Michelob Plansbook

CONTENTS

EXECUTIVE SUMMARY...........................3-5 INDUSTRY OVERVIEW............................6-7 SITUATION ANALYSIS............................8 HISTORICAL OVERVIEW..........................8-9 CONSUMER RESEARCH...........................9-10 ADVERTISING STRATEGY........................11-13 CREATIVE STRATEGY.............................14 MEDIA PLAN.......................................15-17 PROMOTIONS AND PUBLIC RELATIONS......18-19 CREATIVE WORK..................................20-26 APPENDIX..........................................27

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EXECUTIVE SUMMARY Industry Overview

Situation Analysis

Company Overview

Product Overview and Highlights

• Cold war is in full swing, USA and USSR build up

• Michelob Ultra is a diet beer that low in calories and low in carbohydrates. The product is 4.1 % alcohol, 95 calories, 2.6 carbs. With a filtered bottle, the product contains Pale two-row and Munich six-row barley, select grains, all imported hops, and a pure cultured yeast strain

arms Space race is also heating up. USSR launched Sputnik in 1957, leading to the creation of NASA. USSR also had first man in space in 1961. • By 1962, the American beer industry was already becoming an oligopoly due to huge breweries like Anheuser-Busch buying out many smaller regional breweries. • By 1957, Anheuser-Busch had become the largest brewery in America, Budweiser its top brand. • Michelob line was not very big at the time. However, many beer advertisements of the period made appeals based on their “light” flavors. Introducing a truly light beer at this time could be very successful.

Competition • Because Anheuser-Busch produces both Budweiser

and Michelob, Michelob Ultra will not be competing with Budweiser. Instead, its primary competition will be Schlitz, the next most popular beer of the time. Schlitz advertised heavily during this time period and used the concept of “light” in its ads. • Secondary competition will include other popular beers of the time like Blatz and Hamm’s. • The strengths of Michelob Ultra’s competition lie in their brand equity. Despite not being a real light beer, Schlitz used the word light in their ads. Also, Michelob did not have a large market share at the time, so its competition was much more visible nationally.

Description of the Product: Market Positioning • Marketing to people who are concerned with calories as well as carbohydrates with a diet beer of this sort will be affective as beers of this era do not stress the nutritional aspects of their beers, and this product will allow for a new brand category.

Historical Overview • The Michelob brand was introduced in 1896 by Anheuser-Busch as a beer connoisseur’s draft beer and remained that way until 1961 when it was first bottled and sold off draft. Even today, Michelob retains its position as an affluent, prestigious beverage. • Although it was Miller Brewing Co. that beat out Budweiser with the first ever light beer in 1974, AnheuserBusch answered three years later with the introduction of two light beers, one of them Michelob Light. • In 2002, Michelob Ultra became the first low-carb beer. It was created as a response to the growing Atkins diet trend. The new brand was wildly successful and became the fastest growing brand in company history.

• The major weakness of Ultra’s competitors is that they are not true light beers.



Consumer Research Target Markets

• Young adult men, Older, affluent men, and housewives

Primary market

• Young professional Male: Age 18-30; Image Con-

scious-Michelob Ultra would be perceived in a positive light due to the increased consciousness about carbohydrate intake among the American public • Michelob Ultra could be marketed for use in a few different ways. One clear advantage is the ability to intake a greater amount without filling up.

Psychographics • Primary: The Hymadirs (Healthy Young Male Adults with Discretionary Income for Recreation)-Secondary: The GOLFers (Garnered affluence, Older men, Late career or retired, Fun-seekers)

• Undeveloped/Potential: Married housewives

Ultra and establishing it is the leader in the category. Increasing consumption the product goes hand and hand with these objectives. • Short term goals for the product include creating a brand category for light (diet) beers, educating consumers about the nutritional benefits of the product and the aspects of taste that are relevant. Also creating brand awareness for the product. • Long term goals for the product include creating brand loyalty as well as regular consumption within our customers with long term education and emphasis on the aspects of the product that make it the leader in the category. • By promoting Michelob Ultra as a low carbohydrate low calorie beer with a light taste, this new category of beers should draw attention from our target and make our product stand out. The Space element behind the creative copy should draw attention due it’s relevance with the time period and help in creating brand awareness and stating brand loyalty.

• We expect strong sales due to the health craze of

that era and due to Miller Lite’s subsequent successful introduction in 1974, which serves as a case study • Michelob is viewed as a classy beer. It has been a draught beer, typically consumed by beer connoisseurs, for the majority of its existence in the U.S. • A majority of our target market can be found in the major cosmopolitan hubs such as New York and Chicago. There is a strong concentration along the West and Southeastern coasts as well.

Advertising Strategy and Objectives • Our main goal is to create a brand category for light beers creating brand awareness for Michelob

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Creative Strategy

Media Plan

Copy elements

• Our goal is not to completely saturate the market. Rather, we would like to specifically target our particular markets (as much as possible). In addition, certain ads will appear on widely viewed, expensive, mass-market spots.

• Minimal copy suggesting themes long associated with beer advertising in the United States such as patriotism, fitness, improved technology, and flavor. The ads will appeal to a broad range of Americans by bringing in the concept of the space-race and American superiority. • Appeal also comes in the form of copy stressing the scientific approach taken to create the first true light beer and the benefits (a beer that is flavorful but with less carbohydrates and less filling than competitors) to the consumer. • Our copy will have aspects of image and reason-why advertising. We will use image advertising to project a sense of Americana and reason-why advertising to bring the technological advances associated with a true light beer to the attention of our target audience. • The key selling idea of our campaign’s copy will stress that Michelob Ultra is a beer ahead of its time, a “beer for the space age”. The USP is built right into the product, the fact that it is the first true light beer in the world.

Art Elements • Advertisements will show men and women in our target age group enjoying the product in settings such as beaches and parks, suggesting an active lifestyle. • Ads will also portray a sense of patriotism and American technological superiority via American flags and the use of nationally produced goods (automobiles, clothing, etc.) within the images. Ads may also include direct references to the newly created NASA and include space program imagery. • The pictures and photographs in the campaign will be paramount, along with attention-grabbing headlines referencing the space program and new technology of the beverage.

• Our advertisements will have a strong presence in the nationally circulated magazines that are frequently read by our target markets. Playboy, Sports Illustrated, and Fortune. • There will also be a significant effort to reach the various markets through the medium of radio. • A television presence will be slim due to high advertising cost. However, this will be the most efficient way of reaching a mass audience with one ad. • Infrequent placement of ads on popular shows such as The Andy Griffith Show. • Very popular medium, especially with our primary market. Promotions and Public Relations • We will revive the classic Anheuser-Busch “five-daytest”, promising that if our low-carb beer does not better fit our consumers’ lifestyle, we’ll pay for it. • Michelob “Beach Teams” will walk shorelines promoting the low-carb Michelob Ultra lifestyle. • Michelob street teams will hand out coupons at the 1962 World Series. • Michelob Ultra taste tests will be held on beaches and in popular bars across the country, stressing the negligible difference between low-carb Michelob Ultra and other light beers. • Michelob Ultra will sponsor NASA’s Mercury space travel program.

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INDUSTRY OVERVIEW History The American beer industry grew rapidly during the latter half of the 19th century. Close to the turn of the twentieth century, nearly every city in America had its own breweries. When prohibition occurred in the 1920’s, many breweries went under. Some breweries began producing non-alcoholic beverages with a beer taste and limited quantities of actual alcohol through loopholes that allowed its use in certain limited applications like religious ceremonies. After prohibition ended, the beer industry began to turn into an oligopoly. By the 1960’s, the American beer industry was becoming more consolidated and companies like Schlitz, AnheuserBusch, Pabst and Miller were leaders.

Competition Primary: Schlitz Beer • Schlitz is one of the oldest breweries in the country. By 1962, Schlitz beer is a top seller and viewed as a good yet affordable working-class beer. Schlitz uses a long-running slogan “The beer that made Milwaukee famous” in the majority of its ads.

Trends After World War II, returning troops quickly began forming families of their own and aspiring toward the American dream. By the late 1950’s, these families had matured and the dominant threat to American global power was thought to be communism. The ensuing cold war has fueled a space race that heated up in the late 1950’s/early 1960’s when the USSR launched the first satellite into space and later had the first man in space. This year, the Mercury space program, part of the newly formed NASA, is in full swing. Many advertisements play off of patriotic and space-oriented themes during this period. Beer advertising today relies heavily on slogans and jingles. The use of appeals based on a “light” taste are also common in current beer advertisements, though no true light beer exists other than Ultra.

Outlook Despite the large quantity of different kinds of beer available to Americans at this time, most find it difficult to discern one from another easily. Most large-scale beers are produced in nearly identical ways. Because of this, when beer began being advertised on television in the 1950’s, most breweries differentiated themselves by creating more image-based campaigns. Major competitors have already built up brand equity through television ads spanning the 1950’s. Michelob Ultra must differentiate itself from all other beers advertising in 1962 through its unique selling proposition.

• Strengths: Schlitz is a very popular, nationally available beer. Their major strength is heavy advertising, which has created a lot of brand equity. At this time, they are using image-driven advertising with athletic men, however they are also advertising their beer as being “light.” It comes in standard cans and bottles and is available at most bars. • Weaknesses: Despite advertising the beer as “light”, it is not truly a light beer. A scientifically developed light beer may have truly adverse effects on a major part of Schlitz’s advertising strategy.

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INDUSTRY OVERVIEW (Cont.)

Secondary: Hamm’s Beer • Hamm’s beer was originally a Minnesota brand and became a popular national brand by 1962. Hamm’s advertises heavily and plays off of its Minnesota heritage through the use of slogans like “From the land of sky blue waters” in jingles on television.

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SITUATION ANALYSIS Product Overview • Michelob Ultra is a diet beer that is low in calories and carbohydrates in relation to competing beers in the market • The product is 4.1% alcohol by volume, with only 95 calories, and it has only 2.6 grams of carbohydrates • With a filtered bottle, the product contains Pale two-row and Munich six-row barley, select grains, all imported hops, and a pure cultured yeast strain. Michelob Ultra is a light beer that contains significantly less calories and carbohydrates than other beers currently on the market (i.e. Anheuser-Busch’s competitors). The product’s packaging gives the product a look of supremacy. This superiority is evident by the product’s light form and great taste, a result of Michelob’s use of selective, high quality ingredients.

Market Positioning (light taste) Michelob Ultra will be marketed towards consumers who are concerned with their health. Thus, the low-calorie, low-carbohydrate aspect of the product will be emphasized. With a “diet beer” of this sort, marketing in this manner will be effective. We believe this because other beers of this era do not stress the nutritional aspects of their beers. Michelob’s competitors’ failure to establish a brand in line with the nutritional needs of the consumers opens the door for a new brand category. Michelob will invent the new brand category, “light beers.” Michelob Ultra will be established as the first light beer and will be marketed as such. All competitors introducing light beers into the market after this point will be seen as copycats.

The first benefit of a true “light” form is the taste element. Americans generally prefer a smooth, lighter feel to their beer. The “light” aspect of the product’s form is also a key marketing point for health conscious consumers. The light quality of Ultra will allow us to market it as a ‘diet beer,’ the beer of choice for the active consumer.

Historical Overview History of Anheuser-Busch Co. • 1879: E. Anheuser and Co. changed its name to AnheuserBusch in 1879 when Adolphus Busch married the daughter of founder Eberhard Anheuser. The company, now the largest brewery in the world, was born. Just one year later, Anheuser dies and Busch takes the company. • 1896: The Michelob brand was introduced. The beer was marketed as a fine draft beer for beer connoisseurs and served only on draft. • 1920: Prohibition begins and Anheuser Busch diversifies into other markets. The company produces ice cream, ginger ale, grape flavored sodas, root beer, truck and bus bodies, and malt syrup for those who make homemade beer. • 1933: The Anheuser-Busch Clydesdale horses are introduced. Not long after, the company became the first brewery to sponsor a radio network. A 2.5 million dollar campaign called “Pick-a-Pair of Six-Packs” became the most successful promotion in the history of the industry • 1953: The company purchases the St. Louis Cardinals baseball team in order to appeal to a younger and more active demographic. • 1961: The Michelob brand begins producing the beer in a distinct teardrop shape with gold foil neck. This change marks the first time the brand has ever been sold in any way except on draft.

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HISTORICAL OVERVIEW (Cont.) Technological Advances

• 1881: First use of artificial refrigeration in the brewery • 1913: Busch patents the first diesel engine and installed it in the brewery to increase production. • 1936: Budweiser beer is sold in cans for the first time

Product Scope While Michelob Ultra is simply a bottled beer, parent company Anheuser-Busch has had a history of making unique investments in other areas. Prohibition and two world wars have forced the company to change its product offerings, for better or for worse. During World War I, the company founded a subsidiary to produce engines for American submarines. When prohibition rolled around, Anheuser Busch sensed the need for diversification, and the company began bottling malt syrup for home brewers. In addition, they began producing other foods and beverages including ginger ale, ice cream, root-beer, and grape soda. Additionally, Anheuser Busch has formed subsidiaries to produce truck bodies and refrigerator cabinets. In World War II the company supplied the allied forces with ammunition hoists, which were produced by a company subsidiary. Anheuser also entirely suspended its operations along the west coast in order to provide in-use freight cars to the army for war supplies. On the home front, Anheuser-Busch donated spent grain to struggling farmers in the U.S. Later, in 1953, the company dove head-first into the sporting market. It purchased the St. Louis Cardinals baseball team. A few years later, in 1957, Busch Gardens, a company owned Adventure Park, was opened. All in all, a long history of diversification and generous donation helps the Anheuser-Busch label communicate a sense of tradition to its consumers. This sentiment of tradition transcends the company name and it leaks into every brand it produces. We expect Michelob Ultra to do very well working under their parent company umbrella.

CONSUMER RESEARCH The General Market

Our target markets consist of urban, young-adult and adult men and women who live an active lifestyle. The men and women in our market are image conscious or otherwise concerned with and mindful of their physical health and how it is affected by their dietary habits. Dietary habits, such as cholesterol intake and fat intake, are a major point of interest for the typical American today. A recent survey indicates that about one-fourth of American families have changed their diet as a result of the ongoing cholesterol scare. While the cholesterol scare is based on a long history of research, carbohydrates appear to be in the early stages of becoming a concern as well. Recent studies indicate that one can reduce one’s waistline by engaging in low carbohydrate, high protein diets. A diet rich in protein induces the body to a state of diuresis, followed by a chronic state of ketosis, which suppresses the appetite of the individual. We believe that carbohydrates have the potential to become a health factor for the health-conscious consumer. We look at this feature as a key selling point of your product.

Individual Market Segments Primary Market Identified Our primary market consists of young-adult men professionals aged 18 to 30. These men are image conscious and pursue nutritional habits that are conductive to the well-being of their physical health. They typically participate in sporting activities and other endeavors in order to satisfy their thirst for recreational stimulation. Additionally, our primary market is located in primarily urban markets. In particular, our primary market is located in the major cosmopolitan hubs (such as New York and Chicago). Furthermore, there is a strong concentration of our target market along the West and Southeastern Coasts. We have coined the term ‘the Hymadirs’ to psychographically categorize this market. The Hymadirs stands for Healthy Young Male Adults with Discretionary Income for Recreation.

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CONSUMER RESEARCH (Cont.)

There is sufficient evidence to believe that a light beer, which would be the first of its product type, would be successful in today’s day and age with our primary market. There is evidence that carbohydrates are becoming a dietary concern for many Americans. Carbohydrate intake among Americans was has been on a slow and steady decline from 1930 until this year. Additionally, scientists discovered in the late 1950s that an increase in calories from proteins and fats (instead of carbs) would lead to a decreased appetite. The magnitude to which Americans actually are concerned with their carbohydrate intake is rather low at this point. However, other dietary habits, such as cholesterol intake and fat intake, are a point of interest for the typical American. We believe that, given this atmosphere, we can make the market see the benefits of a reduction in carbohydrate intake. We will highlight two strong benefits of a low carb beverage • You can enjoy more beer without filling up • You can maintain a physically fit appearance

Undeveloped Market Identified

Our undeveloped market consists of young women, either single or just recently married, who live an active lifestyle. The general age range of these women would be from eighteen to twenty-eight years old. These women, still being young, enjoy going out and having a good time, but they are also concerned with their dietary habits as a result of a desire to maintain a physically fit appearance. This market as well will consist of women from the major metropolitan cities, as well as the areas bordering our nation’s eastern and western coasts. We believe that the nutritional qualities of Michelob Ultra, such as low carbohydrate and low calorie, will be the major selling points for this market. It is a market that has remained largely untapped up until this point. No beer company has been able to reach this company with a great deal of success. The modern advancements of your product, along with our use individual messages, will hopefully allow us to tap into this unexploited market.

Secondary Market Identified

Our secondary market consists of older, affluent men who are concentrated in the same urban areas- Chicago, New York, Boston, etc. and the Western and Southeastern Coasts. These men are either close to retirement or already retired. We have codenamed them psychographic the GOLFers. This stands for Garnered affluence, Older men, Late career or retired, Fun-seekers. These men live a luxurious lifestyle, and they look for a beer with both the reputation and the taste to match that way of life. Thus far your brand has enjoyed a good reputation with this market. The trick here will be making the secondary market see the new, lighter, bottled version as having maintained the great taste of the traditional draught beer they have grown to love.

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ADVERTISING STRATEGY Advertising Goals Short-Term Goals • Create a brand category for light beers • Educate consumers about the nutritional benefits of Michelob Ultra • Highlight the aspects of taste that are relevant to our target markets • Create brand awareness for the product Long –Term Goals • Create brand loyalty among our customers • Regular consumption of the product • Long-term education and emphasis an the aspects of the product that make it the leader in the category

Quantified Expression of Goals See Chart: Next Page

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ADVERTISING STRATEGY (Cont.) Product Positioning

Michelob Ultra will be extended to every outlet that sells alcohol. It will be at all major grocery stores, gas stations, and liquor stores. The product will also be available at special events such as Major League Baseball games as well national amusement parks and state fairs. As brand awareness and consumption of the product increases, Michelob Ultra will become available at national restaurants, as well as bars across the nation.

• The product will come in standard amber colored bottles.

• The bottles will be packaged in six-pack, cardboard holders carrying over the brand colors (blue, red, and gold) • Branding of the product will appear on every aspect of the product, this includes the bottle cap, the bottle itself, the wrapper on the bottle, and each side of the six-pack cardboard holders as well as both sides of the handle on the holder

Product Differentiation

Prospective Buying Influences



The biggest selling point that Michelob Ultra has is its “light” status. The light quality offers the consumer an alternative to the traditional, high calorie, high carbohydrate beer. These conventional beers are viewed as ‘heavy’ by many Americans. A light beer with a light taste serves people who are looking for a healthier beer. It also serves consumers who are simply looking for a lighter tasting beer. Another strong selling point is the high quality of the product. With premium ingredients and packaging the product stands out as a high quality product that is similarly priced to its competition. This competition ranges from highly established brands with high prestige to brands with more of a “working class” image. The product is readily available to the public which makes it convenient to purchase. The prioritization of the different markets takes the logical course in the form of primary market, secondary, and finally the potential market.

Our main goal is to create a brand category for light beers by creating brand awareness for Michelob Ultra. Furthermore, we will establish it as the leader in its category. Increasing consumption of the product goes hand in hand with these objectives. By promoting Michelob Ultra as a low-carbohydrate, low-calorie beer with a light taste, this new brand, which has created a new category of beers, should create a buzz amongst our target market. The Space-Race element behind the creative copy should draw attention because of its relevance with our time period. It will help to create brand awareness and brand loyalty. Michelob Ultra will be presented as a high quality beer that is priced competitively with its competitors. That we have established light beer as a new category is a key selling point. Our unprecedented product will hit the market with a bang, and it will stay at the top of its category as the king of light beers.

Classification, Packaging, Branding • Michelob Ultra will be classified as a premium lager that is the first beer in the “light’ category • Packaging will remain traditional and easily recognizable due to the gold foil-striped label

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CREATIVE STRATEGY • The key selling idea of our campaign’s copy will Through our advertising copy and artwork we hope to portray Michelob Ultra as a premium lager ,with appeal to a wide array of consumer target groups including young men 18-30, older affluent men and working women. Our copy and art elements will suggest Ultra is the patriotic, progressive choice among discerning American beer drinkers. Copy Depending on the specific target demographic our copy will stress our three common themes to various degrees: • Space-age patriotism • Technology • Health and fitness

Copy elements: • Minimal copy suggesting themes long associated with beer advertising in the United States such as patriotism, fitness and improved technology and flavor. The ads will appeal to a broad range of Americans by bringing in the concept of the space race and American superiority. • Appeal also comes in the form of copy stressing the scientific approach taken to creating the first true light beer and the benefits (a beer that is flavorful but with less carbohydrates and less filling than competitors) to the consumer. • Our copy will have aspects of image and reason why advertising. We will use image advertising to project a sense of Americana and reason why advertising to bring the technological advances associated with a true light beer to the attention of our target audience.

stress that Michelob ultra is a beer ahead of its time, a beer for the space age. The USP is built right into the product, the fact that it is the first true light beer in the world.

Art Visual Appeals All of our ads will exhibit a common visual style. For each of the target groups, we have created different borders within which we place the content of the ads, usually a picture with some short text. Our visuals will carry over eye-catching details from the product’s packaging itself. For example, in our ads for our primary market we will use a classic charcoal border with images reiterating the brand’s connection to the space age as well as colors from the bottle’s label. Our secondary target ads will focus on golf imagery while also carrying through the color scheme of the bottle. In our ads targeting the “working woman,” we will use a gold border mirroring the gold foil on the Michelob Ultra bottle’s label.

Layout Each of our ads will contain a border surrounding a large image and minimal amounts of copy. Our copy will primarily stress the USP, though for the most part our ads are image-driven, taking cue from the important changes occurring within the advertising industry at this time.

Packaging Our packaging will remain traditional and easily recognizable due to the gold foil-striped label. It will come in standard amber-colored bottles. The bottles will be packaged in six-pack, cardboard holders carrying over the brand colors (blue, red, and gold

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MEDIA

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MEDIA Media Plan

Our media plan is to specifically target our three particular target markets. The major emphasis will be on the primary market, the Hymadirs. We will reach these target markets by using nationally circulated print sources and radio programs that have identifiable audiences. Though our goal is not to completely saturate the market, we will have a limited number of ads that will appear on widely viewed, mass-market spots that are viewed by a solid portion of our whole market. Furthermore, we will sponsor sporting events that are popular among the Hymadirs and GOLFers. Despite a solid budget being allowed for traditional mass media, a good portion of the budget will be reserved for untraditional promotion as well.

Traditional Mass Media Nationally Circulated Magazines - 40% We have chosen to put a heavy emphasis on nationally circulated magazines because of their ability to efficiently segment the market. Using magazines, we will be able to individually tailor our messages so that they appeal to the specific market that we aim to reach. We have chosen these magazines in part because of their popularity with the three particular markets. A few examples of particular magazines that we have chosen to use for each market are as follows. • Primary Market: Playboy, Sports Illustrated, True • Secondary Market: Fortune, The New Yorker, Sports Illustrated



Trade journals have played a factor as well. For example, a recent AdAge informed us of the typical demographic and psychographic who regularly reads Sports Illustrated It matched up well with our preconceived notions of the markets for Michelob Ultra. Thus, the trade journals set us up for a match made in heaven. Sports Illustrated will, in fact, be one of the most widely used magazines to deliver our message because of its astounding ability to reach each and every one of our target markets. In Sports Illustrated our agency will aim to advertise to the target market as a whole. This is due to the fact that not one particular target market that we aim for is the audience for it. Rather, a decent portion of all our specific target markets read this monthly publication. The promotional release sums up the great opportunity that we see in Sports Illustrated. “For every 3 male readers 25-54, there are 2 women readers in this age bracket…85% of SI heads of household are in business or other professions. Two thirds of those are executives, managers or dept. heads…SI families entertain greatly. 85% of SI households drink or serve alcoholic beverages. 1 in 5 of those buys the case.” Launchpad Communications sees no reason that Ultra shouldn’t become the case of choice.

Television – 20% • Ads – 15%: Specific shows on primetime NBC • Sponsorship 10%: World Series, The Masters Golf Tournament

• Undeveloped: Cosmopolitan, Vogue, Sports Illustrated

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The ads that we choose will be placed on television programs that are viewed by a mass audience, with a large portion of that coming from our mass markets. These ads will run sparingly due to their high cost. We have decided to run our advertisements on NBC due to NBC’s standing as a harbinger of modernity. NBC’s position at the forefront of technological advancement in the television industry, signified by its progressive shift to programming in color, is in step with Michelob’s position at the forefront of technological advancement in the beverage industry. A select number of spots will run on widely viewed, primetime television shows that are watched by a sizeable portion of our target markets such as Bonanza, Laramie and the recently introduced Johnny Carson Show. Additionally, we will sponsor two sporting events on television. The World Series will be viewed by a large percentage of our target market and a sizeable percentage of our secondary market. Alternatively, our second event, The Masters, will be viewed by a large percentage of our secondary market and a respectable percentage of our primary market.

Radio – 15% The medium of radio will be used in order to reach our target markets on their favored programs, similar to our strategy with magazines. We plan to put the bulk of our radio advertisements on air at three distinct timeslots. The first two timeslots will be approximately 8:30-9 am and 5-5:30 pm. During these timeslots we will be able to reach both the primary market and the undeveloped market as they are transporting to and from work.

The benefits of radio are similar to those of magazines. We can effectively segment the market and narrow-cast our messages to each of our specific markets. Outdoors/Nontraditional Outdoor – 5%

Outdoor promotions will ensure that awareness of Ultra is increased in the major metropolitan areas that we are targeting. Due to our focus on major cosmopolitan cities, our markets are contained in a fairly dense manner. Thus, we can effectively reach a sizable portion of them with these outdoor advertisements. A heavy focus of this outdoor presence will be on spreading the word about the various promotional and non-traditional marketing events that we have planned.

Unconventional/Event Marketing – 20% Our agency will use many untraditional tactics in order to spread the word about Michelob Ultra. A heavy emphasis needs to be placed on the carbohydrate factor, and the resulting health benefits of a reduction in carbohydrate consumption. However, seeing that the American public is currently somewhat unaware of this health factor, we will have to promote awareness and create intrigue among the American public by talking to them the most effective way there is – face to face. We will stage numerous unconventional promotions at target cities leading up to the product’s launch, and we will continue selected events for a couple months past its release.

The third timeslot will be around 11 am to 1 pm in the afternoon. These ads will play on the news and talk shows that the older affluent generally listen to throughout their day.

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PROMOTIONS/PR

Waist Race

In order to successfully integrate a twenty first century brand based on a flourishing diet trend into the 1962 consumer goods marketplace, substantial promotional efforts will be necessary. In addition to our advertising, which seeks to subtly and creatively show the consumer that Michelob Ultra is a technologically superior beer, our promotional efforts will inform the consumer as well as create a greater awareness of the product. Our promotional efforts will take cues from Anheuser-Bush’s promotional history for inspiration on new ideas.



Our advantage in working under a long-standing parent company umbrella –

Beach Teams:

…We Know What Works.

Refunds or Rebates After prohibition ended in the 1930’s, Anheuser-Bush was faced with consumers who were hesitant to return to the taste of bitter commercial beer. Instead, these consumers favored their home grown flavors. As we attempt to introduce a low-carbohydrate beer in 1962, we are faced with a similar problem. Consumers may be hesitant to try a beer with a new, ‘low-carb’ taste. To solve its problem after the Depression, Anheuser-Busch used a campaign called the Five-Day Test. This campaign informed the consumer that he/she would prefer the taste of Budweiser beer to their own recipe. The campaign said guaranteed the customer would appreciate Budweiser’s taste within 5 days. We would like to revive this campaign. We will promise the consumer that if he/she does not feel better about his/her body and health after five days of drinking Michelob Ultra, we will refund his/her purchase.

To surround the launch of Michelob Ultra, we’d like to develop a non-traditional promotional event for our third, undeveloped market- that of the young, active, female worker. This is the market that wherein we will stress the product’s health benefits. We will position Michelob Ultra as the beer that is most conducive to a slimming diet. The “Waist Race” is simply a clever strategy-themed name that we will give to this national, health-associated event.

The Anheuser-Busch company has experienced great success targeting specific demographics. The company hired one hundred college graduates to promote Anheuser-Busch beer on college campuses. It resulted in a significant sales boost for Anheuser-Busch beer. That resulting sales boost has inspired us to revive this campaign for the present day. Our product is a low-carbohydrate beer, and it is favorable for an active low-calorie lifestyle. Thus, it should be promoted at locations where people live the lifestyle that we encourage. Beaches are perfect locations. There are many beaches that are specifically popular with the young adult males of our primary market. The men at these beaches are generally fairly concerned with their physical appearance. Thus, we trust that they would be accepting of new products that would help them to better their appearance. We will hire beach teams to promote our product at these locales throughout the country.

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Ball Teams The Anheuser-Busch acquisition of the St. Louis Cardinals baseball team in 1953 proved to be an excellent investment. Baseball is one of America’s biggest sports, and the World Series is one of the biggest gatherings of sports fans in a single location in the world. As we attempt to promote a healthy lifestyle beer, few events express our brand image more thoroughly than a sporting event like the World Series. Street teams will promote the beer and the active, healthy Michelob Ultra lifestyle to a demographic that is already appreciative of these values.

If you add in the “weightlessness” aspect of it being a truly light beer, you have all the ingredients for a smash promotional campaign. By sponsoring the program and astronauts, such as John Glenn, Michelob Ultra will have found a way to affectively position itself as a genuine, historical brand.

Taste Testing We believe that Michelob Ultra offers a full, rich taste, just like other light beers outside of its category. To prove it, we would like to host taste tests on beaches and at outdoor events like golfing tournaments and firework displays over the summer of 1962. Consumers will be asked to try three cups with one beer in each. Michelob Ultra will occupy one cup, our closest competitor’s beer will occupy another, and regular Michelob beer will occupy the final cup. If the consumer can differentiate between the beers successfully, we will award them free Michelob Ultra. We intend for this promotion to create significant buzz as it challenges and involves the consumer in a place that facilitates viral marketing among our target

NASA Sponsorship Last, but certainly not least, is Michelob’s sponsorship of the NASA Mercury program. Our entire creative campaign revolves around the space race mentality, present in the minds of consumers throughout most of the 1960’s. We have found the intensity of this sort of historical event is easily relatable to the introduction of Michelob Ultra into the marketplace. American competitive spirit is high as we are attempting to beat the Soviets in achievements in outer space. Michelob Ultra has a similar “race” competitive spirit. It is proud to be the first low carbohydrate beer in the marketplace.



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NON-TRADITIONAL/PROMOTIONS TEASER BILLBOARD “AHEAD OF ITS TIME”



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NON-TRADITIONAL/PROMOTIONS WAIST-RACE SHELTER POSTER “PREPARE FOR THE GREAT TAKE-OFF CHICAGOANS”



21

PRIMARY MARKET PRINT



“WELL FELLAS, LET’S SWING IT BACK TO NEW YORK”



22

PRIMARY MARKET PRINT II “NOT EVERYONE CAN GET THERE FIRST”



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SECONDARY MARKET





“FOR THE FIRST TRUE LIGHT BEER OF YOUR ERA”

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SECONDARY MARKET II

“LOOK FOR THE GOLD STANDARD”



25

UNDEVELOPED MARKET



“THE NEW ULTRA: FIT AND FUN”



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APPENDIX





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TRADE JOURNALS/ SUPPORTING DOCUMENTATION







Advertising Age: April 9, 1962. Volume 33. Issue 15. Advertising Age: April 2, 1962. Volume 33. Issue 14. Advertising Age: April 30, 1962. Volume 33. Issue 18. Advertising Age: May 14, 1962. Volume 33. Issue 20 Advertising Age: June 11, 1962. Volume 33. Issue 24 Advertising Age: November 17, 2003. Vol 74. Issue 46. Brandweek: January 27, 2003. Volume 44. Issue 4. Brandweek: 1/29/2007, Vol. 48 Issue 5, p6-6, 1/2p, 1c Marketing Week (01419285); 7/31/2003, Vol. 26 Issue 31, p5, 1/5p Marketing Magazine. 6/23/2004, p9-9, 1/9p 7 Mar. 2007 . Marketing Magazine: 5/25/2005, p6-6, 1/8p

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“Nielsen Average Audience.” Advertising Age. July 2, 1962. Vol.33/ No.27. Advertising Publications, Inc.



“Sports Illustrated Audience: Statistical Characteristics.” Advertising Age. July 30, 1962. Vol.33/No.31. Advertising Publications, Inc.



Raykowski, Laura K. Popular Diets: “What Practitioners Should Know.” Nurse Practitioner. Oct. 2006, Vol.31 Issue 10. pp.55-57.



Roth, Dennis. “America’s Fascination with Nutrition.” Food Review. Vol.23, Issue 1.



D’Arcy Advertising Collection. Reel #216, 1962.



Beer Commercials: Falstaff, Miller, Blatz, Hamms, Jax, etc. Videocassette. Holly wood’s Attick, 1996.



Miller, Carl H. “Beer and Television: Perfectly Tuned In.” All About Beer. Jan. 2002. 27 Mar. 2007. http://www.allaboutbeer.com/features/226%20beerandtv.html.



Greyser, Stephen, Robert P. Hyde, David W. Nylen, Richard F. Spears, and Burleigh B. Gardner. “The Case of the Befuddled Brewers.” Harvard Business Review 39 (1961): 136-154. Business Source Complete. 28 Mar. 2007.



Anheuser-Busch. 27 Feb. 2007











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