Michelob Ultra - Seth Hatfield

Michelob Ultra
Fixing a Media False Start
Jamie Culver, Seth Hatfield, Alphie
Gilette, Roz McDonald
Agenda
I.  Introduction (Julia)
II.  Industry Overview (Julia)
III.  Competitors (Seth)
IV.  Share of Voice (Seth)
V.  SWOT (Seth)
VI.  Research Tools (Seth)
VII.  Target Audience (Rachael)
VIII. Day in the Life (Xiaofei)
IX.  Media Objectives (Xiaofei)
X.  Media Strategies (Xiaofei)
XI.  Online (Julia)
XII.  Magazines (Xiaofei)
XIII.  OOH (Rachael)
XIV.  Direct Marketing (Seth)
XV.  Radio (Seth)
XVI.  Budget Breakdown (Julia)
XVII.  Executions (Seth)
XVIII.  Media Report Card
(Xiaofei)
XIX.  Rationle (Rachael)
Product Overview
•  2.6 grams carbs/95 calories
per 12-oz
•  Positioning as active lifestyle
beer for the athletically
minded
Source: Mintel, Michelob Website
Current Problem
Domestic Light Beer Market
• Decrease in total volume sales for second year in
a row
Market Share by Manufacturer
• Michelob Ultra:
2.9% of A-B’s
market share
A-B
A-B
59.4 %
MillerCoors
Pabst Brewing
N.A.Breweries
Boston Beer
Other
Sources http://articles.latimes.com/2012/jan/17/business/la-fi-beer-20120117
Mintel. Beer: The Market – US – December 2011 – Brand Share – Flavored Malt Beverages
Marketing Objectives
•  Increase sales by developing a new media plan
targeting a responsive audience
•  Leverage on-message media choices to contribute to
Michelob Ultra’s brand identity
•  Identify proper media mix and schedule to reach
audience when they are thinking about purchasing
alcohol
•  Broaden target with introduction of 19th Hole Tea &
Lemonade
Direct Competitors
Lo carb beers
Malternatives
Indirect Competitors
Craft beers
Hipster beers
Wine
Cocktails
Competitive Analysis
Low Cal/Carb
High Price
Low Price
High Cal/Carb
Share of Voice
A-B InBev
MillerCoors
Heineken USA
Crown Imports
Boston Beer (Samuel Adams)
Diageo-Guinness USA
Mike’s Hard Beverage
Pabst Brewing
KPS Capital Partners/N.A. Breweries
New Belgium Brewing
Source: Mintel
SWOT
Strengths
Low cal and carb
Broad appeal
Associated with being
active
First to market
Weaknesses
Price
No top of mind
awareness
Opportunities
Threats
Expansion to hard juices
and tea market
Healthy, active lifestyle
trend
Flavored alcoholic drinks
Regular light beers
Craft beer movement
Media Research Tools
Target Audience
•  Adults 21-34 drink the
most beer, light beer as
beer of choice
Active &
healthy
lifestyle
•  Not yet developed brand
preference/loyalty, prefer
a wide selection of beer
•  Health most valued by
25-34 year olds
Source: Mintel
The
ULTRA
Life
Attractive
and fit
Maintain
appearance
& image
Meet Doug and Betsy
Doug, age 28
Financial analyst (190)
MBA from Emory (157)
Frequents ESPN.com
Watches FX “It’s Always
Sunny,” “The League” and
“Louie” online (135)
Prizm segment - “Young digerati”
Recently married (118)
HHI $160,000 (201)
$240,000 home (140) in
Dunwoody, GA (129)
Betsy, age 26
Paralegal (177)
Part time master’s
student (164)
Watches 30 Rock on her
iPad (142)
Subscribes to Self
Magazine (183)
Sources MRI+ Fall 2010 Product/Beverages/Low Calorie Domestic Beer/Drank in Last 6 Months Michelob Ultra
Nielsen Prizm Segmentation System. Claritas.com/mybestsegments
Prizm
Young Digerati
•  Tech-savvy
•  Educated
•  Trendy
Lifestage Group: Young Achievers
2010 Statistics: US Households: 1,403,157 Median HH Income: $91,104 Source: Nielsen
Primary Target Example - Mark
• 
• 
• 
• 
• 
Works for TD Bank
25 years old
Exclusively light beer drinker
Obviously enjoys golf
Switches between Bud Light and
Michelob Ultra
“[Mich Ultra] is good
for when you’re going all
day. [It helps me] keep
an even keel.”
“I probably wouldn’t
order it at a bar.”
Primary Target Example- Matt
• 
• 
• 
• 
• 
MBA Student
25 years old
Beer drinker
Conscious of appearance
Avid sports/fitness fan
“Michelob Ultra is a Chick
Drink.”
“When you see a guy
drinking that, you chirp
him.”
Billboards outdoor
quintile I (143)
A Day in the Life
Weekday
7am
8am
morning news commute
9am
work
12pm
lunch
6pm
commute
8pm
television
Radio spots
radio quintile III (129)
Weekend
8pm
10am
Fri night drive/flight
trip to golf course watch sporting event on tv
Source: Mintel
1pm
6pm
visit store for grillin’ supplies
Media Objectives
•  Strategy focuses on reach and frequency
•  Media buying nationally; focus on the Northeast
and Midwest for Michelob Ultra beer, focus on
the South for 19th hole flavored beverage
•  Main media outlets for plan:
–  Print (magazines)
–  Online
–  Out-of-Home
–  Direct Mail
–  Radio
Media Strategies
•  Combine a flighting and continuous strategy
–  Flighting: OOH, Direct Mail, Radio
–  Continuous: Online, Magazines
•  Strategic timing and placement around specific
sporting events and season
–  Result: Increase top-of-mind awareness and
purchase intent
Online Media
Banner Ads
•  67% Female Traffic
•  High index (131)
•  For 6 months: $16,746 Net
Source: MRI, Media kits
• 
• 
• 
• 
High Traffic: 7,507,000
61% Male Traffic
Reach sports-enthusiasts
For 6 months: $267,996 Net
Banner Ads
• 
• 
• 
• 
High Traffic: 4,687,540
Sports enthusiasts
High index (145)
For 6 months: $167,340 Net
Source: MRI, Media kits
•  Reinforce magazine
advertising
•  Active lifestyle enthusiasts
•  For 6 months: $7,332 Net
Re-Targeting
•  Follow consumers who are looking at different
sporting event sites and follow them to different
websites with Michelob Ultra and 19th Hole ads
–  Duration: 10 days for 1 month (US Open)
–  Total Cost: $179,896 Net
Source: MRI, Media kits
Total Online Media Spend
$999,102
Magazines
Readership
Profile
•  young, upscale
•  educated
•  active, health
•  stylish
Source: SRDS, Magazine Media Kits
•  Median age: 30.4
•  Men: 79%
•  Men 18-34: 31%
•  Median HHI: $80,815
•  HHI $100+: 33%
Source: ESPN Media Kit, Men’s Health Media Kit
•  Median age: 37.4
•  Median HHI: $79,629
•  Men: 83.5%
•  College+ : 37%
•  Professional/managerial: 29%
•  Own home: 63%
•  Median age: 34.0
•  Ages 18-49: 83%
•  Median HHI: $77,643
•  Male/female: 73%/27%
•  College+ : 70%
•  Professional/managerial: 49%
Source: GQ Media Kit, Self Media Kit
•  Median age: 38
•  Median HHI: $81,374
•  Male/female: 6%, 94%
•  Any College+ : 78%
•  Professional/managerial: 35%
Circ: 2,109,547
CPM: $93.79
Cost: $395,726
For 6 months
Circ: 1,875,048
CPM: $88.75
Cost: $998,478
Circ: 980,254
CPM: $139.98
Cost: $823,326
Circ: 1,528,041 CPM: $$81.14
Cost: $875,196
Total Magazine Spend: $3,092,726
Out of Home
Billboards
Airports
Gas Stations
OOH Billboard Buying Example
!
Source: Clear Channel
Boston!
Weekly!GRP!
Total!
(Gross!Rating! Panels!
Point)!Based!
on!EOI!
Total!4;week! Total!4;week! 4;week!
Rate!per!Face! Cost!
Impressions!
(Adults!18+)!
4;week!
Impressions!
(Adults!18+!HHI!
$75K+)!
!
!
!
!
!
!
!
!
350!
300!
250!
200!
150!
100!
50!
25!
$12,180!
$12,180!
$12,940!
$12,940!
$12,940!
$14,465!
$14,465!
$14,465!
31,394,376!
26,966,964!
22,539,552!
18,112,140!
13,684,728!
8,854,824!
4,427,412!
2,414,952!
78!
67!
56!
45!
34!
22!
11!
4!
$950,040!
$816,060!
$724,640!
$582,300!
$439,960!
$159,115!
$159,115!
$86,790!
63,081,096!
54,185,044!
45,288,992!
36,392,940!
27,496,888!
17,792,104!
8,896,052!
4,852,392!
Locations (Major Markets)
Northeast: Boston, New York
Midwest: Chicago, Minneapolis
South: Atlanta
GRP=25, July-October
Boston billboards: $14,465 rate per face
4 locations
$295,086 total
Chicago billboards: $7,000 rate per face
7 locations
$166,600 total
New York billboards: $20,260 rate per face
13 locations
$895,495.40 total
Minneapolis billboards: $9,600 rate per face
3 locations
$97,920 total
Atlanta billboards: $3,700 rate per face
4 locations
$50,320 total
Billboard total= $1,505,421.40
Source: Clear Channel
Airports
July and August
Boston (Logan): $105,570 total
$52.79 CPM/month
New York (JFK): $151,937.50 total
$89.38 CPM/month
Chicago (O’Hare): $99,569 total
$58.57 CPM/month
Minneapolis (St. Paul): $28,842.20 total
$39.92 CPM/month
Atlanta (HJAIA): $97,325 total
$57.25 CPM/month
Airport Total= $483,243.70
Source: Klapisch Media
GSTV
July and August
Boston: $37,200/month
New York: $66,979.15/month
Chicago: $50,235/month
Minneapolis: $46,282.50/month
Atlanta: $39,767.25/month
GSTV Total= $480,927.80
Source: Klapisch Media
Total OOH Spend= $2,439,592.90
Direct Mail
Direct Mail
Bottle-shaped postcard with branded
golfball giveaway
List: Ultimate Golfer from Penton
Media (Golf product
multibuyers 5x a year)
1,929,731 people
CPM: $10
Sending out to people on list one time
Source: SRDS
DM Total= $19,297.31
Radio
Buys leading up to weekends,
specifically on summer holidays
Wednesday
3:00 pm - 7:00 pm
(120)
Thursday
3:00 pm - 7:00 pm
(120)
Saturday
3:00 pm - 7:00 pm
(123)
7:00 pm – Midnight
(100)
Friday
3:00 pm - 7:00 pm
(120)
7:00 pm – Midnight
(100)
Sunday
3:00 pm - 7:00 pm
(120)
Source MRI+ Fall 2010 Product Beverages Drank in last 6 months: Michelob Ultra
Radio
Talk
Classic Rock
Country
Oldies
Rhythmic
Rock
Sports
Urban
(122)
(131)
(133)
(126)
(134)
(147)
(136)
(132)
Atlanta: CPP $298
Boston: CPP $384
Chicago: CPP $385
Minneapolis: CPP $326
New York: CPP $658
Source MRI+ Local Market 2010 Boston Beverages Low Cal Domestic Beer Drank in last 6 months: Coors Light + Bud Light
Total Radio Spend= $1,394,680.00
Media Budget Breakdown
Total Budget
7%
Magazine
16%
36%
0%
Online
Out-of-home
Direct Mail
Radio
29%
Contingency
12%
Executions
Executions
Executions
Media Report Card
Vehicle
Pros
Cons
Online
Highly Targeted, Measurable and Cluttered, low CTR
Trackable, Low-Cost, High level
of reach
Magazines
Visually complex, high passalong, niche audience
Early closing dates, fragmented
media space
OOH
Large/Effective Reach, Cost
Effective, No Consumer
Control, Combination of
Traditional and Non-Traditional
Only Seconds of Viewing Time
Direct Mail
Targeted and Personalized
Considered Junk or Clutter
Radio
Reaches captive audience,
frequency easier due to low cost
Station-changing, may not reach
target at all
Strengths of Media Plan
• 
• 
• 
• 
• 
Reach
Targeting a lifestyle segment
Mix across multiple media outlets
Sports and lifestyle associations
Strategic timing
Thank you!
Any questions?