The Latest Trends in Marketing Methods in the Brewing Industry

TARGET GROUPS OF THE BEER INDUSTRY

Main Consumers of Beer Products

Every product has a group that is labeled as it's main consumers. As shown in figure 1, the primary consumers of beer are males from the ages of 21-30. This age group annually consumes 58% of America's beer. The rest of America's beer is consumed by males in other age groups and females.

Figure 1. Main Consumers of Beer

Source: Primary

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Groups Targeted by Beer Industry Marketers

The target groups of the brewing industry vary slightly from the main

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consumers. The groups targeted by the major beer distributors and advertisers are males from the ages of 21-35. The age range of this group is slightly larger than that of the main consumers. This proves that the marketing techniques aimed toward the target groups works and is widely successful. Steve Carter, Anheuser-Busch (Burlington, NC branch) Sales and Marketing Manager, says that "all efforts to sell must be made to these target groups. We must point out certain attributes of our products that will satisfy the customers wants. We have to make our product positively different from the others.

THE PREFERRED ADVERTISING MEDIA

Advertisements on Television

Advertising through television is the most popular way to market beer products. Television commercials have become the most widespread way to get a new beer product out to the public or help an old beer product regain its popularity.

Different Companies Compete With Television Commercials

Anheuser-Busch, Miller, and Coors, the Nation's top three leading brewing companies, all have their own "signature commercials". The key to making these advertisements successful is finding out what the viewers (future consumers) enjoy and base marketing techniques on the findings.

Anheuser-Busch

Anheuser-Busch is recognized around the World for it's latest catchphrase, "Whassup?" These Budweiser commercials showcase a bunch of guys sitting around "watching the game and drinking a bud". "You've got to remember that these are mass-marketed products," said Bob Lachky, Vice President of brand management at Anheuser-Busch. "You'd better have broad appeal or you're running the very, very grave risk of alienating core customers. We try to stay on work that's broadly appealing, that speaks to everyone, not just the guy in a flannel shirt with a grunge look who appears

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to be 23."

Miller

Miller beer is most closely associated with it's classic ad line, "Grab a

Miller Lite, It's Miller Time." Scott Bussen, marketing communications manager at Milwaukee based Miller Brewing Company believes the strategy for Miller is to demonstrate the importance of camaraderie and good times and to be able to laugh at yourself in a way that is not mean spirited.

Coors

Coors Brewing company takes a slightly different approach to their television advertisements. Coors takes famous figures, mostly retired sports stars, to advertise their products. The sports figures discuss the accomplishments they have made in their life and why they enjoy drinking Coors products.

Public's Favorite Beer Commercial

A survey was conducted among College students, 21 and over, to determine their favorite beer commercial. As shown in figure 2, Anheuser-Busch commercials remained supreme.

Figure 2. Most Popular Beer Commercial

Source: Primary

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INNOVATIVE EFFORTS TO ENLARGE MARKET SHARE

On Premise Marketing

On-premise marketing is a form of marketing that takes place at a bar or restaurant type venue where customers can buy the product that is being marketed. This on-premise marketing is typically associated with alcoholic beverages. Steve Carter of Anheuser- Busch Believes that on-premise marketing is "the name of the game". This type of marketing is becoming more popular and significantly increasing market share because "on-premise trials lead to off-premise purchases." "It's a n opportunity to initiate trial of new products or trial of established products that are new to some customers, Carter says. Anheuser, Miller, and Coors all increase their annual marketing share with on-premise marketing. It is something that each of these companies take very seriously and profit likewise.

More Products Produce More Income

Each company has its own signature products. Anheuser-Busch produces Budweiser, Bud Lite, Michelob, Busch, and Doc Otis Hard Lemonade. Coors signature products include Coors Extra Gold, Coors Lite "Silver Bullett", Killians Irish Red, and Zima. The Miller Brewing Company produces Miller Genuine Draft, Miller Lite, Miller High Life, Icehouse, and Smirnoff Ice.

Light Brands

The latest trends and the ones that are gaining the largest market share are the production of the light beers and the specialty drinks. Gary Hemphill, Vice President of Beverage Marketing says " Light beer is the key to success in today's beer market." Over the past year light beer sales for all companies show sales rising at nearly double the rate, and volume at nearly triple the rate, of regular beer.

Specialty Alcoholic Drinks

Anheuser, Coors, and Miller all have their own brands of specialty drinks.

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These drinks are alcoholic beverages that taste similar to mixed drinks. This gives an alternate opritunity to those who don't like beer. The specialty drinks'