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.  

Chapter 6: Consumer Decision Making

A company must understand consumer behavior when selling products or services to successfully satisfy consumers and reach company goals. Today blog, I will discuss the process involved in making a buying decision, several factors influencing how a consumer decides to make a buying decision and what Blue Moon Brewing company does to ensure consumers believe their product will satisfy there needs.

Consumer decision making process 

A need recognition is an occurrence consumers have between needs and wants- the first step in the decision making process. It's when you want something you believe you need. It's when you're sitting on the couch watching "TheWalking Dead" and a commercial shows. Or, when youre reading this blog and you watch this.

 

Yes I just did that...

The moment you watched the video, (depending if you need a drink) then this may have aroused you to recognize that you may want one. Wither its beer or anything else.

Information search is the second part of the decision making process. Once a need or what is recognized, a consumer will find out all about the product they want. Talking with friends, family, anyone with knowledge of the product, or the knowledge a consumer has about a product. When it comes to Blue Moon beer, I have friends who also drink it as well.

After a consumer finds the information about the product they want or need, evaluation of alternatives is the next step. In this step, consumers are evaluating on the product they want to buy. They decide weither or not to buy the product, when to buy, what to buy, where to buy and how to pay. When I decide to buy blue moon beer, I decide to buy it on social occassions when at the bar with friends. Sometimes, I'll even go to the store if me and my friends are indoors. Some other people may even decide to shop at an online retailer as well. There are many different beers but I buy this because I like it, my friends do and its at a cheaper price compared to other belgium style beers.

Once the consumer buys the product, they have an expected outcome for buying it. If the product does not exceed to the expect outcome, most consumers turn to a different product or its competitor when purchasing a similar product. Post purchase behavior is important because all these factors decide if a consumer will continue to buy the product from a company.

I noticed the biggest factor that plays when I'm purchasing Blue Moon beer is what I like about it. I like the taste and compliments fried foods especially fried chicken wings or bbq wings since its an ale. Some people also like to drink it because its at an affordable price for its high quality taste as well.

Chapter 5: Developing A Global Vision

Having a global vision means recognizing international marketing opportunities, using global marketing strategies and being aware of threats from competitors both foreign and domestic in all markets. Today's blog, I want to discuss external factors companies face when marketing to target markets on a global scale.

What is the external environment?

The external environment consist of culture, economic, natural resouces, technological development, political structures and actions and demographics. These are all factors a firm must consider when marketing on a global scale. Blue Moon Brewing Company analyzed their external environment very well. One factor the company took into account was culture. Blue Moon Brewing Company acknowledged United Kingdom's consumers and their demand for a high quality craft beer. So parent company, Millercoors fostered a plan to create sustainable beer by reducing their water consumption. Gary Beck, manages a farm for Millercoors and other companies that grows 2,500 acres of barley that produced about $9 billion last year. His efforts saved time, energy, and money. 

What did this mean for consumers in the Uk?

Blue Moon Brewing Company targeted the UK consumer market by tailoring the company's craft beer to appeal to the consumer's demands of a high quality beer. The beer became a success in the UK. Millercoors exported the beer to several UK retailers including Tesco- UK's highest selling retailer. Tesco lauched Blue Moon beer to 750 stores across UK. 

Blue Moon Brewing Company is faced with many economic factors as competition being its most challenging. Rival companies are also competiting. Blue Moon Beer has a cost-competitive advantage over its competitors in the UK because UK consumers are opting for American beer brands and blue moon beer is a beer consumers want. Its is sold in tesco for £1.79 and £5.05 ($6.98) for a 6-pack.

 "UK tastes have been changing for a while now, and more and more drinkers are moving towards flavoursome brews." - Chiara Nesbitt.

Political factors such as governmental regulation in each state of the US have regulations concerning the number of distributers and who can sell the products. In some states, Millercoors is not allowed to directly sell to liquor stores, restaurants, and convenient stores and have to go through a distributer. That goes for Blue Moon Products disributed in some parts of the UK and Canada as well.

Chapter 4: The Marketing Environment

Examining the target market is a vital aspect in marketing. A target market is a group of people or organizations for which an organization designs, implements, and maintain a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges. Today's blog, I want to discuss the importance of understanding a target market to gain an advantage in the marketing environment.

So who's my target market?

The target market consist of social, demographic, technological, economic, legal, and competitive factors. Lets analyze Blue Moon Brewing Company, who are the company's target market? Blue Moon Brewing Company's target market are people who enjoy craft beer. The company must take all of these factors into consideration when targeting these people buying their products.

 Company targeting lifestyles...



Component lifestyle is the practice of choosing goods or services that meet one's diverse needs and interest rather than conforming to a single traditional lifestyle.  So why are some people choosing to drink blue moon beer? Blue Moon Brewing Company creates its beer and targets its customers who believe in quality beer and quality lifestyle. Blue Moon Brewing company emphasizes seasonal changes and changes its beer products to adopt to the changing seasons. Therefore, it has a specific product targeting people according to the season. The company knows that summertime is about being outdoors and winter being indoors so they use ingredients and flavors within their beers to compliment the season. Some people live different lifestyles according to the season so the company noticed this and created a product to compliment seasonal lifestyles. Emphasizing a component lifestyle is a social factor the company analyzed and its beer has created good profit gains for the company as well.

 Camping outdoors? Hibernating indoors? Have a drink.

Blue Moon Brewing Company is good at product development. They experiment using applied research- research that attempts to develop new or improved products. Wither its attending beer fest or gaining customer reviews online, the company values its customers by creating products the target market demands. The company uses the opportunity to get customer feedback on its products. Research is technological factor that the company considers. The beer also competes with many of its competitors and its customer reviews are focused on the quality and differences between its competitors. It values its competitive environment to help innovate quality tasting beer for its target market.











      

Chapter 3: Ethics and Social Responsibility

Ethics are moral principles or values that generally govern the conduct of an individual or group. Today's blog, I want to discuss the importance of ethical business behavior: what it means for business to have ethical guidelines as well as corporate social responsibility.

A business must have a code of ethics that will act as a guideline to helping marketing managers or other employees make better decisions. The guidelines help employees identify what the firm recognizes as acceptable business practices, creates discussions, ethically questions decisions and maintain internal control rather than government regulation.

Employees at Blue Moon Beer Company follow a code of ethics that ensure appropriate conduct in alcohol responsibility, customers, competitors, and sustaining the environment by using healthy quality ingredients in brewing beers.

In helping sustain the physical environment, Blue Moon Beer Company have been using ingredients at the peak of its season to craft its beers- A green marketing plan designed to increase product sales by minimizing negate effects on the physical enviornment. According to parent company, Millercoors, its organization plans to reduce water and energy usage in its brewing by 15 percent.

the pyramid of corporate social responsibility is designed to ensure each of the organizations economic, legal, ethical, and philanthropic responsibilities are followed and that the firm's economic performance supports the entire structure.

Chapter 2: Strategic Planning for Competitive Advantage

Having a marketing strategy is really important. An organization's marketing mix consist of four very important P's- the "product" or service itself, the "place" it can be accessed, the way the product is "promoted" as well as its market "price." In my last blog, I wrote about Blue Moon Brewing Company and its emergence. This product challenges its competition in a beer industry stricken by our troubling economy.

Strategic priorities: Developing strong, relevant brand portfolios that win in the local market

'Blue Moon rises in a falling market

A bottled-up caped crusader.

Blue Moon Brewing Company's product caters to the market by using in-season ingredients into the beers crafted that creates high customer demand for each each of the products. This attracts high volume of customers as well as increasing its profit margins. Owned by MillerCoors, the product increased profits by 15 percent in last year. 

Seasonal products challenging its competitiors in...

taverns, bars, and stores around the country. There are also other belgium-style ales out there. I believe Blue Moon Brewing Company's style of distribution is based upon the idea that craft beer has become the spear head of the beer and alcohol business as well. So the company popularizes the ale by distributing more barrels within each to gain more profits.

What profits would Blue Moon Brewing Company have?

 One barrel of blue moon beer is retail priced at $300, and creates 2 million barrels or more yearly. Correct me if I'm wrong, but thats 6 million dollars in profits!  That's only from one company.  Im not saying most people are buying kegs but for consumers to proactively purchase a product raising 7 figure profits, the product is at a reasonable price. Blue Moon Brewing Company can double, or tripple the production. Thats another story to dicuss in a future blog. With that much production and amount of profit gain, how did this product become so big and popular?

Yep...You guessed it...

Advertising. Social marketing. Word of mouth. All of these aspects played a huge role in successfully promoting the product to the masses. I admire the way Blue Moon Brewing Company promoted its product. They created a lifestyle around the product that was fun and carefree. I like the stop motion ad above because it created the idea that this product will be adopt changes throughout the year like seasons and here for customers to enjoy.

Will determine an organization's success.

Ch. 1 - Overview of Marketing (Brief History and Mission Statement)

One highly anticipated sports event is this weekend- The Superbowl! Peyton Manning versus Russel Wilson. Fans are gong to go absolutely nuts! There just one team going home with that shiny ol' trophy. Not as cold outside as it was last year so for those fans who'll be tailgating, flip those grilled burgers. Indoors? Grab some pizza and most of all...don't forget the beer! There's no good time without it (non-alcoholics, go have some juice.) Wait did I just say beer?

Bring the beer cases...Lots of em'

Wither its Budweiser, Corona, Heineken or any other brand creating good tasting beer, if there's beer, there's cheer! One beer I will be drinking this weekend Blue moon beer so I've decided to blog about it today.

I only drink it once in a...

Blue Moon Brewing Company was founded in 1995 by brewing master, Keith Villa, who earned a Ph.D in brewing from University of Brussels in Belgium. He returned to Denver, Colorado in 1995 to create a brewery (Sandlot brewery) located in Coors field, home of the Colorado Rockies baseball team.With brewing master, John Legnard, Keith Villa artfully crafts Belgian-style wheat ale. 

Chugging this masterpiece on game day.

The company does research and development of beer crafting for AC Golden Brewing company. Today, Blue Moon Brewing company creates many flavored, great-tasting beer. This company's focus is to artfully craft beer to its customers by selecting unique ingredients customers love.

Every flavor will be needed for Superbowl.

Which team will you be rooting and drinking for? Remember, drink responsibly.