By: Durai Haakstad and Jen Lepp
For: Joanne Balance
September 25,2014
Labatt Blue SWOT Analysis
Situation Analysis (SWOT)
Strengths:
Brewed in Canada (London, Ont.)
Offers a midrange price.
The tag line “Out of the Blue” is very well known and promotes being spontaneous.
Spreading product to an international market by being owned by a Belgian based company, InBev.
The commercials presented are witty and engaging to younger consumers.
Blue is a beer that the older generation grew up with, it is a part of our Canadian heritage.
Weaknesses:
Labatt seems to be in Molson Canadian and Coors shadow.
Shares dropped 4 points in 8 years.
Being owned by an international company (InBev) could cause Canadians to stray from Blue and stick to Canadian owned companies.
Need more promotional items/events all year.
Current advertising only markets towards young males.
Logo isn’t as familiar as Molson Canadian and Budweiser.
Has strong ties with NHL and CFL but aren’t using these opportunities to advertise or promote Blue.
Promotions are mainly done in the spring/summer season.
Opportunities:
Open up the target market to all Canadians (young, old, male, female)
Create new products: flavored beers.
Using their ties to the NHL and CFL Labatt could do more promotions during these game seasons, resulting in more Blue drinkers in the fall and winter.
Labatt could join in the experiential market sector as Coors and Molson have done in the past and create a Labatt event.
Threats:
Other beer companies, international and local.
Baby boomers are aging and they are a large group of the Labatt and alcoholic beverage market.
Target Market:
Labatt Blue’s main target market is young males (“twenty something’s”).
Recommendations:
Labatt could open up their target market to include all Canadians.
Example: A commercial showing a grandfather passing down Labatt to his grandson, playing on tradition.
Example: Switching gender roles. Another