Molson Canada Social Media Marketing

Topics: Social media, Facebook, Marketing Pages: 17 (3175 words) Published: February 27, 2014
Molson Canada: Social Media Marketing

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Table of Contents
Executive Summary……………………………………………………………...

2

I. Key Issues……………………………………………………………………...

3

II. Analysis……………………………………………………………………….

4

III. Alternatives & Recommendation…………………………………………….

7

IV. Implementation………………………………………………………………

9

References………………………………………………………………………... 16

1

Executive Summary
Molson Canada has been facing negative reactions their recent social media marketing initiative, Cold Shots Campus Challenge. Parties claimed that this Facebook contest promoted irresponsible drinking behaviours among university students. As a result, Molson pulled the contest one week before the scheduled deadline. Now, Molson must evaluate the use of social media, specifically Facebook, in its marketing strategy. The available alternatives are to revamp the Facebook initiative, to focus on static webpages or to focus on traditional marketing strategies. The recommendation is to revamp the Facebook initiative over a period of three months with ongoing monitors and checkpoints. The projected cost of this recommendation is $75,500 initially, with recurrent annual costs of $36,000 per year. The advantage of this recommendation is that it can be easily expanded to include other types of social media, such as micro blogging, video sharing, photo sharing and online forums if the response to this project is positive.

2

I. Key Issues
Molson Canada faces four key issues moving forward from November 2007. The first issue is related to brand image. Brand image is the most important and urgent issue (see Chart 1) because of the negative feedback Molson received as a result of the Cold Shot Campus Challenge Facebook initiative. Molson is seen as promoting irresponsible drinking behaviour. In order to rectify the situation, Molson build and increase corporate social responsibility and continue to engage the community in a positive way.

Another key issue is customer loyalty. There many negative responses to the Cold Shot Campus Challenge. These responses revolved around the issue of privacy issues of Facebook users. Moreover, because of these unethical practices, customer loyalty to Molson brand may have been negatively affected. Customer loyalty is ranked as an issue of low importance and high urgency because Molson Canada has customer loyalty currently, having been around since 1796. It is ranked as urgent, because new consumers may be affected by the bad press Molson is getting as a result of the Cold Shot Campus Challenge.

Thirdly, competition is an important issue for Molson. Molson faces high completion both on the domestic and international level. At the domestic level, Molson’s main competitor is Labatt bear. At the international level, Molson competes against InBev NV, Anheuser-Busch and SABMiller. Molson has a strong market position domestically, so the issue of competition is rated as high importance, but low urgency. If Molson is able to successfully use social media marketing, they may see an increase in market share, domestically and internationally. Competition is ranked as high importance, but low urgency because it is an issue that can be dealt with in the long term.

3

Finally, profitability is ranked as low importance and low urgency in the issues matrix in Chart 3. Molson faces fluctuating costs of input material, such as barley, wheat and aluminium. In 2007 saw the price of barley fluctuate widely (see Graph 1). If Molson is able to successfully market their product online, then they will be able to increase sales, thereby offsetting these fluctuations in profit margins.

Chart 1: Ranking of Issues
Urgency\ Importance Low
Low
Profitability
High
Customer Loyalty

High
Competition
Brand Image

II. Analysis
SWOT Analysis
Strength
Strong Market Share
Strong Brand Image
Strong Revenue
Brand Loyalty
Opportunities
International markets (Asia, SE Asia)
Diversifying products/brands
Social...

References: Facebook. Timeline. Date Accessed December 4, 2011.
(http://www.facebook.com/press/info.php?timeline).
Barley Monthly Price. IndexMundi.
(http://www.indexmundi.com/commodities/?commodity=barley&months=60). Date
Accessed, December 4, 2011.
Molson Coors 2006 Annual Report. Molson Coors Brewing Company. http://phx.corporateir.net/phoenix.zhtml?c=101929&p=irol-reportsannual. Date Accessed: December 5, 2011.
16
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