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Presentation on Moosehead Breweries for the International Marketing elective.

Presentation on Moosehead Breweries for the International Marketing elective.

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Moosehead ppt Moosehead ppt Presentation Transcript

  • Moosehead’s Entrance into the US MarketJordana Hoppe · Thomas Kurian · Kate Robb · Zafreen Zaheer
  • A Brief History of the Brew... • 1865, Susannah Oland sailed from England to Nova Scotia with her family and, lucky for us, with her recipe for a rather delicious brown October ale. 1865, Susannah Oland sailed from England to Nova Scotia with her • 1867 – her recipe for a rather delicious brownfamily and, lucky for us, with Susannah, her husband and 9 employees form “The Army and Navy Brewery “ – after a few deaths October ale. and disasters, and name changes they eventually settle on “Moosehead Breweries Ltd.” named after their signature Moosehead Pale Ale • By 1962, Moosehead had seen its 4th generation of Olands run the brewery • The Moose is Loose: Moosehead decides to grow by launching its signature lager to the south
  • 3 Key Reasons WhyMoosehead Moved to the South1) Interprovincial trade barriers – required a brewer to have production facilities within a province – Moosehead was a small &privately owned : they simply didnt have the capital to build additional facilities to serve the other Canadian provinces.2) Size of American beer market – Canadian market: consumed roughly 20 million hectoliters of beer a year – the US market was ten times the size of the Canadian domestic market3) Growing US import market: – The tastes of American beer consumers was changing from the traditional lighter/drier beers (e.g. Miller, Busch) which created room for more niche products – Key imports, like Heineken, we’re building a strong base
  • Moosehead principles to enter the US market: 1 2 3 Monitor and Position the Get the product research market brand correctly: right for the trends and enter a In the premium market: changes growth segment: Space to packaging Drinking age – 35 year old American Male 4 5 Maintain consistency in Create strong distribution graphics and advertising: focus partners: Connect with a on the Moose + Canada reputable and established distributer
  • The Distributor Years1978 – 1990 All Brand 1997 -2007 Distributors Gambrinus 1990 -1997 –All Brand was purchased by Guinness Imports• Moosehead worked with 3 different distributors from 1978 -2006• Distributors “owned” the brand in the USA: pricing and marketing Key Mistake: •Canadian head office continued to focus on Canadian Operations •When import market declined in late 80’s distributor dropped pricing to compete with domestics
  • Moving Back Up Market• Moosehead recognized the distributors error in moving the product to the domestic segment• Worked with distributor to move Moosehead back into the Premium Import Space in the USA• Introduced campaigns e.g “heed the Call” to attract a younger demographic (avg age in late 1980’s was 44)• Move from Guinness Imports to Gambrinus was an attempt to ally with a distributor with more expertise in the premium import space (Gambrinus had expertly introduced Corona to the US)• Gambrinus introduced new marketing programs to give a premium association with the Moosehead product: e.g. Shirt Campaigns
  • Moosehead USA: subsidiary of Moosehead Canada • March 31, 2007: Moosehead decided to break its contract with Gambrinus – Andrew Oland had just ascended as the head of Moosehead – Gambrinus had not been giving the needed attention to Moosehead • Moosehead believed it could do a better job selling its own beer: – Leverage marketing campaigns North and South of the border • Choose Key wholesalers & have full control of distribution networks: – Alter distribution strategy – Target new cities & focus on more profitable areas – develop relationships with additional retail stores and bars directly to dismissed the need for some wholesalers • Improve margins by eliminating the distributor
  • Moosehead Today US, there are two tiers of breweries: 1) Large/publicly traded 2) small low tier Units Sold breweries including Shiner and Bridgeport. Marketing/Ad spend Moosehead sits in a Unique tier • Moosehead has an attractive offering and is an appealing acquisition for the large tier competitors • Low desire from the Oland Family to be acquired: Moosehead is proud to be Canada’s oldest independently owned Brewery
  • Moosehead: USA & Canada Working TogetherUSA & Canada:•Use the same marketing assets and campaign messages (small tweaks)•Meet monthly in Toronto to collaborate on Marketing initiatives•USA President is accountable to Moosehead Canada for Marketing & Sales Canada USA Key target drinking age – 35 males drinking age – 35 males market Value Prop: premium domestic in import most of Canada (domestic in Maritimes) Pricing & Government Controlled Moosehead must sell to the Distribution: retailer + customer: More POS advertising
  • An Example..... Canada: “Cottage Life” USA: Moose Focus focus
  • Outer-self: much more heavily promoted inCanada
  • Recommendations for the FutureMoosehead should continue to focus on:1. Targeting the drinking age – 35 year old male – Top beer consuming group in the US2. Moving the brand into the premium space – Continue to fund POS and advertising activities that promote a premium image3. Further developing new and existing relationships with retailers in the North Eastern US to increase margins – NE has the most profit because of close proximity to St. Johns (lower transportation costs) – Lower barriers into key distribution points (south is dominated by supermarkets with strong relations with larger breweries)4. Introducing products into the NE USA that leverages the Moosehead brand image – Moosehead’s core competencies are beer and marketing – Moosehead’s Canadian image can easily be translated to another new product e.g. Cracked canoe – Cracked canoe would make an ideal transition beer for maturing customers