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10 key ingredients to craft beer success,[object Object],Neal Stewart,[object Object]
10 Key Ingredients for Craft Beer Success,[object Object],Blocking and tackling,[object Object],Have a home base,[object Object],Create conversation opportunities,[object Object],Authentic story,[object Object],On-premise strength,[object Object],Feet on the street,[object Object],Exploit the power of influencers,[object Object],Activate the icon,[object Object],The marketing is baked in,[object Object],Listen to your gut,[object Object]
Blocking and tackling,[object Object],Most craft beer brands have extremely small budgets so the first marketing allocation goes toward tools that directly help sell beer - POS,[object Object],POS is always first on the distributor wish list.  If they don’t have any tools to sell with, they don’t sell.,[object Object],Craft beers also pay a higher price for higher quality/bigger/more unique POS pieces.,[object Object],Examples: Sweetwater, New Belgium, Odell ,[object Object]
Have a home base,[object Object],Being that authenticity is so important, successful craft beer brands focus their efforts around their brewery where their story is more meaningful to consumers.,[object Object],It’s easier to activate the brand’s story in a home market:,[object Object],It’s repeated more often (by brewery employees),[object Object],It is reinforced via brewery tours,[object Object],Craft brewers are also more profitable if they sell a higher percentage of their beer in their home market.,[object Object],Expansion is not made until there is sufficient consumer demand in adjacent markets,[object Object],Examples: Summit, Harpoon, Bell’s, Abita, Boulevard,[object Object]
Create conversation opportunities,[object Object],Craft beer brands are built on conversations. One consumer at a time.,[object Object],The story and the passion in which it is presented is critical.  Craft beer consumers respond to small companies that have deep passion for their business,[object Object],Consumer interactions are best when they are with the brand’s “religious zealot” or spokesperson.  Jim Koch for Sam Adams, Garrett Oliver for Brooklyn and Sam Caligione for Dogfish Head are great examples.,[object Object],Conversation opportunities:,[object Object],Beer festivals ,[object Object],On-premise promotions,[object Object],Off-premise hand-sells,[object Object],Social Media,[object Object]
Authentic story,[object Object],Growing craft beer brands have an authentic story at the root of their communication.,[object Object],More importantly, they live it.,[object Object],Employees don’t forcefully tell stories, they live them.,[object Object],People who represent the brand ARE the brand.,[object Object],Examples: New Belgium, Dogfish Head, Sweetwater, Stone ,[object Object]
On-premise strength,[object Object],On-premise strength = off-premise pricing power.,[object Object],Craft brands that are weak in the on-premise channel never get the respect needed to become a power brand,[object Object],On-premise strength also leads to sampling, credibility and top of mind awareness,[object Object],Example: Brooklyn, Goose Island,[object Object]
Feet on the street,[object Object],Craft beer brands need people in the market to build distribution and interact with consumers.,[object Object],Distributors cannot be relied upon to build awareness or execute promotions,[object Object],Representation in market adds to the brand authenticity,[object Object],Distributors take craft brands more serious when there is representation in market.,[object Object],The feet on the street are there for sales and marketing execution,[object Object],Example: Sam Adams, New Belgium, Magic Hat,[object Object]
Exploit the power of Influencers,[object Object],The only craft beer brand that advertises nationally is Sam Adams.  Outside of some print in niche print publications, most craft beer brands rely on word of mouth to build their brand.,[object Object],Many craft beer brands dramatically overspend on influencer consumers,[object Object],Influencers are viewed amongst their friends, family and co-workers as knowing the trends and what’s new and exciting,[object Object],Craft beer is a segment that offers more than the image-based brands,[object Object],Influencers are credible,[object Object],There are various ways to reach influencer consumers:,[object Object],Heavy sampling – give them beer to give to people,[object Object],Support their passions,[object Object],In-depth product experience (brewery tours, behind the scenes),[object Object],Make them feel like they have a say in the brand,[object Object],Examples: Flying Dog, Sweetwater, PBR,[object Object]
Activate the icon,[object Object],“Big” sales promotions are mostly ineffective,[object Object],Consumers don’t expect them from “upstart” craft brands,[object Object],Budgets prevent many brands from being able to do this,[object Object],Craft brands must be creative and bring the spirit of the brand to life at retail by activating their “icon”,[object Object],Fat Tire = cruiser bike,[object Object],Sweetwater = fish sculpture,[object Object],Shiner Bock = Mountain Goat,[object Object],Goose Island = Goose,[object Object],Craft beer brands also have success bringing their “icon” to life via branded events,[object Object],Tour de Fat,[object Object],Bocktoberfest,[object Object],GonzoFest,[object Object],Magic Hat Mardi Gras,[object Object],Examples: New Belgium, Sweetwater, Stone, Magic Hat ,[object Object]
The marketing is baked in,[object Object],Craft beer brands don’t have big enough marketing budgets to build awareness, adoption and loyalty the traditional way.  Craft brands have to be remarkable so that consumers experiment and recommend to others.,[object Object],The remarkable nature needs to be in the product itself, not the marketing.,[object Object],Example: Dogfish Head, New Glarus, ,[object Object]
Listen to your gut,[object Object],Very few successful craft beer brands are grounded in deep consumer insights (Blue Moon is the only one that comes to mind).  Most are built on passion and are the product of someone’s lifelong dream.  The people who build these brands NEVER have consumer research to support their decisions, they just do what they want to do and they bring it to life through hard work and dedication.  Craft beer is truly a business where passion ALWAYS wins.,[object Object],Examples: Dogfish Head, Sam Adams, Stone, Widmer, Magic Hat, Boulevard, ,[object Object]

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