Molson Canada: Social Media Marketing
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Table of Contents
Executive Summary……………………………………………………………...
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I. Key Issues……………………………………………………………………...
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II. Analysis……………………………………………………………………….
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III. Alternatives & Recommendation…………………………………………….
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IV. Implementation………………………………………………………………
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References………………………………………………………………………... 16
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Executive Summary
Molson Canada has been facing negative reactions their recent social media marketing initiative,
Cold Shots Campus Challenge. Parties claimed that this Facebook contest promoted irresponsible drinking behaviours among university students. As a result, Molson pulled the contest one week before the scheduled deadline. Now, Molson must
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They also have strong revenue, generating $3.61 billion in 2006 (Molson Coors 2006 annual report, 165). Internationally, Molson has 3.8% market share, the fourth largest. Molson also has a strong brand image because of corporate social responsibility initiatives and community involvement. Community involvement includes the responsible drinking program, charitable initiatives and sports and entertainment sponsorships. Molson has brand loyalty because they have been established in Canada for more than 200 years. A weakness is that
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Molson has few differentiated products and, therefore, may face cannibalism of their product lines. Currently, Molson’s strongest markets are North America and Europe. An opportunity for
Molson is to branch into Asian markets. Another opportunity would be for Molson to diversify their product brand to include beverages other than alcoholic drinks. A marketing opportunity for
Molson is to further develop their social media marketing strategy because their competitors have not yet successfully integrated social media into their marketing strategy. Some threats that
Molson faces are fluctuating prices of barley, wheat and aluminium. Furthermore, they face high competition in the industry level.
Porter’s Five Forces
The popularity and worldwide success of Canadian Club can be attributed to more than just its great flavour. Review of key marketing components has given an all around understanding of the thought process involved in ensuring the success of this company. These components include, the analysis of the product, pricing, competition, target market, position within the market,
Canada is a democratic country. Canadians elect the parliament and the Prime Minister. But because Canada is a market economy, jobs, prices and the economic situation depends on big businesses. The fact that American companies own such a huge part of Canadian industry that it puts them in control of business in Canada. In other words a straight economical dependence, where Canadian people are no longer in control of things in their own country. A good example is a situation when American corporation buys a Canadian company. They take Canadian workers only for low paid positions. Most of the managers, accountants, sales executives who really control big business operations in Canada are Americans. Most of the times the specialists who work in American owned companies in Canada are also brought from America on contracts. In this case Canada is too depended to act the way it wants without support from the U.S.
One of the reasons for the downturn in the Coors industry was due to the fact that their competitors began to minimize their costs similar to what they had done. It was no longer a strong advantage like it had been previously. Coors had very limited suppliers and were
U.S. market is 10 times larger than Canada. With right business model and price, foxy would gain additional revenue and profit.
Hemmadi, Murad . "Blast from the past: A timeline of the Tim Hortons-Wendy's merger." Canadian Business. N.p., 25 Aug. 2014. Web. 1 Oct. 2014. <http://www.canadianbusiness.com/companies-and-industries/tim-hortons-wendys-merger-lessons-burger-king/>.
Molson Coors ability to create loyal customers contributes to the company being one of the worlds largest brewery companies bringing in $5.6 billion a year in sales. The company employs 11,000 employees with 10 breweries in 3 different countries. Although the company only produces 40 brands of beer, two of them, Coors and Coors Light, were appointed top beer brands form the national customer loyalty study for three consecutive years. SABMiller, who acquired the Miller Brewing Company in 2002, produces over 200 beer brands and brews in over 60 countries. The company decided to specialize in premium brands of beer and were compensated in 2006 with a 19% increase in revenue. The company prides its self on emphasizng the fewer carbohydrates and better taste its line of beers has compared to its competitors. The company proves this with winning the Miller Light Taste Challeng, a point-of-sale taste test. Another competitor of Anheuser-Busch is Heineken NV. Heineken produces 170 beer brands and owns 115 breweries in 65 different countries with 65,648 employees. The company specializes in lagers, speciality beers, light beers, alcoholic-free beers, and soft drinks. Although competition with these companies is combative, Anheuser-Busch (ABI) continues to be the leader in brewery with higher revenues and net income. The company employs over 30,183 in 27 breweries compared to the industries average of 480
Social media is an effective media of communication between the consumers and companies. The companies are using social media for improving consumer engagement and brand lift. This essay gives a brief overview of social media platforms and how effective they have been. It shows that the whole marketing concept has undergone radical transformation due to the social media interaction. The essay ends in conclusion depicting what marketers need to take care in order to have successful social media campaign.
Discuss what is meant by the term “customer orientation”. Illustrate with examples how companies demonstrate their customer orientation by reference to at least two elements of the marketing mix.
A long-term strategic management issue for GM is the increasing global competition due to the mergers and acquisitions of its competitors. The partnership of Heineken and FEMSA (Mexico’s second largest beer company in terms of market share) was formed for the sole purpose to dethrone Corona as the best-selling import beer in the United States. To make matters worse, there were also rumours of large mergers and acquisitions of mid-tier brewers in order to better compete and expand globally. In addition, with the introduction of NAFTA, Canadian and U.S. competitors were slowly beginning to penetrate the Mexican market, which had the potential to chip away at the majority market share GM enjoyed.
Appears that anywhere you look today you will find someone using social media. With advertisements and commercials even billboards Social Media appears to be anywhere you look. Social Media is such a big thing today, according to study provided by the website Socialnomics, individuals devote 700 billion minutes every month on Facebook (statisticbrain.com). Social Media has now become so much better for advertising that it is changing how business is done.
In an earlier blog, I briefly discussed with you the importance of selecting the right social media platform for your business goals. Getting started on the right foot with your social media marketing is essential to the growth and scalability of your business. Selecting the right social media platform is only the beginning of your social media strategy. The next step is to develop the right content to share. The goal of your social media content is to grow an audience of potential customers and give them a chance to engage with your business.
We cannot deny how big of an impact social media has on our lives now, not only on people but businesses too. It has opened a whole new door to the business world and given them a big opportunity to interact and attract a larger amount of customers. It’s given us a new and faster way of communication by exchanging pictures, stories, news, blogs, online discussions, etc. In exchange businesses have benefited by a long shot just by the click of a button. With the help of the Internet a company no longer is dependent on a particular customer base to survive because now it can reach out to a worldwide audience within seconds. It’s imaginable the countless business attributes of all social media to this day and still is growing. Social media
In today’s business world, social media is being discussed on a daily basis. This phenomenon has taken over the marketing and advertising industries and has changed the way they handle their efforts to attract customers. There is a big misunderstanding that social media are only popular networking sites such as Facebook and Twitter, but as defined by the Merriam-Webster dictionary, social media are “forms of electronic communication (as Web sites for social networking and micro blogging) through which users create online communities to share information, ideas, personal messages, and other content (as videos).” The rise of these online communities has given companies an opportunity to engage in conversations with their customers. This in
Widely adopted by the general public then by companies, the Internet fast imposed itself to become the archetypal media in terms of communication and search for information in all the domains today, and it is true whatever is the position of each in the society.
Despite the fact that we’re already in the 21st century, society continues to show signs of progress and development strongly leaning towards the direction of advancement, constantly evolving. This pattern is no different from the world of advertising, as it has also evolved through the years and quite recently an unexpected technological innovation took the world by storm. It made such a tremendous impact that eventually led to the transformation of traditional marketing, and it’s no other than social media that we all learned to love.