Tennents Research for Assignment PDF

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Summary

All the research I collected in preparation for the Tennent's brand management assignment for the brand audit and for ideas for the assignment....

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My Notes for Tennent’s Research

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Tennents lager – 4% ‘best served ice cold’ Yougov o More popular with baby boomers and gen x o More popular with men This lager is often touted as ‘Scotland’s Best Selling Pint’ and has been brewed since 1885. It too is brewed with 100% Scottish barley, making it a truly local beer Raise a pint and toast to Tennent's as the popular lager has been named as Scotland's favourite alcohol brand. The much-loved tipple topped the influential Scottish Brand Review for 2018 and was recognised as the number one 'take home' booze brand for Scots. Pilot beer iced tea ale – voted top 3 best beers in Scotland? – summer beer to be drunk cold Light in colour Tennents invest in new low emission trucks 2016 – achieved zero waste to landfill Contains only 100% Scottish barley Shop -!!! – bring in new product – water bottle ? If you crack a beer and leave it open it will be done in 4 hours or so. If you open one, pour a serving, and close it with a sealing cork/rubber stopper it will last about 8-12 hours. If you open one, pour a serving, and then seal it and evacuate the air you will get a day. Chilly's are perfect for keeping wine, beer and cocktails cold! Tennents supports Scottish rugbry from the grass roots up ‘were the first pint with your mates before the game’ First can of lager to be created in the uk – at wellpark brewery Local farmers grow all the barley – helping get as much of Scotland as we can into each and every pint Iconic red T Leading alcohol brand In addition to the iconic pint, Tennent’s is also available in 330ml, 440ml, 500ml, 568ml cans, 300ml limited edition bottles and 5 Litre kegs. Gluten free T The golden can Rare tennents lager cans including lager lovelies are now a collectors item – marketing promo with this? Charlie and choc factory kind of thing? Bud light ‘the golden can: find me if you can’ promo rewarding shoppers who discover one of 200 golden cans hidden in participating retailers o £230 or tickets to bud light sponsored events

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o “Whilst remaining a simple treasure hunt, the competition is driven by consumer-led insights and research, ensuring that we’re reaching our consumers in the most effective ways, and therefore helping our customers to do so as well.” Don’t sell a low-calorie version – joke on twitter Lots of brand extensions – IPA, scotch ale, 1885 lager, stout, extra Tennents pub crawl October 2019 – tennents plans to invest 14m in environmental initiatives Has become a huge UK export TWEET – ‘why do you not do a low calorie tennents lager?’ – we do, mate – its called a half-pint Lots of people hate tennents – tastes like water – undrinkable Because of their ‘uninspiring flavours means they are easier to drink in large quantities Amy macdonals honoured by tennents and received the golden can award o Cultural icon T of the park was a rite of passage In the absence of a lead sponsor like the TITP/Tennent's relationship, TRNSMT was partnered with Carlsberg, Somersby, Utilita, Pepsi Max and more. Brewer has done a lot of work to try and keep younger drinkers interested in the brand as well as increase the quality of dispense o Launch of a new concrete font, resplendent ith a carved T in 2004 – raised image of brand amond consumers and was money well spent Brand strategy to retain 18-30 year old core of drinkers WARC – tennent breweries o The decline n appeal of the standard lager sector, especially among the under 30s, presented Tennant's, as the leading brand in the sector, with particular problems. Man climbed mount Everest and drank can at the top Tennents ice cold – trailed in irish market Tennents Lager Be Chilled Service o 2013 o T in the park o Campers can pre-order their cans to pick them up ice cold Tennents new can deisng – to look like a refreshing cold glass of tennents lager Had roll out of new cans with on-pack promotion to win free engraved pint glasses

Tennents are aware that their standard lager offering cannot indefinitely stave off the threat from premium rivals. But the long-term success of Tennent's Lager branding now offers a way to extend the brand's provenance into the premium category. A stronger premium draught version of Tennent's Lager again utilising the Red T symbol as the primary branding device will be ready for launch in 1999. Strengths of tennents

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Has had a consistent long-term advertising strategy that has been instrumental in helping the brand to weather the changes that has seen fundamental structural changes to the marketplace Standard strenfth lager – 4.1% - generated fierce customer loyalty, particular in the working class heartlands of Glasgow and west of Scotland Accounts for 1 in 4 pints of beer drunk in Scotland, domindates standard lager secor Widely recognised as Scottish lager – universal appeal, fits all occasions Amazing, interactive advertising – snowball practice billboard – funny twitter – funny solutions to everyday problems

Threats -

As tJust as teenagers do not want to wear the same clothes as their fathers, the beer market is equally subject to fashion. Inevitably for a brand in such a commanding position as Tennent's Lager there is a danger of being seen as ordinary, old-fashioned and undynamic for the trend-conscious younger drinker. Thus, for Scottish teenagers who reached legal drinking age in the early 1990s, Tennents was a brand they had always seen around, but not one that was personally relevant to them: it could too easily be dismissed as an older man's pint:

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'I just always think of it as being my dad's drink' There is a decline in the appeal of the standard sector, especially amongst the under 30s Need to revitalise brand among a younger audience

Tennents Ice Cold -

Beaten to punch by rivals carling and guiniess who were quick to tap into the extra cold market But after Tennent's Ice Cold taps were piloted in certain pubs across Scotland and Ireland, their market share rose 2.4 per cent. o The leap came in an ultra-competitive market where beer sales have dwindled year-on-year as drinkers sup more wine and spirits. o Tennent's Lager marketing director Kirsty Hunter said: "Over the past year, our market share has grown and we are confident Ice Cold has played a big part in our success." o As a result of the pilot, Tennent's Ice Cold will now be available in more than 3000 bars in Scotland. o A Tennent's source said: "When Ice Cold hit the market there were already other big firms with similar products. o "Recent results show that Tennent's is as strong as ever and that our cold lager is the one Scottish drinkers want." – 2012 o 2006 - The drinks industry's obsession with producing colder and colder lagers has reached its logical conclusion - a beer that comes out of the pump half-frozen.

o Tennents brought out their "Cold" variety - with the special glasses that keep the fizz going.  The new sub-zero lager is designed to be served at minus 2.5°C, a temperature at which a layer of slushy ice crystals floats just below the foamy head.  Slush lol Competitors -

“Beer guy” Jeff Adams held on to a beer in each hand as a World Series ball hit him. Within 48 hours, he was in a nationally televised ad. – bud light You can buy post Malone branded bud light

Industry Reports -

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Beer – Euromonitor!! 2018 – beer sales increased due to good weather and world cup Inbev UK – leading player in beer Premium and craft beer are main growth drivers in beer Premium lager grew 5.2% in 17/18 compared to standard lager growing 1.7% Moderation trend has shifted consumers preference from quantity and affordability to premium products Consumers showing interest in quality, experience and provenance in beer – greater willingness to pay for premium beer o Premium lager seeing strong volume growth Flavour innovation The number of pubs closing down is increasing o Volume sales in pubs have generally been in decline o Many pubs closing down due to challenges with high running costs and shift in consumption from on trade to off trade o Changing habits to home consumption – less frequent pub visits o Therefore promoting a valuable experience is key to pushing value growth in the on-trade Consumer behaviour in the UK 2019 Leisure habits – socialise with friends in person most popular Female – go shopping for leisure What’s working in beer and cider Heineken using chatbot technology to gather innovation funnel insights Coors light – collabed with snapchat to reach millennials in the US – produce firt real time ads from summit of mount Everest Coronado used technology from thinfilm to engage young consumers through physical to digital interactive coasters Stella cause-related integration Tiger beer branded event – drive growth and awareness among young males through annual football event

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Honest brew direct mail campaign o Recruit new customers with limited budgets o Engaging packaging increased customer aquistions Badger ales creative competition o Engaging content series built consumer base o Advertising initiative grew sales and awareness through a contest partnership with unilad o Aim to increase consideration and relevance among 25-5 year old beer drinkers o ‘ultimate bbq shed’ competition on facebook o 5.8m engagements, 1.6m shares o Reach people beyond a brands core audience, encourage them to share social content with friends o With a limited budget, the right content partnership and format is crucial for building brand awareness levels o The key to success is creating a campaign that focuses on broader audience interests o Coors light out of home campaign – bus shelters Coronado interactive coasters o Using experiential engagement tactics in a product launch o Differentiate the brand in a crowded market o This demographic is highly receptive to mobile engagement Warc Heineken UK: igniting convo used YouTube to lead the discussion around a rising social issue in order to build a more meaningful relationship with millennials in the UK Heineken needed to recruit a new generation of Heineken drinkers in a crowded category, where the average lager drinker had a nine-brand repertoire Generated 11.9% volume sales uplift in campaign period Beer undergoing premiumisation – driven by health conscious millennials, adopting a quality over quantity mind set o When they drank, they opted for beers with unique stories Developed it when nation was more divided than ever – people avoided talking to those with different opinions Launch event  film release  conversation Campaign was far eqching and engaging Sales increased Rise of no-alcohol beer No-alcohl beer the latest niche to show strong growth WARC alcoholic drinks AB In Bev – leading alcohol company – realised that innovation for beer rate is slow – beer not up to speed on consumer needs – need to have much better insights o Part of thid process is partnering with other drinks companies o A tie up with Keurig Dr Pepper, for example, has seen it create capsules to present a range of 24 different cocktails via a bartop machine that mimics

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the technology of Keurig coffee and espresso makers. – WARC ab ibev flips its marketing approach Passport – innovation and disruption in alcoholic drinks – 2018 Key finding – packaging: thinking outside the bottle – in the era of social media proliferation appearances and design cues are ever more important o Conviniene, facilitationg a variety of rinking occasions, sustainability and environmental credentials will only gain further momentum March of the hybrids – while authenticity and heritage retain their importance, imaginative twists on established formulas and straddling the line between categories will provide fresh oppurtunities  Premiumisation also retains its relevance across the board, following up on years of relevance and growing momentum across segments. However, caution needs to be exercised as the next recessionary cycle is already overdue, so companies should begin exploring value propositions and affordable, yet reliable trading-down options in order not to be asleep at the helm when it inevitably hits. Key themes o Premium beer o New packaging forats o Cross-category and intra category hybrid drinks – will be very influential trend in the next 5 years Remium extensions or launches need to be anchored in raftmanship and authenticity rather than bling and conspicuous consumption as drinkers are becoming increasingly more savvy and sophisticated . As the long-overdue next recessionary cycle should be just around the corner, a polarisation strategy, offering both trading-up and trading-down opportunities, should replace monolithic premiumisation tactics. – Tennent's will have their normal cans and premium ones to appeal to current and new markets Packaging - Convenience, sustainability and environmental credentials, counterfeiting and fraud limiting capabilities and facilitating different drinking occasions will be key as increasingly more discerning and activist consumers demand more than just a basic functional container o Green gen – flaxbottle o Cooleos cooleo double layer wine bottles – designed to provide a chilled glass of wine, whatever the outside temperature – doule walled design provides an insulating layer to keep the wine cole, eliminating need for potentially messy ice buckets or trips to the fridge o Carlsberg snap pack While flabor sophistication, premiumisation initiatives and extensions will continue to dominae headlines in industry, pioneering technology will radically alter the way alcoholic drinks are produced, distributed and consumed Sensory experienes Alcoholic drinks cannot remain immune to the technological developments now embedded in the lives of its core millennial and gen z demographics Products defying categorisation

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o Glens vodka and shazamable neck tags on all 70cl bottles to gain entry to a prize draw Hybrid products and blurring of key segments definitional limits will reshape alcoholic drinks Gen z – demands for creative deconstruction n imaginative twists on established formulas o Noveltea – tea based gin, whiskey and rum o Apothic brew – limited red wine infused with cold brew coffee Yougov – glass half full or empthy? Increase in at home drinking Faced with evolving market, beer brands need to know who their customers are and how they can reach and engage new audiences effectively Tennents rated bottom – umber 39 on list of consumer perception of whether a brand represents poor or good quality with a score of (-4) 2018 Tennents has successfully set themselves apart from many other brands with memorable and iconic campaigns Profile of milenial beer and cider drinkers o 62& are male o 41% single o Drinking/partying o Live to eat o More likely to eat takeaways o Drinking habits: when buying alcohol from shops most likely for catching up with friends o When drinking out: after work, night out, live-eveent, catching up with friends o Engaged 50% by bus stops o Engaged by podcasts twice more than others o 48% use facebook to organise their social life Old speckled hen campaign o Appeale to existing customers – enjou hiking, climbing, outdoor / cycling / bird watching o New converts – 30% enjoy hiking, climbing, outdoor pursuits, 23% cycling (18-34 year olds) o Young drinkers – holiday activities: o Young drinkers are also more likely than average to be keen on outdoor pursuits – indicates that the these and imagery in the advert are likely to strike a chord with current old speckled hen drinkers (37% camping, walking or hiking)(mountain biking – 10%) British beer and pub association show that sales of beer in shops now outstrips sales in pubs Pub drinkers – believe its worth paying extra for good quality beer and wine o Like to try new drinks o Very engaged with the world at large – media consumption

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o Significantly more likely to have notices ads, especially billboards, taxis, buses Old Speckled Hen’s advertising campaign is a great example of a brand tapping into themes which will retain current customers while neatly branching out to younger demographics who may yet be tempted away from craft beer or cider.

Tennents -

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Here to serve Marketing campaign Aim to achieve a 65% reach for 18-24 year old males in sotland, while being cautious not to compromise a wider appeal Need to keep resonating with our rinkers Personalised party Accounts for one in four pints of all beer drunk in Scotland The unique status of tennents lager means that the brand can affort to take similar risks without alienating its core customers The Red T ogo has contributed enourmousy o the sature of the brand – has become as immediately recognisable to our target audience as the logos of nike mcdonalds, mercendex etc Pub crawl – years supply to who completes it first

Mintel 2019 global food and drink trends -

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Evergreen consumption Elevated convenience – consumers who are often on the go 1/3 of adults have reduced their alcohol intake 44% of 18-34 year olds are reducing alcohol intake Improved household income create oppurtunities for premium products o Wages have been increasing at a faster pace than inflation since march 2018 with wage growth in UK reaching 3.9% in June 2019 o S Supermarkets are the mot popular place to buy beer !!!!!!!!!!!!!!!!!!!!!!!!! The low-/no-alcohol trend has been gathering pace over recent years. However, 60% of beer drinkers/buyers say they would rather drink less beer than switch to a low-alcohol variant. This would indicate that consumers are still prioritising the more authentic experience of drinking an alcoholic beer o This is discussed under the Mintel Trend, The Real Thing, which talks about how consumers are craving products and experiences that come with a stamp of authenticity. o With 52% of beer drinkers/buyers agreeing low-/no-alcohol beer doesn’t taste as good as standard beer (see Attitudes towards Beer), a negative perception on taste is a barrier to switching.

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Sustainability appeals to majority of beer drinkers/buyers

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Ethical living is high on consumers’ radars. This desire is also evident in beer, with 51% agreeing that a beer brand that acts sustainably is more appealing than one that doesn't. This rises to 64% among 18-24 year olds, who are also more likely than average to say they are trying to live more ethically Sampling would encourage purchasing among 75% - saying they would be more likely to buy a beer they could taste first On-trade venues, simple samping, retail stores can look to beer tasting events to encourage trial, drive, awareness and confidence in consumers o Creates unique and memorable experience PREMIUM While craft is undoubtedly receiving marked attention in the beer market, it proves divisive among consumers as 46% of beer drinkers/buyers would be more likely to try a premium beer than a craft one. That just a quarter of people find craft beer appealing makes it almost surprising that the figure isn’t even higher

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Other stufff Experiences the new social urrency -

72% of millennials would rather spend money on experiences than possessions Consumers are craving new experiences

Drinks packaging trends mintel 2018 -

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Bottles continue to dominate NPD in alcoholic drinks but are losing share Bottles accounted for three quarters of alcoholic drink launches in the UK in 2017. However, their share of launches has been falling since 2015. This stems from a steady increase in the launch of cans into the market. The two main drivers for this have been the rise in slim line cans for ready-to-drink (RTD) spirit mixer drinks, and that of the 330ml can format in craft beers (see Launch Activity and Innovation – Alcoh...