Samuel Adams

Marketing Brief

December 12, 2011

Table of Contents

Brand Overview 1 Market Distribution 3 Market Segmentation 4 Current Marketing Efforts 6 Competitive Charts 12 Positioning and Delineating the Competition 15 Programs/Proposal Recommendations 17 References 25

1

Brand Overview

Samuel Adams is an American brand of beer brewed and owned by the Boston Beer

Company. Founded in 1984 by Jim Koch, Harry M. Rubin and Lorenzo Lamadrid in Boston,

Massachusetts, the Boston Beer Company is now the largest American-owned beer company

(following the sale of Anheuser-Busch to InBev). The brand name was chosen in honor of Samuel

Adams, an American patriot famous for his roles in the American Revolution and Boston Tea Party.

He was also renowned for his brewing tradition.

The company currently produces 12 varieties of beer year-round: Boston Lager, Samuel

Adams Light, Boston Pale, Pale Ale, Cherry Wheat, Cream Stout, Brown Ale, Hefeweizen, Scotch

Ale, Black Lager, Honey Porter and Irish Red. Boston Lager, with its trademark blue-flame tap

handle, is one of the most widely distributed beer drafts, readily available around the United States.

Additionally, the company brews 19 styles of seasonal beer that are distributed through

seasonal variety packs based on the time of year. Other specialty brews that exist for limited runs

include the Brewer Patriot Collection, Utopias and the Barrel Room Collection. Altogether, Samuel

Adams offers 39 distinct flavors of beer available in bottles throughout the country.

Samuel Adams is labeled as an American Craft Brewer, which refers to its size, level of

independence and tradition. Koch has often refused to sell to international conglomerates and

bigger breweries with the intention of maintaining Samuel Adams' level of independence and never

having to compromise on his beers. The recipe for the original Samuel Adams Boston Lager has not

changed since the first brew. The Boston Beer Company’s number of barrels sold has varied by year

over the past three years. However, the company’s revenue per barrel has steadily increased,

according to the Samuel Adams 2010 Annual Report. The following table shows the number of

barrels sold from 2008 to 2010 and the net revenue per barrel each year.

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Samuel Adams Sales Figures 2008-2010 2008 2009 2010

Barrels sold (in thousands)

1,992 2,021 2,259

Net revenue per barrel (in thousands)

$170 $187 $204

According to the Brewers Association (2010), in the U.S. beer market, Samuel Adams holds

a small percentage of the market share as part of the 7.0% occupied by craft brews in the chart

below. Bud Light owns the largest market share at 28.5%. Market share drops significantly to 11.4%

for second place to Budweiser, both produced by the same company. As a company, Anheuser-

Busch owns the largest market share of the U.S. beer market, 55.4%, followed by Miller-Coors.

The Brewers Association also reports that of the craft breweries, the Boston Beer Company

has consistently held the top position. The company’s sales in 2010 were larger than the next five

craft breweries combined, which are: Sierra Nevada Brewing Co., New Belgium Brewing Co.,

Spoetzl Brewery, Deschutes Brewery and Independent Brewers United. From 2009 to 2010, overall

beer sales in the United States went up by only 0.6%; however, craft beer sales increased by 14.6%.

U.S. Beers Market Shares 2010 Total = $26.2 billion

Bud Light 28.5% Budweiser 11.4% Coors Light 10.2% Other 13% Miller Lite 9.1% Craft Brews 7% Natural Light 6.0% Busch Light 4.0% Busch 3.6% Miller High Life 2.7% Keystone Light 2.6% Natural Ice 1.9%

3

Market Distribution

The Boston Beer Company relies on one primary channel of distribution for its line of Sam

Adams products, indirect intermediary distribution. Samuel Adams uses brokers or agents to stock

and distribute its product to the consumer. Every state in the United States has a different method

of handling alcoholic beverages, which creates the need for a fairly deep channel of distribution.

Generally, Samuel Adams products are shipped from the brewery and factory to a distributor, who

then sells it to a retail establishment, such as a liquor store, restaurant or convenience store.

The vast majority of states do not allow manufacturers to act as distributors, forcing Samuel

Adams to find middlemen to go through the distribution channel and get the product to the

consumers. This is an important point, as Samuel Adams has to use point-of-sale merchandise at

retail establishments and bars in order to control the sale and distribution of its product. This means

strict rules and regulations on the dispensing and promotion of its product, particularly at

restaurants and liquor stores.

In convenience stores, Samuel Adams has witnessed noticeable gains in sales and promotion

in recent years. According to Koch, Samuel Adams has been “getting distribution gains and getting

pull-through. Because of the high service levels and the influence that the big brewers have in that

channel, convenience stores have been slower to take advantage of the craft beer opportunity. For

us, it’s a big opportunity. In craft beer, we are kind of the lead dog pulling the sled into new

channels and distribution.”

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Market Segmentation

Consumer Demographic Prof i l e

Age

Based on the research conducted by Mintel, 2004, more than half of the respondents’ age

was 21-44. Among them, respondents who are newly legal age drinkers, aged 21-24, are the key

consumers of the beer market based on the chart below. This age group prefers regular, imported

and ice beers.

All (%) 21-24 (%) 25-34 (%) 35-44 (%) 45-44 (%) 55-64 (%) 65+ (%)

Light/low-calorie beer 29 28 34 33 29 26 18

Regular domestic 27 36 31 30 27 24 18

Imported beer 27 38 34 31 26 22 15

Microbrew beer 10 12 14 12 10 7 3

Ice beer 7 15 9 8 6 3 2

Low-alcohol/no-alcohol beer 6 7 5 6 5 6 5

Any beer drinker (net) 47 54 53 53 48 43 33

Source: Fall 2004 Simmons NCS/Mintel Beer has lost consumers within the youngest age group, according to a 2004 survey be Morgan

Stanley. In the report, spirits have become the most popular drink choice among 21- to 27-year-olds.

Some 40% of these respondents say spirits are their favorite drink, compared to less than 30% in

2003 (Mintel, 2004).

Income

According to Mintel, beer drinking strongly correlates with income. The higher the household

income, the higher consumption of beer reported. This applies to all beer types. Although beer is

relatively inexpensive when compared to other alcoholic beverages, it is an optional beverage

purchase, not essential, and simply does not make it on the grocery list of most lower-income

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households. In addition, many lower-income households contain older members, who in general

drink less alcohol (Mintel, 2004).

All (%) Under $25K $25-29.9K $50K-74.9K $75+

Light/low-calorie beer 29 19 26 32 34

Regular domestic 27 22 25 29 31

Imported beer 27 18 22 28 34

Microbrew beer 10 4 6 11 15

Ice beer 7 6 8 6 6

Low-alcohol/no-alcohol beer 6 6 6 6 5

Any beer drinker (net) 47 37 42 51 54

Source: Fall 2004 Simmons NCS/Mintel

Gender

Men are much more likely than women to drink each type of beer (Mintel, 2004). However,

the beer drinkers are choosing beer types depending on their mood or circumstances. In the

research, 47% of consumers drink one or more types of beer, and no more than 29% consume a

single beer type (Mintel, 2004).

All (%) Male (%) Female (%)

Light/low-calorie beer 29 36 22

Regular domestic 27 39 16

Imported beer 27 37 18

Microbrew beer 10 16 6

Ice beer 7 9 4

Low-alcohol/no-alcohol beer 6 7 4

Any beer drinker (net) 47 61 34

Source: Fall 2004 Simmons NCS/Mintel

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Current Marketing Efforts

Advert i s ing

When Koch launched Samuel Adams in 1984, he targeted imported-beer drinkers in 30 bars

in Boston, where he brewed his first batch of the craft beer. Twenty-seven years after his company’s

founding, Koch still stands by his initial pitch to local bar managers: "Try our beer: It's handcrafted

in small batches" (Inc. Magazine, 2007).

In the 1980s, Koch established the brand’s media presence through a series of

conversational 30- and 60-second radio spots, in which he served as the brand spokesman

(BusinessWeek, 2003). In Samuel Adams’ current radio advertisements, Koch can be heard promising

that the original Boston Lager’s head is strong enough to hold the weight of a bottle cap.

Even after the company went public in 1995 and Samuel Adams expanded into media with

wider audience appeal, Koch served as the company’s spokesperson, positioning his brand as a

quaint Boston-based company with humble origins that takes pride in its craftsmanship (The Daily

Beast, 2010). Samuel Adams differentiates itself from its larger competitors by highlighting its

products in advertisements, rather than trying to sell a lifestyle. While Samuel Adams devotes a

sizable portion of its budget to outdoor advertisements in its 400 wholesaler markets, and national

TV, radio, print and internet advertising campaigns, the brand maintains its small-guy, independent

image (Boston Beer Company 2010 Annual Report). Koch appears in most of Samuel Adams’ TV

commercials, discussing the care that goes into ingredient selection and the brewing process.

Print campaigns have included full-page advertisements in top-tier nationally distributed

magazines such as Newsweek and Sports Illustrated. Staking its claim as the largest American craft

brewer, Samuel Adams also targets special-interest publications such as All About Beer Magazine and

Draft Magazine.

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National ad campaigns aim to both educate and entertain customers. In the spirit of its

tagline, “Take Pride in Your Beer,” Samuel Adams TV advertisements play as 30-second narratives

about the craftsman company culture. In 2010, Samuel Adams’ “Growing Up Small” campaign

featured ads that revealed that its U.S. market share is 0.9%. In one ad, Koch is filmed in his kitchen,

explaining how he started the company with just three employees (AdAge, 2010). Regardless of

whether advertisements are promoting Boston Lager, a seasonal offering, or speaking to the

company’s origins, each spot is distinguishable by its quick editing, usage of theme song “Who Do

You Love?” by George Thorogood and its tagline, “Take Pride in Your Beer.”

Event Market ing/Sponsorship

Since opening its Boston brewery to the public in 1988, Samuel Adams asks visitors for small

donations during free tours which have gone to a variety of charities over the years, including Youth

Enrichment Services, the Old Granary Burying Ground where Samuel Adams is buried, and Boston

Cares. Many of the companies Samuel Adams is affiliated with are based in Boston or New England,

showing the company’s pride in where it came from as well as staying true to its roots. While the

company supports hundreds of organizations each year, it has more recently been able to create

larger partnerships benefiting the following programs.

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HandsOn Network (http://www.handsonnetwork.org , http://www.bostoncares.org)

The Boston Beer Company works with HandsOn Network, the largest volunteer network in

the United States, which includes more than 250 HandsOn Action Centers in 16 countries.

HandsOn Network inspires, equips and mobilizes people to take action through programs that turn

their ideas for change into impactful projects, like wheelchair ramp construction. Samuel Adams also

provides financial and in-kind support to Boston Cares, the Boston arm of the HandsOn Network,

hosting volunteer events and fundraisers benefiting the organization.

The Sean McDonough Charitable Foundation

Nationally renowned sportscaster Sean McDonough and his sister Erin established the Sean

McDonough Charitable Foundation in 2002 with the goal of raising and distributing funds to

children's charities throughout Massachusetts. The Boston Beer Company is a proud founding

sponsor of the foundation, through its annual support of the Samuel Adams Celebrity Draw Party &

Auctions, which kick off the Celebrity Golf Classic held the following day.

Samuel Adams Short Story Contest, Nantucket Film Festival

Samuel Adams sent the winner of the Short Story Contest to the first annual Zoetrope Short

Story Writers' Workshop in Belize in July 2011. The workshop was hosted by Zoetrope: All Story, a

short story magazine published by Francis Ford Coppola. Samuel Adams and Zoetrope: All Story

teamed up to publicize the Samuel Adams Short Story Contest, which was promoted in bars and

restaurants in June 2011, as well as at the Nantucket Film Festival June 17-23, 2011, an event also

sponsored by Samuel Adams.

OctoberFest by Samuel Adams

Samuel Adams holds an OctoberFest in honor of the German tradition each September,

showcasing 15 varieties of beer, live bands and traditional German cuisine. The festival lasts a full

weekend and has become a Boston tradition.

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Consumer Promotions

Samuel Adams offers several contests and sweepstakes involving the consumer year-round

as an effort in consumer promotions. The company’s marketing campaigns have continuously

supported community and customer involvement, particularly highlighting the homebrewer, as well

as serious and knowledgeable beer consumers.

Patriot Homebrew Contest

The Homebrew Contest exemplifies the company’s

values of homebrewing and beer traditions. This contest is in its

fifth year and focuses on the New England market. Samuel

Adams partners with Gillette Stadium in Foxborough,

Massachusetts, by presenting the contest winners at an event at

the stadium. The company also partners with beer-wine.com by

promoting the website as a shop to purchase equipment to be used for the contest.

Longshot American Homebrew Contest

The Longshot American Homebrew Contest is a

national-scale version of the Patriot Homebrew Contest, in

which Samuel Adams invites homebrewers to follow in Koch’s

footsteps and propel their brew to national distribution. The

first contest was held in 1995 and continues annually. This contest brings the home-grown message

to a national level so consumers everywhere can be a part of the local feel. This contest also utilizes

the consumer to propel its publicity.

Beer Lover’s Choice

For the past six years, Samuel Adams has held the Beer

Lover’s Choice event, marketed to consumers across the country.

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Consumers can cast a vote between two of Samuel Adam’s specialty brews, having a say in the beer

Samuel Adams offers. People can visit the brewery in Boston, or visit special events the brewery sets

up in select cities around the country to showcase the two brews.

Player for a Day Promotion

During the 2011 baseball season, Samuel Adams

affiliated itself with the Spokane Indians for a free entry

contest. The contest entailed entering one’s name, age and

phone number, and the winner spent a day with the Spokane

Indians, meeting the manager, and receiving a stipend.

Promotional Codes

Samuel Adams offers its subscribers promotional codes that can be used while shopping at

the company’s eStore. The codes provide discounts on Samuel Adams merchandise and let the

consumer feel rewarded for liking the products.

Publi c i ty and Publ i c Relat ions

Brewing the American Dream

Samuel Adams utilizes public relations to promote its image and convey its messages to its

target audience, and Samuel Adams’ Brewing the American Dream program is one of the most

renowned examples. The program was launched in June of 2008 by Jim Koch and The Boston Beer

Company. It provides funds and mentoring that allow small food & beverage companies to realize

their dream. Koch has said that he values this program because it reminds him of the hard times he

had when he first established the company.

The Boston Beer Company partnered with nonprofit organization ACCION USA and

donated $25,000 to establish the Samuel Adams Brewing the American Dream Loan Fund. This

fund helps business owners who are not able to acquire a bank loan. Through educational

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workshops, the program provides an opportunity for local entrepreneurs to meet one-on-one in 20

minute intervals with Samuel Adams employees to get advice and ask questions about web

development, marketing, packaging, design, publicity, pricing, and sales and distribution for help in

starting their own businesses.

Press Releases

Samuel Adams has issued several press releases regarding the benefits of the American

Dream program, and many news outlets, including newspapers, magazines, television and the web,

have presented this information. Samuel Adams routinely issues press releases to put its news out to

the media. In 2011, the company issued between one and three press releases per month.

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Competitive Charts

In terms of Samuel Adams’s competitors in the mass-produced beer field, Budweiser and

MillerCoors are prominent examples, especially their products: Budweiser, Bud Light, Coors Light

and Miller Lite. Those two brands differ from Samuel Adams because they emphasize affordable

prices. However, Samuel Adams stresses its high-quality beer, so its pricing is higher than Budweiser

and MillerCoors.

Competitive Chart (Major beers) Samuel Adams Budweiser MillerCoors Product Category description

American craft beer Mass-produced beer targeting normal drinkers

Mass-produced beer targeting normal drinkers

Specific product Boston Lager (original) Samuel Adams Light Seasonal: Chocolate Boch Cranberry Lambic Dunkelweizen Harvest Pumpkin Ale Noble Pils Octoberfest Old Fezziwig Ale Summer Ale White Ale Winter Lager Bonfire Rauchbier East West Kolsh Raustic Saison

Budweiser, Bud Light, Budweiser Select, Budweiser Select 55,Budweiser Select American Ale, Budweiser Select Chelada(bo lds are our main compet i tors )

Coors Banquet, Coors Light, Extra Gold Lager, Golden Draft, Icehouse, Keystone Ice, Keystone Light, Keystone Premium, Magnum Malt Liquor, MGD 64, Mickey's, Mickey's Ice, Miller Chill, Miller Genuine Draft, Miller High Life, Miller High Life Light, Miller Lite (bo lds are our main compet i tors )

Price Size The traditional bottle size is 12 oz.

Specialty beers are packaged in 750 mL bottles.

7, 8, 10, 12, 16, 18, 22, 24, 32 and 40 US ounce containers, half-barrel (15.5 US gallons), quarter-barrel, 1/6 barrel and beer balls (5.2 gallons)

8-ounce cans, 12-ounce cans, 24-ounce cans. 8-packs of 7-ounce bottles and 24-packs of 8-ounce cans. 12-ounce glass bottles

Suggested Retail Price

6-pack is between $7.99 and $8.99. 12-pack costs between $13.99 and $15.99.

6 pack of Bud light/ Budweiser bottles and cans are about$ 7; 24-12oz cans Bud light/ Budweiser are about$15.99; 30-12oz cans Bud light/ Budweiser are about$18.99

6 pack of Miller Lite/ Coors Light bottles and cans are about$ 7; 24-12oz cans Miller Lite/ Coors Light are about$15.99; 30-12oz cans Miller Lite/ Coors Light are about$18.99

Place

Where Can be purchased all over the United States and in 22 countries.

can be purchased all over the United States, and other 16 countries

can be purchased all over the United States

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Promotion Media Advertising, Event Marketing, Sponsorship, Consumer Promotions, Publicity and Public Relations, Direct Marketing (newsletter)

Media Advertising ex: Super Bowl Commercial Campaign ex:“Bud – Weis – Er” and “Real Men of Genius” campaigns. Budweiser Girls: Budweiser hires attractive females over the age of 21 to promote the lifestyle and attributes of Budweiser beer.

Ads ex: Dominoes Campaign ex: MillerCoors Urban Entrepreneurs Series Miller Lite girls: MillerCoors hires attractive females to promote their products

Market share Less than 1% of the American beer market. 20.20% of the American craft beer market.

Bud Light has 19.1% of the beer market share; Budweiser's has 8.7% of the beer market share

Coors Light currently has 8.5% of the beer market share; Miller Lite lags a bit behind at 7.5%.

Customer Demographics

21-44 year-old men 18-34 year old consumers who are beer heavy user; Sex: mostly male; Occupation: technical; clerical sales; students

18-34 year olds who like to get the most out of life and enjoy being out and about with their friends Sex: mostly male

Competitive Chart (Craft beer) Samuel Adams Sierra Nevada New Belgium Brewing Co. Product Category description

American craft beer American craft brewery

European-style

Specific product Boston Lager (original) Samuel Adams Light Seasonal: Chocolate Boch Cranberry Lambic Dunkelweizen Harvest Pumpkin Ale Noble Pils Octoberfest Old Fezziwig Ale Summer Ale White Ale Winter Lager Bonfire Rauchbier East West Kolsh Raustic Saison

Pale Ale Porter Stout Kellerweis (Hefeweizen), Torpedo (IPA) Seasonal: Glissade Summerfest Tumbler Celebration Ale

Sunshine Wheat Fat Tire 1554 (Black Ale) Blue Paddle (Pilsner) Trippel Ranger IPA Belgo IPA Abbey (Belgian Style) Mothership Wit Seasonal: Hoptober Snow Day

Type of packaging The traditional Samuel Adams beer comes in a 12 oz. dark brown beer bottle. Each bottle has a Samuel Adams logo label on it. Boston Lager and Octoberfest are available in 24, 12 or 6-packs. Seasonal beers are sold in 12-packs, and these flavors are only available in season.

Sierra Nevada ales come bottled in amber glass. Beers are produced in 12 or 24 ounce sizes, and distributed in 6-packs, 12-packs and 24-bottle cases.

New Belgium beers are made from pure stream amber glass. The brewery uses the Fat Tire bicycle logo on all of its labels because it is more recognizable than the New Belgium logo.

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Boston Lager, Noble Pils, Summer Ale, Octoberfest and Winter Lager are available draft-style and are distinguished by their blue taps.

Number of products offered

39 17 23

Price Size/Type The traditional bottle size is 12 oz. There are two sizes of beer

bottle: 12 oz. and 24 oz.

New Belgium beers come in two standard sizes: 12 oz. and 24 oz. 24 oz. bottles are sold separately and 12 oz. bottles are sold in 6- and 12-packs.

Suggested Retail Price

The suggested retail price for a 6-pack is between $7.99 and $8.99. The suggested retail price of a 12-pack is between $13.99 and $15.99.

The suggested retail value of a 12 oz. 6-pack is $8.99. The 24-pack of 12 oz. bottles costs $30.99. The 12-pack 12 oz. bottle costs $15.99.

The suggested retail price of the 22 oz. flagship Fat Tire beer is $2.99. A 6-pack costs about $7.20 and 12-packs cost $14.99.

Place Samuel Adams beers can be purchased all over the United States and in 22 countries. (2010 Annual Report)

Produced in California, Sierra Nevada is sold through independent distribution centers around the country.

The brewery is based in Colorado, and distribution has spread to surrounding states. Currently, New Belgium beers are distributed in 26 states. Customers can buy Fat Tire and other NBB beers in 28 states.

Promotion Tactics used

Media Advertising, Event Marketing, Sponsorship, Consumer Promotions, Publicity and Public Relations, Direct Marketing (newsletter)

Media Advertising, Publicity and Public Relations, Sponsorship and Event Marketing, Consumer Promotions

Event Marketing and Sponsorship, Consumer Promotions, Direct Marketing, Social Media Advertising

Market share Less than 1% of the American beer market. 20.20% of the American craft beer market.

Sierra Nevada is the second largest craft brewer in the country and the sixth largest brewer in the US. 7.94% of the American craft beer market.

The third largest craft brewery in the country, with 6.4% of the craft brew market.

Customer Demographics

21-44 year-old men 21-34 year-olds, looking for variety in their beer. Respect quality beer and appreciate the environment.

Beer drinkers with an active lifestyle, and appreciate the environment.

Others Sierra Nevada has won awards for being a green brewery with the factory powered by solar energy. (Fast Company)

Offers grants to local non-profits and supports advocacy for transportation legislation.

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Positioning and Delineating the Competition

Positioning/Business Opportunities:

1. Samuel Adams already works with many charities, but has yet to marry those ventures with the

sale of its beers. Tying a charity to a celebrity would make it more salient and relevant.

2. Many craft beer trade shows occur nationwide, but neither Samuel Adams, nor its competitors,

attends these trade shows.

3. Samuel Adams’ seasonal brews are very popular among consumers, but they only come in variety

packs. Showcasing two of the more popular holiday brews by selling them individually in six-packs

could increase sales.

Positioning Statement: American craft tradition in a bottle.

Elevator/Positioning Statement:

Samuel Adams is for the experienced, discerning beer drinker who is dissatisfied with mass-

produced, cheap beer. Our product is a classic American craft beer that provides flavor and

traditions, unlike Miller/Coors and Budweiser. We provide a higher quality American craft beer.

Posi t ioning Charts

Celebrity Charity Positioning Chart

Special Brew with Celebrity for Charity

Samuel Adams

Sierra Nevada

New Belgium Brewing Co.

Budweiser

MillerCoors

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Trade Show Visibility Positioning Chart

Craft Brewers Conference American Craft Beer Week

Samuel Adams

Sierra Nevada

New Belgium Brewing Co.

Budweiser

MillerCoors

Seasonal Brew Positioning Chart

Seasonal (Specific) Beer Variety Pack

Seasonal (Specific) Beer Single Flavor

Samuel Adams X

Sierra Nevada X

New Belgium Brewing Co. X

Budweiser

MillerCoors

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Programs/Proposal Recommendations

Celebri ty Chari ty Program

Program #1: Celebrity Charity

Objective: Samuel Adams will partner with a famous Boston-associated celebrity to develop a new

brew, with a portion of the proceeds from each six-pack purchased going to a charity of the

celebrity’s choice. This program will create buzz for the brand and attract new drinkers.

Strategies: In the first year, Samuel Adams will partner with Mark Wahlberg, a Massachusetts native

who appeals to the male 21-44 year-old beer-drinking demographic. Wahlberg will be flown into the

Samuel Adams brewery for a day to meet with Samuel Adams brewmasters, who will educate him

on ingredients and the brewing process. The team will collaborate to create the Samuel Adams

Wahlberg Ale, which will be introduced as a limited-time batch as part of the Brewmasters

Collection. Proceeds will be donated to The Mark Wahlberg Youth Foundation, a Newton-based

non-profit that funds youth organizations. This program will draw new drinkers, both fans of the

actor and people who like to support causes, and will increase profits. The Celebrity Charity

Program will also highlight Samuel Adams’ commitment to community involvement and long

history of charitable giving, which will win new supporters. Based on the success of the first year,

the Celebrity Charity Program will be implemented annually, supporting charitable organizations

involving other famous Boston-area natives who will serve as Samuel Adams spokespeople.

Tactics:

Tactic 1: Publicity/Public Relations – The first phase of marketing will be a publicity campaign.

Through creation of press releases and other publicity materials, outreach and extensive media

relations, the public relations strategy will be to obtain placements in both traditional and online

media outlets. The release of Samuel Adams Wahlberg Ale, its first celebrity-backed beverage, will

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be pitched to Boston-area news stations, entertainment and celebrity-focused magazines, beer trade

publications, talk shows and influential celebrity gossip and beer-industry bloggers.

Deliverable: Stories about Samuel Adams Wahlberg Ale will appear in at least one trade publication

and one influential industry blog; a profile of Wahlberg detailing his charitable work and his beer

collaboration will appear in at least one major entertainment publication; and Wahlberg will make at

least one talk show appearance to discuss his partnership with Samuel Adams and the charity.

Benchmarking: The publicity campaign’s reach will be measured through media impressions,

tracking of online traffic and monitoring social media conversations, all of which will be captured

through specialized public relations software.

Tactic 2: Event Marketing/Sponsorship – The kick-off of the Wahlberg Ale will be marked by a

VIP party held at the Samuel Adams brewery in Jamaica Plain, where Wahlberg will be in attendance

to accept a check from Jim Koch on the behalf of Samuel Adams and pose for photo opportunities

with both local and national media. Only Wahlberg Ale and other signature Samuel Adams brews

will be served, and the food at the event will incorporate Wahlberg Ale into the recipe. About 500

people will be invited to the event, including reporters for local and national outlets, Wahlberg’s

celebrity friends and influential Boston socialites. The purpose of this event will be to first introduce

the product and second, to generate positive media coverage around the product and the brand.

Deliverable: The party will receive coverage on one local TV station that night, one article will

appear the following week in a local publication and one major entertainment/celebrity magazine

will publish photos from the party.

Benchmarking: Attendance and interactions with media professionals will be documented, media

mentions will be measured and conversations about the event will be monitored for a month.

Tactic 3: Media Advertising – While publicity and a sponsored event will generate buzz around the

product, media advertising will create awareness and familiarity with Wahlberg Ale, which will drive

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demand, especially with national consumers. In each of the advertisements, Wahlberg will appear as

brand spokesman, endorsing his ale. Wahlberg and Koch will appear in a TV spot and Wahlberg will

be shown drinking his beer in print advertisements. The Ale will also be promoted through online

advertising, as paid placements on specific websites appealing to Samuel Adams’ audience segment,

through a Facebook ad campaign and search engine optimization.

Deliverable: Wahlberg and Koch will shoot one TV ad together and Wahlberg will be featured in

two different magazine ads, which will be tested against each other for effectiveness. Banner ads will

be placed on at least five high-traffic websites, and Samuel Adams will push the Wahlberg Ale

through a Facebook campaign.

Benchmarking: Facebook insights will measure Facebook interactions with the brand, and web

analytics will measure the effectiveness of online ads. TV ads will be measured by viewership.

Overall effectiveness of the advertising campaign will be judged by profit figures.

Celebrity Charity Budget Item Cost Celebrity Engagement Fee $1,000,000, of which $100,000 will be written out in a

check to Wahlberg’s foundation Publicity – hours spent writing press releases and promotional materials, researching and developing databases on contacts, conducting media outreach such as putting together product packages to mail to reporters

500 hours = $50,000

Event Planning and Execution – catering, decoration, creation and distribution of invitations, photographer engagement, event management, event follow-up

$1,000,000

Advertising – clothing and props, equipment costs and production costs, payment to distribution channels for 1 30-second TV spot, 2 print ads, 5 banner ads and a Facebook campaign

TV ads - $6,000,000 Placement in American Brewer Magazine and four top-tier national publications - $2,000,000 Online ads - $1,500,000

Total program cost = $11,550,000

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Trade Show Visibi l i ty Program

Program #2: Trade Show Visibility

Objective: Samuel Adams will increase its attendance at craft beer trade shows in order to raise

awareness of Samuel Adams among its target audience and new market segments nationally.

Strategies: While Samuel Adams attended a few trade shows in 2011, such as the Craft Brewers

Conference, maintaining a trade show presence and pursuing more trade shows will promote the

brand to current and new customers, as well as expose the brand to more competitors and keep a

pulse on the competition and the industry. Samuel Adams will participate in American Craft Beer

Week held by the Brewers Association May 14-20, 2012 in Boston. This event is conducted

simultaneously in all 50 states and allows breweries and beer companies to have opportunities to

connect with their fans. Craft Beer Week also holds local shows across the country at varying weeks,

and Samuel Adams will have a booth at five of these events in 2012: San Diego, Cleveland,

Louisville, Austin and San Francisco Beer Weeks. Samuel Adams will also attend the Cask Beer

Expo in 2012. This event serves a variety of beer and BBQ to attendees. This festive event can

narrow the gap between Samuel Adams and its target audience, as well as raise awareness among

customers.

Tactics:

Tactic 1: Publicity and Public Relations – Samuel Adams will issue several press releases to local and

niche television and radio stations, newspapers, magazines, blogs and websites that Samuel Adams

will be attending these trade shows. Samuel Adams will also invite influential news media and

bloggers to come to the event and offer them free trade show tickets. This will create a positive

image of the brand and build relationships with local media. After each trade show, Samuel Adams

will invite those media representative to a tour of the Samuel Adams brewery.

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Deliverable: Raise not only media awareness but also consumer awareness of Samuel Adams. Aim to

obtain coverage in 10 national and 10 local media outlets.

Benchmarking: The publicity campaign’s reach will be measured through media impressions,

tracking of online traffic and monitoring social media conversations, all of which will be captured

through specialized public relations software. Launch a survey to measure if consumers know more

about Samuel Adams after these efforts have been made.

Tactic 2: New media promotion – Establish a Facebook fan club and Twitter account to deliver

messages and event information effectively to consumers. By establishing these profiles, Samuel

Adams will be able to interact directly with consumers. This tactic will also get more information out

to consumers, alerting them of the schedule of trade shows Samuel Adams will be attending, and

when Samuel Adams will be in “your town.”

Deliverable: Narrow the gap between Samuel Adams and its customers and increase salience. Aim to

obtain 10,000 “likes” on Facebook and 8,000 followers on Twitter.

Benchmarking: Record how many people participate in this fan club, and how many users respond,

share and retweet posts daily.

Trade Show Visibility Budget

Item Budget

Trade show Planning and Execution – decorations,

literature, materials, event management, staffing

$800,000

Media Contacts Fee $200,000

Facebook and Twitter management fee $4,000

Total program cost = $1,004,000

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Single Seasonal Six-Packs Program

Program #3: Single Seasonal Six-Packs

Objective: Samuel Adams will sell its seasonal brews, currently only offered in variety packs, in

single-flavor six-packs. This program will satisfy a customer need in that many customers prefer only

one or two of the flavors in a variety pack.

Strategies: One of Samuel Adams’ USPs is its many seasonal brews offered quarterly. Beginning

with the winter seasonal brews in 2012, Samuel Adams will offer two of the most popular flavors,

Winter Lager and Holiday Porter, in six-packs, while still maintaining the variety packs. Fans and

beer aficionados have been clamoring to have their favorite seasonal brews available in greater

quantities than just two out of 12 in a variety pack. This program will boost sales and increase

customer satisfaction, as consumers will feel the brand listens to them. After the winter 2012 season,

sales of each type of six-pack will be measured. If sales outweigh all costs associated with this

endeavor, Samuel Adams will continue this program with its spring 2013 seasonal brews.

Tactics:

Tactic 1: Billboards/Outdoor Advertising – The first phase of marketing the seasonal six-packs will

be to put up prominent advertising in liquor stores and grocery stores, as well as billboards in

prominent locations near these venues for purchasing six-packs of beers. The idea is that the

consumer, while shopping for his standard beer products, will notice these advertisements and be

made aware of the fact that he can now purchase his favorite seasonal beer in designated six-packs.

Deliverable: Place billboards at freeway entrances into major cities, as well as near highly trafficked

streets. Post ad posters in liquor stores around the country, and mail the posters to the stores

directly.

Benchmarking: Measure audience reception based on foot traffic and sales figures of seasonal six

packs in the area in which the billboards and outdoor ads are placed.

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Tactic 2: Television and radio commercials – Commercials highlighting the trademark tradition and

craftsmanship of Samuel Adams’ beer, coupled with an emphasis on the changing seasons, will

deliver the message to the consumer that seasonal flavors will now be available for purchase in single

six-packs. The consumer will be reminded of his preference for the rich tastes of Samuel Adams, as

well as the feelings associated with that season, and made aware that he as the consumer now has

the power and ability to choose even more specifically which type of Samuel Adams beers he prefers

and will purchase. These 30-second spots will play during prime-time television on major cable

channels, as well as nationwide on radio stations. The objective will be to get the word out that this

long-demanded product tweak is now available. It is not expected that a significant sum needs to be

spent on advertising, as consumers are already aware of the seasonal flavors.

Deliverable: Advertising with 30-second spots on at least 20 radio stations around the country

whose audience demographic is men between 21 and 45 years of age, and 30-second spots on ESPN

and two cable stations during primetime to get maximum exposure. Ads will remind the

viewer/listener of Samuel Adams’ commitment to quality and its beers’ depth of flavor and

association with that particular season.

Benchmarking: Measure audience reception using portable people meters for radio and Nielsen

ratings for television.

Single Seasonal Six-Packs Program

Item Budget

Billboards/outdoor advertising execution – on major

freeways and in liquor stores

$500,000

Television spots – 30-second spots on ESPN and

two major cable networks during prime time

$1,000,000

Radio spots – 30-second spots on one appropriate

radio station in each of the top-20 markets

$1,000,000

  Total program cost = $2,500,000

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Executive Overview

Samuel Adams offers a classic American craft beer that is high in quality and brewed for the

experienced, discerning beer drinker who is dissatisfied with mass-produced, cheap beer. Samuel

Adams offers 12 varieties of beer year-round and 19 seasonal beers. Samuel Adams beer drinkers are

primarily men aged 21-44 years. While beer sales have gone down for the major beer brands,

Budweiser and MillerCoors, over the past year in the United States, sales have increased in the craft

beer segment. Samuel Adams owns the largest market share of the 7.0% market share that

comprises all American craft beers. In evaluating the current competitive landscape and Samuel

Adams brand identity and history, we identified three program recommendations:

Budget Summary

Program Budget

Program #1: Celebrity Charity

Samuel Adams already works with many charities, but has yet to marry those

ventures with the sale of its beers. Tying a charity to a celebrity would make it

more salient and relevant. This program will create buzz for the brand and

attract new drinkers.

$11,550,000

Program #2: Trade Show Visibility

Many craft beer trade shows occur nationwide, but neither Samuel Adams, nor

its competitors, attends these trade shows. Samuel Adams will increase its

attendance at craft beer trade shows in order to raise awareness of Samuel

Adams among its target audience and new market segments nationally.

$1,004,000

Program #3: Single Seasonal Six-Packs

Samuel Adams will sell its seasonal brews, currently only offered in variety

packs, in single-flavor six-packs. This program will satisfy a customer need in

that many customers prefer only one or two of the flavors in a variety pack.

$2,500,000

Total cost: $15,054,000

25

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www.samueladams.com

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