passionate about craft too so you trust that they know what they’re talking about “What just came out?” Q: What are your favorite craft beers and why? A: If someone was asking me, I’d ask “what do you like?” My favorite is Firestone Walker DBA - it’s smooth, it’s a session beer (multiple beers without getting hammered, won’t get sick of it), it’s a great label Dishoots Abyss - triple-barrel aged (pinot, bourbon and oak barrels) - crazy intensive process; I would describe why it’s so unique and hopefully they’re into unique things too If you’re in my neck of the woods I would say “stash IPA” because it’s unique to this area; good taste, washes down clean I’ll drink any Belgian beer - talk about the flavor not too light, not too heavy - it’s just right; Belgian process has been around for years Holgarden - it’s delicious Q: How loyal are you to these beers/brands? A: Not monogamous; when I go to the bar I want to try it all but you have your failsafe, best one Only drinking 1 beer is counter to the culture of beer If I’m out I’ll get something new, if I’m home I’ll get something I know Launch Campaign, Spring 2014 54 My favorites are the staples When I travel I would try a local brew from that place My wife doesn’t share my passion, but I thought it was delicious Q: What motivates you to try new brands? A; Recommendations (WOM) Exclusivity (if I see a Twitter post that we got this new thing out and we’re going to run out quickly) Q: Can you think of a time when you would never drink craft beer? Why? A: 7 am It’s not really an issue anymore: before there was a stigma that only wine paired well with good food, but beer is becoming more refined to pair with foods (e.g. Barley Swine) I look at a ratio of Time and Activity Level: I’m not going to go play flip cup with a bunch of oatmeal stout, if I’m going hunting I’ll just take like 8 Buds I brought a dark pilsner keg to a party and people thought it was too heavy There aren’t many craft brews I can take fishing When you’re in the sun it’s a different ball game - baseball game is not craft beer, definitely no stouts in the summer; I had a 6-pack of Guinness while grilling steaks - I was gone (like drinking milk and going into a tanning bed) Q: What breweries have you visited? A: Jester King, Austin Beer Works, Freetail, Jester King, Coors Light plant, Rio Does seeing how it’s made impact your attitude? You can get more appreciation for the process It’s affected me negatively before - this brewer used rice in their beer, not acceptable for a craft beer (cheaper) You can get cheap ingredients in mass produced beers - not looking for it in a craft brew Q: What are your favorite craft beer breweries? Why? A: Process isn’t too important to me; it’s more how they present it (you can tell when it’s the intern giving the tour versus the brewmaster) super prideful in a cistern I love going to Adelberts where you see the labels to wrap the beer bottles; the casks are there but not too many cases Real Ale has too many cases - fuck you - you’re doing this on too high profit margins there’s a hipster mindset - Adelbert’s is brewing as fast as they can to meet demand, they’re doing it because they love it; when they stockpile it, it’s because they want to make money The laws for labeling beer don’t require listing ingredients; it would be awesome for a brewery to do that and stand beside what’s in it Jester King labels their beer so you can understand what’s in it; they’re pre-certified organic a lot of the time that, and, calories One place has different labels that say your peanuts came from this exact place Sustainable farms that brew beer are impressive When I’m drinking a beer and I like it, it’s disappointing not to know what’s in it because it doesn’t have a label Guides you through the beer if you know what flavors are in it Labels can suggest food pairings - some craft Launch Campaign, Spring 2014 55 brews are so specific that they say you should eat it with one specific food YA! That’d be great to know what goes well with food (e.g. tags at HEB) Pricing it reasonably - once you set the precedent that it’s okay to sell it for that much, everyone will; it shouldn’t be as expensive as wine because it doesn’t last as long What’s selling well are people who don’t care about “selling” beer; they’re not trying to sell/ make a profit Craft beer is not about beauty (coming from a women, there’s less misogyny in craft beer) Q: How do you learn about new breweries and beers? A: Friends Website - I follow breweries on social media and get new brews as fast as I can; even if it’s terrible, I have to try it I don’t get much from the guy at HEB Events If the beer we like reaches out to another beer joint ventures between breweries introduces new flavors Untappd - beer social network app - keep track of things you’ve had, recommend based on your tastes Beer Advocate Blogs - Bitch Beer It’s all about specialty Something that would be great for them is - my first introduction to craft beer was Fireman’s Four but then I found out they man Hans Pils and Devil’s Backbone, offering their take on standard beers; there’s a danger in only being specialty because you limit your audience Most recently Real Ale has come up with “brewer’s cut” that are their most unique flavors Good balance of mainstream and specialty Sam Adams has a similar model Austin Beerworks I start people with Pearl Snap then I go to Sputnik People who just like Sputnik - super craft fans have limited buying power But the craft market is growing quickly, so you don’t need something to appeal to the masses It’s about striking a balance You guys should make a 4th Tap 52 (calories) Southern Star Brewery in Conroe sells unique beers and they use a can and slap a sticker on it - cheaper packaging that they can change quickly Room for customization, cool, industrial-looking, stands out; people can also collect stickers III. Tagline Concept Testing A Qualtrics survey was issued to 20 respondents using the Austin subreddit to test three different taglines for the 4th Tap brand. The results are as follows: Q: Anything else to add? A: While breweries can be good at one specific thing, it’s important to keep varying it South Austin sticks to 2 beers and didn’t grow; it’s fine to have staples but I love when they experiment Launch Campaign, Spring 2014 56