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Molson Canada
Evolution of Social Media and Marketing
Background
In operation since 1786, the Molson Company is Canada’s oldest beer brewery. Molson
Canada is part of the Molson Company founded by John Molson. Throughout the last fifty years,
the Molson Company’s approach features a strategy of active acquisition and now includes many
different brands. It is currently the seventh largest brewery in the world. Their headquarters are
located in Montreal, Quebec, where the company was established more than 350 years ago, and
Denver, Colorado.
Molson partnered with SABMiller, one of the world’s leading brewers, forming Miller
Coors, to create a stronger, more competitive brewer in the U.S. When this partnership began in
2007, it was anticipated that Molson would have annual combined beer sales of 69 million U.S.
barrels and net revenues of approximately $6.6 billion (SABMiller press release
2007). Although they took a hit from the economic downfall in 2008, the partnership between
Molson and SABMiller proved to be generally profitable for both brands. In August 2010, about
two years into the partnership, it was reported that Miller Coors achieved double-digit underlying
profit grown in the second quarter of that year.
Target Market
The Miller Coors joint venture created the second largest brewer in the U.S., trailing only
Anheuser Busch, controlling 30% of the U.S. market (Fuhrmann 2010). Molson Coors is the
second largest brewer in Canada, behind the Labatt brand, owned by the same company that
owns Anheuser Busch, InBev. The Labatt brand has 44% of the market share in Canada, while
Molson Coors only holds 40%. The Molson Company has experienced great success merging
with companies, such as Carling, Coors, and partnering with SABMiller. They have continued to
expand and now market many popular brands of beer. Some of the most recognized brands
include Molson Canadian, Coors Light, Rickard’s Red, and Pilsner (Qureshi 2008).
Because Molson has a large product line ranging from light beers to craft beers to
traditional lagers, they are able to penetrate a large portion of the consumer market in the beer
industry. Individuals in their twenties and early thirties make up a highly coveted market for
beer brewing companies. According to a 2011 study by the Harris Poll, nearly 75% of young
adults (ages 21 to 34) say beer is their drink of choice. Additionally, 56% of people in this age
range use social media networks (Widrich 2013). Since this generation largely uses social
media, Molson Canada can use these forums to improve brand recognition through interaction
with its target consumers.
“Cold Shots”
The purpose of social media marketing is to grow a company’s existing customer
network, to build stronger relationships with consumers and increase customer awareness of the
brand. Although Molson has utilized social media in many of their marketing strategies, they
have experienced a few glitches along the way and have not yet found the best way for their
company to use social media to grow their brand.
In October of 2007, Molson Canada launched a photo contest targeting members of the
company’s Facebook fan page. The intent of this contest, “Campus Cold Shots Challenge” was
to amplify word-of-mouth and increase brand awareness. Molson set up albums on Facebook
dedicated to photographs submitted by students. The entries documented students enjoying
Molson products in a social setting. Students from colleges across the country were encouraged
to submit photos for the opportunity to have their alma mater named the “Number One Party
School” and the winning photo received a trip for four to Cancun, Mexico.
Administrators and nonparticipating students from the schools complained that this campaign,
“Cold Shots,” promoted irresponsible drinking habits such as binge drinking. These critics from
the Canadian universities felt that Molson’s “Cold Shot” was creating a bad image and reputation
for the college (Meaney 2007).
Because Molson was experimenting with the usage of social media they were unaware
how specific they needed to be in regards to the parameters of the contest. They did not define
their expectation of social drinking versus binge drinking nor were they monitoring the images
being posted prior to public display on the forum. A week before the contest was scheduled to
end, Molson Canada shut down the operation.
Molson Coors has always considered themselves to be promoters of legal and responsible
drinking habits. Their code of conduct stresses this effort stating, “As a manufacturer of
alcoholic beverages, Molson Coors is committed to promoting legal and responsible decisions
about drinking our products” (Molson Coors 2013).
The Molson Company, in particular Molson’s vice president of Government and Public
Affairs, Ferg Devins, emphasized the role community involvement plays in the Molson heritage.
Molson’s most successful marketing campaign to date tied community involvement to their
brand with the “I AM. CANADIAN” campaign.
Campaigns
Molson Canada develops campaigns to drive sales by appealing to the nationalism felt by
their target market. “The conventional wisdom was that Canadians viewed patriotism as an ugly
trait, but research [shows] that [is] no longer the case for the younger generation” (Krashinsky
2013). By appealing to their consumers’ patriotism through fun and innovative campaigns,
Molson has maximized on their brand name. A partner for Rethink, Molson’s new advertising
agency, reflects, “’we’re lucky in that our name is Canadian, and we can do this. People
recognize the brand as being part of this country, like Tim Hortons and hockey’” (Krashinsky
2013).
“I AM. CANADIAN.” Campaign
“I AM. CANADIAN” was the slogan used for the Molson Canadian brand from 1994 to
2010. The campaign was supplemented with popular television ads that focused on the personal
pride of Canadian, and played off many popular stereotypes. The popular “Rant” advertisement
helped Molson Canadian’s market share increase by 2.5 percent that year. Meanwhile, their
biggest competitor, Labatt Blue, fell 3 percent in market share. “It also increased the number of
drinkers between the legal age and 24 who named it as their regular brand; a key segment for
future growth” (Krashinsky 2013).
Molson Canada made the decision to switch from the ‘I AM. CANADIAN.” slogan to the
new idea of “Made from Canada” during the Vancouver Olympics in 2010, at a time when
consumers were becoming bored with the brand. The change brought the first market share
growth Molson Canadian had seen in nine years (Shaw 2012)
While the “I AM. CANADIAN” campaign had grown stale it “’never really left the
public consciousness. It is a part of [Canada’s] cultural identity, and a part of this brand’s
identity’” (Huffington Post Canada 2013). Thus, Molson Canada revived the slogan on social
media and physical product this year for the ten days leading up to Canada Day. July
1st. Molson offered apparel and novelties with the slogan and fans were encouraged to change
their profile pictures to a specific “I AM. CANADIAN.” photo.
Situation Analysis
Molson Canada rushed into social media marketing. The company launched their
“Campus Cold Shots” contest on Facebook without recognizing the ramifications that could
result. Molson Canada has since reinvented their social media presence and continues to uphold
their core values. There is room for improvement if Molson wishes to fully utilize social media
marketing. The following sections will look at what Molson does well and where they are
lacking.
Strengths
Molson Canada has updated their Facebook page. It now has a strong Canadian theme
along with many pictures and posts made by the page administrators. There is also a lot of
interactions from fans. By looking at the company’s Facebook page it is made clear that the
company regularly monitors posts on their Facebook page by their prompt responses to any
comments, questions or concerns.
Molson Canada has a strong brand image and customer following. The brand slogans “I
Am. Canadian” and “Made from Canada” demonstrate national pride. Looking at the company’s
Facebook page one can see that the fans also have great pride for Canada. This strong tie to
nationalism assists in brand recognition and loyalty within the country. Partner brands help
Molson Canada reach consumers in different regions including America, Asia and Europe.
Weaknesses
Molson Canada does not have company accounts on Pinterest or Instagram. Without
accounts on these social media sites Molson Canada has yet to reach all the possible online
markets. In addition, Molson has more than one Twitter account. The “MolsonCoors Canada”
account is more customer service based and the “MolsonCoors” account is based in Denver and
focuses on news. Due to the different user names the company has a low number of followers.
The company’s complex partnerships may cause brand confusion for potential customers;
for example, MolsonCoors, SABMiller, and MillerCoors are three corporate brands that all
house the same product group. This partnership inhibits the success of strong social media
marketing strategies in two ways: (1) oversaturation and (2) misunderstanding. Oversaturation
occurs as multiple social media accounts are created for the same product. A consumer is not
likely to follow multiple accounts in the same forum for the company. Consumers may
misunderstand the relationship of these corporate brands. This creates a barrier; potentially loyal
customers may mistakenly credit the wrong account with their loyalty.
Opportunities
Molson Canada is able to reach a large and diverse community through social media
sites. The company can use social media to create positive word of mouth and obtain free market
research through ideas posted by consumers on Molson’s accounts. Additionally, Molson is able
to advertise via Facebook at minimal cost. When the different accounts such as Facebook,
Twitter, Instagram, and Youtube are linked, Molson Coors Canada can develop stronger brand
recognition. Linking these accounts provides visibility that may not have been achieved with a
single forum.
Molson Canada can capitalize on free research and development. Whether the company
wishes to innovate a new beer flavor or merely determine where their product is lacking, Molson
Canada can use social media sites to their advantage. The company can poll consumers about
new products. Molson can survey consumers on which beers should be sold regularly and what
seasonal flavors beer drinkers would like to see. Through comments or direct message on
Facebook, Twitter, and Instagram users can provide opinions on the products.
Another opportunity is mobile marketing. Many companies use downloadable
applications to offer coupons, events and contests only open to consumers that have signed up.
These applications can provide information on products as well as Molson’s social media
accounts and the company web page. It provides a one stop shop for the Molson enthusiast.
Threats
There is a possibility of damaging posts made by internet users. Since anyone can post on
social media sites, it is hard to control the content. Molson Canada will need to regularly monitor
their own accounts to monitor what consumers post on Molson’s Facebook, Twitter Pinterest and
Instagram accounts. Due to high usage of these social media accounts any negative posts could
damage the company’s reputation and affect prospective consumers’ perception of the brand.
Molson can damage its own image if it fails to respond appropriately. Social media
channels make it easier for Molson to interact with its consumers but this poses a risk if Molson
is not mindful of its interactions. Once a post is published, it is forever captured on the Internet.
Another threat to Molson is saturation of social media sites. All of Molson’s competitors
have similar social media accounts. Molson must be careful not to alienate its followers with
meaningless content. Also, Molson faces the possibility of a competitor stealing innovative ideas
that are posted publicly on one of Molson’s accounts.
Alternatives
We have identified three alternatives to help further improve Molson’s social media
initiatives. These three strategies are: integrating their marketing campaigns with social media,
improving expanding Molson’s presence on various social media platforms, and creating a
MolsonCoors mobile phone application. It is important to note we support the improvements
Molson has made in their social media initiatives since the failed “Campus Cold Shots
Challenge” campaign. MolsonCoors strides to create a solid social media program have been
successful. Our goal is to embrace these programs and use specific marketing strategies to
enhance them.
An Expansion of Current Campaigns
Molson’s “Make Your Mark” and “I AM. CANADIAN.” campaigns focus around the
company’s patriotic branding. These campaigns successfully spark emotion in consumers,
encourage fans to interact with the brand, and create worldwide brand recognition. However, the
campaigns could each broaden their reach, interacting with more consumers by intertwining their
marketing campaigns with current social media resources to a greater extent. This integration
differs by campaign, and their unique strategies are discussed below.
Instagram
Molson currently utilizes the Instagram application for contests like the “Make Your
Mark” Instagram contest. Currently, Molson asks contest entrants to caption their Instagram
submission photos with “#molsoncanadian”, creating a link to other photos with the same
caption. If Molson Canadian hosted its own Instagram account, entrants could link Molson’s
physical account directly to their photos in the caption with the phrase “@MolsonCanadian.”
The only way to include this “tag,” or link to an account, is to first “follow”, or subscribe, to
Molson’s Instagram. Users following the Molson account will see the photo’s uploaded by the
company on their home page as they are posted.
The current incentive for submitting “Make your Mark” Instagram photos is the chance
for users to see their own photos on the Molson website. We could further incentivize this
program by posting the photos to the MolsonCanadian Instagram account. This would be more
convenient and visible to Instagram users than posting photos to a separate website, creating
added incentive to submit photos.
The advantage of an Instagram account is increased visibility. In addition to user
submissions, Molson can post pictures debuting new products, upcoming events, and
promotions. Followers of Molson’s account will have visual reinforcement of the brand which
will hopefully make them more likely to try new products, attend events, and take advantage of
promotions.
The only disadvantage in creating a MolsonCanadian Instagram account, is the
maintenance cost. A representative must dedicate ample time to maintain the account and to
regularly upload meaningful content to keep users interest.
Implementation Plan
The main focus in this case revolves around creating an impactful social presence for
Molson Canada while preserving their mission statement of being socially responsible. Our goal
in implementing an improved social media strategy is to entice a larger percentage of Molson’s
target market to engage with our social media accounts by creating content these users will find
interesting and valuable. To do this, we will improve Molson’s current social media presence and
integrate social media into the aforementioned campaigns.
Our first initiative will be improving social media presence. As previously stated, Molson
already has a noticeable presence in social media such as Facebook, Twitter, and YouTube, but
they are underutilizing other forums such as Pinterest and Instagram. It is suggested that Molson
create profiles on these free accounts. Incorporating these two social media outlets undoubtedly
can increase Molson’s brand awareness by reaching additional consumers who do not already
know about the brand. The potential reach, with the inclusion of Pinterest and Instagram, would
be a 15% and 13% respective increase of internet users (Duggan and Brenner 2012).
Social media sites will discuss a combination of updated brand information concerning
the company, potential contests, and the beer itself. We’ll also include entertaining articles,
anecdotes, and factoids to keep users interested and regularly visiting Molson’s pages. Instagram
and Pinterest also introduces new forums for people to discuss Molson products, contests, and
events. Molson should create links between each social network site in order to synchronize all
of their social media platforms, such as Facebook, Twitter, and Pinterest. The entire digital entity
would be stronger because one account could link to another site that a customer may not have
found otherwise. Opening more windows of communication can create a larger following of
consumers, which will be easier for Molson to market.
Once we’ve expanded Molson’s library of social media platforms, we can focus on
integrating these platforms into marketing campaigns. We’d like to initiate a new “Make Your
Mark” contest to win a trip utilizing the digital ballot concept. We’ll also begin promoting the “I
AM. CANADIAN” digital branding, including pictures, hashtags, and support for Canadian
events. The incorporation of these alternatives might be pricy, with the inclusion of a
complimentary trip (i.e - airline tickets, room and board, free Molson beverages), but we believe
this will have a positive effect on the company and the benefits will outweigh the costs. Our prior
solution of expanding other social media accounts will allow Molson to more easily show
consumers Molson offers more than just beer there is a community behind the brand are the
benefits of drinking Molson, such as a free trip.
For this to be a feasible solution, Molson Canada needs to hire or place a current member
of their marketing department into a specialized position dealing with the maintenance of the
respective social media accounts. This would essentially be the biggest financial cost of the plan,
since social media accounts are free. Molson could even look into hiring a qualified digital media
intern to update the accounts to further minimize the cost of the plan, salary being at minimum
wage for this employee.
The goal is to encourage constant utilization of these social media tools in order to
connect with consumers and entice them to engage or interact with the brand more frequently.
This is important because the more visibility a company has the more people will learn about the
product. With that said, brand awareness could lead to future profit.
All the above alternatives incorporate social media as the main component. The
reinvention of Molson Canada’s social media presence can become the foundation for other
solutions. Once Molson improves their social media presence, they are more likely to incorporate
other components into their plan such as the “Make Your Mark” campaign from the first
alternative. The importance of a strong social media presence is the main determinant in
evaluating whether the alternatives are viable in the future. Since 67% of internet users use
Facebook, and additional social media outlets, Molson can use this proposal to rectify the
problem by creating a meaningful presence in the vast world of social media.
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