molson canadian vs labatt blue battle of the brands
TRANSCRIPT
GOLDEN CANADA GOLDEN BREWProudly Canadian―Molson Canadian
Melissa
Mattias
Alexia
Waters
Qi
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
THE ALCOHOLIC BEVERAGE INDUSTRY Canada
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
Highly ConcentratedIndustry
ALCOHOLIC BEVERAGE INDUSTRY
Highly ConcentratedIndustry
Large Market Size1,257 Olympic Swimming Pools by Volume
ALCOHOLIC BEVERAGE INDUSTRYIndustry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
Stagnant Growth0.8% Growth by Volume
Highly ConcentratedIndustry
Large Market Size1,257 Olympic Swimming Pools by Volume
ALCOHOLIC BEVERAGE INDUSTRYIndustry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
Stagnant Growth0.8% Growth by Volume
Highly ConcentratedIndustry
Large Market Size1,257 Olympic Swimming Pools by Volume
ALCOHOLIC BEVERAGE INDUSTRY
18/19Legal Drinking Age
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
24M LEGAL OUT OF 36M POPULATION
LDA Female 40%
LDA Male 38%
NOT Legal 22%
POPULATION
ALCOHOLIC BEVERAGE INDUSTRYIndustry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
Pie Chart (Can’t Eat It, But You Can Drink It)
Other 38%
Sapporo 3% Molson
26%
Anheuser-Busch 33%
CANADIAN MARKET SHARE BY SALES
MARKET SHARE BY SALESIndustry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
ALCOHOLIC BEVERAGE INDUSTRY
MARKET DEVELOPMENT INDEXIndustry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
0.90MDI
ALCOHOLIC BEVERAGE INDUSTRY
MARKET DEVELOPMENT INDEX
INDUSTRY IS IN THE MATURE STAGE
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
0.90MDI
ALCOHOLIC BEVERAGE INDUSTRY
Competitive Rivalry
Threat of Substitutes
Threat of New Entrants Buyer Power Supplier
Power
High Moderate Low Moderate Low
Highly concentrated Destructive to compete on price
Wine, hard alcohol, non-alcoholic beverages Beer is not a necessity
Economies of scale prevent new entrants High level of customer awareness
Low switching costs
Commodity inputs: worldwide supply Barley, hops, yeast, water
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
VERTICAL INTEGRATION
Narrow Market Vision MOLSON Controls its entire value chain
Brewer
Packager
Seller
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
DenverHeadquarters
17,000Employees
50Countries
100Brands
MOLSON COORS OVERVIEWIndustry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
+7.4%Revenue Growth
$4 BillionFY 2013 Revenue
MOLSON COORS OVERVIEWIndustry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
+28.1%Net Profit Growth
$567 MillionNet Profit
MOLSON COORS OVERVIEWIndustry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
CANADA
OUR CANADIAN STORY
241Years
26Brands
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
OUR CANADIAN STORY
241Years
26Brands
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
OUR CANADIAN STORY
241Years
26Brands
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
OUR CANADIAN STORY
6Breweries
3,000Employees
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
OUR CANADIAN STORY
825 Million Litres Sold330 Olympic Swimming Pools (2013)
26.2%Market Share in Canada
#2In Canada
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
MOLSON COORS CANADA
Leading market position Channel advantage Vertically integrated
Reliance on core brands
Stable economic outlook Growing Canadian nationalism
Stringent advertising regulations Intense competition Labour wage increase Growing demand for craft beer
S W
O T
―MARKETLINE
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
Product Price
Place Promotion
45%Drank in the Last 6 Months
7%Forecast Growth by Volume
Numero UnoLager in Canada
1.1 BillionSales
PRODUCTIndustry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
45%Drank in the Last 6 Months
7%Forecast Growth by Volume
Numero UnoLager in Canada
1.1 BillionSales
PRODUCT
Beer is not a necessity
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
$2.40Lager in Canada
PRICE
➡High price compared to competition ➡Regular price products are preferred in
the Canadian Market ➡26.2% of “most often” beer consumers
prefer regular price
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
DISTRIBUTION
MULTI-SEGMENT DISTRIBUTION STRATEGY Molson is Widely Distributed
For Later Consumption
Point of Consumption
Liquor Store Bars
Super Market Restaurants
Depanneur Events
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
PROMOTION
TV RADIO PRINT ONLINE
IN-STORE PROMOTIONS
SPONSORSHIP ACTIVITIES
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
THE CANADIAN IDENTITY
MOLSON HAS STRONG TIES TO CANADIAN NATIONALISM CANADA IS THE 6th MOST NATIONALISTIC COUNTRY
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
PROMOTIONAL CAMPAIGNS
BRAND ASSET: SOCIAL MEDIA
Brand awareness Media attention Social media Active promotion Emotional
connection
Low brand awareness Lack of social media
presence No attraction for new
customers Low emotional
connection
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
630k 40k
40.5K 0.54K
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
BRAND ASSET: SOCIAL MEDIA
630k 40k
40.5K 0.54K
Last Facebook post: 2 years ago
Last Facebook post: 2 days ago
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
BRAND ASSET: SOCIAL MEDIA
COMPETITIVE SET
BRAND PRICE PERCEPTION SALES MARKET %
$2.40 $1.148B 7.0%
$2.00 $1.558B 9.5%
$2.30 Reliable & affordable $492M 0.3%
$2.45 Craft beer $984M 0.6%
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
MARKET SHARE IN CANADA
Molson Canadian 7%
Other 60%
Coors Light 12%
Budweiser 13%
Labatt 10%
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
MOLSON CANADIAN
Canadian connection Strong marketing campaigns Emotional bond Visible sponsors of popular activities & events Loyal customers High level of brand awareness
Not well known outside the Canadian market
Growing Canadian Nationalism Growing diversity in Canada
Growing popularity of craft beer Intense competition Health concerns Stringent advertising regulations
S W
O T
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
766 4615
0.86 0.93
0.13 0.29
NMC
ROI
ROS
MARKETING METRICSIndustry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
766 4615
0.86 0.93
0.13 0.29
NMC
ROI
ROS
MOLSON: STRONG ROS LABATT: STRONG KPIs
MARKETING METRICSIndustry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
16% 3.8%
21.3% 5.4%
25.3% 26.1%
21.2% 44.4%
14% 20.1%
18-24
25-34
35-49
50-64
65+
COMPARISON BY AGEIndustry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
16% 3.8%
21.3% 5.4%
25.3% 26.1%
21.2% 44.4%
14% 20.1%
18-24
25-34
35-49
50-64
65+
MOLSON: YOUNG LABATT: OLD
COMPARISON BY AGEIndustry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
48.2% 44.7%
10.7% 38.1%
14.6% 10.6%
ONTARIO
QUÉBEC
BC
COMPARISON BY GEOGRAPHIC SALESIndustry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
48.2% 44.7%
10.7% 38.1%
14.6% 10.6%
ONTARIO
QUÉBEC
BC
MOLSON: COAST 2 COAST LABATT: QUÉBEC
COMPARISON BY GEOGRAPHIC SALESIndustry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
TORONTO VANCOUVER MONTRÉAL EDMONTON
23.5% 8.2% 5.2% 5.2%
11.4% 1.7% 17.6% 0.5%
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
COMPARISON BY CITY SALES
COMPARISON BY CITY SALES
TORONTO VANCOUVER MONTRÉAL EDMONTON
23.5% 8.2% 5.2% 5.2%
11.4% 1.7% 17.6% 0.5%
40% OF MOLSON’S SALES COME FROM THESE FOUR CITIES LABATT’S SALES ARE CONCENTRATED IN MONTRÉAL
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
79.4% 57.3%
8.6% 35.1%
12.1% 7.6%
ENGLISH
FRANÇAIS
OTHER
COMPARISON BY LANGUAGEIndustry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
79.4% 57.3%
8.6% 35.1%
12.1% 7.6%
ENGLISH
FRANÇAIS
OTHER
MOLSON: ANGLOPHONE + MULTICULTURAL LABATT: FRANCOPHONE
COMPARISON BY LANGUAGEIndustry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
W LKPIs
Age
Geography
Cities
Language
THE BATTLEIndustry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
W LKPIs
Age
Geography
Cities
Language
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
THE BATTLE
W LKPIs
Age
Geography
Cities
Language
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
THE BATTLE
W LKPIs
Age
Geography
Cities
Language
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
THE BATTLE
W LKPIs
Age
Geography
Cities
Language
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
THE BATTLE
W LKPIs
Age
Geography
Cities
Language
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
THE BATTLE
MOLSON: APPEALING ACROSS CANADA LABATT: LIMITED APPEAL
KEY ISSUES & CHALLENGES
1) Rise in popularity of craft beer
‣Growth of craft beer industry = 10% in Ontario
‣Growth of beer industry = 0.8%
2) Gender imbalance in consumers
‣Molson Canadian consumers are 71.7% male
3) Intense competition
‣Top 2 firms control 59% of the alcoholic beverage industry
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
ALTERNATIVES
1) Reposition to better target Women
2) Reposition to better target Quebecers
3) Better emphasize Canadianness
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
DECISION MATRIX
Canadianness Women Québec
+Profits
+Sales
+Market Share
+Community
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
DECISION MATRIX
Canadianness Women Québec
+Profits
+Sales
+Market Share
+Community
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
BETTER TARGET WOMEN
1) Integrate more women into ads
‣Women playing sports and doing outdoor activities
with men in tv, radio, and print ads
2) Increase sponsorship of female-focused
events
‣Women’s Hockey League
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
3) Molson Canadian Mini Product Launch
1) Integrate more women into ads
‣Women playing sports and doing outdoor activities
with men in tv, radio, and print ads
2) Increase sponsorship of female-focused
events
‣Women’s Hockey League
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
BETTER TARGET WOMEN
MOLSON CANADIAN miniIndustry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
MOLSON CANADIAN mini
Convenient
Less beer, less calories
Easy to drink (finish)
Easy pull-off cap
No cannibalization
Less waste
SATISFIES BELONGING & SOCIALIZING NEEDS ADVERTISE IN LIFESTYLE MAGAZINES
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
MOLSON CANADIAN mini
CANADA
Capitalize on Canadian Nationalism to tackle rising popularity of craft
beer
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
EMPHASIZE CANADIANNESS
CANADA
Capitalize on Canadian Nationalism to tackle rising popularity of craft
beer
“Canadian Craft since 1774”
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
EMPHASIZE CANADIANNESS
CANADA
Capitalize on Canadian Nationalism to tackle rising popularity of craft
beer
“Canadian Craft since 1774”
6 breweries & 3 000 jobs
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
EMPHASIZE CANADIANNESS
CANADA
Capitalize on Canadian Nationalism to tackle rising popularity of craft
beer
“Canadian Craft since 1774”
6 breweries & 3 000 jobs
Molson Canadian contributes $1.3B or 0.07% to the Canadian GDP
Industry
Molson Coors
Molson Canadian
Marketing Mix
Comparison
Challenges
Recommendation
EMPHASIZE CANADIANNESS
STRONG BRAND IDENTITY &
POSITIONING
MASS APPEAL (AGE, GEOGRAPHY,
LANGUAGE)