The problem with Labatt Blue is it does not appeal to the young drinkers of today’s generation and these young drinkers take up a large majority of the beer drinking sector. For example, ten years ago one would see their parents drinking newer brands that come after Labatt Blue and could have influenced present young drinkers to drink that brand. Although Labatt Blue is still sold in most liquor stores, it will most likely be overlooked by people because of how unfamiliar it is to the current drinking population. The only reason, in my opinion, Labatt still exists is because of the over-40 group that grew up with the brand and still see it as a delicious beer in their books. Labatt Blue needs to step up their game and find a way to appeal to those younger crowds if they want to stick around to see another decade.
Situation Analysis (SWOT)
Strengths
There are competing beers that are marketed worse than Labatt Blue
Blue was the first brand in Canada with a twist-off cap
Labatt Blue is Canada’s best selling beer
Weaknesses
Blue has lost a significant amount of market share
Weak in international markets
Is not the leading marketing mix chosen by the owner
Opportunities
Blue has the advantage of being an older brand that was once very popular and could make a comeback with any new product
Since Blue was big for older crowds it could still use those older people to influence younger drinkers to choose Labatt Blue over other beer brands
A simple slogan could shed light on Labatt and make it popular amongst young crowds
Have established clientele in Quebec and this is an valuable market
Threats
Other larger brands have dominated the market
Other smaller brands like Moosehead are becoming more popular
Labatt Blue’s market share is still very low
Alternative Solutions
1) One way Labatt Blue could resolve their problem is by speaking with their marketers to find a way to steal demand from other competitors.