CASE #3: Coors Light (chapter 15)

Brewing companies face a changing, challenging market. Large brewers like AB InBev, MillerCoors, and Heineken still hold the majority of market share around the world, but their sales are beginning to slip due to competition from wine, hard liquor, and consumers' rapidly growing preference for artisanal craft beers. Even in this declining market, there is one exceptionMillerCoors' Coors Light. This beer recently overtook Bud Light as the second-best selling beer in the U.S., and is the only top ten selling beer to post consistent growth in the past decade. This has contributed to sustained success for MillerCoors, which has seen revenues climb 4.3 percent in the past year to $2.2 billion.

What is the secret to the success of Coors Light? It's not a change in the product, since the beer tastes the same and has been manufactured the same way as it has for decades. The success of Coors Light can be wrapped up in one word: cold. It's the core message of the promotional campaign surrounding Coors Light; that it is the coldest, most refreshing beer in the market. According to CEO Andrew England, "We literally said, 'Okay, we're going to do nothing but focus around cold.'"

On one level, MillerCoors' focus on cold is a bit silly, since any beer of any brand will only be as cold as the refrigerator in which it's stored. Yet, the campaign has worked, as evidenced by the growing sales of Coors Light. According to Tom Pirko, president of the consulting firm Bevmark, the irrationality of the promotion is what makes it such a great marketing strategy. "What they have is this Pavlovian thing, where an image goes deep into your psyche," he says. "It's emotional, not intellectual."

Nicholas Kusnetz, "MillerCoors Took Taste Out Of The Equation And Made Cold Unique," Fast Company, September 12, 2012, www.fastcompany.com/3000877/millercoors-took-taste-out-equation-and-made-cold-unique (Accessed March 26, 2013).

Tell the reader about MillerCoors - talk about its history, how it began, and what the company and product looks like today

Why does Coors Light's claim as the coldest beer on the market represents a competitive advantage?

Most people already know about Coors Light. Does the company's "cold" campaign serve to primarily inform, persuade, or remind consumers?Why?

What stage of the product life cycle is Coors Light in? What should the goal of its advertising be?

How is Coors Light doing today?What is their market share?What is their place in the beer market in the United States?