In response to Gideon Rapaport’s Blog “Microbrewing Industry” based on The Wall Street Journal’s article which can be found at: http://online.wsj.com/articles/how-a-brewing-hobby-became-a-business-1413751953?mod=trending_now_3
The focus of Gideon’s blog is on is how brewing at home produces a product which is superior to mass market brews which are found at bars around the world.
Even if the beer is better, there still needs to be a differentiation strategy behind the decision to start a brewing company and in this article there is none mentioned. The beer market is a mature industry with an abundance of competition so what might possess someone to abandon a stable job to pursue a hobby in a risky industry? To gain success in this industry, a target market and a specific differentiation strategy is necessary.
Jennifer Martin started her company, SIP Soda as an alternative to San Pellegrino. This is very similar to the situation of Scott Smith who gained success through his undirected beer company. The difference is that Martin saw a gap in industry for natural flavoured sodas to be served as an alternative to alcohol or classic soda. There is already a market for expensive beer and cheap beer and a taste difference is often not enough to win a market.
For a brand that does not want to be mass market, they must advertise very specifically to the narrow target market. As for cost, there is no cost strategy mentioned in the article, which should be something that Smith and the Wall Street Journal should use in terms of how to differentiate. This article makes starting a small business in a mature industry seem easy when truthfully there needs to be a motive behind the business.
Bibliography:
Hagerty, James. “Ho a Brewing Hobby Became a Business.” The Wall Street Journal. Dow Jones & Company, 19 Oct. 2014. Web. 3 Nov. 2014. <http://online.wsj.com/articles/how-a-brewing-hobby-became-a-business-1413751953?mod=trending_now_3>.
Vennare, Joe. “Grab a Drink from These 9 Local Breweries and Distilleries on Fittsburgh.” Fittsburgh RSS. Web. 3 Nov. 2014. <https://getfitpgh.com/drink-local-pittsburgh/>.