Sam Adams Beer Company distribution strategies
Type of distribution network used
Sam Adams Beer distribution strategies differ with the flow of time. If to pay attention to the first distribution strategy that was used to promote the beer, it is significant to turn to the history. In far 1970’s Jim Koch made several samples of beer and went for doors to doors offering the restaurants to serve his product. In the modern world this strategy is of no use, still, this was the first campaign that was crowned with success. The beer was named Samuel Adams Boston Larger. The main advantage of the Sam Adams Beer was in its perfect taste and high quality product (Samuel Adams).
Evaluation of how distribution is accomplished
Beverage Distributors Inc. is the world known company that deals with the distribution of the beer of different trade marks. The Sam Adams Beer Company uses the services of this company. The distribution is accomplished both to the national territories and abroad.
Even for now, functioning in the huge world with great opportunities, the company tries to save its image of home-made brewery. The taste of the Sam Adams Beer is unique. 2008 was the year when the brewery designed a new type of beer, chocolate one. The new type of beer was offered on Christmas holidays for most citizens to have “the ideal choice for toasting holiday cheer – and the perfect chaser for washing down all that Christmas fruit cake” (Reidy par. 1).
Strengths/weaknesses of distribution systems
Considering the advertizing campaigns of the Sam Adams, several ideas strike attention. First of all, the company stresses on the happiness and love that rules those who create the beer for people. Furthermore, slime and laugh supports all the ads of the company. The unique taste and quality of the beer is also considered (Samuel Adams). Still, seeing some changes on the world market on brewery and the reduction of sales of such giants of world beer industry as Budweiser, Miller, Corona Extra, Bud Light, and Heineken, the Sam Adams decided to remind the world that it is just a small company not to remain the only brewery on the country market (Mullman par. 1).
Opportunities/threats related to distribution
Sam Adams Company has great many opportunities for the distribution and product promotion. The company uses two types of distribution, direct and indirect. One of the main opportunities for direct distribution is to create the specialized shops with the beer of only Sam Adams trade mark. The customers will be satisfied to with the product that is created especially for them. Furthermore, the Internet sales are also significant. The customers may visit the Company site, choose the beer and order it. The Sam Adams products are also available from different online-shops who deal with different kinds of products.
The main threat for the company still remains the Internet sale, especially abroad. The company is unable to follow all the offers presented on the Internet and it may be involved in the fraud. The image of the company may suffer. Furthermore, the misunderstanding and some problems with delivery may create some problems to the customers, who would like to use online services.
Pricing policies of Sam Adams Beer Company
Price objectives and strategies in past
Relating to the past of the Sam Adams brewery pricing, it is significant to remind that when the beer company was established, in 1870s, there was no good beer at all. Furthermore, the brewery industry was not developed and the companies did not compete too much. The appearance of one more beer was not welcomed and people would not pay much for the other drink without being sure in its quality. Thus, the first beer that was offered was of the highest quality that could not be compared to the quality of the beer that existed. Still, the price of the Sam Adams beer was the same.
As it was mentioned above, the first steps of the Sam Adams beer on the country market were made via personal sales. Further, the company chose the other communication techniques for the beer promotion. One of the main strategies of the company is to promote not the price but the beer itself. Roper once said ”Our approach to business has been to spend money on the beer, not to spend money elsewhere in the company” (Reed par. 7). This policy was met with anticipation and people liked it.
Opportunities/threats related to pricing
Turning to the discussion of the price policy of the Sam Adams Beer Company, it is significant to mention that the company does not try to regulate the demand on the beer via price. It is possible to go to the market and see that the average price on 6-pack Sam Adams beer is $8.50. Comparing to other trade marks the price is not high. Heineken costs $8.99 and Sierra Nevada Pale Ale also costs 8.99. Even the change and perfection of the glass for bottles did not influence the price of the beer (Kahn par. 2).
Communication strategies the company uses
Past promotion policy
The communication of the company with the customers is conducted by means of different advertizing campaigns. For example, taking the advertizing campaign devoted to the question of the human resources, the company’s slogan was “Happy employees make better beer” (Samuel Adams). The relation to the social problem is crucial here. The traditions and standards are highly valued in the company and some advertising campaigns are based on this topic.
The company’s sales depend directly on the image it provides on the customers. The positive image of the company is crucial. The ad devoted to standards remind the customers that the brewery of Sam Adams is not a huge company where only money are valued but stresses to the fact that it is a home-made brewery where employees put their heart and soul into the beer they produce (Samuel Adams).
It is crucial to mention that possessing the image of the home-made company, the scope of the company’s sales is rather huge. The company managed to function not only in the country, but also worldwide. The company cares of the customers. That is why the main priority for it is the quality and beer taste, not huge financial income (Reed par. 7). The company cares greatly of its employees as the quality of the beer depends directly on them. Constant and regular training are conducted with the purpose to improve the skills of the company workers. Furthermore, the use of innovative technologies and other facilities is one more reason for regular training.
The improvement of the glass for the Sam Adams beer bottles is the other campaign that is directed to the increase of the sales and is considered to be the company promotion strategy. To support this idea, it is possible to relate to Professor Patrick Kaufmann, who said
Beer has a huge social dimension to it. If you can get people talking about a familiar product in a new and positive way, you’re tapping into marketing’s single most important source for attitude change, which is word of mouth. Can a new glass do that? Maybe (Kahn par. 16).
It is impossible to disagree with the Professor as the new design of a package is one of the promotion strategies, especially if the package is also innovative and is not used in other companies.
Opportunities/threats related to communications
It is significant to notice that the advertizing campaigns of the Sam Adams Beer Company are mainly successful. Considering different types of literature, sources and case studies, there was not noticed any failures that could harm the positive image of the company. The home-made image remains one of the main opportunities of the company to continue its communication strategies. Even though, being the company that produces alcohol drinks, it is not guaranteed to avoid some scandals and misunderstanding that can easily happen (Hillary par. 2).
Environmental factors: Mutual influence on Sam Adams Beer Company and its being under this influence
Checking the environment of the Sam Adams brewery and the economical, political, social, and technological influence on the company, it is crucial to mention that the company is developing in the highly competitive sphere. The beer is one of the most widen industries in the world as this low-alcohol (as it is used to be) drink is rather popular in the world.
The restrictions from the political side are widespread only on selling the drink to people younger than 21.
The economical sphere is considered to be the most competitive. Thus, paying attention to the fact that the company directs it attention to the quality but not to the price, it tries not to be involved in the price competition. Still, it is unable to distract from it absolutely.
Furthermore, the social environment in the Boston Beer industry is friendly and supportive. This is possible to see from the example of then campaign that was conducted in the largest nation’s brewery, Boston Beer Co. The main idea of the social event was to provide the financial support to the small brewery companies in the region (Pitt par. 4).
Relating to the innovative technology change, it is crucial to remember the Sam Adams’ innovation, “Samuel Adams 2009 Utopias – a series of brews with a Guinness World Record-holding 27 percent ABV” (Holloway par. 3). Such an opportunity became possible with the development of innovative technologies that are used on the manufacturing. Thus, it is possible to dwell upon supportive environment for the development of the brewery in the Boston region and the good chances for Sam Adam Company to develop.
Hillary Chur. “Sam Adams unlikely to be hurt by scandal. ” Advertising Age. Web.
Holloway, Lindsay. “Samuel Adams, brewing innovation.” LA Business Technology Examiner. 2009. Web.
Kahn, Joseph P. “With new design, foam follows function.” The Boston Glob, 2007. Web.
Mullman, Jeremy. “Sam Adams wants to show you just how small it really is.” Advertizing Age. 2010. Web.
Pitt, David. “Sharing beers: Largest craft brewer offers scarce hops to rivals.” Pantagraph. 2008. Web.
Reed, Keith. “’Only on the beer’ strategy brews up profitability.” The Boston Glob, 2006. Web.
Reidy, Chris. “Sam Adams unveils chocolate dessert beer.” The Boston Glob. 2008. Web.
Samuel Adams. The Boston Beer Company. 2010. Web.