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How not to position beer brands: Will Anheuser-Busch keep struggling?

9/29/2015

 
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Not long ago, Anheuser-Busch InBev "top brass" presented its global marketing seminar in China. Beer Marketers Insights quoted an attendee's notes on the global brand-positioning efforts for three of ABI's worldwide mega-brands:

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(Note: Outside the U.S., Corona is marketed by ABI.)
Sounds sort of reasonable, right? Targeting different brands... differently. So, what sort of "different need-states" that drive growth has A-B identified? They continued:
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There is no record of how the financial analysts reacted. Chances are, they were satisfied that the world's largest brewer had so carefully differentiated its big brands. No one appears to have raised a key criticism: "Can simply invoking these need-states really differentiate beer brands?"

By themselves, need-states have no marketing value

The fact is, these need-states could apply to any beer. Arguably to every beer. None of them is at all distinctive. They simply don't "belong" to any one brand. Want proof?
Each of the three featured ABI brands can, and in fact already does, lay claim to a need-state supposedly assigned to one of the others. 

Budweiser just spent a fortune promoting "Bud + Burgers," when the "food and savor" need-state was assigned to Stella. 

Corona features the "relaxation and bonding" territory that Budweiser was to represent.

While Stella Artois pretty much hits all three need-states in one commercial.

"Owning" a need-state by way of simple assertion is film-flam. Maybe stock-market analysts unschooled in positioning will fall for it, but savvy marketers know better.
To lay claim to a need-state, a beer must offer a relevant difference

The entire purpose of marketing is to cause people to choose one brand over others. To accomplish this, a beer brand must highlight a distinctive difference in its product, one compelling enough to interest those other drinkers. A real difference in the beer's ingredients, its brewing processes, its taste profile, its source, its brewing recipe. Something real to offer beer drinkers a reason to believe, and a reason to switch. 

Anheuser-Busch should already know this. After all, its hottest brand by far over the past few years focuses on the need-state surrounding physical fitness... linked to a beer that celebrates its low calories and carbohydrates.
Now, that's a need-state effectively claimed by a brand focusing on its relevant point of distinctiveness.

Coming soon

Before long, Bud Light--the faltering AB brand desperately in need of a powerful positioning--will unveil advertising from its newest ad agency. Reviewers will ask themselves: Is it funny? Is it memorable? Does it feature beautiful locations? Fun parties? Are there celebrities? Cool music? Hipness?

But the most telling top-line critique of Bud Light's new work will lie in the answer to one far more important question... 

Do the ads highlight a provocative difference in the beer?

The answer to that question will reveal what Anheuser-Busch really knows about positioning. 

Pay attention, stock-market analysts. You might learn something.

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The myth of corporate responsibility in alcohol-beverage marketing: How BuzzBallz get to the street

9/20/2015

 
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PictureThe sort of operation you might think would sell BuzzBallz: Smaller and more willing to set responsibility aside to make a few extra bucks
Our previous article awarded BuzzBallz the "Marketing Alcohol Irresponsibly to Millions" (M.A.I.M.) distinction. One reader expressed chagrin at those who would profit from such an unseemly brand. Said this Twitter follower, "Who would sell this product?" He implied that only small, shady, fringe operations would dare be so greedy as to look the other way to profit from the irresponsibility inherent in BuzzBallz. 

Turns out, it's not just small guys who are bringing BuzzBallz to the street.

Size matters

Southern Wine & Spirits is the largest alcohol-beverage distributor in the world, and in the top-ten of the largest alcohol-revenue companies overall. Its revenues from alcohol exceed $9 billion annually, three times the size of (Jim) Beam Brands, and larger than brewer Molson Coors. Many think of SWS as the class of the industry.

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Not surprisingly, this leading alcohol-beverage distributor is out-spoken about its commitment to responsible consumption of alcohol. Why, they they even have a "four pillar" program on the subject.

Listen to the father-son leadership team give voice to the company's responsibility commitment. They'd certainly not look kindly on the irresponsibility embedded in BuzzBallz. Right?

Talking the talk... 
... but slurring their words?
"We always advocate moderation."

Sadly, as is too often the case in the business world, this mega-distributor's soothing corporate-commitment speech is betrayed by profit-grabbing, responsibility-shirking action. In this case, by embracing the poster child of irresponsibly marketed alcohol-beverage brands: Southern Wine & Spirits enjoys exclusive distribution rights to BuzzBallz in seven states, including California. 

Anyone who suggests that taking on distribution of BuzzBallz was a rogue decision made at some lower level of the distributor is unfamiliar with how such companies work. The choice to distribute any brand is made, not at the bottom, but at the very top of the organization. The same guys on the video publicly proclaiming, "Take responsibility seriously," must have privately cackled, "Let's make some money off those crazy little BuzzBallz!"

Money talks. Responsibility walks.
And Southern Wine & Spirits isn't the only huge operation choosing profit over responsibility. Glazer's--the world's second-largest alcohol-beverage distributor with over $3.5 billion in annual revenue
--also distributes BuzzBallz. Their exclusive territory for the high-alcohol, quickie-buzz product includes eight states, not least of all their home state, Texas. 
Corporate irresponsibility

So America's two largest alcohol-beverage distributors bring the most irresponsibly marketed alcohol beverage we know about to the street in more than a third of the country. These mammoth distributors are very good at what they do, so watch for BuzzBallz at a high-school dance near you.

We ended our previous article expressing hope BigBeer had the balls to resist targeting young drinkers and encouraging irresponsible consumption by pushing BuzzBallz.

Who'd have thought BigDistribution had already traded their corporate-responsibility balls... for Ballz?

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    The Author

    Dan Fox is a real beer guy.

    For more than half his 30-year career at ad agency, Foote, Cone & Belding, he ran the Coors Brewing account. Leading a group of dozens of advertising professionals, Dan also personally wrote the Pete Coors "Somewhere near Golden, Colorado" commercials, designed the Coors NASCAR graphics, authored sales-convention speeches, and most important of all, formulated marketing strategy for virtually every Coors brand, including Coors Light, Keystone, Killian's Irish Red and more. His proudest achievement? "Our team had every Coors brand growing at once."

    Over his advertising career, Dan was personally involved in the analysis, planning and creation of thousands of ads for a variety of products and services. By way of this blog, he freely shares his expertise about what works, and what doesn't, when it comes to selling beer.

    If you're in the beer-marketing business--or just interested in the subject--you may want to read what "HeyBeerDan" has to say.

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