Over the last number of years Labatt Blue has lost a significant amount of market share. How does Labatt Blue reestablish itself as Canada’s leading brand of beer? SWOT Analysis:
* History of memorable campaigns.
“A whole lot can happen, Out of the Blue” is an example, with titles such as “Streetcar” and “Road Trip” as equally engaging ads.
* In-case promotions, giveaways, loyalty programs.
During the summer months Blue (and many competitors) are known for running promotions, which are the tactical activities used to stimulate purchases.
* Supportive of various events (CFL, NHL, etc)
The brand is the title sponsor, which gives them signage in the stadium, and national exposure during the televised games.
* Title sponsor of Winnipeg Blue Bombers
Since 1951, built strong customer relations, loyalty.
* Sensitivity to francophone culture
Blue is sold in all provinces, but has adapted to culture in Quebec by altering the name to Labatt Bleue and the logo to a red fleur-de-lis instead of the red maple leaf.
* Rich history as a former market leader
Branding ties product differentiation and consumption closely together. Creating an attracting image to draw in specific target markets was the main battle between Blue and Canadian to be market leaders. Weaknesses
* Weak in international markets
InBev decided to focus on other brands that they could market internationally, Blue wasn’t in that mix.
* Dropped to fourth in national rankings (2007)
Fell behind American brand beers such as Budweiser due to changes in the company’s direction of advertising spending, away from Blue. Ex: In 2003-2006, spending was at $7million/yr for Blue; Budweiser was at a $10million/yr range. In, 2007- Blue dropped to $4.4 million compared to Bud at $9.7 million
* Still continuing to lose ground in market share
* Recent history of ineffective marketing ad campaigns