The issue with being Blue
The problem with Labatt Blue is it does not appeal to the young drinkers of today’s generation and these young drinkers take up a large majority of the beer drinking sector. For example, ten years ago one would see their parents drinking newer brands that come after Labatt Blue and could have influenced present young drinkers to drink that brand. Although Labatt Blue is still sold in most liquor stores, it will most likely be overlooked by people because of how unfamiliar it is to the current drinking population. The only reason, in my opinion, Labatt still exists is because of the over-40 group that grew up with the brand and still see it as a delicious beer in their books. Labatt Blue needs to step up their game and find a way to appeal to those younger crowds if they want to stick around to see another decade. Situation Analysis (SWOT)
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Labatt Blue is Canada’s best selling beer
Blue has lost a significant amount of market share
Weak in international markets
Is not the leading marketing mix chosen by the owner
Blue has the advantage of being an older brand that was once very popular and could make a comeback with any new product Since Blue was big for older crowds it could still use those older people to influence younger drinkers to choose Labatt Blue over other beer brands A simple slogan could shed light on Labatt and make it popular amongst young crowds Have established clientele in Quebec and this is an valuable market Threats
Other larger brands have dominated the market
Other smaller brands like Moosehead are becoming more popular Labatt Blue’s market share is still very low
1) One way Labatt Blue could resolve their problem is by speaking with their marketers to find a way to steal demand from other competitors. Instead of trying to get new buyers they need to get people buying other brands to switch to Blue. The pros are that they could develop brand loyalty and once again acquire larger market shares. The cons are that people could easily switch over from Labatt Blue back to another brand.
2) Labatt Blue could use their loyal customers in an advertisement with their brand versus someone with a competing brand. They do not have to oversell that Blue is better, they just need to prove that it is a strong brand that deserves its share of new customers. The pros are acquire acknowledgement that Blue is around to stay for the future. The cons are it could backfire cause Blue’s market share to plummet even further.
3) One other solution is that Blue could completely change their look of the bottle to something more appealing to people. The pros are that they could acquire a new demographic and create gossip about Labatt Blue. The cons are that people who are already customers of Blue may not recognize it and it would also put a hole in their pockets to fund such an endeavour.
The third solution would solve Labatt’s problem if they could find the right group to sell to. Labatt Blue needs to use promotion very carefully if they use this option because in order to appeal to the younger demographic they would need to endorse their product with a celebrity of some sorts that also appeals to them. Along with new labels it will likely appear to be a new brand and will catch the population’s attention enough for them to search the brand and learn more about it. Because of Labatt Blue’s history it should make it easy for them to noticeably get back on the market once again and dominate the Canadian beer industry. Summary Plan
1. Increase market shares & profits
2. Focus on a new demographic
3. People who are buying Labatt Blue’s competitive brands
4. “If you’re drinking, you better be drinking the one and only, Blue” 5. Promotion - Use social media to attract people and experiment around Canadian cities to see if people like the new look. Have a large contest in Canada that guarantees a year supply of free beer to the winner. Create a competing commercial against other brands. Product - Change labelling, but keep the same, great taste. Copy some of the other brands ideas like the resealing bottles to keep some familiarization with the population. Price - Have price just barely under competitive brands just enough for people to notice the deal. Lend out discounts with cards to people who sign up for Labatt Blue online. Place - Send out new Labatt Blue to every liquor store and bar across Canada first and find an exporting business that will send out into America.
Labatt Blue’s major problem is they are not sticking close enough to today’s generations appealing nature and what younger drinkers like to see on the alcohol they are consuming combined with its taste. Blue should bring together smart, experienced marketing strategists to get the best way for Blue to get out the word to the media that their brand is the next big thing. Blue’s main focus should be on the group of people buying other brands and to get their focus off their current desired brand.
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