Coors Light
Brewing companies face a changing, challenging market. Large brewers such as AB InBev, MillerCoors, and Heineken still hold the majority of market share around the world, but their sales are beginning to slip due to competition from wine and hard liquor, and consumers’ rapidly growing preference for artisanal craft beers. Even in this declining market, there is one exception: MillerCoors’ Coors Light. This beer recently overtook Bud Light as the second-best selling beer in the U.S. and is the only top ten selling beer to post consistent growth in the past decade. This has contributed to sustained success for MillerCoors, which has seen revenues climb 4.3 percent in the past year to $2.2 billion.
What is the secret to the success of Coors Light? It’s not a change in the product, since the beer tastes the same and has been manufactured the same way for decades. The success of Coors Light can be wrapped up in one word: cold. It’s the core message of the promotional campaign surrounding Coors Light—that it is the coldest, most refreshing beer in the market. According to CEO Andrew England, “We literally said, ‘Okay, we’re going to do nothing but focus around cold.'”
On one level, MillerCoors’ focus on cold is a bit silly since any beer of any brand will only be as cold as the refrigerator in which it’s stored. Yet, the campaign has worked, as evidenced by the growing sales of Coors Light. According to Tom Pirko, president of the consulting firm Bevmark, the irrationality of the promotion is what makes it such a great marketing strategy. “What they have is this Pavlovian thing, where an image goes deep into your psyche,” he says. “It’s emotional, not intellectual.”
Source: Instructor Manual, Chapter 16, page 24
- After reading both the case study and Chapter 16, respond to the following questions in essay format.
- Your essay must include an introduction paragraph, a main section consisting of two or more paragraphs, and a conclusion paragraph. You must address all relevant parts of each question. The essay must be at least 200 words in length.
Your essays must include cited materials from the textbook at a minimum. Additional resources may be used. Make sure to cite any references you use. Proper citation format for a reference includes the name of the author(s), the title of the work, the date of the publication, and the page number. Be sure to review the grading matrix before you submit your essay.
Essay Questions
- Provide a brief summary of the case, including the key facts and business issues faced by Coors Light.
- Based on the details provided in Chapter 16 and the case, provide at minimum two key lessons learned in reference to marketing communications. Include details to support your analysis.
Submit your assignment, which is Lesson 9 Case Study in the Gradebook.
Reference
Armstrong, G., & Kotler, P. (2015). Principles of marketing. New York, NY: Prentice Hall.
