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The Rant Powerpoint Presentation Transcript

  • 1. Molson Canadian – The Rant MH630 Case Presentation: Group 4 Joelle Urrutia & Hsin-Yi Tai
  • 2. Canadian Beer Industry Per capita consumption based on population Beer Sales
    • lowest growing beverages
    • Beers sales has been flat
    • Imported beers
    • 1993- 2.5% of total
    • 2000- 6.8% of total
  • 3. Province variation
    • Brand sales and market share varied significantly
    • Different legislation for brewing, selling and transporting beer
  • 4. The Beer Market
    • Each share point: $15 million in profit
    • M&L : $400 million on advertising and promotion
    • Cost breakdown
    • 37%- Tax
    • 20%-marketing
    • 15%-profit
  • 5. Dominators
    • Montreal Quebec, 1786
    • “An honest brew makes its own friends”
    • Two divisions:
      • Brewing
      • Sports and entertainment
    • London Ontario, 1786
    • Controls over 60 regional and national brands
  • 6. Market Share Loss 1989 Cost over $100 million in profit 1999
  • 7. Molson’s strategy
    • Focus on existing markets,
    • Expand the Molson brand to new markets
    • Position Molson as a participant in the international brewing industry.
  • 8. Competition in the Beer industry Canada Market 1988: 50 breweries 1999: 75 breweries
  • 9. Competitors
    • Labatt:
      • With 60 regional and national brands, used aggressive advertising and promotional strategies.
    • Sleeman Brewers Ltd:
      • small craft brewers focused advertising on history, production, and recipes
    • Microbrews and Brewpubs:
      • limited production with artisan feel relied on word of mouth
  • 10. Issues to Consider
    • Sales fragmented between brands and provinces
    • Molson was losing valuable market share
    • Differentiation on brand level is key
    • Need to be drawn in before brand preference is made
    • Government regulations on advertising strict
  • 11. Molson Canadian Positioning
    • “… a young male who is looking for a big popular brand that is a little safer, that is one that he knows what it’s about, knows hat a lot of other people are drinking it and is reinforcing something that is important to young males, as well as young females at this point in time…pride in Canada”
  • 12. The Rant
  • 13.  
  • 14. Where to go from here….
    • Could The Rant be considered a successful campaign?
    • Could it be redone to keep it fresh?
    • Should they continue with a patriotic theme?
    • Is “lifestyle” focus a better option?
    • Does it limit them from expanding internationally?
  • 15. Alternatives
    • Continue with The Rant
      • push it heavily in provinces where they are losing market share or have none.
    • Shift the focus of The Rant to more local tone
      • push heavily in provinces where they are losing market share or have none.
    • Abandon The Rant
      • shift to a more internationally acceptable marketing theme, with a focus on lifestyle.
  • 16. Molson’s strategy
    • Focus on existing markets,
    • Expand the Molson brand to new markets
    • Position Molson as a participant in the international brewing industry.
  • 17. Cheers !