Marketing of Miller Lite

Résumé du document

Few years ago, we noticed that the main impetus for growth came from increased consumption in developing countries. However, in more established beer markets, volume growth was very slow due to increasing saturation. Subsequently, we noticed a radical change. Manufacturers were seen actively launching light beer. In that period, manufacturers began to target health conscious consumers. The major idea was to reinvent light beer and show that it could be better for consumers. However, many brewers finding their domestic markets approaching saturation point, found it necessary to expand into international markets to gain strategic geographical advantage. A large number of mergers and acquisitions were noticed in the beer market. Despite a clear trend towards consolidation, the global beer market remains highly fragmented with the top 10 producers accounting for less than 45% of total volume sales.

Extraits

[...] It wasn't long before Miller began to see a real decline in term of sales. Indeed, Miller lost share leadership among heavy drinkers Miller doesn't currently have share leadership in any segment of the beer industry. Bud Light is currently the world's best selling beer brand, whereas Miller Lite is third in the low-calorie beer market in the United States. Rather than making a direct strategy to stop the decline, the company dissipated its leadership by investing in less successful new brands. [...]

[...] Despite the volunteer of Bud to stop battle, Miller declared to continue direct aggressive marketing attacks on Bud Light because it's beneficial for the company to periodically make direct comparisons. Indeed, Bud Light is a massive brand that is becoming vulnerable to consumer reconsideration. III) Is beer war back? The role of advertising In general, advertising is very important for brewers. When brewers advertise, they are not trying to create new demand for beer, but to encourage adults to select their brands of beer instead of the competitions' brand. Advertising doesn't stimulate demand but promotes brand loyalty and encourage selection of one brand over another. [...]

[...] The strategy of the group is to focus on key local brand just like Miller Lite in USA. For example, for Miller Lite, the goal is to: Stop Miller Lite decline Stabilize the overall portfolio Establish platform for future growth Adapt a real challenger strategy to stop the A-B dominance SAB Miller is a real departure for Miller Lite. The real power of the group is that they are present all around the world thanks to differentiated brand portfolio that covers every people's expectations. [...]

[...] Indeed, we note that Miller keep its role of challenger for many years. However, we must underline that the challenger strategy gives some opportunities for Miller: High volunteer to win (try to get its past position) Real capacity of adaptation (study on the leader strategy) Aggressive strategy (direct attacks on commercials) The strategy of Miller Lite is composed of 5 points: Grow Miller Lite share of the light category Strengthen brand portfolio Maximise heritage, values / legacy brands Improve value add and leadership with key distributors Reduce operating costs With SAB Miller, Miller Lite will try to focus on the heritage of the brand. [...]

[...] What about Anheuser Busch? During this period, Anheuser Busch, which was the main competitor of Miller Brewing Company, saw this launch like a real threat for the brand (which commanded 43% of the beer market). In 1982, the company ventured into the low-calorie category with Bud Light. However, A-B suffered some share loss. The launch of Bud Light Indeed, at this period, Miller Lite was the leader with 50% of the light beer market. The real goal of Bud Light launch was to implement a brand that would have a strong point of advantage in relation to Miller. [...]