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Important: Case questions are meant to be guidelines on how to think about the case. They do not need to be answered directly. Rather, your write-up should reflect an integration of the issues and analyses suggested by these questions.
Solution
Introduction
The success story of Boston Beer is based on its transformation from a small scale ordinary microbrewer into a huge scale macro brewery. The Samuel Adams Lager and Boston Lightship product lines are particularly responsible for where it stands today. The company was founded in 1984 in Boston, Massachusetts by Jim Koch whose commitment to the brewing process is seen in the appeal of Samuel Adams image. In 1995 the company went public on New York Stock Exchange. For a few years, the company is involved in the implementation of new strategy for its growth by introducing a light beer that has generated a wide appeal among the masses. While this strategy has been responsible for the growing profit of the company, but it has also created a situation for the company to become vulnerable by getting its brand name somewhat diluted.
In my opinion after studying the research report about BBC, the company should go ahead in the light beer segment because it is one of the most profitable segment since 1992. This upsurge in the lights can be attributed to three leading domestic brands: Bud Light, Miller Lights and Coors Lights. By the end of 1997, the premium lights left behind the premium category and became largest in the industry. It was found that the light beer segment would continue to enjoy steady growth in the coming time ahead. Also, the statistics suggest that the leading brands in the lights category have been performing excellently and five of them feature on the list of top ten best performing beers in the markets. However, the introduction of Boston Lightship was not that fruitful for BBC in the beginning. With the help of “ZMET” customer analysis of the light beer drinkers, the researchers stated that they were happy to see the overwhelmingly positive feelings connected with the experience of drinking light beer because they wanted to drink it for its refreshing qualities. Moreover, it is also advantageous in maintaining control and enjoying at the same time. Finally, as per the market observation, it appeared that Amstel Light model was the best model for the BBC in garnering profits in its business.
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After Boston Lightship was introduced in 1987, Koch was pretty confident about this new product line because he believed that people would enjoy it very much, therefore he invited 100 persons from media in order to participate in taste test. Its samples were then tasted by TV reporters, cameramen as well as radio and newspaper reporters. The comparisons were to be made with the industry giants Heineken, Miller Lite, Amstel Light and Becks. Consequently, ninety out of 100 volunteers gave their vote in the favor of Boston Lightship. Insofar the consumption of the light beer is concerned, its shipments as a percentage of total beer shipments grew steadily and strongly since 1980. The data as recorded showed 13% in 1980, 22% in 1985, 31% in 1990, 38% in 1995 and approximately 40% in 1997. Also, according to statistics of the consumption data, the flagship lager brand continues to grow and represents of 60% of the sales. Finally, ZMET has a central idea of analysis as “what people don’t know they know”. It basically uncovered the thoughts and feelings associated with drinking light beer. It was concluded from ZMET that people drink light beer because they want to avoid full bodied flavor and heartiness.
If I were Boston Beer’s market research agency, I would incorporate certain strategies to include the steps required for proper market research. These strategies are a) Surveys: it would be done with the help of in-person surveys and one-on-one interviews. It will allow us to have people with samples of products, packaging or advertising to get feedback. It will also include telephone surveys and online surveys, b) Focus groups: it is an effective methodology in which a discussion is started by a moderator among the group of the people (Birn & Hague, 2000). This process is performed at neutral locations using video tapes to record discussion sessions, c) observation: it will be done using the individual responses to the surveys as well as focus groups. In this the actual buying behavior is observed which gives a precise picture of customers’ usage habits as well as shopping patterns, and d) Field trials: my approach regarding this technique will be to place a new product (light beer) in the selected stores in order to test consumer response under real-life selling conditions. It will give the best idea about the exact feedback of the potential consumer behavior.
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Birn, R., & Hague, P. (2000). The handbook of international market research techniques. London: Kogan Page.
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Cyr, L., Lassiter, J., & Roberts, M. (2001). Boston Beer Company: Light Beer Decision. Retrieved 21 March 2016, from https://s3.amazonaws.com/prod_object_assets/assets/101459746239505/Boston_Beer.pdf?AWSAccessKeyId=AKIAIXM6FRIC5QVSA63Q&Expires=1458542599&Signature=pChYTwAQMSBeo8Rc6CvbWR4pvLE%3D#_=_
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