2/12/13
Communications Planning
Case Analysis #2 Metabical
1.Situation Analysis. Metabical is a new
prescription drug that claims to be a safe and an
effective way of losing weight for
moderately overweight individuals. This drug has the differentiation of FDA
approval and a comprehensive support program for post purchase support. The
problem is in deciding what positioning, target market, segment and marketing
mix to use as initial rollout of the product, in a time when the consumers are
skeptical of weight loss drugs due to of deceptive marketing stigmas. The mix
should have a sufficient initial impact and long term viability on sales so as
to recover CSP initial investment of $400 million in 10 years.
In 2005 the overweight U.S. population
was about 209 million Americans. Competitors in the weight loss drugs included
Alli, which was an over-the-counter drug with FDA approval, all other
competitors were herbal or dietary supplements thus not regulated by any
governing body. The legal and social climate at the time was not in favor of
the drug industry. As a whole this industry was tagged with deceptive
advertising because side effects where not known until after the product
reached the market, thus this translated to low credibility from consumer’s and
the professional medical communityperspective.
Desirability, deliverability and
differentiation need to be taken into consideration when positioning Metabical.
For desirability, Metabical offers a safe and effective way of losing weight
for moderately overweight individuals; this is the relevant value proposition
to users.
Deliverability, CSP has credibility because
it’s an established company with 20 years of experience in prescription drugs
including: Zimistat, $25B in sales and it an international health care company
that focuses on developing, manufacturing, and marketing products that treat
chronic and acute medical conditions. Differentiation, Metabical will be the
first in the prescription drug for weight loss to be approved by the FDA, CPS
will offer post-sales and lastly, the ingredients calosera and meditonan make
Metabical unique.
2.Alternatives. Men in general have a
higher BMI prevalence compared to women
however,
women are overwhelmingly more willing to embrace the treatment and the post-purchase
support offered by Metabical because they show more concern with physically
looks and want to live a healthy lifestyle. From the case Exhibit 2 in Selected
Results from: 2007 Marketing Survey indicated, “75% of women were dissatisfied
with weight and appearance. 55% of women surveyed said they wanted to change
their behavior to live a healthy lifestyle.” Thus, looks and lifestyles are
implication to the underlying motivations as to why women would be more
inclined to purchase and adhere to the prescription.Therefore, the optimal target market based on
the research numbers would indicated that the largest coverage would be: women
moderately overweight, ages 55-64, with less than high school education and
making less than $25,000. However, the women that are more likely to use the
drug may not be able to afford it, only about 11% indicated they would pay for
it out of pocket in the mentioned segment. Therefore, a different segment is
suggested in “Female Psychographic Segmentation Report Summary.” For example,
under segments, "I want to wear my skinny jeans." Description, “Motivated
and willing to alter current behavior.” Demographic profile: Age 25 to 40,
college education, household income $50,000–$80,000.This segment is a
younger more affluent demographic concerned with how they look and willing to
change their current habits. Thus is the best fit for Metabical because they
can afford it over a longer period of time, more educated thus more likely to
visit a professional doctor about weight problems. The down side maybe that
this demographic is likely the most skeptical and hardest to convince for
initial trial because of the previous legal and social climate, they are more
likely to be more critical in making a decision to buy an weight loss product
because they are more educated than the previous demographic of women.
Additionally, these educated women might not be early adopters as opposed to
the less educated ones. In large women
should be the optimal consumer, with the medical community as secondary
segment, but within the women section two persona profiles should be created to
reach women effectively.
Recommendation.In order to reach both sets off women and the
medical community the current mix of both pull and push strategies should be
held, but in the longer run the budget would have to be adjusted to 75% Pull,
25% Push of the current $13 million advertising budget. Understandably the
budget for Metabical is not that big considering CSP had sales of $25 billion
and spent $400 million on R&D for this drug. I would recommend that the
initial roll out mirror that of the golf world, advertising few months before
the warm weather and sales emphasis during the warmer months, as physical
activity increases for the target audience.
I noticed Printup wanted to use social
media, because she understands it can have a big impact in to cost in an
effective way but she also realize she does not have much experience in this
medium. I would allocate a significant about of money to employ someone
specifically to run and monitor social media for long term purposes. In
addition, the celebrity initiative should be allocated modest amount of money
because Printup’s main goal is to have high knowledge and awareness for the new
product, the designated celebrity should be leveraged for brand association.
The current sales representative to medical offices has a ratio of 1:100, the
extra sales force can be increased in anticipation for the new influx of
possible demand so as to not be in shortage of supply when the pull strategy
kicks in. The support group should be present during the innovation phase but
it should be highlighted later after the first time triers have become repeat
customers, this in order to maintain good relationship with loyal
customers.
Citation:
BECKHAM, H. ( 2 0 1 0). Metabical:
Positioning and communications. Boston: Harvard Business Publishing.
Class: Global Marketing Communications Planning
GM-606
Professor: Walter Mills
Date: March 22, 2013
Individual Project: Corona Extra
Executive Summary- The
corporate objectives as indicated by Group Modelo are: to create the
moment, travel the world, grow every day and to care for our planet. “To travel
the world” in summary states the company’s growth in international markets is led
by Corona Extra. To aid the growth in international markets the concept of the
beach was modified to a state of mind regardless of a consumer’s physical
place or daily situation. The updated tagline for the communication message is
“find your beach.” The primary target audience: age 21- 35, males, college
education and semi-professional career making $50k a year, in urban centers
with 500, 000+. They identify with the lifestyle aspiration Corona represents.
They are confident, fun people who don’t take life too seriously. Marketing
mix: concerning the product, Corona has always been about connections, more
than just a beer. It represents a philosophy of living in the moment that has been
embraced around the world. Furthermore, the distinct Mexican beer brand
qualities: florescent neon yellow color, a clear glass bottle and printed
label. Place, this beer chose “to travel the world” thus it can be found in 150
counties in including North America, Latin America, Europe, Africa, Middle
East, Asia & Oceania. Throughout these counties the price of Corona varies
however, average global price is about $4.14 USD. In the U.S. Corona promotes,
using mass media advertising, such as television spots and print but also uses
other media like billboards, taxi tops, bus wraps and sponsorships. Overall
Corona does have an integrated marketing communications future opportunities
include public relations and sale force.
I have selected Corona Extra because it
is an iconic Mexican beer brand with a distinctive approach to its
communications. Additionally, I was inclined to this brand considering it has
presence globally. Prior to the project I had knowledge of the brand when I
would watch boxing matches Friday nights on some of the local Spanish channel
like Univision or Telemundo. Surrounded by family and friends, shouting and
booing as we enthusiastically watched jabs, hooks, combinations round after
round, bell after bell always in anticipation of knockouts. On the sidelines
Corona ads, on the gym floor Corona, Card girls Corona. Also, as I soon
entered college and thus stated visiting night clubs, Corona was present in
several occasions.
Content analysis- Primary
target audience: affluent, age 21- 35, males, college education and semi-professional
career $50k a year, in urban centers with 500, 000+. Secondary, would be the U.S.
Hispanic population, men, 21-35, Southwest region, speak Spanish, high school
education making less than $50k a year. (Young, 2009). Corona Extra associates with
the image of fun and relaxation thus, consumers are seen as youthful and
energetic who want to live in the moment and relax to enjoy life. Beer buying
behavior among this audience is low involvement because the decision is not a
commitment time like that of a new car. The factors motivating a purchase
relate to past experiences conserving vacations on a beach, social events with
friends or aspirations to advertising messages they have encountered. Athletes reference
groups and friends encourage purchasing. The implication of purchasing a
premium beer translates into a person that has premium taste as well. Concerning
the information needs, Corona focuses on when communicating what and with whom
beer should be used. The unique
positioning is factor that influences buyer behavior because they understand
the relaxation state of mind as analogous with the Corona brand.
Business Context- “We modified
the concept of the beach to transform the physical place into a state of mind.
Withthis concept ads will show
different opportunities to “findyour
beach” in daily life situations” (Grupo Modelo, 2012). Consumers now consider
there are other places to relax, hence the tagline “find your beach.”
Competitor analysis- Budweiser- The
great American Lager, recently introduced a new beer to the market in 2013. Budweiser
is a premium beer, highlights quality ingredients, donated water to natural disaster victims. Concerning
the Website, it feels interactive it
has videos a clean look and is easy to navigate also they sponsor professional sports,
music events etc. (Anheuser-Busch, 2013). Budweiser has a competitive advantage
based on budget size and domestic appeal.Corona has positioning, reputation as #1 import beer.
Brands positioning are distinct however,
they compete based on sales,
Budweiser with $466 million, Corona with $349 million (The
Free Library, 2013).
Internal context-The
Group Modelo, values progress thought technology. Now they operate most modern
brewery in the world (Grupo Modelo, 2012) Thought diversification of energy
sources they strive to keep low carbon emissions, implement recycling, and
participate in conservation of the environment. Social responsibility includes
fostering educational values, and promoting responsible drinking, this is
present in all of their communications.
External Context-Corona currently is
under new management in the U.S. Recently, Belgium-based Anheuser-Busch (AB
InBev) proposed acquisition of the Groupo Modelo. The Department of
Justice filled an antitrust lawsuit against the acquisition because, InBev, would
own more than 51% of beer market thus monopoly. To avoid this, Constellation
Brands will handle Corona in the U.S. (Stagnito Media, 2013). Ingredient
branding comes via a lime wedge in Corona ads. Professor Younge states this
habit is undertaken by tourist, Mexican residents don’t do that. Nonetheless,
the lime is associated with the mentality of beaches, relaxation and fun
positioning.
Main communications needs/ Summary of
context analysis-
Corona has been targeting thesame group
of audience in the U.S. for many years and the position Corona has taken since
the being had resonated with them on an emotional level. But currently consumers
are more aware and involved as to in the way they spend their precious time. Corona
is not about to sit back and watch them transition to another beer brands.
Rather Corona is adapting to changing times thus making a transition with its
customers. Current customers don’t really care too much about their health, if
they did they would like not be drinking beer and if they were then it would be
“lite” beer therefore Corona is and represents full flavor, not skimping
qualities. Competition beers to this consumer really do not fit their need or
personality. Corona drinkers feel like they have worked hard at work or during
the week so they deserve to treat themselves in some way or another. Because
they work in an office setting, work is not a physical labor rather a mental
challenge and fatigue, the best option to remedy this fatigue and treat
themselves, Corona. Corona has positioned itself to offer the solution to these
functional and emotional needs. Based on these simple needs, most of the
communication strategy and executions needs to mirror their need in such a way
that does not require them to think, thus something they can understand and
appreciate, with simple details.
Marketing Communications Goals and
Positioning (Corporate Objective)-The corporate
objectives as indicated by the 2011 Group Modelo are: to create the moment,
travel the world, to grow every day and to care for our planet, see appendix
for summary (Grupo Modelo, 2012).
Communications
Objectives-
Relevant to a communications stand point is “to travel the world.” In summary, international
presence in more countries is key to the company’s growth. To aid growth in
international markets the concepts of the beach was modified and transformed to
a state of mind regardless of a consumer’s physical place or daily situation.
The updated tagline for communication is “find your beach.” Additionally,
“outstanding
this year were the tour of country singerKenny Chesney, and 12 ATP tournaments, which strengthens the bond of Corona
with the sport of tennis, and increases its global presence.”
Based
on the objectives the communication strategy would be increased distribution to
different parts of the world which Corona is not currently in. Corona because
it is the star brand which can lead the way for the company’s other 5 top
export beers. Next, with sponsorships the objective is promotion of the brand
with different target audiences interested in tennis and country music. Communications
platforms that I have seen do support the objective, “to traveling the world.”
Segments, Targets and Positing-“Beer consumption is overwhelmingly male-dominated, men
accounting for more than 80% of the volume consumed”
(Apex, 2012) The target audience for beer and tennis are in line. The USOpen
audience: 59% male, 87% attend college, 93% have high speed internet, 42%
between ranges of 18-34 while on 36% are in, 34-49 (USTA, 2013).
As for the
user profile I will agree with Young regarding user profile,
“21-34, male who
don’t see themselves as part of the masses. They identify with the lifestyle Corona
represents. They are confident, fun people who don’t take life too seriously.
No approval as to the beer they drink. Mainstream beers don’t match the person
they are. They’re open to change. They want a beer that reflects their
personality. They appreciate Corona’s unique perspective on certain life
situations and refuse to change who they are and what they stand for.”(EFFIE® Awards, 2006)
As for the consumer decision making
process I have considered the approach of seven stages: unawareness, awareness,
knowledge, liking, preference, conviction, purchase. Corona mainly targets
preference and or conviction. Corona is
marketing to multiple audience given it is an international brand, as stated in
the corporate objectives “to travel the world”. Moreover, in addition to the
primary user, the Hispanic communities are targeted given Mexican heritage of
the brand. Concerning preference, as a stage of decision making, Corona does
not compare itself to other brands rather it creates favorability by having a
presence where most of their target audiences are such as music and boxing
event, tennis tournaments. As for conviction or persuasion, the positioning of
the brands encourages a change of attitudes in favor of relaxation, this encourages
purchase, as taken from the Corona website, “There's something about drinking a Corona Extra that's
different…” and from the Facebook “about us” section, “Anytime you’re enjoying
Corona, on the beach or on our profile, we ask that you enjoy responsibly…”
Marketing Communications Strategy- Push
and Pull in addition to both long term and short goals are strategies Corona
uses.The pull strategy, having the
customer come to Corona, can be deemed a long term goal via mass media
advertising like television and print. For a push strategy, Corona sponsoring
contracts with sports and events I assume they have exclusive rights to sell
their product at the event locations, in this way it is a direct brand to
consumer experience in the short run. Advertising creates pull whereas a wide
distribution satisfies push. Overall,
Corona uses pull more strongly. As for the 3 p’s of marketing communication:
product, price and promotion.PRODUCT:
the unique selling point that differentiates Corona from Budweiser are the cues
associated with relaxation and fun. From the Corona website,
“From
the beginning, Corona has been about connections. Because Corona is more than
just a beer. It represents a philosophy of living in the moment that has been
embraced around the world. We try not to complicate things. That's why we made
Corona so easy to drink.
Furthermore, the distinct florescent
neon yellow color, a clear glass bottle and printed label.
PRICE: According to Humuch.com. The
average price is about $4.14 USD, the maximum price is found in Southern Sri
Lanka with a price of $7.68 USD and the lowest price found in the California,
USA with $1.20. (HuMuch,2013).
Overall, the Corona is priced at a premium price given it has sustained a
number one import beer position to the U.S. (Statista,2013)
PROMOTION: Corona uses mass media advertising, such as television spots, print
media billboards, taxi tops and bus wraps. In addition sponsorships of music
tours and sporting event like boxing and tennis. Online, Corona promotes it
brand with interactive ads and social networks like Facebook and Twitter but
also has user generated content on YouTube.
Message and Creative- The
messages and tone of the individual communications that I have seen have
shown variability. Notably, Corona is transitioned from campaigns “miles away from
ordinary” to the current, “find your beach” campaign. The beach is no longer
exclusively used as a point of reference for cues with relaxation. “Advertising
aim to strengthen the connection between the physical beach and the beach
“state of mind,” it depicts beaches in unexpected places-- in a city bar, on an
urban rooftop or on a snowy mountaintop.” (Marketing Daily, 2012) However, the communications messages have a distinctive
tone, limited dialogue and simple easy going atmosphere that gives a
perspective on life. This is not true for the secondary markets where Corona
takes a more festive approach, showing people in clubs, one male protagonist
with a the supporting case of people singing from a nearby stage. I find that
the two approaches translate respectively throughout other communications tool
like online, television, print.
Communications Mix-Corona does use
integrated marketing, most notably with television, print, digital and out of
home. Digital media include the official website and social media Facebook and
Twitter. The website is overall very informative this moves the target audience
from knowledge to preference. The web site can be very effective way of
reaching the target but it not. The website does not have a link to Facebook or
Twitter. Facebook, slightly more interactive people actually post, comment,
share and ‘Like’ thus this provide a better measure of brand engagement. This like
Twitter can move the consumers from knowledge to preference. Twitter should be
the most up to date but it’s not.. Concerning television, 13 television spots
have been created for the new campaign. Additionally, Corona is reaching
consumers via online television provider Hulu. This is the most effect tool to
moving customers thought all stages to purchase because it reaches them when
they are involved in enjoying relaxation. Print included taxi cabs tops and
billboards both one way communications, none the less, have the potential to
aid in awareness to conviction. Out of home consist of sponsorships of music
and sporting events which are comparable to the strengths of personal selling.
Other ‘personal selling’ I see potential for “Corona girls” where they take
over a club bar and serve clients beer, this seems to create buzz in
Mexico.
Resources: Human & Financial-Cramer-Krasselt,
ad agency currently have the Corona Extra account. The ads produced do not explicitly
associate C-K and Corona (Cramer-Krasselt, 2013 ). As for internal resources,
Carlos Fernandez, Chairman of the Board and CEO of Grupo Modelo (Constellation
Brands, Inc, 2012).Valuable partnerships also include Crown Imports and
recently InBev Company.
Scheduling & Implementation- The
media plan is appropriate to reaching the target audience. Digital is online
24/7 while television commercials and print I saw on C-K website. Outdoor will
most likely be visible during the day time for billboards handing off the side
of building walls. “May on taxi toppers, bus shelters
and other outdoor displays in 10 key U.S. markets including New York City, Chicago,
L.A., San Francisco and Washington, D.C.” (Marketing Daily, 2012). I agree with the scheduling and location, in May the is
much warmer and with the location it makes sense because that where the largest
target audience reside.
Issues-Beer
advocated reviews are not in favor of Corona, 2.27 in comparison to the rating
of Budweiser, 2.32. Budweiser has a history of advertising in mass media
channels like Super Bowls. The commercials in this event are of importance
because they reach a massive amount of the people, live, for an extended period
of time. This space is not cheap, but the benefits are enormous. This advertising
can lead to larger separation between Corona and Budweiser simply by not having
a presence this yearly event.Possible
responses to Budweiser are a contest, inviting consumer to make a Super Bowl ad.
Likely, the most important advantage of this contest would be the association
to the event, WOM and hype (beeradvocate.com, 2013).
Evaluation & Control-Call
to action from communications was not clear as to where I should go to for more
information on the product. The print ad that stands out as hinting to where I
can get more information is, “Log off. Lime in. Find your Beach.” As for the
responsiveness of Corona via Facebook and Twitter I asked on both, “Corona it’s
the St Parties day , what do you suggest “Light” or “Extra”?” and no reply from
them at all.
Feedback-For
print advertising, it can track circulation numbers via an audit thus giving
them an idea of how many people saw the ads. For outdoor media, sales are based
on traffic and a suggested amount of public exposure an ad might get given its
location in the city, so referring back to the sales numbers will used full to
estimate how many people where reached. Television ads can be measured by
looking at media rating for the specific program they rant their ads in. Hulu
will provide specific numbers as to how many times as specific ad was played
and during what program.
Conclusion and Summary-Overall
the effectiveness of the communications strategy is great, however, I do feel
that social media is lacking in terms of engagement. The positioning is clear
with consistent message tone and color. The brand personality is never lost
throughout any of the communications tools of print, television, digital or
outdoor. The only recommendation would be an active presence in the night life
via “Corona Girls.” However, on the other hand I would also recommend targeting
women with similar characteristic as the current demographic. Currently, the
ads seem very gender neutral but considering it’s the category of beer, the
association it always that of men.
Appendix 1–
Group Model Mexico Corporate objectives Annual report 2011
To create the Moment
“The
key goal was to continueoffering
the best service in the beer industry and the highest quality products. In
2011,that objective shaped into an
increase in market share to record levels, and into agrowth in domestic sales of 10.5%, to 48,521 million pesos.” (Page
6)
To travel the world
“Grupo Modelo’s international strategy
has centered on growing in the foreign market and traveling the world with six
export brands. This year we reached the goal of being present in more than 180
countries with our flagship brand, Corona Extra, which places us among the top
companies in terms of the number of nations in which we are present,… the work
carried out in the international market, in 2011 the export volume grew 6.8%.”
“For Corona Extra, for example, we
modified the concept of the beach—which has distinguished the brand almost
since it was first introduced in the US market in the late seventies—to
transform the physical place into a state of mind. With this concept, we
launched a new series of ads that show different opportunities to “find your
beach” in daily life situations.”
“Among sponsorships, the most
outstanding this year were the tour of country music singer
Kenny Chesney, through which 1.1 million
Corona Extra consumers were reached, and
the 12 ATP tournaments, which
strengthens the bond of Corona Extra with the sport of
tennis,
and increases its global presence.” (page 12)
“Corona Extra was included for the
second consecutive year in the Best Global Brands ranking published by
Interbrand” (page 12)
To
grow every day
“Reached the goal of building and
operating the most modern brewery in the world: the Compañía Cervecera de
Coahuila,…Coahuila is fundamentally focused on serving the export
market. Becauseof its location, scale and state-of-the-art technology,
the brewery will contribute to improvingthe efficiency and the average
productivity.” (Page 20)
“Grupo Modelo promotes sustainable
growth and production with low carbon emissions, as well as technological
advances and the diversification of energy sources throughout the production
process planning for a future source of wind power.” (page 20)
To care for the planet
·sustainability component is Re-vive,
·Fundación Grupo Modelo, which
promotes different projects relating to the environment, education and society
as a whole.
·the Escuela Modelo program that
caters to 13 thousand students in public schools and their families arena,
·Fondo para la Paz
working on developing indigenous rural communities in conditions of extreme
poverty in collaboration with the to promote the collection of rain water and
access to clean drinking water
The Free Library. (2013). Top 25 beer vendors, year-to-date ending december 30, 2012: Sig data us food.. Retrieved from http://www.thefreelibrary.com/Top 25 beer
