Business Communication

BUSINESS COMMUNICATION

MARKET SHARE PROBLEMS AND MARKETING

OF MILLER LITE

Table of Content

Memo 3

Report 4

Position Paper 4

Executive summary 7

Introduction 8

1. Miller brewing corporation 8

1.1. The Company 8

1.2. The product: MILLER LITE 9

2. A main image problem 10

2.1. The Launch of new products provokes the death of the old one 10

2.2. Brand extension 11

2.3. Advertising 12

2.4. One of the main consequences: decrease of Market share 14

3. Strategy to improve Miller’s image, sales and market shares 15

3.1. Advertising 15

3.2. Sponsorship 16

4. Recommendations 18

Conclusion 20

APPENDICES 21

In 2005, MILLER LITE POSSESSES 8, 1% of market share. 21

Memo

The following memo will permit you to highlight all the important points treated in the report.

Miller Lite is produced by the Miller Brewery Corporation since 1972. This beer is second on the US market, preceded by Anheuser Busch. Its sales and its market shares decrease since several years due to its confused image and its not always coherent strategy. According to some specialists, the company made several mistakes: focus on new successful products and “abandon” of the old successful one (1), develops a huge line extension of beer which provokes customers’ confusion (2), use of a generic name for the launch of Miller “Lite”(3), use of expensive and futile advertising (4). The main consequences of these mistakes are a fall of markets shares and a decrease of sales because of confused consumers.

To resolve these mistakes the company focused its strategy on comparison advertising. It permits to differentiate it from Anheuser Busch thanks to its strength: low carbs, taste and quality. This campaign was risked, AB was confident and powerful, it replied easily with other advertising. Nevertheless, Miller Lite seems to get winner. It equally became sponsorship of the US Super bowl which increased its sells comfortably.

To improve the situation some recommendations...