Module 1 – Case

INSIDE THE BUYER’S MIND

Case Assignment

Can MillerCoors increase the sales of BOTH Coors Light and Miller Lite? How can MillerCoors differentiate these similar products so that people see a difference between Miller Lite and Coors Light, between Miller Light and Budweiser and between Coors Light and Bud Light thereby making the products appeal to different markets?

Answer the question and defend the positions you take in each of your answers. Ensure that you repeat the assignment question (in bold above) in full and verbatim on the title sheet of your paper.

The Situation

MillerCoors Struggles to Differentiate and Grow Former Rivals While Taking on Anheuser-Busch

Submit your 3-4 page paper by the Module deadline.

Assignment Expectations

In preparing your CASE1; you need to demonstrate your learning of the concepts and frameworks for analysis outlined in the modular learning objectives. In particular, are expected to define the following psychological concepts:

• ground,
• figure,
• differentiation,
• generalization,
• discrimination,
• perception, and
• cognition.

In that regard, differentiation is a psychological process in which figure is pulled out of ground (click on Examples of Discrimination in the Mod 1 Presentations file to practice pulling out the figure from the ground) and product differentiation are the marketing activities that causes people to see similarities or differences between the company’s products and competitive products. Note also that I am interested in your understanding of the psychological process of discrimination rather than biased actions.

In preparing your paper, note that:

Currently there is switching between the brands because there is generalization – people see no difference between the products. They purchase whatever is ‘on sale.’

The advertising ‘rules of thumb’ that apply to this case are:

1. If there are physical differences between the products, emphasize those differences.
2. If there are differences in who uses the products, emphasize those differences.
3. Are there perceivable physical differences between the products? If so, can those differences be used as a basis for the differentiation?
4. Are there perceivable social and cultural differences between those that choose one product or the other? If so, can those differences be used as a basis for differentiation?
5. Are there perceivable price differences between the products? If so, can those differences be used as a basis for differentiation?
6. Are there geographic differences in preferences for the products? If so, can those differences be used as a basis for differentiation?

Note that this assignment does NOT require you to prepare a detailed essay. Instead use section headings for each of the topics you address in your paper followed by a discussion of that topic.

Case-related articles in the popular press

Mullman, Jeremy. (2008). An Ultimate Light Beer Challenge for MillerCoors. MillerCoors Struggles to Differentiate and Grow Former Rivals While Taking on Anheuser-Busch. Advertising Age. (Midwest region edition, August 11). Chicago: 79(31) p. 8. Available March 7, 2013

Coors Light’s sales surged 5% in the second quarter of 2008; Miller Lite’s declined 1.6%. That presents a conundrum for the newly merged MillerCoors: how to grow one brand without damaging the other — and, tougher still, how to get both brands to gain ground on market leader Anheuser-Busch?

Get the latest word on shifting market shares among light beer brands by Googling:

Market Shares of Bud Light, Miller Lite, and Coors Light.

Rev. March 7, 2013