Morgan  Passek  Part  II  7/23/13    

Part  2:  New  Product  Concept  and  Launch  Plan  Development    

Opportunity  Analysis:  

The  new  product  line  to  be  implemented  from  Archer  Farms  is  Fruit  Infused  Beer  

with  a  variety  of  flavors.  Flavors  include  Chili  Lime  Kick,  Blueberry  Blues,  

Strawberry  Wheat,  Mango  Madness  as  well  as  Country  Apple  Cider.  This  product  

will  be  made  with  top  quality,  natural  ingredients  and  made  with  as  few  calories  as  

possible.  This  product  line  is  viable  because  of  the  booming  microbreweries  and  

beer  industry  in  general;  especially  with  bold  fruity  flavors.  Consumers  seek  variety  

and  are  wiling  to  try  out  new  flavors  of  beer.  To  provide  a  few  statistics  from  the  

Brewers  Association,  there  are  2,416  breweries  in  the  United  States  as  of  March  

2013  and  97%  of  those  breweries  are  small,  independent  ones1.    To  help  put  this  

more  into  perspective  sales  in  2011,  were  $8.7  billion  dollars2  in  the  craft  beer  

industry  and  it  will  only  continue  to  grow  as  consumer’s  tastes  and  curiosity  

heightens.    In  fact,  taken  from  a  poll  by  Gallup,  beer  is  preferred  4%  more  than  

wine3.    

51.5%  of  the  population  ages  18  and  older  in  America  are  frequent  drinkers.4  This  

means  that  6.3  million  people  consume  alcohol  on  a  frequent  basis.  The  market  

segment  for  Archer  Farms  Fruit  Infused  Beer  will  be  slimmed  down  but  we  have  the  

potential  to  reach  these  6.3  million  people.  As  I  had  stated  earlier  in  my  targeting  

segment  in  part  I,  when  calculating  the  population  target  market  size  between  three  

popular  Target  Store  locations  it  accounted  for  7.7%  of  the  total  US  population  and  

with  1,778  stores  nationwide  we  would  have  a  great  success  in  acquiring  new  

customers  and  current,  loyal  customers  to  try  our  new  product  line.        

WHO:  

Our  target  consumer  will  be  men  and  women  ages  23-­‐45  with  expendable  income  to  

purchase  a  middle-­‐of-­‐the-­‐line  to  top-­‐of-­‐the  line  product  on  a  frequent  basis.  The  

Center  for  Disease  Control  and  the  Gallup  Survey  both  state  that  men  drink  beer  

more  frequently  that  women  do  as  well  as  people  with  in  this  age  range  (23-­‐45  

years  old)  prefer  beer  over  liquor  or  wine.5  I  believe  with  Archer  Farms  Fruit  

Infused  Beer  that  women  will  pick  it  up  off  the  shelves  more  frequently  because  of  

the  fresh,  fruity  flavors  and  the  healthier  benefits  of  a  lighter  beer.  Once  the  beer  is  

brought  home,  the  men  will  want  to  try  the  product  out  and  then  make  their  own  

conclusions.  This  by  no  means  is  a  gender  specific  product  line,  but  once  the  product  

line  is  up  and  going  we  may  see  a  higher  female  purchasing  trend.  It’s  all  about  

flavor  preference.  

As  well  as  the  fun,  summertime  flavors,  Archer  Farms  has  also  included  a  Country  

Apple  Cider  for  those  who  suffer  from  a  gluten  allergy.  This  beer  will  be  completely  

gluten  free  and  will  open  up  a  new  segment  of  consumers.  Ciders  are  a  hot  trend  in  

the  beer  industry  these  days,  and  with  18  million6  people  suffering  from  gluten  

intolerance  it’s  only  proper  that  we  provide  this  delicious  product  to  not  only  them  

but  also  those  who  aren’t  gluten  sensitive.    

Design  and  Technology  Elements:  

Archer  Farms  currently  has  a  strong  brand  image  due  to  its  packaging,  logo  design,  

and  overall  presentation  of  the  product.  It  is  easy  to  differentiate  an  Archer  Farms  

product  from  other  products  because  of  their  distinct  green  labels  with  

supplemental  colors  to  complement  the  brand’s  multi-­‐flavored  product  lines.    The  

new  Archer  Farms  Fruit  Infusion  Beer  will  keep  the  integrity  of  the  AF  design  line  

and  further  utilize  the  diamond  pattern,  logo  and  green  accents  on  the  bottle  label  as  

well  as  the  six-­‐pack  holder.  Please  see  Exhibit  1-­‐3  for  packaging  and  on  shelf  details.  

Because  Archer  Farms  currently  makes  soda  and  other  drink  products,  labeling  and  

bottling  will  not  pose  as  a  challenge.    

Technologically  speaking,  it  would  be  wise  to  create  a  new  brewing  facility  in  order  

to  prevent  traces  of  alcohol  mixing  with  the  lines  the  soda  is  bottled  in.  We  will  need  

to  be  equipped  to  brew,  test,  and  package  our  product  in  one  to  three  facilities  

around  the  United  States.  R&D  would  be  proper  to  set  in  place.  It  could  take  a  few  

months  up  to  a  year  to  develop  and  produce  the  right  recipes  with  good  quality  hops  

and  malts  at  approximately  4-­‐5%  ABV  (alcohol  percentages  by  volume).  Building  

and  constructing  these  facilities  shouldn’t  take  long  either  but  once  set  up  and  ready  

to  distribute,  the  ROI  will  be  extremely  profitable  and  will  offer  a  large  return  in  a  

short  amount  of  time.    To  have  test  markets  set  in  place  to  see  how  the  product  does  

on  its  own  would  be  beneficial  to  complete.  Also,  including  more  market  research  

such  as  focus  groups  and  customer  feedback  surveys  would  help  us  understand  if  

this  product  line  is  a  good  fit  for  our  company.    

Value  Proposition:    

In  order  to  differentiate  Archer  Farms  Fruit  Infused  Beer  from  the  competition  we  

first  need  to  assess  whom  our  competitors  are.  Because  Archer  Farms  is  solely  sold  

in  Target  stores  I  will  be  focusing  on  the  competitors  that  are  carried  in  Target  

stores.  Looking  at  product  form  competition,  the  beers  include  Samuel  Adams  

Summer  Variety  Pack,  Leinenkugels  (with  a  variety  of  flavors),  Blue  Moon,  Shocktop,  

and  Pyramid  Apricot  ale.  These  competitors  are  from  mainstream  conglomerates  

that  compete  against  each  other.  Prices  range  from  $6.00-­‐16.00  and  come  in  a  6,12,  

or  24  packs.  Other  competitors  we  have  to  we  weary  of  are  other  beers  sold  in  the  

Target  stores  such  as  Modelo,  Pacifico,  Sam  Adams,  Bud  Lite,  Miller  Lite,  and  etc.  

Also,  Target  sells  ample  amounts  other  beverages,  soft  drinks  and  teas  that  would  

compete  for  future  purchase.  A  way  Archer  Farms  can  position  themselves  is  to  

provide  the  best  quality  beer  made  with  natural  ingredients  and  provide  consumers  

with  superior  flavor  at  an  affordable  price.  Archer  Farms  is  known  for  its  different  

and  bold  flavors  so  having  blueberries,  strawberries,  mangos,  and  chilies  with  lime  

infused  in  the  beer  will  give  it  a  unique  edge  in  the  beer  industry.  Trader  Joes  also  

has  private  label  brands  that  work  well  for  their  company.  They  sell  different  

varieties  of  beer  under  a  private  label  brand  and  also  carry  other  beers  from  other  

breweries.  I  would  like  to  compare  our  product  to  them  and  see  how  this  product  

line  works  out  in  the  long  run.    

Concept  Test:  

 The  survey  conducted  was  administered  through  surveymonkey.com.  There  were  

ten  open-­‐ended  and  closed  answer  questions  in  which  the  subjects  could  voice  their  

opinion.  Subjects  who  were  targeted  were  taken  off  of  the  University  list  serve,  

Facebook,  Twitter  and  email.    Of  the  people  targeted,  49  people  completed  this  

survey.  The  questions  were  as  follows:  How  often  do  you  shop  at  Target?  Do  you  

purchase  Archer  Farms  products?  If  yes,  why  do  you  purchase  Archer  Farms?  If  no,  

what  keeps  you  from  purchasing  Archer  Farms  products?  Introducing:  Archer  

Farms  Fruit  Infused  Beer.  The  survey  goes  on  to  explain  the  product.  Then,  would  

you  be  interested  in  purchasing  these  Archer  Farms  products?  Why  or  why  not?  

Rank  in  order  which  beers  interest  you  (1  being  best  and  4  being  worst):  Chili  Lime  

Kick,  Blueberry  Blues,  Mango  Madness,  and  Strawberry  Wheat.    How  much  would  

you  be  willing  to  pay  for  this  product?  What  is  your  gender?  Are  you  above  21  years  

old?  We  would  like  to  hear  from  you!  Please  place  any  further  comments  below.    

These  questions  were  all  set  up  so  that  they  were  not  to  be  skipped.  Therefore,  

everyone  completed  this  survey  in  entirety.  One  of  the  largest  trends  I  found  was  

that  61.54%  of  subjects  did  not  prefer  the  Chili  Lime  Kick  flavor.7  Strawberry  Wheat  

and  Mango  Madness  had  the  top  preference  with  38.46%  and  25.64%  respectfully.  

Another  big  take  away  was  that  not  many  people  knew  about  the  Archer  Farms  

brand.  So  when  I  administered  the  second  round  of  surveys  I  added  in  a  brief  

summary  of  what  the  brand  sold  and  its  history.  This  proved  to  help  a  lot.  Exhibit  4  

provides  all  the  raw  data  found  from  the  survey.  This  survey  definitely  aided  in  

finding  out  what  interested  the  people  who  might  consume  these  products.  Another  

fact  that  I  found  interesting  was  that  69.23%  of  respondents  were  females  and  most  

all  of  them  preferred  the  Archer  Farms  Fruit  Infused  Beer  line.  Instead  of  changing  

much  of  the  product  line  it’s  self  due  to  the  reactions  of  people.  I  decided  to  leave  the  

Chili  Lime  Kick  for  trial  and  test  areas  to  see  how  it  does.  I  was  wavering  on  

dropping  the  Chili  Lime  beer  due  to  the  negativity  but  there  were  also  people  who  

preferred  that  flavor  in  the  survey  (36%  ranked  it  1st,  2nd  and  3rd  place)  I  also  

decided  to  add  in  the  Country  Apple  Cider  to  appeal  to  the  fruity  drinkers  and  the  

gluten  allergy,  as  I  had  stated  before.    

Barriers:  

Some  barriers  that  Archer  Farms  must  overcome  are  governmental  and  regulatory  

laws  on  alcohol  creation  and  distribution.  These  legal  feats  need  to  be  taken  care  of  

and  researched  before  these  products  come  into  fruition.  We  will  take  all  

precautionary  measures  and  place  the  correct  warning  labels  on  our  Archer  Farms  

products  in  order  to  avoid  any  issues.    

Advertising  is  something  that  Archer  Farms  hasn’t  implemented  much.  Advertising  

for  a  fruit  infused  beer  as  their  first  product-­‐centered  advertising  might  be  a  great  

success  or  a  failure.  I  say  this  only  because  people  in  certain  parts  of  the  country  and  

their  different  beliefs  could  take  a  negative  view  of  Archer  Farms  for  selling  alcohol.    

Marketing  Plan:    

As  stated  earlier  in  the  survey  that  was  administered,  the  subjects  were  asked  how  

much  they  would  be  willing  to  pay.  Most  respondents  answered  $5.00-­‐9.00.  In  

reality,  this  is  not  a  proper  question  to  ask  of  neither  students  nor  anyone  really  

because  they  will  always  opt  for  a  lower  price.  It  would  be  recommended  for  this  

product  to  be  sold  at  $9.00-­‐14.00  per  six-­‐pack.    If  a  decision  had  to  be  made  as  an  

estimate  I  would  peg  it  at  $12.00.  But,  this  will  be  decided  once  we  develop  this  

product  and  understand  what  ingredients  best  fit  for  this  product  line.    

This  product  line  should  be  represented  with  a  holistic  approach.  The  marketing  of  

this  product  will  only  work  if  they  are  sold  as  a  whole.  The  Archer  Farms  Fruit  

Infused  Beers  sold  as  a  collection  of  all  the  flavors  would  be  the  most  beneficial  to  

market.    

For  promotions  Archer  Farms  would  like  to  see  end  of  aisle  display  cases  

advertising  their  new  product  line.  Along  with  this,  employees  will  be  trained  to  sell  

this  product  and  provide  samples  for  those  ages  21  and  over.  It’s  not  common  for  

Target  to  provide  samples  of  products,  but  it  will  be  an  efficient  way  to  promote  and  

sell  AF  Fruit  Infused  beer.  TV  commercials  and  newspaper  inserts  (in  the  Target  

Ads)  will  provide  awareness  and  spark  curiosity  in  consumers.  As  stated  in  part  I,  

social  media  is  an  imperative  option,  extremely  affordable  and  creates  a  strong  buzz  

if  implemented  properly.    

Because  Archer  Farms  is  a  privately  owned  brand  from  Target  it  will  already  have  

access  to  all  Target  stores  if  market  testing  goes  well.  The  product  will  be  easy  to  

distribute  because  there  will  already  be  existing  distribution  set  in  place.  I  do  not  

believe  that  there  will  be  any  negative  responses  from  the  beer  product  companies  

that  Target  stocks  already.  I  think  it  would  be  looked  at  more  as  friendly  

competition  where  Target  will  still  run  store  promoted  specials  on  their  products  at  

certain  times  and  then  provide  promotions  the  Archer  Farms  Fruit  Infused  Beer  

line.    

 

Exhibit  1  and  2:  Archer  Farms  Fruit  Infused  Beer  Six  Pack  mock  up.  Colors  will  vary  between  flavors.  

Exhibit  3:  Archer  Farms  Soda  Bottle  example  of  labeling  and  cap  that  will  be  used  for  the  new  product  line.  Colors  will  vary.  

Color  Swatches:  

Chili  Lime  Kick     Mango  Madness  

Strawberry  Wheat   Blueberry  Blues  

Country  Apple  Cider  

Appendix:    

Survey  Monkey  Results  for  Answers  with  Closed  Ended  Responses:  

 Citations:    

1."Craft  Beer  Backgrounder."  Brewers  Association.  N.p.,  n.d.  Web.  24  July  2013.  <http://www.brewersassociation.org/pages/media/Craft-­‐Beer-­‐Backgrounder>.  

 2.  "Number  of  Breweries."  Brewers  Association.  N.p.,  2013.  Web.  24  July  2013.  <http://www.brewersassociation.org/pages/business-­‐tools/craft-­‐brewing-­‐

statistics/number-­‐of-­‐breweries>.    

3.  "Celebrating  the  Best  of  American  Beer."  Craft  Beer.  N.p.,  2013.  Web.  24  July  2013.  <http://www.craftbeer.com/>.  

 4.    "Summary  Health  Statistics  for  U.S.  Adults."  Center  for  Disease  Control.  US  Department  of  Health  and  Human  Services,  Dec.  2012.  Web.  24  July  2013.  

<http://www.cdc.gov/nchs/data/series/sr_10/sr10_256.pdf>.    

5.    Saad,  Lydia.  "Majority  in  U.S.  Drink  Alcohol,  Averaging  Four  Drinks  a  Week."  Gallup.  N.p.,  17  Aug.  2012.  Web.  24  July  2013.  

<http://www.gallup.com/poll/156770/Majority-­‐Drink-­‐Alcohol-­‐Averaging-­‐Four-­‐Drinks-­‐Week.aspx>.  

 6.  "FAQs."  Center  for  Celiac  Research  &  Treatment.  N.p.,  2013.  Web.  24  July  2013.  

<http://www.celiaccenter.org/gluten_faq.asp>.    

7.    Passek.  "Survey  Monkey."  SurveyMonkey.  N.p.,  18  July  2013.  Web.  24  July  2013.  <http://www.surveymonkey.com/MySurvey_EditorFull.aspx?sm=R95r29elpHSweK

CpjcZrhmRe_2FUBVXklpizFZdLRefrY_3D>.