Labatt Blue Marketing - Research Paper Example

Marketing Research on Labatt Blue Introduction Labatt Blue is the best-selling Canadian beer globally. It is also the number one Canadian beer being sold in the U.S. market which was introduced in 1951. The beer was nicknamed “Blue” by the fans of the Winnipeg Blue Bombers football team. This was due to the color of its label. Labatt beer earned several awards within the brewing industry (Jordan & Fredrix 1). This study therefore highlights on various proposed marketing strategies and whether Labatt Blue should introduce a seasonal beer.

Problem Definition The characteristics of the Canadian beer market provide an exceptional clear context aimed at increasing the volume of sales. In order to increase the volume of sales in the market, there are various changes that are likely to be made in the within the marketing mix. Since Labatt Blue is the best-selling Canadian beer globally, it is essential that it Labatt Brewers introduce seasonal bear. According to a review period done in the period between 2009 and 2010, it became clear that the company was at par with the growth experienced between those two years due to recession (Jordan & Fredrix 2).

Weather conditions in 2010 were atypical, but positive for beer industry. The growth experience can be linked to various external factors such as weather and international sporting events. The Research Problem There has been a highly concentrated seasonality within the beer selling industry in Canada and the entire U.S. Labatt Blue has been sold in a cyclic manner and their sales are mostly concentrated in very short selling-windows. The manufacturers ascertain that most of the beers are sold in the last quarter of the year with seasonality factors of roughly five to ten.

This implies that the manufacturers need to improve their level of productivity to meet the demands of the consumers on given occasions or seasons. Another problem is that beer rivalries are competing intensely against each other on pricing. This is a critical part since when prices are a bit higher, the company will likely fail in the global market. Therefore, the issue of competition is a big challenge in terms of falling retail prices thus affecting the general performance of such companies.

There has been a running battle between Molson Canadian and Labatt Blue with both companies aiming to sell more goods in the Canadian beer market which is currently at a stake. Also, changing consumer preferences, high impulse buying, concentrated seasonality and intensifying price competition are some of the factors that that contribute to high uncertainty in the market. Given the Labatt Blue’s market share, advertising, brand awareness, corporate stock prices has been dramatic. This research will thus highlight on the inertia of the big beer brand and more importantly on the evolution of brand’s core equity which must be permanent.

This is because it is fundamental to the long-term objective of Labatt Breweries Limited. The Hypothesis Within a market whereby high volumes of production are the key, the Labatt Blue has faced a tough competition in order to retain its dominance within this segment. The outlook of Labatt Blue has really helped the brand to hold its market share. The most important aspect of this research is also to address the changing consumer preferences. This is because they have a huge challenge if they decide to introduce seasonal products, they are likely to scramble.

On the other hand, the market is likely to become more fragmented and increase competitiveness. Research Goal The key objective of this research is to help in the identification of viable and proven strategies that can be employed to address the issues of stiff competition in the brewery market. In the identification of a viable policy, the study will employ logical and sequential research methodology in assessment of reliability, viability, affordability, and continuity of the Labatt Blue in the beer industry.

Research Objectives The aim of this research is to answer all the research questions mentioned above. This can only be done through employing a relevant policy or strategy which must be in line with the aim of the Company. One of the Labatt’s objectives is to increase its market share through manufacturing quality products made from finest ingredients and confirmed methods. Another objective of this research is to validate the strategies employed by the company in order to determine whether they stand a chance in maintaining the brand.

Research Questions This study will answer the questions hereunder: a) Are there any variables in the marketing mix such as product, packaging/pricing/distribution, promotion or other support that can be employed to support the brand’s relevance and credibility? b) Are there marketing strategies that can help in creation of image and differentiating the Labatt Blue brand from others? c) What are some of the challenges in the market? Expected Relevant Results With continuous advertisement campaigns, Labatt blue is likely to be successful in the market and meet the marketing objectives.

Incidents of beer drinker are also likely to climb because of regular drinking habits. The dominance of Labatt Blue is also a factor that is likely to help in the realization of the marketing objectives. Finally, the proposed strategies will lead to maintenance of good labor relations thus ensuring the company’s profitability and high yield. Works Cited Jordan Lara and Fredrix Emily. “US: InBev must sell Labatt USA to close Bud deal.” USA Today. Web. Retrieved December 3, 2011.