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Labatt Blue Case Study

In: Business and Management

Submitted By mdshahahsan
Words 2004
Pages 9
Marketing Background

Labatt Blue was launched in 1951. The nickname “Blue” originated in Manitoba due to the colour of the label and the company’s support of the Winnipeg Blue Bombers football team. –

External Influences

Economic Trends:
The Canadian economy shrank in this year's second quarter for the first time since the end of the recession in mid-2009. Statistics Canada said gross domestic product contracted 0.4 per cent between the second and first quarters of this year, when expressed in annualized terms. That's the weakest performance since the 3.7 per cent decline seen in the second quarter of 2009. Although the recession has past and Canada has improved, the unemployment rate in Canada was last reported at 7.4 percent in November of 2011. A decline of 53,000 in part-time work was partially offset by an increase of 35,000 in full-time. Compared with a year earlier, the number of part-time workers was down 1.9% (-62,000), while full-time employment grew by 2.0% (+274,000).

Social and Demographics:
Marketing communications has always played a key role in creating an image to attract a target market. Budweiser and Bud Lite are popular brands in the NFL and NASCAR, and true fans will then purchase those specific brands. It becomes their brand of choice. Labatt Blue had sponsorship ties with the NHL and Canadian teams and the CFL and several teams but recently, Molson has taken over the sponsorship of The Toronto Maple Leafs, which Labatt used to have. This was a huge loss for the company as Toronto is the largest city in Canada and generates one-fifth of the gross domestic product of Canada. This being said, The Air Canada Center sells Molson Canadian rather than Labatt at hockey games. There are 18,800 seats at the Air Canada Center, and say at least 16,000 people purchase at least one beer, which costs $8.00, that is $128,000 in sales that Labatt…...

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