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Molson Case Notes.docx

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MKTG 2030
Ben Kelly

Jessica Gahtan Molson Case Analysis MKTG2030 Context - The Molson Company is a beer brewery and distributor and is also the second oldest company in Canada - Molson is the most preferred beer brand in Canada and is part of the Molson Coors Brewing Company which holds the fourth largest amount of market share globally - In 2007 when firms were just starting to see Facebook and other social networking sites, like Twitter, as valuable places to market to consumers and communicate with them, Molson also decided to create a Facebook account to connect with consumers and increase brand awareness. - One of the first promotional activities Molson established using its Facebook account was a contest called “Cold Shot” which was targeted at Canadian college aged students between the ages of 19 and 24. This contest was set up to be a competition between Canadian colleges, awarding the title of “number one party school in Canada” to the college with the most pictures posted by students while also giving a spring break trip to the student from that winning school who submitted the best picture - Molson had to pull the promotion, though, because many administrators and other students from the various colleges were not happy with the contest since they thought that it not only gave their schools a bad image, but they also saw it as Molson encouraging irresponsible behavior and underage drinking. Problem Statement and Key Issues Molson’s problem is to determine if it should continue to use social media, like Facebook, when marketing its brand, and if it does choose to continue, how the company will use these sites to promote its brand in the future. Another issue this company is facing is how it can reestablish its brand as a brand that promotes and encourages responsible and legal use of alcohol throughout its future promotions, especially on these social media sites. Consumer Buying Decision Model - Molson needs to look at this model when determining if it’s appropriate for them to continue to use social media for marketing, and to determine how they will use social media to promote the brand Identification - Consumers purchase and drink beer/ alcohol in order to relax or have a good time with family and friends - Consumers identify alternatives or the different brands of beer or alcohol by word of mouth (from friends/family) or by observing what their friends/ family consume - They can learn about the different brands available while out at bars/ restaurants, shopping at the grocery stores (in the U.S) or liquor stores - They can also learn about the different brands from advertisements for the brands on television, on the internet, or in print media - Since beer and alcohol are purchased for social purposes – word of mouth or recommendations from friends/family about their favorite brands would be the most important way that consumers evaluate their alternatives Purchase - -Consumers will purchase the brand they have chosen either while out at a bar or restaurant or (if they’re drinking in a home setting) they’ll purchase it at a liquor store or grocery store (U,S.) Post-Purchase - Consumers may have to deal with cognitive dissonance depending on their experiences while drinking that brand of alcohol. - Since many people associate their good or bad times with the alcohol they drank, if an event does occur where the consumer got sick/ in some kind of trouble while consuming a brand of alcohol, they may connect that experience with the brand and choose not to purchase it again Consumer Expectations - When consumers purchase beer/ alcohol, they expect to have a fun/ enjoyable time while consuming the product - They might also expect a certain brand to have a consistent / ubiquitous taste (since this is a factor that many consumers use to determine their favorite brand - Adversely, consumers also have certain expectations or perceptions of the brand that they purchase and the company that sells the brand - This is important for Molson since the company not only has sought to produce quality beers, but also always tried to be perceived as a socially responsible company (especially through its “here’s to responsible choices” campaign, which encouraged drinking in moderation, not drinking and driving, responsibly preparing before drinking, and also condemned the idea of underage drinking) - Therefore, many consumers have a perception of Molson as being a brewery that produces quality beer and a product that helps them have an enjoyable time while also being a responsible company that looked after the best interests of its consumers Market Size and Trends Regarding Social Media - It’s important for Molson to recognize who the average user of social media/ social networking sites is, the behavior of this user when determining if it should continue to market its brand via this channel - According to the Forrester survey conducted in 2006, 69% of young adults (aged 18-21) used social networking sites while only 20% of adults used them • Also, this group of young adults also had higher usage ratings for the social networking sites, since 68% visited these sites daily while only 42% of adults reported using them this often • Essentially, these stats show that if Molson uses social networking sites (like Facebook) to market its brand, it would be mostly interacting with or promoting young adults since this is the average user, but it would also be promoting to the adult audience since their use of these social networking sites wasn’t drastically lower than that of the young adult group • While it may not be completely socially responsible for Molson to promote to this group, it would be gaining brand awareness with these individuals who could be customers in the near future since these young adults are only a few years away, if not already at the legal drinking age - It’s also important to note that individuals who use social networking sites, like Facebook, want “to engage with their favorite brands” • The Forrester survey stated that “more than 1/3 of 18-26 year old social networking users admitted that they’d be interested in seeing a marketer’s profile” • This willingness of consumers to interact with brands and also to be exposed to marketing messages on a brand’s profile is extremely important to Molson, especially since beer is a product that many consumers purchase due to word of mouth or their seeing their peer’s purchase/ enjoyment of a certain brand • By allowing consumers to communicate with each other and share their experiences with Molson products, the company would be able to significantly spread brand awareness and a positive image of the brand Jessica Gahtan Molson Case Analysis MKTG2030 Competitor Analysis and Strategies - Even though Molson is the most preferred brand IN Canada, it’s behind InBev NV, Anheuser-Busch and SABMiller globally- meaning the there’s a need for stronger promotion of the brand on a global scale - A great way to do this would be to utilize Facebook since it’s a virtual global community, and many of Molson’s competitors are also taking advantage of marketing through social media in order to increase their brand awareness and build communities that support their products - All of Molson’s competitors are also trying to figure out the best way to utilize Facebook and other types of social media for their marketing and promotional activities by using technology and different types of content like videos and pictures to promote their brands Alternatives High-level strategic and marking implications - Colleges are not looking to be kno
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