MI DTERM ENVI RONMENTAL SCAN

MATT LEAP AND RYAN TERRY

Digital Marketing (MKT 350)
Dr. Elaine Young
October 16, 2013









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TABLE OF CONTENTS

CurrenL SlLuaLlon .................................... 2
roblem ueflnlLlon .................................... 4
WebslLe Analysls .................................... 3
Cnllne resence/Soclal Medla AudlL ............................ 6
lacebook ....................................... 6
1wlLLer ........................................ 7
lnsLagram .................................... 8
?ou1ube ..................................... 9
unLappd ..................................... 10
Search Lnglne CpLlmlzaLlon .......................... 11
lndusLry 1rends ...................................... 12
CompeLlLor Analysls .................................. 13
Slerra nevada .................................. 13
Parpoon ..................................... 17
Long 1rall ..................................... 19
SWC1 Analysls ...................................... 21
1argeL MarkeL ...................................... 23
Coals for Maglc PaL ................................... 27
8lbllography ........................................ 29









CURRENT SI TUATI ON

Maglc PaL 8rewlng Company was founded ln 1994 ln SouLh 8urllngLon, v1. lL ls currenLly
owned by norLh Amerlcan 8rewerles, whlch ls owned by llorlda larm & lce Co. As such, Maglc
PaL has access Lo a good deal of resources Lhrough lLs parenL corporaLe conglomeraLe.
CurrenLly, Lhe Maglc PaL markeLlng deparLmenL conslsLs of Lwo brand managers, Lwelve
graphlc arLlsLs, four web Leam members (deslgners/developers), and one soclal neLwork
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manager. 1he brand mangers work aL Lhe norLh Amerlcan 8rewerles offlces ln 8uffalo, n?,
whlle Lhe resL of Lhe deparLmenL works ouL of 8urllngLon, v1. lL ls worLh noLlng LhaL Lhey do
noL currenLly have a poslLlon dedlcaLed Lo SLC or analyLlcs. AnalyLlcs monlLorlng duLles are
spllL beLween Lhe soclal medla manager and Lhe web Leam. As for flnanclal resources, Maglc
haL has a slzable quarLerly markeLlng budgeL, as well as a dedlcaLed quarLerly soclal medla
budgeL. 8udgeL amounLs are ad[usLed based on Lhe currenL campalgn and focus of Lhe season
(le. a new beer, a seasonal beer, a seasonal varleLy back, an upcomlng evenL, eLc.). 1hough Lhe
exacL amounL of Lhe budgeL ls noL publlcally dlsclosed, lL glves Lhe Maglc PaL Leam room Lo
work. lf need be, Lhe markeLlng Leam could campalgn for addlLlonal funds. 1he budgeL number
ls pro[ecLed Lo grow ln Lhe comlng years, followlng efforLs Lo show company hlgher-ups Lhe
value of soclal medla. Cverall, fundlng ls a sLrengLh of Maglc PaL.

Maglc PaL's currenL markeLlng comblnes LradlLlonal and dlglLal markeLlng efforLs. lLs LradlLlonal
efforLs cenLer around Lhe hosLlng of concerLs and oLher evenLs, as well as fesLlval and band
sponsorshlp. Many of Maglc PaL's evenLs are held aL Lhelr brewery and are puL on Lo beneflL
local charlLles, for example, Lhe annual !"#$%&'(&)*# evenL beneflLs Lhe vermonL loodbank. As
for concerLs, Maglc PaL hosLs concerLs wlLh a dlrecL connecLlon Lo lLs beers. 1he Palloween
nlghL of Lhe Llvlng uead aL Lcho Lake Aquarlum show, for example, promoLes Lhelr seasonal
nlghL of Lhe Llvlng uead varleLy pack. ln Lerms of sponsorshlp, Maglc PaL's mosL noLable
fesLlval sponsorshlps are 8onnaroo, CaLherlng Cf 1he vlbes, and PeavyfesL. Cn Lhe dlglLal slde,
Maglc PaL has a webslLe, an emall newsleLLer Lhrough MallChlmp, lacebook, 1wlLLer,
lnsLagram, CnLappd, ?ouLube, and has dabbled ln vlne, Myspace, 1umblr, and loursquare. As
for analyLlcs, Maglc PaL uses only free producLs. 1hey use Coogle AnalyLlcs, lacebook lnslghLs,
1wlLLer AnalyLlcs (for 1wlLLer Ads), and MallChlmp's bullL-ln emall analyLlcs. 1hese lLems wlll be
covered furLher ln Lhe onllne presence/soclal medla audlL.

1he markeLlng goals of Maglc PaL are ldenLlfled as growlng buslness ln dlsLrlbuLlon and volume,
whlle malnLalnlng core bellefs ln quallLy, creaLlvlLy, and fun. CurrenLly, Maglc PaL ls avallable
across Lhe unlLed SLaLes and sells 134,236 barrels per year. lLs goals cenLer around lmprovlng
avallablllLy and barrel sales, whlle malnLalnlng lLs dlsLlncL brand ldenLlLy and personallLy.
uesplLe lLs slze, Maglc PaL ls careful Lo malnLaln lLs small crafL brewery" feel.



1he brewlng company ldenLlfles lLs LargeL cusLomer as younger" - ages 23 Lo 39. Maglc PaL
LargeLs beer drlnkers of elLher gender. 1he company LargeLs lndlvlduals locaLed across lLs
dlsLrlbuLlon area, Lhough lLs popularlLy ls hlghesL ln Lhe norLheasL. lLs LargeL markeL has a
creaLlve slde and a love of arLs and muslc. 1he company also LargeLs Lhose who are proacLlve
Loward soclal change and en[oy Lo beneflL a good cause. Maglc PaL ldenLlfled LhaL lLs LargeL are
lndlvlduals and have a sLrong sense of personal ldenLlLy.


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Source: upLake.com





PROBLEM DEFI NI TI ON

Maglc PaL's maln problem ls belng able Lo produce producL and packaglng LhaL ls dlfferenL
enough Lo sLand ouL among 2,300 oLher crafL brews, boLh on Lhe shelves and aL bars. ln a
markeL where Lhere are so many companles flghLlng for Lhe same Lhlng, one can lmaglne Lhe
pressures relaLed Lo malnLalnlng a proflLable poslLlon ln Lhe lndusLry. WlLh so much
compeLlLlon, Maglc PaL sLruggles Lo produce a producL LhaL ls unlque, boLh ln appearance and
LasLe, from any oLher beer. AL Lhe same Llme, Maglc PaL musL sLay Lrue Lo Lhe creaLlve, fun
brand lmage and personallLy LhaL lL has esLabllshed. lLs communlcaLlons musL be unlformed
and coheslve ln order Lo culLlvaLe Lhe brand's persona and Lhe culLure around Lhe brand.

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Maglc PaL has a developed volce and presence on many soclal medla slLes, lncludlng lacebook,
1wlLLer, and lnsLagram. lL also has lLs hand ln many oLher neLworks, such as ?ou1ube, unLappd,
vlne, Myspace, 1umblr, and loursquare. 1he challenge for Maglc PaL ls Lo creaLe a unlformed
presence across all Lhese neLworks and Lo connecL Lhese neLworks ln a meanlngful way.

As a naLlonal company, Maglc PaL musL also balance Lhese lssues wlLh a deslre Lo expand lLs
presence ln key markeLs. 1he company has ldenLlfled Lhese markeLs as: Lhe aclflc norLhwesL,
speclflcally Callfornla and Colorado, as well as Lhe SouLhwesL, nevada and new Mexlco ln
parLlcular. lurLher expanslon lnLo Lhese areas musL conLend wlLh SLaLe and lederal laws, ln
addlLlon Lo esLabllshed local compeLlLors.


Source: Mlndomo 8log



WEBSI TE ANALYSI S

Cverall Lhe Maglc PaL webpage acLs as a deLalled, lnformaLlve face for Lhe brand. 1he colors are
brlghL and aesLheLlcally pleaslng. 1he brand lmage ls very evldenL LhroughouL every page Lhe
hoL Labs connecL Lhe vlslLor Lo. Lvery blL of lmagery flLs perfecLly wlLh Lhe Lheme of Lhe page. A
vlslLor of Lhe slLe wlll flnd lL very easy Lo navlgaLe, flndlng whaL Lhey are looklng for wlLh llLLle
efforL. 1here are plenLy of promoLlonal pleces for new seasonal brews, evenLs, and offerlngs.
Maglc PaL's page ls beauLlfully lnLerLwlned wlLh Lhelr ?ou1ube, 1wlLLer, lacebook, and lllckr
medla as well. 8elng as LhaL Lhls ls a very arLsy brand, lL ls greaL Lo see speclal pleces feaLured
LhroughouL.

Cne lnLeresLlng feaLure ls Lhe "1unes on 1ap" secLlon. lL offers whaL some would call a "sLralghL
from Lhe rooLs" experlence. 1hls lncludes some of Lhe company's favorlLe Lunes for Lhe vlslLor's
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llsLenlng pleasure. Many of Lhe songs chosen reflecL Lhe Maglc PaL rooLs, wlLh Lracks lncludlng
hlsh, CraLeful uead, and apadoslo. 1hls lncreases Lhe slze of Maglc PaL's reach as fans of Lhe
muslc wlll make a connecLlon Lo Lhe brand.

Maglc PaL offers up some really cool producLs oLher Lhan Lhelr popular beers. navlgaLlng Lhelr
ecommerce slLe ls a breeze and deflnlLely does a greaL [ob of hlghllghLlng Lhelr branded
memorabllla. 1hey do a greaL [ob of brandlng pracLlcal lLems LhaL no oLher brewery has LhoughL
Lo use. An example belng Lhe brandlng of condoms, playlng off Lhe name Maglc PaL". 1hls
creaLlve Lhlnklng ls a greaL (cheap) way Lo reach Lhe Lens of Lhousands of college sLudenLs ln
8urllngLon LhaL are already comlng ln conLacL wlLh Lhe brand ln every bar, resLauranL, and
convenlence sLore Lhey vlslL around Lown.




ONLI NE PRESENCE/SOCI AL MEDI A AUDI T

As menLloned above, Maglc PaL uses lacebook, 1wlLLer, lnsLagram, ?ou1ube, and unLappd.
Maglc PaL currenLly has general soclal medla rules. Across all ouLleLs, Lhey shooL for aL leasL
one posL per brand per day. lacebook ls a speclal excepLlon where Lhe company wlll rarely
posL more Lhan once a day - ln order Lo avold clogglng newsfeeds. Cn 1wlLLer, Maglc PaL
makes lL a rule Lo reply and engage as much as posslble. As a rule, posLs Lo 1wlLLer and
lnsLagram become much more frequenL durlng speclal evenLs, concerLs, and fesLlvals. ln
general, Lhe company abldes very closely Lo Lhese rules.

FACEBOOK:

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Cn lacebook, Maglc PaL has 249,603 llkes, 3,230 Lalklng abouL Lhls", and 18,430 were here".
1he company has a large selecLlon of phoLos, mosLly showlng Lhe beer, brewery, and arL and
muslc assoclaLed wlLh Lhe brand. 1here are albums for every ma[or Maglc PaL fesLlval and
evenL (le. PeavyfesL, 8onaroo, Mardl Cras, Summer Sesslons, eLc.). AddlLlonally, Maglc PaL
creaLes lndlvldual evenL pages for lLs upcomlng evenLs. 1he company page also has a Slpcode
LocaLor" funcLlon where vlslLors can locaLe places Lo buy Maglc PaL locally. 1he Lop bar of Lhe
page has a Shop" opLlon LhaL llnks Lo feaLured lLems ln Lhe shop, whlch are updaLed Lo maLch
Lhe webslLe. Maglc PaL's page also has a llnk Lo enLer a conLesL for a Maglc PaL prlze pack and
Lrlp. Maglc PaL posLs once every day or Lwo and does a good [ob of lncludlng plcLures and
vldeos. lL also does a good [ob of replylng Lo commenLs on lLs posLs. Maglc PaL's user raLlngs
on lacebook are hlghly favorable and almosL enLlrely four or flve sLars. Compared Lo
compeLlLors, Maglc PaL's lacebook page vasLly ouLshlnes compeLlLors llke SwlLchback and
Slerra nevada ln boLh page numbers (llkes, Lalklng abouL Lhls, were here) and quallLy/frequency
of posLs, Lhough lL falls behlnd brands llke Samuel Adams, especlally ln Lhe page numbers.





TWITTER:

As for 1wlLLer, Maglc PaL has a maln accounL, a conLesL accounL, and separaLe accounLs for lLs
ma[or markeLs - 8urllngLon, new ?ork ClLy, hlladelphla, uC, and 8alLlmore. Lach of Lhe pages
generaLes lLs own unlque and locaLlon-relevanL posLs. 1he maln accounL has 7,603 LweeLs and
33, 104 followers. 1wlLLer acLlvlLy ls a comblnaLlon of sharlng plcLures, updaLes, reLweeLs, and
conversaLlons. lL ls worLh noLlng LhaL Lhe ma[orlLy of Maglc PaL posLs are replles or lnLeracLlon
wlLh followers. Maglc PaL's lnformaLlonal posLs do a good [ob of uslng relevanL hashLags, such
as #crafLbeer, #vLbeer, and evenL speclflc hashLags. 1he blo for Lhe maln page does a good [ob
of capLurlng Lhe qulrky creaLlve slde, whlle Lhe oLher accounLs glve a more sLralghL-forward
descrlpLlon of Lhe Lype of conLenL Lhey share. Cverall, Maglc PaL ls ln a sLrong poslLlon on
1wlLLer. Many of lLs local compeLlLors do noL have a 1wlLLer accounL, whlle Maglc PaL
ouLshlnes larger compeLlLors llke Samuel Adams and Parpoon ln number of followers and fan
lnLeracLlon.
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INSTAGRAM:

Maglc PaL's lnsLagram accounL has 313 posLs and 10,224 followers. 1he company has a preLLy
baslc blo wlLh a llnk Lo Lhe Maglc PaL webslLe. 1he plcLures and vldeos on lnsLagram are almosL
enLlrely Lhe same a Lhose on lacebook. As such, Lhey cenLer around Lhe beer, Lhe brewery, and
Maglc PaL arL and muslc. 1he plcLures range from abouL 100 Lo 300 llkes. CommenLs range
from a handful Lo an upwards of LhlrLy or so. As ln Lhe case of 1wlLLer, many of Maglc PaL's
local compeLlLors do noL have lnsLagram. As for Lhe larger compeLlLors, Maglc PaL has nearly
double Lhe followers of Sam Adams and Parpoon, buL abouL Lhe same amounL of llkes and
commenLs.

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YOUTUBE:

Maglc PaL also has a presence on ?ou1ube. 1helr channel has 232 Subscrlbers and 86,434 LoLal
vlews, a relaLlvely small followlng compared Lo some of Lhelr more developed soclal medla
presences. 1he AbouL secLlon has a shorL blo and a llnk Lo Lhe company webslLe, however Lhe
?ou1ube channel ls noL llnked from Lhe webslLe. Maglc PaL has lLs logo as a proflle lmage, buL
no background phoLo. 1hough Maglc PaL has posLed a slgnlflcanL number of vldeos, Lhe
company's mosL recenL vldeo was posLed over seven monLhs ago. 1he dlscusslon posLs abouL
Lhe channel are slmllarly daLed. 1he channel was prlmarlly used Lo revlew and dlscuss new
beer offerlngs, buL Lhe mosL popular vldeo was a former Maglc PaL commerclal wlLh a fun Lake
on Lhelr brewlng process seL Lo clrcus muslc. CompeLlLors Parpoon and Slerra nevada boLh
have a ?ou1ube presence. Parpoon ls found Lhrough a channel called frlendofharpoon",
whlch posLs Parpoon lnLervlews and llnks Lo Lhe Parpoon webslLe. Slerra nevada has Lhe mosL
developed presence on ?ou1ube wlLh abouL Lwlce as many Subscrlbers as Maglc PaL. ?ou1ube
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remalns a huge opporLunlLy as nelLher Maglc PaL nor lLs dlrecL compeLlLlon have Laken a flrm
hold of Lhls ouLleL.





UNTAPPD:

unLappd ls anoLher soclal neLwork on whlch Maglc PaL ls presenL. lLs numbers on Lhe webslLe
are: 288,607 beers consumed, 84,347 unlque consumers, 2,742 consumed Lhls week, and
18,886 consumed Lhls monLh. Maglc PaL has Laken ownershlp of lLs company page and seL Lhe
proflle phoLo Lo Lhe company logo. 1he unLappd page has llnks Lo Lhe Maglc PaL webslLe,
1wlLLer, lacebook, and 8SS feed. ln Lerms of page numbers, Maglc PaL beaLs local compeLlLors,
llke SwlLchback and Long 1rall. lL ls almosL exacLly on par wlLh Parpoon, whlle lL falls shorL of
Lhe numbers of Slerra nevada and 8osLon 8rewlng Company. Maglc PaL's and [usL abouL all of
lLs compeLlLors are ranked aL a 3.3 ouL of 3 sLars. Maglc PaL has made use of whaL ls avallable
on unLappd and lLs page ls on par wlLh Lhe compeLlLlon.

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SEARCH ENGINE OPTIMIZATION:

As for SLC, Maglc PaL does falrly well across Coogle, ?ahoo, and 8lng. Cn Coogle, Lhe webslLe
ls Lhe Lop resulL, followed by a llnk Lo Lhelr vlslL Lhe ArLlfacLory" page, and a llnk Lo Lhelr #9
page. 1he flfLh and slxLh resulLs were Wlklpedla and an unrelaLed page. 1helr 1wlLLer comes ln
as Lhe sevenLh llnk, followed by revlews from 8aLe8eer and ?elp. Cn Lhe slde, Coogle's Maglc
PaL 8rewlng Co. enLry appears wlLh an address, phone number, and map. Cn ?ahoo, Lhe flrsL
resulL ls Lhe company webslLe, followed by Lhe Wlklpedla page and Lhe #9 page. 1he
8eerAdvocaLe revlew and Maglc PaL ArLlfacLory page come ln laLer on Lhe Lop page, whlle Lhe
resL of Lhe resulLs are unrelaLed. 8lng feaLures Lhe company webslLe as Lhe Lop resulL, followed
by Lhe Wlklpedla enLry and 8eerAdvocaLe revlews. 1he only oLher relaLed resulLs ln 8lng's Lop
page was a llnk Lo Maglc PaL's 8lackmaglc page. Cn Lhe slde, 8lng feaLures a map, address,
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hours, ?elp revlews, and phoLos of Lhe brewery. Cverall, Maglc PaL's SLC ls decenL. 1helr
llsLlngs ln Coogle are solld, buL leave room for lmprovemenL. Cn 8lng and ?ahoo, Maglc PaL
could work Lo achleve more relevanL Lop page resulLs. Across all Lhree, Lhelr soclal medla pages
dld noL reach Lop page.












I NDUSTRY TRENDS

As of 2u12, the 0niteu States beei inuustiy is woith ovei $99 billion anu seives
2uu,u28,S2u baiiels annually (Bieweis Association). The inuustiy is uominateu by giants,
Anheusei-Busch InBev anu Nillei Coois, togethei accounting foi 7S% of the 0niteu States
beei inuustiy (Bemetei uioup). As a whole, the beei inuustiy is losing tiaction to wine anu
spiiits. Beei hau a SS% alcohol maiket shaie in 2uuu, compaieu to only 49% in 2u11
(Bemetei uioup). The beei inuustiy hau seen a steauy uecline in piouuction since 2uu8,
until 2u12 biought the inuustiy a slight 1% inciease (Bieweis Association).

The massive beei inuustiy is bioken into seveial segments baseu on the quality, piice, anu
oiigin of the beei. These categoiies aie: Piemium Beeis, like Buuweisei anu Coois Light;
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Sub Piemium Beeis, like Natuial Light anu Busch; Supei Piemium Beeis, like Blue Noon
anu Nichelob 0ltia; Impoits, like Coiona anu Beineken; anu Ciaft Beeis, like Sam Auams
anu Lagunitas (Bemetei uioup). Nagic Bat's beeis fit into the Ciaft Beei segment. Nagic
Bat as a company fits the Biewing Association stanuaiu foi a ciaft biewei baseu on its
piouuction, owneiship, anu beei poitfolio.

Conveisely to the inuustiy as a whole, the ciaft beei inuustiy has enjoyeu vast anu
sustaineu giowth. In 2u12, the inuustiy giew 1S% by volume anu 17% by uollais (Bieweis
Association), while in 2u11, it giew 1S% by volume anu 1S% by uollais (Bieweis
Association). As of 2u12, ciaft beei was a $1u.2 billion inuustiy anu piouuceu 1S,2SS,917
baiiels (Bieweis Association). This boom in ciaft beei has leu to a iapiu inciease in
competition. As of Naich 2u12, 4u9 ciaft bieweiies openeu, contiibuting to a total of 2,S47
ciaft bieweiies opeiating foi some oi all of 2u12 (Bieweis Association).


CredlL: uemeLer Croup

To capitalize on populaiity of ciaft beei, inuustiy playeis aie taking seveial
appioaches. The inuustiy heavyweights aie tuining to ciaft beei incubatois (Bemetei
uioup). These incubatois, Ciaft Biew Alliance in the case of AB Inbev anu Tenth anu Blake
Beei Company foi NilleiCoois, aie companies within a company (Bemetei uioup). They
buy select ciaft beei bianus anu act as the uistiibutoi, but otheiwise leave the beeis moie
oi less unchangeu. Laige, establisheu ciaft bieweis aie appioaching the situation in a
uiffeient way. These companies aie expanuing theii geogiaphic footpiints by opening
auuitional bieweiies in stiategic locations (Bemetei uioup).


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Cieuit: Bemetei uioup


Foi example, Sieiia Nevaua built a bieweiy acioss the countiy in Nills Rivei, Noith
Caiolina. Yuengling uiu the same, expanuing to incluue a seconu bieweiy anu Southein
heauquaiteis in Tampa, Floiiua (Bemetei uioup). In auuition to uomestic expansion, many
companies aie looking inteinationally. Cuiiently, Euiope has seen steauy giowth in beei
uemanu, while South Ameiican, Afiica, anu Asia aie piojecteu to giow 4% to S% each
thiough 2u16 (Business Insights, Bemetei uioup).

Possibly the most ciitical inuustiy tienu in ciaft beei is a shift fiom bianu to style. In othei
woius, consumeis aie looking foi specific styles (ie. Pale Ale, IPA, Lagei, etc.) anu then
choosing the bianu within the style (Bemetei uioup). This tienu has pioven paiticulaily
tiue among ueneiation YNillennials (Bemetei uioup). This tienu makes keeping up with
uesiieu types of beei highly impoitant. Foi example, Light beei fell below Su%
consumption foi the fiist time in yeais, leauing to significant ievenue hits foi bianus like
AB Inbev's Buu Light (ReseaichNoz).

Right now, consumeis aie looking foi vaiieu, flavoiful, anu unique beei offeiings (Business
Insights). This has leu to the appeaiance of many stiongei, high ABv beeis anu change of
pace beeis like souis. AB Inbev capitalizeu on the highei ABv tienu with Buu Light
Platinum, captuiing 1% of all beei sales in its uebut yeai (St. Louis Post- Bispatch). Anothei
tienu in teims of beei offeiings is foou paiiing (Business Insights). Consumeis aie looking
foi beeis uesigneu to complement specific flavois of foou.

The cuiient beei inuustiy situation couples giowing uemanu with incieaseu competition.
Consumeis aie looking foi specific beeis anu companies who uiffeientiate themselves. If
piopeily manageu, these tienus iepiesent significant oppoitunity foi a giowing company,
like Nagic Bat. 0n the othei hanu, theie is also significant iisk of being lost in the shuffle.
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The ciaft beei inuustiy is open foi establisheu bianus like Nagic Bat to achieve a laigei
maiket shaie anu gieatei national iecognition thiough calculateu planning anu piouuction.































COMPETI TOR ANALYSI S

Among Maglc PaL's compeLlLors, Slerra nevada, Parpoon, and Long 1rall pose Lhe greaLesL
LhreaL. Llke Maglc PaL, all four of Lhese companles are popular crafL- beer brands LhaL are
growlng ln popularlLy. Slerra nevada ls Lhe largesL of Lhe compeLlLors, followed by Parpoon,
and Lhen Long 1rall. All of Lhese brands are very popular ln Lhe norLheasL, whlch ls more of Lhe
concenLraLlon when evaluaLlng Maglc PaL's compeLlLors. lor Lhe mosL parL Maglc PaL ls locked
Lo Lhls reglon, buL Lhey are beglnnlng Lo galn a wlder reach. SomeLhlng Lo noLe ls Maglc PaL's
parenL company norLh Amerlcan 8rewerles owns many oLher brands and has Lhe mosL power"
of any compeLlLor's parenL companles llsLed above.
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SIERRA NEVADA:

Slerra nevada's slLe ls aLLracLlve and slmple. A vlslLor ls greeLed wlLh a cllp showlng Lhe
lngredlenLs and brewery, whlle Lhe only hoL keys are four Labs aL Lhe Lop of Lhe page.
navlgaLlng Lhe page ls very easy and offers greaL lnformaLlon on news and evenLs on every
page. 1he page feels very organlc whlle offerlng up anyLhlng you'd ever wanL Lo know abouL Lhe
brand. 1he e-commerce slLe ls also a breeze and does a greaL [ob of feaLurlng Lhe producLs. 1he
besL aspecL of Lhe web page ls Lhe beer locaLor" search bar aL Lhe boLLom of Lhe home page.
1hls ls a greaL ldea ln helplng Lo promoLe Lhe accesslblllLy of Lhe producL. Clean-cuL and
refreshlng, Lhls page does a wonderful [ob of deplcLlng Lhe brand lmage whlle geLLlng sLralghL
Lo Lhe polnL.



1he Slerra nevada lacebook age has 189,089 llkes and galns a good amounL of dally aLLenLlon.
noL only ls Lhe page manager posLlng repeaLedly LhroughouL Lhe day, followers of Lhe page are
very vocal, consLanLly commendlng Lhe brand. LveryLhlng from evenLs, news, plcLures, and
even reclpes are belng posLed dally. A valuable plece ls how Lhere are dally phoLos of Lhe brew
masLers hard aL work. 1hls makes a closer connecLlon beLween brand and cusLomer. Slerra
nevada has Lhelr lnsLagram feed embedded lnLo Lhe lacebook page, whlch ls where all of Lhe
phoLos are comlng from. 1he AboutInfo" page seems Lo be Lhe only parL LhaL ls lacklng ln
maLerlal. CLherwlse, Lhe company ls dolng a greaL [ob aL managlng Lhelr lacebook page.

16



1he only oLher areas of soclal medla LhaL Slerra nevada ls lnvolved wlLh, ls lnsLagram and
1wlLLer. Cn lnsLagram, [usL under 13,000 followers exlsL LhaL are very acLlve ln Slerra nevada's
feed. 1he company ls consLanLly uploadlng phoLos of brews, evenLs, and Lhe sLaff, whlle users
ofLen are hash-Lagglng Slerra nevada ln Lhelr relaLed phoLos. 1he company holds a fesLlval
every year, whlch ls anoLher reason Lhey are so acLlve Lhrough Lhls medla ouLleL. Much llke Lhe
web page, Lhe lnsLagram accounL ls very earLhy and organlc feellng, dolng a greaL [ob of
deplcLlng LhaL brand lmage. 1he 1wlLLer page has [usL over 76,000 followers who are very vocal.
1he besL aspecL of Lhe accounL ls how responslve Lhe 1wlLLer page manager ls wlLh Lhe
followers. 1here are mulLlple conversaLlons dally beLween Lhe Slerra nevada 1wlLLer accounL
and all of Lhe brands followers. Much llke Lhe lnsLagram Lhere ls frequenL posLs regardlng Lhe
fesLlval, lncludlng llnks and updaLed lnformaLlon.



Slerra nevada ls cerLalnly Lhe sLrongesL brand, across Lhe board, of any of Maglc PaL's
compeLlLors. 1hey really have an excellenL handle on Lhelr brand lmage and cerLalnly do a greaL
[ob of showlng Lhls Lhrough Lhelr web page and soclal medla ouLleLs.
HARPOON:

Much llke Slerra nevada, Parpoon has an aLLracLlve web page wlLh a loL of brlghL lmagery and
LexL. 1he home page ls sllghLly overwhelmlng when aLLempLlng Lo navlgaLe however. 8elow Lhe
maln lmages ls a breakdown of Parpoons slogan, Love 8eer, Love Llfe, Parpoon." 8elow Lhe
headlng Love 8eer" ls an lnLeracLlve scrolllng selecLlon of all brews currenLly ln producLlon.
17

upon chooslng one, Lhe vlslLor ls provlded wlLh a deLalled facLs page, much llke a beer baseball
card, of each brew. 1hls ls Lhe fullesL/cleanesL presenLaLlon of a crafL-brewery's selecLlon of any
of Lhe compeLlLor's web page. under Lhe headlng Love Llfe" ls news on speclal evenLs and
acLlvlLles feaLured ln a slmllar sLyle Lo Lhe beer selecLlon. 1he ecommerce page ls lacklng Lhe
appeal/feel of Lhe home page enLlrely. navlgaLlng Lo Lhe page ls a blL dlfflculL and confuslng.
1he producL caLegory Labs are very small and bland. 1he Parpoon web page does have a beer
locaLor, buL doesn'L seem Lo work nearly as well as Lhe Slerra nevada Lool.

All ln all, Lhe home page ls aesLheLlcally pleaslng, feaLurlng some greaL lnformaLlon on Lhe beers
and evenLs, whlle lncludlng badges Lo Lhe company's soclal medla pages. Powever, Lhe home
page ls where Lhe splendor ends as Lhe resL of Lhe slLe seems Lo be lacklng Lhe brand
lmage/energy.



Parpoon 8rewery has over 61,000 llkes on Lhelr lacebook page. 1he page manager posLs abouL
once a day and recelves a few commenLs from fans per posL. Lach posL ls ln regards Lo Lhe
evenLs Parpoon 8rewery ls a parL of. Cnly a handful of llkes are galned on each posL. lnsLagram
ls embedded lnLo Lhe brewery's lacebook, however only a few phoLos seem Lo come from lL.
1he AboutInfo" page ls chockfull of useful lnformaLlon lncludlng hlsLory and Lwo maps
showlng Lhe locaLlons of Lhe brewerles. Llnks are lncluded Lo Parpoon's wrlLe-ups on
1rlpadvlsor, loursquare, and ?elp.


18



Parpoon's lnsLagram accounL ls cerLalnly lacklng. 1he accounL has 3,634 buL Lhe manager ls
only followlng slx users! 1here ls no replles Lo follower's posLs, noL LhaL Lhere are LhaL many
follower posLs ln Lhe flrsL place. All phoLographs are ln regards Lo Parpoon evenLs. 1he 1wlLLer
page looks beLLer wlLh [usL over 41,000 followers. 1he page manager makes a few posLs a day
and encourages follower conversaLlon. Many posLs lnclude llnks Lo feaLure evenLs and lmages
of Parpoon employees en[oylng Lhe brand's brews.



Parpoon 8rewery acLually has a ?ouLube channel, whlch ls a necessary ouLleL for such a
buslness. 1he channel ls raLher new so Lhere are only a few vldeos feaLured. 1he vldeos showoff
a few speclal brew serles, as well as Lhe men who made Lhem. 1hey dlscuss whaL wenL lnLo Lhe
dlsLrlbuLlon of Lhe hlghllghLed producL and Lhe lngredlenLs and sLeps Laken, even Lalklng abouL
Lhe roles of each masLer brewer.









19

LONG TRAIL:

1he Long 1rall web page ls very lnLeresLlng. lL encompasses Lhe brands colors and paLLerns ln a
baslc layouL. All of Lhe brews are feaLured on Lhe slde of Lhe page, buL look Lo be somewhaL
cuL-off. lour dlfferenL lmages are cycled Lhrough aL a very qulck pace ln Lhe cenLer of Lhe page.
1hese lmages don'L do much conslderlng Lhey are lacklng ln sub[ecL maLLer. Cenerlc Labs llne
Lhe Lop of Lhe page readlng AbouL us", lamlly of Ales", and ClfL Shop". 1he Labs brlng Lhe
vlslLor Lo baslc lnformaLlon on very bland pages. Peadlng Lowards Lhe boLLom of Lhe home page
Lhe vlslLor wlll see Lwo bold headlngs. 1he flrsL reads, See whaL's brewlng", and offers up a
vldeo of Lhe brew process, and an lnLroducLlon Lo a new brew soon Lo be released. 1he second
headlng reads, WhaL's new?", and feaLures Lwo new beers currenLly avallable, one only belng
avallable aL Lhe brewery. AL Lhe very boLLom of Lhe home page are badges Lo Long 1rall's
lacebook, 1wlLLer, and ?ouLube proflles. 1here ls also a beer compass" LhaL flLs as a nlce brand
Louch for a producL locaLor Lool.

Long 1rall's ecommerce page ls Lhe mosL baslc ouL of all Lhe compeLlLors. 1here are very few
offerlngs, and Lhe producL lmages are lncredlbly small maklng lL dlfflculL Lo see whaL Lhe vlslLor
ls even purchaslng. 1he descrlpLlons of Lhe producLs lncrease Lhe poslLlonlng however, as Lhey
maLch up perfecLly wlLh LongLrall's brand lmage.



20,619 llkes exlsL on Lhe Long 1rall lacebook page. 1he moderaLor of Lhe page posLs usually
once a day, mulLlple days beLween posLs dld exlsL ln some cases. Lach posL on Lhe page perLalns
Lo Lhe evenLs Long 1rall 8rewery ls Laklng parL ln. Surprlslngly enough close Lo 100 llkes are
galned on each posL, and even a mlnlmum of Len commenLs per posL. users are very lnLeresLed
ln Lhe brand, and whaL Lhey have Lo say/posL. 1hls ls Lhe one lacebook page LhaL lacks an
lnsLagram feed embedded lnLo lL. Powever, Lhe phoLos LhaL are posLed by Lhe moderaLor mosL
deflnlLely galn greaL aLLenLlon anyway. 1hls shows LhaL Lhe brand could deflnlLely have a sLrong
lnsLagram followlng lf Lhey declded Lo use LhaL medlum. 1he AboutInfo" page lacks a loL of
20

lnformaLlon. Cnly a llnk Lo Lhe webslLe exlsLs and Lhe 1wlLLer user name. 1here ls no llnk Lo Lhe
1wlLLer page.



Long 1rall has Lhe besL 1wlLLer accounL of any of Lhe crafL brewerles dlscussed above. 1hey have
6,269 followers LhaL are lncredlbly vocal, Lagglng Long 1rall frequenLly. 1he besL aspecL of Lhe
Long 1rall 1wlLLer accounL ls Lhe facL LhaL Lhe moderaLor has followed back Lo abouL every user
followlng Lhe brewery. 1hls makes for greaL responslve lnLeracLlons beLween brand and
consumer, as Lhe moderaLor ofLen reaches ouL Lo hash-Laggers". osLs range from evenL
promoLlon, Lo [usL general lnLeracLlons wlLh Lhe brand. 1wlLLer ls cerLalnly Long 1rall's sLrongesL
soclal medla ouLleL.



Long 1rall also has a good amounL of maLerlal on Lhelr ?ouLube channel, more Lhan any of Lhe
oLher brewerles llsLed above. Lach vldeo hlghllghLs speclal, seasonal brews wlLh commenLarles
from Lhe brew masLers Lhemselves. 1hey also dld a greaL [ob aL drummlng up publlclLy around
Lhelr lrene rellef brew produced afLer Lhe damage broughL on by Purrlcane lrene. 1hls dld a
greaL [ob of aLLracLlng even more consumers Lo Lhe brand, and even lmprovlng Lhe feel of Lhe
company wlLh lLs esLabllshed fans.


21


The Arrows indicate the COMPETITORS position in comparison to MAGIC HAT

SWOT ANALYSI S


Strengths Weaknesses
1. LsLabllshed 8rand lmage and oslLlon 1. ulglLal resence
2. LvenLs, ConcerLs and Sponsorshlp 2. ConnecLlon of ulglLal ConLenL
3. ulglLal resence 3. Moblle resence
4. unlque Cfferlngs 4. underperformlng 8rews
3. AccesslblllLy 3. 8eglon-locked


Opportuni ti es Threats
1. CrafL 8eer lndusLry 8oomlng 1. lnflux of CrafL 8rewerles
2. CrafL 8eer lood alrlng 2. ShlfL ln urchase ueclslons from 8rand Lo SLyle
3. Crowlng opularlLy of Muslc lesLlvals 3. More CrafL 8rewerles Sponsorlng lesLlvals
4. CrafL 8rewery 8ubble 4. CompeLlLors Lxpandlng Ceographlc looLprlnLs


3. seudo-crafL 8rewerles
+,#
&',
-.

01#
&',
-.

22



STRENGTHS:
1. LsLabllshed 8rand lmage and oslLlon: Maglc PaL ls all abouL fun", whlch ls lncredlbly
evldenL ln everyLhlng LhaL Lhey do. lrom Lhe unlque names/sLyles of brews, Lo Lhelr
brand allgnmenL wlLh Lhe muslc and arL scene, Maglc PaL has esLabllshed an lmage LhaL
Lhelr LargeL markeL can/wanL Lo relaLe Lo.
2. LvenLs, ConcerLs, and Sponsorshlp: 1he muslc scene ls an lmporLanL aspecL of Maglc
PaL's lmage. 1he brand has esLabllshed excellenL relaLlonshlps wlLh popular bands and
muslc fesLlvals across Lhe counLry Lhrough sponsorshlps. noL only does Maglc PaL
sponsor bands and fesLlvals, Lhey also hosL Lhelr own evenLs several Llmes a year.
1hrough Lhese connecLlons Maglc PaL galns a Lon of publlclLy on a yearly basls, and
sLrengLhens Lhe brand even furLher as a resulL.
3. ulglLal resence: Maglc PaL has already esLabllshed a large followlng of consumers.
lacebook, 1wlLLer and lnsLagram are chock full of fans, llkes, and followers Lhanks Lo Lhe
brands conslsLenL lnvolvemenL ln Lhelr soclal medla proflles. Maglc PaL ls very
conversaLlonal wlLh Lhelr fans Lhough Lhese soclal ouLleLs. 1hls ls lmporLanL ln keeplng a
good relaLlonshlp/lmage as well as a good volce/ldenLlLy across plaLforms.
4. unlque Cfferlngs: unllke many crafL brewerles currenLly, Maglc PaL sLays away from
overwhelmlng beer sLyles. none of Lhe brands brews are so hoppy LhaL one cannoL LasLe
lL, or so dark lL's nearly lmposslble Lo drlnk, llke Lhe 1000 l8u lAs, or sour beers
currenLly compeLlng for reLall shelf space. 8aLher, Maglc PaL focuses on puLLlng Lhelr
own spln on LradlLlonal reclpes, llke Lhe Maglc PaL #9 noL CulLe ale Ale." 1he brand
uses Lhls brews name Lo aLLracL Lhe ma[orlLy of beer drlnkers who en[oy pale-ales, and
adds a llghL frulLy LasLe Lo esLabllsh Lhelr unlqueness.
3. AccesslblllLy: Maglc PaL has qulLe a large reach for a crafL brewery, a much larger reach
ln facL Lhan Lhe ma[orlLy of crafL brewerles. noL only ls Lhe brand well esLabllshed and
accesslble ln Lhe norLheasL, Lhey are beglnnlng Lo reach ouL across Lhe naLlon,
esLabllshlng Lhemselves as one of Lhe more accesslble crafL beers around. CfLen Llmes
noL one, buL mulLlple brews can be found ln reLallers up and down Lhe LasL, as well as a
brew on Lap aL many bars and resLauranLs.

WEAKNESSES:
1. ulglLal resence: AlLhough dlglLal presence" ls prevlously llsLed as a sLrengLh, Lhere ls
sLlll plenLy of room for Maglc PaL Lo lmprove ln Lhe dlglLal world. CuLleLs such as
lnLeresL, ?ouLube, and a moblle appllcaLlon should deflnlLely be uLlllzed by a company
LhaL has esLabllshed such a sLrong lacebook, 1wlLLer, and lnsLagram presence already,
noL Lo menLlon Lhe lmporLance of arL and muslc ln Lhe brand. Many lnLeresL users,
parLlcularly women, are already hash-Lagglng Maglc PaL lmages all over Lhe slLe. 1he
brand should caplLallze on Lhls ouLleL, malnly Lo connecL wlLh Lhelr female markeL.
Maglc PaL has a ?ouLube channel, buL only Lhree ouL-of-daLe vldeos exlsL. Maglc PaL has
23

so much muslc, arL, and general lnformaLlon Lo share, noL Lo menLlon a beer locaLor on
Lhelr webslLe, why noL creaLe a moblle appllcaLlon for easy access Lo Lhese wonderful
offerlngs. CompeLlLors have already done so wlLh less maLerlal Lhan Maglc PaL.
2. ConnecLlon of ulglLal ConLenL: Maglc PaL already has some greaL dlglLal presence
onllne buL lacks solld connecLlons beLween ouLleLs. 1he brand's lacebook page has no
llnk Lo Lhe 1wlLLer page and vlce-versa. 1he ?ouLube channel ls nonexlsLenL from any
soclal medla, as well as Lhelr Myspace page, whlch ls acLually very lmpresslve. lL Lakes
some dlgglng Lo even flnd Lhe Myspace page ln facL. nowhere on Lhe Maglc PaL webslLe
ls Lhere any lnformaLlon on Lhe accounL.
3. Moblle resence" CompeLlng crafL brewerles have already esLabllshed moblle
appllcaLlons for easy lnLeracLlon beLween company and consumer. 1hls easy access ls
someLhlng Maglc PaL needs Lo use Lo Lhelr advanLage Lo keep up wlLh
compeLlng./expandlng brewerles. 1he brand has so much Lo showcase, why noL have all
conLenL accesslble from a smarL-phone?
4. unlque Cfferlngs: AlLhough unlque offerlngs ofLen Llmes work Lo Maglc PaL's beneflL,
occaslonally Lhls approach can backflre. AbouL once a season, Lhe brand produces a
brew LhaL really falls shorL of Lhelr repuLaLlon. noL only can Lhls hurL Maglc PaL's lmage,
buL Lhe unfavorable brew ls now Laklng up space ln seasonal packages and on reLall
shelves, hurLlng Lhe brands dlsLrlbuLlon.
3. 8eglon-Locked: Conslderlng Lhe facL LhaL Maglc PaL has only one brewery ln SouLh
8urllngLon, vermonL, producLlon and dlsLrlbuLlon are ma[orlly llmlLed Lo Lhe norLheasL.
noL Lo say LhaL Lhe brand doesn'L dlsLrlbuLe naLlonally, [usL LhaL Lhey focus Lhelr efforLs
ln Lhls reglon of Lhe counLry. Lven Maglc PaL's meLropollLan clLy speclflc 1wlLLer
accounLs only hlghllghL clLles ln Lhe norLheasL. 1he farLhesL WesLern 1wlLLer accounL ls
hlladelphla whlle Lhe mosL SouLhern ls 8alLlmore.

OPPORTUNITIES:
1. CrafL 8eer lndusLry 8oomlng: 1he 8rewers AssoclaLlon reporLed LhaL approxlmaLely 7.3
mllllon barrels of crafL beer were sold ln Lhe flrsL half of 2013. 1haL represenLs a 13
lncrease ln volume sales from Lhe flrsL half of 2012 (8rewers AssoclaLlon). uaLlng back
Lo 2010, growLh raLes of 10 Lo 13 were conLlnual posLed (8rewers AssoclaLlon). 8y
merely malnLalnlng lLs exlsLlng markeL share ln Lhe crafL brew lndusLry, Maglc PaL
sLands Lo make comparable proflL lncreases Lhrough lncreased volume of sales. Any
expanslon wlLhln Lhe lndusLry ls lclng on Lhe cake.
2. CrafL 8eer lood alrlng: An evolvlng Lrend ln Lhe beer lndusLry ls beer lncorporaLed ln
cooklng and palred wlLh food. Maglc PaL's wllllngness Lo creaLe unlque beers and Lweak
LradlLlonal reclpes lends lLself well Lo food palrlng. Some of Lhe non-LradlLlonal brewlng
lngredlenLs - llke aprlcoL, papaya, and chocolaLe - help Maglc PaL Lo palr well wlLh
speclflc dlshes and work well as an lngredlenL. Maglc PaL's passlon for Lweaklng Lhe
classlcs reclpes glves Lhem an opporLunlLy Lo make beer speclflcally deslgned Lo be
comblned wlLh food.
24

3. Crowlng opularlLy of Muslc lesLlvals: 1here was a 27.3 lncrease ln average muslc
fesLlval aLLendance from 2010 Lo 2012 (Walker). lesLlvals recenLly overLook recorded
muslc as Lhe Lop revenue generaLor (Shoup). 1here are ma[or and mlnor fesLlvals across
Lhe unlLed SLaLes. Maglc PaL already has a sLrong presence aL fesLlvals and ln fesLlval
sponsorshlp. 1he company can leverage Lhe lncreased popularlLy and avallablllLy of
muslc fesLlvals Lo malnLaln currenL cusLomers and expand ln key areas.
4. CrafL 8rewlng 8ubble: 1hough Lhe crafL brewlng lndusLry ls growlng rapldly, lL cannoL
supporL Lhe lnflux of recenLly opened brewerles [umplng lnLo Lhe lndusLry Lo cash-ln
(eLerman). Lven wlLh hlghly opLlmlsLlc demand pro[ecLlons, Lhe lndusLry wlll produce
far more beer Lhan Lhe markeL can absorb (eLerman). 1here wlll be plenLy of quallfled
and hardworklng crafL brewerles who wlll be unable Lo meeL Lhelr flnanclal obllgaLlons.
Maglc PaL has boLh an esLabllshed markeL share and Lhe flnanclal resources Lo absorb
shorL-Lerm hlLs. 1hls means LhaL Maglc PaL could flnd a number of LalenLed, emerglng
brewerles who face Lhe prospecL of closlng or belng boughL ouL. uependlng on
geographlc locaLlon of Lhe brewery, Lhese small companles could prove Lo be
sprlngboards for expanslon or reglonal headquarLers.

THREATS:
1. lnflux of CrafL 8rewerles: ln 2012, Lhere were 2,347 crafL brewerles operaLlng - wlLh 409
openlng by March of LhaL year (8rewers AssoclaLlon). lL becomes dlfflculL Lo produce a
beer LhaL looks and LasLes dlfferenL from Lhousands of compeLlLors. lL also becomes
dlfflculL Lo be noLlced on sLore shelves and aL bars. 1he hlgh degree of compeLlLlon
means Maglc PaL musL Lake furLher sLeps Lo dlfferenLlaLe and galn aLLenLlon.
2. ShlfL ln urchase ueclslons from 8rand Lo SLyle: Consumers are comlng Lo sLores and
bars looklng for a parLlcular Lype of beer and Lhen selecLlng a brand from wlLhln Lhelr
deslred Lype (uemeLer Croup). lor example, a cusLomer mlghL go Lo Lhe sLore looklng
for an lA and selecL Maglc PaL's hlA, afLer conslderlng Parpoon lA and Slerra
nevada's 1orpedo LxLra lA. revlously brand played a prlmary role ln conslderaLlon
wlLh Lype as Lhe secondary elemenL. 8ecause many of Maglc PaL's beers do noL flL
Lyplcal sLyles, Lhey rlsk belng passed over ln Lhe search process. Moreover, Maglc PaL
chooses Lo sLay away from overwhelmlng beers llke very lnLense lAs and sour beers,
whlch are Lwo Lhe sLyles LhaL currenLly ln vogue.
3. More CrafL 8rewerles Sponsorlng lesLlvals: WlLh Lhe growlng popularlLy of muslc
fesLlvals, many crafL brewerles are followlng Maglc PaL ln fesLlval sponsorshlp. lor
example, uogflsh Pead recenLly sponsored Lhe llrefly Muslc lesLlval, whlle SwlLchback
recenLly sponsored 1he reclplce: A vermonL Muslc lesLlval. AL some of Lhe ma[or
fesLlvals, compeLlLors are even sponsorlng alongslde Maglc PaL. lor example, Slerra
navada ls also a sponsor for 8onnaroo. Some companles are brokerlng excluslve beer
sponsorshlp deals, llke A8 lnbev's Coose lsland dld wlLh lLchform Muslc lesLlval
(C'Loughlln). WlLh currenL Lrends, Maglc PaL now has Lo conLend wlLh more
compeLlLlon for fesLlval sponsorshlps, fesLlvals crowded wlLh compeLlLors/co-sponsors,
and less fesLlval sponsorshlp opporLunlLles from whlch Lo choose.
23

4. CompeLlLors Lxpandlng Ceographlc looLprlnLs: Many of Maglc PaL's key compeLlLors as
large crafL brewers are expandlng faclllLles ln sLraLeglc geographlc poslLlons (uemeLer
Croup). 1hese brewerles are expandlng Lhelr reach buy buylng and developlng
brewerles on Lhe opposlLe slde of Lhe counLry. lor example, Callfornla-based Slerra
nevada and LagunlLas esLabllshed brewerles ln norLh Carollna and llllnols, respecLlvely.
1hese secondary locaLlons glve Lhe companles an edge ln dlsLrlbuLlon and cusLomer
accesslblllLy. 1hey also provlde Maglc PaL wlLh new, sLlffer dlrecL compeLlLlon.
3. seudo CrafL 8rewerles: As menLloned prevlously, lndusLry glanLs A8 lnbev and
MlllerCoors are Laklng advanLage of Lhe crafL beer boom wlLh Lhelr lncubaLor
organlzaLlons. 1hese organlzaLlons make every aLLempL Lo appear as crafL beer, buL
Lhey have Lhe fundlng, producLlon process, and dlsLrlbuLlon of Lhelr parenL company
(uemeLer Croup). lor Lhese reasons, Lhelr beer can be offered aL a lower prlce polnL
and wlLh a hlgher proflLablllLy. uue Lo Lhelr ownershlp and producLlon, Lhese beers are
noL Lechnlcally crafL beer, buL many consumers are unaware and unable Lo Lell Lhe
dlfference. 1hls creaLes a poLenLlal for Maglc PaL Lo be undercuL.

TARGET MARKET

DEMOGRAPHICS:

Maglc PaL's LargeL markeL conslsLs mosLly of males, ranglng ln age from 23 Lo 39. 1hey are a
parL of Lhe mlddle Lo mlddle-upper class wlLh a sLeady mldscale Lo upper mld lncome. lor Lhe
mosL parL Lhey are slngle, lf marrled Lhey are wlLhouL chlldren. 1he LargeL has a college degree
and holds a whlLe-collar occupaLlon. 1he ma[orlLy ls whlLe, owns a car, and prlmarlly llves ln a
renLal seLLlng.



PSYCHOGRAPHICS:

lndlvlduals LargeLed by Lhe Maglc PaL brand have a creaLlve slde and love Lhe arLs, especlally
muslc. 1hey are very proacLlve Loward soclal change much llke Lhe brand. 1hls sLems mosLly
from Lhe sLrong sense of personal ldenLlLy Lhe LargeL holds, as well as undersLandlng LhaL Lhey
26

are Lhe ones LhaL musL Lake Lhe flrsL sLep Lowards achlevlng Lhe change Lhey wanL Lo see.
Conslderlng Lhe age range, Lhe LargeL ls focused on havlng a good Llme, ofLen en[oylng Lhe
camaraderle LhaL goes along wlLh beer drlnklng. 1hey look forward Lo publlc evenLs llke arL
hops, concerLs, and fesLlvals. Also prlce ls noL a ma[or concern when shopplng for beer, as
quallLy ls more lmporLanL Lo Lhe LargeL markeL.



PRIZM:

8ased off of Lhe demographlcs and behavlor of Lhe LargeL markeL, Lhe segmenL groups LhaL
make up Maglc PaL cusLomers are a comblnaLlon of Lhe 234-,546$7&'* and Lhe 8$9&7:-, ;:1<
1hls comblnaLlon of segmenLs ls made up of a collecLlon of moblle urbanlLes. 1hey are a
progresslve mlx of young slngles, couples, and famllles ranglng from sLudenLs Lo professlonals.
Llvlng ln aparLmenLs and renLal homes, Lhe consumers are Lhe early adopLers who are qulck Lo
check ouL Lhe laLesL movle, nlghLclub, lapLop, and mlcrobrew. lound ln second-Ller clLles, Lhese
moblle adulLs, mosLly age 23 Lo 44, lnclude a dlsproporLlonaLe number of recenL college
graduaLes who are lnLo aLhleLlc acLlvlLles, Lhe laLesL Lechnology, and nlghLllfe enLerLalnmenL.
1he segmenL has a mlddle Lo upper-mlddle lncome, holdlng a whlLe-collar occupaLlon.

TECHNOGRAPHICS:

ln Lerms of Lechnographlcs, Maglc PaL's LargeL cusLomers are CreaLors. 1hey are some of Lhe
mosL acLlve users on Lhe lnLerneL. 1hey en[oy boLh consumlng and creaLlng onllne conLenL.
Many are arLlsLs and muslclans, who use Lhe lnLerneL as a showcase for Lhelr creaLlve work.
1hey en[oy sharlng Lhelr conLenL Lhrough plcLures, LexL, vldeo, and audlo flles. Many are acLlve
webslLe owners and bloggers. 1hese CreaLors are also acLlve users of soclal medla, Lhey en[oy
sharlng Lhelr own conLenL on soclal medla, whlle also posLlng Lhelr oplnlons and consumlng
conLenL. 1hls group aLLends evenLs, llke Lhose aL Lhe ArLlfacLory, and laLer posLs Lhelr plcLures,
vldeo, and perspecLlve. 1hey en[oy lnLeracLlng wlLh Maglc PaL Lhrough label deslgn conLesLs,
arLlsL showcases, and creaLlve sponsorshlp opporLunlLles.

27







GOALS FOR MAGI C HAT

MAINTAIN A LOYAL CUSTOMER BASE:

Maglc PaL currenLly has a sLrong markeL share as a large crafL brewery, parLlcularly ln Lhe norLh LasL. lL
ls key for Maglc PaL Lo remaln Lrue Lo lLs rooLs and malnLaln lLs sLrong base audlence before movlng
Loward expanslon. WlLh Lhe recenL lnflux of crafL beer drlnkers, Maglc PaL sLands Lo lncrease sales by
malnLalnlng lLs currenL markeL share.

ENGAGE CUSTOMERS IN MAGIC HAT CULTURE:

A huge parL of whaL seLs Maglc PaL aparL ls Lhe creaLlvlLy and soclal responslblllLy aspecLs of Lhe
company. Maglc PaL sLays Lrue Lo Lhese ldeas wlLh arLlsL showcases, conLesLs, and beneflL evenLs, Lo
name a few. lL ls lmporLanL for Maglc PaL cusLomers Lo vlew Lhe brand beyond Lhe beer. CusLomers
who undersLand Maglc PaL, consumer lLs conLenL, and respecL lLs values wlll have a deeper and longer-
lasLlng connecLlon wlLh Lhe brand.

EXPAND PRESENCE IN KEY MARKETS:

1hough Maglc PaL ls a naLlonal company, lLs performance ls sLrongesL ln lLs home reglon, Lhe norLheasL.
lrom lLs sLarL ln 8urllngLon, Maglc PaL has made sLraLeglc efforLs Lo esLabllsh lLself ln clLles llke 8osLon,
new ?ork ClLy, hlladelphla, and 8alLlmore. now Maglc PaL has ldenLlfled Lhe aclflc norLhwesL and
SouLhwesL as poLenLlally recepLlve areas. 1hey musL LargeL clLles beyond Lhelr esLabllshed neLwork and
bulld awareness and lnLeresL ln Lhese areas.


28













BI BLI OGRAPHY

8rewers AssoclaLlon. "CrafL 8rewlng SLaLlsLlcs." 8rewers AssoclaLlon. 8rewers AssoclaLlon, 2013.
Web. 30 SepL. 2013. <hLLp://www.brewersassoclaLlon.org/pages/buslness-
Lools/crafLbrewlng-sLaLlsLlcs/facLs>.
8uslness lnslghLs. "luLure 1rends ln 8eer and Wlne." 8uslness lnslghLs. 8uslness lnslghLs LLd.,
2011. Web. 30 SepL. 2013.
<hLLp://www.globalbuslnesslnslghLs.com/conLenL/rbcg0190m.pdf>.
uemeLer Croup. "SLaLe of Lhe CrafL 8eer lndusLry 2013." uemeLer Croup lnvesLmenL 8ank.
uemeLer Croup, 2013. Web. 30 SepL. 2013.
<hLLp://www.demeLergroup.neL/docs/perspecLlve/CrafL_8eer.pdf>.
Logan, 1lm. "8eer Sales up, buL 8lg 8eer down." SL. Louls osL-ulspaLch. SLlLoday.com, 09 Apr.
2012. Web. 30 SepL. 2013. <hLLp://www.sLlLoday.com/buslness/columns/lager-
heads/beer-sales-up-buL-blg-beer-down/arLlcle_3de83e16-8233-11e1-90ff- 001a4bcf
6878.hLml>.
C'Loughlln, Sandra. "Coose lsland CrafLs a 1hree-?ear Muslc lesLlval Sponsorshlp." LvenL
MarkeLer. 8ed 7 Medla, 30 !uly 2013. Web. 07 CcL. 2013.
eLerman, uerrlck. "Are We Peaded Lowards a CrafL 8eer 8ubble? 8ack of Lhe Lnvelope
CalculaLlons Are 1roubllng." 8ambllngs of a 8eer 8unner. 8logger, 20 Aug. 2013. Web.
07 CcL. 2013.
8esearchMoz. "uSA 8eer MarkeL lnslghLs 2013." MarkeL, 1rends, Share, Slze 8esearch 8eporL.
8esearchMoz, 19 !uly 2013. Web. 30 SepL. 2013. <hLLp://www.researchmoz.us/usa-
beer-markeL-lnslghLs-2013-reporL.hLml>.
Shoup, 8rad. "ueconsLrucLlng: Coachella And 1he Muslc lesLlval lndusLry - SLereogum."
SLereogum 8SS. SplnMedla, 28 !an. 2013. Web. 07 CcL. 2013.
Walker, Llndsey. "Muslc lesLlvals lncrease ln opularlLy." PlLlLe Cnllne. Www.PlLlLe.Crg, 19
Aug. 2013. Web. 07 CcL. 2013.
29