Bringing Back The Jazz
GLOBE AND MAIL
Report on Business
Thursday, July 22 2004
In the beer business, brand is everything. For Molson, many industry observers agree that its flagship Canadian brand is in desperate need of repair as the middle-market lager loses customer share to low-cost beers and the superpremium imports. Now, amid speculation that a major corporate overhaul is in the works at the venerable brewer, RICHARD BLOOM asked three marketing experts what they would do to kick-start Canadian.
Alan Middleton
Marketing professor, York University's Schulich School of Business
No. 1: Revisit the whole advertising approach. The problem they have right now is their current advertising agency misunderstood the concept of the I AM campaign. The concept is I AM, not IAM Canadian. The I AM in its original form was a statement of what made a 19-year-old male a personality that was different from parents, friends and other people. I AM this!
The new ad agency that was appointed a few years ago did that brilliant advertising - Rant. Well, then they made a mistake. They thought what the campaign should be about was all nationalism. ...Rant was a brilliant one-off, but to describe a 19-year-old male as firstly all about nationalism all the time is pure B.S. and a total misunderstanding of the power of the campaign.
I would get an ad agency to demonstrate how they would relaunch the I AM campaign. I AM is about understanding the beer drinker; where their head is now. The brilliance of the original campaign was it demonstrated that it was so in touch with where the head of the 19-year-old beer drinker was. They've got to get in touch with where that beer drinker is and they've drifted way away from it.
Second, you've got to liven up the distribution of the brand. ...Beer is boring in controlled environments like (Ontario beer seller) Brewers Retail. That's because companies like Molson and Labatt don't want to spend the money on upgrades because then they have to let other brands in.
Repackage it. Make the bottle and the label part of the continuity but wake it up. Bring some excitement back to the brand. Right now it's boring "mass" and something that I'd stay away from because Corona or Heineken are much more exciting.
No. 3 is they've got to get their PR machines rolling. This means (rejigging) everything from sponsor promotions to buzz marketing.
You've got a market that increasingly doesn't want to wear a badge that says "mass." When you order a beer you wear a badge. You want to wear a badge that say "special, different". ...especially, the 19-year-old wants to be special.
Then they've got to do some of the basics, like turn on their sales force. What companies often forget is branding starts with your own people.
Tony Chapman
Chief executive officer, Capital C, a promotional marketing firm
There has to be a two-tiered strategy: there's one for the United States and how to export Canadian around the world; and there's a domestic strategy.
Domestically, Canadian is caught in the middle between the value segment and the superpremium segement. We used to have the best beer - but now the superpremium segment no longer is Canadian beer, it's imports from the United States and Europe. If you want premium, you tend to go to beers like Stella, Bavaria, Heineken. They're (Canadian) caught in the middle.
I think there's a lot more room for (ad campaign) I AM Canadian. If this was a brand called American, then I AM American really plays on the patriotism. But Canadians are more understated, we're more doers than talkers - I think I AM Canadian has got to play to the subtle nature of Canadians and our identity and our pride. We like to be proud without wearing it on our sleeves.
Then I would do fewer, bigger and better on the promotional front. The consumer has become quite accustomed to T-shirts in the cases; I'm not sure how many more T-shirts they need. The other thing we can do is to create buzz and excitement. What's the buss factor that we can put in the marketing to get consumers saying: That's who I am, that's what I'm all about. I get that. I'm part of that. I want to drink out of that special can to get to that special event.
In the States, I would do the opposite. I would go after the superpremium segment. You talk about Canada in the States and they talk about clean water, fresh air, pollution-free - as much as we want to get away from the Rockies and the Mounties and the Great White North, that's how the Americans view us. I would say, how do make Canadian the No. 1 import in the United States?
Ken Wong
Marketing professor, Queen's University
The essence of all strategy is the notion of what problem are you solving for the consumer. The way Canadian is positioned right now, the only problem it appears to be solving is an affiliation with Canada. The current campaign that "why don't I snap my fingers when I order a beer?" is not only a slam against American beers but all imported beers, which is a bizarre thing because a lot of Molson's brands are imported brands.
Nationalism to me just isn't a motivation for buying beer and I don't think the folks at Molson have been able to attach Canadian to a particular occasion for drinking. I don't think that they've struck a chord that resonates with the target demographic they're after - young males between 18 and 30. What you're starting to see here is a brand that' lost touch with its constituents.
I don't think Labatt has done a better job with Blue - in both cases ad agencies have come up with catchy ads that people see, but that liking of the ad is not translating into beer consumption.
I think it's time to overhaul the product. I'm not saying go micro-beer, I'm just saying you've got a product here that doesn't have any functional point of distinction. Consumers can't taste the difference between the beers. Most can't see a visible difference in the hue or colour of the beer. So it basically comes down to us drinking the advertising and whatever product they wind up throwing at us. There's just nothing distinct about Canadian any more.
Molson Canadian Rocks was a great idea in its time, but I think it has lost some of its cachet. If you believe the assumption that music and that demographic go hand in hand and you need to align yourself with music to get that demographic, then they could do an affiliation with music downloads ... they could be doing guest spots music videos with specific performers. There are a lot of things they could be doing.
What Canadian really needs to do is get back on the streets and start talking to young men. And I'm not talking just about bars. They need to go to campuses and colleges and get more streetwise. If they're not prepared to change their product, then they better have the world's greatest image campaign - and they certainly don't have that now.
