The Boston Beer Company Case

RSM 332 Marketing Research

Fall 2011

Thursday 1:00 pm - 3:00 pm WO 20

Professor: Mengze Shi

Project: The Boston Beer Company case

Chernenko Kirill

998581510

The Boston Beer Company, Inc., founded in 1984, is a leading brewer in United States, offering wide variety of high quality full-flavored, handcraftedbeers. It is distinctive due to the time-honored recipe of brewing and authentic, consistent quality of alcoholic beverages. Samuel Adams Boston Lager is the pride of BBC, regular handcrafted beer “stands for quality, inner self-worth, authenticity, and unique New England or Yankee toughness” ( Martin Roper, Chief Operating Officer). Unfortunately, the company experienced the failure of conquering light beer segment in 1998 as the beer market is a highly competitive industry, which requires not only the great product but also high brand awareness. Right now there is an attractive opportunity for BBC to enter the field of light beer once again. Should Boston Beer Company capture this chance or let it slip?

Before presenting new light beer and cut the risk of second epic fail, Boston Beer Company have to examine in detail the feeling and thoughts of light beer drinkers. Moreover, BBC should understand why such an extraordinary flavorful and heartiness Lightship did not succeed. To find out what is light beer experience1700 males and females (ages 25-39) were surveyed to find out what is light beer experience.

The field study (Exhibit 8A) proved that light beer is more about simplicity, energy and group identity rather than full-bodied, hoppy and flavorful drink. Because of this misleading concept, which BBC heavily invested in, creating strong brand image, Lightship sales have eroded to 3,000 sales per month in 1998.

In the first place, Light beer consumers are aware of simplicity of a drink.It has to be simple in taste, appearance and scent.

- The taste should not be complex and bitter

- The scent has to be barely perceptible

- The label should deliver lively colors as a symbol of energy, sports activity and celebrations

Secondly, interviewees consider light beer with refreshing andself-control. The gulp of light beer should be positioned as jumping into refreshing pool and energy giving, which links to healthy environment. Lots of people would like to drink light beer after any sports or physical activity like basketball game because it is low-alcohol beverage, which gives self-consciousness and control over alcohol effects. Furthermore, light beer can be a fuel