Miller v. Bud
Target for Lite (1970): 21-34 year old males with blue-collar occupations, who were the heavy users of the beer category
Insight for Lite (1970): Heavy users of beer (from the above demographic segment) prefer a beer that they can enjoy more of while not compromising on the taste.
Position for Lite (1970): Great tasting beer that had fewer calories and doesn’t fill you up
Promotion strategy (1970): Advertising on television during sports programming with ex-athletes and other beer-drinking personalities as spokespeople.
The sales for Lite were impressive but it found that majority of its consumers were moderate drinking, 25-44 year old, upscale professionals. However, Lite was successful because its value proposition of the beer being ‘light’ appealed to this older, upscale demographic than their intended target because they interpreted the message as an opportunity to drink without getting slowed down mentally or physically. Also, their choice of media, i.e., advertising during sports shows, reached this segment equally well.
In 1982, AB launched Bud Light, which was extremely successful because (1) firstly, it was targeted at the core users of light beer i.e. 25-44 year old upscale professionals. Lite on the other hand had chosen to stay off-strategy and continue their old campaign targeting 21-34 year old males with blue-collar occupations. (2) Secondly, it positioned itself as the light beer with superior quality for this target or upscale professionals. Budweiser’s brand equity of being a superior beer and the Clydesdale spot served to reinforce their positioning.
However, since Bud Light failed to achieve a considerable share of out-of-home market, Lite retained its leadership position and over 50% share of light category (Bud Light was close to 20%). Bud Light’s response was the 1984 successful marketing campaign showed upscale people asking for Bud Light at fancy bars, thus making it a preferred beer even out-of-home.
By 1987, the
Insight for Lite (1970): Heavy users of beer (from the above demographic segment) prefer a beer that they can enjoy more of while not compromising on the taste.
Position for Lite (1970): Great tasting beer that had fewer calories and doesn’t fill you up
Promotion strategy (1970): Advertising on television during sports programming with ex-athletes and other beer-drinking personalities as spokespeople.
The sales for Lite were impressive but it found that majority of its consumers were moderate drinking, 25-44 year old, upscale professionals. However, Lite was successful because its value proposition of the beer being ‘light’ appealed to this older, upscale demographic than their intended target because they interpreted the message as an opportunity to drink without getting slowed down mentally or physically. Also, their choice of media, i.e., advertising during sports shows, reached this segment equally well.
In 1982, AB launched Bud Light, which was extremely successful because (1) firstly, it was targeted at the core users of light beer i.e. 25-44 year old upscale professionals. Lite on the other hand had chosen to stay off-strategy and continue their old campaign targeting 21-34 year old males with blue-collar occupations. (2) Secondly, it positioned itself as the light beer with superior quality for this target or upscale professionals. Budweiser’s brand equity of being a superior beer and the Clydesdale spot served to reinforce their positioning.
However, since Bud Light failed to achieve a considerable share of out-of-home market, Lite retained its leadership position and over 50% share of light category (Bud Light was close to 20%). Bud Light’s response was the 1984 successful marketing campaign showed upscale people asking for Bud Light at fancy bars, thus making it a preferred beer even out-of-home.
By 1987, the