Discourse: BULLDOG Marketing Tactics — Global Brand Dominance and the Fundamental HandShake
The birth of the beer can started at the end of Prohibition. However one of the oldest breweries, Pabst Blue Ribbon, is celebrating 175 years, with its home in Milwaukee.
Pabst Brewing Company was first founded by Jacob Best as The Empire Brewery in 1844 and later became Best and Company. It was run by Jacob Sr. together with his sons Phillip, Charles, Jacob Jr., and Lorenz. In 1860, Phillip was the one who took control of the company.
The brewery started on Chestnut Street Hill in Milwaukee having 18 barrels. In 1863, a steamship captain and son in law of Phillip Best named Frederick Pabst, purchased 50 percent of Phillip Best Brewing and assumed the role of vice president.
In 1866, Best sold the remaining half of the business to the husband of his other daughter Lisette, named Emil Schandein. This move made Frederick Pabst the president of the company and Emil, the vice-president. However, Emil Schandein died in 1894, that’s why Lisette took over as vice-president of the company.
Phillip Best Brewing Co. was the nation’s largest brewer by 1874. Its best seller was a lager, Best Select, which was sold by the public in 1875.
In the 20th century, Harris Perlstein was the one who run Pabst. He was named president in 1932 by Frederick Pabst after a merger of Pabst Brewing and Premier Malt Products Co., the latter of which he had been president. Under Perlstein’s direction, research and innovation were emphasized. To produce the first beer cans, he worked with American Can Company. He also invested heavily in advertising and promotion. He became Chairman in 1954 up to 1972, and from that year up to his retirement in 1979, he served as the Chairman of the Executive Committee. In 1978 the sales of Pabst reached a peak of 15.6 million barrels or 2.48 billion liters before they entered into a sudden decline.
Pabst stopped making beer during Prohibition. It switched to cheese production during this time, and was able to sell more than 8 million pounds of Pabst-ett Cheese. The company then went back to beer production and selling when the Prohibition ended, and their cheese line was sold to Kraft.
Because of Pabst brewery tours, it was renowned in Milwaukee. Most of the time, visitors who go on tour were rewarded with bottomless glasses of beer. Some of the beers they serve in the pub were Pabst Blue Ribbon, Pabst Bock, and Andeker. The place was popular to locals most especially to students from University of Wisconsin-Milwaukee and Marquette University.
Kalmanovitz Era
In 1985, a self-made beer and real-estate tycoon named Paul Kalmanovitz bought the Pabst Brewing company for $63 million in an aggressive takeover through the support of his holding company S&P Co. which first brewery was Maier Brewing Company that was purchased in 1958. In 1987, Kalmanovitz died and that was when S&P became legally inseparable from the Kalmanovitz Charitable Trust. The entire beer production of Pabst’s was contracted out to the Stroh Brewery Company in 1996. It utilized excess capacity it has absorbed earlier that year at the former flagship brewery of the G. Heileman Brewing Company of La Crosse, Wisconsin. With that, the Pabst brewery in Milwaukee was closed. It ended a 152-year association with the city and turning the company into a virtual brewer.
The Stroh label was purchased by Pabst in 1999 and the brewery in La Crosse was sold to City Brewing Company. The beer production of Pabst was then contracted to Miller Brewing Company in 2001. And what remained of the Pabst company was then operated out of San Antonio. By 2005, the IRS ordered S&P to either sell the Pabst Brewing Company or lose its not-for-profit, tax-free status. However, Pabst Brewing was unable to find a buyer at market value that’s why they requested for an extension until 2010 which the IRS granted.
CEO Brian Kovalchuk resigned in 2006 and was replaced by the board with Kevin Kotecki. He moved the Pabst Brewing Company as well as its almost 100 headquarters personnel to Woodridge, Illinois which is a suburb of Chicago. The offices were located on the historic US Route 66. From 2005 to 2010, its brand volume increased by 69 percent and Pabst’s gross margins increased 48 percent. Its operating profit rose 81 percent and its net revenue per barrel increased 28 percent.
Metrapoulos Era
Investor C. Dean Metropoulos purchased Pabst for about $250 million on May 26, 2010. On May 14 the following year, Pabst relocated to Los Angeles, California, but it retained its data center in San Antonio, Texas. The shuttered brewery complex of Pabst in Milwaukee was targeted to be redeveloped into restaurants, stores, housing, offices, and entertainment venues. The project was estimated to cost around $317 million which became the subject of public debate in Milwaukee.
Kashper Era
Pabst Brewing Company declared on November 13, 2014, that its sale to Blue Ribbon Intermediate Holdings, LLC was completed. It is a partnership between American beer entrepreneur Eugene Kashper and TSG Consumer Partners, which is an equity firm based in San Francisco. The price agreed upon this purchase was $700 million. The redevelopment of Pabst campus continued and the original brew house was converted into a hotel while other buildings into condominiums and offices. In July 2015, Pabst announced its plans to refurbish a former church and training center in Milwaukee which was on the site of the original Pabst Brewing complex, into a micro-brewery and tap room. Soon, this project was completed in the Spring of 2017.
In the present time, some of the product line of Pabst Brewing Company are Pabst Blue Ribbon, Jacob Best, Ballantine, Schlitz, Blatz, Old Milwaukee, Colt 45, St. Ides, Stroh’s, Old Style, Lone Star, Olympia, Rainer Beer, Schmidt Beer, and National Bohemian. (excerpt from mental itch blog)
Imagine yourself as the Marketer for the largest brewery. The rapid rate with all the boutique breweries cropping up, now is the time to move in with a unique product. Past acquisitions of B and C Markets may have initially padded the pockets of the larger breweries but they knew that it would take much more to keep them afloat. The sustenance that it takes to keep the potential customer buying is declining so they started with Smirnoff’s wine coolers (3.2%), Jose Cuervo’s Tequila Margarita coolers, Mike’s Hard Lemonade (5%)and the new Corona Refresca (three tropical-inspired flavors were introduced during the summer: Coconut Lime, Guava Lime and Passionfruit Lime) (4.5%) This is slightly lower than the average wine cooler.
Some “beer afficionados” could say what’s the difference between Old Milwaukee and Pabst Blue Ribbon? They taste the same. Maybe the do and maybe they don’t. Marketing has changed in the last 180 years and it’s all about packaging and perception.
In fact, with the rise in new ways to market, I’m not sure if you can compare homogenization of a market craft brand (beer) to the dedicated personal “brand” marketing that other boutique breweries appear to depend upon?
Your Mission — If You Choose To Take It…
I do however know that the organic reach is what I call the “fundamental handshake” we all should have. In order to seal the deal with a handshake, you must devise a plan and implement that plan. — Joanna Strom
It sounds easy and with a handy-dandy listicle (pull out the old yellow ledger sheetpad) or a monstrous tearsheet, it’s a breeze right? I mean what’s one more webinar or one-liner email blast?
What does it mean to regain “Relevance”?
There are so many countless headlines which seem redundant and repetitive. More obvious than not, these quixotic interests and trends explain how an inexperienced seller attempts and fails to market a brand. A company can rely on the wrong intel aka data, basing their entire profit margin on it.
In a Harvard Business Review article, “3 Simple Habits to Improve Your Critical Thinking” written by Helen Lee Bouygues, there are key components anyone in Marketing should pay close attention to. One example was a company ignoring why sales were declining. It’s important not to overgeneralize and assume every customer’s preferences are the same. The strategy Ms. Bouygues implemented completely turned around an entire product line. Logic is an essential part of understanding the market and the buyer.
There are brick and mortar stores who rely on the personal connection with every potential customer walking through the door. Your goal is to personalize and predict a potential buyer’s purchases.
The hospitality industry caters to each customer. The “endless” tales of practicum fly right out the window! I can’t begin to tell you the magic that happens and the energy which is bounced around. The props they use are the one piece of chocolate truffle on your pillow or finding a beautiful display of bathroom products upon entering your hotel bathroom. It’s all about “being in the moment.”
Viral Marketing — Growth Hacks
I think it’s important to understand how “Referrals” have been a marketing technique that has been around for centuries. Think of the shoe cobbler as an example. “Shoe cobbler name” makes the best shoes in these parts (like you would have to travel hundreds of miles back in the day) and so this was an easy sell because of the “hardship” factor, n ot to mention they needed some shoes!
Speeding up to the PRESENT: The internet (videos, Livestreaming, Movie apps like Hulu or Netflix, webinars, YouTube, Vimeo, Facebook app & Messenger, TikTok, Pinterest, Whatsapp, Twitter, Insta Stories, Snaps, online ads, apps, etc.) is overly saturated on a global scale. I’ve barely touched the surface but that’s an example of where we are at. Apps dedicated to selling or others such as Instagram and Pinterest who have given into the marketable demands of selling product (skirt, hoodie, dress, heels) rather than enjoying the aesthetic of the image you posted. You can be challenged by the momentum but, for me personally, there is a strength in the satisfaction of telling a potential customer to their face: “I would never back a product I wouldn’t personally use myself.”
Bulldog Branding Tactics — Brand Culture
Awareness, Awareness, Awareness
In Your Face At All Times
Giving the Product Value
This will always be the selling point. Take the focus off YOU. Direct ALL eyes on the Product or Service you are selling. While retrieving data on likes and buying power is important, a human being always has that wily choice. As much as I hate to admit this, Machine Learning, Artificial Intelligence bots, etc. will never be able to “PREDICT” what someone is going to buy.
I think Branding Strategy Insider has the right idea of re-training the format of how we brand. We can look at data all day but people can change their minds and often without knowing why. They have a team experience called Brandingo which is a great way to learn outside the classroom. Hands-on is not enough. Experimentation is.
Alot of what we see is influenced by ads displayed from apps i.e. Insta, Snap, Twitter, YouTube, Facebook, etc. or directly by Influencers. It can take one comment or someone just having a bad day and that can make you flip the switch. You cannot predict that and selling is a personal, individualized, preferential experience.
