Don’t blame the marketing department. The buck stops with the chief executive.

litecanWhen speaking about the beer industry, whether to college students or to Wall Street, I almost always start with the analogy that beer is one of, if not the most recognizable, consumer product available.  I mention that not everyone can afford to buy a Rolex or a Mercedes-Benz or even a Brooks Brothers suit, however, if one goes into a bar, even a poor, broke college student can purchase the most expensive beer and set it on the counter.  Everyone can see the beer the individual is consuming thereby, giving that person the ability to identify themselves with that label and what it represents.

Much has been written this year about the softness or decline of the domestic lights.  Current numbers show light beers down over 15 million cases or -3.6%.  It even seems, based on the numbers that the decline of lights is accelerating.  Some industry publications are suggesting that the decline is coming from the lack of effective marketing, causing consumers to look elsewhere for their beer of choice.

The breweries marketing focus for light beers appears to be directed only to package changes.  Recent shifts include new bottles like those of Heineken and Miller Lite.  Likewise, graphics changes have also been part of the marketing with ABI leading the way.  ABI is also the leader in line extensions with many new flavors, some of which have been rather successful.

Over the years, most of the changes have done little to nothing to jump-start the brand, with the exception of Corona’s change from the brown squatty bottle to the current clear long neck bottle.  Coors Light has done well with their cold mountain graphic, but MC has failed with their attempts to turn around Miller Lite.  Programs such as the new on-premise bottle, punch hole on the can lid and even the twirl design of the bottle neck have not generated the excitement the brand needs.  Now MC is going to introduce a retro-look for their can in January.

Yet one light beer continues to enjoy success, Michelob Ultra, which is showing good growth against light trends.  Their marketing is all about the attributes of the brand, low calories and carbs.  These are tied into ads which feature an active lifestyle focusing on attractive individuals engaged in mountain climbing, sailing, etc.   The good news for Michelob Ultra is that this form of marketing is working.

Other main stream brands with effective marketing include: Corona, with the beach in a bottle theme; Dos Equis’, most interesting man in the world theme; and of course, Stella Artois, focus on the upscale image.  These brands have all have established and successful marketing campaigns.  One thing they have in common is that they are not changing their marketing, but are remaining with what is working.  They might tweak the plan, but the theme is unchanged.

So the question really is: when nothing does work, do we change the graphics or package, and when that does not work, do we  change the agency?  The life cycle of any given marketing department is usually a window of two to three years.  Then the cycle repeats itself.  Throw in a retro can, cold sensitive mountains, or even recycled press tab lids, ultimately it all comes back to what John D. Rockefeller said, “Don’t blame the marketing department.  The buck stops with the chief executive.”


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