Experiential Marketing In the Beer Industry

Madeline White COMM 386

Herb Ritchell 12/02/17

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I: Introduction

Marketing efforts for consumer products brands are done to ultimately create

brand loyal customers and increase customer engagement with a brand. In the beer

industry specifically, (however this occurs in most consumer products industries)

consumers are being bombarded with advertising messages across multiple channels

and now more than ever they are blocking out these messages. One-way

communication tactics which includes the majority of traditional marketing channels

such as print, TV, and radio, are getting lost in the clutter. Two-way communication is

highly effective at engaging consumers in an interactive brand experience that leaves a

lasting impression and subsequently creates brand loyal consumers. Bryan Icenhower,

president of WME experiential agency said in an interview with AdWeek that “What

takes traditional advertising weeks, months or years to do, we can do in a moment.”

This paper will analyze the role of experiential marketing, specifically in the beer

industry and its importance in engaging consumers, inviting them to interact with the

brand, and thus curating brand loyalty. Beyond the initial analysis of experiential

marketing, one objective of this paper is to identify the ways that companies achieve

success through experiential marketing campaigns. Additionally, another objective is to

discuss previous experiential marketing campaigns, and analyze the role that interactive

advertising will play in the future of the beer industry.

Understanding Experiential Marketing:

Experiential marketing can emerge as many different final products such as

concerts, digital experiences, comedy acts, and sports games. The possibilities are

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limitless. Shaz Smilansky in her book Experiential Marketing: a practical guide to

interactive brand experiences describes experiential marketing as “the process of

identifying and satisfying customer needs and aspirations profitably, engaging them

through two-way communications that bring brand personalities to life and add value to

the target audience” (Smilansky, 5). She outlines experiential marketing as the most

effective form of advertising and argues that all other communications channels should

be used to amplify the live brand experience. See Figure 1 for a visual reference of this

idea.

Experiential marketing is an umbrella term, meaning it is used to describe many

more specific terms in marketing. Event Marketing is a type of experiential marketing

when a brand puts on an event or markets their product at an event. This event can be

either open to the public or private. Field marketing is another type of experiential

marketing that is grassroots, which means it is a type of marketing that is specifically

targeted to local customers. One final term that I need to outline for this paper is

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sampling. This is when a brand engages its target audience through getting them to try

the product. With beer, sampling often comes with an education piece as well, were

trained professionals educate consumers about what goes into the product. Sampling

takes place at strategic locations and aims to achieve new customer engagement and

brand loyalty.

II: Current Context and Issues The Beer Industry:

The beer industry particularly aligns well with experiential marketing because

according to a 2016 Mitel report, beer drinkers main motivations for drinking are for

relaxation and having fun. Creating experiences that allow consumers to relax and have

fun are attainable goals of any event, and subsequently experiential marketing is a

natural channel to market beer. Figure 2 outlines Mitel’s past numbers and future

forecasts for total US sales of beer.

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Eleven companies dominate the majority of this industry, specifically Anheuser-Busch

InBev and MillerCoors are the two largest players. In 2016 Anheuser-Busch InBev spent

$1.92 billion on advertising, which is the largest advertising budget in the beer industry.

Brands of theirs such as Corona grew 23% in 2016. There is growth happening

everywhere in the beer industry and companies are continuing to innovate the way they

differentiate their brands from other beers because it is a very crowded sector.

Experiential marketing is key to brands differentiating themselves because there is so

much opportunity for innovation. CMO’s are expected to allocate 21-50% of their

advertising budgets to experiential marketing over the next 3-5 according to AdAge.

Audience + Attitudes:

Mitel offers in depth research about the types of consumers who drink beer, what

they like, and what they may be looking for in their product. It is important to understand

the beer consumer in order to understand how to tailor your experiential marketing to

them. Light beer is the lead category driver, as 47% of beer drinkers are drinking light

beer. As seen previously in Figure 2, the industry is growing. 28% of consumers are

buying more beer in 2015 than they did in 2014, and they attribute their increased beer

consumption due in part to a better selection of flavors and a better selection of craft

beer.

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Who Drinks Beer?

Although both men and women consume beer, the group with the highest

consumption rate continues to be men. This is very general to the entire beer category

and it is important to note that every beer has a niche market that may differ from the

average. For many beer companies, they see a lot of potential in female consumers.

Females are more likely to drink beer the younger they are, and therefore millenial

women are leading the way in female consumption. Beer is becoming increasingly

acceptable for females to drink, and the perception of beer as male dominated is

starting to change. Limited or seasonal additions to beer as well as local products are

the most important to women as far as features of beer they are interested in. 56% of

respondents also said that they are interested in and organic product as well. These are

insights that beer companies are looking at when developing new products, that may

have a target audience of women.

Millennials and Gen X’s are well above average for their consumption rate as

nearly half of them say they drink beer. Millennials as a customer group are driven by

variety in products and encouraging people to try the products. Therefore methods like

sampling become extremely important and highly effective in gaining new customers.

Millennials, specifically millenial men are the most willing to pay more for limited

additions of products and beer that is locally brewed. Hispanic men are more likely than

non-hispanics to pay more for innovation. 30-40% of Hispanic drinkers are willing to pay

more for new innovations in beer, and they are a prime target. In additional, people who

make more than $75k+ are more likely than the average to purchase beer. That is

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attributed to a greater disposable income. Light beer drinkers are more likely than the

average to drink for the motivation of having fun. Light beer specifically is often

marketed as a social drink that is perfect for casual social settings.

Issues Affecting the Industry:

All industries face challenges that they must overcome. In the beer industry in

America there is an influx of products, and not enough demand for all of the products.

Therefore, companies are constantly trying to retain new loyal customers and stand out

in the marketplace.

One issue that big breweries or domestic beer is facing is that craft beer is very

popular among millenials and is maintaining double digit growth. People are

increasingly driven to local beers, and companies are seeing a drop in drop in brand

loyal customers. Imported beers are also growing significantly which also attributes to

domestic beers losing share in the marketplace. There is also a rise of spirits drinkers

and many people are switching from beer to other drinks. Additionally, even though

there are large advertising budgets for some of the big name beer brands, there is so

much clutter in the marketplace that it is hard to make a significant impact with

traditional media.

Current Trends:

One current trend in the industry to continue to innovate their products to stay

fresh and engage their consumers. McKinsey and Company Marketing and Sales says

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that “Market trends over the last five years reveal volumes shifting away from core lager

products toward premium beers and/or value-based brands.” They argue that

consumers are increasingly drawn to beer that is either high end or low end, and less

drawn to brands who claim to be both. Many large beer companies such as MillerCoors

are acquiring new brands that appeal to more niche audiences and that are considered

more high end. With these brands such as their hard sodas, they are able to innovate

and create new flavor editions that peak the interest of consumers, all while continuing

to promote their large brands like Miller Lite which appeals to a more general beer

drinker.

In addition to innovating the products, they are also innovating the messaging

and packaging. One innovation trend specifically is going back to tradition. In many

ways this is used as marketing leverage that other more recently developed craft beers

don’t have. Miller Lite recently decided to switch back to their traditional can design from

the 70s. They are also creating commercials that show their history and evolution.

Messaging from companies like Anheuser Busch InBev is about their beer being

inherently American. They are playing off of the idea that their brands are so woven into

American society, that no craft or imported beer could ever claim to be as widespread

as they are.

Career Options:

In the industry, because experiential marketing is so multi-faceted there are

many different careers in which involve experiential marketing in the beer industry. It is

possible to work in an agency that specializes in experiential marketing and event

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planning for brands. If you are in an agency you can work on a beer brand and work

specifically with them to plan and execute their experiential marketing. It is also possible

to work for the client or company and do brand management with them. If you work for a

large client that outsources you can be incharge of working with the agency to develop

experiential plans that are the most in line with what the brand marketing objectives are.

Contrastingly, if you work for a smaller beer company, as the brand manager or event

planner you may directly planning experiential marketing for the company.

Types of Experiential Marketing:

The only requirement for a marketing plan to be experiential is that it is an

experience that consumers can engage using their senses. There are four

subcategories of experiential marketing that are identifiable as types of experiential

marketing product showcasing, an immersive experience, stunts, and business services

and innovation. Showcasing a product is a direct form of marketing in which the product

is shown and offered to consumers so that they can engage with it. In the beer industry

this is done most commonly through sampling. An immersive experience is another type

of direct marketing that involves brand engagement. This can be anything from virtual

reality to putting on a concert. Stunts are also experiential and are usually done to

generate content that can then be pushed via all other social channels. They usually

have a small number of people who are actually experiencing the stunt, but it can be

used to convey messaging via word-of-mouth and other social channels. The stunt

therefore has to be meaningful in order to receive secondary reach. The stunts are

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usually very creative. Finally business innovation is a type of experiential marketing that

usually takes place over a long period of time. It most likely promotes a brands

messaging and often involves forms of service and philanthropy. Some consumers are

engaging with the marketing, but it may not appear to be marketing to them. The

majority of the marketing afterwords comes from the social push of accumulation of the

innovation.

III: Best Practices:

Anheuser-Busch has a very large

advertising budget, and continues to lead the way

in experiential marketing for its customers.

Budweiser, their best selling brand, has created

multiple activations that have convey the

company's brand messaging of “Brewed The

Hard Way,” and “Made in America.” In the

summer of 2016 Budweiser created an immersive experience by creating the Budweiser

country club that appeared at four country music festivals around the country.

Budweiser has been known to align with music, but country music specifically has

themes being very American and their messaging fits very well with Budweisers. The

country club included many different ways that festival goers could experience the

brand. There was two twenty foot bars, and a second floor where consumers could

have a better view of the festival. There was also education centers where Budweiser

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brought in local brewmasters to answer any questions that customers had and show

them how the product is brewed. They also had a koozie station where customers could

create their own branded koozie with their initials on it. In addition, there were different

american made products from craftsmen around the country that customers could

browse through while inside of the country club. There were also outdoor games in the

back of the barn with picnic tables and extra seating. Through this experiential

marketing campaign, Budweiser really creating a lasting experience for its customers,

that connects back to at home and bar sales.

Another beer company that did

an experiential marketing campaign

was Heineken. In 2013 their advertising

budget was $330 million in the US. This

was a stunt that they did in the JFK

airport that promoted their international

brand as well as encouraged people to try new things. The stunt took place in an airport

where they challenged people to push the button, drop their current plans, and travel for

free wherever the board tells them they will go. The campaign was pushed across social

media channels, and included a hashtag as well. There was a viral video made as well

to reach further than simply those at JFK that day. This is a great example of an

experiential marketing stunt because it was creative and shocking to people.

The final example of an experiential marketing campaign is from Miller Lite. This

campaign was done in 2016 where Miller Lite’s advertising budget was $130 million. In

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the summer of 2016 they created their

Summer Kick Back Series which was a series

of experiential marketing efforts designed to

encourage consumers to enjoy their summer.

They did everything from creating branded

sunscreen stations, to creating on the spot

content to fly above beaches, conveying their

messaging that they have your back. Their

activations were innovative and cleaver, and gave

many people the opportunity engage with the brand in a way that felt natural.

IV: Future Challenges/ Opportunities & Conclusions: Major Challenges:

One of the major challenges in experiential marketing in general is that it is

sometimes hard to measure. Without using social channels, engagement can be

measured through the number of attendees, or the number of people who directly

interacted with the experiential marketing effort. Smart marketers would use

Smilansky’s method as shown in figure 1 to push the marketing effort across all

channels making it a truly integrated marketing campaign. Using a hashtag is a great

way of measuring engagement as well. Creating a video that receives a lot of views can

provide a monetary number for how many people saw this brand experience. However,

it is important to note that experiential marketing is aimed to create word-of-mouth

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engagement as well, which is not necessarily measurable but highly effective. When

consumers tell friends to purchase a product they are much more likely to do so versus

when advertising tells them to do so. Another way to measure success is through

increased sales in those locations and an increase in following on social channels.

This paper specifically outlined the the importance of constant innovation not only

the products but the way they are marketed as well. Consumers are looking for

something different, and are willing to pay more for something that they haven’t tried

before, but the challenge is staying relevant and innovating can be very expensive. It

involves constantly assessing what is working and what isn’t and staying on top of

trends. Brands have to dedicate a significant amount of their budget to new product

innovation and product line extensions in order to keep customers engaged. Small

breweries need to spend time finding niche markets who are brand loyal and will

promote the brand to their friends via word-of-mouth.

Opportunities For A Creative Project: For a creative project to accompany this paper, there will be an integrated marketing

communications plan for a company - most likely MillerCoors or Corona that outlines

how they can better use experiential marketing during the 2018 winter season. This plan

will include different opportunities backed it up with research about what works and

what does not work. Corona is a perfect company to do this with because they have a

large advertising budget. In addition, they have done experiential marketing in the past

and have proved that they understand its value. This project will think above and

beyond, and outline the details that go into planning an experiential marketing

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campaign. This campaign will then be passed along to the marketing department of

Corona and hopefully aid them in planning next year's activations.

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V. References

Advertising Age, and Kantaar Media. “Anheuser-Busch InBev: Ad Spend in the U.S. 2016 | Statistic.” Statista, Statisa, 2017, www.statista.com/statistics/192158/us-ad-spending-of-anheuser-busch-inbev/. Bloom, Beth. “Beer in the US.” Mintel Reports - Mintel Group Ltd., Mintel, academic.mintel.com/display/760921/. Boucher, Rachel Kirkpatrick. “Budweiser Crafts a Country Music Festival Strategy.” Event Marketer, Event Marketer, 18 July 2016, www.eventmarketer.com/article/bud-country-music-festival-strategy/. Cavato, Gina. “Market Perspective.” Marketing to Sports Fans - US - September 2017 - Market Research Report, Mintel Academic Reports, Sept. 2017, academic.mintel.com/display/793939/. Davidge, Joss. “Miller Lite Takes to the Beach with Experiential Roadshow.” Because, Miller Coors, 10 Aug. 2016, www.becausexm.com/blog/miller-lite-takes-to-the-beach-with-experiential-roadshow The Experiential Marketing Forum (EMF) and SpaceandPeople. “The Experiential Marketing Forum (EMF) and SpaceandPeople: New Research Partnership: The Experiential Marketing Forum (EMF) and SpaceandPeople.” PR Newswire: News Distribution, Targeting and Monitoring, 5 Aug. 2014, www.prnewswire.co.uk/news-releases/correction---the-experiential-marketing-forum-emf-and-spaceandpeople-new-research-partnership-the-experiential-marketing-forum-emf-and-spaceandpeople-269977441.html. Heineken, director. Heineken Departure Roulette. Heineken Departure Roulette, July 2013. “Heineken: Ad Spend in the U.S. 2016 | Statistic.” Statista, www.statista.com/statistics/308557/heineken-advertising-spending-usa/. IBIS World. “IBISWorld Industry Report.” Beer Wholesaling in the US, IBIS World, Mar. 2017, clients1.ibisworld.com/reports/us/industry/default.aspx?entid=991#prettyPhoto. Jawbone Blog. “Experiential Marketing: Communication a Brand through a Unique Experience in the Real World .” Jawbone Brand Experiences, Jawbone Brand Experiences, 19 May 2017, www.jawbone.co.za/different-types-of-experiential-marketing/. Loughlin, Sandra. “How Alcohol Brands Are Adding Flavor to Their Events.” Event Marketer, Event Marketer, 4 Jan. 2017, www.eventmarketer.com/article/nine-ways-alcohol-brands-are-adding-flavor-to-their-event-portfolios/.

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Maskeroni. “How the Budweiser Garage Brewed Up an Immersive Experience for SXSW Attendees [Video].” – Adweek, Adweek, 15 Mar. 2016, www.adweek.com/brand-marketing/how-budweiser-garage-brewed-immersive-experience-sxsw-attendees-video-170177/. McKay, A., et al. Brand Activation: Implementing the Real Drivers of Sales and Profit. Alex McKay, 2015. Natavidad, Angela, and MillerCoors. “Miller Lite Is Surprising Fans With Unexpected Activations Across the U.S. This Summer.” – Adweek, Adweek, 2 Aug. 2016, www.adweek.com/creativity/miller-lite-surprising-fans-unexpected-activations-across-us-summer-172768/. Notte, Jason. “These 11 Brewers Make up 90% of All U.S Beer.” Market Watch, Market Watch, 28 July 2015, www.marketwatch.com/story/these-11-brewers-make-over-90-of-all-us-beer-2015-07-27. Passport. “Anheuser-Busch InBev NV in Beer (World).” Euromonitor International - Passport, Passport GMID, July 2017, www.portal.euromonitor.com/portal/analysis/related. Pathak., Shareen. “Just What Is Experiential Marketing, and How Can It Be Measured?” Ad Age, 11 Mar. 2014, adage.com/article/agency-news/experiential-marketing-measured/291972/. Perrett, Michelle. “Ab InBev Boots Marketing Spend for Budweiser, Stella Artois and Corona.” Camagin, Camgain, 26 Feb. 2016, www.campaignlive.co.uk/article/ab-inbev-boosts-marketing-spend-budweiser-stella-artois-corona/1385223. Roderick, Leonie, et al. “Carlsberg Plots Biggest Experiential Push Yet to Keep Beer, Not Just Chocolate, Top of Mind at Easter.”Marketing Week, 23 Mar. 2016, www.marketingweek.com/2016/03/23/carlsberg-on-the-method-behind-the-experiential-madness/. Statista. “Miller Lite: Ad Spend in the U.S. 2016 | Statistic.” Statista, www.statista.com/statistics/317426/miller-lite-ad-spend-usa/.

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Professional Associations in the Industry: Brewers’ Association of America

This association has over 1,900 US brewery members and its sole

purpose is to promote and protect small independent craft brewers

and their communities.

Master Brewers Association of the Americas

MBAA was created in 1887 and has over 2,700 members in 55

different countries. It is a global non-profit organization that

aims to promote and advance the professional interest of brew

and mal house production. They do this by exchanging

knowledge, and providing professional help and opportunities.

Experiential Marketing Forum

This is the largest global community of experiential

marketing associates as they have over 20,000 members.

They are focused on fact-based research methods and the

development of experiential marketing.

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Name: Megan Lagesse Title: Director of Internal Strategy and Planning Company: The High End at Anheuser-Busch InBev Date of Interview: 11/17/17 What is your background?

She graduated from Loyola University in 07 during the recession. She interned at Red Chicago, boutique agency, where she focused on restaurants. Then she went to Edelman and worked on multiple CPG’s, including SC Johnson, Quaker, Starbucks. After Edelman she was hired at goose island, because Anheuser Busch started acquiring craft breweries. She now works on high-end that craft beer and she enjoys the craft environment. How do you feel that marketing in the beer industry is different from other consumer products industries?

“The craft beer industry relies on experiential marketing more than any other business I’ve seen, it’s an effective way to share your culture and tell your story.” Megan feels it’s very important to be creative and connect with consumers through events. She feels events build stronger connections. Do you feel it's more or less restrictive?

“This industry is very restrictive goes back to prohibition, and some states still have prohibition laws in place.” She explains “You have to have a lawyer with you whenever you do events. There is a whole legal process of registering your beer, its restrictive”. You can not market to people under 21 the ads and labels in no way would cater to someone who is underage. In addition they can never promote overconsumption. They promote alcohol responsibility. What is experiential marketing to you?

Megan believes, “its creating an experience for consumers that taps into the culture and history of the brand that gives them something to come back to”. Why is it especially important for a beer company to do experiential marketing?

“The beer category is blowing up, there are over 5,500 beer categories, they need to find ways to stand out and things to own”. What is an example that you know in which experiential marketing was very successful?

Goose Island hosted a secret concert on a hop farm where Wilco played, it tied back to goose IPA. They did it on an elk mountain farm in Idaho, created a camping experience to apply for a contest to win. Girl and Goat catered the experience, and they had different writers and lifestyle people there promoting and blogging about it. What advice do you have for a young professional who wants to get in to this industry?

A lot of beer companies ask for volunteers and brand ambassadors. Building relationships is key, it's an interesting welcoming industry. “Don't be afraid to talk to people and grab a beer with them.” She stressed in person interaction and relationship building.

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Name:Candace Calandriello Title: VP Media Director: MillerCoors Account Company: Publicis Media Date of Interview: 11/13/17 What is your background?

She has a background in media planning and buying, and the strategy. She buys spots locally for MillerCoors. Before Miller she worked on national strategy for Kellogg and Kraft. She is also an Adjunct professor at Trinity College How do you feel that marketing in the beer industry is different from other consumer products industries? “You can’t advertise to minors, more experiential of an experiential product than other CPG’s, a very social thing. They go to beer for different reasons, relax, celebratory.”

1) Age restrictions 2) it plays more to integration to consumers than other brands. Lends itself well to experiential.

Events play a different role and feel more organic, what is the brand voice. “If it is more intrinsic more successful.”

Do you feel it's more or less restrictive?

There are age compliancies. “If the network is made up of 72% over the age of 21 otherwise we will not run on it.” She explained that it is self regulated, they are very careful so they don't become like the cigarette industry where they can no longer advertise. What is experiential marketing to you? “The way that we think of experiential marketing is as follows.” 70% is going to bring back strong returns 20% is how to execute different 10% innovation → experiential “It is very hard because there is a part that is unpredictable, a long term brand driver. “ When she runs a TV spot it is immediately on the air and top of mind. Brand building long term, is a sort of balancing act . You might not see immediate sales it’s a long term play - they are not turnkey or “easy to execute” when it does work it tends to be quite impactful. How does MillerCoors do experiential marketing?

Events: Radio, local DJ’s doing sweepstakes with digital which is event based. Sport alliances...they are a sponsor of the Chicago Bears, we will promote that partnership and sometimes at home games Millercoors has different people trying to get them to interact. Free merchandise - they work with partners, buy their spot on a radio station and a part of that will negotiate their latest DJ out to market on behalf of millercoors. What is an example that you know in which experiential marketing was very successful?

MillerCoors is doing know your beer, a blind taste test of Miller vs. Bud light right now experiential: very successful and conversion. ¾ times people pick Miller Light.

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Name: Dan Langert Title: Senior Marketing Manager: Media & Digital Company: MillerCoors Date of Interview: 11/15/17

1) What is your background? He has a bachelors from Iowa and started in the advertising industry at BBO and learned the basics of media planning and buying there and worked at a bunch of different places and started getting involved in IMC. “My niche is client service.” “I was overseeing the Miller brands at the media agency and when there was a change they asked if he was interested in working at MillerCoors.”

2) How do you feel that marketing in the beer industry is different from other consumer products industries?

“Similarities and some pretty big differences as well. Similarities these are all packaged goods in pretty much the same outlets, part of a shopping trip just like buying milk cheese and bread.” Differences: the legal drinking age, and the method that you get your product to shelve, they sell them to the distributors, there are two layers of selling, convincing the distributors about how things are going to be better or make their job easier, and then do the same thing for the retail partners. Marketing to the distributors - send out communication to keep them top of mine, special meetings and rallies to get them excited about what they are doing. “It is a three tiered system.” Can you talk about why you chose to do an experiential activation at Navy Pier?

1) Top line, they are trying to elevate the experience that people have when they are in our branded destinations. Bar experience at a miller lite bar from the 80’s. So they have been investing to modernize the branded destinations, tap room, a space at a stadium or a train station,

2) Navy pier in the past two years and talked about the future vision for navy. If you havent noticed they are overhauling and they are drying to make it a dual destination and have fun with your family for chicagins and make it a destination for tourists. Heighten the visibility in chicago, miller lite is a brand to enjoy with your friends. Miller time is about enjoying the time with your group of friends. Its that or stadium clubs to make them more like social spaces.

Are you still aligning with the NFL and other sports even with their low ratings?

They are spending the lowest investment in pro football in a decade, as far back as they can see. They have shifted away from intended consumer or just younger men, to adults over 21 and with that they now advertise on different television. And YouTube more than doubled that came from television ad that they moved, their social spending. “We are advertising heavily on snapchat and spent a ton on Facebook and Instagram.” How do you measure the consumer engagement in experiential marketing? “Goals of number or interactions, they were looking at if they want to sell a certain amount of product.”They are converting, and they need time. They are very costly and takes a lot of time and coordination, and execute. But maintaining consistency with traffic is important and they are receiving individual conversions.

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Name: Tom Schultz Title: Vice President Company: Tyler Sales Company: Anheuser-Busch InBev Wholesaler Date of Interview: 12/2/17 What is your background?

“Been in the beer business 1984, with the wholesaler and always with Anheuser Busch and spent most of the time in Michigan.” “I started as a sales manager, and VP general manager, oversee sales and operations.” How do you feel that marketing in the beer industry is different from other consumer products industries?

It is very much consumer focused, experiences and excitement for the brands and the ability to choose so many different brands. It's very competitive business, at the wholesale level. Brewery level, creates the demand through advertising and packaging….their job is the push the product through in store displays. “One of the keys is getting your product available. They divide their business to on premise and off premise….bars restaurants, events, stadiums (consume product on premise) off premise, party stores, super market, meijer, kroger, speedway, 7-eleven. The business is about 80% off premise and 20% on premise. “50 60 years ago 50%50% even more so in the bars. A lot of it is drunk driving laws. The key in the off premise, shelf space, the more of your products that you have the on shelf the apt the consumer is to use your product. Big debates: Miller, new packages, and it allows them to get another skew on the shelf. If you go into a store you'll see 20 different packages of Bud Light. “What sells through the cash register is all that matters.” Craft beers are growing but they are still less than 10% of the business. Why is it especially important for a beer company to do experiential marketing?

“Consumption is the highest for the 21 to 27 demographic, the older generations still drink beer but not like they used to. “ It is still a primarily male dominated industry. Younger people at that age are active, they love events. They need to be there and create excitement so they grab their brand. Purchasing set, they may drink craft but they want to make sure that they are drinking their brands. By creating experiences, and reasons for people to drink. That helps them to get people to try the products. Bush is the king of it, they have the majority of sports sponsorship. What sets Anheuser Busch apart?

From the brewery it's the quality of the product. Craft consumers don't appreciate, the true craft brewers they know that budweiser, they are making lagers and they are much harder to make. Anisher bush and connected with the consumers, they became the #1 brewer in the 70s and Budweiser was 25% of the whole market.” Busch has been at 90% of the local festivals in the area, it's something that they work hard and control. At the end of the days its been marketing, Busch was bought in 2008 but InBev they are good at cutting costs and being efficient.

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Name: Frank Wirth Title: Advertising Professor Company: Loyola University Chicago Date of Interview: 11/17/17 What is your background? He worked at 7-eleven which was one of the biggest: they were the largest retailer in the country for beer sales. “Total business was about 11 billion, beer was a billion category and cigarettes.” I worked there about 13 years ago. How do you feel that marketing in the beer industry is different from other consumer products industries?

“They are probably a little less price reliant” In beer they don't have to promote as deep, Convenience stores don't have to promote as much, whereas a store like Binny's have to go a little lower. Only promoting one brand, for instance anheuser busch at a time. Then for that week or two he wouldn’t have Miller on deal, because they are conflicting promotions they want to get their brand featured. “The promotions are primarily price. Anheuser Busch did “pick a pair,” where they sold you two and gave you a deal. If Budweiser has 30% share then they are going to get 30% of the space. They may get more depending on the size of the store. It's the sales peoples job that the more space they have in the cooler the more they are going to sell, they are fighting for presence.

1) Space allows them to sell more beer 2) Also takes sales away from their competitors.

What advice do you have for a young professional who wants to get in to this industry? “Try to get into the sales department of a major brewery. The beer companies have always tried to bring people who are in house. Start in sales, learn about all of the different channels, grocery convenience stores, liquor stores. Then you can bring them in house.” “ Beer is a category where it all happens on the street, you need displays and competitive prices. #1 brand in a convenience store is in the 1st door you come to. #1 selling beers are in the front of every store How do you feel beers like Corona fit into the marketplace? They are still seen differently than a Miller Lite is seen. They position themselves as imported and different, you must consume them with a lime. That makes them slightly more classy.

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Advertising Strategy for Corona Lite

Corona is the leading imported beer brand in the United States accounting for

30% of the market share in the US (Mintel). Corona’s most recent taglines for their

advertising efforts are #ThisIsLiving and #FindYourBeach. Corona markets themselves

around a mood that they wish to create. In doing so, consumers choose Corona to feel

relaxed, like they are taking a break. Much of experiential marketing, specifically with

the find your beach campaign is done in the summer because it lends itself well to

Corona being associated with summer beach activities. This marketing campaign will be

focused on encouraging young millennial professionals in the cold winter seasons to

enjoy Corona as a way to kick back and relax and remind them of the summer months

ahead.

Marketing Objective:

The marketing objectives for this experiential campaign are SMART. Which

means they are specific, measurable, achievable, realistic, and timed. Throughout this

campaign these objectives will act as goals, that will be achieved through the successful

execution of experiential activations.

1. Increase market share of imported beers in the midwest by 10% by the summer

of 2018.

2. Increase sales in the midwest by 15% by the summer of 2018.

3. Increase all social media following by 8% summer of 2018

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Advertising Objective:

The advertising objective is to encourage brand switching and enhance consumer

engagement with business professionals living in midwestern cities in the winter

months.

Target Audience

Demographics: This campaign will target young professionals ages 21-35 in

cities around the midwest who drink beer. These people will be diverse in race and

background, as Corona is the best selling beer among Hispanic Americans and is the

second most popular imported beer among African Americans (Mintel). This campaign

will target men and women, with a focus on appealing to active and adventurous

people. The average household income of this campaigns target audience will be

$65,000 or more.

Psychographics: The target audience of this campaign are people who work very

hard at their job, and have to cut out time for themselves to relax. They don’t

necessarily watch cable television and may not have children yet, but they are climbing

the corporate ladder. They find fulfilment in their relationships and enjoy traveling, but

don’t have to finances or time to dedicate to vacations. On the weekends they enjoy

being social and active, but they understand that in the cold winter months that is

increasingly difficult to do. They love winter, but miss the activeness of the summer

months. These people enjoy craft beer for the experience and uniqueness. They are

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familiar with Corona and have tried the product, but need an extra push to drive

purchase and brand loyalty.

Competitive Frame:

This campaign will aim to take sales and market share in the midwestern cities

from Heineken, Modelo Especial, and popular local craft beers from companies like

Goose Island. Although Corona is the leading imported beer in the US, they can

continue to improve sales through appealing to people on an emotional level.

Current Position

Below are quotes from the target audience regarding how they feel about Corona.

“It reminds me of my vacation when I drink it.”

“I like to drink it on special occasions but not all the time.”

“I only really drink it in the summer.”

“I prefer it over Bud Lite and if I am going to buy a cheap lite beer I want Corona.”

“I don’t like how you have to have a lime in it or it tastes like nothing.”

“It’s very smooth.”

“I associate Corona with happy hour and margaritas.”

In general the perception of Corona is that it is different from any

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Consumer Promise

The key benefit that will be conveyed throughout this campaign is that Corona

will make you feel relaxed and calm when you drink it no matter what the season.

Consumers will feel like they are on vacation when they consume Corona.

Reasons Why

The consumer promise is as such because Corona aligns themselves with a

mood rather than a specific taste, or quality. According to a report done by Mintel about

drinking behaviors, the most common way that people choose what and when to drink is

based off of their mood. By Corona positioning themselves as a drink that makes you

feel free of responsibilities, they are creating an association of pleasure and therefore

entering the consumer's consideration set when they are feel they want to relax. Corona

sales are traditionally much higher in the summer months, creating meaningful

activations throughout the winter will help drive sales.

Tone & Manner

This message is going to be conveyed primarily through experiential activations

that are supported by social media, and local traditional media. These activations will

take place in Chicago, Milwaukee, and the Twin Cities. They will be witty and fun tone

with a focus on standing out and inviting people to engage. The rhetoric will be focused

on Corona “Brining The Beach to You.”

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Measurements:

This campaign will measure engagement by the number of people who attend the

activations, and the increase in social media following and engagement through the

hashtag #CoronaEscape. It will also be measured by the increase in followers on the

social channels from midwestern states.

Advertising Strategy:

The campaign will be centered around the hashtag

#CoronaEscape which aligns well with the goals of this campaign.

The first element to the campaign is to create a specialty winter

bottle for the three specific cities where the activations are taking

place, Chicago, Milwaukee, and Minneapolis. Each bottle will

feature the outline of the skyline of each city with snowflakes all

over the bottle. These bottles will initially only be found at the

experiential event activations. After all of the activations are over

the bottles will be distributed to bars around the city, where they

will continue to serve the exclusive “Chicago Winter Bottles”

throughout the winter. When you post a picture of yourself and the

bottle with the #CoronaEscape you will be entered to win a

vacation to a warm place in Mexico. This will be advertised on the

back of the bottle and through posts on instagram as well.

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The first activation will take place in the business districts of all of the cities

specified in the months after December. There will be a Corona themed pop-up Hut that

will read “Escape The Cold Chicago, Come inside to warm up!” Inside the hut there will

be sand all over the floor with a masseuse and games like corn-hole and beer pong. It

will feature lounge chairs heat lamps, and the city winter themed bottles. This hut will

open during rush hour when people are coming out of work. The hut will also be

featured in multiple local midwestern winter festivals, such as the Twin Cities Winter

Festival.

Finally, people will see the hut at the Super Bowl

tailgate in February in Minneapolis.

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There will also be a #CoronaEcape train that outside of the train in the cities. This

train will have Corona posted all over it and will feature beach lounge chairs. The inside

of the train will say “Escape the Cold.” and encourage people to look for the “Corona

Escape Huts.” around their city. The featured bottles will be posted around the train cart

and the floor of the train will look like sand while the walls will look like a tropical

paradise. Inside Jimmy Buffet will be playing to heighten the mood.

Why This Campaign Will Succeed:

There are many reasons why this campaign will be successful. Firstly, it will be

activated during the cold winter months where people are craving warmth. When they

come on the train it will make them feel a relaxed and nostalgic of their past vacations.

The train activations will encourage intrigue by alluding to the escape hut located

around the city. There is a call to action to find the hut, to receive the limited edition

Chicago glass and post it to receive a free escape to Mexico. During the winter months

in the midwest, experiential marketing is less common so this will be a refreshing

change.

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