Beer Marketing and Differentiation

Beer Marketing — Growing Beer Market Share

Introduction

Beer marketingThe following glance at beer marketing will give you a quick peak into how Stealing Share operates and finds solutions. Of course, no branding project would be complete without market research and all too often beer marketing lacks valuable research. This is just a cursory analysis. But it suggests a brand position that beer brands could use to steal share based on our own experience and expertise in branding beers. If your brand needs to steal share, feel free to email us or call us.

Commercials

Keeping the advertising in mind for all of beer marketing is important because to be successful in stealing market share your brand needs to be both different and better. So try to keep in mind all the beer ads you’ve ever seen (COORS, Budweiser, Michelob, Miller, MGD, Corona, Beck’s, Heineken, Red Stripe, Bud Light, Sam Adams, Amstel Light and Coors Light — for example). (You can view many of the category commercials here in our beer market study). Take a look before going on with this article.

It’s important to start by briefly describing the personality, position and promise of each of the brands. Here is a short example of just a few US domestic brands.

Brand Personality Position Promise
Budweiser Confident. Hip. King of beers “I get it.”
Miller Lite Hip. Youthful. Beer for friends It’s the experience.
Coors Lite Hip (a bit sophomoric) Cold. From the Rockies. Everyman Beer.
MGD Cool. Aloof. Genuine Seize the day.
Miller High Life Knowable The High Life Everything in perspective.
Coors Real Legendary Be an original.
Michelob Cool. Knowing. Tastes Imported Taste

 

Possible Meanings

Beer Marketing Positions
There are many possible positions. The goal is to find the one with the highest emotional intensity.

We considered the positions that a beer brand could take based on the advertising when mapping out the beer landscape with the goal to create meaningful beer marketing messages. Of course that assumes that the advertisers know what they are trying to convey – and THAT is a frightening assumption. Remember, for a brand position to have any meaning there must be an opposite position that a brand could chose for any of the positions to have true meaning to the customer. For example, “Best” is not a brand position because no one would claim “worst.” “Best” simply isn’t believable to the customer. But someone may claim the “intimate” position because a competitor could claim “casual.” That would be believable because it’s positioned against another’s positioning. Below are some possible positions a beer could choose:

Rules of Positioning

The following rules are helpful when selecting a beer marketing position to steal share in your market.

  1. Thrust:
    The positioning must demonstrate an active competitive advantage. This advantage answers the question of “why should I care” from the perspective of the consumer.
  2. Beer Marketing
    Strategy has rules

    Gravity:
    The positioning must have a powerful relevance to the target audience and their interest and receptiveness must be peaked.

  3. Definition:
    The positioning must be distinctive. It must set the brand apart from the competition.
  4. Density:
    The positioning must be single minded. It must have clarity and simplicity and must illuminate the target’s main precept.
  5. Synthesis:
    The positioning must be fused together in an emotional bond with the target audience. It must grab them in the gut.
  6. Integrity:
    The positioning must be believable. If the message raises suspicion – even if it is true – barriers are raised.
  7. Precision:
    The positioning must speak to the target that is best positioned to influence consumption or to consume that product or service.
  8. Convergence:
    The positioning must convey the same positioning message in all of the ways in which the consumer has of touching the brand.
  9. Momentum:
    The present positioning must build upon (but never mimic) the equity (if any) of past communications to leverage any residual positioning equity.
  10. Acceleration:
    The positioning must keep pace with the changing markets to evolve constantly making itself increasingly effective each day.

Beer Marketing and the Current Market

Next, we map out graphically how the major beer brands see themselves to check if there’s a position ready for the taking. This is an important exercise in developing beer marketing messages and beer brand positions.

Beer Marketing
Today the market is divided mostly by origin and price point.

Beer Marketing
Most microbrews define themselves by their origins or styles

Beer Marketing
To be fair, all the beers brands could be positioned one on top of the other as there is little differentiation

Beer Marketing Summary

All the major domestic beers are, by and large, competing for the same audience with vastly similar messaging. The market skews towards masculine-bawdy. Where are the beer marketing differences? How are they being delivered?

Quality, distinctive taste and better beer belongs to the imports and the micro-brews with some spillover into the specialty mass brews of Killians, Red Dog Blue Moon and the like.

Therefore, to claim a position as the superior tasting beer is in violation of rule 7 (integrity). It simply is not believable.

Like most mature markets, the beer marketing messages need to trade off personality and brand image rather than product benefit. After all, no one prefers a beer that they do not like. Taste or even a promise of better taste is not an effective lever to take market share.

Inside-out and Outside-in

Let’s dig deeper to accurately find positions that have the most meaning to customers and provide a market opportunity. Think about beer marketing from an inside-out perspective (how the beer brand presents itself) and an outside-in prospect perspective (how the customer feels about the brand).

Beer Marketing Implications

The most successful and powerful beer advertising of the past 10 years has toyed with this position. Bud’s anthemic “This Bud’s for you” and the original “Miller Time” campaign from years back found home in this quadrant. In today’s market, the closest player to this position is Corona, which has been one of the strongest and fastest growing beers in the import market.

Behavior Modeling Analysis

beerpres_b42_355To ensure that this beer marketing position has true and important meaning to the audience, we thought through the process (what it is customers think beer does), purpose (what the result of that process is) and the precept (what are the fundamental beliefs of the audiences that leads them to think that is the process). That brings us to the ruling precepts that are the most basic and critical precepts that motivate this audience. As you can see, a brand that fits into the sophisticated/intimate/confident position will appeal to this market ? and steal market share.

From our Behavior Modeling (Read more about it here) analysis we came up with the following precepts that support our market audit.

The Beer Marketing Prime Position

X beer is an authentic great tasting American beer for those of us that don’t need to follow the crowd.

Beer Opportunity.001

“This is the confident beer for those of us who know exactly where we stand. Some things in the world simply need no explanations. Good judgment has great rewards. Discriminating and smart enough to avoid trends and ads. Nourishes the spirit without pretense.”

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