Coors Marketing Audit

Marketing Audit

MKT 551 - Marketing Management

Jacqueline Barnett

August 11, 2004

Executive Summary

Adolph Coors Company is the third - largest brewer in the in the US (after Anheuser-Busch and Miller Brewing), but Coors is looking to grow by merging with Molson. Coors Light nicknamed the "The Silver Bullet" is Coors top brand, accounting for more than 50% of its revenue. Coors markets about dozen beers in the US, including Blue Moon Belgian White Ale, George Killian's Irish Red Lager, and Keystone. It also makes Zima, a clear, malt-based brew, and Coors Non-Alcoholic. Coors bought the UK's Carling brand from Interbrew, and making it the #2 brewer in the UK. The heirs of Adolph Coors control about one-third of firms voting stock.

History

It was in 1968 that Adolph Coors stowed away on a ship bound for the United States. He had recently completed an apprenticeship a brewery in his native country Germany and was seeking new challenges in anew country. When the ship docked in the US (actually Baltimore), the young immigrant had little money and few possessions. Nevertheless, he had a dream and that was to have a brewery of his own. Adolph soon headed out across America in search of his dream. He worked in various jobs until accepting a position as a supervisor at the Stenger Brewery in Illinois. After two years he became restless he became restless with a desire to start his own brewery, resigned and pushed westward. He found his new home in Colorado in 1872.

Coors spent a year diligently searching for the site of the brewery. He was particularly attracted to the clear cool spring of the Rocky Mountain in a town called Golden. In 1873, he founded the brewery in Golden, Colorado, in partnership with Jacob Schueler, a local businessperson. In 1880, Adolph Coors bought out his partner to become the sole owner. The brewery grew steadily until 1916, the beginning of Prohibition. The brewery was able to survive during the Prohibition years by making malted milk and other products. Coors went back to brewing beer after Prohibition was repealed in 1933. Although Adolph Coors died in 1929, a few years prior the resurgence of the beer industry, he lived long enough to see that his company would not only survive, but also prosper. Every since Adolph Coors dream of having his own brewery came true in 1873, his commitment to quality has been unsurpassed in the brewing industry. Today, Coors produces America's finest quality beers, all made in the tradition ingredients begun by its founder and passed on to generations of his family. With annual sales exceeding 32 million barrels, Coors remains at the forefront of the brewing industry, building on a rich heritage to meet the needs and expectations of its consumers. It is a heritage that began with the commitment made by Adolph Coors way back in 1873: to brew the finest-quality beers, using the highest-quality ingredients available. (www.coors.com)

From my research, Coors is in content of being a big player in the beer market, and plans to increase sales globally. I found that the company also displays its stability and reviewed one of its most successful products Coors Light., owned by Coors Brewing Company, under the marketing view and financial view. However, the product is losing market share in the U.S. market. As a flagship brand, which accounts for hefty three-quarters of its U.S. volume has stalled and the push into the low-carb beer has flopped.

Although Coors is the third largest brewer in the U.S., it only has 11 per cent of the market share; it lacks the scale of rivals Anheuser Busch Cos. Inc. with 50 per cent, and SABMiller PLC, with 19 per cent, whose Bud Light and Miller Brands, respectively, have Coors Light gasping for air. "It's very difficult in the U.S market. They are going to have spend more to grow the business, "UBS Securities analyst Caroline said of Coors.

In 2003, it was difficult year for Coors, especially in the United States. Some of the environmental aspects that were tangible in 2003 are the following

* Weakness in the U.S economy

* The war in Iraq

* Bad weather in the Northeast

* Low-carbohydrate trend

* The high popularity of wine and spirits

Although, Coors is looking back to 2003, it needs to look forward to achieve the player status that this company needs to be.

In 2004, it already has begun strengthening with a merger between Coors and Molson. The outlook in 2004 is to look forward and create brand loyalty through the young adult drinkers. This will be a long-term investment to be ahead of the competition in the future. Other strategies will to seize opportunities in trends like launching and supporting Aspen Edge, which is part of the low-carb segment. Other possibilities would to be reposition Zima and continue to establish placements in the UK and globally

Table of Contents

* Environmental Overview

* Coors Brands Goals

* Historical Trends

* Volume and Spend Target

* Getting there - Strategy

* Brand Strategy

* Game Plan for 2004

* Getting there - Implementation

* Key Activities

* Conclusion

Environmental Overview

* Economics Recession

o In 2003, the national unemployment remains the highest in 7 years.

o Consumer sentiment during 2003 has

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