Monday, December 17, 2018
'Alcohol Promotion and the Marketing Industry\r'
'Julie A. Novak International MBA Student York University inc field of operationd(p) for The joining to melt off intoxi washstandtic intoxicantic beverageismic beverold age Promotion in Ontario folk 2004 Working to Reduce the Impact of inebriant de n ace Acknow guidege ments ARAPO wishes to acknowledge the effort and contri exactlyions of the follo upgradeg individuals to this naturals report publisher: Tom Appleyard, inebriantic drink Projects Manager, Ontario Public Health connecter Ben Rempel, inebriantic drinkic beverageic beverage Projects Consultant, Ontario Public Health experience cunning Sanagan, Co-Chair, standstill to Reduce inebriant Promotion in OntarioJulie A. Novak is an International MBA student, hit the booksing by means of the Schulich School of employment at York University in Ontario. Julie has also completed her cut byÃ¢â¬â¢s stop in Political wisdom at the University of Toronto, and a Bachelor of attainment Degree from the Unive rsity of Victoria. She has held positions in Public Policy in such(prenominal)(prenominal) places as Moldova and Geneva.This paper examines on-line(prenominal) sell expressive styles in the intoxi elicittic deglutitions fabrication that depose meeting the in the domain eye(predicate)Ã¢â¬â¢s come upness and base hit. It is important for world wellness organizations to be awargon of tracks common to the fabrication; this go forth inform and embroider their efforts as watchdogs to manufacturers and retailers of pelter beverage.The analysis describes the fault purpose elements of the selling mix, and makes a clear distinction amongst advertizing and trade. ad is an important de divorcement of the grocery store mix; however, at that place ar several separate tactics and utensils employed by commercial messageiseers in the effort to work on consumer behaviour and to build strong s leaves. The paper reviews current trends in the inebriantic beve rages persistence gener eithery, force specific in eachy on some prototypes from the world- huge beer exertion.In the fleck to incr exempt grocery store sh atomic number 18, marketers give alter their market strategies in rejoinder to industry trends, seeking synergies that whitethorn exist between donorship and onward motion. The paper also arguees the put on of bottle labels for merchandise intoxicant wargons as an eccentric of the overlap of cross elbow room and commonplaceity. This leads into a discussion of the consanguinity between publicizing and pack senescent and how they argon utilize to encourage infusion of certain marks over some other(a)s. publicize trends, such as awakenually explicit satisfy and low-carb and wellness conscious media messages atomic number 18 also plyressed.These atomic number 18 variables in the trade mix. The live section discusses the current guidelines disquieting trade and promotions and the position taken by mingled public health groups such as ARAPO (Association to Reduce souse drink Promotion in Ontario) in response to the current trends and tactics arrest in inebriantic drink marketing and promotion with specific caution to recommendations to regulators. 1 1. 0 INTRODUCTION The Canadian alcoholic beverages industry implicates beer makers, wine producers and distilled inspirit manufacturers. Molson Inc. s the oldest beer snitch in the Canadian brewing industry and a ball-shaped chump name with harvest-feasts that include Molson Canadian, Molson Export, Molson DRY, Rickards, and Brazilian beer brands Kaiser and Bavaria. full(a) send a personal manner exchanges for Molson in 2004 Ã¢â¬ form closedown March 31 Ã¢â¬ were $2. 5 champion million million million. This amounted to yearly cyberspace of $2. 37 million1. A nonher Canadian favourite is sewer Labatt Ltd. , which is owned by the Belgium-based ships friendship Interbrew. The second largest brewer by volume spheric, Interbrew owns a portfolio consisting of, among others, Stella Artois, Carling, and the universal Labatt line of beers.In 2003, Interbrew recorded a tax income profit of Ã¢âÂ¬3. 6 billion, which resulted in a net profit of Ã¢âÂ¬505 million, aft(prenominal) spending an incredible Ã¢âÂ¬1. 3 billion on sales and marketing2. The other three major(ip) players be Sleeman Breweries, unsound lean build from raw material Income Trust, and the Brick Brewing Co. Sleeman, a supererogatoryty brewed exchange premium craft beer, recorded annual sales of $1. 85 million in 20033. bulky Rock Brewing Income Trust recorded net sales of $28 million in 20034. The Brick Brewing Co. , responsible for Formosa and Red Cap brands among others, recorded gross sales of $11. million for the second backside of 2004. This resulted in a record net income of $832,000 over a three-month period5. The Association of Canadian Distillers is the national trade tie-up representing Canada s major distillers. The distilling industry has been estimated to generate $2. 6 billion worth of economic activity. Distillers include, among others: Bacardi Canada Inc. ; Canadian Mist Distillers, Ltd. ; Hiram pushchair & Sons, Ltd. ; Corby Distilleries, Ltd. ; Diageo Canada, Inc. ; and Schenley Distilleries Inc.These distillers produce popular spirits including instiganty, Gin, Cognac, Vodka, Rum, and the ever-popular Canadian Whiskey, CanadaÃ¢â¬â¢s most established interior(prenominal) and exported distilled spirit. Since 1840, at that place pay off been over 200 whiskey distilleries direct with emerge the country, as Canada has gained recognition as a producer of high quality whiskey. This report card has resulted in billions of recorded sales for the Spirits industry. For good example, Diageo recorded sales of US$ 15. 6 billion in 2003. ho engross servant and imported spirits sales for 2003 were recorded at nearly 15 million cases (12 Ã¢â¬ 750 ml. ottles)6. The Canadian Vintners Association is CanadaÃ¢â¬â¢s national association of vintners, representing 34 wineries and producing virtually 90% of CanadaÃ¢â¬â¢s follow wine payoff and export. Winery members include, among others, Jackson-Triggs, Peller Estate, and Hillebrand Estates. Total Canadian wine sales for 2002, was 267 million litres7. Molson one-year comprehend (2004). Interbrew Annual Report (2003). 3 Globe Investor (2004). 4 Big Rock Brewing Annual Report (2003). 5 Just-drinks. com (2004). 6 Association of Canadian Distillers (2004). 7 Canadian Vintners Association (2004). 1 2 1. 1 marketing Ã¢â¬ A Definition The difference between marketing and selling is much than semantic. Selling taperes on the call for of the marketer; marketing on the needs of the buyer8. According to the cargon Knowledge C arrive, Ã¢â¬Å"the selling Concept is the philosophy that firms should learn the needs of their clients and then make decisions to satisfy those needs better than the c ompetition. Ã¢â¬Â9 Additionally, despite misconceptions, marketing is non always publicize. In fact, announce consists yet a small part of the overall marketing mix.The variables of the marketing mix testament manifest in grotesque ways depending on industry characteristics as they ar heavily moldd by local and global industry trends. 1. 2 building Brand Community Building brand commitment is key to the success of the marketing concept. Developing and exploiting crucial relationships among the customer and the brand, the customer and the firm, the customer and the product in use, and among fellow customers10 is a dodge that leads to a belief that the buyer is part of a specific brandÃ¢â¬â¢s Ã¢â¬Å" friendshipÃ¢â¬Â.These relationships argon important because they enable marketers to create brand loyalty and customer retention, which yield the promise of long- destination gainfulness and market sh be11. Like a social community, the brand community tends to be identi fied on the flat coat of commonality or identification among its members12. The brand community members identify through devotion to particular brands or consumption activities, which be connected to other symbols in the marketplace13.For example, a product that is endorsed by a popular celebrity or professional athlete provide appeal to certain brand communities or goat markets, but not all. answers to marketing decides may be cognitive, emotional or material in temper and, ultimately, customers lead value their relationships with their branded possessions and with marketing agents14. The seat for community identification canister be on wide-ranging commonalities that be intemperate to detect. The stability of a brand community through time is an summation to marketers inasmuch as longevity equates with a stable market.Additionally, if marketers argon able to successfully identify where a strength brand community exists, they can use it to bolster their marketing eff orts and build brand loyalty. Furtherto a greater extent, marketers will sartor their strategies such that they resonate with particular existing communities. If used stiffly, this knowledge can be a almighty tool for marketers, as they will put one across great insight into some of the motivations behind consumer behaviour. 1. 3 world(prenominal) Alcoholic Beverage Perspective It is unfeasible to discuss the Canadian alcoholic beverages market without considering the global perspective.In particular, the global beer industry is face increasing pressures 8 Levitt (1986). stock Knowledge fondness (2004). 10 McAlexander et al. (2002). 11 ibid. 12 ib. 13 ibidem 14 ibid. 9 3 of internationalization and consolidation, which argon both the result and the cause of industry-wide mergers, acquisitions, partnerships and strategic alliances. confront low prospects for volume growth in mature, positive markets and increasing competition, brewers continue to seek growth through acqu isitions of other brewers or by aggressive conjunction in developing markets15.Indeed, the top ten brewers worldwide now account for more than half of the intact worldÃ¢â¬â¢s beer, which is an industry first16. attached the neglect of volume growth opportunities in the North American market, the industry trend of affixd marketing and advertize spending continues as companies try to differentiate their brands in a highly saturated market. Not only is the market saturated, but the marketing media are littered. In guild to succeed standout in a cluttered industry, breweries continue to develop creative ideas that generate fervency round their brands.Smaller breweries, in particular, try to increase brand recognition through provocative or low-spirited ad operates since they cannot hope to compete on the identical scale as their larger competitions with respect to the total amounts fatigued on marketing and advertising. 1. 4 The selling Mix It is important to downs tairsstand all of the variables that comprise the marketing mix, or the 4Ps of marketing: Product, Price, Place and Promotion. The 4Ps are the variables that marketers can control in order to shell satisfy the customers in the indicate market17.First, the product is the forcible product or the service offered to the consumer, which can include additional services or conveniences that are part of the offering. Marketers can adjust certain product characteristics such as the functionality, appearance, packaging, brand, quality and service. The second variable, price, reflects caller considerations such as profit margin and competitor pricing, including discounts. Third, place refers to the decisions associated with gets of distribution that act as a means of submiting the target consumers.This includes the channel members along the supply chain, market coverage and the divers(a) service aims. Finally, promotion decisions are all those that interrelate to communicating and sel ling the product to dominance customers. These may include advertising, personal selling, media, public relations and budget. Thus, marketing is a multi-dimensional function that yields a variety of effects. In the alcoholic beverages industry, a mature and highly free-enterprise(a) market, companies experiment with their marketing strategies regularly.The focus of this paper is mainly on promotion and product and, specifically, how these ii variables are manipulated in tandem by marketers to create goodish marketing strategies. 15 16 Todd (2004). ib. 17 McCarthy (1975). 4 1. 5 The Impact of publicize on Consumption and Related Problems Alcohol barers use effective advertising proficiencys to knock over the juvenility market. much(prenominal) techniques connectedness alcohol to physical seduceiveness and sexiness, promote age identification through the use of spokes heap, and use humour, medicament and popular culture icons18.In 2002, $160 million was spent on alcohol advertising in Canada19 and alcohol appears in approximately twain thirds of all programs watched by Canadian teens at an average rate of 8. 1 beverage references per hour20. The consequences of alcohol advertising on public health and safety are considerable. Alcohol use plays a substantial federal agency in all three leading causes of death among young Ã¢â¬ unwitting injuries (including motor fomite fatalities and drowning), suicides and homicides21.Alcohol advertising is linked to patterns of dense drinking, drinking in dangerous situations and deaths from alcohol-related motor vehicle crashes22. In one study, the chances of drinking alcohol go by nearly 10% for teens who watched an extra hour of regular boob tube programming per day23. 2. 0 sure trade TRENDS 2. 1 Synergies Between Promotion and Sponsorship Currently, a dominant trend in the alcohol industry is a link between promotion and sponsorship. Companies are attempting to capitalize on the ynergy that exists in t his area as they keep deeper into the global arena to achieve a greater return on their marketing expenditures. The term synergies denote opportunities for collaboration in which the result that can be achieved is greater than the sum of the individual efforts. An example is the positive spillover of media picture that results when a brand becomes the authorised sponsor of an international sporting event, especially one with wide television coverage. In effect, this amounts to a efficient marketing lawsuit for the sponsoring caller-up, assuming the outcome is self- undifferentiated with the overall brand identity.Another factor contributing to the stupefy for synergies is the seasonality of this industry. Manufacturers prepare for the summer beverage-selling season by ramping up production, increasing their marketing and seeking sponsorship deals, which act as promotional vehicles for new launches and summer products. Sponsorship agreements with internationally recognise sp orting events help to enable a brand to stand out among the clutter. McKenzie (2000). AC Neilson (2004). 20 Robinson et al. (1998). 21 AMA (2003). 22 McKenzie (2000). 23 Robinson et al. (1998). 19 18 2. 1. 1 Sports Sponsorships Alcohol manufactures are increasingly seeking contracts for prescribed sponsorship of highvisibility sporting events as they tell apart the opportunities for synergies between promotion and advertising. The Canadian Code of announce Standards, produced by Advertising Standards Canada states: Ã¢â¬Å"products prohibited from sale to minors must not be advertised in such a way as to appeal particularly to persons under juristic age. [And] people featured in advertisements for such products must be, and clearly seen to be, adults under the law24. High profile sports sponsorships with a toilsome advertising component guess being in violation of this normal. Two of the major international sporting events in Canada, the RogerÃ¢â¬â¢s transfuse in Montreal and the Tennis MasterÃ¢â¬â¢s serial in Toronto are sponsored by breweries. Sleeman is the official sponsor of Tennis Canada in Montreal; Heineken, which is part of the Molson portfolio of brands, is the sponsor in Toronto. The situation in Canada reflects a global trend. In late 2003, Heineken signed a deal with the British Olympic Association (boa) for exclusive sponsorship rights.The deal is part of a Ã¢âÂ¬50 million global empowerment by the brewer25, giving the accompany exclusive rights to the BOA logo. Sponsorship deals are considered an probability for alcohol manufacturers to establish global brand recognition in a militant industry. With huge budgets behind sponsorship deals, and the wide international motion picture that results, it is really difficult for watchdogs to monitor the visibility of alcohol brands. The clientele and audiences at sporting events such as the Olympics are of all ages, youth included.Therefore, limiting exposure of beer ads only to jura l age consumers is nearly an im cerebrateable undertaking. In April of 2004, NASCAR (National Association for Stock Car motorcar Racing) in the US was strongly considering changing its insurance to allow hard-liquor brands to sponsor teams in its top level Nextel Cup Series26. Though such a move could alleviate sponsorship problems for some drivers, it could threaten NASCARÃ¢â¬â¢s appetency to become more family friendly. With this in mind, NASCAR rejected DiageoÃ¢â¬â¢s bid to become official sponsor.This move did not prevent Diageo from landing a sponsorship deal: the company secured a top sponsorship contract for its brand public opinion poll magnificent. eyeshade Royal was signed to be the backup sponsor of the International Race of Champions (IROC), one of the NASCAR events. This tag the first time a hard-liquor marketer was allowed a human action sponsorship for any sport, although DiageoÃ¢â¬â¢s Smirnoff Ice terzetto Black brand has sponsored individual drivers. However, when Diageos Crown Royal brand signed on as the title sponsor for the IROC series in January, NASCAR reiterated its ban on sponsorships from hard liquor and chewing tobacco companies.NASCAR has a long history of partnering with beer marketers for races, but accepting hard-liquor brands would be a complete reversal of NASCARÃ¢â¬â¢s position. Such changes in sports sponsorship put one across vast implications for industry players, marketers and public health groups. In the case of Diageo, the sponsorship deal is one step toward 24 25 Advertising Standards Canada (2004). nameless (a) (2003). 26 Thomaselli (2004). p. 1 6 the achievement of the companyÃ¢â¬â¢s long-term goal of leveling the marketing playing field with beer. 7 As an example, with the three-year deal, Crown Royal will have extensive television exposure, since IROC just sealed a one-year TV pact with Speed Channel, a cable infantryman of countersign Corp. Ã¢â¬Ës Fox28. Such exposure is difficult to track and, thus, even more difficult to regulate. Although spirits have so far been prohibited from comely sponsors, hard-liquor companies can, and have, used their malt beverage products or RTD (Ready to Drink) products29 as sponsors. Diageos Smirnoff Ice, for instance, is one of the sponsors of driver Matt Kenseth, last years NASCAR champion. . 1. 2 Promotion and the Entertainment fabrication Another advertising tactic used by liquor companies is cross-promotion with the pastime industry. This could include joint promotional campaigns between deal studios and alcohol brands or between liquor companies and medicament tours and concerts. An example is the recent collaboration between Adolph Coors Co and MiramaxÃ¢â¬â¢s Ã¢â¬Å"Scary Movie 3Ã¢â¬Â, which was released at the end of 2003. Coors not only advertised around the promotion of this film, but it also had its spokeswomen, the Klimaskewski twins, appear in the film itself30.This technique is other way for companies to realize synergies in marketing and promotion, as in that location exists the potential to grip a broader audience than could be reached through a simple television commercial or cartridge c lip ad. In this case, Coors was attacked by the Marin Institute Ã¢â¬ a public health and safety group Ã¢â¬ for its engagement group in the film promotion. The Marin Institute impeach Coors of defying the alcohol industryÃ¢â¬â¢s guidelines by promoting its connection to this film31. Given the PG-13 rating of the film, there was no way of ensuring that under-age viewing audience were not exposed to the ads.In the euphony industry, there are some(prenominal) examples of activities involving cross-promotional campaigns with alcohol companies. These campaigns are used to achieve synergies from the combined effect of promotion and advertising. Molson Canadian uses this technique regularly, teaming up with Napster to provide medicine downloads and other special music offers. The company launched a campaign vie that involved the giveaway of a Ã¢â¬Å"Molson Canadian Rocks spend Soundtrack, as well as weekly chances to win concert ticketsÃ¢â¬Â32.Trends in promotion and sponsorship in the alcohol industry are of concern to public health groups because they have the ability to reach a wide audience, with little or no regulation. Other forms of promotion and sponsorship exist, however a description of each is beyond the scope of this paper. 27 MacArthur (2004). Ibid. 29 RTD: Ready-to-drink alcoholic beverages, such as Smirnoff Ice and mikeÃ¢â¬â¢s Hard Lemonade. 30 MacArthur (2003). 31 Ibid. 32 Molson Insider (2004). 28 7 3. 0 alcohol MARKETING AND THE INTERNET Alcohol companies are utilise digital marketing as a medium.The Center for Alcohol selling and Youth (CAMY) in the US arrange that alcohol company websites have sizeable youth audiences and contain capability that is attractive to youth33. In particular, games, cartoons, music and a variety of high-tech downloa ds fill many of these sites. In addition, programs designed to allow parents to block their childrenÃ¢â¬â¢s gravel to these sites often fail to do so34. In fact, fifty-five alcohol websites tracked by comScore Media Metrix during the last six months of 2003 had almost 700,000 in-depth visits from underage persons35.Alcohol websites continue to be a cyber playground, with many features attractive to youth36. CAMY executive coach Jim OÃ¢â¬â¢Hara identifies content such as customized music downloads, instant-messaging accessories and games including putt-putt golf, football and spin the bottle37. A recent website analyse done by the Federal Trade relegatingÃ¢â¬â¢s (FTC) Division of Advertising Practices in the US found that both Coors and Anheuser-Busch have sites with downloadable music, online games and ring tones38.In fact, as teens start to log more hours surfing the meshwork than watching television, CAMY and other groups are calling for more regulation on the largely u nregulated medium. Jim Hacker, coach of the Alcohol Policies Project at the Center for Science in the Public Interest, asserts, Ã¢â¬Å"The industry should remove themes, music, deli real and attractions that clearly appeal to underage people. Ã¢â¬Â39 A key issue for health and safety groups is the ease of foiling the age overlookment for viewing beer company websites.An age bar is supposed to weed out new(a)sters who find the sites attractive, but the investigation discovered that online forms can inadvertently Ã¢â¬Å"tipÃ¢â¬Â kids to fill in player answers. The trade journal Brandweek visited both websites, Coors escaped. com and Budweiser. com and was able to enter several fake birth dates from the same computer, gaining access each time40. When questioned, John Kaestner, VPconsumer affairs at Anheuser-Busch, verbalise the brewer had followed federal official guidelines in its age-check system. Other websites attracting attention from the FTC are Bacardi. om, Skyy. co m and the Anheuser-Busch site Bud glisten. com, concord to a study by CAMY 41. The guide is that these sites had the highest partage of underage people making an in-depth visit during the second half of 2003. The findings, which were released in March 2004, showed that 59 percentage, 47 percent and 34 percent of visitors who looked at three or more pages on those previously mentioned sites were underage42. Overall, minors initiated 13. 1 percent of in-depth visits to the 55 branded alcohol sites included in the study. 33Center for Alcohol Marketing and Youth (2004). Ibid. 35 Ibid. 36 Mack (2004). 37 Ibid. 38 Edwards (2004). 39 Ibid. 40 Ibid. 41 Ibid. 42 Ibid. 34 8 This trend is especially worrying for public health and policy groups since the Internet knows no boundaries, and its content is therefore very difficult to regulate. Alcohol advertising on the web and music downloads have the index number to reach all Internet users around the world, of any age. 4. 0 -THE ROLE OF LAB ELING AND PACKAGING IN inebriant MARKETING The alcohol industry relies heavily on the use of labeling and packaging as a irectmarketing tool in the promotion and differentiation of its products. One of the obstacles facing design marketers is that while standout is paramount, they are all first with the same structure: a simple bottle or can43. Since it is not possible to have a vastly different pack, companies differentiate themselves with creative labels or packaging. Marketers in the alcohol industry aim to create synergies among label designs, packaging and advertising, such that the overall brand image more quickly achieves wide recognition.The think result of this coordination is a more effective and co-ordinated means for alcohol companies to communicate with their consumer base, thus promote the selection of their product over another. If the product already has a strong brand identity, it is not little to feature the pack in the ads. In this case, the advertising may be used to communicate other elements of the brand message to create the desired reputation and image with the target audience44. On the other hand, including a shot of the bottle in ads will leaven brand awareness at point of sale and ensure a more integrated climb to branding45.Approximately 60 percent of people in parallel bars and pubs have not decided what drink they unavoidableness until afterwards they get there46. This is an enormous opportunity for brands to reach their target markets directly at the retail level with eye-catching labels that resonate with consumers. Product labels are the final point of brand contact between the company and its customers before the purchase is do. Thus, a brandÃ¢â¬â¢s name and how it is shown on the label can be an effective way of generating sales. The main challenge is finding a way to differentiate a standardise product while developing a strong, consistent brand identity.This is an example of the interaction of product and pro motion, two elements of the marketing mix. Some of the methods used in the ready-to-drink and premium beer sectors, for example, include shrink-wrapping, bright colours and innovations such as metallic-effect labels47. In addition to a queer label, a catchy name, such as Smirnoff Ice or MikeÃ¢â¬â¢s Light will add symbolism and help increase standout and attract consumers. Brand awareness is critical for alcohol companies, and developing a strong brand is especially vital for new brands.The rationale for coordination between promotion and product is that young people, and other potential consumers, will see the campaign in Edwards (2004). Brabbs (2002). 45 Ibid. 46 Ibid. 47 Ibid. 44 43 9 cinemas and style magazines and more easily recognize it from other advertising media 48 . An additional reason to invest in labeling and packaging is flexibility. A shrink-wrap sleeve can be changed frequently, allowing the brand to adapt its appearance more easily to changing styles and trends.U nusual colours or unique label designs can help encourage selection of one product over another at the retail level. The techniques used by marketers are very subtle, such as borrowing design language from parallel markets for encouraging cross purchasing such as Ã¢â¬Å"Atkins friendlyÃ¢â¬Â, Ã¢â¬Å" out of workÃ¢â¬Â or Ã¢â¬Å"low-carb. Ã¢â¬Â Finally, if a particular brand is experiencing low or declining sales, a company can easily reposition it by superficially altering the image and, hence, reinventing a product to reach a new market. 5. 0 TRENDS IN ADVERTISING TECHNIQUESCertain techniques are used by advertisers to attract and engage consumers to their products. These have traditionally included such techniques as humour, sex appeal, popular music, describing benefits of the product, and creating a fun, gratifying atmosphere. These techniques are used very effectively by alcohol advertisers as well, as they create a high Ã¢â¬ËlikingÃ¢â¬â¢ of advertisements among consume rs49. High levels of effective alcohol promotion inculcate pro-drinking attitudes and increase the analogouslihood of heavier drinking50.For these reasons, the do-nothing(prenominal) use of advertising techniques is a growing concern among health and safety encourages. 5. 1 Sexually liberal Content The alcoholic beverages industry has long been accused of exploiting young-begetting(prenominal) sexual fantasies in order to advertise its products. However, this approach has recently, in some opinions, reached new levels of exploitation. proterozoic in 2004, Labatt Breweries of Canada aired an ad during the January Super roller telecast that caused industry watchdogs to protest.The ad featured two beautiful women kissing, ostensibly to share lip-gloss51. Advertising Standards Canada (ASC) stock 113 complaints just about this ad in the first quarter and it was soon taken off the air52. The ASC reported that there was nothing wrong with the ad, other than it should run after 9:3 0pm. This ad is representative of the Ã¢â¬Ësimulated lesbianismÃ¢â¬â¢ trend in beer advertising, clearly a ploy to reach the male heterosexual audience. Labatt is not the only brewery to take this approach.During the same time period, Moosehead Light of New Brunswick launched a series of ads called Ã¢â¬Å"Enjoy the Nature. Ã¢â¬Â In one of the ads, two men look on and crack open beer cans as two beautiful women dance sultrily together in the forest. Ibid. Grube (1996). 50 Babor et al. (2003). 51 Brent (2004). 52 Ibid. 49 48 10 5. 2 Low-Carb Phenomenon & Health Benefits Alcohol marketers must understand the psycho-behavioural forces influencing choice in order to devise effective marketing strategies. These forces are not easily identifiable in any industry.The beer and alcohol industry is not an exception and alcohol marketers have been slow to discern which factors most significantly influence brand selection. Although the sexual angle remains very common in alcohol promo tion, the industry seems to be shifting gears. Instead of trying to titillate men by invoking male fantasies, marketers are now contribute fear in them about getting fat. In a feature article the Financial multiplication reported that beer marketers in the US have made an intriguing psychosexual discovery about male insecurity53.The argument advanced is that men are increasingly more concerned with what they look like than how they will perform in the bedroom. Beer brands such as Anheuser-BuschÃ¢â¬â¢s Michelob Ultra, Coors Light and SABMillerÃ¢â¬â¢s Miller Lite are foc utilise their advertising on the millions of Americans on low- shekels diets, which they have realized does not include only women. By contrast, marketing campaigns linking beers to explicitly sexual imagery have been less effective54. The implication for public health groups is that efforts aimed at regulating sexual content should be reexamined.It is possible that a greater concern could be achieved through a ggressive targeting of ads that portray a health or nutritive benefit of alcohol consumption. As an example, Coors, the third-largest US brewer55, recently developed new ideas for its low-calorie Coors Light. The two-year campaign featuring scantily clad women and rock music was no-win in increasing beer sales for the company. Beer companies are lento discovering that sexual appeals are fun and diverting but they rarely change consumersÃ¢â¬â¢ brand preferences. The idea that Ã¢â¬Å"light beerÃ¢â¬Â is less macho and thus less credibly to appeal to young men is fading.In fact, it is difficult to think of a major beer company that has not introduced a low-carb brand. The success, in general, of low-carb offerings is evident in food stick in data compiled by AC Neilsen. In the quaternity weeks ending June 12, 2004, sales volumes were up 56 percent for Michelob Ultra and 15. 6 percent for Miller Lite56. For Coors Lite, which has been slow to alter its marketing campaign, sales v olumes were down 2. 7 percent57. Major breweries are responding to evolving consumer demands and are providing what could be the upshot of a new sub-category of beer58.As more companies enter the low-carb market, the competition increases for market share. This translates into bigger marketing and advertising budgets as companies fight for a larger slice of the market. The current focus on a more health-conscious lifestyle has shifted the marketing emphasis away from sensuality and sex to body image and achieving athletic success. Some 53 54 Silverman (2004). Ibid. 55 Coors merged with Molson in July 2004. The new company is the 5th largest Brewery by market share worldwide. 56 AC Neilson (2004). 57 Ibid. 8 Brieger (2003). 11 industry experts expect this trend to stick around if not because of Atkins devotees but because of aging baby boomers, who tend to prefer light and low-carb beers59. The way forward in the alcoholic beverages industry will be through low-carb advertising, which can be seen as a serious response by the beer industry to a common male anxiety about growing fat, the proliferation of a healthy lifestyle among consumers, and the far-flung belief of certain health benefits in drinking a low-calorie, low-carbohydrate beverage60.The low-carb trend is not exclusive to the beer industry. In whitethorn of 2004, the Vancouverbased Marc Anthony Group launched a new vodka-based beverage called MikeÃ¢â¬â¢s Light, which was targeted at the millions of Canadians on low-carb diets. The lemon-lime beverage, which is part of the ready-to-drink (RTD) alcoholic market, contains just one gram of carbohydrate and 76 calories and is expected to bring new drinkers into the market61. Already, the RTD market in Canada is estimated to be worth $450 million per year in sales.Additionally, with its low- calorie and low-carb options, the RTD market has the potential to increase consumption of alcoholic beverages as consumers switch from light soft drinks to light er malternatives62. Marketers in this industry are deliberate in promoting RTD products as alternatives for the health and weight-conscious consumer. It is conduct for brewers to promote low-carb beer as being Ã¢â¬Å"Atkins friendlyÃ¢â¬Â or as having overall health benefits and doing so goes against the Canadian Food Inspection AgencyÃ¢â¬â¢s 2003 string to Food Labelling and Advertising. Under these guidelines, lowcarbohydrate claims are not approved.Similarly, according to Advertising Standards Canada, Ã¢â¬Å"No advertisement shall be presented in a format or style which conceals its commercial intentÃ¢â¬Â63. This pertains to misrepresenting beer as having health or athletic benefits. The low-carb claim is of concern to public health groups such as ARAPO because it is both misleading to consumers and has the potential to influence consumer behaviour. 6. 0 ACTIONS TO ADDRESS CONCERNS ABOUT THE MARKETING OF ALCOHOL There have been several responses to concerns about the impac t of alcohol marketing ranging from education and awareness to legal action and civil suits.Internationally, there are groups that advocate changes in alcohol marketing regulations as well as educate professionals and the public about the risks associated with a proliferation of alcohol marketing efforts. These include: Global Alcohol Policy Alliance (UK): www. ias. org. uk Eurocare Ã¢â¬ Advocacy for the prevention of alcohol related harm in Europe (Europe): www. eurocare. org Center for Science in the Public Interest Ã¢â¬ Alcohol Policies Project (US): www. cspinet. org Ibid. Business World (2004). 61 Bellet (2004). 62 The market or ready to drink alcoholic beverages is called the malternative market in the US. 63 Advertising Standards Canada (2004). 60 59 12 BeerSoaksAmerica. org Ã¢â¬ A Response to beer company propaganda (US): www. beersoaksamerica. org The Marin Institute (US): www. marininstitute. org Center for Alcohol Marketing and Youth (US): www. camy. org In Canada, the re are guidelines for advertisers that describe what are considered appropriate tactics for marketing products. These guidelines can be found on the Advertising Standards Canada (ASC) website (www. adstandards. om) for all forms of advertising or on the Canadian receiving set and Telecommunications Commission (CRTC) website (www. crtc. gc. ca) for radio and TV ads. Currently these guidelines are not enforced and rely on a impulsive paid-submission to ASC by the advertiser. Alcohol is one product that seems to have fallen prey to this lack of regulation with many advertisers outright disregarding the guidelines. In Ontario, there are alcohol-advertising guidelines that are overseen by the Alcohol and period of play Commission of Ontario (AGCO) and can be found at www. gco. on. ca. Before 1997, the CRTC was involved in pre-screening advertisements before they were aired. In 1997, this responsibility was transferred to ASC for national cases, and the AGCO for Ontario specific cases . However, in 1997 the regulations changed to Ã¢â¬Å"guidelinesÃ¢â¬Â and preclearance was replaced with Ã¢â¬Å"voluntary submissionÃ¢â¬Â. As a result, the responsibility of monitor alcohol advertising shifted from the CRTC to the general public, as advertisements are now only challenged based on a complaint format.Advertisers, fearing very little in footing of consequences, often disregard the guidelines completely, particularly the following: Alcohol advertising should not: ?? appeal to persons under the legal drinking age ?? associate drinking with activities that require care and skill ?? think of that drinking is mandatory in enhancing enjoyment of any activity ?? imply that drinking is required in obtaining sexual opportunity or appeal64. A study done by CAMY in 2002 found that as the alcohol industry increased its advertising expenditures, more ads were seen by youth.In fact, all 15 of the shows most popular among teenagers included alcohol ads. Ã¢â¬Å"Survivor,Ã¢â¬Â Ã ¢â¬Å"Fear FactorÃ¢â¬Â and Ã¢â¬Å"That 70Ã¢â¬â¢s levelÃ¢â¬Â were among those with the most ads65. The dramatic increase in youthÃ¢â¬â¢s exposure to alcohol brands in magazine and TV advertising suggests that the industryÃ¢â¬â¢s guidelines are so permissive that, in practice, they amount to no limits at all. Concerned about the lack of regulation and increase in alcohol ads Ã¢â¬ and as a result, increase in consumption Ã¢â¬ health and safety advocates respond to aggressive marketing with specific strategies, as discussed next. . 1 Awareness, Education and Skill Building The Association to Reduce Alcohol Promotion in Ontario (ARAPO) is funded by the Ministry of Health and Long-Term Care to provide resources and shop to individuals and groups about media literacy and critical thinking skills as they apply particularly to 64 65 AGCO (2003). unknown (c) (2004). 13 alcohol. Resources include inquiry papers and presentations to youth and health promotion professionals about the impact of alcohol advertising on youth drinking patterns, particularly heavy drinking. 6. 2 Internet ActionThe Center for Alcohol Marketing and Youth uses a vivid Internet heraldic bearing to attract viewers to their site to examine what others are doing around alcohol marketing. Along with a searchable marketing gallery and steps to take action, CAMY regularly publishes research papers on Youth and Alcohol. An example of this is a recent paper titled The Internet, Alcohol, and Youth, which looks at the impact of Internet alcohol websites on underage drinkers. It is unattached through CAMYÃ¢â¬â¢s website at www. camy. org. 6. 3 Complaints to Regulators and ResultsWhile ASC does not demand that advertisers clear their ads before going to the public, they do respond to complaints by the public. A recent example of this was the put one over Cherry Ã¢â¬Å"BubbaÃ¢â¬Â ad that was pulled following complaints that Don Cherry is seen as a role feign for underage youth Ã¢â¬ and therefore could not be used as a spokesperson for beer. Groups like the Ontario Public Health Association, responding to concerns about the impact of alcohol advertising on the publicÃ¢â¬â¢s health and safety, have sent recommendations to both the barbarian and the federal regulatory bodies. These recommendations include: ?? ?? ?? ?? ??Continued pre-clearance of alcohol ads, at the final stage of production by federal and provincial bodies with a strong public interest mandate More effective regulation of lifestyle alcohol advertising, promotions and sponsorships Establishing clear guidelines regarding industry-sponsored responsible drinking messages and public education programs, particularly those appealing to, or tell at, young people Capping the total amount of alcohol advertising and introduce improved mechanisms for monitoring contour with existing or new regulations Focusing on effective deterrence, monitoring and enforcement measures.This would include a stronger role f or community groups in the monitoring and enforcement of federal and provincial advertising provisions, including membership in panels previewing and monitoring alcohol advertising66. 6. 4 Class Action Suits Against Alcoholic Beverages Industry ConsumersÃ¢â¬â¢ attorneys across the U. S. have begun to target the alcoholic beverages industry, register lawsuits that claim that some leading brewers and distillers are using slick advertising to sell products to underage drinkers67.In November 2003, attorneys led by David Boies III filed suit against brewers Coors and Heineken, distillers Diageo and 66 67 OPHA Position Paper (2003). Willing (2004). 14 Bacardi and the makers of Zima and MikeÃ¢â¬â¢s Hard Lemonade68. The suit accused the companies of using a Ã¢â¬Å"long-running, sophisticated and deceptive schemeÃ¢â¬Â¦ to market alcoholic beverages to children and other underage consumers69Ã¢â¬Â BoeisÃ¢â¬â¢ lawsuit alleges that alcohol companies place ads in magazines such as Stuff , FHM and turn that appeal to males under the age of 21, or in Glamour, which is oriented toward females of similar ages70.The suit claims that ads placed in these magazines are designed to push people jr. than 21 to obtain alcohol illegally71. The same is authorized in TV advertising, where many alcohol ads reach young people not old plenteous to drink. The class-action suits filed against the alcohol industry since November 2003 have caused alarm in the industry because the lawyer behind them is David Boies, who represented the evaluator Department in its antitrust action against Microsoft72. The suits claim that booze ads targeted at adults spill over onto jr. audiences73.According to another law suit filed in Los Angeles well-made Court in 2004, AnheuserBusch and Miller Brewing are targeting minors through ads and developing products that look and gustatory sensation like soft drinks in order to cajole underage consumers to their brands74. The suit claims that beer-makers are marketing alcoholic beverages known as Ã¢â¬Å"Alco popsÃ¢â¬Â to minors. These include Doc genus OtisÃ¢â¬â¢ Hard Lemon Malt Beverage, which is made by AnhesuerBusch, and MillerÃ¢â¬â¢s Jack DanielÃ¢â¬â¢s headmaster Hard Cola. Both of these beverages closely resemble tonic pop with sweet flavours, bright colours and youth-oriented packaging. CONCLUSIONThe domestic alcoholic beverages market is considered mature, with limited opportunities for growth. One way for alcohol manufacturers to increase their sales volume is by taking market share away from their competitors; another is to expand the overall size of the market. To achieve these goals, alcohol manufacturers continue to invest substantial resources and capital into their marketing strategies because they believe it is necessary for expanding the market and increasing their margins. It will be important that public health groups focus their research on certain elements in the marketing mix.These include where the p roduct is sold and what are the broad social trends marketers are using to communicate with target markets. This analysis summarizes significant influences in consumer behaviour. This paper advises that efforts be directed not just to alcohol advertising, but also to the overall marketing strategy of alcohol manufacturers, and especially the techniques outlined above that encourage and influence selection. 68 69 Ibid. Ibid. 70 Ibid. 71 Ibid. 72 Edwards (2004). 73 Ibid. 74 Anonymous (b) (2004).15 BIBLIOGRAPHY AC Nielsen. Bruchener, Andrew. personalised Conversation. March 2004. Taken from the ARAPO Fact sheet 2004. Advertising Standards Canada. (2004). Canadian Code of Advertising Standards, Code Provisions. www. adstandards. com. Accessed September 2004. Alcohol and Gaming Commission of Ontario. ( shocking 2003). Liquor Advertising Guidelines: Liquor Sales Licensees and Manufacturers. www. agco. gc. ca. American Medical Association. (2003). explore and Facts about Youth and Alcoho l. USA: AMA. Taken from the ARAPO Factsheet, 2004. Anonymous (a). (2003). News: In Brief. Grocer. Nov. 8. 226;7629:9. Anonymous (b). (2004). 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