Presently, organizations are expanding their horizons when it comes to marketing their products. In this case, they are trying to be more innovative for purposes of coming up with new markets instead of competing in the already existing markets. This is where they are using grabber-holder dynamics strategy to take advantage of the new markets. An excellent example of a company that has been applying the grabber holder dynamics since its inception is Bolton Beer Company. Therefore, to understand the concept of grabber-holder dynamics, a proper analysis of the case study of Boston Beer Company is necessary using WalMart, another company using grabber-holder dynamics strategy.
Boston Beer Company was founded by Jim Koch in 1984 using the brand name Sam Adams. During this time, a leading beer company, Anheuser-Bush InBev was already making a name in the American market. Additionally, consumers were familiar and confident with Anheuser-Bush InBev. Therefore, it was extremely difficult for a company like Boston Beer Company to make it in the American beer market. However, due to the application of grabber-holder dynamics strategy, Jim Koch was able to create Boston Beer Company and produce impressive results after twenty-eight years of creation.
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According to the grabber-holder dynamics, a company must have a grabber where they attract customers’ emotions so that they can become interested in their products. Secondly, the company must have a holder. This is where the company has to create infrastructures or process that will ensure the grabbed consumers will realize the value of the products. Therefore, Jim Koch took the family business to a higher notch by first legalizing the business and providing consumers with what they have been missing. This does not mean te other breweries were not providing their customers with the best, but it means they were lacking something in brewing their beers.
Anheuser-Bush, Boston Beer Company competitor, was brewing modern beers to attract the upcoming market in America. In this case, they were successfully controlling the American market. However, using the traditional recipe, Jim Koch new that Americans were missing the traditional craft brewed beers. According to chemistry, the longer the beer stays the better it becomes in value and quality. This means that Koch was providing American consumers with that traditional quality to refresh their roots. In order to create strong brand recognition, he was using the name Sam Adams, who was a renowned brewer in the early history. This way, Koch was able to grab the attention and the emotions of the consumers. Therefore, Koch created a grabber.
Similarly, in WalMart, Sam Walton did the same by attracting the emotions and attention of his consumers by providing the slogan “Shop for less every day.” In 1955, many departmental stores had a lot of capital and power to open large stores to cater for the needs of a whole city. In their strategies, these stores were looking at the big picture instead of catering for the needs of the small groups. This is exactly what Anheuser-Bush was doing. They were grabbing the emotions of the large upcoming market by brewing modern beers. It was because of this that Sam Adams realized there was an opening in the traditional craft beers. Moreover, he had an advantage because he had a traditional recipe from his father. The only problem was that he did not have the capital to create a giant company.
According to grabber holder dynamics strategy, two competing companies do not use similar slogans in the same market; instead, one company creates a new market that has not yet been explored by the beginning company. This is the main advantage of latecomers whoo are entering the market. This is because they have the advantage of conducting an extensive research on the market and create strategies the other company is failing to provide their consumers.
After creating a strong grabber, Jim Koch had to provide a strong holder so that he could impressively stay in the market despite the challenges. In this case, Jim Koch found it necessary to create contracts with other brewing companies for purposes of making Sam Adams beers since he did not have the capital. After its inception, the consumers were able to appreciate and understand the value of Sam Adams beers. As a result, Boston Beer Company was able to create loyal customers who were spreading the word about their beers to other consumers. The result was the growth of Boston Beer Company. It is clear that latecomers tend to attract two different consumers when they are creating a grabber.
The first consumers are those who are eager to try the new commodity while the second consumers are those who wait to hear from others on whether the product has value or not. Similar to WalMart, Boston Beer Company impressively attracted the first consumers and due to their excellent product quality, the first consumers spread the word to the second consumers. As a result, Boston Beer Company is the leading American beer-making company winning more beer-tasting competitions in the last five years than any other beer company in its lifetime.
Therefore, according to the above analysis, Boston Beer Company should continue creating a strong holder to maintain their grabber. In addition, Boston Beer Company should not try to create strong grabbers in the future that they cannot be able to manage. Therefore, Boston Beer Company should create new breweries as holders to cater for the growing market and maintain their prices.