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The Rant Powerpoint

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The Rant Powerpoint

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

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