The Rant Essay

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Managing Advertising and Promotion Case: Molson Canadian -- The Rant Case question: What should Molson do now? Why? Who: Molson, in particular the marketing team What: Find a new campaign for Molson Canadian, Molson best selling beer Background * The Rant was a successful campaign that resulted to two a point increase in sales (1 point = 15 million) * It was an award winning campaign, but deem played out. Urgency * Beer sales are flat * Molson lost 100 million (89’ – 99’) * Net loss of 44 million (2000) * New competition from imports, regional, micro-breweries Industry * Molson and Labatt are considered duopoly, and make up 90% of the market, valued at 5-6 billion * Beer is slowest growing in alcoholic beverage consumption. (Wines, Spirits are fastest) * Sales are fragmented in the Canadian market * Ontario is the largest market * Quebec is second * BC is third * Ontario and Quebec is 60% market * Brand sales vary per province – why Molson not sold in Quebec? * Import sales increased from 2.5 to 6.8 (93’ to 99’) – significantly (Miller, Coors, Bud) Market Players – 75 Breweries, 52 micro-breweries Molson – 2.5 billion in sales. The oldest beer brand in North America (founded 1786) * . The Molson Canadian has 12% of Molson’s market share * Overall market share decreased from 52% in 89’ to 45% in 99’ * Strategy: Focus on existing market, expand to new markets, position as an international brewery. * In 2000, Downey (head of marketing) consolidated the brand in 7 unique positions * Coors, an import, but distributed by Molson: 2.4 billion, 15% increase in sales. 4th largest brand and considered fastest growing. Labatt – Founded 1847, 45% Candian market share * Aggressive in advertising and promotion, tend to go head to head with Molson * Strategy:

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