Businesses are constantly competing for consumer's attention (and their money). As businesses create products or services, it is always a possibility another business will recognize your success and create a similar product. After watching "Top 10 Business Rivalries" by Watchmojo.com, it was apparent there are some competitive business rivalries in a variety of industries.
The rivalry that I chose to analyze was Budweiser vs. Miller Lite. Maybe it is because I am from Wisconsin (the land of beer and cheese) or the fact that I know people who still argue over which beer is better - I wanted to get an understanding of this storied rivalry.
First, we identify the top dog and the underdog. USA Today reported in February 2019 that Bud Light (created by Anheuser-Busch in 1982) held the spot as top dog with a market share of 15.4%. Miller Light (created by Molson-Coors in 1975) held the underdog spot with a market share of only 6.1%. (Suneson, 2019).
Budweiser's brand strategy has changed over the past 30 years. Typically, Budweiser is devoted to reaching their core demographic of the typical, working class, patriotic consumer. But, as technology changes, they seem to be shifting and implementing some
innovation. One strategy included changing the name of the beer from Budweiser to America in 2016, seemingly in coordination with the presidential election. (Danao, 2020). Strategically, Bud Light is the official beer of the National Football League (NFL), also
featuring memorable Superbowl commercials that provoke emotion. Recently, fuel was thrown on the rivalry fire with Bud Light claiming that Miller Light includes corn syrup in
their ingredients during a 2019 Super Bowl ad. To reach a younger demographic, Bud Light created the "Bud Bowl" through the Snapchat app. (Danao, 2020). Bud Light also takes a humorous tone to advertising (example Dilly Dilly campaign).
Miller's current brand strategy appears to playing to the defense of Budweiser's swipes at
their brand as well as resting on their slogan of 'more taste'. Several advertisements push back on Budweiser's comical characters, like the Bud Knight, or appear to be defensive (like the image to the right of a billboard). The brand relies on 'taste' to reel customers back in. Technology has also taken an important role with Miller's marketing strategy as well. According to Marketing Dive, "introduced a "smart"Â technology tap to certain bars around the U.S. that dispenses free beers every time Bud Light goes negative in its TV ads."
Why do consumers prefer Budweiser over Miller? Even though Budweiser is a younger product than Miller, the company appears to be in the decline stage of the product life cycle. This has caused the company to create brand extensions to keep the brand relevant in a crowded marketplace (for example: Bud Light Orange, Bud Light Lemon Tea, Ritas, Bud Light Seltzer, and Bud Light Platinum to name a few). (Roth, 2019). Miller also has many extensions that seem to be harming the company. Variations of Miller beer that often become confusing and repetitive....Miller, Miller Lite, Miller High Life, Miller Genuine Draft, and light versions to boot. Can your palette easily decipher between these Miller brothers? Probably not. According to Branding Strategy Insider, sometimes it is just easier for a consumer to say "I will just have a Budweiser".
My opinion.....I have never been a fan of Miller. Miller has always given me headaches, so I stay away from it. Bud Light is not my first choice of beer either, but I am a fan of Michelob Ultra (which is an Anheuser-Busch product). Overall, I am a bigger fan of the catalog of beverages that Budweiser offers. I like their variety and tend to purchase more products from Anheuser-Busch than Miller. Do either of their commercials or marketing strategies have an impact on me? Probably. I am more aware and receptive to Budweiser's advertisements probably because I don't like Miller beer.
So how can Miller pull some customers away from Budweiser? I feel it is odd that the older brand (Miller) is considered the underdog. But, being the first to enter a market doesn't necessarily mean they will always be the champion. Miller and Miller Lite products seem to be lingering in the decline stages of the product life cycle along with Budweiser. But, it appears Budweiser is doing something better than Miller at this point. Acquiring craft breweries, such as Landshark, Elysian Brewing, Goose Island, as well as Bon & Viv Seltzer to name a few. (Anheuser-Busch, 2020). Budweiser's expanding portfolio offers consumers a variety of beer, cider, and seltzer options. Miller also has a pretty stacked catalog of beer, but I noticed many of the brands were foreign beers and low quality items (such as Black Ice, Icehouse, Keystone Light, Olde English 800, and Red Dog to name a few). Perhaps their brand extension management (or lack thereof) is lowering the perceived value of the brand?
If I were consulting Miller, I would start with examining their products. Consider cutting some of the items from your offerings and focus on the products that will excite and interest consumers. After deciding which brands to pull, I would suggest the team dive into a segmentation, targeting, and positioning (STP) strategy. Which consumer or market should they be pursuing, which one's are profitable, and how they should position their product against Budweiser? As you probably know, Miller has been using the slogans "Miller Time" and "More Taste, Less Filling" for a number of years so my suggestion would be "It may be time for a new perspective". My last suggestion would be to pivot marketing efforts from being reactive to proactive. They shouldn't wait for Budweiser to release a campaign, they should be making waves first with a positive message.
References:
Anheuser-Busch. (2020). Anheuser-Busch Family of Brands. https://www.anheuser-busch.com/brands.html
Danao, M. (2020). Referral Candy Blog. How Budweiser Maintains Itself as America’s Best Beer Brand. https://www.referralcandy.com/blog/budweiser-marketing-strategy/
Roth, B. (2019, March 27). Good Beer Hunting. Plus One — How Does a Beer’s Brand Extension Benefit a Brewery? https://www.goodbeerhunting.com/sightlines/2019/3/25/plus-one-whats-the-benefit-of-a-beers-brand-extension
Suneson, G. (2019, February 12). USA Today. From Guinness to Bud Light: These are the most popular beer brands in America. https://www.usatoday.com/story/money/2019/02/12/the-most-popular-beer-brands-in-america-bud-light/39041033/
Trout, J. (2007, December 19). Branding Strategy Insider. Of Beer and Brand Extension. https://www.brandingstrategyinsider.com/of-beer-and-bra/#.XtvdFjpKjIU
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