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Moosehead Case Study
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2. Quebec, densely populated with over 7 million residents, has the second largest beer consumption market in Canada with an estimated 5.3 million hectolitres of beer consumption a year.
3. ¾ purchased from independent retailers and chains (grocery stores, convenience store, some at Société des alcools du Québec).
5. As Quebec and New Brunswick are neighbouring provinces, distribution costs would be significantly lower than shipping to other provinces. However, higher interprovincial trade barriers contrast this.
8. Most beer products are purchased at convenience stores called “depaneurs” and not at stores SAQ (Societe d’Alcool a Quebec).
9. Based on statisitcs, bottled beer is the highest ranking over draught and canned.
10. There are over 2000 convenience stores by the name of Couche Tard and thousands of bars/lounges. There are over 600 nightclubs in Quebec alone.
11. Moosehead brews it’s beer at their brewery in Saint Johns, New Brunswick, and has a small share of the McAuslan brewery located in Montreal, Quebec.
12. Moosehead’s total revenue in 2009 was approximately $190 million dollars, greatly increasing since 2003, which brought in an estimated $130 million.
13. Moosehead carries a line of various different beers ranging from light and lime flavoured.
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15. Due to the fact that there will be more exposure of the product, Moosehead will have a greater opportunity for brand awareness, being available in numerous depanneurs.
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17. Overexposure of the brand could cause consumers to perceive Moosehead as a generic brand which is less valuable and less interesting than more illusive brands.
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19. Limits the cost of licensing vendors and retailers to sell the product.
23. Moosehead can select the channels for which they believe will benefit the image and sales of their product.
24. They have more control over the consumers perception of higher value or image of their brand.
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26. This could be costly both from an advertisement perspective and a distribution perspective
27. There are many competitors in the Quebec market who are also on the selective level of distribution.
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29. Arrange with Moosehead to allot 3% of their total revenue, which is valued at approximately $5.7 million for future endeavors regarding brand buildup.
30. Arrange contracts with the retailers that will eventually carry the brand and cease distribution to retailers not apart of the new selective strategy. This means signing with most nightclubs, bars, lounges and select depaneurs namely ‘Couche Tard’ and other higher end convenience stores.
31. Instill a relationship between the wholesaler’s at Moosehead and the retailers in the Quebec region in the attempt to form a vertical marketing channel. Moosehead will ensure that the retailers see a value in their product in order to keep their competitive edge.
32. After developing a relationship with such retailers, we sign a contract ensuring that our product will not be sold under a certain price. Our launch price will stay at the competitive based price of $14.99. This allows the product to receive the perception of increased value by the $2.00 increase, but also keeps us $1.00 below our main competitors, Labatt and Molson.
33. Once our “behind the scenes” work is complete and MH is part of our retailer’s inventory, we will launch our advertising campaign entitled “L’elan dans la ville”. (see Appendix for details on the campaign)
34. After creating attention, interest and desire for MH based on the campaign, we will introduce the new MH promotion that will be featured at Couche Tard independently. The promotion ties into the current campaign and is called “L’elan dans la ville…avec vous” (translated: The moose is in the city…with you.) which will only take place for 2 months. (see Appendix for details on the promotion).
35. Continuing with this plan for a few months, we will then review our sales increase or decrease in the Quebec region to measure the effectiveness of our strategies.
59. an image of the city, with the city lights creatively shaping a Moosehead.
60. Moosehead’s current color scheme as to not deviate too much from the original (gold, green and red).“L’elan dans la ville…avec toi” Promotional Activity 211455152400 As apart of the launch of ‘MH’ a promotional activity will be released in the form of a contest. This is meant to create hype and excitement and thus drawn in consumers who will participate. It involves an “under the cap” contest, provoking consumers to purchase ‘MH’ and find the winning cap. The prize would be a night in the city of Montreal with three friends, all expenses paid and a night’s supply of free ‘MH’. Hotel, nightclub cover, limousine and dinner would all be apart of the contests package. This would satisfy the target market that we are after as well as solidify our attempts to make the “L’elan dans la ville” campaign the next big campaign such as “Got Milk”. REFERENCES Brewers Association of Canada. (2009, October 19th). Domestic Sales Bulletin. Retrieved November 14th, 2009, from The Brewer’s Association of Canada website: http://www.brewers.ca/UserFiles/Documents/Sales%20Bulletins/2009 Beer Pal (2009, September 20th). Evaluation of Moosehead Beer Lager. Retrieved November 13th, 2009, from Beer Pal wesbite: http://www.beerpal.com/Moosehead-(Lager)-Beer/3568/ Mel & Rose (November 18th, 2009). Prices of Moosehead Beer in Quebec. Retrieved November 18th, 2009, from Mel & Rose Website: http://www.melandrose.com/istar.asp Chowhound (May 15th, 2006). Beer Prices in Quebec. Retrieved November 15th, 2009, From Chowhound Website: http://chowhound.chow.com/topics/109381 Hugh Topham (July 10th, 2008). Montrealers, Beer Prices – Quebec vs. Ontario Retrieved November 12th, 2009, from Secure website: https://secure.neap.net/pipermail/montrealers/2008-July/014064.html Blork du Montreal. (2004, November 26th). Buying beer in Quebec. Retrieved November 12th, 2009, from Blork Du Montreal’s website: http://beerblog.genx40.com/archive/2004/november/buyingbeerin Sara Minogue. (2003, May 5th). When to Spend in Quebec. Retrieved November 12th, 2009, from Sara Minogue, Strategy website: http://www.strategyonline.ca/articles/magazine/20030505/quebec.html Brian O’Neal. (1995 December) Distinct Society: Origins, Interpretations, Implications, Retrieved November 12th, 2009: http://www.parl.gc.ca/information/library/prbpubs/bp408-e.htm
![MHA Strategy to enter the Quebec Market Case Study #3Mosaic Marketing Corporation Manpreet Berar, Briana Cowan, Sarah Henderson, Susan Keely, Parker McMullin and Raminique Sahota. Instructor: Anne Marie Webb-Hughes, Marketing 1102SET 1F NOVEMBER 19th 2009Table Of Contents TOC
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Table Of Contents PAGEREF _Toc120169670 2Introduction and Problem Statement3Key Findings and Assumptions for Research4Target Market Analysis6Competitive Analysis7ALTERNATIVE 1 – INTENSIVE DISTRIBUTION PAGEREF _Toc120169675 8ADVANTAGES PAGEREF _Toc120169676 8DISADVANTAGES PAGEREF _Toc120169677 8ALTERNATIVE 2 – EXCLUSIVE DISTRIBUTION PAGEREF _Toc120169678 9ADVANTAGES PAGEREF _Toc120169679 9DISADVANTAGES PAGEREF _Toc120169680 9ALTERNATIVE 3 – SELECTIVE DISTRIBUTION PAGEREF _Toc120169681 10ADVANTAGES: PAGEREF _Toc120169682 10DISADVANTAGES: PAGEREF _Toc120169683 11SOLUTION PAGEREF _Toc120169684 11IMPLEMENTATION PLAN PAGEREF _Toc120169685 12COURSE CONCEPTS PAGEREF _Toc120169686 13APPENDIX PAGEREF _Toc120169687 14“L’elan dans la ville” Advertising Campaign PAGEREF _Toc120169688 14Bottle and Logo Change PAGEREF _Toc120169689 14
L’elan dans la ville…avec toi” Promotional Activity PAGEREF _Toc120169690 15REFERENCES PAGEREF _Toc120169691 16 INTRODUCTION AND PROBLEM STATEMENT Widely respected as one of Canada’s best, Moosehead beer has been incredibly successful throughout Canada, distributing to the majority of the provinces in the country. However, the one province where Moosehead has struggled to effectively penetrate the beer market is in Quebec. This east central Canadian province is the second most populous province after Ontario, and is the only Canadian province whose population is mainly francophone. We feel that the cause of this marketing challenge is due to fact that the Moosehead Company has not productively advertised their product, together with the French-Canadian culture, values and beliefs, to their francophone target market. Having a population with over seven million residents, and consuming approximately 5.3 million hectolitres of beer each year, Quebec is the second largest beer consumption market in Canada. Being recognized as a “distinct society” by Prime Minister Jean Chrétien, the French Canadians of Quebec take great pride in their French language, culture and sophistication. The residents of Quebec are known to be imaginative, fashionable and conscious about their health. In this particular province, cultural identity is strong, and many French Canadians voice their outlook of Quebec culture being more distinguished than that of English-Canada. A marketing strategy that will enable Moosehead to successfully penetrate the Quebec beer market is to incorporate the specific French Canadian cultural vales and characteristics while advertising to this particular province. Also, taking into account that they have become accepted as a distinct society in Canada will also build interest with the francophone residents of Quebec. Given that the company already has the product, deciding the accurate pricing for the product, where to place it for it to be sold, how to promote it and what distribution channel to use are crucial evaluations that need to be made. What is the most effective distribution strategy that Moosehead Beer Company can do to penetrate and obtain market share in the province of Quebec? And how can Moosehead reposition their company to relate to the culture and community of Quebec citizens? KEY FINDINGS AND ASSUMPTIONS FROM RESEARCH ,[object Object]](https://image.slidesharecdn.com/mhfinal-091119144447-phpapp02/85/Moosehead-Case-Study-1-320.jpg)
