THE USE OF BRANDING STRATEGIES WITHIN SWEDISH CRAFT BREWING - DIVA
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The use of branding
Strategies within
Swedish Craft Brewing
BACHELOR THESIS WITHIN: Business Administration
NUMBER OF CREDITS: 15hp
PROGRAMME OF STUDY:
Sustainable Enterprise Development (SED)
AUTHOR:
Carlsson, Apelqvist, Emelie; Göthberg, Theodor; Magnusson,
Charlie.
JÖNKÖPING May 2020
1
Acknowledgements Firstly, we would like to thank our tutor MaxMikael Björling for his valuable and insightful feedback throughout the study. Due to his prior knowledge in similar studies we have been able to achieve relevant information and insights. Secondly, we want to thank all the participating breweries, this study would not have been possible without you. Also, the breweries that showed tremendous interest and support for our topic, we thank you also. Lastly, we want to thank the people around us that has continuously supported us throughout this journey. Emelie Carlsson Apelqvist Theodor Göthberg Charlie Magnusson May 18, 2020, Jönköping
Bachelor Thesis in Business Administration Title: The use of branding Strategies within Swedish Craft Brewing Authors: Carlsson, Apelqvist, Emelie; Göthberg, Theodor; Magnusson, Charlie. Tutor: MaxMikael Wilde Björling Date: 2020-05-18 Key terms: Brand Strategy, Craft Breweries, Brand Identity Prism, Keller’s Brand Equity Model, Sweden. Abstract Branding strategies is an important theme in business research. The purpose of the study was to explore how the growing industry of craft brewing are using branding strategies in order to strengthen their brand. The study was based on the theory of Kapferer’s brand identity prism and Keller’s Brand Equity model. The method used to gather data was interviews with several breweries spread across Sweden that were then analyzed using thematic data analysis. The findings show that craft brewer are using branding strategies to a large extent, however, not all the elements of the models are included in their strategy. The findings suggest that the reason for this is that the craft brewing industry is unique due to co-opetition and the nation’s strict regulations on marketing of alcohol. Organizations can use these findings to strengthen their brand as well as get a general understanding of how the industry is using branding strategies. This can be beneficial for newly established craft breweries or breweries that desire a stronger brand. 1
Table of Contents
1. INTRODUCTION 4
1.1 BACKGROUND 4
1.2 PROBLEM FORMULATION 5
1.3 RESEARCH PURPOSE 6
1.4 RESEARCH QUESTION 6
1.5 TARGET GROUP 6
2. THEORETICAL FRAMEWORK 6
2.1 CRAFT BEER BREWERIES 6
2.2 BRAND 7
2.3 BRAND MANAGEMENT 8
2.3.1 Branding Approach 8
2.3.2 Kapferer’s Brand Identity Prism 9
2.4 BRAND EQUITY 12
2.4.1 Content Marketing 13
2.4.1.1 Storytelling 13
2.4.2 Keller’s Brand Equity Model 13
3. METHODOLOGY 18
3.1 RESEARCH PHILOSOPHY 18
3.2 RESEARCH APPROACH 18
3.3 RESEARCH DESIGN 19
3.4 LITERATURE COLLECTION 19
3.5 DATA COLLECTION 20
3.5.1 Validity, Reliability, and Generalizability 20
3.5.2 Primary Data 21
3.5.3 Secondary Data 21
3.5.4 Interview construction 21
3.6 SAMPLING 22
3.7 DATA ANALYSIS 23
3.8 ETHICAL CONSIDERATIONS 24
4. FINDINGS 24
4.1 PRESENTATION OF BREWERIES 24
4.1.1 Good guys brewery 24
4.1.2 Hybris Brewery 25
4.1.3 Idlewild Brewery 25
4.1.4 Lundabryggeriet 25
24.1.5 Oppigårds 25
4.1.6 Secret Sisters Brewing 25
4.1.7 Westerbottens Bryggeri 26
4.1.8 Klackabackens Bryggeri 26
4.2 INTERVIEW FINDINGS 26
4.2.1 Background findings 26
4.2.1.1 Competition/Collaborations 27
4.2.1.2 Product Distribution 28
4.2.2 Branding approach 29
4.2.3 Brand identity 30
4.2.3.1 Physical product 30
4.2.3.2 Personality 31
4.2.3.3 Culture 32
4.2.3.4 Relationship 33
4.2.3.5 consumer reflection 34
4.2.3.6 self-image 35
4.2.4 Brand equity 35
4.2.4.1 Storytelling 35
4.2.4.2 Brand Identity 36
4.2.4.3 Brand Meaning 37
4.2.4.4 Brand Response 38
4.2.4.5 Brand Relationships 39
5. ANALYSIS 40
5.1 CODING 40
5.2 BRAND IMAGE 41
5.3 CO-OPETITION 43
5.4 EXTERNAL BRAND FACTORS 46
5.5 INTERNAL BRAND FACTORS 48
6 CONCLUSION 50
7 DISCUSSION 51
7.1 IMPLICATIONS 52
7.2 LIMITATIONS 52
7.3 FUTURE RESEARCH 52
REFERENCES 53
APPENDICES 58
APPENDIX 1 – SAMPLE QUESTIONS 58
APPENDIX 2 – QUESTION GUIDE 59
APPENDIX 3 – INTERVIEW CONSENT FORM 63
31. Introduction __________________________________________________________ The purpose of this part is to introduce the reader to what will be covered in the chapter. This is presented at the start of each chapter and is adapted to reflect the content of the chapter. ___________________________________________________________________ 1.1 Background With the rise of the craft beer industry in Sweden (Föreningen Sveriges Oberoende småbryggerier, 2020) and the public's desire for higher quality beer, an interesting linkage arises. Our journey started with the unusually large number of local craft beer breweries that inhabit our municipality. The focus was on craft beer manufacturers, which is defined to be more focused on innovation, using unique styles and using traditional ingredients to create a more individually unique beer according to the Brewers Association (2020). Access was gained to the cooperative network of owners of these breweries and started our conversation with them to get a deeper initial understanding of the overall process and community. Along with the information and stories received, the interest of the topic and industry grew increasingly as well. According to the Beer Store (2020), traditional beer is a product that consists of four basic ingredients, water, malt, hops, and yeast, which is fermented in order to create a beverage with some level of alcohol content. The process in which beer is brewed cannot be altered too much and it is just minor differences such as brewing time and how you process the malt and hops before the brew starts that can give an edge. Creating a unique beer that stands out and is competitive is difficult so creating a strong brand is key for the breweries. By looking at Kapferer’s (2012) most recent definition of a brand “a name that symbolizes a long-term engagement, crusade or commitment to a unique set of values, embedded into products, services and behaviors, which make the organization, person or product stand apart or stand out.”, the authors want to analyze these values and find out how craft breweries manage their brand in order to become unique and successful. 4
1.2 Problem Formulation The industry of craft beer breweries is still in its infancy but is rising exponentially. The new rise has sparked some interest in research relating to this industry but there's yet to exist sufficient or relevant research to yield any conclusions. However, there has been extensive research within the traditional beer industry and smaller-scale breweries have mostly seen research regarding external factors, such as consumer perspective (Carvalho, Moors, Wagemans, & Spence, 2017; Garavaglia & Swinnen, 2018). This study wants to further expand the existing knowledge and explore the niche topic of brand management in the craft beer industry. Moreover, previously conducted research in the brewery industry has been limited in their location sample. They have analyzed one to three breweries in one area of the country of interest, in these cases Greece, Finland and the US (Melewar, 2018; Kelley, 2019; Murray & Kline, 2015). This study will include multiple breweries from the north of Sweden to the south. This will get the perspective of multiple breweries. Much like the tourism that is connected to wine and winery tours, beer has started to receive the same kind of attention from craft beer enthusiasts (Murray & Kline 2015; Munar 2013; Cortese, Pairotti, Giachino, & Bonadonna 2017). With the exponential growth rate and the great reputation Swedish craft beer already has, this is a market worth exploiting. This means that it is more important than ever for craft breweries to create a brand that is strong enough to attract the attention needed for this consumer market to visit their brewery and try their beer. In order to create the needed brand strength managing the brand in the right way is key. Previous research into brand management in the beer industry has put much focus on consumer behavior and experience (Kelley, 2019). Brand management in the craft beer industry from the consumer perspective has provided some insights that proved useful in the industry, but the study of brand management from the breweries perspective would add on and fill the information gap. The question of how these breweries can manage to create a unique brand in a growing market would provide insights that previous research did not uncover that would be useful for future research as well as current actors in the craft beer industry. 5
1.3 Research Purpose
The aim of this study is to explore and gain knowledge into how Swedish craft breweries' work
with their brand strategies and how they are working in order to strengthen their brand.
1.4 Research Question
How does Swedish craft breweries use branding strategies?
1.5 Target Group
This study is for business students, professionals within business, and professionals within the
beer industry.
2. Theoretical Framework
___________________________________________________________________
The purpose of this chapter is to provide the theoretical background to the topic that will be
the basis of the understanding for the researchers and the readers. The information was
gathered from previous research on branding and branding approaches.
___________________________________________________________________
2.1 Craft Beer Breweries
Sweden does not have a clear definition of a craft brewery, instead the brewers themselves are
responsible for defining their beer (cohops, 2016). The Brewers Association (2020) defines
craft breweries as small and independent breweries that have a brewers licence and this is the
most commonly used definition. A small brewery is a brewery that produces six million barrels
of beer, or less, annually. Independent refers to less than twenty-five percent of the brewery is
being owned by an alcohol industry member that is not a craft brewer. Innovation is the trait of
craft brewers since they develop unique styles and use traditional ingredients (Brewers
association, 2020). The definitions of a craft brewery are many and there has still not been a
commonly used definition worldwide, but many of the craft breweries associations use similar
6definitions. The definitions of craft breweries usually use criteria such as: ownership, age,
production process, tradition and scale when trying to define what a craft brewery is (Garavaglia
& Swinnen, 2018 pp. 5). Due to some geographical differences in the definition of a craft
brewery, mainly since there is not an internationally accepted definition, a set of criteria were
established instead of basing the market on one country’s or brewer’s definition. According to
the researchers in this study the criteria of a craft brewery will be:
● Independent - Less than 25% is owned by an alcohol industry member that is not a
craft brewer.
● Traditional - The beer is created in a traditional way that takes time and is tailored
through a brewmaster. The entire production is followed by one or very few people.
● Innovative - the brewers create innovative and experimental brews using the traditional
ingredients.
2.2 Brand
A brand intention is to help customers to identify the goods or services of one seller or group
of seller, and to create a clear differentiation from its competitors, through the use of a name
and/or a symbol (a trademark, a logotype, or a distinctive package design) (Aaker, 2009).
The history of brands goes back to medieval times in Europe where trademarks were used on
goods to ensure rights and legal protection to the producer. After this time the brand was used
in the alcohol industry mainly since all the barrels looked the same when being shipped from
Europe, therefore a brand name was put on the barrels (ibid).
This was more or less how branding was used up until the 20th century when the popularity of
branding started to rise, due to technological advancements and following WW1 up until Oct,
1929, what is also known as Black Friday (Levy & Luedicke, 2013), was an era that is called
the “golden twenties” (Bubik, 1996) the “chain store decade” (Hotchkiss, 1938) and the
“merchandising era” (Converse, 1959, 37). This is the time when the marketing activity started
to gain traction and rise, however, the marketing and branding at this time were mainly product-
based (Levu & Luedicke, 2012).
7What followed after the second world war and the cold war was the advancement of the branding strategies, away from the mindset of selling products to actually satisfying customer needs (ibid). This is also the time when creating associations and uniqueness of the brand emerged, with differentiating factors like product attributes, distribution strategies, packages, names, advertising, etc. (Aaker, 2009). Around 1990, the branding and marketing ideology advanced again, this time the importance of networks and brand ubiquity was formed. This is the time when brand management broke ground and the importance, and fact that everyone, has a brand image that was realized and accepted (Levu & Luedicke, 2012). Today and during the last decade, it has been clear that there is no obvious definition of what a brand is and that the role of the brand is more extensive than just being a differentiation of your product from your competitors. Brand management is not as easy as advertising a product, a product needs multiple platforms, such as product placements or endorsements, and the brand needs to create a relation with the customer, this in order to stand out from the competition and stay relevant in and on top of the minds of the customer (Arvidsson, 2006). To better understand brands and brand management today, brand management will be discussed further as well as brand equity along with two theoretical models. 2.3 Brand Management According to Heading (2009), Brand management is a function of marketing that has over the last three decades undergone tremendous change in meaning, views, and usage. Due to the fluidity and flexibility of brand management when one weakness is found in a commonly accepted approach there is just a new one created. The evolution of brand management is today seen as seven different approaches. For breweries, it's important to realize what type of branding is being used in order to fully utilize the tools available to increase sales and improve brand image. The centralized nature of alcohol sales in Sweden forces these breweries to manage and use every aspect of their brand to its fullest potential in order to gain an edge. 2.3.1 Branding Approach In order to understand in what way a brewery manages their brand it is important to first understand the brand approach of the brewery. Heding (2009) presents the seven different brand approaches, 8
● The Economic Approach
o the neoclassical microeconomic approach where the ‘invisible hand’ is the
market driver and through the assumption that consumers are rational, the use
of the marketing mix will be the most efficient allocation of resources.
● The Identity Approach
o the creation of a brand identity is key in order to create brand value. The brand
must coherently express their identity to all stakeholders. Selling the brand
rather than a product.
● The Consumer-Based Approach
o the brand is constructed cognitively within the mind of the customer. The
customer is solely in charge of the perception they have of the brand. However,
skilled marketers are able to alter and influence how the mind of customers work
in order to choose the right elements of branding for the right customer.
● The Personality Approach
o the human personality and consumer identity jointly construct the brand equity
creation. the benefit a brand can provide expressed though the brand personality,
this is then analyzed by the consumers self and identity. The match of brand
personality with the consumer personality is then what creates the brand value.
● The Relational Approach
o The brand-consumer exchange is a cyclical process between them only much
like a human relationship. Both brand and consumer contribute equally.
● The Community Approach
o a brand-consumer exchange where consumers have the advantage. The ‘triadic’
relationship means that customers will interact not only with the brand but also
with each other. This creates a brand community that can bring great advantages
in form of customer loyalty and be more consumer-driven as a brand.
● The Cultural Approach
o What a brand can do to culture and what culture can do to a brand. Brands that
have managed to integrate themselves into the culture they operate in skillfully.
Brands that are seen as ‘icons’.
2.3.2 Kapferer’s Brand Identity Prism
Brand identity is a way to get an insight into the internal and external activities and values that
corporations use (Chernatony, 1999). In order to get an insight into how brands aspire to be
9perceived, brand identity can be used (Sääksjärvi, Samiee 2005). Several segments have been
recognized by previous research that make up a brands identity (Chernatony 1999, Kapferer
2012). In order to easily recognize these segments, Kapferer (2012) built a model to be used
when analyzing a brands identity. The identity prism was a model founded by Kapferer (2012)
in order to explore the segments that create a “passion brand”. This model suggests that a brand
is made from six different facets that represents activities or traits connected to the brand that
makes up its identity. This is to be used as a checklist when companies inspect and evaluate
their brand. In order for a brand to reach its full potential, all facets must be satisfied. This study
will use the Brand Identity Prism in order to categorise the different aspects that make up a
strong brand. These are the facets that make up the identity prism.
Figure 1: Kapferer’s brand identity prism
Source: adapted from Kapferer (2012)
10The physique – The physical specifications of an actual product is what adds the tangible value to the brand. Recognition through the visual medium is important for a brand to ensure early brand loyalty when launching in a new market. Combining different parts of the brand into the physical appearance is crucial in order to strengthen the brand identity. This part is extremely crucial for smaller breweries as it is a big way to distinguish themselves from other breweries. Because of the alcohol laws in Sweden prohibiting many forms of alcohol marketing (Norström, et al, 2010) , one could argue that the visual label in systembolaget is an important tool. Personality - All brands have a certain personality that needs to be communicated to the customer. This personality represents an outward image to the customer that they could possibly relate to. The personality functions to satisfy the psychological need to project oneself into the brand. Here the breweries can easily stand out since they are often run by a small number of people which makes it easier for the brewers to really affect the personality by using differentiation techniques and methods. Culture - For a brand to create a strong following of customers that actually cares about the future and wellbeing of the brand, a culture must be established around it. A culture ensures that customers feel personally connected to the brand. People who buy Coca-Cola brand products usually don't buy Pepsi-Cola products since they are different cultures or cults around the brands that creates rivalry and loyalty (Slater, 2000). In the context of the alcohol culture, a strong following made through personal connections during cultural activities is beneficial in order to affect the sales of their product (Galli, Boger, Taylor, 2019). With the rising number of breweries this becomes more crucial in their market. Relationship - The relationship is seen as the mode of conduct between the brand and the customer. All interaction with the customer signifies a relationship and that really affects how the company conducts itself. For example, hotel services rely heavily on a close relationship 11
with the customer through personal service as one of the crucial parts (Costa, Glinia, Goudas, Antoniou, 2004). Relationships with customers who consume the product of a Brewery is an easy way to create a personal connection which can lead to recurring customers Consumer reflection - Popular products and planned communication will build up an image of the brand's average customer. This image will be apparent to the customer and will enable them to project themselves into that image. If you think a brand identifies with the person you see yourselves as, you will be more likely to establish a loyalty to them. The customer may not exactly see themselves as the brand's consumer reflection, but when they buy the product they want to become the reflection. Self-image - The last cornerstone of the brand prism is the self-image of the customer. A brand has a personality which represents something, if the customer feels like that personality coincides with their own they will more likely buy the product. Different from the consumer reflection this is more based on the purchasers image of themselves and not the brands image of their purchaser. If the consumer's own values are a part of the brand they will feel a stronger bond with it. Brewery customers may identify themselves with certain beers depending on various factors which means that the self-image of the customer is a vital part of the breweries identity. 2.4 Brand Equity Brand equity is the value, positive or negative, that is based on the customer's experienced perception of the brand that is added to the end value of the product. It can also be seen as the premium that a customer is willing to pay for a product from a favored brand. However, it also includes the likeliness to recommend the product to peers as well as consideration of other offerings from the brand. Many researchers have studied the source of brand equity and some of widely accepted proposals include David Aaker (1996) as well as Kevin Lee Keller (2001). According to the proposal from Aakers (1996), the sources include brand awareness, loyalty, associations, perceived quality, and other proprietary assets. Brand equity, according to Keller (2001), occurs when the customer knows the brand and has unique, favorable, and strong associations linked to the brand in their memory. Both Aaker and Keller have published their 12
own brand equity models, however, Keller’s brand equity model (2001) is seen as the most comprehensive available. 2.4.1 Content Marketing According to the Content Marketing Institute (2020) content marketing is defined as “a strategic marketing approach focused on creating and distributing valuable, relevant, and consistent content to attract and retain a clearly defined audience — and, ultimately, to drive profitable customer action.” That being said, unlike “traditional” marketing where a brand transmits someone else’s content, content marketing revolves around the brands own content through relevant, compelling, and valuable information in order to create a positive effect on the customer (Pulizzi, 2012). An increasingly popular way brands use content marketing, that targets a deeper level the consumer's psych, is through storytelling (Woodside, Sood, & Miller, 2008). 2.4.1.1 Storytelling According to Woodside, Sood, & Miller (2008), Storytelling is central to every person's life. We store, sort, and retrieve a lot of the information we gather throughout our life in the form of stories. Not only that but stories also help us to relate to each other. Storytelling as a marketing tool is not new but in the last decades it has seen an exponential growth and it is fundamental for a lot of businesses in order to educate, mediate knowledge, and build loyalty. (Rytkönen, Vigerland, & Borg, 2019). Alcohol is also arguably very integrated into the history of many countries (Lee & Shin, 2015). From a local brewers it was quickly realized that using the history of beer brewing in Sweden, the history of the region, or the history the brand itself has paved way for and storytelling is the way this history is conveyed. However, storytelling does not necessarily have to take the form of stories being shared verbally, rather it can be spread through multiple different channels such as social media, public relations, email, and the company website. (Pulizzi, 2012). 2.4.2 Keller’s Brand Equity Model Kevin Keller presented his theory of brand equity in 1993 in his article Conceptualizing, Measuring, and Managing Customer-Based Brand Equity. This theory was later developed and presented in the book Building customer-based brand equity: A blueprint for creating strong brands, a book that has been fundamental in this theory along with other findings from Keller. 13
This model is later argued through other scholars' studies. According to Keller (2001; 2007),
there are three goals that drove the development of his brand equity model, also known as
customer-based brand equity model (CBBE model); firstly, it had to be a logical, grounded and
well-integrated model. Secondly, It had to be versatile and applicable to all industry and brand
settings. Lastly, it had to have enough breadth and be comprehensive enough to cover the
important branding topics but also enough depth to provide valuable observations and
guidelines.
The model that was created is a four-step process as well as a pyramid with six different
“building blocks” (see fig. 1). The four-step process is contingent on the completion of the
previous step. Each step in the process also has a set of objectives that ensures that it involves
both existing and potential customers. The four steps are:
1. Brand identity - ensuring that customers can identify the brand as well as creating an
association of the brand in the mind of customers with a certain product need or class.
2. Brand meaning - establishing a connection in the mind of the customer through the
linkage of intangible and tangible brand associations.
3. Brand response - extraction of the customer responses to the meaning and identity of
the brand.
4. Brand relationships - convert the response into a strong, active and loyal relationship
between customers and brand.
Along with these four steps is a pyramid consisting of six “building blocks”. Just like the four-
step ladder, the higher up the pyramid your brand is the stronger it is perceived.
14Figure 2: Keller’s brand equity model
Source: adapted from Keller (2001)
The blocks of the pyramid (see fig. 2) consists of multiple subdimensions (see fig. 3) that is
stated and highlighted by Keller as follows:
Brand Salience - how aware of the brand is the customer? Is it a top-of-mind brand and can it
easily be recalled from memory? Salience is the foundation block and consists of three key
functions:
● It forms and influences the strength of brand image and brand meaning.
● it is crucial to create a high level of salience in category identification as well as needs
satisfied in order to exploit purchase and consumption opportunities.
● For “low-involvement” product categories a strong brand salience is the most important
since that is the sole factor that the customer will base their purchase on. Low
involvement is experienced when the customer lacks: (1) purchase motivation or (2)
purchase ability.
Brand performance - being able to design and deliver a product that fully satisfies the needs
and wants of the customer is key for successful marketing. By at least meeting, preferably
exceeding, the customer needs and wants the brand will create brand loyalty and resonance.
There is five types of benefits and attributes for brand performance:
● primary characteristics & secondary features - the beliefs of the level of the primary
characteristics of the product as well as the special features of the product that
complements those characteristics.
15● Product reliability, durability, & serviceability - the consistency of the performance
over time, the economic lifetime of the product, and the ease of servicing the product.
● Service effectiveness, efficiency, & empathy - how effectively the brand manages to
meet the customers’ service requirements, the efficiency in which the service is
managed, and how caring and trusting the brand is during the process.
● Style & design - the aesthetic considerations of the product along with sensory aspects.
● Price - the pricing strategy adopted by the company including price volatility and
variance.
Brand imagery - the extrinsic properties of the good or service and the ways in which the brand
manages to meet the psychological and social needs of the customers. There is plenty of
intangible factors for a brand, however, Keller has decided to highlight four categories:
● User profiles - the type of person or organization using the brand. Often an idealization
of the customer using demographic and psychographic factors.
● Purchase & usage situation - the set of associations in which the brand is being
purchased or used. Purchase situations include purchase channel, specific store, and
ease of purchase along with linked rewards. Usage situations include time, place, and
activity for which the product is used.
● Personality & values - the traits or values of the idealized customer. There is five
dimensions identified: (1) sincerity (2) excitement (3) competence (4) sophistication (5)
ruggedness
● History, heritage, & experiences - the associations with the past and noteworthy
events from the brands history.
Brand judgements - the personal opinions of the customer and their evaluation of the brand.
Key judgements are: (1) quality (2) credibility (3) consideration (4) superiority
Brand feelings - the emotional response and reaction of the customer in regards to the brand.
Key feelings include: (1) warmth (2) fun (3) excitement (4) security (5) social approval (6) self-
respect
Brand resonance - the ultimate relationship for the brand and the level of identification the
customer has to the brand. Includes: (1) loyalty (2) attitudinal attachment (3) sense of
community (4) active engagement.
16Figure 3: Subdimensions of Keller’s brand equity pyramid
Source: adapted from Keller (2001)
Some scholars argue the benefit of using Keller’s equity model. Na, Rogers, & Keller (1999)
showed through a study that the usage of the Brand equity model does prove useful when
finding the relevant antecedents of brand equity. Burmann, Jost-Benz, and Riley (2009)
acknowledges the brand equity pyramid as one of the most important models, due to the
introduction of brand attributes, brand awareness, and brand-induced functional & symbolic
benefits. Kuhn, Alpert, & Pope (2008) describes Keller’s brand equity model as one of the most
comprehensive models available and identifies elements that the model ignores, which benefits
and strengthens the usage of this model in this study. These areas include: profitability, market
share, and reputation as well as the support system. Something that the authors did not attempt
to investigate as it was seen as areas that lacked relevancy to the research topic. Researching
this would have led to a more analytical study.
173. Methodology ___________________________________________________________________ In this chapter the structure of the research will be laid out. What methods that were used as well as the reasoning why specific research methods were used will be discussed in this methodology chapter. __________________________________________________________________ 3.1 Research Philosophy Collis & Hussey (2014), describes two different research paradigms, interpretivism and positivism. These two paradigms are being distinguished by saying that positivism is a more objective approach, while interpretivism is a more subjective approach. The authors wanted to immerse themselves in the research knowledge in order to get a subjective take that could provide valuable insights to strengthen the possible results. An interpretivism approach was chosen as it fits well with the overall research design. Collis & Hussey (2014) describes the interpretivism approach as an approach that the researcher wants to explore a phenomena, while an positivism approach focuses more on measuring a phenomena. Since this study will be exploring the phenomena of brand management strategies within the craft beer industry a qualitative data collection will be conducted. Therefore, the interpretivism approach seemed to be suitable as the authors hope to generate new insights and develop a deeper understanding of this phenomena. The focus of this research is upon the owners of craft beer breweries so it was chosen to use a persona and inquisitive approach in order to fully explore the mental process of these owners. In order to do this, in depth interviews was chosen as the main process of data collection. Personal understanding and perceptions create better conclusions and insights than theories and concepts since they often only provide simplistic conclusions. 3.2 Research Approach Collis & Hussey (2014) describes two different theory development approaches: Deductive and inductive. 18
Deductive approach is where the research starts with a theory and then the researcher wants to test the theory if it is true. The researcher develops an hypothesis and then from the data collection the hypothesis will be analyzed and evaluated (Collis & Hussey, 2014). Since deductive reasoning is about testing the accuracy of a hypothesis, the deductive approach is not suitable for this study. Using an inductive approach is when the researcher collects data and explores a phenomena, and then the researcher recognizes patterns and themes in the data collection in order to explain the explored phenomena. Opposite from deductive approach the inductive approach goes from observing the empirical observations and then developing theories (Collis & Hussey, 2014). The inductive approach is more suitable for this study since the authors want to explore a topic rather than trying a hypothesis. Inductive is also more suitable for this study since it enables for broad generalizations from a select data gathering (Bradford, A. 2017). 3.3 Research Design Qualitative and Quantitative are two methodologies for designing the research. Quantitative research method is data that is numeric while qualitative data is non-numeric (Sunders, Lewis, & Thornhill, 2016). The method for this study will be qualitative. Since this thesis aims to explore rather than measure. In the literature, the phenomena of craft breweries in Sweden and their strategies is unexplored and the aspects of this phenomena remain unidentified. To explore these aspects a qualitative approach is more appropriate since there is a need for a detailed understanding of the strategies. Hence the qualitative approach is a more suitable choice of method for this study and semi-structured interviews will be conducted. 3.4 Literature collection The authors gathered literature data to understand the collected primary data and to produce a theoretical framework. The literature data were gathered through the databases primo, google scholar, and web of science. Keywords the authors used in order to find the most relevant data were: “Brand management” “beer” “craft-beer brewery” “brand equity” “brand loyalty” “community connection” “brand identity prism” “brand identity” “brand image” “beer branding” “Brand equity pyramid”. 19
Data was also gathered from three books, Kapferer’s The new Strategic Brand marketing: advanced insights and strategic thinking (2012), Keller’s Strategic Brand Management: Building, Measuring and Managing Brand Equity (2007), and Hedin’s brand management: research, theory, and practice (2009). These three books were used since the authors are prominent figures within the topic and the models formed by these authors are academically accepted. Since the models were of interest the books were only used in order to gather information about these. This data was then also confirmed and backed up through searches on online databases. 3.5 Data Collection 3.5.1 Validity, Reliability, and Generalizability The main problems that present themselves when collecting and using data are the issues relating to validity and reliability (Collis & Hussey, 2014). The validity of the data determines how accurately the data reflects the phenomena that is studied. The reliability refers to how similar the findings would be if the research was repeated. When deciding the data collection process, the authors wanted to maximize both the reliability and validity of the data collected. Qualitative methods have a strong validity by nature so the focus was more heavily on maximizing the reliability. Generalizability is often not taken into heavy consideration for qualitative research since the focus is often on specific phenomena making it hard for it to be widely adapted (Leung, 2015). For the purpose of this research the same criteria used for the validity will be used to measure our generalizability. One of these criteria will be the usage of triangulation. Triangulation is a method of using several different methods or data sources to add validity to the research and to get a complete understanding of the phenomena (Carter, et al., 2014). Wilson (2014), discusses four types of triangulation. Data triangulation, Investigator triangulation, Theory triangulation and methodological triangulation. Data triangulation and Investigator triangulation will be used by the researchers in this study in order to increase the validity. Data triangulation is when data is being collected at different data sources. This is being done through the semi-structured interviews since the interviews are being held with different people and at different times. Investigator triangulation is the use of several researchers when collecting and analyzing the data. All of the three researchers have been present when gathering the data and analyzing the data. 20
3.5.2 Primary Data The main form of data collection that is to be used in this research will be in the form of interviews as it is the predominant method used in qualitative studies. Open-ended questions will be used in a semi-structured interview format to ensure exploratory and broad answers. The questions were all prepared in advance in a progressive way but the interviewees are encouraged to explore any information with their own question if deemed necessary for the research. The same questions and structure will be used for all the interviews in order to maximize the reliability of the data. The questions are crucial for the quality of the data gathered from the interview. The questions are structured based on the theoretical framework previously laid out in this document. Because the analysis will be based upon previous theory, the data gathered should be as relevant to the theory as possible. 3.5.3 Secondary Data Secondary data on the company cases was mainly gathered from their respective website if available. Price and availability data was also collected on the respective breweries before the interview was conducted. This data was collected directly from Systembolaget’s website. 3.5.4 Interview construction The data has been collected through eight interviews with an expert from the brewery, either the founders or manager that was suitable for our topic and the types of questions that would be asked. Prior to the interview, the companies did receive a selection of questions from our question guide (appendix 1), the reason for this was that it would help the brewery with understanding what type of questions the interview would consist of, kickstarted their thoughts on the topic, and it ensured that the right person for the topic was interviewed. Before the interview took place a consent form with the expectations of the interviewee and interviewer was also sent, this was then discussed at the beginning of the interview where potential questions of the interviewee about the study could be raised. The reason for this was to ensure that both parties understood what would happen and to minimize confusion and misunderstandings. The interview setup was one interviewer that followed the question guide (appendix 2) with at least one of the other authors attending the interview in the form of an observer(s) with the opportunity to follow up with potential questions at the end of the interview, this in case some 21
area lacked data. Seven out of the interviews took place though online meetings or phone calls. One of the interviews took place in person. The preferred interview method was in-person meetings since this is a method that shows the person’s body language and emotions better as well as it becomes a better experience for both parties since there is little that can interfere, e.g. technical difficulties or lack of engagement. However, due to the geographical spread of the breweries, it was impossible to arrange only in-person meetings, so the skype session became the second-best method since this emulates the in-person meeting experience quite well. Phone Call interviews were still sufficient since you can tell the tone of voice and emotions, however, it lacks the body language and integration you get through a video call or physical meeting. After the interview ended there was an opportunity for the interviewee once again to ask potential questions before ending, this in order to address thoughts or worries that might have occurred during the interview. How the interview would be followed up was also mentioned. The follow-up process included a transcript of the interview to the interviewee in order for them to edit potential errors or remove parts that were seen as not suitable, classified, etc. Also, follow-up questions could take place if either party felt like that was needed. 3.6 Sampling The sampling method was convenience sampling. The main reasons for using convenience sampling is that the subjects are easily accessible and readily available (Etika, Musa, Alkassim, 2016). Additionally, it allowed for a wider geographical spread of subjects. The authors searched for craft breweries in Sweden and primarily from the websites “sverigesmikrobryggerier.se/” and “sverigessmabryggerier.se” a sample was selected with the aim to have a few breweries from every part of Sweden, from north to south. The reason for these two websites being used is since they are established networks of craft and microbreweries, and these were the breweries of interest. A tour to Systembolaget to browse for breweries that stood out to the authors was also conducted. The reason for this tour was to get in contact with breweries that stood out extra from the large selection that is available that the usual person experiences when they purchase their beer. Emails were then sent out to the breweries of interest, the variety of breweries in terms of scale and product portfolio was a factor of importance so too similar breweries were not contacted. Approximately 50 breweries were contacted with a generally positive response rate initially. However, due to COVID-19 a 22
lot of respondents opted to not take part after their initial response. The resulting list ended up
being eight breweries from Umeå to Lund with various brewery sizes and product selection.
Table 1: The interviews
Brewery Interviewer Interviewee Duration Form
Good Guys Emelie Daniel 00:32:26 Skype
Hybris Theo Robert 00:30:32 Skype
Idlewild Charlie Damien 00:33:20 Face-to-Face
Klackabacken Emelie Tim 00:20:03 Skype
Lundabryggeriet Charlie Bosse 00:58:19 Skype
Oppigårds Emelie Sylvia 00:37:56 Phone
Secret Sisters Theo Paulina 00:38:50 Skype
Westerbottens Charlie Anders 00:44:57 Phone
3.7 Data Analysis
Thematic analysis is a method for analyzing qualitative data where you identify, analyze and
interpret themes within the data set (Clarke & Braun, 2006). The analysis will be dependent on
the researchers personal approach and view to the exploratory phenomenon. The thematic
analysis will be able to offer a structured method to analyze the data while also allowing
personal insights and perspectives to play their essential roles in the process.
The researchers started their analysis with transcribing the data collected. The next step of
analyzing the data was to identify themes across the data sets. After this step the researchers
reviewed the different themes that had emerged and started to identify categories. After
reviewing the themes, four categories were found. Further analysis of the categories in
conjunction with previous findings as well as the theoretical framework was conducted at this
point. This was done to give the researchers some perspective on the collected data in regards
to how these topics and ideas are viewed from a theoretical standpoint.
233.8 Ethical Considerations Prior to the interview a consent form was emailed (appendix 3) to the contact person from the brewery. The form outlined the expectations of the interview, how the data would be collected, who would have access to the gathered data, and how the data would be handled post-thesis. The form was then confirmed verbally in the beginning of the interview where potential questions were addressed beforehand. At this point it was also asked whether or not the interviewee wanted to be anonymous in the study or if citations could be used with the real name. 4. Findings ___________________________________________________________________ The findings chapter represents a structured view of the collected data. First a brief summary of the interviewed breweries followed by the relevant findings from the interviews. The structure is based on the theoretical framework in order to easily connect the findings from the interview to the theoretical base. __________________________________________________________________ 4.1 Presentation of Breweries The brewers started the interview with a small general introduction of their brewery with questions that included size, production volume, etc. 4.1.1 Good guys brewery Good Guys is a brewpub with their roots in the center of Karlstad, they combine their modern brew with quality food in their bar for a full experience. Their focus is to produce a super high- quality beer that inspires people to be and do better. They produce 100 thousand liters yearly (Wicksell, D. H. 2020). 24
4.1.2 Hybris Brewery Hybris has built their brewery out of an 18th century noble manor on the coast outside of Kungälv. They brew traditional beers with a strong and bold character, this ties together the brand name and idea of hubris with the product since the beer is something extra. The brewery consists of four owners that do not have brewing as their main occupation but rather share the responsibility that comes with the brewery as a fun side project, something that they vision being a full-time occupation in the future. Today they brew around 12 thousand liters of beer a year (Wattjersson, R. 2020). 4.1.3 Idlewild Brewery This brewpub is located in central Jönköping and is locally known by the people. They brew beers focused on quality and personal connection. It started as an interest that turned into a passion and now they brew a variety of locally popular beers (Linsley, D. 2020). 4.1.4 Lundabryggeriet Outside of Lund, you will find Lundabryggeriet which is a brewery that started out after a successful batch for a friend’s birthday. They officially started out in 2011 and today they brew around 65 thousand liters of beer. Their product portfolio includes a wide variety of traditional beers with the idea that there is something for everyone’s taste (Bergenståhl, B. 2020). 4.1.5 Oppigårds By far the biggest brewery on this list is Oppigårds brewery with their staggering two million liters of beer produced yearly as well as 20 full-time employees. Despite being the size that they are they have maintained the image and quality of a smaller craft beer brewery. Their big success can be credited to their consistency during the years as well as their early start in the market (Falkenström, S. 2020). 4.1.6 Secret Sisters Brewing Secret Sisters is a Malmö based brewery that has received a lot of attention since they are an entirely women-run brewery. It is four friends that have started to brew as a side project after ordinary work but now have grown into something more than that. They do not own their own brewery but rather brew under a pub/restaurant that also is their sole customer. They produce 25
around 50-80 liters a month but also have plenty of collabs with other local breweries with
larger quantities (Nordling, P. 2020).
4.1.7 Westerbottens Bryggeri
Westerbottens Bryggeri is a traditional brewery located on the outskirts of umeå. They pride
themselves on their connection to the local surroundings as well as the simplicity and quality
of their beers. They produce 55 thousand liters of beer per year with a total of two full-time
employees (Karlsson, A. 2020).
4.1.8 Klackabackens Bryggeri
Klackabackens Bryggeri calls their brewing “traditional with a twist”. They are located outside
of Kristianstad in western Skåne. They started in 2012 and have received attention nationwide
a few times when they received a gold in “porter of the year” and silver in “beer of the year”
2016 as well as they one year were delivering their beers to the mythical afterparty of the Nobel
Prize. Today they produce around 300,000 liters of beer in their brewery consisting of three full
time employees and one part-time employee (Persson, T. 2020)
4.2 Interview findings
4.2.1 Background findings
The background stories behind how the breweries started are different. Many of the brewers
interviewed worked at different jobs before getting started with the brewery. The breweries
explain having an interest and passion for beer as the main reasons for starting their own
breweries.
“...before I became a professional brewer, I was a happy brewing amateur.” - Lundabryggeriet
“We love beer! It's a passion and then the thing that you can make it yourself and make beer exactly
how we want the beer to taste. That's how we did it in my basement also during all these years. It was
simply a will to do what we really like and get work with it as well as a will to give other people a
possibility to taste our product.” - Westerbottens Bryggeri
Furthermore, the breweries mention that they wanted to brew beer that tastes the way they want
it to taste as a motivator for starting to brew their own beer. The breweries mention that brewing
26beer in the beginning was a fun hobby and through the years they started beer breweries in order
to let other people taste their products. They have continued to produce beer on their own
individually preferences towards what flavors and tastes a beer should have, as highlighted by
Secret Sisters, Idlewild and Oppigårds.
“It is not like we only brew sour beer... Instead we do a little of what we want to do. We haven't
chosen a certain path” - Secret Sisters
“I brew the beer I want, for me...I want to brew the beer I want...So far it works. People like it. You
can't brew beer for everyone, then it becomes Carlsberg or Pripps”. - Idlewild
“We have tried to think or act like more on the beer we like, the style we like and this product we
believe in.” - Oppigårds
4.2.1.1 Competition/Collaborations
Majority of the breweries have through different activities been doing collaborative work with
other craft breweries. Nearly all of the breweries identify other craft breweries both as
competitors and colleagues in this industry. Rather than only seeing each other as competitors
the breweries cooperates with each other where they can exchange knowledge and
competencies. Klackabacken brewery and Westerbottens brewery highlights this.
“We do both a lot of collabs and help on a more local front, with lending stuff, exchange experiences
and help. So it’s a pretty close industry really. It is quite unlike other industries that you are helping a
lot... But it is not always so because there are competitive situations also but of course we help each
other to a certain extent” - Klackabacken
“I think you are the fourth or fifth I talk to who wonders how it works with small companies and are
you colleagues or competitors and we are both and it's just to note, we usually call each other
colleagues but of course we compete in the same market” - Westerbottens Bryggeri
Almost all of the breweries are participating in brewery associations. These associations are a
place for the breweries to engage in issues that arise within the craft brewery industry. This is
a way for the breweries to reach out to politicians and to pursue mutual communication towards
Systembolaget since Systembolaget is a big player within the industry. Especially
27Lundabryggeriet and Oppigårds highlights the positive aspects of having these kind of
collaborative work.
“...we also have a network that we are part of, called ‘Sveriges Oberoende Småbryggerier’, where we
do some general work. Among other things towards our politicians and so on, to be able to pursue
common issues that you then mediate … for we need to come together. So it's like an industry or
organization for small breweries ”. - Oppigårds
“We are part of two associations of interest. ‘Skånes dryckesproducenter’ who have one of their
biggest things being well organized local events. Where we stand together with a bunch of breweries
and sell our products. And it is very important as a marketing channel, to come out and meet
consumers plays a big role. While we, and it is good to meet colleagues and sit down and talk to them
about suppliers and drive common, what is called, joint communication with Systembolaget which is a
tremendous player of power in this context and to carry on lobbying for politicians and such. Then we
are a part of another association called ‘Sveriges Oberoende Småbryggerier’, which is partly a little
bit the same. " - Lundabryggeriet
4.2.1.2 Product Distribution
Nearly all of the breweries have the same major product distributor, which is Systembolaget.
Additionally, places like bars, restaurants, and supermarkets are other actors where the
breweries distribute their products.
Some of the breweries explain the difficulties of getting restaurants to sell their products. The
large-scale beer producers have much more capital to invest into new restaurants and bars.
Consequently, the restaurants have to sell the larger beer producers’ products rather than
choosing the craft breweries' products since they invest into the restaurants. This is being
highlighted by Lundabryggeriet and Idlewild.
“...it is very difficult to get into restaurants. It is true that restaurant companies are sitting in a fox's
trap. Because most restaurant companies that come to the bank want to borrow money and then the
bank says no immediately if it is not a very established company. And in practice, they mean that the
only people who give credit to the restaurant companies are suppliers, especially the breweries. And
then it's Spendrups, Pripps and Carlsberg we're talking about. And they actually give quite extensive
credit to the Swedish restaurants. And they take the restaurant if something happens financially. And
28then they sell it and get the money again. So we can't compete there. And then they shut us small
producers out from ... So that's a competition problem I would say. " - Lundabryggeriet
“You all know, when you talk to the owners and those in charge it is always "yes yes it will be great".
But when you come to, all restaurants have agreements with Carlsberg or Åbro, so it's difficult. But
there are some in town”. – Idlewild
4.2.2 Branding approach
The branding approaches used by the breweries are: (1) Identity approach, (2) customer
approach and (3) community approach.
All the breweries try to and see tremendous value in creating an identity for their brand. It is
clear from many breweries that it is not enough to be able to brew a great beer today without
an identity behind the beer, this due to the extreme competition. Klackabacken expressed this
well in their interview.
“So branding is very important, you can't have a boring label no matter how good the beer tastes. It is
also not possible to have a boring company profile, however good beer you can produce.” -
Klackabacken
Due to Sweden being very strict with marketing of alcohol the sales automatically ends up being
the customer approach. A major part of the perceived image of the brand is built in the mind of
the customers. There is little help for breweries to alter this image also. They can take part in
festivals and try to change the image through different forms of interactions. This is expressed
by the breweries.
“... it is very difficult to market alcohol in Sweden. We try to sneak on social media and market new
products ... We are invited to lots of fairs, last year we were invited to, I do not know how many fairs
and festivals but we are out and show us as we go around and people know we are at place” - Good
Guys
... It's almost good if they have a picture of who we are. That they feel like a personal closeness. So it
is very important with shop activities and such. That we go out to shops and have tastings of light
beer, we have done this a number of times ... So we have some printed stuff there that we distribute in
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