Brooklyn Brewery.docx

Brooklyn Brewery

1

Table of Contents 1. Introduction 1.1. Objectives 2. Desk Research on Perception and Attitude 2.1. Purpose 2.2. Perception 2.3. Attitude 3. Research and Methodology 3.1. Research Design 3.1.1. Qualitative Research 3.1.1.1. Focus Group 3.1.1.2. In-Depth Interviews 3.1.2. Population and Sampling 3.2. Quantitative Research 3.2.1. Procedure 3.2.2. Surveys 4. Reporting 5. Timing 6. References

2

3 3 4 4 4 4 5 5 5 5 6 6 7 7 7 8 8 9

1. INTRODUCTION The beer consumption has been decreased from 137.6 to 89.2 liters per capita over the last 39 years. The main reason for this shift is changing the relative prices while at the same time price per liter of on trade beer has been increasing by 60%. The shift in on trade beer prices is due to tax and excise duties of countries while the fall in off trade prices is because of the heavy discounting of the beer products by super markets (P.R. Tomlinson & J. Robert Branston). However the beer industry has been widely known for its oligopolistic position due to factors such as advancements in technology, takeovers and mergers, barriers to entry, economies of scale and high concentrations. In 2017 the value of global beer market was $593024 million and is expected to reach $685354 by 2025. The increase in disposable income and in consumer preferences have fueled the consumption of beer over the other alcoholic beverages. Despite of these factors, the adoption of western culture has also been an important factor in driving the beer consumption in consumer especially in youth. As per the United Nations world population prospect, the global youth population is expected to increase the industry share to $1.3 billion by the 2030 (Biswa, 2018).

(Biswa, 2018) Today the beer industry has become a global business with many multinational companies and thousands of smaller breweries. The global beer market is dominated by the larger brewery companies however by introducing the variety of new beer products, smaller craft beer companies have gained substantial market share in recent years that sell at higher price points (Breweries, 2019). By regions Asia-Pacific is the largest and fast-growing beer market with a size of about 36.8% of total global market share. Europe has been the second largest sector of beer consumption. South 3

America and Africa are the other developing regions with significant growth rates of beer consumption. However there have been decline in overall annually beer consumption rate in North America (Beer Market Share, Trends and Analysis , 2018).

(Beer Market Share, Trends and Analysis , 2018) Ales and lagers are two primary categories of beers that are distinguished from one another by yeast types and brewing temperature. Popular types of ales include pale and dark ales and India pale ales (IPAs). The most popular beer type used in US is a light bodied beer with moderate alcohol levels (Breweries, 2019). This study is focused on the brewery industry using the Brooklyn Brewery Company which is about to launch its new beer product in Indian Pale Ale style. New York based brewery, Brooklyn Brewery Corporation manufactures beers and offers its products to the bars, restaurants and retailers. Brooklyn brewery was established in 1988 by Steve Hindy and Tom Potter. The Hindy learnt to brew beer while during his six year stay in different Middle East countries including Saudi Arabia and Kuwait. After getting back to home in Brooklyn Hindy joined his hands with his neighbor Potter, they both quit their jobs and founded the brewery in 1984. Initially all of their beers were brewed by the company named Matt brewing company with which they had a short term contract. Later on in 1996 they established their own distribution system that transported and marketed all of their beers to the bars and retailers around the New York City. It serves customers through a network of distributors/representatives in the United States and internationally. For marketing and advertising purposes company adopted a less conventional approach that relies more on word of mouth and brand visibility at the bars. In addition to these company also donates and sponsors the different nonprofit organizations. Some of the organizations sponsored by brewery include Eat Drink Local week, Desert fest and New York Harbor Restoration.

4

1.1.

Objectives



The main objective is examine the customer attitude toward the consumption of IPA beer and purchase intentions of beers customers.



To identify attitudes towards the Brooklyn Beers - This objective would seek to discover attitudes towards the new product among potential buyers. It will provide some detailed information on how they perceive the product. It will also compare it with products that are currently available in the market. This should provide producers with some indications of the quantities that buyers are likely to purchase.



To analyze whether the new product is perceived as being complementary with the current product range - Considering drinks that are produced by the company, it needs to be examined and analyzed in terms of perception.



To determine potential buyers of the beers - This objective would seek to analyze market in terms of who would be a potential buyer/customer. This should be helpful to determine the price and choose the message that would be used to promote the new Brooklyn Brewery products.



To identify the price that buyers would be willing to pay – This would seek to determine whether buyer would be prepared to pay higher price for the new products. This objective will examine both prompted and spontaneous awareness.



To ascertain the best way of promoting the Brooklyn Brewery products – This objective will help to discover what, in terms of beer advertisements, appeal to potential buyers.

2. Desk Research on Perception and Attitude 2.1.

Purpose

The search of another factors that influence the new Brooklyn Brewery products will be carried out. The importance of market research will be explained and also linked to the beer industry. This should help the producers to understand the importance of consumers’’ perception and attitude in terms of the beer industry. The search will gather some valuable indication that may be used in the next stages of the search.

5

2.2.

2.3.

Perception – a process of processing sensorial input into an understanding of how the world works. The process consists of the combination of many different sensorial inputs. The final result is complex to analyse (Blythe, 2013). For instance, people often judge lagers by their brand. Attitude – A tendency to respond to a product/service in a favorable or unfavorable way. Whether a product will be purchased or not, mainly depends on the consumer’s attitude towards it. Attitude is not directly observable. It is intangible so it is inferred from statements of behavior. It is vital for the business to ask their customers what they think about their products so they keep measuring consumers’ behavior (Blythe, 2013).

3. Research Methodology 3.1.

Research Design

A research design is a blueprint for the collection, measurement, and analysis of data, based on the research questions of the study” (Sekaran & Bougie, 2013). Mainly there are two type of researches are done throughout the world, following are two type of researches and they are as follows  

Qualitative Research Quantitative Research

3.1.1. Qualitative Research “Qualitative research is a generic term for investigative methodologies described as ethnographic, naturalistic, anthropological, field or participant observer. It emphasizes the importance of looking at variables in the natural setting in which they are found.” (American Public University System, 2018). Qualitative research is most widely used in the world because it yields the most accurate results. Qualitative research provides with findings that are not determined earlier and also with those that are applicable beyond the immediate boundaries of the study. Qualitative research helps to understand the problem from populations’ perspective that it involves. Qualitative research deals with understanding of people’s experience in humanistic and interpretive ways. The qualitative research relies on respondents to provide with in-depth responses to questions about how they have been constructed or understood their experience (Ronald L Jackson, Darlene K, Drummond , & Sakile Camara, 2007). In Europe 9% of all expenditures are devoted to only qualitative research. Approximately an output of $1 billion is yielded from the qualitative research (Alan S.Zimmerman & Michel Szinberg). Qualitative research methods help researchers to understand people, culture and social contexts 6

within which they live. Qualitative research seeks to gain insight into specific meanings and behaviors experienced in a certain social phenomenon with the help of subjective experience s of participants. To study human experiences and realities, qualitative methods use descriptions and categories. Validity of quantitative methods can be improved with the use of combination of data collections methods and by analysis of data ( Catbryne Palmer & Amanda Bolderston, 2006). Usually open-ended questions are used in Qualitative research because these provide with more accurate findings. Open ended questions are not supposed to be answered with yes or no instead they are answered with explanations starting with when, how and what. These explanations make interviewees to speak and elaborate about the nature of their experiences clearly (Faaiz Alhamdani, 2016). Qualitative research will be used in this study to explore and examine the attitudes of potential customers of beers.       

The purpose of the qualitative research will be to find out Do customers consume IPA style beer or normal beers? How much average beer is consumed by the potential buyers and how much IPA is used? What kind of beers are consumed by the buyers? Whether the potential buyers are loyal to one brand or they switch to others? Do they consider price while purchasing the beers or not? Whether the potential buyers consider switching costs or not.

Qualitative research will be done using the following ways.

3.1.1.1. Focus Group Focus group will be structured for open in-depth discussions with a group of selected participants. The purpose for conducting the focus group will be shared with the group participants. The focus group will be recorded and transcribed. The main purpose of the focus group will be to gain the customers insights about the different brewery products including IPA. Focus group will consist of 8-10 participants both male and female of age between 30-50 years. The duration of the interview will be maximum one and a half hour. The focus group will include the most American citizens who are familiar with the Brooklyn Brewery and its products. There will be moderator present to observe the answers of the respondents. The participant will be asked open-ended questions that will provide with detailed response from the participants of focus group.

3.1.1.2. In-Depth Interviews

7

In-depth interviews will be conducted with the most potential buyers of beers and who have excess knowledge about different beers companies and their products and are willing to share their experience and knowledge to gain information about brewery industry. The purpose of indepth interviews will be to get insights about potential buyers’ attitude toward beers and their prices. It will be helpful in getting required information from a specific target group. Semistructured in-depth interviews will be conducted because they are widely used and yield the accurate information about the experiences of respondents. The in-depth interviews will being conducted on designed questions. The interviews will be conducted face to face and questions to be asked will be divided into two parts, the first part will be related to the interviewee’s opinion about the beer industry and the second part will about customer perceptions and attitudes toward beer prices. Before starting the interview the respondents will be informed about the purpose of the interviews. The interviews will be recorded so that interviewers can analyze them accurately after the interview being held and to get the correct and accurate information. The respondent’s answers will also be noted down on papers for data analysis. The duration of the interviews will be 30-40 minutes and interviewers will try to yield as much information as possible.

3.1.2. Population and Sampling “The population refers to the entire group of people, events or things of interest that the researcher wishes to investigate” “A sample is a subset of the population. It comprises some members selected from it. In other words, some, but not all, elements of the population from the sample” (Sekaran & Bougie, 2013). For the qualitative research we will use the sample size of 50 respondents that will include both males and females, light and heavy users of beers and with the age limit of 25 to 40.

3.2.

Quantitative Research

Quantitative methods/research emphasize objective measurements and the statistical, mathematical, or numerical analysis of data collected through polls, questionnaires, and surveys, or by manipulating pre-existing statistical data using computational techniques. 8

Quantitative research focuses on gathering numerical data and generalizing it across groups of people or to explain a particular phenomenon.” (USC University of Southern California, 2018). In Quantitative research deductive approach is used. Quantitative researches use numerical data and highly objective systematic approaches. Quantitative researches deals with validity reliability and objectivity and realities of qualitative work ( Catbryne Palmer & Amanda Bolderston, 2006). In quantitative research, literature review is seen as an important data that provides researchers with a source of material with which to revise problems and hypothesis (H. Johnson Nenty, 2009). Quantitative research test the hypothesis and assumptions instead of exploring to build up knowledge as in qualitative research. In quantitative research, once the data has been collected we start analyzing it. In quantitative research a sample size is determined by statistical rules (Faaiz Alhamdani, 2016). Quantitative research method will also be used because all of the researched done before on beer industry included emphasized on the quantitative research and also because it is the best way to get the respondents opinions about the products and is the better structured way to develop the facts and enumeration to help in research.

3.2.1. Procedure In order to get the respondents response survey strategy will be used. This strategy is used to answer the questions like when, where and how much the product been consumed. In order to find the answer to these questions survey is the best option for the research because it gives a better trustworthy outcomes. It is very important for the investigators of the research to survey respondents in high numbers to make sure that the respondents are the potential representatives or buyers of the products for which they are going to be targeted. Different surveys will be conducted to get the consumer insights about the brewery industry and its products. In addition to these survey respondents will be provide with the questionnaires as well to gather the data.

3.2.2. Surveys In this type of data collection questionnaires will be distributed to determine the customer preferences and interest about beers. There will be only 15 questions in the questionnaire because respondents get bore if questions are more than 15 or 20 and they don’t give accurate response.

9

4. Reporting When all activities are done the final report will be prepared and will be submitted for approval. After getting approved there will be a brief presentation of the research. The presentation will highlight the objectives and the findings of the research.

5. Timing A time frame will be set for the entire study before starting. Pauses between different research phases will be highlighted in this section. The research will be undertaken in approximately 1820 weeks. Timeframe will help to summarize the weekly activities of the research and modifications will be made at certain points if needed.

TIMING Weeks 1-2` 3 4-5 6-7 8 9 10 11

Activity Setting Objectives Desk Research Qualitative Research Quantitative Research Data Analysis Winding Up Findings Presentation Final Report

10

1 References Catbryne Palmer, & Amanda Bolderston. (2006). A brief introduction to Qualitative Research. The Canadian Journal of Medical Radiation Technology. Alan S.Zimmerman, & Michel Szinberg. (n.d.). Implementing Internation Qualitative Research Techniques and Obstacles. Qualitative Market Research: An International Journel Volume 3. American Public University System. (2018, May 21). Retrieved from American Public University System Web site: https://apus.libguides.com/research_methods_guide/research_methods_qualitative Beer Market Share, Trends and Analysis . (2018, April). Retrieved from Mordor Intelligence: https://www.mordorintelligence.com/industry-reports/beer-market Biswa, S. (2018, March). Global Beer market share, size, trend and Industry Analysis. Retrieved from Allied Market Research: https://www.alliedmarketresearch.com/beer-market Breweries. (2019, January). Retrieved from Market Research.com: https://www.marketresearch.com/First-Research-Inc-v3470/Breweries-12116984/ Faaiz Alhamdani. (2016). AN INTRODUCTION TO QUALITATIVE RESEARCH DATA ANALYSIS ARTISTIC APPROACH. International Journal of Development Research. H. Johnson Nenty. (2009). Writing a Quantitative Research Thesis. P.R. Tomlinson, & J. Robert Branston. (n.d.). The demand for beers: estimates of long run on and off trade beer price elasticities. Applied Economic Letter. Ronald L Jackson, Darlene K, Drummond , & Sakile Camara. (2007). What is Qualitative Research. Qualitative Research Reports in Communication. Sekaran, U., & Bougie, R. (2013). In U. Sekaran, & R. Bougie, Research Methods for Business. John Wiley & Sons. USC University of Southern California. (2018, May 21). Retrieved from USC University of Southern California Web site: http://libguides.usc.edu/writingguide/quantitative

11