GOLDEN CANADA GOLDEN BREWProudly Canadian―Molson Canadian

Melissa

Mattias

Alexia

Waters

Qi

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

THE ALCOHOLIC BEVERAGE INDUSTRY Canada

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

Highly ConcentratedIndustry

ALCOHOLIC BEVERAGE INDUSTRY

Highly ConcentratedIndustry

Large Market Size1,257 Olympic Swimming Pools by Volume

ALCOHOLIC BEVERAGE INDUSTRYIndustry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

Stagnant Growth0.8% Growth by Volume

Highly ConcentratedIndustry

Large Market Size1,257 Olympic Swimming Pools by Volume

ALCOHOLIC BEVERAGE INDUSTRYIndustry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

Stagnant Growth0.8% Growth by Volume

Highly ConcentratedIndustry

Large Market Size1,257 Olympic Swimming Pools by Volume

ALCOHOLIC BEVERAGE INDUSTRY

18/19Legal Drinking Age

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

24M LEGAL OUT OF 36M POPULATION

LDA Female 40%

LDA Male 38%

NOT Legal 22%

POPULATION

ALCOHOLIC BEVERAGE INDUSTRYIndustry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

Pie Chart (Can’t Eat It, But You Can Drink It)

Other 38%

Sapporo 3% Molson

26%

Anheuser-Busch 33%

CANADIAN MARKET SHARE BY SALES

MARKET SHARE BY SALESIndustry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

ALCOHOLIC BEVERAGE INDUSTRY

MARKET DEVELOPMENT INDEXIndustry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

0.90MDI

ALCOHOLIC BEVERAGE INDUSTRY

MARKET DEVELOPMENT INDEX

INDUSTRY IS IN THE MATURE STAGE

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

0.90MDI

ALCOHOLIC BEVERAGE INDUSTRY

Competitive Rivalry

Threat of Substitutes

Threat of New Entrants Buyer Power Supplier

Power

High Moderate Low Moderate Low

Highly concentrated Destructive to compete on price

Wine, hard alcohol, non-alcoholic beverages Beer is not a necessity

Economies of scale prevent new entrants High level of customer awareness

Low switching costs

Commodity inputs: worldwide supply Barley, hops, yeast, water

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

VERTICAL INTEGRATION

Narrow Market Vision MOLSON Controls its entire value chain

Brewer

Packager

Seller

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

DenverHeadquarters

17,000Employees

50Countries

100Brands

MOLSON COORS OVERVIEWIndustry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

+7.4%Revenue Growth

$4 BillionFY 2013 Revenue

MOLSON COORS OVERVIEWIndustry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

+28.1%Net Profit Growth

$567 MillionNet Profit

MOLSON COORS OVERVIEWIndustry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

CANADA

OUR CANADIAN STORY

241Years

26Brands

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

OUR CANADIAN STORY

241Years

26Brands

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

OUR CANADIAN STORY

241Years

26Brands

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

OUR CANADIAN STORY

6Breweries

3,000Employees

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

OUR CANADIAN STORY

825 Million Litres Sold330 Olympic Swimming Pools (2013)

26.2%Market Share in Canada

#2In Canada

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

MOLSON COORS CANADA

Leading market position Channel advantage Vertically integrated

Reliance on core brands

Stable economic outlook Growing Canadian nationalism

Stringent advertising regulations Intense competition Labour wage increase Growing demand for craft beer

S W

O T

―MARKETLINE

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

Product Price

Place Promotion

45%Drank in the Last 6 Months

7%Forecast Growth by Volume

Numero UnoLager in Canada

1.1 BillionSales

PRODUCTIndustry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

45%Drank in the Last 6 Months

7%Forecast Growth by Volume

Numero UnoLager in Canada

1.1 BillionSales

PRODUCT

Beer is not a necessity

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

$2.40Lager in Canada

PRICE

➡High price compared to competition ➡Regular price products are preferred in

the Canadian Market ➡26.2% of “most often” beer consumers

prefer regular price

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

DISTRIBUTION

MULTI-SEGMENT DISTRIBUTION STRATEGY Molson is Widely Distributed

For Later Consumption

Point of Consumption

Liquor Store Bars

Super Market Restaurants

Depanneur Events

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

PROMOTION

TV RADIO PRINT ONLINE

IN-STORE PROMOTIONS

SPONSORSHIP ACTIVITIES

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

THE CANADIAN IDENTITY

MOLSON HAS STRONG TIES TO CANADIAN NATIONALISM CANADA IS THE 6th MOST NATIONALISTIC COUNTRY

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

PROMOTIONAL CAMPAIGNS

BRAND ASSET: SOCIAL MEDIA

Brand awareness Media attention Social media Active promotion Emotional

connection

Low brand awareness Lack of social media

presence No attraction for new

customers Low emotional

connection

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

630k 40k

40.5K 0.54K

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

BRAND ASSET: SOCIAL MEDIA

630k 40k

40.5K 0.54K

Last Facebook post: 2 years ago

Last Facebook post: 2 days ago

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

BRAND ASSET: SOCIAL MEDIA

COMPETITIVE SET

BRAND PRICE PERCEPTION SALES MARKET %

$2.40 $1.148B 7.0%

$2.00 $1.558B 9.5%

$2.30 Reliable & affordable $492M 0.3%

$2.45 Craft beer $984M 0.6%

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

MARKET SHARE IN CANADA

Molson Canadian 7%

Other 60%

Coors Light 12%

Budweiser 13%

Labatt 10%

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

MOLSON CANADIAN

Canadian connection Strong marketing campaigns Emotional bond Visible sponsors of popular activities & events Loyal customers High level of brand awareness

Not well known outside the Canadian market

Growing Canadian Nationalism Growing diversity in Canada

Growing popularity of craft beer Intense competition Health concerns Stringent advertising regulations

S W

O T

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

766 4615

0.86 0.93

0.13 0.29

NMC

ROI

ROS

MARKETING METRICSIndustry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

766 4615

0.86 0.93

0.13 0.29

NMC

ROI

ROS

MOLSON: STRONG ROS LABATT: STRONG KPIs

MARKETING METRICSIndustry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

16% 3.8%

21.3% 5.4%

25.3% 26.1%

21.2% 44.4%

14% 20.1%

18-24

25-34

35-49

50-64

65+

COMPARISON BY AGEIndustry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

16% 3.8%

21.3% 5.4%

25.3% 26.1%

21.2% 44.4%

14% 20.1%

18-24

25-34

35-49

50-64

65+

MOLSON: YOUNG LABATT: OLD

COMPARISON BY AGEIndustry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

48.2% 44.7%

10.7% 38.1%

14.6% 10.6%

ONTARIO

QUÉBEC

BC

COMPARISON BY GEOGRAPHIC SALESIndustry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

48.2% 44.7%

10.7% 38.1%

14.6% 10.6%

ONTARIO

QUÉBEC

BC

MOLSON: COAST 2 COAST LABATT: QUÉBEC

COMPARISON BY GEOGRAPHIC SALESIndustry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

TORONTO VANCOUVER MONTRÉAL EDMONTON

23.5% 8.2% 5.2% 5.2%

11.4% 1.7% 17.6% 0.5%

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

COMPARISON BY CITY SALES

COMPARISON BY CITY SALES

TORONTO VANCOUVER MONTRÉAL EDMONTON

23.5% 8.2% 5.2% 5.2%

11.4% 1.7% 17.6% 0.5%

40% OF MOLSON’S SALES COME FROM THESE FOUR CITIES LABATT’S SALES ARE CONCENTRATED IN MONTRÉAL

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

79.4% 57.3%

8.6% 35.1%

12.1% 7.6%

ENGLISH

FRANÇAIS

OTHER

COMPARISON BY LANGUAGEIndustry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

79.4% 57.3%

8.6% 35.1%

12.1% 7.6%

ENGLISH

FRANÇAIS

OTHER

MOLSON: ANGLOPHONE + MULTICULTURAL LABATT: FRANCOPHONE

COMPARISON BY LANGUAGEIndustry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

W LKPIs

Age

Geography

Cities

Language

THE BATTLEIndustry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

W LKPIs

Age

Geography

Cities

Language

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

THE BATTLE

W LKPIs

Age

Geography

Cities

Language

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

THE BATTLE

W LKPIs

Age

Geography

Cities

Language

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

THE BATTLE

W LKPIs

Age

Geography

Cities

Language

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

THE BATTLE

W LKPIs

Age

Geography

Cities

Language

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

THE BATTLE

MOLSON: APPEALING ACROSS CANADA LABATT: LIMITED APPEAL

KEY ISSUES & CHALLENGES

1) Rise in popularity of craft beer

‣Growth of craft beer industry = 10% in Ontario

‣Growth of beer industry = 0.8%

2) Gender imbalance in consumers

‣Molson Canadian consumers are 71.7% male

3) Intense competition

‣Top 2 firms control 59% of the alcoholic beverage industry

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

ALTERNATIVES

1) Reposition to better target Women

2) Reposition to better target Quebecers

3) Better emphasize Canadianness

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

DECISION MATRIX

Canadianness Women Québec

+Profits

+Sales

+Market Share

+Community

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

DECISION MATRIX

Canadianness Women Québec

+Profits

+Sales

+Market Share

+Community

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

BETTER TARGET WOMEN

1) Integrate more women into ads

‣Women playing sports and doing outdoor activities

with men in tv, radio, and print ads

2) Increase sponsorship of female-focused

events

‣Women’s Hockey League

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

3) Molson Canadian Mini Product Launch

1) Integrate more women into ads

‣Women playing sports and doing outdoor activities

with men in tv, radio, and print ads

2) Increase sponsorship of female-focused

events

‣Women’s Hockey League

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

BETTER TARGET WOMEN

MOLSON CANADIAN miniIndustry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

MOLSON CANADIAN mini

Convenient

Less beer, less calories

Easy to drink (finish)

Easy pull-off cap

No cannibalization

Less waste

SATISFIES BELONGING & SOCIALIZING NEEDS ADVERTISE IN LIFESTYLE MAGAZINES

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

MOLSON CANADIAN mini

CANADA

Capitalize on Canadian Nationalism to tackle rising popularity of craft

beer

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

EMPHASIZE CANADIANNESS

CANADA

Capitalize on Canadian Nationalism to tackle rising popularity of craft

beer

“Canadian Craft since 1774”

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

EMPHASIZE CANADIANNESS

CANADA

Capitalize on Canadian Nationalism to tackle rising popularity of craft

beer

“Canadian Craft since 1774”

6 breweries & 3 000 jobs

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

EMPHASIZE CANADIANNESS

CANADA

Capitalize on Canadian Nationalism to tackle rising popularity of craft

beer

“Canadian Craft since 1774”

6 breweries & 3 000 jobs

Molson Canadian contributes $1.3B or 0.07% to the Canadian GDP

Industry

Molson Coors

Molson Canadian

Marketing Mix

Comparison

Challenges

Recommendation

EMPHASIZE CANADIANNESS

STRONG BRAND IDENTITY &

POSITIONING

MASS APPEAL (AGE, GEOGRAPHY,

LANGUAGE)