Moosehead ppt
- 1. Moosehead’s Entrance into the US Market Jordana Hoppe · Thomas Kurian · Kate Robb · Zafreen Zaheer
- 2. A Brief History of the Brew... • 1865, Susannah Oland sailed from England to Nova Scotia with her family and, lucky for us, with her recipe for a rather delicious brown October ale. 1865, Susannah Oland sailed from England to Nova Scotia with her • 1867 – her recipe for a rather delicious brown family and, lucky for us, with Susannah, her husband and 9 employees form “The Army and Navy Brewery “ – after a few deaths October ale. and disasters, and name changes they eventually settle on “Moosehead Breweries Ltd.” named after their signature Moosehead Pale Ale • By 1962, Moosehead had seen its 4th generation of Olands run the brewery • The Moose is Loose: Moosehead decides to grow by launching its signature lager to the south
- 3. 3 Key Reasons Why Moosehead Moved to the South 1) Interprovincial trade barriers – required a brewer to have production facilities within a province – Moosehead was a small &privately owned : they simply didn't have the capital to build additional facilities to serve the other Canadian provinces. 2) Size of American beer market – Canadian market: consumed roughly 20 million hectoliters of beer a year – the US market was ten times the size of the Canadian domestic market 3) Growing US import market: – The tastes of American beer consumers was changing from the traditional lighter/drier beers (e.g. Miller, Busch) which created room for more niche products – Key imports, like Heineken, we’re building a strong base
- 4. Moosehead principles to enter the US market: 1 2 3 Monitor and Position the Get the product research market brand correctly: right for the trends and enter a In the premium market: changes growth segment: Space to packaging Drinking age – 35 year old American Male 4 5 Maintain consistency in Create strong distribution graphics and advertising: focus partners: Connect with a on the Moose + Canada reputable and established distributer
- 5. The Distributor Years 1978 – 1990 All Brand 1997 -2007 Distributors Gambrinus 1990 -1997 –All Brand was purchased by Guinness Imports • Moosehead worked with 3 different distributors from 1978 -2006 • Distributors “owned” the brand in the USA: pricing and marketing Key Mistake: •Canadian head office continued to focus on Canadian Operations •When import market declined in late 80’s distributor dropped pricing to compete with domestics
- 6. Moving Back Up Market • Moosehead recognized the distributors error in moving the product to the domestic segment • Worked with distributor to move Moosehead back into the Premium Import Space in the USA • Introduced campaigns e.g “heed the Call” to attract a younger demographic (avg age in late 1980’s was 44) • Move from Guinness Imports to Gambrinus was an attempt to ally with a distributor with more expertise in the premium import space (Gambrinus had expertly introduced Corona to the US) • Gambrinus introduced new marketing programs to give a premium association with the Moosehead product: e.g. Shirt Campaigns
- 7. Moosehead USA: subsidiary of Moosehead Canada • March 31, 2007: Moosehead decided to break its contract with Gambrinus – Andrew Oland had just ascended as the head of Moosehead – Gambrinus had not been giving the needed attention to Moosehead • Moosehead believed it could do a better job selling its own beer: – Leverage marketing campaigns North and South of the border • Choose Key wholesalers & have full control of distribution networks: – Alter distribution strategy – Target new cities & focus on more profitable areas – develop relationships with additional retail stores and bars directly to dismissed the need for some wholesalers • Improve margins by eliminating the distributor
- 8. Moosehead Today US, there are two tiers of breweries: 1) Large/publicly traded 2) small low tier Units Sold breweries including Shiner and Bridgeport. Marketing/Ad spend Moosehead sits in a Unique tier • Moosehead has an attractive offering and is an appealing acquisition for the large tier competitors • Low desire from the Oland Family to be acquired: Moosehead is proud to be Canada’s oldest independently owned Brewery
- 9. Moosehead: USA & Canada Working Together USA & Canada: •Use the same marketing assets and campaign messages (small tweaks) •Meet monthly in Toronto to collaborate on Marketing initiatives •USA President is accountable to Moosehead Canada for Marketing & Sales Canada USA Key target drinking age – 35 males drinking age – 35 males market Value Prop: premium domestic in import most of Canada (domestic in Maritimes) Pricing & Government Controlled Moosehead must sell to the Distribution: retailer + customer: More POS advertising
- 10. An Example..... Canada: “Cottage Life” USA: Moose Focus focus
- 11. Outer-self: much more heavily promoted in Canada
- 12. Recommendations for the Future Moosehead should continue to focus on: 1. Targeting the drinking age – 35 year old male – Top beer consuming group in the US 2. Moving the brand into the premium space – Continue to fund POS and advertising activities that promote a premium image 3. Further developing new and existing relationships with retailers in the North Eastern US to increase margins – NE has the most profit because of close proximity to St. Johns (lower transportation costs) – Lower barriers into key distribution points (south is dominated by supermarkets with strong relations with larger breweries) 4. Introducing products into the NE USA that leverages the Moosehead brand image – Moosehead’s core competencies are beer and marketing – Moosehead’s Canadian image can easily be translated to another new product e.g. Cracked canoe – Cracked canoe would make an ideal transition beer for maturing customers