Author: Chen Weiming

After obtaining Harvard law and MBA degrees, Jim Koch, the founder of Boston Beer Company, joined the Boston Consulting Group (BCG). A few years later, Koch, who was tired of the business world, quit his job, took his great-great-grandfather's recipe to his home kitchen, and brewed the first batch of Samuel Adams beer. As of today, Boston Beer's market value has grown to US$2 billion.

Innovation: Only by doing what you like can you be more creative. Jim Koch combines the rich taste of imported beer with the fresh quality of local beer to create a new "craft" beer.

1. Leverage the flexibility of small businesses and target niche markets with vacancies

In the 1990s, the beer market in the United States was like the unexplored West, with only two options on the bar shelves : Local commercial beers and imported beers from Europe.

In order to cater to the appetite of most consumers, major local breweries choose to produce bland popular tastes; coupled with cost considerations, the brewing procedures and materials are also based on the principles of speed and simplicity to "make" beer. Lack of distinctive features.

On the other hand, although imported beer is rich in flavor, the harsh storage environment during its journey across the ocean from Europe has already caused the beer to lose all its flavor, making it unable to bring a pleasant taste experience.

Therefore, in the face of huge competitors in the market, Koch chose to target the gap between local and imported beers and provide another option that takes into account both flavor and quality: brewed with a variety of raw materials Not losing the flavor of imported beer, combined with the advantages of localization to ensure the freshness of beer, and using the intertwined "craft beer" to open up a new blue ocean market.

Breaking away from the burden of big companies, Koch plunged into the world of brewing based on his love for beer with 240,000 US dollars raised from relatives and friends, even though he had an extreme lack of knowledge about brewing.

2. Helping customers achieve their goals is the guarantee of sales success

With the shining signs of Harvard MBA and Boston Consulting Group, Koch didn’t even have basic sales channels and employee compensation at the beginning. They don’t understand the system, and they don’t know how to design a trademark and promote their own beer. I had to start everything from scratch and explore slowly.

After a period of trying, Koch finally brewed the first batch of Samuel Adams craft beer. He happily immediately drove his truck to nearby bars to promote his products. Unfortunately, all the bar owners gave the former shopping mall elite a hard time.

Prior to this, all brewers had only one marketing strategy: spending a large budget on advertising to attract consumers to buy their own beer. No one ever cares what ingredients are used in the beer on their hands? How is it brewed? How is it different from other brands? Only a few "well-known" beers will appear on the wine rack.

"Although failure is frustrating, you still have to cheer up and try again and learn from the failure." So Koch thought about it for a few days, and then took his entrepreneurial partners and a few A bottle of cold Samuel Adams beer entered the bar, and he poured a few glasses for everyone present to try.

"Once people take their first sip of craft beer and feel the huge difference for themselves, they can't go back." Koch recalled the scene that day with a smile: the bar owners happily chatted with Koch Several orders were signed, and customers were asking where else they could buy craft beer.

Koch now understood, "The purpose of sales is to help customers achieve their goals, not your own." The bar owner wanted to know if craft beer can attract more customers? The bartender wants to know if recommending craft beer will spoil his taste? Customers want to know if craft beer tastes better? After trying Samuel Adams beer, the answers to all kinds of questions naturally emerged.

Grasping what customers really care about and proposing targeted solutions is the secret to successful sales.

After successfully selling the first case of beer, Koch wanted to know more: How to expand the scale next and let more people know how great craft beer is?

3. Create a craft brewing culture from the inside out and let creativity sprout in every corner

Koch believes that only by allowing employees to recognize from the bottom of their hearts that they are indispensable to the craft brewing process By being a part of the industry and allowing consumers to understand the story behind each cup of beer, the budding craft beer can take root in the soil of culture and grow and thrive, instead of being a fad that disappears in an instant like a meteor.

Internally, a set of brewing equipment is assigned to each Boston Beer employee, and they are encouraged to use their personal creativity at home to brew their own, unique beer to participate in the annual internal selection. The best recipe of the year will be made into a beer named after the employee and sold throughout the United States.

Interestingly, most of the champions come from sales, customer service and other departments rather than the brewing department - when a company creates a culture that encourages innovation, every member is likely to come up with amazing ideas.

Externally, the only sales Koch did in the early days were broadcasts on local radio stations. In each episode, Koch and the host drink beer and introduce some little knowledge about craft beer to the audience, such as the impact of hop types on the taste, the differences in beer culture between countries, etc. In addition to enjoying beer, consumers can also deepen their understanding of craft beer through these short stories.

Over the years, consumers’ acceptance of craft beer has gradually increased, and small breweries featuring local flavors have emerged in many regions. Koch's efforts began to bear fruit, but Boston Beer's progress continued.

4. There is no end to progress and no limit to quality

Before 1988, the bottling date of beer was printed on the bottle label in a coding method unique to each manufacturer for retail purposes. Check the shelf life with the dealer. However, complicated labels make it difficult for consumers to confirm the freshness of beer, and they often buy expired beer that has begun to spoil.

Caption: Traditional shelf life coding (left), new coding (right)

Koch believes that if we continue to follow the tradition, the same situation will happen again and again, giving consumers a bad experience. It’s enough to damage the foundation that the entire craft beer industry has worked so hard to build. Therefore, Boston Beer decided to break away from tradition and clearly mark the tasting period of its own products on the bottle in an easy-to-understand format of year, month and day, ensuring that every bottle of beer consumers buy home is as fresh and full of flavor as if it had just left the factory. .

In addition, Koch also observed that it is difficult for beer glasses on the market to maintain a cold temperature, and the aroma and taste will be lost as the temperature rises. So he began to think about how to solve this problem and extend the good time after the beer is opened.

With the help of several experts in taste science, Boston Beer has launched a special cup designed specifically for beer: the rim is rolled outward so that the entrance of the beer is placed appropriately on the tip of the tongue where the sweet taste is felt. The thickness of the cup wall can isolate the temperature of the palm, and the notches on the bottom of the cup allow the bubbles to be released slowly, bringing out more aroma.

Caption: "Samuel Adams Perfect Pint Glass" specially designed for drinking beer

From the moment the beer is bottled to the moment the consumer drinks the beer, no detail is spared. Koch's insistence on quality has allowed Boston Beer to grow rapidly.

5. "Recruit slowly and fire quickly." It is better to have fewer talents than too many.

In terms of talent selection, Koch's standards are as strict as the quality requirements of beer. There was a sales position that was vacant for a year and a half, just waiting for the best candidate.

When he comes to Boston Beer for an interview, Koch will spend a whole day letting the job seeker understand the realities of the job. Taking a salesperson as an example, Koch will take candidates to actually experience a day of sales life: carrying boxes after boxes of beer onto trucks, selling their own beer to strange bars, and checking the shelf life of each barrel of beer in a stuffy basement. etc.

During the process, the employer can observe whether the applicant is qualified for the job, and the job seeker can also understand the reality of the job he is applying for, avoiding misunderstandings caused by different perceptions.

What’s even more rare is that Koch was born in an Ivy League school and worked at the Boston Consulting Group. Koch does not have the myth of elites when selecting employees. It is more important to select "traits" than "academic qualifications."

Take entrepreneurial partner Rhonda Kallman as an example – Kallman was Koch’s secretary when he worked at the Boston Consulting Group. She had no prominent academic experience, but was a key figure in Boston Beer’s ability to gain a foothold in the early stages of the business.

Koch recalled that the outgoing and lively Kallman could always get along easily with bar owners, waiters and customers; his experience as a part-time bartender also allowed Kallman to clearly understand the real needs of customers. After establishing initial trust, customers began to be willing to try Samuel Adams beer, which was completely unknown at the time, and subsequent sales could proceed smoothly.

According to Koch's standards: "We only recruit those who can improve the average level." The company devotes its efforts to finding the best talent, putting him in the right position, and letting him do what he is good at; as an employee , you should also check your status from time to time. Are you staying in the right position? Do the right thing?

6. The yeast philosophy of "sharing blessings and sharing hardships"

In 2008, a poor harvest of the key raw material hops caused a supply shortage. Boston Beer signed a futures contract early. And maintain sufficient supply of raw materials to avoid production shutdowns. However, many small breweries cannot afford the soaring raw material prices and face the dilemma of insufficient production and difficulty in capital turnover.

In this critical moment, Koch generously resold some of its hops at cost price to other waiting small breweries, allowing them to tide over the crisis and allowing today's craft beer market to maintain a variety of choices. .

In addition to sharing difficulties, Boston Beer Company also adheres to the principle of "sharing blessings" and generously shares the research and development results they have invested a lot of time and money in: including patented beer cups, brewing technology, etc. As long as qualified brewing-related industries apply, they can be authorized to produce beer or brewing equipment.

After his business was on track, Koch began to think about how to fulfill corporate social responsibility. "In the early days of founding the Boston Beer Company, what assistance did he need most?"

The answer quickly emerged: "funding" and "advice."

Thus, the Brewing the American Dream (BTAD) project was born. We provide small loans and entrepreneurial consulting services to those who want to start a business in the catering or tourism fields, solving the problems of insufficient funds in the early stages of a new start-up company, or the troubles of not knowing how to solve problems.

Since its inception in 2008, the "Brewing the American Dream" program has completed 1,200 loans totaling US$15 million;*** 7,000 small business owners have received counseling and the average repayment rate exceeds 9 It only takes 2 or 3 years to recover the funds, which is a very outstanding result.

Why should we support and even cultivate possible "competitors"?

Koch used the metaphor of the beer fermentation process: "When all yeasts remain healthy and work together to brew beer, the taste is the best. Once some yeasts lose their vitality, it will also worsen the environment. All the partners died together, and the whole barrel of beer was ruined." In an interview, Koch was asked how to plan his career development. His answer was: "Find something that makes you happy and meaningful, and then make it better or cheaper than others. But for me, pursuing "better" is more interesting and more creative There is room for development."

At the same time, Koch also reminded entrepreneurs who started from scratch: "Starting a small business from scratch will consume all your time and energy and occupy a period of time in your entire life. Therefore, it is best to Invest in the field that makes you happy. If you start a business just for the pursuit of wealth, you will probably lose yourself.”

Finally, enjoy a glass of cold craft beer on a hot summer day and enjoy Jim Koch together. business wisdom.