Marketing Mix of Craft Beer and 4Ps (Updated 2023)

The Marketing mix of Craft beer analyses the 4Ps of Craft beer, which include the Product, Price, Place, and Promotion of Craft beer. Craft beer is called beer brewed in a limited capacity using traditional craft brewing methods. The craft brewery is also called microbrewery as it believes in producing beer in small amounts instead of larger quantities. The main characteristics of craft beer are flavor, quality, and brewing technique. Some noteworthy companies in the food and beverage industry that deal in large amounts of craft beer are as follows-

• Widmer Brothers Brewery
• Redhook Ale Brewery
• Kona Brewing Company
• KCCO
• The Great Leap Brewing Company
• Les 3 Brasseurs
• Boston Beer Company
• The Barking Deer
• Gateway Brewing Company

Craft Beer Product Strategy

Craft beer is produced in a small brewery, which local artists primarily own. People here employ traditional methods instead of newer ones to retain quality, taste, and flavor. It was supplied to existing customers only in kegs and bottles, but the companies now prefer cans to bottle craft beer as it can cool quickly and is not adversely affected by beer-degrading light. Cans also have a larger surface area for possible decorations and designs and are compact and port, thus requiring less space for transportation and storage. Craft beer is often described as an intellectual and authentic beverage that is to be savored and enjoyed in moderation because of its exquisite flavor.

The product mix of craft beer is diverse and innovative, reflecting the creativity and passion of small-scale breweries. The new Product mix of Craft beer in 2023 is as follows (Source).

1. India Pale Ale (IPA): IPAs are perhaps the most popular craft beer style, known for their strong hop flavor, higher alcohol content, and varying degrees of bitterness. There are several subcategories, including American IPA, New England IPA, and Double or Imperial IPA.
2. Stout and Porter: These are dark, rich beers with flavors of chocolate, coffee, and caramel. Stouts are typically thicker and creamier, while porters are lighter. Variants include Milk Stout, Oatmeal Stout, and Imperial Stout.
3. Pale Ale: Pale ales are characterized by their balanced flavor and moderate alcohol content. They are less intense than IPAs and often feature a more balanced hop and malt profile.
4. Sour Ales: Known for their tartness, sour ales are gaining popularity in the craft beer scene. Styles include Gose, Berliner Weisse, and Lambic, each offering a unique sourness and fruitiness.
5. Lagers: Craft lagers range from light and crisp to dark and rich. They are fermented at lower temperatures, producing a smooth and clean taste. Varieties include Pilsner, Helles, and Dunkel.
6. Wheat Beers: These are typically light and refreshing, often with fruit and spice notes. Common styles include Hefeweizen, Witbier, and American Wheat Ale.
7. Seasonal and Experimental Beers: Many craft breweries produce seasonal offerings or experiment with unique ingredients and brewing techniques. These can range from pumpkin ales in the fall to summer fruit beers and barrel-aged varieties.
8. Belgian-Style Ales: These include a range of styles like Saisons, Dubbels, and Tripels, known for their complex flavors and often higher alcohol content.
9. Barrel-Aged Beers: This category includes beers aged in barrels previously used for wine, whiskey, or other spirits. This process imparts unique flavors and complexities to the beer.
10. Session Beers: These are lower-alcohol beers designed for extended drinking sessions. They focus on flavor while keeping alcohol content low.

Craft Beer Place Strategy

Microbrewing, or the craft beer movement, started in the 1970s in the United Kingdom. Traditionally, it has existed for centuries in parts of Europe and then spread to several other countries. This movement was an ongoing process, and with time, brewers started with new potential customers and increased their manufacturing and distributing facilities. Amongst the first few breweries is Litch Borough Br, established in 1975 by Bill Urquhart. The most popular countries with significant consumer markets for craft beer are Australia, Spain, Singapore, Norway, Sweden, Italy, Germany, France, Canada, the United States, and Asian countries like China, India, and Japan.

There are more than six hundred microbreweries in both France and Italy. Craft Beer is readily available in Brewpub, restaurants, or bars. East End of London is famous for serving craft beer in several pubs. In America, the distribution policy of craft beer includes a traditional system of the beer from direct sales distributor to retailer and lastly to the consumer through off-premises sales or a restaurant.

The craft beer industry’s place strategy and marketing strategies are diverse and dynamic, reflecting the unique attributes of this sector. Here are five key aspects of craft beer’s place strategy and promotional strategies:

1. Local Breweries and Taprooms: Many craft breweries operate local taprooms where customers can taste and purchase beers directly. These venues often become social hubs in their communities, emphasizing the local, artisanal nature of the products.
2. Distribution to Bars and Restaurants: Craft breweries often distribute their beers to local bars and restaurants. It only expands its market and introduces its products to a broader audience who may not visit the brewery.
3. Retail Distribution: Craft beers are standard in liquor stores, supermarkets, and specialty beer shops. This retail presence is crucial for reaching customers who prefer to enjoy craft beer at home.
4. Online Sales and Shipping: With the rise of e-commerce, many craft breweries have started selling their products online, either directly or through third-party platforms. Some also offer regional or national shipping, broadening their customer base beyond local areas.
5. Craft Beer Festivals and Events: Participation in craft beer festivals and events is a significant place strategy for many breweries. These events are excellent opportunities for breweries to showcase their products, interact with consumers, and build brand recognition.

This multifaceted approach to brand loyalty allows craft breweries to engage with different customer segments and adapt to changing consumer preferences and market trends.

Craft Beer Pricing Strategy

Craft beer is a premium product and special efforts are made to retain its exclusivity. Its taste and flavor are very different from other beers, making it unique in the eyes of avid craft beer drinkers. Brewers who target customers in the market for craft beer maintain a premium pricing policy as their products are unique and first-class. Craft beer companies face competition amongst products from other craft beer dealing companies and not from other beer companies. Hence, they can maintain their competitive and premium pricing policies to garner exclusive sales, loyal customers, and better revenues. Brewers are not interested in selling their products through economic pricing policy as they realize that craft beer has a definite consumer market of its own.

The pricing digital marketing strategy of the craft beer brewing industry, known for its emphasis on quality, uniqueness, and artisanal production methods, can be summarized as follows:

1. Premium Pricing: Craft beers are typically priced higher than mass-produced beers. This premium pricing reflects the ingredients’ quality, the complexity of the brewing methods, and the artisanal nature of these beers. Consumers are often willing to pay more for craft beers due to their perceived higher quality and unique flavors.
2. Value-Based Pricing: Craft breweries often adopt value-based pricing, setting prices based on the perceived value to the customer rather than solely on production costs. This approach considers factors like the uniqueness of the product, brand reputation, and customer loyalty.
3. Tiered Pricing for Different Products: Many craft breweries offer a range of products at different price points. Limited edition breuniquecial ingredients, or barrel-aged beers, are often priced higher than standard offerings due to their exclusivity and unique flavor profiles.
4. Geographic Pricing Variations: Pricing can vary based on geographic location. Craft beers in urban or high-income areas or regions with a strong craft beer culture may command higher prices. Conversely, pricing might be more competitive in markets where craft beer is still gaining a foothold.
5. Dynamic Pricing for Seasonal and Special Releases: Craft breweries often use dynamic pricing for seasonal or special releases. Prices for these limited-availability products can be higher due to demand, seasonal ingredients, or special brewing techniques used.

In summary, the craft beer industry’s pricing strategy is multifaceted, focusing on premium, value-based, and dynamic pricing models, with adjustments made for product type, geographic location, and market demand. This strategy helps craft breweries position themselves as providers of unique, high-quality alcoholic beverages only, catering to a market segment that values diversity and quality in beer consumption.

Craft Beer Promotion Strategy

The marketing strategy of craft beers differs significantly from other beer categories. As these are made in small quantities, handlers emphasize diversity and quality. The huge popularity of craft beer has resulted in promotional activities through mediums like newspapers, magazines, billboards, radio, and television. Companies have a vast preference for advertising their products online on various social platforms through Twitter, Facebook, and craft beer blogs.

Craft beer brands have gone for a brand-building process and have taken steps to increase their visibility in markets. Their websites provide detailed information about craft brews and all their variants. Solid and catchy commercials have made them an in-demand product that is well-liked by its target audience of consumers. Companies are taking an active role by sponsoring events, providing free craft beer kegs at high-profile gatherings and charity functions, and making a strong and good impression on store managers and pub owners.

Some Recent Video ads and Print ads of Craft beer are:

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