Beer Marketing Case Study: Koch Brewing Company
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This case analysis is based on the example written in Applegate and Johnsen's "Cases in Advertising and Marketing Management".
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Beer Marketing Case Study: Koch Brewing Company
- 1. KB Koch Brewing Company Est. 1913 CASE ANALYSIS Jason Tham | COMM 621 | Jan. 29, 2013 | St. Cloud State University
- 2. OVERVIEW • Koch Brewing Company, Cincinnati, OH KB • Microbrewery; high quality beer in southern Ohio, northern Kentucky & southern Indiana • Janice Brewer, Marketing director • Laura Simons, VP of sales & marketing • James Koch, President
- 3. OVERVIEW • Long-term sales forecast based on past 5 years’ sales • Sales had increased each year by 5% (ave.) • Next 3 years: 7% each year • President wants it 10%
- 4. PROBLEM STATEMENT • Low advertising allocation • Need to pursue non-trad./alternative media • Want better brand recognition • Aim: to be the most asked for beer brand in Ohio, Kentucky and Indiana
- 5. CRITICAL FACTORS • Premium beer • Market: 30-49 • Drinking culture
- 6. ALTERNATIVE SOLUTIONS • Advantages: Eager students, popular appeal Beer Girl • Disadvantages: Overrated/Low impact, wrong message, legal issues
- 7. ALTERNATIVE SOLUTIONS • Advantages: Low cost, educational elements. BTL AD. • Disadvantages: Lost in clutter, cliché, low frequency
- 8. ALTERNATIVE SOLUTIONS • Advantages: Better reach for Target C-MKGT. Market, Cheaper, Ongoing engagement • Disadvantage: Higher maintenance
- 10. RECOMMENDATION
- 11. RATIONALE • PEW: 89% of 30-49 are active online users • Content Marketing keeps audience engaged • Pull Strategy
- 12. THANK YOU. KB
Editor's Notes
- The story goes like this… Janice was asked to prepare a long-term sales forecast…
- Before deciding what’s the best marketing strategy, let’s look at some of the challenges faced. Low budget – pursue non-trad.Want better recognition – second in Ohio and Indiana
- Koch brews premium beer. According to recent studies, premium drinkers are 30-49. THE ECONOMIST - Drinking culture: Overall sales in America dropped 1.5% and 2.3% in western Europe. These are factors determining sales for the coming years.
- Opt 1: use of college girls to promote in restaurants, bars, and night spots.
- Below the line advertising / regular media
- Content Marketing - Internet and mobile, Win premium items online. Sharing (word of mouth) faster. Make online purchase available.
- PEW Research study. Forbes recommended content marketing - create brand loyalty and an engaged community.Education on beer culture, brewing process (not to get cheap beer). Also, announce participation at beer festivals. Pull strategy: allows people to discover you; rather than you crashing into the party.