Purple Rain Marketing SolutionsMarketing Proposal for Leinenkugel's Summer

Shandy Beer

Marketing Problem

Want to increase market shareHow can we increase our presence in the 21-25 year old market?

Demographics

Behavioral Findings Why Do You Purchase Beer?

When doing research on beer, what sources of information do you generally use?

Marketing Tools Utilized • Perceptual Mapping• Conjoint Analysis

• Visual representation of your target market’s perceptions of brands in the beer industry

• Identifies how your customers perceive Budweiser

• Identifies your competition• Identifies attributes necessary to

move to desired position

Perceptual Mapping

• Budweiser• Corona• Heineken• Blue Moon• Miller Lite• Pabst Blue Ribbon• Fat Tire• 312• Leinenkugel’s Summer Shandy• Green Line Pale Ale

Beer Brands

AttributesAvailableSportyLow CalorieLow ClassExpensiveBlandPremiumDomesticPopular

Strong FlavorSophisticatedHigh Alcohol ContentSweetUniqueCraftRegional BitterPreference

• TVE= 80.95%

• Means we captured 80.95% of data with just these 18 attributes

Total Variance Explained

Beers for the Game

Lake Party

Beer Garden

For the Beer Enthusiasts

Beers for the Game

American Tradi-tions

Intermediate Classics

Misunderstood Crafts

Behind the 8 Ball

For the Beer Enthusiasts

Lake Party

Beer Garden

For the Beer Enthusi-asts

Beer Garden

Lake Party

Beers for the Game

Preference

For the Beer Enthusi-asts

Beer Garden

Lake Party

Beers for the Game

Preference

For the Beer Enthusi-asts

Beer Garden

Lake Party

Beers for the Game

Preference

Intermediate Classics

For the Beer Enthusi-asts

Beer Garden

Lake Party

Beers for the Game

Preference

Sophisticated

Popular

Premium

Strong Flavor

Import

• Can not reposition directly along preference line!

• Reposition to good space in “Intermediate Classics” cluster

Repositioning

• Must-Do Attributes: o Strong Flavoro Sophisticatedo Importo Premium

• Auxiliary Attribute:o Popular

Repositioning

Conjoint AnalysisAllowing us to understand features,

utilities, and the consumers opinions on them.

What Does Conjoint Analysis Allows For?

• Allows for us to understand the consumer's judgements on different factors and utilities of a product.

• Put this into a numerical value of importance.

• From these values we can:1. Find out the overall effectiveness of every

possible product we can make (including best and worst product.

2. Understand the importance of each factor.3. Judge and simulate market activity and market

share. 4. Determine Market entry barriers.

Statistical Quality• Adjusted R Squared: 0.48395

o Our data has captured and explains approximately 48% of customer preferences.

o This means we know roughly 48% more knowledge about our customers.

• Significance F: 1.58E-38o This presents that the conclusions of our

data, were not due to pure luck or statistical chances.

Features and Levels

• How were the features and levels decided upon:o Focus groups with customers.o Market experts.o Looking at competitors

products.

Features and Levels

Utility Levels of Beer Features

Price Linearity

• Simply put, our customer's opinion on the cost of beer is completely rational.

Price Linearity

• Our intercept represents the total product utility level which a product needs to be at, or above, in order to enter the market.

• Intercept: 1.00

Intercept

• Larger the intercept is relative to the utilities, the more mature the market.

• "Harder entry barrier."

Intercept

1.Price: $72.Taste: Sweet3.Alc. Cont. 14%4.Style: Premium5.Calories: 1006.Ads: Fun or

Sophisticated7.Type: Craft

TPU Best Product

TPU: 1.33

TPU Best Product

1.Price: $132.Taste: Bitter3.Alc. Cont. 8%4.Style: Premium5.Calories: 2006.Ads: Sporty7.Type: Domestic

TPU Worst Product

TPU: .72

TPU Worst Product

Overall Feature Importance

Current Market Share

Market Simulation: Our Change

Market Share

Market Simulation: ReactionMarket Share

o Reduce Priceo Enhance Image to Appear

Sophisticated o Stronger Flavoro Premium o Imported

Recommendation