Thursday, August 20, 2009

New Marketing Rules - Humble Is The New Black (part 2)

This recent story appeared on Reuters:

ECONOMY UNLEASHES "PERFECT STORM" for BOUTIQUE BEER

http://www.reuters.com/article/lifestyleMolt/idUSTRE57G2VL20090817?sp=true

From the story:

"You can buy an exceptional beer for half the price of a mediocre glass of wine," said New York beer maker Kelly Taylor...

...Across the United States, craft breweries and shops specializing in artisanal and import beers are growing, with merchants betting that tough economic times will turn Americans who once favored wine or liquor toward premium beers.

"Even in this economy, people want to treat themselves to really extraordinary things," said Justin Philips, co-owner of the Beer Table bar in the New York City borough of Brooklyn. "People are recognizing that there is a diverse world of beer. And it tends to be less expensive than other drinks."

The number of boutique breweries in the United States has grown by nearly 5 percent in the past five years to 1,476 breweries, said Paul Gatza, director of the Brewers Association, a non-profit industry group based in Colorado.

...Catherine Saillard, owner of French bistro Ici, said private parties are increasingly requesting locally made craft beers rather than wine and spirits.

"I wouldn't say that (beer) has the same complexity (as wine), but it's not supposed to," said Saillard, who is French. "It's unpretentious. You don't need to know the grape."

(Beer), "it's unpretentious." That last quote is the key to the success of craft beer today. As noted before, the 'Bling' culture is now so out. In my opinion, consumers have shifted significantly, and will be saving more and spending more wisely for years to come.

It's interesting to look at the craft beer segment and wonder how much more might this segment grow if their marketers fully embrace this trend? In a sense, craft beers have grown on the basis of great product and a general shift in consumers' taste preferences (across many consumable food/beverage categories). But craft beers have also grown somewhat despite marketing that has sometimes missed on the concept of brand positioning and 'benefits' vs. 'attributes.'

'Beer Geeks' used to be a common term in the early days of craft beer. They were the early adopters. Highly-involved early adopters are more about product attributes. But the segment has broadened, and 'regular consumers' are more about benefits. Craft beer marketers can take their brands even farther - much farther - if they understand this shift. As the story above points out, craft beer is a natural value-alternative to wine and spirits, but even within adult beverage categories, it now pays to further position a brand in the consumer's value sweet spot. In loftier economic times, brand claims of superior attributes are more easily accepted by a broader consumer market - but not now - now a brand needs to convey perceived benefit, in order for the consumer to perceive value.

Shiner (well known in Texas for Shiner Bock) is one such craft beer brand that is now well-positioned for this new consumer market with its darn-good-but-folksy-down-to-earth image. Where Shiner use to be looked upon as a better beer, but not quite 'top-shelf' (e.g. "Yes, but vat abut das Hops un IBUs?") the brand is now doing quite well in this new value-oriented market environment. Frankly, and to be blunt, if you're spending your money nowadays on anything that is 'top-shelf,' and your seen doing it, you're not impressing anyone - often quite the opposite.

As for my poor attempt above at the question in accent, ask most Texans about Shiner and they'll probably say "I just drink it." Tomorrow is Friday, and I'm in Texas, so that may just be on my list too...

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