Chapter 7: Business Marketing

In today's blog, I want to discuss different product use with business customers. An organization must understand the business market because business customers are apart of the consumer market but have several different characteristics. I want to discuss the characterisitcs of the craft beer business market. 

Business demand for products are derived, inelastic, joint, and fluctuating. Derived demand is the demand for business products. For example, Blue Moon Brewing Company's number of barrels of craft beer created is derived from the demand on the consumption of craft beer. Inelastic demand means the increase or decrease in the price of the product will not affect the demand for a product. So increasing the price in craft beer will not affect how many craft beers are consumed. A joint demand occurs when two or more items are used together in a final product. A decline in the availibility of ingredients to create belgium-style ales will reduce the demand for creating flavored belgium-style ales. As long as there is a demand for belgium- style ales, Blue Moon Brewing Company will continue to exist because they specialize in creating belgium-style flavored craft beer to costumers. Fluctuating demand is when small increase or decreases in consumer demand create large change in demand for equipment needed to make the product (also called multiplier effect.) If the demand for agricultural products to create craft beer is increased as a result of increased demand in the final product, then the production cost of agricultural products to create the final product (craft beer) increases as well.

Most business markets have fewer customers than consumer markets. Its is easier for Blue Moon Brewing Company to identify its buyers and attend to existing customers. Most of its business customers are retailers, independent businesses, supermarkets, bars  and other distribution centers. Most of its business customers are in the northeast. 

Chapter 8: Segmenting and Targeting Markets

Understanding the bases for segmenting consumer markets is vital in preventing declines in sales and missed profit opportunities. In today's blog, I want to discuss several ways markets are segmented and how MillerCoors and other organizations in the beer crafting industry uses it to produce different customer responses.

What's market segmentation mean anyway?

Market segmentation divides the market (people with wants or needs interested in a product) into segments based on characteristics of individuals or organizations. Geographically, Blue Moon Brewing Company segments its market according to climate- in Colorado, its consumers at home are more likely to buy beer from consumers out of state because how readily availiable it is. The company knows its easier to sell its products to consumers at home than in other areas throughout the region because of the reduction in distribution cost. Consumers can buy it at where its made and fulfill customer needs more where its brewing center is located. Geographic segmentation is just segmenting targets according to region, country or climate.

Demographic segmentation segments the market according to age, gender, ethnic background, and/or income. Millenials have become craft beer's rising age demographic. According to an article by craftbeerbusiness.com,  Mintel reported 49% of craft beer appeal to millenials, 41% to Gen Xers, and 29% of baby boomers. Psychodemographic segments market in terms of personality, motives, and lifestyle. 77% of consumers who drink Blue Moon Beer, are avid sports fans and the 37% make up beer enthusiast. Blue Moon Beer compliments consumers beliefs on conserving a healthy environment by using natural ingredients for consumers of its beers who are conscious about the effects on the environment. Which also includes a benefit segmentation- segmenting market on the basis of benefits they seek from the product. Most beer drinkers want the benefit of a fun experience while others want to have a good lifestyle. Blue Moon Brewing Company's "artfully crafted" ad campaign focuses on its segment market by documenting people with interesting lifestyles consumers associate themselves with.

Chapter 11: Developing and Managing Products

Developing and managing new products is crucial to increasing profits and innovating new products to replace others that are obsolete. In today's blog, I want to discuss the new product development process and how Blue Moon Brewing Company uses this process to create new products.

Steps of new-product development process.

The new-product strategy plan is a plan interconnecting the new-product development process with the objectives of the marketing department, the business unit, and the corporation. In this part of the process, Blue Moon Brewing Company is generating new product ideas. Brewing master, Keith Villa brews and test many new flavored beers based on suggested sources from customers, employees, distributors, competitors, research development, or consultants. On the company website, customers are asked which next flavored beer should be created for the next season. Based on the choice, the company screens which flavors should be implemented and which should be eliminated. Once the ideas have been screened, the concept test evaluates the idea (hence Blue Moon Brewing Company's website getting consumer reactions of the  upcoming flavored beers.)

Blue Moon Brewing Event in Dallas, Texas.

During the development process, the company may brew the flavored beers and decide the marketing strategy down to labeling, packaging, pricing, promotion and distribution. Once this has been done, the company may test market the new beer usually through a promotional event. Blue Moon Brewing Company have tasting events to keep consumers in the know on what's happening in regards to its beer line-up. After this has been done, commercialization happens. That's when Blue Moon Brewing Company start advertising its products and seasonal beer sample packs are sold to the consumer.

Seasonal pack that consumers enjoy.

Chapter 12: Service and Nonprofit Organization Marketing

In today's blog, I want to discuss the importance of internal marketing in the beverage industry. How Blue Moon Brewing company maintain positive relationships with its customers to increase and maintain product sales goals. Company employees are treated as customers that benefits both employee and customer needs.

 

So how does Blue Moon employees and representatives benefit internally? Employees are the first to taste the new upcoming beer before it is even sold to the masses. Employees from the direct manufacturer can get discounts from any retail outlet the products are sold. Internal marketing in Blue Moon Brewing Company allows employees along with consumer input to create better products. Doing so ensures close relationships with it's target market as well.

 

Another topic I want to discuss is the experience quality of Blue Moon Beer and its products. Experience quality is a characteristic assessed after product use. Most people do not how Blue Moon Beer products taste unless they taste it themselves. Others look for indirect experiences to determine whether they should purchase any of the products. There are many reviews detailing blue moon beer products its taste.

 

 

 

Chaper 10: Product Concepts

The concept of a product is vital for a company to successfully market its products to consumers. In today's blog, I want to discuss Blue Moon Brewing Company's products in regards to what type of products it is and how its unique brand affects its consumers.

Blue Moon Brewing Company sells a convenience product- an inexpensive item consumers will shop for with little effort, craft beer. Most of its craft beers are sold in retailers as well as small independent retailers and warehouses. Its convenient for any consumer to find a product but what sets Blue Moon Beer apart from its competitors in the beer industry is its unique brand.

Its very easy to distinguish it's brand mark from other beers because its simple and easy for consumers to remember. There logo signifies there values for high quality craft beer at an affordable price. The logo is also catchy for potential consumers switching from a different craft beer to this as well. So how does Blue Moon Brewing Company ensures its consumers stay loyal to the brand and buy its craft beers?

Blue Moon Brewing Company offers feedback from its customers about its products as well as what new products do the consumers want. They also blend in the company's own unique tasting beer which also leads to better understanding with what ingredients to debut  during the peak of each season.

 

 branding is important because  consumers can easily recognize products.

Another way consumers easily identify Blue Moon Brewing Company's products is its packaging. The company uses persuasive labeling on its packaging to keep consumers loyal to the brand and its products. The consumer is informed to try the company's choice of beers within the packaging based on the seasons.

Another thing about the company itself is that its has its own unique product line. It creates both craft beer and wine. The company is also owned by Miller Coors and it is a part of the product line of beers miller Coors creates.

 

 

Chapter 16: Advertising, Public Relations and Sales Promotion

Advertising, public relations and sales promotion are vital for a company increasing demand for their products, getting consumers to recognize the need for them as well understanding the reasons a company does so. In today's blog, I want to discuss how Blue Moon Brewing Company uses advertising, public relations and sales promotion to maintain and improve the demand for its beer products as well as my own personal opinion about Blue Moon Brewing Company's advertising, public relations and sales promotion efforts.

I noticed Blue Moon Brewing Company's unique selling proposition in its advertsing campaigns. Its slogan appeals to consumers who want to drink quality craft beer that offers several, unique taste. 

Different taste according to the seasons.

Blue Moon Brewing Company also uses a seasonal media schedule- a media scheduling strategy running advertising only during times of the year where the product is more likely to be used. Blue Moon Brewing Company's craft beer is best sold during the earliest time of the new season because of the fresh ingredients that are used when they are in season as well. I remember the commercials be advertised on the FX channel and I noticed that the commercial was shown twice during one-minute commercial breaks and three times during eight-minute commercial breaks on the first day of Spring this year. I like how the company uses its seasonal media schedule to compliment the new products made and debuted during the new season.

Another important aspect Blue Moon Brewing Company has is evaluating public attitudes about creating new products and gaining the public's understanding and acceptance- public relations. Blue Moon Brewing company understands the importance of sustaining a healthy environment by reducing water consuption in its beers and instead use ingredients catering to consumers who want something new every season. According to an article, Blue Moon Brewing company has its 20th aniversary I feel that the company needs to focus a bit more on promoting and giving set dates to its consumers for set dates on relaeasing it new products to the public as well.

Speaking of promoting...

Blue Moon Brewing Company has also been trying to create new type of ales. They are interactively promotion this on the company website by giving its consumers the option to choose which new ingredients should be incorporated into the new beer as well. 

Chapter 14: Retailing

Retailing is all the activities directly related the sales of goods and services to the ultimate consumer for personal and non-business use. Today blog, I want to discuss how beers are sold in different types of retailers especially blue moon beer.

One thing I noticed when I went to the store or as per say, an independent, off-price retailer in my community, I noticed the emphasis of small snacks and low prices. In these types of stores, products are constantly being sold and replenished because it the closest store and perhaps the store with the most stock as well. The disadvantages is that its cash only and not involved in a franchise. I wanted to find out how they Blue Moon Beer was sold in independent, off-price retailers compared to other franchise and major retailers such as Target.

As I went in the store, I noticed how the beers were stocked. The beers were stocked from highest to lowest price. It went from blue moon beer being the highest at $3.00 to natural light being the lowest at $1.50. A case of blue moon beer also went to $12.00 shockingly. I think this was a ploy to get consumers to buy the other beers at lower prices.

When I walked into target, I noticed the difference in how it the beer products were sold. Target emphasized its low prices by showing just how much a consumer will save buying the product. I believe this ploy was also used to make consumers believe they are getting the product at a discounted price.