Swot Analysis Labatt Blue
CASE STUDY
LABATT BLUE
Problem:
Over the last number of years Labatt Blue has lost a significant amount of market share. How does Labatt Blue reestablish itself as Canada’s leading brand of beer?
SWOT Analysis:
Strengths
* History of memorable campaigns. “A whole lot can happen, Out of the Blue” is an example, with titles such as “Streetcar” and “Road Trip” as equally engaging ads.
* In-case promotions, giveaways, loyalty programs.
During the summer months Blue (and many competitors) are known for running promotions, which are the tactical activities used to stimulate purchases.
* Supportive of various events (CFL, NHL, etc)
The brand is the title sponsor, which gives them signage in the stadium, and national exposure …show more content…
during the televised games.
* Title sponsor of Winnipeg Blue Bombers
Since 1951, built strong customer relations, loyalty.
* Sensitivity to francophone culture
Blue is sold in all provinces, but has adapted to culture in Quebec by altering the name to Labatt Bleue and the logo to a red fleur-de-lis instead of the red maple leaf.
* Rich history as a former market leader
Branding ties product differentiation and consumption closely together. Creating an attracting image to draw in specific target markets was the main battle between Blue and Canadian to be market leaders.
Weaknesses
* Weak in international markets
InBev decided to focus on other brands that they could market internationally, Blue wasn’t in that mix.
* Dropped to fourth in national rankings (2007)
Fell behind American brand beers such as Budweiser due to changes in the company’s direction of advertising spending, away from Blue.
Ex: In 2003-2006, spending was at $7million/yr for Blue; Budweiser was at a $10million/yr range. In, 2007- Blue dropped to $4.4 million compared to Bud at $9.7 million
* Still continuing to lose ground in market share
* Recent history of ineffective marketing ad campaigns
Campaigning results were judged as ineffective by company executives, as the market share declined Blue struggled to have a clear image in the marketplace.
* No brand identification over the last number of years
In 2007 Blue stopped the “image building” ads, moving to the value-segment of advertising. Before that, in 2006 they focused on the quality of beer through factual creative strategies; In 2003 humorous creative strategy replaced the contending brand it once was.
* Brand has lost international priority due to globalization through international ownership
* Spending less money on promoting ‘Blue’ brand
Opportunities
* Market for beer, spirits and wine market increased $18 billion in 2007.
4.9% increase from the previous year of $18,000,000 in 2007. * Marketing mix potential * Economic downturns lead to increased sales for product * More and more beer drinkers are using internet and social networking sites * Huge growth in value segment of beer industry * Large potential for refreshing product image * ‘Bottoms Up’ draft technology shows serious potential for sporting events
Threats * Spirits and wine sales on rise * Budget beer gaining popularity * Loyal Blue drinkers making switch to wine * Market being saturated by diversity in kinds of beer
Alternatives:
Rebranding. The biggest opportunity is to introduce Blue to an entirely new market: young sociable males. The baby boomers are, perhaps, somewhat set in their ways when it comes to beer drinking. Many are expected to continue shifting to wine and spirits and the majority of beer drinkers will remain young. Traditionally males dominate the beer buying market. If the perceived image is that Blue doesn’t stand for anything then the opportunity to reintroduce Blue to a new generation of undecided beer drinkers is huge. This opening doesn’t come without some serious risks. Canada’s beer market is highly competitive. A rebranding campaign would have to be very well-researched and strategically
executed.
Recommendation:
It is our recommendation that a marketing campaign be launched with the intent to rebuild name brand recognition and awareness. It is time, once again, that people began to ‘Think Blue.’ This classic name has 160 years of tradition. It is the number one selling Canadian beer around the world and it is time that Canadians learned to love it, again, too. A hip and trendy ad campaign with an emphasis on social media marketing. Utilizing appropriate celebrity endorsement such as Canadians Ryan Reynolds or
Target Market:
Age: 21-30
Gender: Male
Income: $30,000+ annually
Occupation: Middle Class Workers
Education: High School
Location: Cities of 50k+ population
Lifestyle: Hard working Canadians working part-time or full-time who enjoy socializing with friends
Secondary Market:
Includes males aged: 31-49
As baby boomers continue to migrate to wines and spirits, it is the younger generations such as Generation Y that will become the growing majority of beer drinkers. Alternatively, those in generation X have
LABATT BLUE
Problem:
Over the last number of years Labatt Blue has lost a significant amount of market share. How does Labatt Blue reestablish itself as Canada’s leading brand of beer?
SWOT Analysis:
Strengths
* History of memorable campaigns. “A whole lot can happen, Out of the Blue” is an example, with titles such as “Streetcar” and “Road Trip” as equally engaging ads.
* In-case promotions, giveaways, loyalty programs.
During the summer months Blue (and many competitors) are known for running promotions, which are the tactical activities used to stimulate purchases.
* Supportive of various events (CFL, NHL, etc)
The brand is the title sponsor, which gives them signage in the stadium, and national exposure …show more content…
during the televised games.
* Title sponsor of Winnipeg Blue Bombers
Since 1951, built strong customer relations, loyalty.
* Sensitivity to francophone culture
Blue is sold in all provinces, but has adapted to culture in Quebec by altering the name to Labatt Bleue and the logo to a red fleur-de-lis instead of the red maple leaf.
* Rich history as a former market leader
Branding ties product differentiation and consumption closely together. Creating an attracting image to draw in specific target markets was the main battle between Blue and Canadian to be market leaders.
Weaknesses
* Weak in international markets
InBev decided to focus on other brands that they could market internationally, Blue wasn’t in that mix.
* Dropped to fourth in national rankings (2007)
Fell behind American brand beers such as Budweiser due to changes in the company’s direction of advertising spending, away from Blue.
Ex: In 2003-2006, spending was at $7million/yr for Blue; Budweiser was at a $10million/yr range. In, 2007- Blue dropped to $4.4 million compared to Bud at $9.7 million
* Still continuing to lose ground in market share
* Recent history of ineffective marketing ad campaigns
Campaigning results were judged as ineffective by company executives, as the market share declined Blue struggled to have a clear image in the marketplace.
* No brand identification over the last number of years
In 2007 Blue stopped the “image building” ads, moving to the value-segment of advertising. Before that, in 2006 they focused on the quality of beer through factual creative strategies; In 2003 humorous creative strategy replaced the contending brand it once was.
* Brand has lost international priority due to globalization through international ownership
* Spending less money on promoting ‘Blue’ brand
Opportunities
* Market for beer, spirits and wine market increased $18 billion in 2007.
4.9% increase from the previous year of $18,000,000 in 2007. * Marketing mix potential * Economic downturns lead to increased sales for product * More and more beer drinkers are using internet and social networking sites * Huge growth in value segment of beer industry * Large potential for refreshing product image * ‘Bottoms Up’ draft technology shows serious potential for sporting events
Threats * Spirits and wine sales on rise * Budget beer gaining popularity * Loyal Blue drinkers making switch to wine * Market being saturated by diversity in kinds of beer
Alternatives:
Rebranding. The biggest opportunity is to introduce Blue to an entirely new market: young sociable males. The baby boomers are, perhaps, somewhat set in their ways when it comes to beer drinking. Many are expected to continue shifting to wine and spirits and the majority of beer drinkers will remain young. Traditionally males dominate the beer buying market. If the perceived image is that Blue doesn’t stand for anything then the opportunity to reintroduce Blue to a new generation of undecided beer drinkers is huge. This opening doesn’t come without some serious risks. Canada’s beer market is highly competitive. A rebranding campaign would have to be very well-researched and strategically
executed.
Recommendation:
It is our recommendation that a marketing campaign be launched with the intent to rebuild name brand recognition and awareness. It is time, once again, that people began to ‘Think Blue.’ This classic name has 160 years of tradition. It is the number one selling Canadian beer around the world and it is time that Canadians learned to love it, again, too. A hip and trendy ad campaign with an emphasis on social media marketing. Utilizing appropriate celebrity endorsement such as Canadians Ryan Reynolds or
Target Market:
Age: 21-30
Gender: Male
Income: $30,000+ annually
Occupation: Middle Class Workers
Education: High School
Location: Cities of 50k+ population
Lifestyle: Hard working Canadians working part-time or full-time who enjoy socializing with friends
Secondary Market:
Includes males aged: 31-49
As baby boomers continue to migrate to wines and spirits, it is the younger generations such as Generation Y that will become the growing majority of beer drinkers. Alternatively, those in generation X have