Why is Budweiser still mocking craft beer?

The answer to this question is: because there are millions of beer drinkers who mock craft beer! It’s still a sliver of the overall market. For example Bud and Bud Light are huge in the Hispanic market which pretty much ignores craft beer.

Fortune

It started in February. During the third quarter of the Super Bowl, Budweiser rolled out a new spot dubbed “Brewed the Hard Way.” Only instead of featuring Clydesdales, puppies or any of the brewer’s marketing typical touch points, this one aimed a cannon at craft brewers.

The ad was roundly criticized online. Craft drinkers took particular glee at the tagline — “Let them sip their pumpkin peach ale. We’ll be brewing us some golden suds” — since Budweiser’s parent company had recently acquired a brewer that made just that sort of beer.)

But everyone expected it was little more than a tempest in a teapot. In the months since, however, Budweiser has seemingly doubled down on its marketing campaign against craft beers.

In April, the company began running its Bud & Burgers campaign – with a TV commercial that pairs the two in fairly typical fashion – until the last…

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SURPRISE! Raising Wages = Higher Prices.

Chipotle just raised its prices in San Francisco 14%, exactly the same % as the raise in wages with the new minimum wage in the city. A popular chain like Chipotle has the option to do this, while most Mom and Pop restaurants and less trendy chains typically cannot raise prices.   They (we) just have to take a 14% hit.

There is no willingness of consumers to pay a little more so their fellow citizens who work in food service can make a living wage. Instead, “the dollar store mentality” rules with most customers. The lowest prices for the fattest burritos and self-throat-cutting “deals” drive sales. Thus, small businesses seem likely to lose out and possibly go out of business under the new inflationary scenario where operating costs rise but prices mostly cannot.

One lesson to be learned from Chipotle is great branding and marketing can help a business weather the storm.  Every business needs to give customers a compelling reason to look beyond the lowest prices.   Great marketing and branding can attract a high number of less price sensitive customers.  Volume plus profit margins equals survival in a time of rising costs!  This is something we are happy to say we’ve been able to help with for more than 40 hospitality locations.  Shoot us a note at A-List Marketing for a free consultation on how to beat rising costs and cheap customers.  It’s the only way to cover the ever rising costs in our businesses!

I liked this “Take Part” article about the Chipotle price hikes, as the writer seems shocked at basic economics.

Have a great day and enjoy every burrito! — TTBG

PS – I just want to add since I saw this – if you don’t tip because the minimum wage went up, you are a cheap ass.  You are not doing it on principle, you are a cheap ass.

http://wp.me/p2g9q8-CS

 

#Business and Life Advice from the Grateful Dead #Dead50

Grateful Dead closed out their 50 Year Career in Chicago last night at Soldier Field (a mere 2 blocks from my home). It was the same location as their last show with Jerry Garcia in 1995. I’ve never been a big DeadHead but have appreciated their music, longevity, experimentation and also their business sense. They were one of the first bands to have their own record label and sell their own tickets, and everyone knows they are kings of merchandising and brand building. They changed the concert touring business as well with their traveling band of fans, long improvisational shows, and allowing fans to tape their shows starting decades ago.
Along with Led Zeppelin they were one of the rock bands that did the most to shape the music and concert business.
Over the weekend I tweeted some of my favorite Grateful Dead lyrics that also can be taken as good self improvement advice in business and life.
Fare Thee Well!

once in a while gdead

maybe you find direction gdead

gdead one man gathers

gdead silver mine

long distance runner c

are you kind gdead

To learn more about the Grateful Dead’s business innovations and lessons, read this short article from guy who wrote a whole book on it.  Or here’s another one.

What a long, strange trip it’s been.

–TTBG