SXSW: The Mecca of Awesome

**NOTE: This post doesn't really focus around the theme of marketing, as other posts in the past have. It's just about a rad time I had, that mildly incorporates some aspects of marketing into it. Enjoy!

Austin, TX—South by Southwest (SXSW), a magical experience of all things technological, interactive, cinematic and musical. I had the pleasure of attending the SXSW Music Festival this year (March 13-18) with a couple of friends, and let me tell you, it didn’t disappoint.

Despite living in Texas for 8 years, I had never experienced all the great things I had heard about Austin. Perhaps it was because the only times I visited were when I was 10 and 12 years old and were for a visit to the capitol and a tennis tournament, but I digress. When the opportunity to visit my friend Spencer, who had recently moved to Austin for work, to be able to experience SXSW and to see one of my favorite bands (Futurebirds) arose, I couldn’t pass it up.

Now I have been to my fair share of music festivals, events and concerts: ranging from Bonnaroo Music Festival to a monster Bruce Springsteen Concert to a listening session at the hallowed Bluebird Café in Nashville, but SXSW is a completely different animal. What makes SXSW so special is that it has the holy trinity, the trifecta, the triple threat, the…ok, I’ll stop…it has atmosphere, interaction and tons of FREE stuff.

The atmosphere is crazy unique; there is literally music pumping out of every door you walk by. No space is spared: bars and parks are converted into music venues, parking lots are transformed into food courts (courtesy of the plethora of delicious Austin food trucks) and your eardrums are filled with the eclectic stylings of bands from every genre. One of the better things about the atmosphere is each party/show usually has somewhere in the range of three to five bands playing. If you don’t like one of the artists, pop out to another show and come back. Literally there is always something going on somewhere.

I have never been to an event that was so interactive. While SXSW does have its own technology-based part of the festival, SXSW Interactive (SXSWi), the week before, the music portion continues that tradition. SXSW requires its attendees to be well-versed in the art of social media: RSVPing to parties and shows, checking Twitter feeds for secret shows or updates about the festival’s happenings and website URLs, Twitter handles and QR codes covering the city. For a social media nerd, like me, it was heaven.

Possibly the greatest thing about SXSW is the ungodly amounts of free stuff you get. For example, I was at SXSW for three days and two nights. I spent just under $60 that entire time on food and drinks. Why? Because SXSW has so many sponsors for each of the hundreds of events that they can give away stuff. Aside from every concert/party/show I went to being free, I got free food, booze and/or schwag (stuff/items) at four out of the six parties I attended. Thanks to SXSW, “free” has become my second favorite “f-word”.

Overall, would I say that SXSW has taught me anything? Would I say that it’s an experience I’ll cherish? Absolutely! So to all you music festivals and general event planners out there, remember that the key ingredients for a truly awesome event are atmosphere, interaction and free stuff.

The following is a list of the bands that I saw, or at least can remember seeing:

Paper Diamond

Futurebirds

The Living Kills

The Shins

Mystikal

(2 dubstep DJs)

Jonny Corndawg

J Roddy Walston and the Business

Yellow Ostrich

New Kid on the (Primetime) Block

According to the A.C. Nielsen Co., the average American watches more than four hours of TV each day. For those of you playing at home, in a 65-year lifetime, that means a person will have spent nine years glued to the tube. With so much television being watched, wouldn’t it be nice if there was something to help enhance our experience with it and, dare I say, reward us for our habit? Well my television zombie friends, there is. Enter Viggle. Viggle is an app that can be classified as a “TV loyalty program.” It enables the user to “check in” to both shows and commercials for redeemable points. This app doesn’t just give your account a special title, like “Mayor of Who-Gives-A-Damn” (as with the Foursquare app)—with Viggle, you actually earn tangible rewards. In my opinion, this app is a precursor to how viewers will interact with programs, how advertisers will target audiences, and how television data will be tracked and analyzed.

Let’s dive a little deeper into Viggle. As previously mentioned, it allows a user to “check in” to various television shows and commercials. Each one is worth a certain number of points, with featured shows such as American Idol, Pawn Stars, and Top Chef, being worth more points. These accumulated points can be redeemed for items such as gift cards from Amazon, Starbucks, Gap, movie tickets from Fandango, or to raise money for some of Viggle’s featured charities. The app uses “proprietary audio recognition technology” to identify shows from more than 150 channels, including major broadcast networks. While there are other apps that apply the same principle, such as IntoNow and Shazam (Shaquille O’Neal’s favorite app—if you’re over 26 years old, you won’t get that joke), their user-interfaces don’t match Viggle’s. Viggle uses gamification, the act of taking an activity and applying a game-like quality to it, to change how audiences watch and advertisers utilize television.

Viggle allows users to connect and interact with their favorite shows like never before. Through gamification, people will have a desire to watch TV in order to accumulate points. Furthermore, due to this desire, users may watch other shows they typically don’t. In addition to being rewarded for their program loyalty with points, the Viggle app includes a community where users can Tweet, post comments or chat about each show’s events in real-time. Within this community, users are not only interacting with the shows, but with other users to enhance their experience.

The heightened experience and gamification create a win-win scenario for all parties involved: users, television networks, and advertisers. Let’s break it down: Users are rewarded for watching TV, nothing out of the norm. They have to give away only a small amount of information (name, age and email address) to be rewarded for essentially doing nothing but watch. Television networks are compensated by the competitive aspect of the app—Viggle users wanting to obtain more points by tuning into their programming. If a network’s show is worth a lot of points, more people will want to watch it. Simple enough. Advertisers are indulged a couple of ways: a new medium with data tracking/analytics. Viggle provides a new app and medium upon which to advertise. This could take the form of paying a larger fee for a client’s show or commercial to make it worth more points to the user, banner displays and other options. Additionally, everything from number of watched shows, networks, and commercials to demographics data can be tracked and analyzed for easy data mining.

Advertisers can associate themselves around key shows that they’re engaged with. “You’re basically creating a direct response out of their advertising, which is the Holy Grail,” says Chris Stephenson, president of Function (x), the company behind Viggle.

I believe that Viggle, with some investing, could become the future of television data tracking. If users were to provide more demographic information upon signing up, Viggle could possibly become a better alternative to the Nielsen Box. Viggle is mobile, allows for multiple check-ins for multiple viewers, can field data regarding opinions and feelings of the shows and commercials, offers a motive for users to practice, and can be readily available to a greater population than the Nielsen Box. Suck it, Nielsen. (Sorry, I have nothing against Nielsen, it just felt right to say).

Viggle has the possibility to truly become something special—the next great app. Viggle’s practice of gamification enhances people’s experience with television to the umpteenth degree and allows for interaction with other viewers like never before. Moreover, it creates an uncanny win-win scenario for everyone involved: users, television networks and advertisers. Finally, Viggle could change the way television data is gathered, tracked and analyzed through its mobile components and its built-in community features to gauge audience opinions. I don’t want to get too excited, but Viggle could be the future. And the future is now.

To learn more about Viggle, click here.

You’re Only as Good as THEY Say

We’ve all heard the saying that “You’re only as good as your reputation.” While we all know that to be true on an individual and corporate/company level, but how much do we truly pay attention to it? The answer: not nearly as much as we should. According to a study by Compete.com, the traffic to consumer and user reviews skyrocketed by 158% in 2010 and continues to grow. Additionally, posting and commenting on these sites also increased 91% in 2011 (Wall Street Journal). On top of that, around 70% of consumers consult reviews or ratings before purchasing (BusinessWeek 2008). (Stop, let it all sink in. Ok, proceed…) Not only are more people posting, but more are reading reviews and re-evaluating purchasing decisions. So what does this mean? Several things actually:  The power of consumer influence is shifting to the PEOPLE (instead of traditional advertising), consumers don’t trust what companies say (as you’ll see below), businesses reputations are up for grabs, and progressive steps will need to be taken by marketers to harness this new platform/power and protect those reps.

Wrap your head around these facts*:

-90% of online customers trust recommendations from people they know

-70% trust unknown users

-27% trust so-called “experts”

-14% trust ADVERTISING

-8% trust celebrities

*Erik Qualman, Econsultancy

Based on those numbers, it’s clear to see that companies and advertising are fighting an uphill battle for consumers’ trust. And as we hopefully learned from reading one of my previous articles/entries, TRUST IS KEY. According to another study done by consumer behavior firm Yankelovich, more than 75% of people don’t trust ads. Couple that with the numbers above and it’s pretty easy to see that consumers are no longer as inclined to trust what advertisers say. In a nutshell, when it comes to certain areas of marketing and advertising, what people say matters, not ads.

 The other aspect of frequent posting, viewing, and utilizing of user/consumer reviews is what I like to call the “Amplification Circle of Life and Death” (Copyright pending. Just kidding. But seriously…). Because the digital footprint in this world is nothing short of MASSIVE, consumer-generated information is able to travel much faster and to a far greater amount of people than traditional advertising. Referring to a case done by Deloitte and Touche, 7 out of 10 people who read reviews share them with peers. So think of it as a pyramid: one person reads it, shares it with two friends, who each share it with two friends, etc. etc. and you get the point. Through this amplification process, there is still a great reach (such as in traditional advertising), but it carries more weight due to the trusted source. The “Life and Death” part is determined by what is being said about the company, product, or service. Depending upon the comment/review and its content, it can spell life or death for said target’s reputation on an individual OR mass level.

With the ever-ready Amplification Circle of Life and Death just waiting to be unleashed, it is critical that companies and agencies field special staff to monitor review sites. While any positive opinion or rating is a victory, it’s a minor victory at best; it’s the negative opinions that will stick with the consumers reading the reviews. For those of you reading this that played sports, how easy is it for you to remember you or your teams’ greatest victories? How easy is it for you to remember your toughest defeats? Which are more vivid? Most of you, like me, probably said the defeats. According to Tim Hart, negatives are much easier to remember because they teach us a lesson of what to do or not. He also says, “Impressions and opinions take seconds to develop, but years to change.” This means that a few negative comments or reviews could be detrimental to a product or brand. So how can consumer reviews be utilized to turn negatives into positives? Through a dedicated monitoring staff, feedback loops can be generated to understand what is causing the negative feelings and proactive steps may be taken to correct them. Additionally, staff can post positive comments in order to balance out or outweigh the negative. While the latter option is a little bit shady, let’s be serious, the almighty dollar rules corporate America.

So what is the purpose of my consequent rants? What nuggets of information do I want you to take away from this? Simply that user reviews are increasingly becoming a more significant part of our social media world and, much like Facebook, Twitter, and other platforms, it too needs to be monitored thoroughly. Monitoring feedback loops regarding opinions and feelings about a product, service, or company is crucial. You know the saying, “Caring is sharing”? Well, “Monitoring is protecting”—ok, so it doesn’t have the same ring, but you get the point. Monitoring can help restore the balance to a brand and eliminate troublesome situations. The world of marketing, specifically digitally, is changing rapidly, friends. It’s our job to keep up…

Ad Agencies: A Dying Breed?

A week ago, I came across an article published by Ad Age about how some agencies have dropped off a bit and aren’t necessarily performing up to clients’ standards.  In my opinion, if agencies aren’t so vital to clients anymore, it’s their own fault. However, this has a negative effect on all agencies and the industry as a whole. This got me thinking about a list of “commandments” that I have from a great marketer, Martin MacDonald, and how he would correct this debacle. 

As some of you reading this may or may not know, a few weeks ago was Martin MacDonald’s birthday. Unfortunately, he was taken from us too soon and his loved ones weren’t able to celebrate it with him. For those of you who don’t know, and as those who knew him can attest, Martin was a great marketer and an even greater person. I had the pleasure of meeting and spending some time with him when I was a teen living in Dallas, TX. He worked with my father, Mark Miller, at Rapp, a successful marketing/ad agency. While I will unfortunately never have the chance to work with him, the fact that he has had such an influence on my blossoming marketing career demonstrates how truly impactful his personality and creativity was.

If all of us were to take the approach to marketing and the workplace environment that Martin displays below (whether we’re creative or not) and apply those concepts to both life and marketing, I whole-heartedly believe that agencies would become indispensible and flourish.

(Click to expand image)

I’ve had teachers, executives, and HR managers all tell me this semester how great it is that I have all this energy and passion for marketing and its practices; they attribute it to my youth and my readiness to apply what I’ve learned. While those may be true, what I really hope is that I can maintain that energy and passion throughout my career and that the print-out of Martin’s words-of-wisdom taped to my work station will help to keep me on that track.

Web 2.0: Cut the Clutter

It's kind of strange to think that the bulk of the internet has really only been around for just over fifteen years. During that time, the web has developed into something massive, both on a scale of seemingly endless cyber space and with the sheer magnitude of processed executed over it. By 2007, the average consumer was devoting 23% of his/her media consumption to online channels[i]. As one might expect, that number has since increased. While all of this is fantastic for both consumers and marketers, it does create a problem that has plagued marketers for years: clutter (cue ominous music).

Web 2.0, with all of its P2P, blogs, Wiki pages, Twitter, clouds, avatars, widgets, RSS feeds, video channels, MySpace and Facebook capabilities, has changed marketing and its processes drastically. However, all of these platforms have caused Web 2.0 to walk down a similar, cluttered path as its one-dimensional ancestors: print media, radio, and television. Let’s look at it this way, consumers are besieged with over 5000 advertising messages a day[ii]. Consumers either choose to block out these messages or are completely averse to them. Despite what some people may say (cough cough, the know-it-all kid in my International Marketing class in the 3^rd row), the consumer is smart and is constantly looking to avoid these messages. This means that marketers have to find creative and innovative ways to reach them with their messages. Gone are the days when you could expect people to pay attention to billboards, print ads, and TV commercials. Online, it’s becoming the exact same way: “Banner blindness” has caused the number of people who clicked on the ad to fall from its high of .75% in 2006 to below .18%[iii]. Additionally, users are becoming more and more frustrated with mandatory ads, such as pre-roll advertisements on YouTube. It doesn’t matter the size of your budget or the frequency with which you bombard the market with your messages; what matters is engaging the audience. Otherwise, all you’re doing is spending a lot of money to have messages fall on deaf ears and blind eyes.

Furthermore, consumers don’t care about what companies say about their product, they care about what their peers are saying about it. People pay much more attention to “Likes” and Tweets from friends than what’s in a commercial slot. With e-commerce, people look at ratings and recommendations instead taking the manufacturer’s word for it. The best organizations are the ones who have figured out effective ways to hone in on this data and measure it. Those are the companies that understand their consumer and what it takes to reach them. Domino’s (I know, this is like the 3^rd Domino’s reference in the last 4 blogs, sorry) has done a fantastic job of locking on to peer evaluations of their products and taking progressive steps from there. But how does a company or agency ensure that their ads are in the miniscule 1-3% of advertising messages that are actually remembered? [iv] Interaction and engagement. It sounds so simple, but that’s because it is. That’s what makes Web 2.0 so revolutionary, unlike other media, it provides the opportunity for marketers and companies to actually establish direct communication with the market on a mass scale. In order to be successful, companies need to take advantage of it.

 Let’s take a look at Nike and what they did with its soccer division. It created a campaign, known as The Chance, where Nike took submissions from amateur players all over the world and selected the best to receive a chance for trial periods with professional soccer clubs across the world. Nike bludgeoned its website, Facebook, and Twitter mediums, as any company would and should do, but then they went a little off the beaten path by developing a phone app, YouTube series, and got the consumers involved directly. Each of these facets allowed the masses to follow their favorite player and actually interact with them throughout the process. Additionally, Nike did a fantastic job of interacting with followers through social media regarding voting sessions about favorite players, drills the players would participate in, and other interactive applications. This allowed people to feel as if they were part of the process and had an influence on it. On a similar note, why is American Idol so successful? Because the people’s vote counts for something and people believe they have an influence on the outcome. Same principle here with The Chance. Nike was able to effectively break through media clutter and utilize different mediums to interact with the market, generate buzz, and get their message across.

How Nike "Writes the future"...

Media clutter has, and probably always will be a problem for marketers, no matter what format is used. What is important is determining ways to avoid that traffic and to be able to get the message through to consumers without getting lost in the muck. Some of the most effective ways to do that are: using mediums in an innovative fashion, engaging the market, and giving them a chance to participate. Things have been changing since the introduction of Web 2.0, and I couldn’t begin to tell you where we’ll be in the next fifteen years as marketers or consumers. But as Madonna so nearly sang 20+ years ago, “We are living in a digital world, and I am just a digital girl” (Get it? It’s a spin-off of her song “Material Girl”. Get it? Nevermind…)

[v] [vi]

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[i] Steenburgh, Thomas, and Jill Avery. "UnME Jeans: Branding Web 2.0." Harvard Business School 035th ser. 9.509 (2008): 1-13. Print.

[ii] Ingram, ByMathew. "Marketers Losing Amid Social Media Clutter - BusinessWeek." Businessweek - Business News, Stock Market & Financial Advice. Web. 05 Nov. 2011. http://www.businessweek.com/technology/content/oct2010/tc2010105_764897.htm.

[iii] Steenburgh, Thomas, and Jill Avery. "UnME Jeans: Branding Web 2.0." Harvard Business School 035th ser. 9.509 (2008): 1-13. Print.

[iv] Steenburgh, Thomas, and Jill Avery. "UnME Jeans: Branding Web 2.0." Harvard Business School 035th ser. 9.509 (2008): 1-13. Print.

[v] Ingram, ByMathew. "Marketers Losing Amid Social Media Clutter - BusinessWeek." Businessweek - Business News, Stock Market & Financial Advice. Web. 05 Nov. 2011. http://www.businessweek.com/technology/content/oct2010/tc2010105_764897.htm.

[vi] "About The Chance." Nike - Please Choose Your Nike Region. Nike. Web. 05 Nov. 2011. http://www.nike.com/nikefootball/write-the-future/about?locale=en_US.

For the People, By the--Potato Chip?

Usually when one thinks of the negative aspects of junk food, the potato chip is one of the main culprits. However, instead of casting scowls of disappointment and disgust at this innocent little fried spud, we need to take the time to recognize that it has been going through a bit of a progressive makeover during the past decade. The potato chip and other salty snack foods are going through a transformation, thanks to Frito Lay. Yes, that same Frito Lay that was referred to as greasy in those old Pringles commercials (http://www.youtube.com/watch?v=zUEB3dKdBtU).  Frito Lay has been on the front lines of changing the perception and composition of the potato chip and other snacks, by making them healthier and tastier for the consumer.

Frito Lay prides itself on doing right by and for people. Its promise on the Frito Lay website states: “It’s the belief that we can all benefit from doing good. From supporting local farmers, to investing in sustainability efforts, to going the extra mile to use the highest quality ingredients, we think the small steps we take today can make a big difference tomorrow.”[i] Through recent product changes and marketing efforts, Frito Lay’s progressive change has people taking notice of its attitudes and beliefs. Various business-oriented publications and consumers have Pepsi Co, Frito Lay’s corporate parent, rated as one of the most proactive in focusing on products that benefit the consumer, while also aiding the environment.

As you may have read from my previous blog entry about Domino’s Pizza, I truly appreciate major companies that listen to their consumers and do everything in their power to make a better product. Frito Lay is another one of those companies. The potato chip and snack giant has focused on eliminating artificial ingredients, improving taste and reducing fat to create a better tasting, yet healthier product.

Let’s be serious, America is full of overweight people. I’m not proud of it, but it’s a fact; we’re a fat country. According to a Deloitte survey, 31% of respondents said that “over-processed food” was among their top concerns about food[ii]. Frito Lay has input and begun execution on a plan to eliminate artificial ingredients from its products. Currently, over fifty percent of Frito Lay products are all-natural; this meaning they are made from corn or potatoes, healthier natural oils, natural spices and seasonings and nothing artificial. Furthermore, it has even started offering gluten-free options for a variety of their chips. For those of you wondering what “gluten” is, feel free to learn about it and every single ingredient in Frito Lay products on its website (http://www.fritolay.com/your-health/explaining-ingredients.html). Here’s another “fun fact of the day”, compliments of yet another Deloitte survey, 55% of consumers understand less than half of the ingredients in the food they eat[iii]. The fact that Frito Lay not only lists the ingredients in its products, but also explains how they pertain to the food and the consumer, demonstrates that it’s hiding nothing and is proud of its products—Psst, that’s a good sign for us[iv]. Plus, all of this is a win-win for Frito Lay and consumers: by making the snacks healthier, consumers won't feel so guilty for eating them, so they'll eat more. While on the other hand, Frito Lay profits from the increased consumption. I like to call it "Guilt-free snacking".

UPDATE (8/10/2011): Monday, I had the pleasure of speaking with Cheryl Cerminara, VP of Talent for Frito Lay, who is very engaging and informative woman. I learned about some of the processes that Frito Lay uses to ensure healthiness of its products. One in particular focuses on salt/sodium levels and the manipulation of salt crystals so that the salty flavor remains, but that the sodium in a couple slices of bread from a sandwich would be greater than in some of Frito Lay’s chips. Very cool. Thanks Ms. Cerminara.

Next, on to that place that we call home—Earth. Frito Lay is also taking progressive action to preserve this rock for future generations through the utilization of its sustainability program. Frito Lay’s motto regarding the planet and environment is: “In order to make the best snacks on earth, we need to protect the earth. So we’ve committed to making sustainable products…[v]” Whether it’s using solar power to help make Sun Chips, recycling water to grow ingredients, minimizing waste or reducing greenhouse gases and emissions, Frito Lay is dedicated to improving the environment and the processes used to create these delicious snacks.  Sun Chips even switched over to a compostable bag[vi]. For those of you playing at home, it means it’s essentially biodegradable and after a certain period of time, you won’t see it lying by the side of a highway. Pretty cool, huh?

As much as I love Chester the Cheetah, Cheeto’s mascot, Frito Lay should think about changing their mascot to one of my favorite childhood superheroes—one that happens to get overlooked more than he should—Captain Planet*. All kidding aside, it’s fantastic to see an industry leader taking proactive steps that not only benefits the people that consume them but also the environment that produces them.

*Frito Lay, I wasn’t kidding about Captain Planet, seriously consider it…

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[i] "Our Promise : | Frito-Lay." Smart Snacking Products & Healthy Choices by Frito-Lay: Healthy Choices, Fun Snacks, Kids Snacks.. N.p., n.d. Web. 1 Aug. 2011. http://www.fritolay.com/about-us/our-promise.html.

[ii] Warner, Melanie. "Why Frito-Lay’s Move Towards “Clean Labels” Is Smart Marketing." Citzens.org. N.p., 4 June 2010. Web. 1 Aug. 2011. http://www.citizens.org/?p=2238.

[iii] Warner, Melanie. "Why Frito-Lay’s Move Towards “Clean Labels” Is Smart Marketing." Citzens.org. N.p., 4 June 2010. Web. 1 Aug. 2011. http://www.citizens.org/?p=2238.

[iv] "Explaining Ingredients | Frito-Lay." Smart Snacking Products & Healthy Choices by Frito-Lay: Healthy Choices, Fun Snacks, Kids Snacks. N.p., n.d. Web. 1 Aug. 2011. http://www.fritolay.com/your-health/explaining-ingredients.html.

[v] "Sustainability of our Environment through Emissions Reduction, Energy Conservation, Water Conservation & Waste Recycling | Frito-Lay." Smart Snacking Products & Healthy Choices by Frito-Lay: Healthy Choices, Fun Snacks, Kids Snacks. N.p., n.d. Web. 1 Aug. 2011. http://www.fritolay.com/our-planet.html.

[vi] Wills, Amanda. "New Sun Chips Bag is Less Noisy, Still Compostable - Earth911.com." Earth911.com - Find Recycling Centers and Learn How To Recycle. N.p., n.d. Web. 1 Aug. 2011. http://earth911.com/news/2011/02/24/new-sunchips-bag-is-less-noisy-still-compostable/.

Tale of the Tape: Terrapin vs Sweetwater

             We are gathered here as witnesses of a clash between two titans of the small brewery industry, heavyweights of hops, behemoths of barley, mammoths of malt…you get the idea. Finally the debate between which of these two juggernauts has the best brewery and visiting experience will be settled. Separated by 64.9 miles (thanks Google Maps), these rivals are constantly waging war over Georgia and Southern beer drinkers’ delights.

(Insert 50’s era ring announcer voice here) “From the blue corner, with a total medal count of twenty-two, and 15 years in existence, fighting out of Atlanta, Georgia—Sweetwateeeeeer Brewing Company-ny-ny (sorry, I had to for dramatic effect). And its opponent, from the red corner, with a total medal count of twenty-one, and 10 years in existence, fighting out of Athens, Georgia—Teeeeerrrrrapin Beeeeeer Company (it was actually kind of fun that time).”

“Alright breweries, I want a good clean fight; no cheap shots, no hitting below the label, if at any time one of you is knocked down, the other will return to his corner until I give the signal for the fight to restart. At the sound of the bell, come out and clink bottles. Alright? Alright? Good, now let’s get it on!”

 Now before we get this slugfest underway, I feel it’s important to explain the story behind this blog entry:

This past May/June I took a marketing research class, which was phenomenal by the way (BIG ups to Prof. Norvell), and my team’s final project was a presentation of the findings and suggestions based off of our qualitative and quantitative research done during the class. Our topic and company of interest was Terrapin Beer Co. However, since we were trying to disguise bias throughout the survey and in-depth interview process, we sprinkled in other smaller breweries, such as: Sweetwater, New Belgium, Magic Hat, Full Sail, etc. After screening, we interviewed and surveyed around 70 people based primarily in Athens or Atlanta, aged 21-29, fairly balanced distribution by sex (~62% men, ~38% women), and had been to both breweries. In our final survey, we did a comparison between Terrapin and Sweetwater based on the most important components of a brewery and visit (determined from previous consumer surveys that we conducted): Price, facilities, seating/seating area, atmosphere, tour, variety/offerings of beer, and taste. Through the use of Top Box vs. Bottom Two Box scores [for those not familiar w/ this technique, it compares the number of times people chose the highest possible satisfactions (ex. 5 on a scale of 1-5, 5 being the highest) against the number of times people chose the lowest two possible satisfactions (ex. 1 or 2 in this case)], Pearson Correlations, and confidence intervals, we were able to analyze the most important factors and their relation to overall satisfaction. Here is what we found…

(As much as I’d love to literally script and write out a fight between two personified beers, I actually have more important things to do, like school work and work for my internship, so this will be a Reader’s Digest version)

(Ding ding)

“And we’re underway here in tonight’s main event. Terrapin looks loose and energetic, while the more experienced Sweetwater is poised to outsmart this pup.”

(The lads at Terrapin)(Me, Julia, and Sean at Sweetwater)

Round 1: Price/Bang for your buck

Both breweries are pretty cheap, Terrapin is $10 for 8 tickets and Sweetwater is $8 for 6 tickets, and each price of admission is accompanied by a pint glass you get to keep. But where this round differentiates is in the pour; Terrapin will give you around 1/3 of a glass for each ticket, while Sweetwater tends to give you a little more, just shy of 1/2 a pint. EDGE: Sweetwater

Round 2: Facilities

Based on the results, it was a lot closer than expected. I thought Sweetwater would run away with this one, but they only just comfortably nudged out Terrapin. Sweetwater’s facilities are nice: wood bar, wood-floored inside, fully bricked outdoor area and patio, a big flat screen TV indoors, the works. While Terrapin is larger and has more room, it is certainly not as well—decorated; it’s got cement floors inside, a large backyard, a very strong scent of malt, barley, etc. (it is a brewery after all), and its restrooms aren’t as clean or fancy. EDGE: Sweetwater

Round 3: Seating/Seating Area

This one was a complete landslide. Sweetwater has a small, small seating area inside: few seats at the bar and 4-5 tables with two chairs each, and zero seating outside except for one picnic table. Terrapin boasts tables indoors, long and circular tables outdoors, and about one hundred extra seats and chairs to do with as you please. EDGE: Terrapin

Round 4: Atmosphere

Sweetwater has a great outdoor patio/deck area, but what may have hurt them in this category is the lack of size and space available. No one likes the feeling of being all cramped together. On the other hand, Terrapin has tons of space both indoors and out; they provide corn-hole boards for patrons, and have live music playing outdoors on most occasions. Also, you can unleash your dog here to let him/her frolic and play with other canines, unlike Sweetwater. EDGE: Terrapin

Round 5: Tour

For starters, Sweetwater’s tour is separated from its bar area, which helps cut down on the pungent brewery smell, and gives you a pretty good feel for the brewery and most of its aspects. The tour takes you on a walk by the distillers, mashers, etc., to the bottling area, onto the packaging sector, and you finish up in the storage fridge where there are cases of beer all around you (aka. Heaven). The tour guides are also very engaging, funny, and I’ve never had the same one twice, which allows for each guide to put their own spin and style on it. At Terrapin, the tour, if you could call it that, simply walks you to in front of the distillers where you will be spoken to and given a history of the company and then that’s about it. Personally, I have taken the tour four times and had the same woman give me the tour each time. What’s that saying, “Variety is the spice of life?”….EDGE: Sweetwater

Round 6: Variety/Offering of Beers

Fairly close, almost a draw. Both Sweetwater and Terrapin offer a good selection of beers on tap at the breweries. Furthermore, they also do a fine job of cycling the lineup fairly often, with the exceptions of their cornerstone beers. However, Terrapin just pipped Sweetwater at the finish. While not 100% sure of the reasoning behind it, I believe it’s because Terrapin more regularly cycles their beers and also pulls out their infamous “Side Projects” as options on a fairly regular basis. EDGE: Terrapin

Round 7: Taste

All tied up going into what may be or seem like the most important round and category to most beer drinkers. Not a surprise to me though, but maybe that’s because I’ve analyzed the research and knew it already. Both have their signature and cornerstone brews, Terrapin has Rye Pale Ale and Golden Ale and Sweetwater has Sweetwater Blue and Sweetwater 420, along with seasonal and other assortments. All taste great, too. Personally, I don’t have a super refined palate complete with two thousand papillae per square centimeter on my tongue, so I don’t really tell that large of difference when comparing similar brews from each. However, the people have spoken and, by a narrow margin, have selected Sweetwater. EDGE: Sweetwater

“Final seconds of the fight! These two middleweights are slugging it out at the center of the ring! Standing toe-to-toe, trading blow after blow after blow! (Ding, Ding, Ding) The two breweries embrace, each raising their arms as if they’ve believe they’ve won. This one is going to the judges!”

“The judges have scored this fight 3-4, 3-4, 3-4—in a unanimous decision—for the NEW champion of small breweries in Georgia—Teeeeeerrrrapin Beeeeer Companyyyy!”

            Now hold up, before you go getting on me and questioning my math skills or if I know how to count, let me explain the reasoning behind this. Immediately you’re thinking “What the hell?! Sweetwater had 4 pts, Terrapin had 3 pts, it’s plain to see that Sweetwater won.” Ahhh, but there is a little something called weighting and correlation my friends. While Sweetwater did win more rounds/categories, they didn’t win the ones that mattered most. According to our research and analytics, such as Pearson correlation, the categories that most factored in to overall satisfaction were: facilities (won by Sweetwater), atmosphere (won by Terrapin), seating (won by Terrapin), variety (won by Terrapin, narrowly) and price (won by Sweetwater, but was essentially a coin flip, so we’ll call that a wash).

            I know, I was shocked by some of those factors, particularly facilities and seating, but the fancy and expensive analytic software that our professor ran the numbers through and helped us analyze don’t lie. This goes to show how important it is to understand your target market, their opinions and feelings on the various aspects that encompass one’s attitude toward a product and company, and to do complete and thorough research to back it up. In the early stages of our research, my team and I asked what the main purpose of going to the brewery was; the response “to be with friends and/or family” was the overwhelming majority, followed by “to drink beer”, of course. Maybe it all goes back to what I was saying in my previous blog entry, by being able to create an atmosphere and experience that is bonded and linked with a company and its product, you’ve just been able to connect that consumer to you emotionally. Through its atmosphere, enough seating for you and all of your friends/family, and great variety, I hereby proclaim Terrapin the victor and king of Georgia small breweries. At least for now…