As reported by Advertising Age, beer sales are declining and the future doesn't look promising unless the beer industry finds a way to out-market the spirits category.In a National Beer Wholesalers Association conference this week, MillerCoors CEO Tom Long suggested that the decline in sales against spirits - Absolute Vodka, Grey Goose, etc - is due to a lack of focus in advertising for beer.
"Spirits advertising has been praised by lots of folks and I think rightly for its ability to connect with its target," Long said. "Look at Grey Goose, this brand was created right out of thin air. French Vodka? Who would have thought such a thing? But with a relentless sales effort and clear positioning, they created a whole new price tier in vodka and Grey Goose took flight."The article presents an interesting point about beer advertising.
Brewers seem to coincide that the industry needs a reboot, a new advertising strategy that focuses on delivering a clear message about the benefits and features of beer and less about the jokes.
It's fair to say that most beer ads for TV have a humorous appeal that aims to create a memorable image for viewers to remember. However, brands like Coors Light and Budweiser don't seem to communicate their brand equity as well as Heineken does. Like Heineken's marketing strategy, beer ads should focus less on being funny and more about emphasizing the taste and ingredients of their beer; perhaps, associating their brands with socializing and having fun without being too funny that people only remember the joke and not the product.
This is a very interesting article. But I feel the decline might not be in the type of commercials that are being advertised. It is probably the lack of advertising in the new age of social media. I have never seen an ad for beer on Facebook, nor have I seen any beer companies with Facebook or Twitter pages. Maybe they are just one step behind and need to catch up to the rest of the marketing world. They need to utilize every tool available.
ReplyDeleteI agree with David. I think the decline is not directly associated with the type of commercials. I feel that beer companies were very strategic in creating a new beer culture to match the kind the target market today. There are other factors like the economy, that might have a bigger impact on sales. Most beer companies today have very strong brand images and that is it. I do agree that it might be more benefitial to start gearing ads promoting features and benefits of their product.
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