SlideShare a Scribd company logo
1 of 23
Download to read offline
 
Craft	
  Beer:	
  Targeting	
  the	
  Female	
  Segment	
  
	
  	
  
	
  	
  
	
  
Gennaro	
  Aliperti,	
  Bryan	
  Blick,	
  Joseph	
  Brad	
  Boggess,	
  
Benjamin	
  Bolasny,	
  Miriam	
  Brownstone,	
  Dustin	
  Bryant	
  
	
  	
  
	
  	
  	
  
	
  	
  
Research	
  Project	
  
Marketing	
  9716	
  
Professor	
  Dr.	
  Chugani	
  
	
   	
  
1
Table	
  of	
  Contents	
  
I.	
   Executive	
  Summary	
   	
   	
   	
   	
   	
   	
   	
   2	
  
II.	
   Introduction	
  	
   	
   	
   	
   	
   	
   	
   	
   	
   3	
  
III.	
   Research	
  Question	
  	
   	
   	
   	
   	
   	
   	
   	
   4	
  
IV.	
  	
   Methodology	
   	
   	
   	
   	
   	
   	
   	
   	
   5	
  
Part	
  1:	
  In-­‐Depth	
  Interviews	
   	
   	
   	
   	
   	
   	
   6	
  
Part	
  2:	
  Conjoint	
  Analysis	
   	
   	
   	
   	
   	
   	
   	
   7	
  
V.	
  	
   Major	
  Findings	
   	
   	
   	
   	
   	
   	
   	
   	
   11	
  
Promotion	
   	
   	
   	
   	
   	
   	
   	
   	
   	
   11	
  
Product	
   	
   	
   	
   	
   	
   	
   	
   	
   	
   12	
  
VI.	
  	
   Conclusions	
  and	
  Recommendations	
   	
   	
   	
   	
   	
   13	
  
VII.	
   Appendix	
   	
   	
   	
   	
   	
   	
   	
   	
   	
   15	
  
VIII.	
   Bibliography	
  	
   	
   	
   	
   	
   	
   	
   	
   	
   21	
  
IX.	
   Contributions	
   	
   	
   	
   	
   	
   	
   	
   	
   22	
  
	
   	
  
2
	
  
I.	
   Executive	
  Summary	
  
For	
  this	
  consumer	
  behavior	
  final	
  project,	
  the	
  objective	
  was	
  to	
  find	
  a	
  company	
  and	
  answer	
  a	
  
specific	
  marketing	
  question.	
  We	
  decided	
  to	
  take	
  a	
  closer	
  look	
  at	
  craft	
  beer,	
  and	
  selected	
  the	
  
brewery	
  of	
  our	
  team	
  member	
  Joseph	
  Boggess.	
  The	
  brewery	
  is	
  called	
  Underhill	
  Brewery,	
  and	
  is	
  
hoping	
  to	
  launch	
  in	
  the	
  Fall	
  of	
  2016	
  in	
  New	
  York’s	
  Long	
  Island	
  City.	
  Like	
  for	
  any	
  establishment,	
  
Underhill	
  Brewery	
  is	
  looking	
  for	
  ways	
  to	
  increase	
  its	
  competitive	
  advantage	
  and	
  maximize	
  its	
  
profits.	
  
We	
  began	
  the	
  project	
  by	
  conducting	
  literary	
  research,	
  which	
  showed	
  women	
  are	
  consuming	
  
craft	
  beer	
  disproportionately	
  to	
  regular	
  beer.	
  To	
  explicate,	
  women	
  make	
  up	
  only	
  25%	
  of	
  the	
  
consumers	
  of	
  regular	
  beer,	
  but	
  37%	
  of	
  craft	
  beer.	
  This	
  gave	
  us	
  our	
  basis	
  and	
  reason	
  to	
  delve	
  
further	
  into	
  the	
  subject	
  of	
  the	
  female	
  segment	
  within	
  craft	
  beer.	
  We	
  hoped	
  to	
  find	
  out	
  why	
  this	
  
cleft	
  exists,	
  and	
  how	
  we	
  could	
  capitalize	
  on	
  it.	
  
We	
   defined	
   our	
   target	
   market	
   as	
   upper	
   middle	
   class,	
   well	
   educated,	
   young,	
   working	
  
professional	
  women	
  in	
  the	
  New	
  York	
  City	
  metro	
  area,	
  aged	
  21-­‐45.	
  Using	
  literary,	
  qualitative,	
  
and	
   quantitative	
   research,	
   we	
   have	
   been	
   able	
   to	
   identify	
   which	
   attributes	
   appeal	
   most	
   to	
  
female	
   beer	
   drinkers,	
   and	
   how	
   Underhill	
   Brewery	
   could	
   and	
   should	
   use	
   this	
   information	
   to	
  
capitalize	
   on	
   this	
   target	
   segment.	
   We	
   have	
   combined	
   knowledge	
   about	
   both	
   product	
   and	
  
promotion	
   to	
   create	
   the	
   perfect	
   craft	
   beer	
   and	
   how	
   to	
   bring	
   it	
   to	
   the	
   market	
   and	
   target	
  
segment.	
  
	
   	
  
3
II.	
   Introduction	
  
In	
   late	
   2016,	
   Underhill	
   Brewery	
   is	
   expecting	
   to	
   open	
   its	
   doors	
   to	
   the	
   public.	
   Underhill	
   Farm	
  
Brewery	
  will	
  be	
  a	
  Long	
  Island	
  City	
  brewpub	
  serving	
  high-­‐quality	
  beer	
  and	
  food	
  through	
  locally-­‐
sourced	
   ingredients.	
   The	
   brewery	
   aspires	
   to	
   be	
   a	
   unique	
   venue	
   where	
   customers	
   can	
  
experience	
  fresh	
  and	
  full-­‐flavored	
  ales,	
  participate	
  in	
  the	
  beer	
  brewing	
  process,	
  and	
  taste	
  what	
  
New	
  York	
  State	
  farms	
  have	
  to	
  offer.	
  	
  
The	
  venture	
  will	
  be	
  a	
  brewery	
  and	
  a	
  restaurant	
  all	
  in	
  one	
  space.	
  The	
  “brewery	
  side”	
  will	
  exist	
  in	
  
the	
  kitchen	
  (stripped	
  out	
  of	
  traditional	
  cooking	
  equipment)	
  with	
  the	
  beer	
  produced	
  within.	
  The	
  
“restaurant	
   side”	
   will	
   focus	
   on	
   selling	
   the	
   food	
   and	
   drink,	
   with	
   the	
   food	
   prep	
   area	
   in	
   the	
  
basement.	
  The	
  model	
  is	
  based	
  on	
  high	
  foot	
  traffic,	
  retail	
  sales	
  as	
  opposed	
  to	
  wholesale,	
  fresh	
  
artisanal	
  beer,	
  and	
  farm-­‐to-­‐table	
  ideals.	
  
To	
  best	
  take	
  on	
  the	
  problem	
  and	
  analysis	
  to	
  come,	
  it’s	
  important	
  to	
  understand	
  three	
  concepts:	
  
1.	
  Craft	
  beer,	
  also	
  known	
  as	
  microbrew	
  beer,	
  refers	
  to	
  the	
  segment	
  of	
  fully	
  flavored,	
  artisan-­‐
style	
  beers	
  made	
  by	
  U.S.	
  brewers.	
  Craft	
  beers	
  are	
  available	
  with	
  a	
  variety	
  of	
  ingredients,	
  styles,	
  
and	
   packaging	
   that	
   reflect	
   their	
   often	
   hand-­‐crafted	
   origins.	
   Varieties	
   are	
   typically	
   associated	
  
with	
  small	
  independent	
  local	
  or	
  regional	
  brewers.	
  The	
  styles	
  and	
  positioning	
  characterized	
  by	
  
craft	
  beer	
  are	
  in	
  opposition	
  to	
  the	
  larger	
  brewing	
  corporations	
  including	
  Anheuser-­‐Busch	
  InBev	
  
and	
  MillerCoors,	
  who	
  are	
  often	
  defined	
  as	
  macrobreweries.	
  
2.	
  The	
  beer/brewing	
  industry	
  is	
  still	
  dominated	
  by	
  these	
  macrobreweries,	
  which	
  account	
  for	
  
almost	
  90%	
  of	
  the	
  market.	
  But	
  even	
  as	
  breweries	
  such	
  as	
  InBev	
  and	
  SABMiller	
  sales	
  steadily	
  
decrease,	
  Craft	
  Beer	
  sales	
  rise	
  every	
  year.	
  According	
  to	
  the	
  Brewer’s	
  Association,	
  Craft	
  Beer	
  
4
growth	
  exceeded	
  13%	
  by	
  volume	
  and	
  15%	
  by	
  dollars	
  from	
  2008	
  to	
  2013.	
  Year	
  after	
  year,	
  the	
  
growth	
  rate	
  increases	
  (2013	
  grew	
  by	
  18%	
  over	
  2012).	
  The	
  2012	
  Mintel	
  report	
  on	
  Craft	
  Beer	
  
suggests	
  that	
  sales	
  will	
  have	
  tripled	
  from	
  2007	
  to	
  2017.1
	
  Microbrewing	
  is	
  eating	
  away	
  at	
  the	
  
macrobrewery	
  market	
  share	
  as	
  more	
  and	
  more	
  customers	
  switch	
  to	
  Craft	
  Beers.	
  	
  
3.	
  The	
  average	
  Craft	
  Beer	
  enthusiast	
  is	
  Caucasian,	
  male,	
  and	
  with	
  household	
  incomes	
  of	
  at	
  least	
  
$50,000.	
  Most	
  are	
  between	
  the	
  ages	
  of	
  25	
  to	
  45,	
  but	
  the	
  younger	
  customers	
  (21	
  to	
  30)	
  are	
  
rapidly	
  gaining	
  market	
  share.	
  Women	
  and	
  Hispanics	
  have	
  lately	
  gained	
  recognition	
  in	
  Craft	
  Beer	
  
as	
   high-­‐growth	
   consumers	
   as	
   well.	
   Underhill	
   will	
   provide	
   food,	
   drink,	
   and	
   a	
   full	
   brewery	
  
experience.	
   However,	
   the	
   company’s	
   core	
   competency	
   is	
   Craft	
   Beer,	
   producing	
   full-­‐flavored	
  
beer	
  in-­‐house.	
  As	
  such,	
  the	
  success	
  of	
  the	
  venture	
  lies	
  in	
  capturing	
  a	
  segment	
  of	
  the	
  NY	
  Craft	
  
Beer	
  market.	
  While	
  Underhill	
  has	
  a	
  strong	
  strategy	
  for	
  capturing	
  these	
  traditional	
  Craft	
  Beer	
  
customers,	
  the	
  company	
  acknowledges	
  that	
  it	
  does	
  not	
  have	
  a	
  strong	
  plan	
  for	
  reaching	
  women.	
  
	
  
III.	
   Research	
  Question	
  
There	
  is	
  little	
  data	
  or	
  research	
  on	
  marketing	
  beer	
  toward	
  women	
  specifically.	
  This	
  demographic,	
  
until	
  recently,	
  has	
  been	
  dismissed:	
  women	
  do	
  not	
  really	
  drink	
  beer.	
  They	
  prefer	
  wine	
  or	
  mixed	
  
drinks.	
  But	
  according	
  to	
  a	
  2013	
  Gallop	
  poll	
  on	
  the	
  alcohol	
  industry,	
  women	
  in	
  fact	
  represent	
  
25%	
  of	
  all	
  beer	
  sales,	
  and	
  37%	
  of	
  all	
  Craft	
  Beer	
  sales.2
	
  What	
  this	
  means	
  is	
  that	
  women	
  as	
  a	
  
group	
  consume	
  much	
  less	
  beer	
  than	
  men,	
  yet	
  within	
  Craft	
  Beer,	
  they	
  consume	
  almost	
  as	
  much	
  
as	
  men.	
  This	
  data	
  indicates	
  that	
  something	
  about	
  Craft	
  Beer	
  attracts	
  women	
  more	
  to	
  Craft	
  Beer	
  
1
	
  Kraushaar,	
  Amy,	
  Beer	
  -­‐	
  US	
  -­‐	
  January	
  2015,	
  Mintel,	
  January	
  2015	
  
2
	
  Mosbaugh,	
  Erin,	
  How	
  Craft	
  Beer	
  Fails	
  its	
  Female	
  Fan	
  Base,	
  First	
  We	
  Feast,	
  November	
  20,	
  2014	
  
5
than	
   the	
   average	
   man.	
   (We	
   are	
   not	
   stating	
   that	
   women	
   drink	
   more	
   Craft	
   Beer	
   than	
   mass-­‐
produced	
   beer,	
   as	
   Craft	
   Beer	
   is	
   still	
   in	
   its	
   infancy	
   at	
   under	
   10%	
   of	
   total	
   beer	
   market).	
   For	
  
Underhill,	
  this	
  data	
  is	
  quite	
  important.	
  As	
  the	
  venture	
  focuses	
  on	
  Craft	
  Beer	
  at	
  a	
  retail	
  level,	
  
understanding	
  the	
  behavior	
  of	
  women	
  with	
  regards	
  to	
  Craft	
  Beer	
  will	
  be	
  crucial	
  in	
  creating	
  a	
  
targeted	
   marketing	
   strategy	
   and	
   capturing	
   more	
   market	
   share.	
   “Marketers	
   may	
   have	
  
opportunities	
  to	
  invest	
  more	
  in	
  targeting	
  women	
  for	
  their	
  true-­‐/mass-­‐craft	
  beer	
  brands,	
  since	
  
their	
  usage	
  likelihood	
  isn’t	
  considerably	
  different	
  than	
  men.”3
	
  Research	
  into	
  craft	
  beer’s	
  success	
  
in	
  the	
  female	
  market	
  could	
  provide	
  valuable	
  insights	
  into	
  why	
  women	
  are	
  drinking	
  craft	
  beer	
  at	
  
a	
  rate	
  similar	
  to	
  men.	
  
This	
  research	
  project	
  aims	
  to	
  answer	
  the	
  two	
  following	
  questions:	
  
What	
  are	
  the	
  attributes	
  of	
  Craft	
  Beer	
  that	
  are	
  attractive	
  to	
  women?	
  
What	
  can	
  Underhill	
  Brewery	
  do	
  to	
  better	
  market	
  its	
  products	
  towards	
  women?	
  
	
  
IV.	
   Methodology	
  
The	
  research	
  project	
  was	
  broken	
  up	
  into	
  two	
  steps.	
  The	
  goal	
  for	
  Part	
  1	
  of	
  the	
  research	
  project	
  
was	
  to	
  determine	
  certain	
  attitudes	
  and	
  behaviors	
  of	
  women	
  between	
  the	
  ages	
  of	
  22	
  and	
  45	
  
surrounding	
  craft	
  beer.	
  More	
  specifically,	
  the	
  team	
  wanted	
  to	
  discover	
  which	
  attributes	
  of	
  craft	
  
beer	
  are	
  important	
  to	
  women	
  and	
  why.	
  Analyzing	
  women’s	
  understanding	
  of	
  Craft	
  Beer	
  and	
  
their	
  attitudes	
  and	
  behaviors	
  towards	
  the	
  product	
  was	
  the	
  key	
  to	
  finding	
  a	
  way	
  to	
  capitalize	
  on	
  
this	
  market	
  segment.	
  The	
  information	
  would	
  help	
  us	
  prepare	
  for	
  the	
  second	
  part	
  of	
  the	
  project	
  
3
	
  Kraushaar,	
  Amy,	
  Beer	
  -­‐	
  US	
  -­‐	
  January	
  2015,	
  Mintel,	
  January	
  2015	
  
6
in	
  finding	
  out	
  the	
  essential	
  question:	
  How	
  should	
  Underhill	
  Brewery,	
  which	
  makes	
  Craft	
  Beer,	
  
better	
  direct	
  its	
  marketing	
  efforts	
  toward	
  this	
  target	
  market?	
  
	
  
Part	
  1:	
  
In-­‐Depth	
  Interviews	
  
The	
   team	
   conducted	
   20	
   in-­‐depth	
   interviews	
   with	
   women	
   between	
   the	
   ages	
   of	
   23	
   and	
   36.	
  
Questions	
   revolved	
   around	
   basic	
   demographic	
   information	
   such	
   as	
   age	
   and	
   income,	
   non-­‐
drinking	
   related	
   habits	
   such	
   as	
   profession	
   hobbies,	
   and	
   of	
   course	
   their	
   alcohol	
   consumption	
  
such	
  as	
  drink	
  preference	
  and	
  reasoning	
  behind	
  it.	
  We	
  also	
  dove	
  into	
  some	
  marketing-­‐related	
  
questions,	
  in	
  order	
  to	
  see	
  if	
  this	
  was	
  even	
  a	
  conscious	
  issue	
  for	
  our	
  demographic.	
  A	
  full	
  list	
  of	
  
the	
   questions	
   used	
   as	
   well	
   as	
   a	
   complete	
   look	
   at	
   the	
   major	
   findings	
   gathered	
   during	
   the	
  
interviews	
  are	
  provided	
  in	
  the	
  appendix.	
  	
  
The	
  three	
  attributes	
  below	
  were	
  the	
  most	
  important	
  ones	
  to	
  focus	
  on	
  for	
  the	
  conjoint	
  analysis	
  
in	
  Part	
  2:	
  
a. Flavor	
  
Do	
  women	
  want	
  a	
  sweet	
  or	
  bitter	
  beer?	
  Should	
  it	
  be	
  colorful	
  and	
  have	
  a	
  high	
  
level	
  of	
  flavor	
  complexity	
  as	
  the	
  tongue’s	
  palette	
  absorbs	
  each	
  individually?	
  Or	
  
should	
  it	
  be	
  straightforward	
  and	
  easily	
  readable	
  in	
  terms	
  of	
  taste?	
  Should	
  it	
  be	
  
fruity,	
  citrusy,	
  and	
  aromatic	
  or	
  should	
  it	
  be	
  more	
  malty,	
  bready,	
  or	
  grainy?	
  
	
  
	
  
7
b. Fullness	
  
Do	
  women	
  prefer	
  a	
  lighter	
  beer,	
  one	
  that	
  is	
  often	
  referred	
  to	
  as	
  a	
  summer	
  beer,	
  
leaving	
  a	
  feeling	
  of	
  freshness?	
  Or	
  do	
  women	
  prefer	
  a	
  rounder	
  beer,	
  one	
  that	
  is	
  
usually	
  heavy	
  and	
  more	
  filling?	
  
c. Alcohol	
  by	
  volume	
  (ABV)	
  
Is	
  the	
  level	
  of	
  alcohol	
  a	
  beer	
  has	
  import	
  to	
  female	
  beer	
  drinkers?	
  Do	
  they	
  prefer	
  
beers	
   that	
   have	
   a	
   higher	
   or	
   lower	
   alcohol	
   percentage?	
   We	
   believe	
   that	
   most	
  
craft	
   beer	
   drinkers	
   do	
   not	
   drink	
   for	
   the	
   purpose	
   of	
   getting	
   drunk	
   (it’s	
   more	
  
efficient	
   to	
   drink	
   several	
   shots	
   of	
   hard	
   liquor).	
   What	
   is	
   the	
   preferred	
   ABV	
   of	
  
female	
  craft	
  beer	
  drinkers?	
  
	
  
Part	
  2:	
  
Conjoint	
  Analysis:	
  Testing	
  the	
  Attributes	
  of	
  Craft	
  Beer	
  
The	
   research	
   showed	
   that	
   female	
   beer	
   drinkers	
   (both	
   craft	
   and	
   non-­‐craft)	
   and	
   non-­‐beer	
  
drinkers	
  alike	
  did	
  have	
  a	
  similar	
  palette	
  when	
  it	
  came	
  to	
  picking	
  a	
  drink	
  of	
  their	
  preference.	
  The	
  
goal	
  for	
  Underhill	
  Brewery	
  would	
  be	
  to	
  create	
  beers	
  that	
  are	
  made	
  up	
  of	
  the	
  various	
  flavors,	
  
types,	
  and	
  attributes	
  women	
  would	
  be	
  most	
  interested	
  in.	
  If	
  the	
  team	
  were	
  able	
  to	
  find	
  the	
  
perfect	
  formulas	
  for	
  a	
  small	
  line	
  of	
  beers	
  (maybe	
  three	
  of	
  four	
  kinds),	
  the	
  brewery	
  could	
  win	
  
over	
   an	
   entire	
   market	
   segment.	
   The	
   interviews	
   in	
   part	
   1	
   provided	
   much	
   insight	
   into	
   what	
  
women	
  are	
  looking	
  for	
  in	
  Craft	
  Beer,	
  and	
  part	
  2	
  consisted	
  of	
  testing	
  these	
  findings.	
  
8
To	
  answer	
  the	
  second	
  question	
  about	
  what	
  attributes	
  our	
  beer	
  itself	
  should	
  have,	
  the	
  team	
  
used	
  the	
  conjoint	
  analysis	
  method.	
  As	
  it	
  is	
  evident	
  that	
  the	
  team	
  could	
  not	
  actually	
  produce	
  a	
  
myriad	
  of	
  different	
  kinds	
  of	
  beers,	
  we	
  relied	
  on	
  potential	
  consumers’	
  selections	
  of	
  what	
  beer	
  
they	
  would	
  choose,	
  were	
  they	
  all	
  on	
  a	
  menu.	
  
1. We	
  presented	
  respondents	
  with	
  several	
  product	
  options,	
  each	
  version	
  with	
  a	
  different	
  
combination	
  of	
  attributes	
  (X’s).	
  
2. Respondents	
  provided	
  overall	
  rating	
  (S’s)	
  for	
  each	
  of	
  these	
  product	
  options.	
  
3. We	
   entered	
   attribute	
   values	
   (X’s)	
   and	
   ratings	
   of	
   product	
   options	
   (S’s)	
   into	
   conjoint	
  
analysis	
  to	
  determine	
  attribute	
  preferences	
  and	
  how	
  much	
  respondents	
  care	
  about	
  each	
  
attribute	
  relative	
  to	
  the	
  other	
  attributes	
  (W’s).	
  
4. We	
  used	
  the	
  output	
  to	
  calculate	
  tradeoffs	
  between	
  attributes	
  if	
  desired.	
  
	
  
In	
  order	
  to	
  quantify	
  our	
  findings,	
  we	
  decided	
  to	
  add	
  a	
  fourth	
  attribute,	
  namely	
  price,	
  into	
  the	
  
mix,	
  to	
  create	
  a	
  total	
  of	
  16	
  different	
  kinds	
  of	
  beers:	
  
Beer	
   Flavor	
   Fullness	
   ABV	
   Price	
  
A	
   Citrusy/Fruity	
   Light	
   Low	
  (4%)	
   Low	
  ($6)	
  
B	
   Citrusy/Fruity	
   Light	
   Low	
  (4%)	
   High	
  ($8)	
  
C	
   Citrusy/Fruity	
   Full	
   Low	
  (4%)	
   Low	
  ($6)	
  
D	
   Citrusy/Fruity	
   Full	
   Low	
  (4%)	
   High	
  ($8)	
  
E	
   Malty/Bready	
   Light	
   Low	
  (4%)	
   Low	
  ($6)	
  
F	
   Malty/Bready	
   Light	
   Low	
  (4%)	
   High	
  ($8)	
  
G	
   Malty/Bready	
   Full	
   Low	
  (4%)	
   Low	
  ($6)	
  
H	
   Malty/Bready	
   Full	
   Low	
  (4%)	
   High	
  ($8)	
  
9
I	
   Citrusy/Fruity	
   Light	
   High	
  (7%)	
   Low	
  ($6)	
  
J	
   Citrusy/Fruity	
   Light	
   High	
  (7%)	
   High	
  ($8)	
  
K	
   Citrusy/Fruity	
   Full	
   High	
  (7%)	
   Low	
  ($6)	
  
L	
   Citrusy/Fruity	
   Full	
   High	
  (7%)	
   High	
  ($8)	
  
M	
   Malty/Bready	
   Light	
   High	
  (7%)	
   Low	
  ($6)	
  
N	
   Malty/Bready	
   Light	
   High	
  (7%)	
   High	
  ($8)	
  
O	
   Malty/Bready	
   Full	
   High	
  (7%)	
   Low	
  ($6)	
  
P	
   Malty/Bready	
   Full	
   High	
  (7%)	
   High	
  ($8)	
  
	
  
We	
  realized	
  and	
  understood	
  that	
  16	
  such	
  similar	
  choices	
  and	
  questions	
  would	
  be	
  too	
  many	
  for	
  
participants	
   to	
   answer	
   all,	
   assuming	
   they	
   would	
   get	
   tired	
   by	
   the	
   end	
   of	
   it	
   and	
   not	
   be	
   as	
  
concentrated,	
   rendering	
   less	
   useful	
   responses.	
   Using	
   Qualitrics,	
   we	
   were	
   therefore	
   able	
   to	
  
allow	
  each	
  participant	
  to	
  only	
  see	
  eight	
  of	
  the	
  sixteen	
  combinations.	
  For	
  each	
  participant,	
  both	
  
which	
  eight	
  beers	
  are	
  shown	
  as	
  well	
  as	
  the	
  order	
  in	
  which	
  they	
  are	
  shown	
  will	
  be	
  random	
  and	
  
equal.	
  For	
  clarification	
  purposes,	
  the	
  terms	
  ABV,	
  citrusy/fruity	
  taste,	
  malty/bready	
  taste,	
  light-­‐
bodied,	
   and	
   full-­‐bodied	
   will	
   all	
   come	
   with	
   a	
   short	
   description	
   in	
   order	
   to	
   help	
   participants	
  
visualize	
  the	
  beers	
  as	
  much	
  as	
  possible.	
  Participants	
  will	
  be	
  asked	
  to	
  rate	
  the	
  likelihood	
  of	
  them	
  
ordering	
  the	
  specific	
  beer	
  on	
  a	
  scale	
  of	
  1	
  -­‐	
  9.	
  A	
  total	
  of	
  116	
  women	
  within	
  our	
  target	
  market	
  
responded	
  to	
  this	
  survey	
  for	
  the	
  conjoint	
  analysis.	
  
	
  
	
  
	
  
10
The	
  below	
  is	
  an	
  example	
  of	
  one	
  of	
  the	
  beer	
  variations	
  provided	
  in	
  the	
  survey:	
  
Imagine	
  you're	
  at	
  a	
  bar,	
  and	
  you	
  decide	
  to	
  try	
  a	
  new	
  beer.	
  The	
  beer	
  has	
  4%	
  ABV,	
  
and	
  is	
  described	
  as	
  having	
  a	
  citrusy/fruity	
  taste	
  with	
  a	
  light	
  body.	
  The	
  beer	
  costs	
  $6.	
  	
  
Definitions:	
  ABV	
  -­‐	
  Alcohol	
  by	
  Volume	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  Citrusy/Fruity	
  -­‐	
  sweet	
  and	
  tart	
  with	
  orange	
  /	
  grapefruit	
  tones	
  	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  Light	
  Body	
  -­‐	
  highly	
  carbonated,	
  light	
  taste	
  	
  
How	
  likely	
  are	
  you	
  to	
  order	
  this	
  beer?	
  
	
  
	
  
Note	
  
The	
  founder	
  of	
  Underhill	
  will	
  be	
  eventually	
  creating	
  beers	
  that	
  will	
  test	
  some	
  of	
  these	
  scenarios.	
  
While	
  they	
  are	
  beyond	
  the	
  scope	
  of	
  this	
  project,	
  Underhill	
  intends	
  to	
  create	
  8	
  distinct	
  beers	
  to	
  
test	
  the	
  same	
  attributes	
  “in	
  reality.”	
  This	
  will	
  have	
  the	
  twofold	
  effect	
  of	
  creating	
  a	
  more	
  precise	
  
test,	
  as	
  well	
  confirming	
  the	
  reliability	
  of	
  the	
  method.	
  If	
  the	
  results	
  are	
  the	
  same	
  for	
  both	
  the	
  
conjoint	
  analysis	
  and	
  the	
  real	
  beers,	
  Underhill	
  will	
  feel	
  more	
  secure	
  in	
  using	
  such	
  a	
  method	
  in	
  
the	
  future.	
  	
  
Defining	
   flavor	
   characteristics	
   with	
   words	
   is	
   a	
   limitation,	
   but	
   the	
   survey	
   itself	
   can	
   provide	
  
valuable	
  information	
  for	
  marketing	
  purposes.	
  For	
  example,	
  malty/bready	
  may	
  not	
  be	
  clear	
  to	
  
some	
  women,	
  and	
  alternative	
  descriptions	
  may	
  be	
  presented	
  or	
  uncovered	
  during	
  the	
  test.	
  if	
  
that	
  is	
  the	
  case,	
  when	
  Underhill	
  provides	
  descriptions	
  of	
  the	
  various	
  beers,	
  the	
  brewery	
  will	
  be	
  
able	
  to	
  provide	
  more	
  relevant	
  descriptors.	
  
	
  
11
V.	
   Major	
  Findings	
  of	
  Interviews	
  and	
  Conjoint	
  Analysis	
  
Promotion:	
  Information	
  and	
  Education	
  About	
  Craft	
  Beer	
  
Like	
  with	
  any	
  product,	
  it’s	
  important	
  to	
  have	
  an	
  audience	
  that	
  finds	
  you	
  interesting.	
  If	
  there	
  is	
  
no	
  information	
  out	
  there,	
  though,	
  there	
  is	
  nothing	
  to	
  be	
  interested	
  in.	
  Our	
  findings	
  showed	
  that	
  
information	
  about	
  craft	
  beer	
  was	
  not	
  only	
  lacking,	
  but	
  of	
  interest	
  to	
  our	
  target	
  demographic.	
  All	
  
but	
  two	
  of	
  the	
  women	
  interviewed	
  expressed	
  that	
  they	
  would	
  be	
  much	
  more	
  likely	
  to	
  purchase	
  
a	
   craft	
   beer	
   if	
   they	
   knew	
   more	
   about	
   them.	
   This	
   educational	
   aspect	
   was	
   the	
   single	
   most	
  
consistent	
  response,	
  with	
  18	
  out	
  of	
  20	
  women	
  showing	
  interest	
  in	
  knowing	
  more.	
  By	
  coming	
  up	
  
with	
  what	
  specific	
  information	
  would	
  be	
  useful	
  to	
  these	
  women,	
  we	
  hope	
  to	
  be	
  able	
  to	
  win	
  
them	
   over	
   and	
   give	
   craft	
   beer	
   a	
   chance.	
   The	
   current	
   marketing	
   landscape	
   is	
   evidence	
   that,	
  
currently,	
  craft	
  beer	
  breweries	
  are	
  not	
  trying	
  to	
  educate	
  their	
  drinkers.	
  	
  
The	
  team	
  recommends	
  that	
  Underhill	
  take	
  advantage	
  of	
  this	
  opportunity,	
  and	
  aim	
  to	
  fill	
  the	
  
gap.	
  
The	
  below	
  suggestions	
  were	
  made	
  during	
  the	
  interviews,	
  and	
  the	
  team	
  recommends	
  Underhill	
  
fold	
  them	
  into	
  its	
  marketing	
  strategy:	
  
d. The	
  story	
  behind	
  the	
  founder	
  and	
  brewery,	
  and	
  each	
  beer	
  (origin,	
  what	
  it	
  means	
  
to	
  the	
  brewery,	
  why	
  Underhill	
  values	
  these	
  beers,	
  what	
  makes	
  them	
  different...)	
  
e. Relating	
  the	
  brand	
  to	
  the	
  marketing	
  endeavor.	
  How	
  does	
  the	
  specific	
  marketing	
  
endeavor	
  fit	
  into	
  the	
  Underhill	
  brand?	
  For	
  example,	
  if	
  Underhill	
  decides	
  to	
  to	
  a	
  
beer	
  and	
  cheese	
  pairing	
  night,	
  how	
  does	
  this	
  event	
  fit	
  into	
  Underhill’s	
  farm-­‐to-­‐
12
table	
  identity?	
  A	
  direct	
  link	
  between	
  the	
  mission	
  and	
  the	
  marketing	
  may	
  need	
  to	
  
be	
  established.	
  
f. How	
   a	
   flavor	
   relates	
   to	
   what	
   customers	
   already	
   know	
   and	
   can	
   relate	
   to.	
   For	
  
example,	
  relating	
  the	
  flavors	
  of	
  Underhill’s	
  IPA	
  to	
  oranges,	
  grapefruit,	
  and	
  freshly	
  
baked	
  bread.	
  
g. Specific	
  classes,	
  parties,	
  and	
  tastings	
  for	
  women	
  only.	
  This	
  was	
  suggested	
  as	
  fun	
  
events	
  for	
  “girls	
  night	
  out”	
  as	
  well	
  as	
  good	
  events	
  for	
  women	
  whose	
  significant	
  
others	
  drinks	
  Craft	
  Beer	
  and	
  want	
  to	
  join	
  in	
  the	
  hobby.	
  
	
  
Product:	
  Citrusy	
  and	
  high	
  ABV	
  most	
  important	
  
Using	
  conjoint	
  analysis,	
  our	
  regression	
  testing	
  discovered	
  that	
  three	
  of	
  our	
  four	
  attributes	
  are	
  
statistically	
   significant	
   in	
   determining	
   female	
   consumer's	
   subjective	
   utility:	
   flavor,	
   alcohol	
   by	
  
volume,	
  and	
  price.	
  Our	
  survey	
  showed	
  that	
  flavor	
  is	
  the	
  most	
  important	
  factor	
  tested.	
  A	
  change	
  
in	
  flavor	
  from	
  malty/bready	
  to	
  citrusy/fruity	
  is	
  worth	
  $5.38	
  to	
  our	
  average	
  female	
  consumer	
  in	
  
our	
   target	
   demographic.	
   For	
   alcohol	
   by	
   volume	
   (ABV),	
   we	
   tested	
   4%	
   and	
   7%.	
   Our	
   results	
  
showed	
  that	
  an	
  increase	
  in	
  ABV	
  by	
  3%	
  is	
  worth	
  $2.45	
  to	
  our	
  average	
  female	
  consumer.	
  Next,	
  
price	
   was	
   relatively	
   important,	
   too.	
   We	
   tested	
   $6	
   vs.	
   $8	
   for	
   a	
   pint	
   of	
   beer,	
   and	
   our	
   results	
  
showed	
   that	
   a	
   lower	
   price	
   is	
   worth	
   .205	
   subjective	
   utility	
   points	
   per	
   dollar	
   to	
   our	
   average	
  
female	
  consumer.	
  
With	
  this	
  information	
  in	
  mind,	
  we	
  can	
  see	
  that	
  the	
  beer	
  that	
  will	
  result	
  in	
  the	
  most	
  satisfied	
  
female	
  consumers	
  is	
  one	
  that	
  has	
  a	
  citrusy/fruity	
  flavor,	
  a	
  high	
  ABV,	
  and	
  a	
  low	
  price.	
  It	
  is	
  worth	
  
13
noting	
  that	
  while	
  the	
  results	
  about	
  the	
  body/weight	
  of	
  the	
  beer	
  was	
  not	
  statistically	
  significant,	
  
customers	
  tended	
  to	
  favor	
  a	
  lighter	
  beer	
  over	
  a	
  heavier	
  beer.	
  
	
  
VI.	
   Conclusion	
  and	
  Recommendations	
  
Underhill	
  Brewery’s	
  research	
  and	
  findings	
  throughout	
  this	
  research	
  project	
  have	
  resulted	
  in	
  a	
  
concise	
  and	
  clear	
  conclusion,	
  allowing	
  us	
  to	
  make	
  substantial	
  recommendations	
  that	
  will	
  surely	
  
lead	
   to	
   the	
   brewery’s	
   lasting	
   success.	
   The	
   famous	
   Four	
   P’s	
   of	
   Marketing	
   are	
   Price,	
   Product,	
  
Promotion,	
   and	
   Place.	
   We	
   have	
   come	
   up	
   with	
   a	
   formula	
   that	
   addresses	
   all	
   four	
   of	
   these	
  
matters.	
  
Firstly,	
  we	
  had	
  already	
  decided	
  on	
  place.	
  Underhill	
  Brewery	
  will	
  be	
  located	
  in	
  Queens’	
  Long	
  
Island	
  City,	
  and	
  hopes	
  to	
  open	
  its	
  doors	
  in	
  late	
  2016.	
  An	
  up-­‐and-­‐coming,	
  newly	
  gentrified	
  and	
  
hipsterized	
  area,	
  this	
  part	
  of	
  New	
  York	
  City	
  is	
  open	
  to	
  and	
  welcoming	
  of	
  new	
  breweries	
  and	
  
craft	
  beer	
  aficionados.	
  
Secondly,	
   let	
   us	
   turn	
   to	
   the	
   product	
   itself.	
   Prior	
   to	
   this	
   research	
   project,	
   Underhill	
   Brewery	
  
already	
  had	
  a	
  relatively	
  clear	
  idea	
  of	
  what	
  kind	
  of	
  craft	
  beer	
  it	
  was	
  going	
  to	
  brew,	
  and	
  what	
  
flavor	
  elements	
  were	
  going	
  to	
  be	
  used.	
  Thanks	
  to	
  the	
  extensive	
  research	
  done	
  on	
  the	
  female	
  
segment	
  alone,	
  though,	
  product	
  ideation	
  came	
  into	
  the	
  mix	
  of	
  our	
  findings.	
  By	
  surveying	
  116	
  
women	
  in	
  our	
  target	
  demographic	
  and	
  asking	
  them	
  to	
  rank	
  a	
  total	
  of	
  16	
  different	
  beers	
  from	
  1-­‐
9,	
  we	
  were	
  able	
  to	
  identify	
  which	
  beers	
  would	
  be	
  most	
  and	
  least	
  favored.	
  With	
  an	
  average	
  of	
  
6.46,	
  Beer	
  I	
  (citrusy/fruity,	
  light-­‐bodied,	
  7%	
  ABV,	
  $6)	
  received	
  the	
  highest	
  rating.	
  In	
  contrast,	
  
Beer	
  F	
  (malty/bready,	
  light-­‐bodied,	
  4%	
  ABV,	
  $8)	
  received	
  the	
  lowest	
  rating	
  with	
  an	
  average	
  of	
  
14
4.23.	
  As	
  our	
  detailed	
  regression	
  analysis	
  in	
  the	
  previous	
  section	
  explained,	
  we	
  learned	
  to	
  stay	
  
clear	
  of	
  malty/bready	
  flavored-­‐beers,	
  and	
  aim	
  to	
  have	
  a	
  higher	
  rather	
  than	
  lower	
  ABV.	
  Women	
  
tended	
  to	
  prefer	
  light-­‐bodied	
  beers,	
  but	
  this	
  was	
  the	
  weakest	
  indicator	
  of	
  likelihood	
  to	
  order.	
  
Next,	
  we	
  were	
  able	
  to	
  determine	
  a	
  reasonable	
  price	
  point,	
  and	
  understand	
  price	
  elasticity	
  and	
  
sensitivity	
  of	
  the	
  consumer.	
  We	
  have	
  concluded	
  that	
  $6.5	
  will	
  be	
  our	
  average	
  price,	
  with	
  some	
  
beers	
  above	
  and	
  below.	
  Using	
  Dan	
  Ariely’s	
  pricing	
  studies	
  about	
  adding	
  seemingly	
  “useless”	
  
options,4,5
	
  we	
  can	
  list	
  some	
  beers	
  likely	
  no	
  one	
  will	
  choose	
  at	
  prices	
  that	
  will	
  serve	
  purely	
  as	
  
anchors	
  for	
  our	
  consumers.	
  This	
  will	
  decrease	
  price	
  sensitivity,	
  and	
  we	
  will	
  be	
  able	
  to	
  win	
  a	
  
larger	
  profit	
  margin.	
  
Last	
  but	
  not	
  least,	
  we	
  have	
  come	
  to	
  understand	
  our	
  target	
  demographic	
  in	
  terms	
  of	
  what	
  they	
  
are	
  looking	
  for	
  in	
  promotion	
  and	
  marketing	
  geared	
  towards	
  them.	
  Avoiding	
  macrobrewery	
  type	
  
advertisements	
  on	
  television	
  or	
  subways,	
  Underhill	
  Brewery	
  will	
  use	
  direct	
  targeting	
  and	
  micro-­‐
marketing	
  tools	
  to	
  reach	
  its	
  target.	
  Examples	
  of	
  this	
  are	
  tastings	
  and	
  smaller	
  events	
  designed	
  
for	
  our	
  target	
  specifically,	
  writing	
  the	
  story	
  of	
  the	
  origin	
  of	
  Underhill	
  Brewery	
  and	
  its	
  beers	
  in	
  
the	
  menu,	
  and	
  including	
  educational	
  facts	
  such	
  as	
  the	
  brewing	
  process	
  and	
  ingredients	
  about	
  
beers	
  in	
  general	
  and	
  the	
  specific	
  beers	
  on	
  the	
  menu.	
  
We	
   believe	
   that	
   we	
   have	
   been	
   able	
   to	
   identify	
   whom	
   we	
   should	
   try	
   and	
   target	
   in	
   order	
   to	
  
capitalize	
  on	
  a	
  currently	
  untapped	
  market	
  segment,	
  with	
  what	
  product	
  definitions	
  we	
  should	
  do	
  
it,	
  and	
  how	
  we	
  will	
  be	
  able	
  to	
  do	
  it	
  successfully.	
  We	
  are	
  convinced	
  that	
  this	
  research	
  has	
  given	
  
Underhill	
  Brewery	
  what	
  it	
  needs	
  for	
  a	
  successful	
  launch	
  and	
  many	
  profitable	
  years	
  to	
  come.	
  
4
	
  Ariely,	
  Dan,	
  Predictably	
  Irrational,	
  Harper	
  Perennial,	
  2010	
  
5
	
  Ariely,	
  Dan,	
  Pricing	
  the	
  Economist,	
  YouTube,	
  www.youtube.com/watch?v=xOhb4LwAaJk,	
  uploaded	
  Dec	
  17,	
  2009	
  
15
VII.	
   Appendix	
  
In-­‐depth	
  interview	
  findings	
  
	
  
Out	
  of	
  the	
  20	
  women	
  we	
  interviewed,	
  12	
  of	
  them	
  regularly	
  choose	
  beer,	
  and	
  8	
  of	
  them	
  choose	
  
other	
  drinks.	
  All	
  of	
  the	
  data	
  was	
  used	
  for	
  the	
  findings.	
  
	
  	
  
9	
  women	
  reported	
  having	
  3	
  to	
  4	
  drinks	
  when	
  at	
  a	
  bar.	
  
8	
  women	
  reported	
  having	
  1	
  to	
  2	
  drinks	
  when	
  at	
  a	
  bar.	
  
2	
  women	
  reported	
  having	
  over	
  4	
  drinks	
  when	
  at	
  a	
  bar.	
  
1	
  woman	
  did	
  not	
  typically	
  drink	
  alcohol	
  when	
  at	
  a	
  bar.	
  
	
  	
  
1. When	
   shopping	
   for	
   groceries,	
   quality	
   was	
   important	
   to	
   all	
   respondents.	
   Freshness	
   and	
  
price	
  were	
  also	
  quite	
  important,	
  and	
  most	
  preferred	
  organic	
  products.	
  
2. Surprisingly,	
  “local”	
  was	
  not	
  an	
  important	
  aspect	
  of	
  the	
  choice	
  of	
  drink,	
  unless	
  the	
  beer	
  
was	
  actually	
  brewed	
  on	
  premise.	
  
3. The	
   choices	
   of	
   drinks	
   that	
   were	
   not	
   beer	
   were	
   mostly	
   cocktails	
   and	
   wine.	
   The	
   reasons	
  
behind	
  these	
  choices	
  were	
  taste/flavor	
  and	
  health.	
  Wine	
  and	
  cocktails	
  were	
  seen	
  as	
  more	
  
healthy	
  than	
  beer.	
  
4. For	
   those	
   that	
   did	
   not	
   choose	
   beer,	
   their	
   perceptions	
   of	
   beer	
   drinkers	
   were	
  
overwhelmingly	
   	
   of	
   unsophisticated	
   men	
   drinking	
   in	
   order	
   to	
   get	
   drunk.	
   The	
   recurring	
  
attributes	
  were	
  “frat	
  boy,”	
  “sports	
  loving,”	
  and	
  “loud.”	
  
5. 3	
  of	
  the	
  women	
  that	
  did	
  not	
  choose	
  beer	
  also	
  added	
  that	
  there	
  also	
  exists	
  a	
  group	
  that	
  
drinks	
   beer	
   for	
   flavor,	
   similar	
   to	
   wine	
   drinkers.	
   Women	
   were	
   included	
   in	
   this	
   group,	
   as	
  
opposed	
  to	
  the	
  notion	
  of	
  guys	
  drinking	
  to	
  get	
  drunk.	
  
6. Within	
  the	
  group	
  that	
  did	
  not	
  choose	
  beer,	
  they	
  knew	
  very	
  little	
  about	
  craft	
  beer,	
  only	
  that	
  
there	
  was	
  a	
  difference	
  between	
  craft	
  beer	
  and	
  mass-­‐produced	
  beer.	
  None	
  could	
  identify	
  
the	
  concrete	
  differences,	
  though.	
  
7. For	
  the	
  women	
  who	
  did	
  not	
  choose	
  beer	
  to	
  consider	
  trying	
  a	
  craft	
  beer,	
  the	
  attributes	
  that	
  
were	
  most	
  important	
  were	
  full	
  flavor,	
  low	
  alcohol,	
  low	
  bitterness,	
  light	
  and	
  refreshing,	
  and	
  
sweetness	
  as	
  opposed	
  to	
  tartness	
  or	
  bitterness.	
  
8. Most	
  of	
  the	
  women	
  who	
  did	
  not	
  choose	
  either	
  beer	
  or	
  craft	
  beer	
  said	
  they	
  would	
  be	
  much	
  
more	
  inclined	
  to	
  try	
  them	
  if	
  they	
  knew	
  more	
  about	
  them.	
  
Information	
  about	
  the	
  flavors	
  and	
  health	
  impacts	
  was	
  of	
  most	
  interest.	
  
9. For	
  women	
  who	
  did	
  choose	
  craft	
  beer,	
  the	
  choices	
  of	
  beer	
  were	
  quite	
  varied.	
  
Belgian-­‐style,	
  light	
  beers,	
  citrusy,	
  and	
  non-­‐bitter	
  IPAs	
  were	
  most	
  common.	
  
16
10. The	
  reasons	
  for	
  choosing	
  beer	
  were	
  flavor,	
  uniqueness,	
  low	
  bitterness,	
  citrus	
  flavors,	
  low	
  
alcohol	
  (can	
  drink	
  more	
  without	
  getting	
  drunk),	
  knowledge	
  of	
  the	
  beer	
  in	
  question,	
  and	
  
price.	
  
11. Craft	
  beer	
  drinkers	
  are	
  seen	
  as	
  more	
  social	
  drinkers	
  (as	
  opposed	
  to	
  drink-­‐to-­‐get-­‐drunk),	
  
more	
  informed,	
  used	
  to	
  higher-­‐quality	
  products,	
  and	
  younger.	
  
12. The	
  craft	
  beer	
  industry	
  was	
  understood	
  as	
  an	
  opposition	
  to	
  mass-­‐production.	
  
There	
   was	
   much	
   more	
   variety	
   in	
   the	
   types	
   of	
   beers	
   offered,	
   smaller	
   scale	
   production,	
  
fancier,	
  and	
  with	
  more	
  personality.	
  
13. All	
  of	
  the	
  beer	
  drinkers	
  said	
  that	
  they	
  would	
  be	
  much	
  more	
  inclined	
  to	
  consume	
  craft	
  beer	
  
if	
  they	
  knew	
  more	
  about	
  the	
  beers.	
  
The	
   most	
   valuable	
   information	
   was	
   flavor	
   descriptions,	
   style,	
   alcohol	
   level,	
   ingredients,	
  
technique,	
  and	
  the	
  story	
  behind	
  the	
  beer.	
  
14. Attractiveness	
  of	
  tap	
  handles	
  or	
  bottle	
  packaging	
  was	
  only	
  mildly	
  important,	
  respondents	
  
thought	
  it	
  could	
  influence	
  choice	
  if	
  there	
  were	
  no	
  other	
  cues,	
  but	
  other	
  attributes	
  such	
  as	
  
knowledge	
  of	
  the	
  beer	
  or	
  flavor	
  of	
  the	
  beer	
  were	
  much	
  more	
  important.	
  
15. All	
  respondents	
  reported	
  no	
  marketing	
  efforts	
  from	
  Craft	
  Breweries.	
  
16. All	
   respondents	
   reported	
   mass-­‐produced	
   beer	
   marketing	
   was	
   directed	
   towards	
   men.	
  
Sports	
  and	
  beautiful	
  women	
  were	
  the	
  focus	
  for	
  all	
  the	
  examples.	
  
17. When	
  asked	
  what	
  craft	
  beer	
  marketers	
  should	
  do	
  differently,	
  most	
  respondents	
  suggested	
  
marketing	
   with	
   no	
   emphasis	
   on	
   sexualized	
   women,	
   sports,	
   and	
   drunkenness,	
   and	
   more	
  
emphasis	
  on	
  the	
  story	
  behind	
  the	
  brand,	
  the	
  taste	
  of	
  the	
  beer	
  (as	
  opposed	
  to	
  “coldness”),	
  
health	
   benefits,	
   quality	
   ingredients,	
   and	
   better	
   information.	
   Many	
   suggested	
   showing	
  
professional	
  women	
  having	
  beer	
  over	
  lunch	
  rather	
  than	
  men	
  at	
  sporting	
  events.	
  
	
  
	
  
	
   	
  
17
Conjoint	
  Analysis	
  Findings	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
18
	
  
	
  
	
  
	
  
	
  
19
	
  
	
  
	
  
	
  
	
  
20
	
  
	
  	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
   	
  
21
VIII.	
   Bibliography	
  
Ariely,	
  Dan,	
  Predictably	
  Irrational,	
  Harper	
  Perennial,	
  2010	
  
Ariely,	
  Dan,	
  Pricing	
  the	
  Economist,	
  YouTube,	
  www.youtube.com/watch?v=xOhb4LwAaJk,	
  
uploaded	
  December	
  17,	
  2009	
  
Kraushaar,	
  Amy,	
  Beer	
  -­‐	
  US	
  -­‐	
  January	
  2015,	
  Mintel,	
  January	
  2015	
  
Mosbaugh,	
  Erin,	
  How	
  Craft	
  Beer	
  Fails	
  its	
  Female	
  Fan	
  Base,	
  First	
  We	
  Feast,	
  November	
  20,	
  2014	
  
	
   	
  
22
IX.	
   Contributions	
  
Gennaro	
  Aliperti:	
  Created	
  the	
  Qualtrics	
  survey	
  and	
  worked	
  on	
  the	
  regressions.	
  
Bryan	
  Blick:	
  Created	
  the	
  regression	
  analysis	
  and	
  the	
  accompanying	
  charts.	
  
Joseph	
  Brad	
  Boggess:	
  Provided	
  the	
  basis	
  for	
  the	
  project.	
  Formulated	
  research	
  question(s),	
  
introduction,	
  interview	
  questions,	
  as	
  well	
  as	
  drew	
  conclusions	
  from	
  findings.	
  
Benjamin	
  Bolasny:	
  More	
  closely	
  defined	
  the	
  research	
  question,	
  and	
  also	
  contributed	
  to	
  
formulating	
  interview	
  questions	
  
Miriam	
  Brownstone:	
  Explained	
  the	
  methodologies	
  and	
  formulated	
  final	
  conclusions,	
  as	
  well	
  as	
  
also	
  formulating	
  interview	
  questions	
  
Dustin	
  Bryant:	
  Analyzed	
  the	
  interview	
  responses	
  and	
  findings	
  
	
  
All	
  team	
  members	
  conducted	
  3	
  in-­‐depth	
  interviews.	
  

More Related Content

What's hot

Millennial craft beer consumers infographic
Millennial craft beer consumers infographicMillennial craft beer consumers infographic
Millennial craft beer consumers infographicCubeyou Inc
 
Business plan strategies powerpoint final brew pub
Business plan strategies powerpoint final brew pubBusiness plan strategies powerpoint final brew pub
Business plan strategies powerpoint final brew pubJeremy
 
Analyzing the Craft Beer Industry
Analyzing the Craft Beer IndustryAnalyzing the Craft Beer Industry
Analyzing the Craft Beer IndustryChris Fadule
 
Dogfish Head - Strategic Marketing Plan
Dogfish Head - Strategic Marketing PlanDogfish Head - Strategic Marketing Plan
Dogfish Head - Strategic Marketing PlanTimothy Boylan
 
Strategic Marketing Plan Maggie Beer
Strategic Marketing Plan Maggie BeerStrategic Marketing Plan Maggie Beer
Strategic Marketing Plan Maggie Beersameerinfinity
 
Craft Beer Industry
Craft Beer IndustryCraft Beer Industry
Craft Beer IndustryAditya Khare
 
Fernet Branca Competative Analysis
Fernet Branca Competative AnalysisFernet Branca Competative Analysis
Fernet Branca Competative AnalysisJordan Matteri
 
Brew Presentation
Brew PresentationBrew Presentation
Brew PresentationJessSisco
 
Stella Artois - Research and Implications
Stella Artois - Research and ImplicationsStella Artois - Research and Implications
Stella Artois - Research and ImplicationsVictor Schmidlin
 
Johnnie Walker Brand Audit
Johnnie Walker Brand AuditJohnnie Walker Brand Audit
Johnnie Walker Brand AuditRob Noble
 
Brewing More Business - Social Media Marketing Basics for Microbreweries and ...
Brewing More Business - Social Media Marketing Basics for Microbreweries and ...Brewing More Business - Social Media Marketing Basics for Microbreweries and ...
Brewing More Business - Social Media Marketing Basics for Microbreweries and ...Niki Radisic
 
Brand audit : Baileys Irish cream liquor
Brand audit : Baileys Irish cream liquor Brand audit : Baileys Irish cream liquor
Brand audit : Baileys Irish cream liquor Ian Adams
 
JackDanielsPresentation (Final).pptx
JackDanielsPresentation (Final).pptxJackDanielsPresentation (Final).pptx
JackDanielsPresentation (Final).pptxFrank Tufano
 
Consumer behaviour
Consumer behaviourConsumer behaviour
Consumer behaviourAshish Anand
 
Johnnie Walker Brand Audit
Johnnie Walker Brand AuditJohnnie Walker Brand Audit
Johnnie Walker Brand AuditSarah Kirkby
 
Retail & Grocery Store Wine Trends
 Retail & Grocery Store Wine Trends Retail & Grocery Store Wine Trends
Retail & Grocery Store Wine TrendsNapa Technology
 
Johnnie Walker Strategic Brand Management
Johnnie Walker Strategic Brand ManagementJohnnie Walker Strategic Brand Management
Johnnie Walker Strategic Brand ManagementZara Boshyk
 

What's hot (20)

Millennial craft beer consumers infographic
Millennial craft beer consumers infographicMillennial craft beer consumers infographic
Millennial craft beer consumers infographic
 
Business plan strategies powerpoint final brew pub
Business plan strategies powerpoint final brew pubBusiness plan strategies powerpoint final brew pub
Business plan strategies powerpoint final brew pub
 
Analyzing the Craft Beer Industry
Analyzing the Craft Beer IndustryAnalyzing the Craft Beer Industry
Analyzing the Craft Beer Industry
 
Dogfish Head - Strategic Marketing Plan
Dogfish Head - Strategic Marketing PlanDogfish Head - Strategic Marketing Plan
Dogfish Head - Strategic Marketing Plan
 
Strategic Marketing Plan Maggie Beer
Strategic Marketing Plan Maggie BeerStrategic Marketing Plan Maggie Beer
Strategic Marketing Plan Maggie Beer
 
minibook (1)
minibook (1)minibook (1)
minibook (1)
 
Craft Beer Industry
Craft Beer IndustryCraft Beer Industry
Craft Beer Industry
 
Lagunitas Case Study
Lagunitas Case StudyLagunitas Case Study
Lagunitas Case Study
 
Fernet Branca Competative Analysis
Fernet Branca Competative AnalysisFernet Branca Competative Analysis
Fernet Branca Competative Analysis
 
Brew Presentation
Brew PresentationBrew Presentation
Brew Presentation
 
Stella Artois - Research and Implications
Stella Artois - Research and ImplicationsStella Artois - Research and Implications
Stella Artois - Research and Implications
 
Johnnie Walker Brand Audit
Johnnie Walker Brand AuditJohnnie Walker Brand Audit
Johnnie Walker Brand Audit
 
Brewing More Business - Social Media Marketing Basics for Microbreweries and ...
Brewing More Business - Social Media Marketing Basics for Microbreweries and ...Brewing More Business - Social Media Marketing Basics for Microbreweries and ...
Brewing More Business - Social Media Marketing Basics for Microbreweries and ...
 
Brand audit : Baileys Irish cream liquor
Brand audit : Baileys Irish cream liquor Brand audit : Baileys Irish cream liquor
Brand audit : Baileys Irish cream liquor
 
JackDanielsPresentation (Final).pptx
JackDanielsPresentation (Final).pptxJackDanielsPresentation (Final).pptx
JackDanielsPresentation (Final).pptx
 
Consumer behaviour
Consumer behaviourConsumer behaviour
Consumer behaviour
 
A New Path
A New PathA New Path
A New Path
 
Johnnie Walker Brand Audit
Johnnie Walker Brand AuditJohnnie Walker Brand Audit
Johnnie Walker Brand Audit
 
Retail & Grocery Store Wine Trends
 Retail & Grocery Store Wine Trends Retail & Grocery Store Wine Trends
Retail & Grocery Store Wine Trends
 
Johnnie Walker Strategic Brand Management
Johnnie Walker Strategic Brand ManagementJohnnie Walker Strategic Brand Management
Johnnie Walker Strategic Brand Management
 

Viewers also liked

BUS360FinalProject
BUS360FinalProjectBUS360FinalProject
BUS360FinalProjectReid Harris
 
Amarillo Craft Brewing Company
Amarillo Craft Brewing CompanyAmarillo Craft Brewing Company
Amarillo Craft Brewing CompanyMatthew Helm
 
Building a National Beer Brand: The basic 101
Building a National Beer Brand: The basic 101Building a National Beer Brand: The basic 101
Building a National Beer Brand: The basic 101BeverageTradeNetwork.com
 
Short's Brewing: A Digital Marketing Strategy
Short's Brewing: A Digital Marketing StrategyShort's Brewing: A Digital Marketing Strategy
Short's Brewing: A Digital Marketing StrategyNikki DuJardin
 
ORLANDO’S® Beer Brand Strategy
ORLANDO’S® Beer Brand StrategyORLANDO’S® Beer Brand Strategy
ORLANDO’S® Beer Brand Strategyorlandosbeer
 
Ab in bev-ten_principles
Ab in bev-ten_principlesAb in bev-ten_principles
Ab in bev-ten_principlesceiestudos
 
AB InBev Presentation FINAL DRAFT
AB InBev Presentation FINAL DRAFTAB InBev Presentation FINAL DRAFT
AB InBev Presentation FINAL DRAFTSonya Frederick
 
Market Segmentation
Market SegmentationMarket Segmentation
Market SegmentationShameem Ali
 
Market Segmentation
Market SegmentationMarket Segmentation
Market SegmentationShameem Ali
 
Building Craft Beer Brands: A Talk With Award-Winning Distributors
Building Craft Beer Brands: A Talk With Award-Winning DistributorsBuilding Craft Beer Brands: A Talk With Award-Winning Distributors
Building Craft Beer Brands: A Talk With Award-Winning Distributorskathleenmjoyce
 

Viewers also liked (13)

Brownstone_BAArbeit5
Brownstone_BAArbeit5Brownstone_BAArbeit5
Brownstone_BAArbeit5
 
BUS360FinalProject
BUS360FinalProjectBUS360FinalProject
BUS360FinalProject
 
Amarillo Craft Brewing Company
Amarillo Craft Brewing CompanyAmarillo Craft Brewing Company
Amarillo Craft Brewing Company
 
Building a National Beer Brand: The basic 101
Building a National Beer Brand: The basic 101Building a National Beer Brand: The basic 101
Building a National Beer Brand: The basic 101
 
Short's Brewing: A Digital Marketing Strategy
Short's Brewing: A Digital Marketing StrategyShort's Brewing: A Digital Marketing Strategy
Short's Brewing: A Digital Marketing Strategy
 
ORLANDO’S® Beer Brand Strategy
ORLANDO’S® Beer Brand StrategyORLANDO’S® Beer Brand Strategy
ORLANDO’S® Beer Brand Strategy
 
Ab in bev-ten_principles
Ab in bev-ten_principlesAb in bev-ten_principles
Ab in bev-ten_principles
 
AB InBev Presentation FINAL DRAFT
AB InBev Presentation FINAL DRAFTAB InBev Presentation FINAL DRAFT
AB InBev Presentation FINAL DRAFT
 
10 Critical Strategies for Beer Marketing in the Digital Age
10 Critical Strategies for Beer Marketing in the Digital Age10 Critical Strategies for Beer Marketing in the Digital Age
10 Critical Strategies for Beer Marketing in the Digital Age
 
Beer marketing innovation
Beer marketing innovationBeer marketing innovation
Beer marketing innovation
 
Market Segmentation
Market SegmentationMarket Segmentation
Market Segmentation
 
Market Segmentation
Market SegmentationMarket Segmentation
Market Segmentation
 
Building Craft Beer Brands: A Talk With Award-Winning Distributors
Building Craft Beer Brands: A Talk With Award-Winning DistributorsBuilding Craft Beer Brands: A Talk With Award-Winning Distributors
Building Craft Beer Brands: A Talk With Award-Winning Distributors
 

Similar to Craft Beer Female Segment

Minglewood Creative Brief Group 3
Minglewood Creative Brief Group 3Minglewood Creative Brief Group 3
Minglewood Creative Brief Group 3Alyssa Basler
 
Shock Top Pitch Brief
Shock Top Pitch BriefShock Top Pitch Brief
Shock Top Pitch BriefCubeyou Inc
 
Asahi Campaign Notebook
Asahi Campaign NotebookAsahi Campaign Notebook
Asahi Campaign Notebookjennlutman
 
Excelent Planbook (2)
Excelent Planbook (2)Excelent Planbook (2)
Excelent Planbook (2)Kara Maricic
 
Budweiser Marketing strategy
Budweiser Marketing strategyBudweiser Marketing strategy
Budweiser Marketing strategyRohitashav Goyal
 
Beer innovation summit 30 april 2015
Beer innovation summit   30 april 2015Beer innovation summit   30 april 2015
Beer innovation summit 30 april 2015BeerForThat
 
Budweiser Assignment Adv 390
Budweiser Assignment Adv 390Budweiser Assignment Adv 390
Budweiser Assignment Adv 390robert puetz
 
Natural Light Brand Audit
Natural Light Brand AuditNatural Light Brand Audit
Natural Light Brand AuditCarson Williams
 
Marketing Audit- The New Albanian
Marketing Audit- The New AlbanianMarketing Audit- The New Albanian
Marketing Audit- The New AlbanianCheyonna Navarro
 
Wigle Whiskey Market Research - MeK
Wigle Whiskey Market Research - MeKWigle Whiskey Market Research - MeK
Wigle Whiskey Market Research - MeKElizabeth Wessing
 
Smooth Ambler Marketing Brief
Smooth Ambler Marketing Brief Smooth Ambler Marketing Brief
Smooth Ambler Marketing Brief stonehel
 

Similar to Craft Beer Female Segment (18)

CAP210-Founders
CAP210-FoundersCAP210-Founders
CAP210-Founders
 
Minglewood Creative Brief Group 3
Minglewood Creative Brief Group 3Minglewood Creative Brief Group 3
Minglewood Creative Brief Group 3
 
Shock Top Pitch Brief
Shock Top Pitch BriefShock Top Pitch Brief
Shock Top Pitch Brief
 
Business Plan
Business PlanBusiness Plan
Business Plan
 
Asahi Campaign Notebook
Asahi Campaign NotebookAsahi Campaign Notebook
Asahi Campaign Notebook
 
Excelent Planbook (2)
Excelent Planbook (2)Excelent Planbook (2)
Excelent Planbook (2)
 
Excelent Planbook
Excelent PlanbookExcelent Planbook
Excelent Planbook
 
Excelent Planbook
Excelent PlanbookExcelent Planbook
Excelent Planbook
 
Budweiser Marketing strategy
Budweiser Marketing strategyBudweiser Marketing strategy
Budweiser Marketing strategy
 
Beer innovation summit 30 april 2015
Beer innovation summit   30 april 2015Beer innovation summit   30 april 2015
Beer innovation summit 30 april 2015
 
Budweiser Assignment Adv 390
Budweiser Assignment Adv 390Budweiser Assignment Adv 390
Budweiser Assignment Adv 390
 
Natural Light Brand Audit
Natural Light Brand AuditNatural Light Brand Audit
Natural Light Brand Audit
 
Marketing Audit- The New Albanian
Marketing Audit- The New AlbanianMarketing Audit- The New Albanian
Marketing Audit- The New Albanian
 
COMM470_Team2_MoonCommPlan-2
COMM470_Team2_MoonCommPlan-2COMM470_Team2_MoonCommPlan-2
COMM470_Team2_MoonCommPlan-2
 
AB InBev Pitch
AB InBev PitchAB InBev Pitch
AB InBev Pitch
 
Wigle Whiskey Market Research - MeK
Wigle Whiskey Market Research - MeKWigle Whiskey Market Research - MeK
Wigle Whiskey Market Research - MeK
 
Document10
Document10Document10
Document10
 
Smooth Ambler Marketing Brief
Smooth Ambler Marketing Brief Smooth Ambler Marketing Brief
Smooth Ambler Marketing Brief
 

Craft Beer Female Segment

  • 1.   Craft  Beer:  Targeting  the  Female  Segment             Gennaro  Aliperti,  Bryan  Blick,  Joseph  Brad  Boggess,   Benjamin  Bolasny,  Miriam  Brownstone,  Dustin  Bryant                 Research  Project   Marketing  9716   Professor  Dr.  Chugani      
  • 2. 1 Table  of  Contents   I.   Executive  Summary                 2   II.   Introduction                     3   III.   Research  Question                   4   IV.     Methodology                   5   Part  1:  In-­‐Depth  Interviews               6   Part  2:  Conjoint  Analysis                 7   V.     Major  Findings                   11   Promotion                     11   Product                     12   VI.     Conclusions  and  Recommendations             13   VII.   Appendix                     15   VIII.   Bibliography                     21   IX.   Contributions                   22      
  • 3. 2   I.   Executive  Summary   For  this  consumer  behavior  final  project,  the  objective  was  to  find  a  company  and  answer  a   specific  marketing  question.  We  decided  to  take  a  closer  look  at  craft  beer,  and  selected  the   brewery  of  our  team  member  Joseph  Boggess.  The  brewery  is  called  Underhill  Brewery,  and  is   hoping  to  launch  in  the  Fall  of  2016  in  New  York’s  Long  Island  City.  Like  for  any  establishment,   Underhill  Brewery  is  looking  for  ways  to  increase  its  competitive  advantage  and  maximize  its   profits.   We  began  the  project  by  conducting  literary  research,  which  showed  women  are  consuming   craft  beer  disproportionately  to  regular  beer.  To  explicate,  women  make  up  only  25%  of  the   consumers  of  regular  beer,  but  37%  of  craft  beer.  This  gave  us  our  basis  and  reason  to  delve   further  into  the  subject  of  the  female  segment  within  craft  beer.  We  hoped  to  find  out  why  this   cleft  exists,  and  how  we  could  capitalize  on  it.   We   defined   our   target   market   as   upper   middle   class,   well   educated,   young,   working   professional  women  in  the  New  York  City  metro  area,  aged  21-­‐45.  Using  literary,  qualitative,   and   quantitative   research,   we   have   been   able   to   identify   which   attributes   appeal   most   to   female   beer   drinkers,   and   how   Underhill   Brewery   could   and   should   use   this   information   to   capitalize   on   this   target   segment.   We   have   combined   knowledge   about   both   product   and   promotion   to   create   the   perfect   craft   beer   and   how   to   bring   it   to   the   market   and   target   segment.      
  • 4. 3 II.   Introduction   In   late   2016,   Underhill   Brewery   is   expecting   to   open   its   doors   to   the   public.   Underhill   Farm   Brewery  will  be  a  Long  Island  City  brewpub  serving  high-­‐quality  beer  and  food  through  locally-­‐ sourced   ingredients.   The   brewery   aspires   to   be   a   unique   venue   where   customers   can   experience  fresh  and  full-­‐flavored  ales,  participate  in  the  beer  brewing  process,  and  taste  what   New  York  State  farms  have  to  offer.     The  venture  will  be  a  brewery  and  a  restaurant  all  in  one  space.  The  “brewery  side”  will  exist  in   the  kitchen  (stripped  out  of  traditional  cooking  equipment)  with  the  beer  produced  within.  The   “restaurant   side”   will   focus   on   selling   the   food   and   drink,   with   the   food   prep   area   in   the   basement.  The  model  is  based  on  high  foot  traffic,  retail  sales  as  opposed  to  wholesale,  fresh   artisanal  beer,  and  farm-­‐to-­‐table  ideals.   To  best  take  on  the  problem  and  analysis  to  come,  it’s  important  to  understand  three  concepts:   1.  Craft  beer,  also  known  as  microbrew  beer,  refers  to  the  segment  of  fully  flavored,  artisan-­‐ style  beers  made  by  U.S.  brewers.  Craft  beers  are  available  with  a  variety  of  ingredients,  styles,   and   packaging   that   reflect   their   often   hand-­‐crafted   origins.   Varieties   are   typically   associated   with  small  independent  local  or  regional  brewers.  The  styles  and  positioning  characterized  by   craft  beer  are  in  opposition  to  the  larger  brewing  corporations  including  Anheuser-­‐Busch  InBev   and  MillerCoors,  who  are  often  defined  as  macrobreweries.   2.  The  beer/brewing  industry  is  still  dominated  by  these  macrobreweries,  which  account  for   almost  90%  of  the  market.  But  even  as  breweries  such  as  InBev  and  SABMiller  sales  steadily   decrease,  Craft  Beer  sales  rise  every  year.  According  to  the  Brewer’s  Association,  Craft  Beer  
  • 5. 4 growth  exceeded  13%  by  volume  and  15%  by  dollars  from  2008  to  2013.  Year  after  year,  the   growth  rate  increases  (2013  grew  by  18%  over  2012).  The  2012  Mintel  report  on  Craft  Beer   suggests  that  sales  will  have  tripled  from  2007  to  2017.1  Microbrewing  is  eating  away  at  the   macrobrewery  market  share  as  more  and  more  customers  switch  to  Craft  Beers.     3.  The  average  Craft  Beer  enthusiast  is  Caucasian,  male,  and  with  household  incomes  of  at  least   $50,000.  Most  are  between  the  ages  of  25  to  45,  but  the  younger  customers  (21  to  30)  are   rapidly  gaining  market  share.  Women  and  Hispanics  have  lately  gained  recognition  in  Craft  Beer   as   high-­‐growth   consumers   as   well.   Underhill   will   provide   food,   drink,   and   a   full   brewery   experience.   However,   the   company’s   core   competency   is   Craft   Beer,   producing   full-­‐flavored   beer  in-­‐house.  As  such,  the  success  of  the  venture  lies  in  capturing  a  segment  of  the  NY  Craft   Beer  market.  While  Underhill  has  a  strong  strategy  for  capturing  these  traditional  Craft  Beer   customers,  the  company  acknowledges  that  it  does  not  have  a  strong  plan  for  reaching  women.     III.   Research  Question   There  is  little  data  or  research  on  marketing  beer  toward  women  specifically.  This  demographic,   until  recently,  has  been  dismissed:  women  do  not  really  drink  beer.  They  prefer  wine  or  mixed   drinks.  But  according  to  a  2013  Gallop  poll  on  the  alcohol  industry,  women  in  fact  represent   25%  of  all  beer  sales,  and  37%  of  all  Craft  Beer  sales.2  What  this  means  is  that  women  as  a   group  consume  much  less  beer  than  men,  yet  within  Craft  Beer,  they  consume  almost  as  much   as  men.  This  data  indicates  that  something  about  Craft  Beer  attracts  women  more  to  Craft  Beer   1  Kraushaar,  Amy,  Beer  -­‐  US  -­‐  January  2015,  Mintel,  January  2015   2  Mosbaugh,  Erin,  How  Craft  Beer  Fails  its  Female  Fan  Base,  First  We  Feast,  November  20,  2014  
  • 6. 5 than   the   average   man.   (We   are   not   stating   that   women   drink   more   Craft   Beer   than   mass-­‐ produced   beer,   as   Craft   Beer   is   still   in   its   infancy   at   under   10%   of   total   beer   market).   For   Underhill,  this  data  is  quite  important.  As  the  venture  focuses  on  Craft  Beer  at  a  retail  level,   understanding  the  behavior  of  women  with  regards  to  Craft  Beer  will  be  crucial  in  creating  a   targeted   marketing   strategy   and   capturing   more   market   share.   “Marketers   may   have   opportunities  to  invest  more  in  targeting  women  for  their  true-­‐/mass-­‐craft  beer  brands,  since   their  usage  likelihood  isn’t  considerably  different  than  men.”3  Research  into  craft  beer’s  success   in  the  female  market  could  provide  valuable  insights  into  why  women  are  drinking  craft  beer  at   a  rate  similar  to  men.   This  research  project  aims  to  answer  the  two  following  questions:   What  are  the  attributes  of  Craft  Beer  that  are  attractive  to  women?   What  can  Underhill  Brewery  do  to  better  market  its  products  towards  women?     IV.   Methodology   The  research  project  was  broken  up  into  two  steps.  The  goal  for  Part  1  of  the  research  project   was  to  determine  certain  attitudes  and  behaviors  of  women  between  the  ages  of  22  and  45   surrounding  craft  beer.  More  specifically,  the  team  wanted  to  discover  which  attributes  of  craft   beer  are  important  to  women  and  why.  Analyzing  women’s  understanding  of  Craft  Beer  and   their  attitudes  and  behaviors  towards  the  product  was  the  key  to  finding  a  way  to  capitalize  on   this  market  segment.  The  information  would  help  us  prepare  for  the  second  part  of  the  project   3  Kraushaar,  Amy,  Beer  -­‐  US  -­‐  January  2015,  Mintel,  January  2015  
  • 7. 6 in  finding  out  the  essential  question:  How  should  Underhill  Brewery,  which  makes  Craft  Beer,   better  direct  its  marketing  efforts  toward  this  target  market?     Part  1:   In-­‐Depth  Interviews   The   team   conducted   20   in-­‐depth   interviews   with   women   between   the   ages   of   23   and   36.   Questions   revolved   around   basic   demographic   information   such   as   age   and   income,   non-­‐ drinking   related   habits   such   as   profession   hobbies,   and   of   course   their   alcohol   consumption   such  as  drink  preference  and  reasoning  behind  it.  We  also  dove  into  some  marketing-­‐related   questions,  in  order  to  see  if  this  was  even  a  conscious  issue  for  our  demographic.  A  full  list  of   the   questions   used   as   well   as   a   complete   look   at   the   major   findings   gathered   during   the   interviews  are  provided  in  the  appendix.     The  three  attributes  below  were  the  most  important  ones  to  focus  on  for  the  conjoint  analysis   in  Part  2:   a. Flavor   Do  women  want  a  sweet  or  bitter  beer?  Should  it  be  colorful  and  have  a  high   level  of  flavor  complexity  as  the  tongue’s  palette  absorbs  each  individually?  Or   should  it  be  straightforward  and  easily  readable  in  terms  of  taste?  Should  it  be   fruity,  citrusy,  and  aromatic  or  should  it  be  more  malty,  bready,  or  grainy?      
  • 8. 7 b. Fullness   Do  women  prefer  a  lighter  beer,  one  that  is  often  referred  to  as  a  summer  beer,   leaving  a  feeling  of  freshness?  Or  do  women  prefer  a  rounder  beer,  one  that  is   usually  heavy  and  more  filling?   c. Alcohol  by  volume  (ABV)   Is  the  level  of  alcohol  a  beer  has  import  to  female  beer  drinkers?  Do  they  prefer   beers   that   have   a   higher   or   lower   alcohol   percentage?   We   believe   that   most   craft   beer   drinkers   do   not   drink   for   the   purpose   of   getting   drunk   (it’s   more   efficient   to   drink   several   shots   of   hard   liquor).   What   is   the   preferred   ABV   of   female  craft  beer  drinkers?     Part  2:   Conjoint  Analysis:  Testing  the  Attributes  of  Craft  Beer   The   research   showed   that   female   beer   drinkers   (both   craft   and   non-­‐craft)   and   non-­‐beer   drinkers  alike  did  have  a  similar  palette  when  it  came  to  picking  a  drink  of  their  preference.  The   goal  for  Underhill  Brewery  would  be  to  create  beers  that  are  made  up  of  the  various  flavors,   types,  and  attributes  women  would  be  most  interested  in.  If  the  team  were  able  to  find  the   perfect  formulas  for  a  small  line  of  beers  (maybe  three  of  four  kinds),  the  brewery  could  win   over   an   entire   market   segment.   The   interviews   in   part   1   provided   much   insight   into   what   women  are  looking  for  in  Craft  Beer,  and  part  2  consisted  of  testing  these  findings.  
  • 9. 8 To  answer  the  second  question  about  what  attributes  our  beer  itself  should  have,  the  team   used  the  conjoint  analysis  method.  As  it  is  evident  that  the  team  could  not  actually  produce  a   myriad  of  different  kinds  of  beers,  we  relied  on  potential  consumers’  selections  of  what  beer   they  would  choose,  were  they  all  on  a  menu.   1. We  presented  respondents  with  several  product  options,  each  version  with  a  different   combination  of  attributes  (X’s).   2. Respondents  provided  overall  rating  (S’s)  for  each  of  these  product  options.   3. We   entered   attribute   values   (X’s)   and   ratings   of   product   options   (S’s)   into   conjoint   analysis  to  determine  attribute  preferences  and  how  much  respondents  care  about  each   attribute  relative  to  the  other  attributes  (W’s).   4. We  used  the  output  to  calculate  tradeoffs  between  attributes  if  desired.     In  order  to  quantify  our  findings,  we  decided  to  add  a  fourth  attribute,  namely  price,  into  the   mix,  to  create  a  total  of  16  different  kinds  of  beers:   Beer   Flavor   Fullness   ABV   Price   A   Citrusy/Fruity   Light   Low  (4%)   Low  ($6)   B   Citrusy/Fruity   Light   Low  (4%)   High  ($8)   C   Citrusy/Fruity   Full   Low  (4%)   Low  ($6)   D   Citrusy/Fruity   Full   Low  (4%)   High  ($8)   E   Malty/Bready   Light   Low  (4%)   Low  ($6)   F   Malty/Bready   Light   Low  (4%)   High  ($8)   G   Malty/Bready   Full   Low  (4%)   Low  ($6)   H   Malty/Bready   Full   Low  (4%)   High  ($8)  
  • 10. 9 I   Citrusy/Fruity   Light   High  (7%)   Low  ($6)   J   Citrusy/Fruity   Light   High  (7%)   High  ($8)   K   Citrusy/Fruity   Full   High  (7%)   Low  ($6)   L   Citrusy/Fruity   Full   High  (7%)   High  ($8)   M   Malty/Bready   Light   High  (7%)   Low  ($6)   N   Malty/Bready   Light   High  (7%)   High  ($8)   O   Malty/Bready   Full   High  (7%)   Low  ($6)   P   Malty/Bready   Full   High  (7%)   High  ($8)     We  realized  and  understood  that  16  such  similar  choices  and  questions  would  be  too  many  for   participants   to   answer   all,   assuming   they   would   get   tired   by   the   end   of   it   and   not   be   as   concentrated,   rendering   less   useful   responses.   Using   Qualitrics,   we   were   therefore   able   to   allow  each  participant  to  only  see  eight  of  the  sixteen  combinations.  For  each  participant,  both   which  eight  beers  are  shown  as  well  as  the  order  in  which  they  are  shown  will  be  random  and   equal.  For  clarification  purposes,  the  terms  ABV,  citrusy/fruity  taste,  malty/bready  taste,  light-­‐ bodied,   and   full-­‐bodied   will   all   come   with   a   short   description   in   order   to   help   participants   visualize  the  beers  as  much  as  possible.  Participants  will  be  asked  to  rate  the  likelihood  of  them   ordering  the  specific  beer  on  a  scale  of  1  -­‐  9.  A  total  of  116  women  within  our  target  market   responded  to  this  survey  for  the  conjoint  analysis.        
  • 11. 10 The  below  is  an  example  of  one  of  the  beer  variations  provided  in  the  survey:   Imagine  you're  at  a  bar,  and  you  decide  to  try  a  new  beer.  The  beer  has  4%  ABV,   and  is  described  as  having  a  citrusy/fruity  taste  with  a  light  body.  The  beer  costs  $6.     Definitions:  ABV  -­‐  Alcohol  by  Volume                                          Citrusy/Fruity  -­‐  sweet  and  tart  with  orange  /  grapefruit  tones                                            Light  Body  -­‐  highly  carbonated,  light  taste     How  likely  are  you  to  order  this  beer?       Note   The  founder  of  Underhill  will  be  eventually  creating  beers  that  will  test  some  of  these  scenarios.   While  they  are  beyond  the  scope  of  this  project,  Underhill  intends  to  create  8  distinct  beers  to   test  the  same  attributes  “in  reality.”  This  will  have  the  twofold  effect  of  creating  a  more  precise   test,  as  well  confirming  the  reliability  of  the  method.  If  the  results  are  the  same  for  both  the   conjoint  analysis  and  the  real  beers,  Underhill  will  feel  more  secure  in  using  such  a  method  in   the  future.     Defining   flavor   characteristics   with   words   is   a   limitation,   but   the   survey   itself   can   provide   valuable  information  for  marketing  purposes.  For  example,  malty/bready  may  not  be  clear  to   some  women,  and  alternative  descriptions  may  be  presented  or  uncovered  during  the  test.  if   that  is  the  case,  when  Underhill  provides  descriptions  of  the  various  beers,  the  brewery  will  be   able  to  provide  more  relevant  descriptors.    
  • 12. 11 V.   Major  Findings  of  Interviews  and  Conjoint  Analysis   Promotion:  Information  and  Education  About  Craft  Beer   Like  with  any  product,  it’s  important  to  have  an  audience  that  finds  you  interesting.  If  there  is   no  information  out  there,  though,  there  is  nothing  to  be  interested  in.  Our  findings  showed  that   information  about  craft  beer  was  not  only  lacking,  but  of  interest  to  our  target  demographic.  All   but  two  of  the  women  interviewed  expressed  that  they  would  be  much  more  likely  to  purchase   a   craft   beer   if   they   knew   more   about   them.   This   educational   aspect   was   the   single   most   consistent  response,  with  18  out  of  20  women  showing  interest  in  knowing  more.  By  coming  up   with  what  specific  information  would  be  useful  to  these  women,  we  hope  to  be  able  to  win   them   over   and   give   craft   beer   a   chance.   The   current   marketing   landscape   is   evidence   that,   currently,  craft  beer  breweries  are  not  trying  to  educate  their  drinkers.     The  team  recommends  that  Underhill  take  advantage  of  this  opportunity,  and  aim  to  fill  the   gap.   The  below  suggestions  were  made  during  the  interviews,  and  the  team  recommends  Underhill   fold  them  into  its  marketing  strategy:   d. The  story  behind  the  founder  and  brewery,  and  each  beer  (origin,  what  it  means   to  the  brewery,  why  Underhill  values  these  beers,  what  makes  them  different...)   e. Relating  the  brand  to  the  marketing  endeavor.  How  does  the  specific  marketing   endeavor  fit  into  the  Underhill  brand?  For  example,  if  Underhill  decides  to  to  a   beer  and  cheese  pairing  night,  how  does  this  event  fit  into  Underhill’s  farm-­‐to-­‐
  • 13. 12 table  identity?  A  direct  link  between  the  mission  and  the  marketing  may  need  to   be  established.   f. How   a   flavor   relates   to   what   customers   already   know   and   can   relate   to.   For   example,  relating  the  flavors  of  Underhill’s  IPA  to  oranges,  grapefruit,  and  freshly   baked  bread.   g. Specific  classes,  parties,  and  tastings  for  women  only.  This  was  suggested  as  fun   events  for  “girls  night  out”  as  well  as  good  events  for  women  whose  significant   others  drinks  Craft  Beer  and  want  to  join  in  the  hobby.     Product:  Citrusy  and  high  ABV  most  important   Using  conjoint  analysis,  our  regression  testing  discovered  that  three  of  our  four  attributes  are   statistically   significant   in   determining   female   consumer's   subjective   utility:   flavor,   alcohol   by   volume,  and  price.  Our  survey  showed  that  flavor  is  the  most  important  factor  tested.  A  change   in  flavor  from  malty/bready  to  citrusy/fruity  is  worth  $5.38  to  our  average  female  consumer  in   our   target   demographic.   For   alcohol   by   volume   (ABV),   we   tested   4%   and   7%.   Our   results   showed  that  an  increase  in  ABV  by  3%  is  worth  $2.45  to  our  average  female  consumer.  Next,   price   was   relatively   important,   too.   We   tested   $6   vs.   $8   for   a   pint   of   beer,   and   our   results   showed   that   a   lower   price   is   worth   .205   subjective   utility   points   per   dollar   to   our   average   female  consumer.   With  this  information  in  mind,  we  can  see  that  the  beer  that  will  result  in  the  most  satisfied   female  consumers  is  one  that  has  a  citrusy/fruity  flavor,  a  high  ABV,  and  a  low  price.  It  is  worth  
  • 14. 13 noting  that  while  the  results  about  the  body/weight  of  the  beer  was  not  statistically  significant,   customers  tended  to  favor  a  lighter  beer  over  a  heavier  beer.     VI.   Conclusion  and  Recommendations   Underhill  Brewery’s  research  and  findings  throughout  this  research  project  have  resulted  in  a   concise  and  clear  conclusion,  allowing  us  to  make  substantial  recommendations  that  will  surely   lead   to   the   brewery’s   lasting   success.   The   famous   Four   P’s   of   Marketing   are   Price,   Product,   Promotion,   and   Place.   We   have   come   up   with   a   formula   that   addresses   all   four   of   these   matters.   Firstly,  we  had  already  decided  on  place.  Underhill  Brewery  will  be  located  in  Queens’  Long   Island  City,  and  hopes  to  open  its  doors  in  late  2016.  An  up-­‐and-­‐coming,  newly  gentrified  and   hipsterized  area,  this  part  of  New  York  City  is  open  to  and  welcoming  of  new  breweries  and   craft  beer  aficionados.   Secondly,   let   us   turn   to   the   product   itself.   Prior   to   this   research   project,   Underhill   Brewery   already  had  a  relatively  clear  idea  of  what  kind  of  craft  beer  it  was  going  to  brew,  and  what   flavor  elements  were  going  to  be  used.  Thanks  to  the  extensive  research  done  on  the  female   segment  alone,  though,  product  ideation  came  into  the  mix  of  our  findings.  By  surveying  116   women  in  our  target  demographic  and  asking  them  to  rank  a  total  of  16  different  beers  from  1-­‐ 9,  we  were  able  to  identify  which  beers  would  be  most  and  least  favored.  With  an  average  of   6.46,  Beer  I  (citrusy/fruity,  light-­‐bodied,  7%  ABV,  $6)  received  the  highest  rating.  In  contrast,   Beer  F  (malty/bready,  light-­‐bodied,  4%  ABV,  $8)  received  the  lowest  rating  with  an  average  of  
  • 15. 14 4.23.  As  our  detailed  regression  analysis  in  the  previous  section  explained,  we  learned  to  stay   clear  of  malty/bready  flavored-­‐beers,  and  aim  to  have  a  higher  rather  than  lower  ABV.  Women   tended  to  prefer  light-­‐bodied  beers,  but  this  was  the  weakest  indicator  of  likelihood  to  order.   Next,  we  were  able  to  determine  a  reasonable  price  point,  and  understand  price  elasticity  and   sensitivity  of  the  consumer.  We  have  concluded  that  $6.5  will  be  our  average  price,  with  some   beers  above  and  below.  Using  Dan  Ariely’s  pricing  studies  about  adding  seemingly  “useless”   options,4,5  we  can  list  some  beers  likely  no  one  will  choose  at  prices  that  will  serve  purely  as   anchors  for  our  consumers.  This  will  decrease  price  sensitivity,  and  we  will  be  able  to  win  a   larger  profit  margin.   Last  but  not  least,  we  have  come  to  understand  our  target  demographic  in  terms  of  what  they   are  looking  for  in  promotion  and  marketing  geared  towards  them.  Avoiding  macrobrewery  type   advertisements  on  television  or  subways,  Underhill  Brewery  will  use  direct  targeting  and  micro-­‐ marketing  tools  to  reach  its  target.  Examples  of  this  are  tastings  and  smaller  events  designed   for  our  target  specifically,  writing  the  story  of  the  origin  of  Underhill  Brewery  and  its  beers  in   the  menu,  and  including  educational  facts  such  as  the  brewing  process  and  ingredients  about   beers  in  general  and  the  specific  beers  on  the  menu.   We   believe   that   we   have   been   able   to   identify   whom   we   should   try   and   target   in   order   to   capitalize  on  a  currently  untapped  market  segment,  with  what  product  definitions  we  should  do   it,  and  how  we  will  be  able  to  do  it  successfully.  We  are  convinced  that  this  research  has  given   Underhill  Brewery  what  it  needs  for  a  successful  launch  and  many  profitable  years  to  come.   4  Ariely,  Dan,  Predictably  Irrational,  Harper  Perennial,  2010   5  Ariely,  Dan,  Pricing  the  Economist,  YouTube,  www.youtube.com/watch?v=xOhb4LwAaJk,  uploaded  Dec  17,  2009  
  • 16. 15 VII.   Appendix   In-­‐depth  interview  findings     Out  of  the  20  women  we  interviewed,  12  of  them  regularly  choose  beer,  and  8  of  them  choose   other  drinks.  All  of  the  data  was  used  for  the  findings.       9  women  reported  having  3  to  4  drinks  when  at  a  bar.   8  women  reported  having  1  to  2  drinks  when  at  a  bar.   2  women  reported  having  over  4  drinks  when  at  a  bar.   1  woman  did  not  typically  drink  alcohol  when  at  a  bar.       1. When   shopping   for   groceries,   quality   was   important   to   all   respondents.   Freshness   and   price  were  also  quite  important,  and  most  preferred  organic  products.   2. Surprisingly,  “local”  was  not  an  important  aspect  of  the  choice  of  drink,  unless  the  beer   was  actually  brewed  on  premise.   3. The   choices   of   drinks   that   were   not   beer   were   mostly   cocktails   and   wine.   The   reasons   behind  these  choices  were  taste/flavor  and  health.  Wine  and  cocktails  were  seen  as  more   healthy  than  beer.   4. For   those   that   did   not   choose   beer,   their   perceptions   of   beer   drinkers   were   overwhelmingly     of   unsophisticated   men   drinking   in   order   to   get   drunk.   The   recurring   attributes  were  “frat  boy,”  “sports  loving,”  and  “loud.”   5. 3  of  the  women  that  did  not  choose  beer  also  added  that  there  also  exists  a  group  that   drinks   beer   for   flavor,   similar   to   wine   drinkers.   Women   were   included   in   this   group,   as   opposed  to  the  notion  of  guys  drinking  to  get  drunk.   6. Within  the  group  that  did  not  choose  beer,  they  knew  very  little  about  craft  beer,  only  that   there  was  a  difference  between  craft  beer  and  mass-­‐produced  beer.  None  could  identify   the  concrete  differences,  though.   7. For  the  women  who  did  not  choose  beer  to  consider  trying  a  craft  beer,  the  attributes  that   were  most  important  were  full  flavor,  low  alcohol,  low  bitterness,  light  and  refreshing,  and   sweetness  as  opposed  to  tartness  or  bitterness.   8. Most  of  the  women  who  did  not  choose  either  beer  or  craft  beer  said  they  would  be  much   more  inclined  to  try  them  if  they  knew  more  about  them.   Information  about  the  flavors  and  health  impacts  was  of  most  interest.   9. For  women  who  did  choose  craft  beer,  the  choices  of  beer  were  quite  varied.   Belgian-­‐style,  light  beers,  citrusy,  and  non-­‐bitter  IPAs  were  most  common.  
  • 17. 16 10. The  reasons  for  choosing  beer  were  flavor,  uniqueness,  low  bitterness,  citrus  flavors,  low   alcohol  (can  drink  more  without  getting  drunk),  knowledge  of  the  beer  in  question,  and   price.   11. Craft  beer  drinkers  are  seen  as  more  social  drinkers  (as  opposed  to  drink-­‐to-­‐get-­‐drunk),   more  informed,  used  to  higher-­‐quality  products,  and  younger.   12. The  craft  beer  industry  was  understood  as  an  opposition  to  mass-­‐production.   There   was   much   more   variety   in   the   types   of   beers   offered,   smaller   scale   production,   fancier,  and  with  more  personality.   13. All  of  the  beer  drinkers  said  that  they  would  be  much  more  inclined  to  consume  craft  beer   if  they  knew  more  about  the  beers.   The   most   valuable   information   was   flavor   descriptions,   style,   alcohol   level,   ingredients,   technique,  and  the  story  behind  the  beer.   14. Attractiveness  of  tap  handles  or  bottle  packaging  was  only  mildly  important,  respondents   thought  it  could  influence  choice  if  there  were  no  other  cues,  but  other  attributes  such  as   knowledge  of  the  beer  or  flavor  of  the  beer  were  much  more  important.   15. All  respondents  reported  no  marketing  efforts  from  Craft  Breweries.   16. All   respondents   reported   mass-­‐produced   beer   marketing   was   directed   towards   men.   Sports  and  beautiful  women  were  the  focus  for  all  the  examples.   17. When  asked  what  craft  beer  marketers  should  do  differently,  most  respondents  suggested   marketing   with   no   emphasis   on   sexualized   women,   sports,   and   drunkenness,   and   more   emphasis  on  the  story  behind  the  brand,  the  taste  of  the  beer  (as  opposed  to  “coldness”),   health   benefits,   quality   ingredients,   and   better   information.   Many   suggested   showing   professional  women  having  beer  over  lunch  rather  than  men  at  sporting  events.          
  • 18. 17 Conjoint  Analysis  Findings                
  • 19. 18          
  • 20. 19          
  • 21. 20                                                
  • 22. 21 VIII.   Bibliography   Ariely,  Dan,  Predictably  Irrational,  Harper  Perennial,  2010   Ariely,  Dan,  Pricing  the  Economist,  YouTube,  www.youtube.com/watch?v=xOhb4LwAaJk,   uploaded  December  17,  2009   Kraushaar,  Amy,  Beer  -­‐  US  -­‐  January  2015,  Mintel,  January  2015   Mosbaugh,  Erin,  How  Craft  Beer  Fails  its  Female  Fan  Base,  First  We  Feast,  November  20,  2014      
  • 23. 22 IX.   Contributions   Gennaro  Aliperti:  Created  the  Qualtrics  survey  and  worked  on  the  regressions.   Bryan  Blick:  Created  the  regression  analysis  and  the  accompanying  charts.   Joseph  Brad  Boggess:  Provided  the  basis  for  the  project.  Formulated  research  question(s),   introduction,  interview  questions,  as  well  as  drew  conclusions  from  findings.   Benjamin  Bolasny:  More  closely  defined  the  research  question,  and  also  contributed  to   formulating  interview  questions   Miriam  Brownstone:  Explained  the  methodologies  and  formulated  final  conclusions,  as  well  as   also  formulating  interview  questions   Dustin  Bryant:  Analyzed  the  interview  responses  and  findings     All  team  members  conducted  3  in-­‐depth  interviews.