Our Team

• Farhan Ajanee• Savannah Castro

• Channing Hockman• Matt Lejune• Jerry Martin

• Junior Yupanqui

Michelob’s History

• Michelob was developed by Adolphus Busch of Anheuser-Busch in 1896

• 5% ABV pale lager - supposed to be a “draught beer for connoisseurs”

• Began selling bottled and canned versions in the 1960s – known for the teardrop bottle

Michelob Ultra

• In 2002 the Michelob line introduces Michelob Ultrao4.2% alcohol (compared to 5% for

Michelob original)oLow in carbohydratesoMarketing geared towards athletes

• Michelob original and Michelob Light sales drop off – Ultra sells well

Current Brand Perception

• Perception for most consumers – Michelob only has one real product: Michelob Ultra

• In Michelob beer line only Ultra receives dedicated, heavy advertisementoUltra overshadows other Michelob

productsoMost people don’t even consider buying

original Michelob

Brand Positioning

• New positioning statement:oFor the older, more refined man,

Michelob is a pale lager with a crisp flavor. While other lagers offer a simple brew for the common man, Michelob offers a more complex, sophisticated flavor for the same price.

Brand Personality

• Separate Ultra and original Michelob personality dimensionsoGive Michelob original lager a distinct

brand personality to prevent confusion between Ultra and original Michelob

oEnergized Refined

Michelob Taste

• When Michelob initially launched, it was known for its great distinctive taste

• Results from the survey indicated that consumers usually value flavor the most for beer selectionoEmphasize this aspect in an effort to

broaden the brand imageoSelective taste and mature refinement fit

desired brand personality

IDEAS TO BUILD THE BRAND

Bar Promotion - Reciprocity

• Market the new Michelob Original Lager to popular bars that cater to our target group

• With the bars, offer free beer samplings and coupons for future purchases

“What’s Missing?” Ad – Zeigarnik Effect

• TV Commercials/Billboards o Air during prime time (after 7:00 pm)

• Building the brando Create awarenesso Brand perception appeals to target marketo Memory of Michelob brand

Completed message is positively reinforcing Active participation in message Jingle and pause strengthens Zeigarnik effect Zeigarnik effect for target market (High achievers)

*Michelob Original Lager Strategy – Reference Groups

• Target: Classic, refined men who are beer aficionados and who are looking for a beer to express their sophistication in society.

• M.M.oProduct: SophisticationoPrice: $9.99 for 12 packoPlace: Pubs, bars, storesoPromotion: Product placement (Mad Men)

Research Methods

• Conducted an online surveyoQuestions:

DemographicsBeer preferences and consumptionBrand personality

oPresented the survey as genericDiscouraged bias for/against MichelobAllowed for brand comparisons

Research Results

• 30 completed surveys• Michelob original one of the least tasted

oAhead of only Stella Artois, a much more expensive beer

• Few had strong feelings about Michelob originaloMixed perceptions of brand personalityoLack of brand knowledge for original

Research Results

• Analysis of individual responseso Perceived personalities of most favored beers

Successful, Exciting, Refined/SophisticatedoUltra perceived as more exciting and successfuloConfirms Michelob original strategy

Capitalize on sophisticated brand personality Help differentiate product from Ultra while

maintaining appeal

Conclusion

• Michelob suffers from an identity crisis• Michelob original lager should increase

marketingoTarget audience: older, refined menoReposition brand personality: ‘classic’oDifferentiate from Michelob Ultra

QUESTIONS?