Social Media for The Craft Beers
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Location based service
is another social media platform that is gaining a lot of attention. Craft
brews are using this technology to give customers discounts and offers when
they check in on foursquare or other sites at bars and restaurants that serve
there beer. One of the big craft beer sites is called Untapped. It’s like
foursquare, but provides beer ratings and recommendation systems. People can
check in where they are and what they are drinking. This allows for others to
find certain beers that they are looking for or new places to get good beers.
This technology allows companies to target people in certain vicinity and
allows users to share with one another.
Online marketing is key
for craft breweries. They do not have the capitol to compete in other channels
with the big three (Budweiser, Coors, and Miller). They have to go a cheaper
way than buy TV spots. There answer is online marketing. They have been
leading the way in creating online presence in the beer community. They utilize
all the social media sites and much more. This has helped them gain some market
share from the big three over the years and increased sales in the craft beers.
Marketing in the beer
industry is big business. Companies like Budweiser spend around $134 million
dollars annually. This is a huge amount to spend on advertising. Beer companies
in the US are unique from the rest of the world. The beer market is dominated
by three major companies; Budweiser, Coors, and Miller. The big three own more
than 90% of the markets share, while the micro brews and craft breweries share
the rest. This has put the big three in an ideal position. They have so much
money that they are able to spend so much more on advertising that the small
companies can’t compete. Most of the spending on advertising for the big three
goes to TV ads. Out of the $134 million that Budweiser spent, only $3.9 million
was spent online. That to me is astonishing. To have so much power in the
industry and brand recognition, I believe they are falling behind in online presence
compared to the small craft breweries. Breweries target market, especially the
cheaper less tasting major breweries, is younger males. This target market has
a huge presence online and should not be left alone. With this lack of using
online marketing techniques, the big three can start to lose some of that
market share that they have built so great.
Micro-brews are taking over America. In
the past decade the beer competition has become crowded. With the three major
beer companies (Budweiser, Miller, and Coors) owning 96% of the market in beer
sales, it’s harder for smaller breweries to compete. Micro-breweries are not afraid
though. They have started to take the market share by delivering a variety of exquisite
brews to people that are sick of the bland corporate beer. Micro-breweries have
chosen a different path to connect with customers then spend millions of dollars (which they don’t have)
on advertising. They heavily rely on making amazing beers and try to connect
and communicate with the customers as much as they can. Online marketing is
probably the only way micro-brews market their product and today we are going
to find out who is dominating the online battle between Dogfish Head and Stone Brewery.